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PHONE: CENTRAL No. 1116.
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THE HONGKONG TELEGRAPH. WEDNESDAY, DECEMBER 11
THE BREWER CASE
RESUMED.
AUDITOR SATISFIED WITH EXPLANATIONS.
THE BALANCE SHEETS.
Uncalled Capital on Asset?
Arriving at this point in his statement, Mr. LI Tur was taken item by item over the Balanc Sheet ho ha thus aigned and nt- lested as correct. The Public! Prosecutor pointed out that there on they had the authorised capital: a. $10,000,000, the subscribed) capital $1,180,000, the allotird capital $1,183,200; and also Bun-| dry debtors, loans and mortgages. An important witness in the per-He asked witness how he could re son of the Chinese auditor of the concile these figures with the Instone Banking Corporation appeared at the trial, continued great, disparities as depicted ciné-
where. « before Mr. A. W, G. H. Grantham at the Central Magistracy yester day afternoon, of Mr. N. 1. Brewer, barrister-at-law, who is charged with committing offences under the Perjury and Larceny" Ordin- ances in connexion with the pre- paration and filing of what is alleged to be a false balance sheet with the Registrar. of Companies.
In the course of his examinn tion by the Crown, Mr. Li Tung. the witness in question, said he perceived certain irregularilfes coniected with the posting of cer- Lain easpital figures to represent these as assets, but was satisfied with the explanations given by Mr. Brewer and duly passed, the balance sheet.
The first witness at the résumm- tion, of the proceedings yesterday was Mr. G. Labrum, of Ye Olde Printerte, which received an der from the Instone Banking Corporation to print 200 copies of the balance sheet treferred to for the sake of clarity as the Green | Balance Sheet) for the first year of the Corporation's activities.
by Mr. Cross-examined Davidson for the defence, Me. Labram sald 200 copies were de livered on July 13, but before de- livery of this lot. nothing else was sent except in the shape of proofs.
on
Witness: Mr. Brewer called me over to sign it, but before sign- ed the Combined Balance Sheet 14 had noticed these differences.
Mr. Brewer called you over by telephone or chit?-1 got the mes- sage over the telephone.
Whom did you see when you got there?-No one else besides Mr. Brewer,
Did you see Mrs. Brewer at all on any of these occasions connect- pd with these balance sheets?~~ Not at all.
Asking witness to compare the Combined Balance Sheet with one of the subsidiary ones, 'the Public Proserator pointed out certain dis- ! crepancies in the Capital figuros.
Witness replied: 1 found these differences myself and pointed them out to Mr. Brewer, who told me that if the anealled capitad was posted over to the assets side in the balance sheet, it would look better. Mr. Brewer also informed me"that before becoming a barric ter, he was a very gind necdun!- ant. Mr. Brewer further said that he had seen other banks and big emporisms making their ha- fance sheets in that way. I ask- ed him to explain more fully why he should class "unenfled capital" as an asset and postéd it as such in the balance sheet, His
ཎྞvČ platiation was that he and asked certain shareholders to signeer- tain application forms, and hav ing signed it, they would be held responsible for the backing up of this uncalled capital.
The question was also asked by witness why Mr. Brewer should to swell these capital desire figures, and he replied that such shareholders could be called upon at any time to make up for such capital.
Miss Grace Ezra, Government stenographer, testified to having taken down a verbatim shorthand report of the proceedings con- nected with the public examina tion, in the Supreme Court August 6 and 7, of Mr. Brewer. She transcribed these notes and produced them to Mr. "Brewer when he called, on August 12 and 13. Mr. Brewer read them and made certain corrections of what he said were inaccuracies in the reporting. These alterations were subsequently gone over with Mr. Brewer after transcription, and objections on this score, and Mr. Mr. Brower signed them. Wit-Brewer was offended; ness, in her turn, lodged the Mortgages and Long-Term Lonns, papers in bfficial quarters.
Auditor's Evidence.
In your opinion it should not he included?—Yes. I did
raise
Questioned with regard to mort- pages and long-term loans as dis- played in the Combined Balance
Mr. kả Tung, who was next call-Sheet, witness admitted he never saw any mortgage deeds proving ed, said he had been auditor each items, except that he.. found ployed be the Instone Bankingthe figures to be correct after hily- Corporation from the date of it in compared them with those of ablishment to April of lathe subsidiary balance sheets year. Bandited the Balance
Why did you put your name to Sheet dated April, 1928, dain, in balance sheef hearing mortgages this work on the premises of the when you were not shown any?-- Bank. Resumed every day 5
1 relied on these figures in the m. the auditing occupied ten days, Mr. Brewer, being the only person present,
other balance sheets and on Mr. Brewer's assurances that these figures were correct and was satis- Three balance sheets were prafied with the explanations he gave duced, for the purposes of audit- me. He said some of the mort- Ing, the first relating to the Hong-gages wore in Shekki and as for kong Branch, the second to the the others, he said they could be Head Office, and the third, which taken as correct. When he told was more in the hature of a rene that the total figure given of
Branch. the Shekiti
these mortgages was correct I did These three documents were type not pursue the matter further... written,
All you saw was the three bal- ance sheets but no mortgages?— That is no.
turn, to
Balance
1929.
