The Loan and Mercantile Company.

Feilding Star, Volume XV, Issue 287, 13 April 1894, Page 2

The Loan and Mercantile Company.

SIR EDWARD STAFFORD'S EVIDENCE. THE RECONSTRUCTION SCHEME DISCUSSED. [FEB PBESS ASjOCIATION.J London, April U. Mr Justice Williams said he was disposed to amend the reconstruction scheme of fclie Company with the view of affording some relief to the holders of unconverted bonds of 1892. April 12. The examination of the Directors of the N.Z. Loan and Mercantile Agency Company was resumed to-day. Sir Edward Stafford said that at meetings of the Board of Directors a most exhaustive discussion had taken place regarding the reports furnished by Mr Falconer Larkworthy and Mr David Elder. Ho (Sir Edward) admitted that one-third of the sum of the dividend in 1892 was composed of unearned interest which had been placed to the credit of the profit account. He also admitted that he had failed in his duty as a Director in not enquiring into certain items in the balance-sheet. Holders of unconverted debentures in the Company have claimed priority or equality witli converters on the ground that the whole prospectuses gave security. Judge Williams held it was clear that the scheme of reconstruction was drawn on the basis of the right of the holders of Baron Schrokler's debentures to have the whole of the unpaid capital appropriated for their benefit, but in the event of failure this right was very much open to argument, and he required evideuco that the creditors wero aware of the facts when they absented to the scheme. He also wanted an assurance from the holders of Schroeder's debentures that they would grant further concessions if such was requisite without compelling him to act. His Honor hinted he might bring pressure to bear in the matter, as he recognised the necessity of disposing of the reconstruction scheme without delay, or it would be a failure. The liquidator stated thero was plenty of floating capital when the company was restored. The discussion of the scheme was adjourned till Friday. Me^bojurne, This Day Mr David Elder, General Manager qt the New Zealand Loan and Mercantile Agenpy Company in Australia, writes to the press reminding his friends) that the court at present sitting iv London is not yet in possession of all the facts of the case, and to ask them to suspend judgment in all matters where his name |s mentioned til) the examination is concluded. He s.ays, jf necessary, he can make such explanations* ay >yil) show the real facts, and he can justify every one of his actions that have been called into question by the court.