FURTHER AFFIDAVITS

Otago Witness, Issue 2242, 18 February 1897, Page 30

FURTHER AFFIDAVITS

The following are further affidavits in connection with the liquidation of tho Walter Guthriß and Co. (Limited) and allied companies :—: — 1, Walter Horace Brent, of Invercargill, accountant, mike ostli and say »k follow* :— 1 I have lead copies of the tw> affidavits of William Boyce Buller, sworn and filed herein today. 2. I was appointed secre;ary of Walter Guthrie and Compauy (Limited) aiu' the allied companies on the Ist day of April. 189(3 3 The delay that occurred in the preparation of the balance shfets of the said companies for the period ending on the 31st day of M-rch hst wjs due to thu fact that it took me a. ccnsi 'brable tin>e to make myself acqu tinted with the »ff,uis of all the said companies. 4. I wa3 instructed by Mr Walter Guthrie to hand 'he said balance sheets, when completed, to Mr William Richard Cook, who was investigating the affairs of all the said companies on behalf of the Bank of New Zealand. I had made up two statements of the profit an^ lo3s account of Walter CUithrie and ' 'oropany (Limited), in which the result was the stme, but ai rived at by a different method. ' I banded the^e two statements to Mr Hnlme, an accountant in the employ of the said William Richard Cook, who was conducting the investigations on his behalf, and I then told him ihat the firat statement for comparison was made up on the same b-\sis as the profit and loss account of the said company which had b~en made up for the previous year, and that the other st;itemet>t had been m<ide up in a way which, in my opiuio:), showed more clearly the workiDg of the company. I deny that I ever said tn Mr Hulme or to any other person that the exhibit W. 8.8., No. 3, referred to in the second affidavit of the said William Boyce Buller was intended for the public, or ih\t the account as stated, according to the exhibit W.B B . No. 4, referred to in the same affidavit, was intetidi'd for private information ; and I further fa.y that I never made any statemeut such as that alleged in paragraph. 8 of the said laat-meutioned affidavit 5. With respecjb to the statement contained in paragraph 6 of the said last-mentioned affidavit, I say that I do not know what the mattes are to which the oaid William Boyce Buller refeis as requiring further information, but I say that I am quite willi g that my conduct in connection with the preparation of the said balance sheets should be subicottd to the most complete aud searching investigation, and lam confident that the ie«ult would be to show that I have not done anyihiue wrong or improper in connection with the said balance sheets, or to which the most scrupulous and high-minded bank officer could take the least objection. 6. With respect to the mutters referred to in piragraph 35 of the first aftiittviff of William Boyoe Buller, sworn and filed herein, I say as follows :— (a) It is not true thut in any balance sheet of the Pine Company the assets of that company were written up ; but what appears to have been done was this : the shares in the Pine Company were purchased by Wa'trr Guthrie and Co. iLimited) for £80,000, and as these shares were, as I understand, valued at £100 000, they were treated m the balance sheet of Wal'or Outline and Co. (Limited) as being worth £90 000 The Bank of New Zealand was and is a large shareholder in Walter Guthrie and Co. (Limited), and, as I am informed and believe, received dividends referred to in the said affidavit without making any objection thereto. (6) 'With respect to the allegation that no sufficient provision has been made for depreciation in the case of the Pine Compai.y, I underatand that the price of timber has greatly increased during the list few years, thus largely enhancing the value of the large bush ho'dinga of the company, and by written agreement with the bank it was not necessary to commence a depreciation reserve until after the 31st of July last, or four months after the date of the last balance sheet. (c) V/ith respect to the other matters referred to in the said paragraph the allegations are made in such vague and general terms that it is impossible for me to deal with them, but in any case if there has been any improper management of the said companies, which I underatand is denied, such improper management took place long before I was connected with the said companies, and I would not be affected in any way by the result of any such investigation as is referred to in the said affidavit. I, James Hazlett, of Dunedin, in the colony of New Zealand, merchant, make oath and say as follows : — 1. I a.m a member of the firm of Mackerraa and Hazlett, who have for the last 20 years cairied on bu'-ineM in Dunedin a» merchants. 2. I know and am well acquainted with Walter Horace Brent, of Invercargill accountant. 3. The said Walter Horace Brent was in the employment of my said film for about 14 years prior to his being appointed secretary of Walter Guthrie and Co. (Limited) in April last. During that period he uuecesifully filled in succession each of the diffeient positions in our mercantile office He also acted as salesman and traveller for nearly two year 3, and he has an intimate knowledge regarding the sale of stock and the collection of book debts During- the last four year* in our service he acb'd as chief accountant and cashier, having entire charge of the finance of the firm and the collection of the book debts, besides taking an active part in realising assigned estates which came under the control of my said firm. 4. I have at all times found the said Walter Horace Brent to be an upright, -zealous, and capable officer, worthy of implicft confidence and, in my opinion, he >» ia every way eminently qualified to act ca one of the official liquidators and as one of the receivers and managers of Walter Guthrie and Co. (Limited) and the co*"» panics connected therewith.