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

Manawatu Herald, 10 May 1894, Page 2

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

Judge Sir Roland Vaughan Williams, in his decision regarding the New Zealand Loan and Mercantile Agency Company, states that despite the evidence of the Bight Hon. A. J. Mundella, he thought the statements of the other directors correct, that counsel's opinion with regard to the alteration jn the prospectuses in 1879 had beetf stfb« mifcted to the Board, and that counsel's opinion had been based on the case prepared by 'Mr Thomas Russell. Judge Williams considered Mr Falconer Lark worthy,. bad^eris a valuable and trustworthy' servant, and that if he i'ljad. , : be^i < aljowjfid control, and not. forced to f , lejave, > m^Oompany would \ probably^ sMJI. r fcaye been in a solvent positibnV f ,'^ne later balance sheet was, po^tively misleading. It was eyidenC^ tne directors had not doubted; Mr jjarftworthy's report, held had placed the directors iitraWl possession of the condition of tb« Company's properties, but the direotors had not disclosed the information to the shareholders. It was apparent, he thought, that Mr Thos. Russell had acquiesced with Mr Eider, the Australian manager, and Mr Paul, the London manager, in the telegram suppressing Mr 'Bftktfs report on the Australia^ properties. There appeared to JtfM inpQ^Sfcfefactory reason why the directpfrfl should not have . informed tbe'^Ql. benture-holders earlier 1 . v of ; their 1 *iifsecure position. The directorate, ought to have noticed the irregularity of placing the investment in ;i the Land Company's shares underUbe heading of wool and produce. The auditors had failed in their plainest duty, and they ought not to-fcaye signed the balance-sheet of 1892 until a substantial amount; ha 4 jbaen written off. His Honor said; he considered the advance to the liand Company was to save the, JUand Company and Mr Thps. |b^sell from liquidation. Apparen^ly f remarked Judge Williams, the 5 system of suppression adopted iil l^oiidon was for the object of strong light upon the,, officers^ l,jeatimate of the directors. : Vi . ,-s