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

Manawatu Herald, 24 April 1894, Page 2

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

I ♦■ The examination of the Loan and Mercantile directors was resumed today. Mr H. J. Bristow said shares in the Waikato lands were taken in fulfilment ,. of an agreement of the iPan^otNew Zealand in 1887, that p£ tKe i $ank took up the Auckland Agricultural Company's; loan the Loan and Mercantile Company was toVta'ke over the Waikato lands from Mr Thomas Russell. He was positive counsel's opinion regarding ttie. altered prospectus was submitted to the directors, despite Mr beUei "to the contrary. &e "denied .''that the Company wished to conceal its interest in the Waikato lands. As a young director he, had trusted the other members of the Board. The Judge remarked that the witness had shown overmuch confidence in the directors and managers. Mr Thomas Russell, in the course of his examination, said he did not regard it as improper for the auditors to exclude from the balance-sheet of 1892 the record appertaining to the shares in the Waikato land, but His Honor dissented from this view. The Hon. Thomas Russell declared that Mr Barker's report was founded on erroneous data, and lacked experience. He (Mr Russell) cabled to the Board of Directors on June sth advising them to pass a dividend. The Judge remarked that Mr Russell ought to have cabled to the directors advising them to disregard Mr David Elder's telegram asking his report to be withheld. Mr Russell replied that he now admitted that Mr Elder's action in the matter was wrong. Fair Play states that Baron Sohroeder has offered to admit £623,000 worth of debentures to take equal rank with his debentures against the assets of the Company, if the reconstruction scheme is accepted. ' In his examination before Mr Justice Williams, Mr Thomas Russell declared that Mr. Lark worthy's valuations were worthless, and deceived the Board. He denied that he. had influenced a telegram being sent to London to suppress the report of Mr Elder, manager of the Company in Australia. Mr Russell also made statements in regard to , the borrowing of a sum of £10,000 '' in direct conflict with the minutes of t the Colonial Board on the matter. He stated that Mr Elder had made an offer to the London Board of Directors to form a company with a capital to purchase the New Zealand Loan and Mercantile Agency Company's properties, as he believed they were a sound investment, A telegram from Mr Elder was read, which stated that he had wired withholding his report knowing that Mr Russell was on the ovo of arriving and that the latter had full powers to act. Judge Williani3 considered the explanation was a just one. Mr Russell dwelt at some length on the explanation, and said though while not prepared to declare that Mr Elder's telegram withholding the report was wrong, it was a strong step to take. Mr Russell referred to the success of the New Zealand Land Association in handling the business of the New Zealand Loan and Mercantile Agency Company, which he said had increased since the sus pension of the Company.