LOAN AND MERCANTILE AGENCY COMPANY.

Evening Post, Volume XLVII, Issue 83, 9 April 1894, Page 2

LOAN AND MERCANTILE AGENCY COMPANY.

THE LONDON MANAGER'S EVIDENCE. | UNITED FBXSB ABBOCU.TION. | - London, 6th April. In bis examination before Mr. Justice Williams, Mr. Paul, London manager of the New Zealand Loan and Mercantile Agency Company, virtually admitted that there was nothing in the new form of debentures to notify holders of the change The Board, he said, was well aware that there was no speoial security. While the Company was negotiating with Baron Schroeder it issued a considerable quantity of debentures on the old basis. In reply to the Judge, Mr. Paul said ho was unable to explain why at the time of the Schroeder issue the direotors failed to clearly indicate that the old holders were not secured. Contiimrig- Iris evidence ho said that Mr. Larkworthy's report had been postponed in deference to the wishes of Mr. Ihotnas Eus6oil, and had not been investigated. He added that Mr. Barker had in 1892 reported a deOoit of .£690,000. The Board bad not discussed the propriety of specific mention being made in the report of 1892-93 of the Company's holding .£393,000 worth of debentures of the Now Zealand Land Association. Latest. FURTHER STARTLING EVIDENCE. I special. | (Eooeived April 9, 11 a.m.) London, Bth April. During the course of his examination Mr. Larkworthy admitted that he had approved of Mr. Thomas Russell's security for the advance obtained. 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 believed 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 daring the year, but it was suppressed by the directors, who thought it too strong. The Judge here interrupted with the romark, " Is the trnth too Btrong ?" Continuing. Mr. Paul said that the majority of the bond-holdors in 1888 were aware of the absence of special security.