GUILTYONTWO COUNTS

Evening Post, Issue 37, 12 August 1936, Page 6

GUILTYONTWO COUNTS

VERDICT IN MCARTHUR CASE

FINE RECOMMENDED BY JURY

JUDGE IMPOSES PENALTY OF £500

The final phase in the long trial of John William Shaw McArthur, company director, formerly of Auckland, was reached in the Supreme "Court last night. He was found guilty by the jury on two of the six charges against him, with a recommendation that he be fined and not imprisoned. Upon this recommendation, the Acting Chief Justice (Sir John Reed) imposed a fine of £500, to be paid within one month, . in:. default six months' imDrisonmen t.

.:„..', The charges upon which McArthur was indicted were , that, he being a Zv director of the, Investment Executive •1-i Trust of New Zealand, Ltd., on or **';' about March 16, 1933, made, circulated, ■ Ki-. or published or concurred in making, -.^•- circulating, or publishing a report to' ;,,., debenture holders for the year ended .-:.. December 31, 1932, which was false in '"', certain material particulars; on or ■;'■■,'; about April 8, 1933, made or put- ,. ' fished or concurred in making or pub ■;"! lishing a prospectus which was false ;';' in certain material particulars; between ;;„ April 8, 1933, and April' 3, 1934, circulated or concurred in circulating a -, prospectus ,which.was false in certain ..,.-. material particulars; on or about March ~,": 20, 1934, made, circulated, or published, .-;;!■ or ..concurred in making, circulating, '?:.. or publishing, a repg.it to debenture -'" holders for the half-year ended De='r cember 31, 1933, which was false ,;'■' in certain material particulars; on '';': or about April 3, 1934 published ,;.,. a prospectus which was false in j : < certain Material particulars; bei ,-■ tween April 7, 1934, and August 8, .;i.'f • 1934, concurred in circulating a pros- •':■■'■' pectus dated April 3, 1934, which was '" false in certain , material particulars. .. Auckland was named in each of the -]' charges as the place of the alleged -«.. offence. ' . 7 t • McArthur was found guilty on the third and sixth counts, and not guilty on the others. The jury were out from r-< 4 p.m. until 8.35 p.m., this period in- •■->.. eluding their dinner hour. '."""'. Asked by the Registrar tMr. W. W. ';"'_ Samson), when the jury's verdict was ,'.',':] given, whether he had anything to say ...:. why sentence of the Court'should not ••". be passed upon him, McArthur firmly ..: replied. "I have not." "'■■ Apparently thinking that sentence *'"•_'; would not be passed immediately, Mr. ";, R. E. Tripe, for the. accused, raised ;■ the question of bail pending the hear- « ; ing of a civil case against McArthur. -...His Honour, however, said there was j,..; no question of bail (although it was ■'!'■ raised later). The jury had recom- ;_-•_■; mended that he impose a fine, so that "'■ there would be no imprisonment. "I „".'. presume he can pay a fine," added his Wy- Honour, and he asked. McArthur whether he could pay, stating that it would ■ be a substantial fine. . 11 McArthur said that he could. "The jury have looked at this in " ' quite a. reasonable light," said his ~ Honour to McArthur. • "They have considered you guilty of these offences, *' and at the same time I have no doubt they recognised that the matters of '" which complaint is made with regard - to the manner in which you have '* manipulated those moneys are not really a charge before the Court. The " charge is of not having given the full- . , est information- in these four docu- ;■> ments. Under those circumstances I think it is perfectly justifiable to in- ■<■ flict a fine. As I said, that fine w,ill be a substantial one." : His Honour then imposed the fine of £500, >in default six months' imprisonment.1 '. s' ] TIME TO PAY. Mr. Tripe asked for time to pay, and after conferring with McArthur said that arrangements would have to be " - made in Australia, where his client's '. • friends were. He asked for a month , in which to pay. His Honour granted" a month, and i" then renewed the bail to cover this ... period in the sum of £1000 with n 1 ' surety of £1000. : . "' Addressing the jury, his Honour said ; he was very much obliged to them, and extremely sorry that they had been kept away froni their friends and relatives. Any of them who desired to be excused from jury service for the next three years could have their name removed from the jury -list by applying to the Registrar. Perhaps some of them did not want to. The proceedings terminated on a bright note. "I woufd like to thank your Honour," said the foreman of the jury, "for the many considerations shown to the jury during our confine- , ment. We have had a really good X-, time." This remark was greeted with ':' laughter. ',•:.' .«'. The case for the prosecution was ■i conducted by Mr. V. R. Meredith; Crown Prosecutor (Auckland), and by ■•Mr. C. Evans-Scott, of Wellington. For 1 the defence Mr. H. F. O'Leary, K.C., ' ; appeared, with him Mr. R. E. Tripe.