LOAN AND MERCANTILE.

Temuka Leader, Issue 2646, 14 April 1894, Page 4

LOAN AND MERCANTILE.

London, April 10. Justice Sir R. V. Williams intimated that he must see the financial statement on which the reconstruction scheme of the New Zealand Loan and Mercantile Agency Company was based before he decided to sanction or reject the scheme. A representative of the creditors’ committee stated that the scheme was based on a report furnished to the Official Receiver by MessrrTurguard, Youngs & Co., and it is their figures that His Honor wishes to see.

The creditors’ committee meet to-day to consider the effect which the evidence elicited by Justice Williams’ examination will have on the scheme as at present drawn up. April 11.

In the course of his evidence before Justice Sir R. V. Williams, Sir James Fergusson said that the company ought never to have taken up landed property, which he considered was outside the company’s scope. ! Mr D. Elder was top greedy in his business transactions. The consideration of Mr Lark worthy’s report was deferred because it was feared that his apparent enmity towards certain of the directors had caused the report to be colored. Sir'James denied that Mr Paul had made any mention of Mr Elder’s cable message asking that the report be withheld pending receipt of advice until 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 Russell, whose services then and now were invaluable. He admitted that in 1891 certain of the directors declared that the position of the company had never been sounder.

Sir James Fergusson said that he was unable to explain the ignorance displayed by the bondholders in 1888 in regard to the advantage of conversion, and that the then personal friends of the directors of the company had not converted their bonds.

Justice Williams said that the troubles of the company appeared to be due to the absence of inspection of the properties, and it was impossible to think that Mr Paul had informed the directors of the objection taken by the auditors in their report of 1891 as to the misleading description of the property 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 in the New Zealand Loan & Mercantile Agency Company’s estate, announced to the Coart his intention of opposing the petition repeating the sixth issue of shares. Justice Williams said he was disposed to amend the reconstruction scheme of the company w'tfa a view of affording some relief to holders of the unconverted bonds of 1892.