PUBLIC OPINION ON THE CASE.

Star (Christchurch), Issue 5818, 6 January 1887, Page 3

PUBLIC OPINION ON THE CASE.

[Pke Pbbßß Association.] WELLINGTON, Jan. 6. The Times says the action of the Northern Land and Loan Company looks as though, having lost .£3OOO by the defalcations of their Secretary, Waters, the Directors had virtually squared the matter for a sum of money which reduced the loss to £1900. The article proceeds :— " What we blame the Directors of the Company for chiefly, is their repudiation of any responsibility in regard to initiating proceedings against the defaulting Secretary. It is not sufficient to say to the shareholders, 'You can take any action, you like/ the Directors should have recogniaed the gravity of the offence committed againßt social honesty and commercial morality. They should^ave come down boldly to the shareholders and said, ' We do not feel warranted in risking your money without your sanction, but tbis is a very flagrant case, and we feel bound to ask you for authority to prosecute.' And then the Chairman should havo moved 'that a prosecution be undertaken.' As it is, misgivings are suggested as to whether all haa yet been told. If the facts are simply as stated, and there ia nothing behind which might qualify their bearing, then it seems to us that by ' squaring ' such a case the commercial honour and reputation of Wellington has been dragged through themudandgreviously besmirched. This deplorable affair, following aa it does on the Waring Taylor frauds, will do serious injury to the reputation of this community for commercial honesty. It is most lamentable that such a crying scandal should have arisen at all, but it is rendered tenfold more damaging by the vain attempt to hush it up." WATERS ARRESTED. DUNEDIN, Jan. 6. Waters was arrested here, and wag sent back by this morning's train.