FINANCIAL WORLD

Manawatu Standard, Volume XLIX, Issue 252, 23 September 1929, Page 7

FINANCIAL WORLD

GREATEST POST-WAR SENSATION

CONFUSION IN MONEY MARKET. SEVERE NEWSPAPER COMMENT. (United Press Association—By Electric Telegraph—Copyright). (Australian Press Association.) Received September 23, 8.5 a.m. LONDON, Sept. 21. 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 Excliango Committee took a drastic step by suspending dealings in the group. This brought confusion to the market and completely offset the more encouraging signs which had been apparent earlier in the week. . . From gilt-edgeds down fo mining shares, the weakness set in, and the blow was more severely felt as it came when arrangements for the can-y over had to be made. It was, of course, the industrial shares that suffered most, and there was a general marking down of prices. Fortunately, gilt-edgeds though unable- entirely to withstand the adverse influence did not give much ground, the losses in most instances only amounting to about one-eighth. Colonials were generally steady The newspapers comment severely on the failure of the directors of the Hatry Group to make a statement regarding the position of affairs. The Financial News states: — “The companies have been unusually dilatory in submitting accounts and reports. Into those companies the money of innumerable small investors has been placed. The brokers in both London and the provinces transacted bargains in good faith. “The directors who surround Clarence Hatry have plunged many confiding, and not excessively-credulous investors, and many brokers into ruin, or a state of embarrassment.

“Hatry must, from the position he holds, be held up to censure in this regard, but his colleagues on the various boards must share his responsibility.”

FOUR ARRESTS. OTHER CHARGES PENDING. HATRY’S REMARKABLE CAREER. (Australian Press Association.) LONDON, Sept. 21. The greatest post-war financial sensation in Britain pivots around the arrest of Clarence Hatry and three of his associates, Edmund Daniels, A. E. Tabor and John G. Dixon. The quartette were remanded until Friday. Bail was refused. The Magistrate, Sir George Truscott, stated that, in view of the seriousness of the issues involved, he felt it his duty to decline bail. The Public Prosecutor stated that in July defendants obtained from George Ireland Russell, acting on behalf of the Porchester Trust, Limited, £209,141 on the deposit of certain securities which, while purporting to be £150,000 Wakefield Corporation 4) per cent, stock, were absolutely fictitious and worthless. The Wakefield stock was issued by the Corporation of General Securities, and the _ money advanced was used in companies known as "the Hatry group. Defendants made a joint statement to the Public Prosecutor admitting the above facts. The Public Prosecutor stated during the proceedings: '“lnformation 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 on them when they were arrested. , Hatry consulted his solicitors early yesterday. They told him exactly how he stood from the legal viewpoint, and advised him to place the position before the authorities. This applied also to Daniels, Dixon and Tabor. STATEMENT MADE. Afterwards Hatry and his associates conferred and decided to see the Director of Public Prosecutions, Sir Archibald Bodkin. They made personal arrangements for their wives in case of eventualities. Tho four duly arrived at the office of Sir Archibald Bodkin, and made a statement to detectives trained in the intricacies of company business. An interval followed, and then it was explained to Hatry and his associates that, in view of tho statements, they could not be allowed to go free. Accordingly, the four were taken in taxicabs to the police station. There was a great crowd of stockbrokers and others outside the Guildhall Court, and a wild rush took place as defendants drove up in a taxi. Only thirty were admitted to the court, where Mrs Hatry sat with a lady friend. Mrs Hatry was in tears. It is learned that Hatry and his chief associates realised on Thursday night that no assistance was forthcoming from the great bank. On the contrary, the banks were pressing the companies and insisting on an investigation. Every avenue had been explored, and had failed. Hatry explained the situation, and finally said simply_ :“Well, boys, this is the finish.” Daniels was once a bank clerk. He is now a director of fifteen companies. The Daily Express states that Daniels has three residences and ‘five motorcars. The town clerk of Wakefield says: “The Corporation General Securities raised on our behalf totalled £750,000, of which wo obtained £425,000, so that £300,000 is still owing to us. We don’t know whether we shajl lose that, but whatever the loss is it will have to be borne by the rates.” “CROESUS OF FINANCE.” Clarence Hatry is between forty and fifty, though ho appears to be younger. Immaculately groomed and of medium height and slight stature, he is debonair and soft voiced. Hatry does not resemble fiction’s financial colossus. He does not smoke an outsize in cigars, but has a partiality for a pipe, which, unlit, remains clenched between his teeth for hours. Although he owns one of Mayfair’s most imposing mansions, which is painted in white, with colourful window boxes containg red geraniums —-it is situated near the residence of Viscount Lascelles—Hatry is a simple liver and an early riser. His breakfast consists of coffee and toast, which is brought up to his bedroom, where it is eaten whilst he is dressing.

Hatry motors to the Citv to enter a palatial soundproof office with double doors and soft carpets. This sanctum resembles a magnificent drawingroom, in which there is an atmosphere of sublime restfulness. Here Hatry would work coatless loim after his staff had departed, going home at midnight to partake of a simple 6upper, ifter which frequentl- he would read some light literature before going to sleep. Intimates dubbed Hatry a “Croesus of finance.” His remarkable career commenced at St. Paul’s School, after which he toured tho Continent study-

ing French and German. He became an insurance clerk at the age of 25.He reorganised an insurance company, involving £250,000, and from this rose to higher finance, until at one period his dealings soared to £30,000,000. Hatry was not always successful, but his genius enabled him to regain even lafter setbacks. He had tire confidence of big financiers, and it was known that he was interested in Australian and other Dominion loan markets. Ho was always thinking in millions. Hatrv seems to have belied his calm and collected characteristics during the last few days. When Hatry shares fell eight millions on Wednesday he left his mansion unusually early with personal baggage and has not been seen in familiar haunts in the city since. Intimate friends are of the opinion that he was secretly negotiating with bankers in ail endeavour to defeat his opponents.

STERLING AT LOWER VALUE.

NEW YORK PRICE.

(Australian Press Association.) NEW YORK, Sept. 21. Sterling to-day reached 4 dollars 84 19-32 cents, for cables—the lowest level for the year. Sterling has been in a highly unfavourable position for many weeks, and is believed not to have been greatly helped by the suspension in trading in London in the Hatry group shares.