Company Disclosures

Waikato Times, Volume 116, Issue 19352, 4 September 1934, Page 6

Company Disclosures

PURCHASE OF PROPERTY. WHOSE WAS THE CAPITAL? PREGNANT QUESTIONS. SOME AMAZING ADMISSIONS. United Press Assn. —Elec. Tel. Copyright. (Received Sept, 4, 2.30 p.m.) SYDNEY, Sept. 4. When the Company Royal Commission resumed this morning, the reexamination of Mr C. 0. Alcorn was continued. Mr. Monahan asked Mr Alcorn whether the former Daily Telegraph Building was bought on Mr McArthur s own capital? Mr Alcorn said the capital was hoirowed from the Investment Executive Trust. . . Mr Monahan: Is there any record in the books of the Investment Executive Trust that Mr McArthur could purchase the building for his own personal profit?—Mr Alcorn: lie used the .company as an instrument of purchase. , , . i Mr Monahan: So that he could put £287,000 in his and your pockets! The Commissioner: The outcome of tho transaction seems to be that without putting in a. penny piece Mr Alcorn and Mr McArthur have, on paper at least, made £287,000 profit. ■Mr Alcorn was questioned regarding" his list of personal drawings he had complied at the Commissioner s request. Mr Monahan: These book entries, detailing your drawings, have been entered slnoe the Commission started. Was there no book record until then? —Mr Alcorn: No. Referring to £15,000 he had made In June. Mr Alcorn said he and Mr McArthur had sold Investment Executive Trust shares to the Southern British National Trust in order to give the latter control of the former. There had been money owing to Mr McArthur and himself for the. establishment charges in the Southern. British National Trust. Mr Monahan: So actually .you made £15,000 personal profit! Mr Alcorn said that though he was a personal friend of Mr McArthur he did not know the particulars of the bankruptcy proceedings in which Mr McArthur had been involved in New Zealand. Mr Monahan: Don’t you know that such proceedings resulted from his non-pavmeut of a debt to the Government? —Mr Alcorn: Yes. Mr McArthur took up a timber contract and when he began operations he found that there was no timber there. It was all part of a campaign being directed against the Investment Executive Trust. Mr Alcorn said at the formation of the Investment Executive Trust in 1931 he, Mr McArthur and Mr McArthur's sou had been the original directors, and each received 250 shares which had never been paid for. |Vlr Monahan: Have you ever put one shilling of your own money Into any of th©3e companies? Mr Alcorn: No, but I have put back Into them aDI the money. I received for my services. The Commissioner: As far as I can see you find It hard to detail Just what your services were.— Mr Alcorn: Mr McArthur and I put In many months of hard work In drafting Ideer, for these companies. Mr Alcorn said he later was allotted a'further 4750 shares, for which he had paid with money received for his two years’ services. He had subsequently resigned from ihe board in order that the names of better-known men might appear on the prospectus about 'to be issued. Me had introduced Mr McArthur to Mr and it was arranged that Mr McTnnes, and Mr Bridgewater were to sell investment Executive Trust debentures in the South island of New Zealand. Another firm had charge of Ihe sales campaign in the North Island, hut Sterling Investments was allotted to the Auckland district. The inquiry is proceeding. EXAMINATION OF MR CUMMINGS Before Ihe Commission yesterday the examination of Mr 11. 11. Cummings, co-liquidator of Ihe Primary Producers' Bank was concluded. The question of I lie disclosures of Ihe business regarding the disclosures of Primary Bank business was further pursued. A letter from the accountant was read, in which lie repeated his assurance that tic had not revealed any information relating to the affairs of the bank. The Commissioner (to Mr. Cummings) : There was no doubt in your mind that the giving away of information regarding Ihe state of ihe accounts of depositors in Ihe bank to anybody outside the employ of Ihe hank was a breach of trust?—Mr. Cummings: Yes. Mr. Monahan: If you had suspected that Mr. .Mclnncs had been guilty of conduct of that sort you would have cut him right off?—Mr. Cummings: Certainly.