FINANCIAL CRASH

Hokitika Guardian, 23 September 1929, Page 6

FINANCIAL CRASH

A HUGE FRAUD. ARREST OF MEMBERS. (United Press Association—By Electric TelegraphCopyr i ght.) LONDON, September 21. ’ The olimax otf the. finance sensation was reached last evening, when Hatry and three of his associates were arrested. Earliei' in the day Hatry had consulted his socilitors. They had told him exactly how he stood from the legal point of view, and they advised him to place his position before the authorities. This applied also to Ednuind Daniels, John G. Dixon, and A. E. Tabor, the Directors of various Hatry companies. Thereafter Hatry and his associates conferred and they decided to see the Director of Public Prosecutions, and they made personal arrangements with their wives in case of eventualities. The four duly arrived at the office of £rr Archibald Bodkin (Director of Public Prosecutions) and there they made a statement to detectives trained in the intricacies df the company business. An interval followed. Then ft was explained to Hatry and his associates that, in view of their statements, they could not be allowed, to go free. Accordingly the four were taken in taxicabs to a police station, where they were formally charged, and there they spent-the night. f They will be charged at the Guildhall to-day with various offences arising out of the financial operations which they have employed. Upon their offering bail, they were informed that this was a matter for the Magistrate. i It is learned that Hatry and his chief associates realised on Thursday night that no assistance would be forthcoming from the great banks. On the contrary, the banks were pressing the Hatry companies and insisting on an investigation.

Every avenue had been explored but they failed, and Hatry explained the situation finally. He said simply: “Well, boys, this is the finish.” •Edmund Daniels was once a bank clerk. Now he is a Director of fifteen companies, and is the managing director of the Corporation and General Securities Limited. The “Daily Express”, says that Daniels owned three residences* and five motor-cars.

BAIL REFUSED. LONDON, September 21. -Regarding the Hatry sensation, the Public Prosecutor said: “The information in our hands shows, undoubtedly, 'that other charges of a serious nature will be made.” The Magistrate, Sir George Truscott, said that he appreciated the defendant’s commendable attitude, but in view of the seriousness of the issues involved, he felt that it was his duty to decline to grant them bail.

BOGUS STOCK ISSUED. TO SECURE OVER £200,000. LONDON , September 21. Hatry, Daniels, Tabor, and Dixon were remanded till Friday. Bail was refused them. The Public Prosecutoi- said that in July last the defendants obtained from George Ireland Russell, acting on behalf of the Prochester Trust Limited the sum of £209,141 on the deposit of certain securities, which securities, while purporting to be £150,000 worth of the Wakefield Corporation four and a half per cent stock, were absolutely fictitious and worthless. The Wakefield stock was issued by the Corporation and General Securities Coy. The money advanced was used in the companies known as the Hatry group. A detective stated that Hatry, Daniels and Tabor had passports on them when they were arrested. There was a great crowd of stockbrokers and others outside the Guidhail Court and a wild rush took place as the defendants drove up in a taxi. Only thirty people were admitted to the Court, where Mrs Hatry sat tearfully with a lady friend.

HATRY’S CAREER. ROMANCE OF FINANCIAL GENIUS LONDON, September 21. The greatest post-war financial sensation that has been known in Britain is that which pivots around Clarence Hatry. He is the directing genius of companies that are interwoven with a group of financial undertakings. Hatry is between forty and fifty years of age, though he appears to be a younger man. Immaculately groomed, and of ipedium height and slight stature, debonair and'soft-voiced, Hatry does not resemble fiction’s financial Colossus. He does not smoke outsize cigars, but has a partiality for the pipe, which, unlit, remains clenched between his teeth for hours.

Although he owns one of Mayfair’s most imposing mansions, which is painted white, with colourful windowboxes, containing red geraniums, nearby Lord Lascelles’ residence, Hatry is a simple liver and an early riser. His breakfast consists of coffee and toast which is brought to his bedroom where it is eaten whilst he is dressing. He motors to the City, to enter a palatial, sound-proof office, with 'double doors and soft carpets. This sanctum resembles a magnificent drawing room, in which. there is an atmosphere of kublime restfulness. Here Hatry work-

ed, coatless, long after the staff had departed, going home at midnight, when he partakes of a simple supper, after which he frequently reads light literature for half an hour, before going to sleep. His intimates dubbed him the “Croesus of Finance.” His remarkable career commenced at St. Paul’s School, after which he toured the Continent, studying French and German. He became an insurance clerk. At the age of twenty-five he re-organised an insurance company, involving a quarter of a million. Thence he rose higher in finance, till at one period his dealings soared to thirty millions.

Hatry was not always successful, but his genius always enabled him to regain, even after his setbacks. He had the confidence of big financiers,»and it was known that he was interested in Australian and other Dominion loan markets. He was always thinking in millions.

Hatry seems to have belied his calm, collected characteristics during the last few days. When, the Hatry shares fell eight millions on Wednesday, lie left his mansion unusually early, with personal-baggage, and he has not been seen in his familiar haunts in the city since then.

Hatry’s intimates are of the opinion that he was secretly negotiating with bankers in an endeavour to defeat his opponents, working quietly. In the meantime, Sir Gilbert Gamsey, the “Doctor of Industry,” has been called in to diagnose the Hatry groups’ malady.

A SERIOUS POSITION. (Received this day at 8 a.m.) LONDON, September 21. The Town Clerk of Wakefield says the Corporation General Securities raised on our behalf three-quarters of a million of which we obtained £425,000 and £300,000 is still owing to us. We don’t know whether we shall lose that but whatever the loss it will have to be borne by the rates.

FURTHER COMPANY AFFECTED. (Received this day at 9.25 a.m.) LONDON, September 22. A further repercussion of the Hatry collapse has occurred in connection with the Parent Trust and Finance Company of which Sir Arthur Ducros, who lent Craigwell to the King, is chairman. It is announced that tlie company is interested in large blocks ,of Hatry shares, held as security for loans, or deposited to cover guarantees for very substantial amounts, given by the Company for financing Auslin Friars Trust, mainly in connection with the steel industries of Great Britain. The directors, who are among the largest shareholders, regret the position as all shareholders will be seriously affected by the .collapse in market values which has occurred.