LOAN AND MERCANTILE.

Auckland Star, Volume XXV, Issue 95, 21 April 1894, Page 5

LOAN AND MERCANTILE.

EXAMINATION OF DIRECTORS

HON. THOS. RUSSELL'S STATE

MENT.

BARON SCHROEDER'S OFFER,

London, April 20. The Hon. Thomas Russell declared that air Banter's report was founded on erroneous data, and that he lacked experience. He (Mr Russell) cabled to the Board of Directors on June sth, advising them to pass the dividend. The Judge remarked that Mr Russell ought to have cabled to the directors, advising them to disregard Mr David Elder's telegram asking his report to be withheld!

Mr Russell replied that he now admitted Mr Elder's action in the matter was wrong.

" Fair Play " states that Baron Schroeder has oflered to admit £623,000 worth of debentures to take equal rank with his debentures against the assets of the oompany, if the re-construction scheme is accepted. Mr Briatow, in his evidence, said that as a young director he had .^rusted the other members of the Board.

The Judge remarked that the witness had shown over-much confidence in the directors and managers. The Hog. Thomas Russell, in the course of his examination, said he did not regard it as improper for the auditors to exclude from the balance-sheet of 18y2 the record appertaining to the shares in VVaikato lands, but His Houor dissented from this view.

In his examination before Mr Justice Williams, Mr Thomas Russell declared that Mr Larkworthy's valuations were worthless, and deceived the Board. He denied that he had influenced a telegram being sent to London to suppress the report of Mr Elder, Manager of the Company in Australia.

Mr Ruasell also made statements in regard to borrowing a sum of £40,000, in direct conflict with the minutes of the Colonial Board.

Melbourne, April 20.

No confirmatory advice has been re" ceived regarding the ofler made to the New Zealand Loan and Mercantile Agency Company by Baron Schroeder ; but it is probable that the £623,000 worth of dobenbures will be given to the secured creditors in exchange for securities, so that the reconstructed company will be able to commence business with all ibs securities in ibe own possession.