LOAN AND MERCANTILE

Auckland Star, Volume XXV, Issue 87, 12 April 1894, Page 5

LOAN AND MERCANTILE

EXAMINATION OF DIRECTORS AND

OFFICIALS,

SIR JAMES FERGUSSON'S STATE

MENT,

London, April 11. In the course of his evidencb before Judge Williams, Sir James Fergusson said the Company ought nover to have taken up landed property, which he considered was outside the Company's scope. Mr D. Elder was too greedy in his business transactions, Consideration of Mr Larkworthy's report was deferred because i. wsjja vtfateji his apparent enmity ti. Wards'ifct-tafn wishe directors had caused report to be coloured.

Sh- James denied that Mr Paul had made mention of Mr Elder's reporb, or of his cable message asking that the report be withheld pending receipt of advice until June, 1893. '*.:,..

With regard to tbe deficit, witness declared it Would be criminal to conceal ascertained losses, but the Board held that the deficit was only temporary, and they hopod 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 bhe Company had never been sounder. Judge Williams said the troubles of the Company appeared to be due to the absence of inspection of properties, and it was impossible to think Mr Paul had informed the* directors of the objection taken by the auditors in their reporb of .1891 to the misleading description of land held by the Company in the Waikato district. His Honor complimented Sir James Fergusson upon bhe franknesa with which he had given hia evidence.