MONEY LENDING

Wanganui Chronicle, Volume 80, Issue 243, 14 October 1938, Page 12

MONEY LENDING

MR. LEE’S INTERESTS CLAIM BY OPPONENT The interests of Mr. J. A. Lee, M.P. for Grey Lynn, and other members of the Labour Party in lending institutions was the subject of a statement by Mr. J. A. Govan, National candidate in Mr. Lee’s electorate, when addressing about 500 electors at the Ambassadors Theatre, Great North Road, Auckland, on Wesdnesday. Mr. Govan asked how Mr. Lee could reconcile such interests with statements in his recent book, "Socialism in New Zealand,’’ in which he attacked money lending. “I have been very much interested in the recent utterances of my political opponent both over the air and in print with reference to what he calls orthodox finance.” said Mr. Govan. "In his New Zealand . broadcast he said: ‘The worshippers of the golden calf would trample our prosperity in the dust. . . . The people of New Zealand must be sacrificed on the cross of orthodox finance—these worshippers of the golden calf.’ Aversion to Finance System "Finally, his aversion to the current financial system was summed up by his expression that the National Party ’took the freedom to refuse to create a financial system that would relate money to wealth, but would all the time make industry the servant of the golden calf.’ "In his book ’Socialism in NewZealand,’ Mr. Lee takes a strong attitude on the matter of money lending. This presents him some difficulty when he comes to deal with the deposits of the public in the savings banks, so he compromises with the golden calf by admitting that small funds at a strictly limited rate of interest would be permissible. An Auckland Company "Now then,” Mr. Govan continued, "I have had in my hand information for some weeks which did not at first seem to me to be in point in the elections, and I have made no reference to it; but now that Mr. Lee has called down his rhetorical thunders against money lending, it is pertinent to inquire where Mr. Lee really stands. “In 1928 a company called the Reliance Loan Mortgage and Discount Corporation. Limited, was registered in Auckland. The first and primaryobject of the company, as set out in Clause C (1) of the memorandum of association is: ‘To transact business as capitalists, promoters and financial and monetary agents both in NewZealand and elsewhere.’

Shareholdings Quoted “The law requires that the secreI tary of a company shall send in every i year a return of shareholders. This I is so that the public may know who | holds shares in these companies and in the annual return filed on March 19, 1937, the following shareholders appear:—Marie Ethel Lee, Westmere, married woman, 1950 shares; John Alexander Lee, M.P., 175 shares. Incidentally, I may mention that Georgina Parry, the wife of the Hon. W. lE. Parry, is shown as holding 2300 shares. “Nor can Mr. Lee say that he did not know that Mrs. Lee held any shares because the history of the shareholdings is as follows:—Between the formation of the company and October, 1928, Mrs. Lee was allotted 400 shares and Mrs. Parry 300 shares. Additional allotments were made from time to time with the result that in the return filed in August, 1930, the position was as follows:—Mrs. Lee held 2125 shares; Mrs. Parry held 2300 shares. Mr. Lee’s holding that I referred to earlier actually came from Mrs. Lee by transfer. Loans Secured by Bills of Sale "A perusal of the Mercantile Gazette shows that this company made loans secured by bills of sale; they were for the most part for .■-■mall amounts and in many cases the security included the furniture and tools of the borrower. What about the golden calf now? “I have learned that this company lost a good deal of its capital but the shares I have mentioned were issued in the early stages of the company’s career, I think before it became evident that the company was to prove unsuccessful. "But there is more on this point.” Mr. Govan added. “There is another company named the Traders' Finance Corporation. One of the objects of the company is:—‘To transact business as capitalists, promoters and financial and monetary agents both in NewZealand and elsewhere.’ "This company has a capital of 35.000 £1 preferential shares, and 140.000 ordinary shares of 17s 6d each.” Mr. Govan said. “The annual list of shareholders up to December 24. 1937, includes the following:— John Alexander Lee, M.P., 2900 ordinary contributing shares: William Edward Barnard. M.P., 1725 ordinary contributing shares. "Mr. Lee has made a statement that he will not be satisfied until those who have money disgorge it for the masses.” Mr. Govan added. "Is Mr. Lee prepared to disgorge any of his own ?”