Mr Ward's Examination.

Hastings Standard, Issue 375, 17 July 1897, Page 3

Mr Ward's Examination.

(By Telkoraph.) (I'er /'/'ss DfNKinN. July 10. After the lunch adjournment Mr Ward admitted buying Carsweii's business. It was a bad purchase, and the Association only bought it under the representation of the Colonial Bank's Inspector, Mr Watson. He afterwards paid £llOO out of his po. ket to have Carsweii's shares cancelled in order to save the Association from loss. Jf the books showed a loss on the Bluff store account of £I3OO the books were wrong. He considered the accounts showed a profit of £OOOO odd in 1895. The books showed the fact that he had foregone 4*l-500 rent and salary to make a profit for the Association. That year the Association made a net profit of £6510. The liquidator's report was drawn upon incorrect figure-. Having confidence in his stall he did not take steps to verify the figures in the 1893 balance sheet. He assumed he must have read the balance sheet before signing. He must have known that in 1893 he owed the Association £20,000 odd, and in 1891 over £IO,OOO. He defended the item £15,000 for goodwill iu the 1891-1895 balance sheet. The remainder of the afternoon was taken up with the details of the purchase of Carsweii's business. This day. After Mr Ward's examination Mr Hannah's (auditor) examination was gone on with. He had a large experience as an auditor. He first audited the Association's books in June, 1893. He noticed in the course of the audit that on the day of the balance sheet in 1893 £21,000 was paid into Mr Ward's account and wa» taken over the next day. The same thing happened in 1891 and 1895. He did not think it strange as lie considered Mr Ward a rich man and the official explanation appeared satisfactory. Now he would look upon the transaction as suspicious. In 1890 £51,000 odd was paid into Mr Ward's account at balancing time, but Mr Fisher's explanation disarmed suspicion. He considered the £30,000 draft and the £lBlO for Brooks and Council's £6,500 were /vie payments by Mr Ward and legitimate accounts. Being examined re the £3OOO draft, he said if he had been fully informed he probably would not have passed the item. Entries of £II,OOO in January, 1895, were reversed before he audited the books, and he was informed thaf the entries were clerical errors. The entries were revised on balancing day, four or five months afterwards. It was not his duty to satisfy himself that the stock was actually in the warehouse. Examined at some length as to the produce and stock and the Bluff store accounts he defended the entries as proper. Mr Fisher and Mr Andeason told him that in June 1895 Mr Ward forewent his salary and rents up to £ISOO. On the whole it would have been better to have disclosed iu the balance - sheet that the £ISOO profit was a present from Mr Ward. He must say now that he thought the shareholders were misled, ifr Ward's indebtedness was increased on paper by £ISBO, and divided amongst the shareholders.