LOAN AND MERCANTILE.

Temuka Leader, Issue 2653, 1 May 1894, Page 1

LOAN AND MERCANTILE.

London, April 26. Mr Moore, auditor of the Loan & Mercantile Agency, states that he objected to the Waikato shares appearing on the balance-sheet under the heading of " wool and-produce advances." They required a separate heading. Mr Paul, however, stated that it was in accordance with the directors' wishes, and witness made no protest to the board. He had often asked for information regarding interest earned, but it had always been refused. He said that it would have been impossible to have sanctioned the earlier balance sheets had he been in possession of full information as obtained iu 1893, The unproductive capital in 1891 stood at £1,000,000, and he admitted that the balance-sheet of 1893 was not a fair statement. Mr Paul stated that the increased losses on Außtraliau property were due to rabbit fencing and other improvements, and not to the non-payment of interest. Mr Moore, he said, was not aware of the deficits, April 27. Mr Peat, auditor of the New Zealand Loan and Mercantile Agency Company, in the course of his examination admitted that the balance-sheets issued in 1891 and 1892 were incorrect, and said that the system regarding many of the accounts was not right and proper. Mr Paul, London manager of the company, recalled, denied many of Mr Moore's statements, but admitted that he had deceived the auditors respectin g the directors' approval of the form of the balance-sheet. Judge Williams has postponed leave to register the new Loan and Mercantile Agency Company in order that the trustees for the prior lien may approve of the articles of association.

Mr Paul m his examination admitted garbling Sir J. Fergusson's speech, but said that his intentions in the matter were quite honorable. He stated absolutely that he was ignorant that the report of Mr Elder, the Australian manager of the company, referred to the company's account until it was opened iu June. Judge Williams said that he was shocked at such a statement, which appeared to him incredible, and he declared Mr Paul to be incorrigible. The Judge is to deliver his statement on Thursday. Mr Moore, in his evidence, said he asked for a resolution of the directors permitting the transfer of £21,000 from suspense to profit and loss account. Mr Paul did not object this resolution, but assured the auditors that the directors assented to the proposal, and witness therefore passed it. He was now surprised to learn that the London board had withheld a portion of the documents regarding the colonial deficits.

Mr Peat said he asked for returns in connection with the working of stations but Mr Paul did not produce them. Mr Paul recalled, admitted that he had excised references to deficits in the report of Sir James Fergusson's speech in February, 1890, but maintained that he did eot do so with auy idea of concealing the true state of affairs. His desire was to condense the report.

His Honor remarked that the answers of this witness were of little use, owi'Jg to the great caution he displayed in giving his evidence.

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