LOAN AND MERCANTILE.

New Zealand Herald, Volume XXXI, Issue 9491, 21 April 1894, Page 5

LOAN AND MERCANTILE.

EXAMINATION RESUMED. HON. THOS. RUSSELL'S STATEMENT. BARON SCHROEDER'S OFFER. Press Association.—Electric Telegraph.— Copyright, London, April 19. The examination of the New Zealand Loan and Mercantile Agency Company's directors was resumed to-day. Mr. H. J. Bristow said the shares in the Waikato lands were taken in fulfilment of an agreement with the Bank of New Zealand in 1887, that if the Bank took up the Auckland Agricultural Company's loan, the Loan and Mercantile Company was to take over the Waikato lands from Mr. Thos. Russell. He was positive that counsel's opinion "on the altered prospectus was submitted to the directors, despite Mr. Mundella's belief to the contrary. He denied that the company wished to conceal its interest m the Waikato lands. The Hon. Thomas Russell declared that Mr. Barker's report was founded on erroneous data, and that he lacked experience. He (Mr. Russell) cabled to the Board of Directors on June sth, advising them to pass the dividend. The Judge remarked that Mr. Russell ought to have cabled to the directors, advising them to disregard Mr. David Elder's telegram asking his report to be withheld. Mr. Russell replied that he now admitted Mr. Elder's action in the matter was wrong. Fair Play states that Baron Schroeder has offered to admit £623,000 worth of debentures to take equal rank with his debentures against the assets of the company, if the re-construction scheme is accepted. London, April 20. Mr. Bristow, in his evidence, said that as a young director he had trusted the other members of the Board. The Judge remarked that the witness had shown over-much confidence in the directors and managers. The Hon. Thomas Russell, in the course of his examination, said he did not regard it as improper for the auditors to exclude from the balance-sheet of 1892 the record appertaining to the shares in Waikato lands, but His Honor dissented from this view. Melbourne, April 20. No confirmatory advice has been received regarding the offer made to the New Zealand Loan and Mercantile Agency Company by Baron Schroeder ; but it is probable that the £623,000 worth of debentures will be eiven to the secured creditors in exchange for securities, so that the re-constructed company will be able to commence business with all its securities in its own possession.