LOAN AND MERCANTILE COMPANY.

New Zealand Mail, Issue 1157, 4 May 1894, Page 34

LOAN AND MERCANTILE COMPANY.

London, April 26. The examination in connection with tho New Zealand Loan and Mercantile Agency Company was continued to-day, before Judge Sir Roland Vaughan Williams. Mr Moore, auditor to the Company, stated that he objected to the Waikato shares appearing in the balance-sheet under the heading of wool and produce advances, as the item required a separate heading. Mr Paul, however, stated that it was in accordance with the directors' wishes, and witness made no protest to the Board. He had often asked for information regarding the interest earned, but had always been refused. London, April 27. Mr Moore, continuing his examination, said it would have been impossible to have sanctioned the earlier balance-sheets had he been in possession of full information, as obtained in 1893. The unproductive capital in 1891 stood at a million sterling, and he admitted that the balance-sheet of 1892 was not a fair statement. Mr Paul stated that the increased losses on Australian property were due to rabbitfencing and other improvements, and not

to the non-payment of interest. Mr Moore, he said, was not aware of deficits. London, April 27. Mr Moore, auditor to the Loan and Mercantile Agency Company, in his evidence before Judge Williams, said he asked for the resolution of the directors permitting the transfer of £21,000 from the Suspense to the Profit and Loss Account. Mr Paul did not obtain this resolution, but assured the auditors that the directors assented to the proposal, and witness therefore passed the item. He was now surprised to learn tliat the London Board had withheld a portion of the documents regarding the colonial defioits. Mr Peat, another auditor, said ho askod for the returns in connection with the working of stations, but Mr Paul did not produce them. Mr Paul, when re-called, admitted that he had excised tho references to the deficits in the report of Sir James Forgusson’s speech in February, 1890, but maintained that ho did not do so with any idea of concealing the true state of affair's. His desire was to condense the report. His Honor remarked that the answers of this witness were of little use, owing to tlio great caution he displayed in giving his evidence. Mr Paul denied many of Mr Moore’s statements, but admitted that he had deceived the auditors respecting the directors’ approval of the form of balancesheet. Mr Peat, in the course of his examination, admitted that the balance-sheets issued in 1891 and 1892 were incorrect, and said the system regarding many of tho accounts was not right and proper. Mr Justice Williams has postponed leave to register the new Loan and Mercantile Agency Company, in order that the trustees for the prior lien may approve of the articles of association. London, April 28. Continuing his examination to-day, Mr Paul admitted garbling Sir J. Fcrgusson’s speech, but said his intentions in the matter were quite honourable. Ho stated absolutely that he was ignorant that the report of Mr D. Elder, the Australian manager of the Company, referred to the Company’s accounts until it was opened in June. Judge Williams said he was shocked at tho statement, which appeared to him to be incredible, and he declared Mr Paul to be incorrigible. The Judge delivers his statement on Thursday.