Ward Farmers' Association

Thames Star, Volume XXIX, Issue 8616, 22 March 1897, Page 2

Ward Farmers' Association

LIQUIDATOR'S INTERIM RE ORT.

(Per Press Association.)

DuSEDiN, March 22, The interim report of the liquidator of the Ward Farmers' Association states that of the share capital in contributing shares alloted to 30th June, 1893, Mr Ward held 2000 ; the direct >rs, manager*, and employees of the rsiociation 920, and the general public. 2170. On shares held by Ward, £500 was paid in cash, the other £1500 being debited to hia account, which at the time was in debit about £2100. Twelve months later the number of shares was increased by 6971, of which 5000 were subscribed by Ward, and 1142 by the general j public. Ward's account was again debited, his debit balance the day before being £43,376. The issue of debentures for £50,000, bearing 6 per cent interest, is then treated of, £31,000 being taken up the Colonial Bank, and £20,000 by the Bank of New Zealand at par, the latter bank charging £200 as commission. The money was placed by the bank to the credit of the association, but in the association's books it is placed to the credit of Mr Ward, who owed the association £42,4,18. The day before the i balance in 1895, Ward was debited j with the amount, and a debenture | account opened. Dealing with the balance-sheets, the liquidator shows how, in the first one, the overdraft was reduced by £24,000 by cheques of Ward's, while al the same time entries in connection with the freezing works reduced Ward's account with the as-1 |sociation from £35,741 to £4108.. These were all reversed after balanc- , ing. The omissions from the balnacesheet are pointed out! In the association ,balancefsheefc, of .^SOth June, 1894, the overdraft 'was reduced by Ward's cheque for £35,000, 'reversed on the Ist of July. The omissions and discrepancies as compared with the bcioks are indicated. i The advances against produce to the extent of £74,929 were, according to the books, £31,535. The book debts 'were £34,643, but there is no such | item in the balance sheet, though part' is probably included in the current account of £10,372. Attention is called to several items not set out in the assets; also of the f895 balance sheet the liquidator says that the funds of the bank account were " grossly misrepresented." The grain and railage overdraft of £9,975, the past due bills of £19,438, the draft? against shipments £41,692, are omitted, and the draft for £31,000 on Connell and Co. and the promissory note of £ 10,000 <in connection with Carswell are not ! mentioned. There were also omissions ! and discrepancies on the -asset side, the value ef stock, etc., being understated. Attention is directed td the entries in adjusting Ward's various accounts, by which £39,890 to his credit from the sale of debentures was transferred to the Association's tdebentures account. Credits were given to Ward for £18,016 and £6,500 from the account of Brooks and Connell and Co., who then appeared to have £16 Is 9d to his credit on the Ist of July. These firms, accounts were again credited with the amount and reverted to the original position. The liquidator says he is unable to discover a trace of the oats warrants said to have supported the £30,000 draft, or what foundation of right there was for crediting Ward with the proceeds of the Association's debentures. It is due to Ward to say that he was out of the colony when the balance sheet was made up. He was represented by Mr Fisher, manager of the Association, who held a power of attorney.