LOAN AND MERCANTILE.

Temuka Leader, Issue 2644, 10 April 1894, Page 4

LOAN AND MERCANTILE.

London, April 5.

In his examination before J ustice Sir R. V. Williams, concerning the Now Zealand Loan aud Mercantile Agency Company, Mr Falconer Larkworlhy said hat iu 1890 he reported that there were further deficits, and that the reserves were exhausted, but the board took no notice ->{ the matter. Losses amounting to £348,000 appeared ou the balance-si:eet as an asset, aud the statement of profits presented in 1889 included interest ou that uiin, although it had not been paid, tie ..dde-l that only the. Right Hon. A, J. Mundella, one of the directors, supported him in proposing that an independent inspector should be employed to iusp. ct the company’s properties, aud report direct to the Loudon board. Mr Falconer Larkworthy described certain statements made by the Hon. W. Shiels, of Victoria, iu his speech at the Loudon meeting, as grossly untrue. Ho said that Mr Shiela was a friend of Mr David Elder, general manager of the company in AnaTalia. Several questions were put by t e Judge. The witness admitted that had Mr Shiela known the true facts of the case he would not have spoken as he did Witu es also admitted that ho himself had now confirmed statements contained iu Mr ohiels’ speech, to which exception had been taken. He said that he did not consider it hia duty to .remonstrate at the r.bne. In reply to another question, Mr ..ikw ithy said that be had also ac-

. i.i«. ed in the balance sheet at the fame meting, believing us he did that the serves would cover the Melbourne leficit of £480,000, which had not then i-en revealed. oun.el c unplained >f lie ni nnor iu which witness gave his i deuce, taking particular exception to is hesitancy m answering aud his i biluy to remember certain things. The fudge urged Mr La kworthy to be perectiy c .ndi.i in givi ig his eviden e. Mr Lnrkworthy said that his salary was increased in 1890, although his .uthority was diminished owing to Mr i-’anl, the London manager, and Mr Thomas Russell assuming more control. Personally he had dissented from this arrangement. In reply to a question he said that he did not remember approving of the certificate depriving the debentureholders of their security. April ?. The examination of Mr Falconer Larkworthy has ended. Mr Paul was next examined. He gave a history of the alteration iu the debenture prospectus, which Justice Sir. R. V. Williams described as not confirmed by the documents and astonishing. In hia examination before J ustica Sir R. V. Williams, Mr p aul, London manager of the New Zealand Loan and Mercantile Agency Company, virtually admitted that there was nothing in the :;ow form of debentures to notify holders of the change. The board, he said, was well aware that there was no special security. While tha company were negotiating with Baron Schroeder they issued a considerable number of debentures on the old basis I n reply to the Judge, Mr Paul said that he wa s unable to explain why at the time of th° Schroeder issue the directors failed to clearly indicate that Fuji Id holders wer not secured. Ho said that Mr Larkworthy’s report hid ( on pi-s po-iud in deference to tho wishes of M I'homa* Rn sell, and it had not been investigated. He added that Mr Barker in 1892 reported a deficit of £090,000. The board had not discussed the propriety of specific mention heinsr made in the loport in 1892 and 1893 of the company'fl holding £893,000 worth of debentures of the New Zealand Laud Association,