LOAN AND MERCANTILE COMPANY.

New Zealand Mail, Issue 1156, 27 April 1894, Page 34

LOAN AND MERCANTILE COMPANY.

London, April 17. It is expected that Mr C. J. Hegan and Mr Alfred Garrick will join the directorate of the Now Zealand Loan and Mercantile Agency Company.

Mr Henry J. Bristow has declined to rejoin tho Board.

The New Zealand Loan and Mercantile Agency Company bondholders' of 1879 issue aro asking for a large representation on the Board.

London, April 19. The policy of the new Board of Directors of the New Zealand Loan and Mercantile Agency Company is favourably received in tho city. Fair Play, commenting on the reconstruction scheme, says that Baron Schroocler, who is master of the situation, has agreed to do his best to carry it out if the shareholders fulfil their part of tho conditions. If the shareholders reject the scheme, they will have to meet forced calls to the utmost extent of the liabilities, besides losing a magnificent business which is capable in competent hands of recovering past losses. If, on the other hand, they accept the scheme, calls will be deferred, the total amount will be reduced, business will bo preserved, and colonial exporters will have under their own control a valuable portion of their exports. Under the circumstances, Fair Play assumes, the shareholders will not hesitate to accept the scheme, as they have absolutely nothing to lose but much to gain. The new Board of Directors, with Mr Martin as chairman, and backed up by Baron Schroeder, contrasts favourably with tho old directorate, says the paper, which goes on to say that it will bo necessary to regain the goodwill of shippers by reimbursing, where possible, those whose consignments were confiscated by having been merged in the general assets of the Company after the suspension. In order to prevent a recurrence of such possibilities, a clause should be inserted in the articles of association to provide that all such consignments or money arising therefrom bo held in trust by the Company as trustees for the consignees. Fair Play strongly commends this step to the consideration of the Board, and dwells on Mr Martin's intimate relations with powerful shipping companies. While on the question of shipping, the paper also urges that consideration should be given to the scheme for assisted emigration.

London, April 19. Tho examination rf the Loan and Mercantile directors was resumed to-day.

Mr 11. J. Bristow said shares in the Waikato lands were taken in fulfilment of an agreement of the Bank of New Zealand in 18&7, 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 Thomas BusseU. Ho was positive counsel's opinion regarding the altered prospectus was submitted to the directors, despite Mr MuudoLLa's belief to the contrary.

mbm

In his evidence, Mr Bristow denied tliat the Company -wished to conceal its interest in the Waikato lands. Tho Hon Thomas Russell declared that Mr Barker's report was founded on erroneous data, and lacked experience. He (Mr Rusaell) cabled to the Board of Directors on June sth adyising them to pass a dividend. The Judge remarked that Mr Russoll ought to have cabled to tho directors advising them to disregard Mr David Elder's telegram asking his report to bo withheld. Mr Russoll replied that he now admitted that Mr Eldor's action in the matter was wrong. BA.RON SCIIROEDER GIVES WAY. Fair Play states that Baron Schroeder has offered to admit £623,000 worth of debentures to take equal rank with his debentures against tho assets of the Company, if tho reconstruction scheme is accepted. London, April 20. Mr Bristow, in his evidence, said that as a young director ho had trustod tho othor members of tho Board. The Judge remarked that tho witness had shown overmuch confidence in tho directors and managers. Mr Thomas Russoll, in the course of his examination, said he did not rogard it as improper for the auditors to exclude from the balanco-sheot of 1892 the record appertaining to the shares in tho Waikato land, but His Honor dissented from this view. Melbourne, April 20. No confirmatory advice has been received regarding the offer made to the Now Zealand Loan and Mercantile Agency Company by Baron Schroeder, but it is probable that £623,000 worth of debentures will be given to secured creditors in exchange for securities, so that the reconstructed Company will bo able to commence its business with all its securities in its own possession. London, April 20. In his examination before Mr Justico Williams, Mr Thomas Russoll declared that Mr Lark worthy's valuations were worthless, and deceived tho Board. He denied that be had influenced a telogram being sent to Lomdon to suppross the report of Mr Elder, manager of the Company in Australia. Mr Unwell also made statements in regard to the borrowing of a sum of .£40,000 in direct conflict with the minutes of tho Colonial Board on tho mattor. London, April 21. The examination of the diroctors of tho New Zealand Loan and Mercantilo Agency Company was resumed to-day. Mr Thos. Russell stated that Mr Elder had mado an offer to tho London Board of Directors to form a company with a capital of £IOO,OOO to purchase tho Now Zealand Loan and Mercantilo Agency Company's properties, as he believed they were a 30und investment. A telegram from Mr Elder was read, which stated that ho had wired withholding his report knowing that Mr Russell was on the eve of arriving and that the latter had full powers to act. Judge Williams considered tho explanation was a just one. Mr Russell dwelt at some length on tho explanation, and said though while not prepared to declare that Mr Elder's telegram withholding the report was wrong, it was a strong step to take. Mr Russell roferrsd to the succoss of the New Zealand Land Association in handling tho business of tho New Zealand Loan and Mercantile Agency Company, which ho said had increasod since the suspension of the Company. London, April 22. In his evidence before Judge Williams Mr Thomas Russell said that a rise of 3d in wool would quickly restore the New Zealand Loan and Mercantile Agency Company to a sound position. Mr Larkworthy was eccentric in his behaviour, and he did not trust his judgment. Witness denied that he would be personally ruined if the Company were not assisted to resume business. He would still be able to pay the interest on the principal without undue personal sacrifices. The Waikato properties were of enormous extent. He was not aware that the 1888 prospectus was misleading. The Judge, referring to tho various circulars that had been issued, said tho Company had always seemed to be oppressed by the fear of telling too much. Tho Company had allowed Mr Russell an excessive amount of influence in arranging tho Waikato transactions. Mr Russoll, however, denied that this was tho case. MrC. J. Hegan and Mr W. W. Oswald have joined the Board of Directors of the Company.