LOAN AND MERCANTILE AGENCY COMPANY.

Evening Post, Volume XLVII, Issue 86, 12 April 1894, Page 2

LOAN AND MERCANTILE AGENCY COMPANY.

SIR JAMES FERGUSSON IN THE BOX. AN INKLING OF THE COURT'S INTENTIONS. ! DNITCD PRESS ASSOCIATION.! (Receivod April 12, 10.45 a.m. London, 11th April. In the course of his evidence before Mr. Justice Williams, Sir James Fergusaon said the Company ought never to have taken up landed proporty, which ho considered was outside the Company's scope. Mr. D. Elder was too greedy in his business transactions. The consideration of Mr. Larkworthy's report was deferred because it was feared his apparent enmity towards certain of the directors had caused the report to be coloured. Sir James denied that Mr. Paul had made any mention of Mr. Elder'a report or of his cable message asking that the report be withheld, pending tho receipt of advice, until June, 1893. With rega-d to tbe defioit. witness declared that it would bo criminal to conceal ascertained Josses, but the Board held that the deficit was only temporary, -and they hoped soon to be able to recoup the amount. The company had always been willing to help Mr. Thomas Russell, whoso services' then and now were invaluable. He admitted that in 1891 certain of the directors declared that the position of the company had never been sounder. Mr. Justice Williams said the troubles of the company appeared to be due to the absence of inspection of properties, and it was impossible to think that Mr. Paul had informed the directors of the objection taken by the auditors in their report of 1891 to the misleading description of the hind held by the company in the Waikato district. His Honour compliment* d Sir James Ferguson upon the frankness with which he had given his evidenoe. Counsel for the liquidators of the New Zealand Loan and Mercantile Agency Company's estate announced to the Court his intention of opposing the petition respecting the sixth issue of shares. Mr. Justice Williams said he was disposed to amend the reconstruction scheme of the company with the view of affording some relief to the holders of unconverted bonds of 1892.

I special, i (Received April 12, noon.) London, 11th April. Sir James Fergueson said he was unable to explain the ignorance displayed by the bondholders in 1838 in regard to the advantage of the conversion, and added that even the personal friends of the directors of the company had not converted their bonds.