THE J. G. WARD COMPANY'S LIQUIDATION.

Evening Post, Volume LIV, Issue 20, 23 July 1897, Page 5

THE J. G. WARD COMPANY'S LIQUIDATION.

4, THE SECRETARY'S EVIDENCE. [BY TELEGBAPH — PBESS ASSOCIATION.] Dunedin, 22nd J uly. The examination of Robert Albert Anderson, secretary of the Ward Association, was continued this afternoon. The witness said he had no means of knowing as secretary Avhether Messrs. Brook's, Connell's, and Ward's accounts were one as stated by Mr. Fisher. He read a telegram from Mr. Smith, one of the bookkeepers, now in Christchurch, stating that certain dates were removed from the ledger, as they -got disfigured by the upsetting of ink, and the entries were reentered on a fresh page at the time. He did not at the time ask the bookkeeper for aa explanation of the note appearing the top of the ledger where the missing leaves were excised. He had himself excised one page from the minute book relating to an offer made by Messrs. Lee Smith and Reid for the purchase of the debts of the Association and Mr. Ward, as these gentlemen had stated the minutes of the meeting were wrong. The draft minutes and the minutes as altered were produced to the Court and read as follows by Mr. Solomon :— Messrs. Reid and Smith said that if they purchased the debt due by the Association to the Colonial Bank of New Zealand, amounting on the 20th March last to £92,179 9s 2d, they would release it to the Association on the following terms: — £50,000 to be paid either by the present debentures or by the issue of £50,00 C substituted debentures, payable on demand, bearing interest at 6 per cerfl.. per annum, and charged on the assets of the company, to he issued to them iv exchange for the existing debentures if required, aud secured by a trust deed ; £32,000, to be applied in payment of the amount unpaid on 'Air. Ward's 8000 shares, the shares to be afterwards transferred; £6000 to.be paid to Messrs. Reid and Smith, the balance of the debt to be released ; Messrs. Reid, and Smith to be elected directors aud managing directors of the Association ; no shares to be transferred in trust without the consent of the trustees of the debenture deed ; the name o£ the Association to be changed ; the articles of association to be altered so as to give effect to this agreement ; Messrs. Smith and Reid's expenses to be paid ; ' an agreement embodying the above terms, with the necessary provisions, to be prepared by Messrs. Reid and Smith's solicitors, and signed by all parties. It was moved by Mr. Green, and seconded by Mr. Baldie, " That the offer of Messrs. Smith and Reid be accepted." Mr. Solomon asked if the witness had not inserted after the words " debt to be purchased " the words " for 56,000 ?" The witness — Messrs. Reid and Smith, when I sent' them a copy of the minutes, said that they did not show dearly the position, that it was open to inference that they were to get; £6000 for doing the business, for which they were to get nob one single shilling. As the minutes conveyed a wrong impression witness thought-he was entitled to put it right. He did so without asking anybody, although he might have inserted the alteration and left the page iv. Mr. Chapman asked if Mr. Woodljouse, solicitor for the purchase, could be asked lor an explanation ? His Honour said Yes. Mr. Woodhouse, who was in Court, explained that the debts owing by the Ward Association to the Colonial Bank were the subject nutter of an agreement, and were to , be purchased in globo for £62,750, and the ;

arrangement made with Messrs. Eeid & Smith was that the debts should be released — the Ward Association debts for £36,000 in debentures and <"«ish to Messrs. Reid & Smith, and Mr. Ward's own debts for £6000 to him (Mr. Ward). ' ' Mr. Solomon said the leaf being torn out the liquidator was entitled to the explauation now given. The witness was examined at some length as to the method adopted in making up the produce account, and the balance shown in the 1895 balance-sheet. He defended the plan adopted, and believed it to be correct. He had no conversation with the auditor when auditing the accounts. He would not say they simply took the book entries as to the fact of oats being in stock, but he believed there were stocks on hand to represent balance set out. He accepted Mr. Fisher's word that the stocks were there, and thought if one officer could not trust another in the concern it was quite time they separated. He knew at the time of the 1893 and 1894 balance that Mr. Ward had paid in a cheque reducing his accoinYt, tut nothing was intimated to him. He did not attend the directors' meetings, winch were attended by the manager and mauaging director if in Invercargill. He did not know allthe transactions of the company. As to the items referred to in the previous evidence as balancing entries in Mr. Ward's account, lie had no idea what was meant. Those entries in the bank books vfere evidently to reduce the account,, and it looked like beiug intended to reduce the debt due by Mr. Ward and the Association to the Association and bank respectively, as suggested by coun pel. He was away in Australia when the debentures were dealt with, and the amount credited to Mr. Ward's account, but it was possible, through the trial balances not being submitted to the manager, for Mr. Ward to be credited wrongly for months. Mr. Solomon said as the witness was away it was not fair to trouble him with this question. The witness, further questioned, said he did not know whether the directors knew anything about the state .of Mr. Ward's account. He only oame into contact with 31r. Birch, Manager of the Colonial Bank, for 1 a little while on one occasion when Mr. Fisher was away and witness acted as manager. ffhis closed Mr. Anderson's examination. Mr. Fisher's evidence will be taken tomorrow, and Mr. Salomon announced that lie saw his way to pressing the enquiry on more speedily than he at first thought. He asked for the total amount of goods sold to Australian agents during the Association's existence and drafts on the same.