LOAN AND MERCANTILE AGENCY COMPANY.

Evening Post, Volume XLVII, Issue 87, 13 April 1894, Page 2

LOAN AND MERCANTILE AGENCY COMPANY.

SIR EDWARD STAFFORD'S EVIDENCE. HE ADMITS THAT HE FAILED IN HIS DUTY. BROAD HINT TO THE SCHROEDER DEBENTURE HOLDERS. MR. ELDER PREPARED TO JUSTIFY HIMSELF. I UNITED PBBSS ASSOCIATION.! (Received April 13, 11 a m.) London, 12th April. The examination of the Directors of the New Zealand Loan and Mercantile Agency Company was rosumed to-day. Sir Edward Stafford said that at meetings of the Board of Directors most exciting discussions had taken place regarding the reports furnished by Mr. Falconer Lark* worthy and Mr. David Elder. Ye (Sir Edward) admitted that one-third of the sum divided in 1892 was composed of unearned interest which had been placed to the credit of the profit account. He also admitted that he had failed in his duty as a direotor in not enquiring into certain items in the balance-sheet. The holders of the unconverted debentures in the New Zealand Loan and Mercantile Agency Company claimed priorityor equality with the converters, on the ground that tho old prospectuFeH gave eeourity. Mr. Justice Williams held that it was dear that the. reconstruction scheme, was drawn on the basis of thp ripht of the holders of I Baron Schroeder's debenture* to have the whole of the unp.iid capital appropriated for their benefit, but in the event of failure this right was very much open to argument, and he required evidence that the creditors were aware of the tacts when they assented to tbe scheme. He also wanted an assurance from the holders of Schroeder'a debentures that they would grant a further concession if suali was requisite, without compelling him to act. His Honour hinted that he might bring 1 pressure to bear iv the matter, as he recognised the necessity of disposing of the reconstruction scheme without delay, or it would be a failure. The liquidator stated that there was plenty of floating capital when the Company was restored. The discussion on the scheme was ad- j jonrned till Friday. - j (Received April 13, noon.) Melbourne, This Day. Mr. David Elder, General Manager of tho New Zealand Loan and Mercantile Agency Company in Australia, writes to the press reminding his friends that the Court at present sitting in London is not yet in possession of all the facts of the case. He asks them to suspend judgment in matters where his name is mentioned until the examination: is conoluded. He says that if necessary he j can make euch explanations aa will show the j real faots, and can justify every one of bis actions that has been called in question by the Court, I SPECIAL. | (Received April 13, noon.) London, 12th April. Sir Edward Stafford, in his evidence, said he had objected to the bondholders of 1892 receiving preference, and he understood the others were afterwards placed on an equality. He regarded Mr. Larkworthy's reports as historical romances. Hia Honour said it was difficult to beliove Sir Edward Stafford had forgotten the company's manipulation of its accounts.