LOAN AND MERCANTILE AGENCY.

Taranaki Herald, Volume XLIII, Issue 9977, 13 April 1894, Page 2

LOAN AND MERCANTILE AGENCY.

EXAMINATION OF DIRECTORS CONTINUED. [per press association]. London, April 12. — The examination of the directors of the Loan and Mercantile Agency Company was resumed today. Sir Edward Stafford said that at the meetings of the Board of Directors, most exciting discussions had taken place regarding the reports furnished by Mr Falconer Larkworthy and Mr David Elder. He (Sir Edward Stafford) admitted that one third of the sum divided in 1892 was composed of unearned interest, which had been placed to the credit of the profit account. He also admitted that he had failed in his duty as director in not enquiring into certain items in the balance-sheet. The holders of unconverted debentures in the Loan and Mercantile Agency Company claimed priority or equality with the converters, on the ground that the old prospectuses gave security. Judge Williams held it was clear that the re-construction scheme was drawn on a basis of the right of holders of Baron Schroeders' debentures to have the whole of the unpaid capital appropriated for their benefit, but in the event of failure this right was very much open to argument, and he required evidence that the creditors were aware of the facts when they assented to the scheme. He also wanted assurance from holders of Baron Schroder's debentures that they would grant a further concession if such was requisite, without compelling him to act. His Honor hinted that he might bring pressure to bear in this matter, as he recognised the necessity of disposing of the reconstruction scheme without delay, or it would be a failure. The Liquidator stated there was plenty of floating capital when the Company was restored. The discussion on the scheme was adjourned till Friday. Melbourne, April 13. — Mr David Elder, General Manager of the Loan and Mercantile Agency Company in Australia, wrote to the press reminding his friends that the court at present sitting in London is not in possession of all the facts of the case and asks them to suspend judgment in the matter where his name is mentioned until the examination is concluded. He says, if necessary, he can make such an explanation as will show the real facts and can justify every trae of his actions that have been called . into question by the court.