WARD'S BANKRUPTCY

West Coast Times, Issue 10538, 23 July 1897, Page 4

WARD'S BANKRUPTCY

~[Pbb United Pbbss Association.] Dunedin, July 22. The examination of Robert Albert Anderson, secretary of the Ward Associa lion, was commenced this morning. He mta associated with Ward for 8 years and with Fisher 15 or 16 years, but for three yean was in another office, where Fisher wuioot employed. Prior to joining the

was subsequently appointed Secretary. He practically ceased to have anything to do with the books after three months from his appointment as secretary, Enuis, Smith, Royjs, and Mackintosh being the book-keeptrs. They receive no instructions from him as to what entries should be made in the books. He could not say whether they received any instruction from Fisher. When shown entries in one book in June '95 witness said it was possible that some supplementary entries had been made by him. There were 34 such entries in his own hand writing, mainly corrections of wrong debits and credits. At balance time all hands had to assist with the books. He j had no conversation with Mr Ward about such entries, and he did .not recollect Fisher speaking to him or instructing him to put them in. Further examined as to lists to book debts set down as advances against produce afloat or in store he said he did not know whether the Southland Twine Company's account was properly described in that list, or whether the Hokonui debt of £3000 was secured against that account, but believed it to be quite correct. He accepted the word of his superior officer, as he was supposed to do. The grain and railage account meant the Association owed the Colonial Bank £9975 on that special account, and produce account represented a balance of oats in store and he believed there were >£16,000 worth of oats in store as represented.

Questioned as to whether there were £16,000 worth of oats in store at the 1895 balance, witness believed there were and did not know anything about 185,000 sacks of oats short as indicated by counsel. A skeleton balance sheet was supplied to him by the manager, who asked him to put in the details. He believed it to be quite correct to show the difference only between the assets and liabilities instead of the full amount of each, although the effect, he admitted, was to reduce both sides. He considered the deductions legitimate. In regard to "stocks on hand, less goods held on Carswell's account, balance due to the Colonial Bank" he stated that goods to the extent of £10,000 were held secured for the Colonial Bank for payment of Carswell's promissory note, these goods being simply mixed with the Association's other stocks. He believed this on the word of the Manager, who told him so. The entry £65,000 due by Connell & Co, which had the effect of reducing the amount owe<? by Ward to the Association, was made by witness at the request of- the manager, whose word he simply took for it. The transaction did not strike him as peculiar then or now. The same remark applied to the entry of £18,000, Breoks& Coy. He regarded both as ordinary transactions and had made no enquiry about them. He would not swear that when told to make the alterations he was not told to put them straight again the day after the balance, but as far as he remembered it was not repeated. He put in the entries at Mr Fisher's dictation. The effect of these entries was to reduce Mr Ward's account by £23,000 and at the same lima reduce the amount owed by the Association to Brooks for one day alone. He had no suspicion. He read a telegram from Smith, late bookkeeper, explaining the pages removed from the ledger were taken off because ink was spilt on them. Had himself excised one page from the minute book relating to the offer made by Smith and Reid to purchase the debts of the Association and Mr Ward had done so because Smith and Reid stated the minutes were wrong. Notes of the minutes by Woodhouse, solicitor were a mistake. What appeared was that the minute stated they were to receive £6000 in cash.

At this stage Mr Chapman suggested Mr Woodhouse should be asked for an explanation.

Mr Woodhouse then explained the matter to the following effect. The debts owing by the Association and Mr Ward to the Colonial Bank were to be purchased in globo for £62,750. The arrangement was they would realise the Association debt to the Association for £56,000 and Mr Warjjfc debt to him for £6000, the Association to pay £6000 cash. . ""

Mr Solomon said the liquidator was entitled to the explanation now given.

Mr Anderson's evidence was continued. He snid he had no conversation with the auditor when the latter was making the audit. Neither to his knowledge did he make any inquiries about the statements in the balance account. Witness explained the method pursued in making up the produce account and thought it was the proper thing to do. He accepted Mr Fisher's statement that the stocks were in hand to represent the balance set out and thought if one officer could not trust another in a concern it was time they separated. He only came into contact with Mr Birch, Bank manager, on the occasion Fisher was away.

This closed the examination. Fisher will be examined to-morrow.