The Loan and Mercantile Company.

Feilding Star, Volume XV, Issue 286, 12 April 1894, Page 2

The Loan and Mercantile Company.

SIR JAMES FERGUSSON'S EVIDENCE. [PEB PKESS ASSOCIATION.] London, April 11. The counsel for the liquidators of the of the New Zealand Loan and Mercantile Company estate announced to the Court his intention of opposing the petition respecting the 6th issue of shares. Judge Williams said he was disposed to amend the reconstruction scheme of the Company with the view of affording some relief to the holders of the uncovered bonds. Sir James Fergusson said the Company ought never to have taken up landed property which, he considered, was outside the Company's scope. Mr D. Elder was too greedy on his business transactions. The consideration of Larkworthy's report was deferred because it was feaxed his apparent enmity towards certain of the the Directors had caused the report to be coloured. Sir James denied that Mr Paul had made mention of Elders's report or of his cable message asking that the report be withheld pending tae receipt of advice until June 1893. With regard to the deficit the witness declared it would bo criminal to conceal the ascertained losses, but the board held that the deficit was only temporary, and they hoped soon to be able to recoup the amount. The Company had always been willing to help Thomas Rnssell, whose services then and now were invaluable. He admitted that in 1891, cortain of the Directors declared that the position of the Company had never beon sounder. Judge Williams said the trouble of the Company appeared to be due to the absence of inspection of properties, and it was impossible to think Mr Paul had informed the directors of tho objection taken by the auditors iv their report of 1891 to the misleading description of land held by the Company iv the Waikato district. His Honor complimented Sir Jas. Fergusson upon the frankness with which he had given his evidence.