Hatry Four Charged

Sun (Auckland), Volume III, Issue 775, 23 September 1929, Page 9

Hatry Four Charged

ALL HELD WITHOUT BAIL More Accusations Pending MANY COMPANIES AFFECTED (AastroKau and X.Z. Press Association) LONDON, Saturday. AT the Guildhall Court this morning, Hatry, Daniels. Tabor and Dixon, who are charged in connection with the collapse of the Hatry group, were remanded till Friday. Bail was refused.

The Public Prosecutor said that in July defendants obtained from George Ireland Russell, acting on behalf of the Porchester Trust, Limited, a sum of £209,141 on the deposit of certain securities, which, while purporting to be £150,000 worth of Wakefield Corporation 4J per cent, stock, were absolutely fictitious and worthless. The Wakefield Corporation’s stock was issued by Corporation and General Securities, Limited. The money advanced Was used in the companies known as the Ha try group. Defendant's yeste.day had made a joint statement to the Public Prosecutor admitting the above facts. OTHER SERIOUS CHARGES Continuing, the Public Prosecutor •„afd: —“Information in our hands shows undoubtedly that other charges of a serious nature will be made.” A detective stated that Hatry, Daniels and Tabor had passports in their possession. The magistrate, Sir George Truscott, said he appreciated defendants’ commendable attitude, but in view of the seriousness of the issues involved he felt it was his duty to decline to grant bail. There was a great crowd of stockbrokers and others outside the court. A wild rush ensued as the defendants were .drawn up in a taxicab. Only 30 persons were admitted to the court, where Mrs. Hatry sat in tears with a woman friend. The newspapers describe the suspension of dealings in the Hatry Companies’ shares as one of the greatest financial sensations of recent years. It is reported that in their endeavours to prevent the slump Hatry and the others interested in the companies concerned tried to obtain the support of large financial groups and also approached financiers in America, Germany and France.

EFFECT ON MARKET

DECIDED SLUMP FOLLOWS HATRY SMASH NEWSPAPER CENSURE (Australian and. N.Z. Press Association) Reed. 9.5 a.m. LONDON, Sunday. Everything on the Stock Exchange has been- overshadowed by the sensational collapse of the Hatry Group securities, which commenced in a small way on Tuesday and progressed to a dramatic climax yesterday when the Stock Exchange Committee took a drastic step by suspending all dealings in the group. This brought confusion to the market and completely offset more encouraging signs which have been apparent earlier in the week from giltedgeds down to mining shares. Weakness set in and the blow was more severely felt, as it came at the end of the account when arrangements for the carry-over were pending. It was, of course, industrial shares that suffered most, and there was a general marking down of prices. Fortunately giltedgeds, though unable entirely to withstand adverse influence, did not give much ground, losses in most instances only amounting to about one-eighth. SEVERE NEWSPAPER COMMENT Colonials -were generally steady, though Melbourne Metropolitan Board

of Works five per cents, 1954, fell further to 91 h, doubtless on account of the association of Corporation Gen~, eral securites with this issue last April. The stock was quoted at ninty-four on Monday. Newspapers comment severely on the failure of directors of the Hatry Group to make a statement regarding the position of affairs. The ‘’Financial News” says that companies have been unusually dilatory in submitting the accounts of those companies in which the money of innumerable small investors has been placed. Brokers in London and provinces transacted bargains in good faith. The directors who surround Hatry have plunged many confiding and not excessively credulous investors and many brokers into ruin or a state of embarrassment very j like it. Hatry must, from the position he holds, be held up to censure in this regard, hut. his colleagues on the various boards must share his 1 responsibility.

ANOTHER FIRM HIT

COMPANY HEADED BY SIR ARTHUR DUCROS HATRY COLLAPSE SEQUEL (United Service) Reed. 10.30 a.m. LONDON, Sun. A further repercussion of the Hatry collapse has occurred in connection with the Patent Trust and Finance Company, of which Sir Arthur Ducros (who lent Craigweil House to the King) is chairman. It is announced that the company was interested in large blocks of Hatry shares, held as security for loans, or deposited to cover guarantees. Very substantial amounts given by the company for financing the Austin Friars Trust, mainly in connection with the steel industries of Great Britain. Directors who are among the largest shareholders, regret the position. All shareholders will be seriously affected by the collapse in market values which has occurred.

CITY FACES LOSS

WAKEFIELD MAY LOSE £325,000 TOWN CLERK’S STATEMENT (Australian and N.Z. Press Association) LONDON, Sunday. The town clerk of Wakefield says Corporation and General Securities, Ltd., raised on its behalf £750,000, of which the borough obtained £425,000, so that £325,000 is still owing to it. j “We do not know whether we shall ! lose that amount,” says the official. I “but whatever the loss, it will have 1 to be borne by the ratepayers.” STERLING DROPS LOWEST LEVEL FOR YEAR REACHED HATRY INFLUENCE (Australian and X.Z. Press AssociationJ NEW YORK, Saturday. The rate of exchange for sterling today reached four dollars 84 19-32 cents for cable transfers. This is the lowest level for the year. Sterling has been in a highly unfavourable position for many weeks, and it is believed not to have been greatly helped by the suspension of. trading in London in the Hatry companies’ shares.