LOAN AND MERCANTILE AGENCY COMPANY

Wairarapa Daily Times, Volume XV, Issue 4691, 10 April 1894, Page 3

LOAN AND MERCANTILE AGENCY COMPANY

- phe London Manager's Evi- 1 oboe.

Losdon, April 6, In his examination before Mr Justice Williams, Mr Paul, London Manager of the New Zenland Loan and Mercantile Agoi.cy Company, virtually aimitted that there waß nothing in the new form of debentures to notify holders of the change. The Board, he said, wis well aware tint there was no special security. While the Company was negotiating with Baron Scliroeder it. issued a considerable quantity of debentures on the old basis. In reply to the Judge, Mr Paul slid ho was unable to uxplniii why at the time of tbe Schrode'r jbsuo the directors failed to clearly indicate f that the old holders were not secured, Continuing his evidence, he said Ifl. | that Mr Lark worthy's report had been |H|gtponed in deference to the wiphea P^oiflTPfliumasßussell, and had not been investigated. He added that Mr Barker had in 1892 reported a deficit of £690,000. The Board had not discaaserl tho propriety of specific men* tion being made in the report of 18929.3 of the Company's holding£393,ooo worth of debentures of the New Zea« liind Land Association. Later, further Startling Euidenee.

Mr Paul, in his evidence, was unable to say who actually altered the form of application for debentures in 1888. He admitted that the form was misleading but he belioved the fact of the debenture-holders being deprived of their security was accidental, The solicitor added a paragraph to the draft report of 1890, giving details of the company's loss during the year, but it was suppressed by the directors, who thought it too strong. The Judge here interrupted with the remark, "Is the truth too strong ?" Mr Paul said that the HpJßpiywfcho bond-holders in 1888 were uwarelf the absence of special security, m