The N.Z. Loan and Mercantile Agency Co.

Manawatu Herald, 7 April 1894, Page 3

The N.Z. Loan and Mercantile Agency Co.

In the Queen's Bench Division His Honor Sir Roland V. Williams has begun the examination of the directors of the New Zealand Loan aqd,Me,rcantile Agency Company. *|f r Falconer Larkworthy, formerly managing director, when in the box ~ admitted that counsel's opinion in : 1&79 was that the statements in the with reference- to*"S§6urity .^yeje-.'flot justified, and be> himself ' walk? always of opinion that the 4ebenWes were no charge on the r The Board, he said, had -sanctioned the advance to Mr T. Russell against Waikato land which Mr Larkworthy described as a .-.swamp. Mr Russell pledged secu-

rities of the value of £59,000. The London Board had not investigated

the advance, but bad relied on the ~ eolenial directors, who, he said, ~ 'Were personally interested. Mr J Jp£#worthy further said his report "\in. 1889, disclosing. losses of £848000, ■^fW« wppfessed, and witness brought it before the members of the board '"itfdlf ideally, biifc no action was taken. Excepting the Bight Hon. &.. J. Mundella and Sir Geo. ..Ruf sell, the Board opposed all • mention of the losses,- but Sir James

Fergutoson alluded to the losses at 'the 'shareholders' meeting, which allusion Mr Paul, London manager of the Company, suppressed in his

, official report. Mr Mundella com..plained of this garbling, and of Mr 'David Elder, general manager of the Company in Australia, neglecting to . Visit the properties.