£13,500,000 Deficiency

Sun (Auckland), Volume III, Issue 848, 17 December 1929, Page 9

£13,500,000 Deficiency

HATRY POSITION STATED Accountant’s Evidence FOUR ACCUSED SENT FOR TRIAL United P.A.—By Telegraph—Copyright Received 10.13 a.m. . LONDON, Monday. IN the Hatry case, Sir Gilbert Garnsey, the noted accountant, gave evidence that the total liabilities of the six associated companies in the Hatry group was £29,500,000, not including the share capital, which was secured. The claims totalled £13,750,000. *

There was little prospect of a dividend for the unsecured creditors. The total deficiency was likely to exceed £13,500,000. The gross liabilities of the Austin Friars Trust were £19,000,000, of which about £6,000,000 represented inter-company liabilities and claims. Its main assets were represented by investments in the associated companies, of a hook value of about £11,500,000, of which the estimated value was about £3,700,000. Sir Gilbert expressed the opinion that the Austin Friars Trust had never been solvent. Cross-examined, the witness agreed that defendants loyally assisted during liis investigations. He agreed that not a single penny of the moneys which were the subject of these charges were traceable to the pocket of Hatry or the other three defendants. Personally, he had no reason for believing that they bad made any profit themselves. All , the money went in the Austin Friars Investment Trust. The committal charges were read, after which the magistrate asked the

defendants if they had anything to say. Hatry replied: “I plead not guilty, reserve my defence, and adhere in every way to my original statement Concerning my primary responsibility.” The four accused were committed for trial, bail being refused. In a voice trembling with emotion, Jlatry said: “I pledged every penny, my reputation, and maybe my liberty, to avert what otherwise might have been a terrible crash, whereas I could have walked off a free man; but the losses then would have fallen on thousands throughout, the country, instead of on comparatively few. I am irretrievably ruined. My name has become' a byword. If iam found guilty, my punishment will begin again when I am released.” ' Sir Gilbert Garnsey gave evidence that since 1925 Hatry had received £42,526 remuneration, Daniels £23,545, Dixon £11,560, and Tabor £5,065. Daniels was creditor to the companies to the extent of £128,298. but he holds securities of an estimated value of £50,000.