McARTHUR TRUST.

Taranaki Central Press, Volume IV, Issue 300, 1 December 1936, Page 5

McARTHUR TRUST.

Transfer Of Debentures Declared Void. Press Association —Copyright. Invercargill, Last Night. The financial position of the McArthur Trust Ltd. was discussed at length in the Magistrate’s Court today when a civil case lasting several hours was held to determine the fate of debentures which had been transferred to the trust. The secretary' of the trust, F. D. Graham, Sydney, attended the hearing and was crossexamined on the bplance-sheet for more than an hour. The application before the court, was for an order on behalf of four Southland persons, James Fleck, Mary Fleck, Margaret Bain and James Allan, Thomson, to have cancelled and declared void a transfer by them to the McArthur Trust of debentures owned by them in the Executive Investment Trust. Although the sum involved was not stated in court, it is understood to be about £25,000. Tfie case was a sequel to recent, conviction on a charge of “share hawking” of the man who arranged the transfer of the debentures. After hearing Graham’s evidence and the representations of counsel the magistrate ,Mr. W. H. Freeman, declared, th'e contracts void and fixed security for appeal at £l5 15s when intimation of the likelihood of appeal was given. The order asked for also stipulated the return to the four debenture holders of the money received by the McArthur Trust from the Public Trustee for debentures received. Mr A. C. Hanlon, K.C., with Mr C. M. Barnett, Dunedin, represented the McArthur Trust, opposing the making of order of cancellation, and Mr H. J. Macalister supported the order.