WARD BANKRUPTCY

West Coast Times, Issue 10533, 17 July 1897, Page 4

WARD BANKRUPTCY

[Per United Press Association.] Dunedin, July 16. The examination of J. G, Ward, on behalf of the liquidators of the Ward Farmers Association was continued today. The first part of the day was devoted to questions, completing the examination of the previous day on various points. Witness said there was nothing published but the balance » sheet from which the shareholders or the public could gather (except on two days in 1893- , 94-95) that the overdraft was what it was. Witness had no recollection of placing before the directors the state of the overdraft other than as in the balance l sheet and had instructed no one to do so. He again denied the existence of a system . to conceal the state ot affairs. On the grain account being opened the instructions were that the Association was, not to enter on any speculation that would , involve loss. All the profits were to go , to the Association and witness was , to bear the losses. The debit of £6617 in the grain account was paid by witness. A long examination then followed as to various items in the books and then the 1895 balance sheet was dealt, with at some length. Asked as to how he signed the balance sheet showing a profit of £50,000 or £64,000 after being told that losses to the extent of £20,000 or £30,000 had been made, witness said he had undertaken to provide for these i losses which turned out to be £55,000 and i he undertook, without intending it, to 1 provide that the £55,000 was paid so far > as the Association was concerned. Asked - if he honestly believed the total amount 1 owing to the Association in 1894 was > £44,000 witness said he believed the : statements that were put before him. He > did not examine his own account when he went to Invercargill to preside at a meeting of the Association as he had no time. Witness denied that irrespective , of £55,000 he was insolvent. The Banks i between them got the Farmers Association, "he had no hesitation in saying, for personal and political reasons. If allowed, he was originally in a position to have paid the interest on the whole amount of the money he owed. In order to give time to make enquiries about the bills about which questions are to be asked the Conrb adjourned early. The auditor will probably be examined to-morrow. Ward stated from 1894 to 1895 the loss on the Bluff stores books showed, outgoings, £1309 and a - credit of only 10s Bd. He knew that the account was incorrect but not having kept the books he could not say where the mistakes arose. His statement showed a profit in this account in 1895 bt £6,217. On June;29th he was credited with £1,500 rent and his salary. On the same day he was debited with the same amount, entered the rent and salary reversed. Could not say whether his salary was forgone that year in order to shew that there had been a profit for the Ward Associations. That yearjthe Association made a net profit of £6,516 so £1,500 could not affect his position. Witness contended the liquidators' report was drawn up on incorrect information. When the 1893 balance sheet was presented to him he did not take any steps to verify the figures as he had the fullest confidence in Fisher, Hannah and Anderson. When the 1893 balance sheet was signed he must have known he owed the Association £21,000. It is probable he would have known the amount he owed was then £43,000. The form of balance sheet differed in 1895 to that of 1893 and in 1895 to that of 1894 and the following year £15,000 appeared £-.>r the goodwill. He considered the item a good one and in the usual discussion of the 1893 baiauce sheet Ward said durinc1893,1894, the Association bought Oarswell'a business for £14,000, Cars well being paid in paid-up shares. Witness considered it a bad purchase and on the representation of the Colonial Bank he took it over. The same year he purchased the United Farmers Agency, There was nothing in the balance sheet to show the shareholders the terms of Carswell's purchase. It was estimated Carswell made a profit of £3,004. After taking over the business he found the profit not as estimated. Negotiations were set on foot to cancel 5,000 shares Witness paid £1,100 cash out of his own ' pocket fa cancel foe. f&areg and. re^ve ttjQ

Association. He purposely concealed from the shareholders the true statement of Carswell's business, the sale of which to the Association was advertised in the Southland papers before the meeting of the shareholders. Early in the proceedings at the examination of the Hon J. G. Ward to-day, Mr Soloindngave notice that he intended to put this question when at the date of the 1895 balance .sheet Mr Ward was indebted to the Farmers Association in the sum of £55,000. During the 3 years that the Association had been in existence he had paid into it by way of salary and other eiaoulments one sum which we make to be £12 v OOO so that in these two and a half or three years he had either lost or spent £67,000. Counsel said— "We cannot make out where it has gone to and we want Mr Ward to explain it. We can only account for £42,000 out of the £67,000 and we want Mr Ward to exto us what has become of thab money. Of course it would be unfair to expect an answer without consideration". At the end of the proceedings Mr Solomon said that he and his friends did not suggest personal impropriety on the part of Mr Ward nor dishonesty, but he was bound to ask Mr Ward as the managing director of the Company what had become of that £67,000.