N.Z. Loan and Mercantile Agency Co., Ltd.

Manawatu Herald, 14 April 1894, Page 2

N.Z. Loan and Mercantile Agency Co., Ltd.

lii fhc course of his evidence before Ml 1 Justice Williams, Sir James Fergusson said the Company ou^ht never, to have taken up | landed property, which he considered was outside the Company's scope. Mr D. Elder was too greedy in his business transactions. The consideration of Mr Larkworthy's report was deferred because it was feared his apparent enmity towards certain of the directors had caused the report to be coloured. Sir James denied that Mr Paul had made any mention of Mr Elder's report or of his cable message asking that the report be withheld, pending the receipt of advice, until June. 1893. With regard to the deficit, witness declared that it would be criminal to conceal 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 Mr Thomas Eussell, whose ecrvices then and now were invaluable. He admitted that in 1391 certain of the directors declared that the Company had never been sounder. He was unable to explain the ignorance displayed by the bondholders in 1888 in regard to the advantage of the conversion. Even the personal friends of the directors of the Compuny, he added, had not converted their bonds. Mr Justice Williams remarked that the troubled of the Company appeared to be due to the absence of inspection of properties and it, was impossible to think tnat Mr Paul had informed the directors of the objection taken by the auditors in their report of 1891 to the misleading description of the land held by the Company in the Waikato district. His Honor complimented Sir James Fergusson upon the frankness with which he had given his evidence. Counsel for the liquidators of the New Zealand Loan and Mercantile Agency Company's estate announced to the Court his intention of opposing the petition respecting the sixth issue of shares. Mr Justice Williams said he was disposed to amend the reconstruction scheme of the Company with the view of affording some relief to the holders of unconverted bonds of 1892.