'CHANGE NERVOUS

Auckland Star, Volume LX, Issue 226, 24 September 1929, Page 7

'CHANGE NERVOUS

HATRY FAILURE ECHO.

Crash Will Prove Smaller

Than Expected.

EXPERT'S ANNOUNCEMENT

(Australian and N.Z. Press Association.)

(Received 10.30 a.m.)

LONDON.. September 23,

The Stock Exchange opened in a state of nervousness, which is the natural sequence to the dramatic events of the week-end, and there ■was a general marking down of prices as a precaution, in view of the uncertainty of the situation. However, the committee's prompt action regarding the examination of the dealings in Hatry companies and the decision not to fix the raarking-up of the prices thereof, thus postponing a settlement, had a reassuring effect and the markets closed with a generally cheerful tone.

There was some recovery of prices, though gilt-edged stock relapsed slightly, off in"'to the Bank of England selling about £1,500.000 in gold to France.

The Stock Exchange has appointed a sub-committee to examine the clearing sheets of the Hatry group of companies, also the Eastern Photomaton Corporation, and the Wakefield Corporation. The committee will require brokers to supply the names of clients for whom they dealt.

There is considerable speculation • as to the outcome of the investigation of the affairs of the Hatry companies. Various experts worked all day yesterday at Clarence Hatry's headquarters in an endeavour to ascertain the real position.

The "Daily Express" features the announcement "of a financial expert that the Hatrv crash will prove smaller than expected. The Hatry deficit will *be approximately £6,000,000, and the total 6um involved is in the neighbourhood of £15,000,000. His assets are estimated at £9.000,000. The newspaper stated: "The excited prophecies of unprecedented disaster will not he borne out by the facts."

The Australian Press Association ■understands that the firm of brokers, Morton Brothers, took up a considerable part of.the unsubscribed balance of the Melbourne Board of Works loan.

Australian interest in the effect of the Hatry crisis on the Parent Trust Finance Company lies in the fact that in 1896, it and the Dunlop Tyre Company were with the Australian affiliation.

Owing to the unprecedented complications in the business the London Stock Exchange is likely to be at a low ebb. Manv brokers will have to meet liabilities "varying from £10,000 to £20,000.

Sir Gilbert Garnsey, known as "the doctor' of sick industries," and Sir Basil Mayhew, another eminent accountant, assisted by relays of clerks, worked the entire'week-end, including far into the early hours of Sunday morning, and this morning, investigating the Hatry companies' collapse. Sir Gilbert hopes to make a statement this evening.

The "Daily News" says it understands that the Public Prosecutor also continned'his 1 investigations. No further immediate arrest is expected. The newspapers generally counsel calmness.