LOAN AND MERCANTILE.

New Zealand Herald, Volume XXXI, Issue 9479, 7 April 1894, Page 5

LOAN AND MERCANTILE.

THE PUBLIC EXAMINATION

CONTINUED.

IMPORTANT STATEMENTS. Press Association, Telegraph.—Copyright.

London, April 5. , In his examination before Mr. Justice Williams, concerning the New Zealand Loan and Mercantile Agency Company, Mi. Falconer Larkworthy said that in 1«90 he reported there were further deficits, and that the reserves were exhausted, but the Board took no notice of the matter. Losses amounting to £348,000 appeared on the balance-sheet as an asset, and the statement of profits presented in 1889 included interest on that sum, although it had not been paid. He added that only the Right Hon. A. J; Mundella, one of the directors, supported him in proposing that an independent inspector should be employed to inspect the company's properties, and report direct to tne London Board.

Continuing his evidence, Mr. Larkworthy described certain statements made by the Hon. W. Shields, of Victoria, in his speech at the London meeting, as grossly untrue, and said Mr. Shields was a friend of Mr. David Elder, the general manager of the Company in Australia.

In reply to some severe questions put by the Judge, the witness admitted that had Mr. Shields known the true facts of the case, he would not have spoken as. he did, and he also admitted that he himself had now confirmed the statement contained in Mr. Shields' speech to which exception had been taken. He said he did not consider it his duty to remonstrate at the time.

In reply to another question Mr. Larkworthy said he had also acquiesced in the balance-sheet at the same meeting, believing as he did that the reserves would cover the Melbourne deficit of £480,000 which " had not then been revealed.

Counsel complained of the manner in which the witness gave his evidence, taking particular exception to his hesitancy in answering, and his inability to remember certain things.

The Judge urged the witness to be perfectly candid in giving his evidence.

Mr. Larkworthy further stated that his salary was increased in 1890, although his authority and duties diminished, owing to Mr. Gane, the London manager, and Mr. Thomas Russell assuming more control. Personally, he had dissented from this arrangement.

In reply to a question he said he did not remember approving of a certificate depriving debenture - holders of security.