ம்
GIFTS
WE ARE SHOWING A MOST VARIED SELECTION OF-
CHRISTMAS GIFTS
AT SALE PRICES
Just Arrived.
A SPECIAL LOT OF LADIES' HATS BY THE LEADING AMERICAN MAKERS.
THE FINEST AND LARGEST DISPLAY OF HANDBAGS
IDEAL FOR CHRISTMAS GIFTS
Prices from $2.00 to $42.50.
F
ALSO- -HANDKERCHIEFS, MANICURE SETS, GLOVES.
SPECIAL LOT OF FLOWERS JUST HERE
ELITE STYLES
SHOP EARLY
A.P.C. BUILDING
Tel. C. 2432.
said shares, and that in the played on the Combined Balancejance as to the liability of the sig- "event of my essaying to transfer Sheet. He anid he was shown a share natories under those amounts.
or hypothecute the said shares, scrip for $145,000 by Mr. Brewer,
it shall be forthwith repayable who in explanation, said it was a without demand."
Printed Balance Sheet.
share scrip of the Instone Trad- At this point, the Crown pro- He had already started auditing
Witness said he had been showning Company. "I enquired what duced a balance sheet which was before being given on a sub- sequent date, the Combined Ba- Questioned with regard to the printed form similar to this up-this trading company was, and he the one printed by Ye Olde Frin the Registrar of Com- lance Sheet purporting to incor-item collateral securities display-plication, and instantly pointed raid it was an imparts and exerie in its ultimate form and fil- parate the other three subsidiary ed
the Combined Balance out to Mr. Brewer that that could ports company owning shares worth ad with Sheets. The Shekki
Sheet; witness said Mr. Brewer be no security. Mr. Brewer's re-that figure. I next asked where panies. It was green in colour, books were not made available to told him that the item included ply to this was that when the Bank that Company was located, and he and witness was asked if he had witness, and he confined himself money lent to shareholders. louned money to shareholders on salù it was above the Bank, I was to looking over the Hongkong" The Public Prosecutor then put their shares, the Bank would have shown a scrip of shares which books, and received some little as in the following document which a first claim on those sharehold-valued at $1,000 each sistance from Mr. Rodriguez, the he said was signed by a Mr. Chaners, and that signed bit of paper amount to the figure shown,” accountant. of the Bank, on que | Kwok-ming of No. 64 Bonham was the security. sole occasion. All the auditing Strand: was done in Mr. Brewer's room, except when it was found. neces- sary to go to Mr. Rodriguez' ollee on the occasion referred to.
Witness merely audited and checked the accounts, and did not himself. make a balance sheet The Combined Balance Sheet was given to him by Mr. Brower him, self, and he signed it on June 6, that representing the date on which he completed the auditing.
SALESMAN SAM
Sams Home PROKIN', HIS GRIP, RED-HES
EVERYTHING LEAVING TOMORROW
IS ALL SET FOR SAM'S TRIP UP NORTH
WHERE HE PLANS TO GET]
FURS FROM THE
ESKIMOS
FOR
THE
FALL TRADE-
38
seen it before,
Witness replied that he had seen would
such a balance sheet, after the Witness was next interrogated one which he signed.
The Public Prosecutor: Did Mrs. The Public Prosecutor: You In regard to the item customers'
ask you to sign a to pass thui asdeposits. shown on the Combined Brewer ever
As amounting tobulance sheet like that? Sho "I hereby make an application were antisfied to the Instone Banking Corpora- Collateral. Securities 7-Witness: Balance Sheet
of was not satisfied and made $406,000, and "he, replied he was never did.
Were those arrangements tion for a personal loan $9,000, which sum I propose to objections, but he said he was a satisfied that this figure
more about ponded with that in a ledger and shown in the green balance sheet une in payment of the balance burrister, and knew outstanding on 100 Ordinary the law than I did, and could any with those displayed on the thres suggested by you or were they subsidiary balance sheets, the work of someone else?-They Shares applied for (or allotted that it was perfectly legal.
saw nothing peculiar in this item. Jwere not mine. All I did was the to me in my name, on which
Shares and other Investments.
Mr. Brewer, continued witness. auditing:
Who was it that presented it the sum of $10 per share has been previously paid by me, in Witness was next questioned showed him those applications for cash. I agree that this loan, if with regard to the items stocks. shures and he was satisfied after to you?-Mr. Brewer, arcepted. shall be a lien on the shares and other securities as dis-Mr. Brewer had given an assur-
WELL, TH THINGS HE'S GONNA TAKE ARE ALL IN THAT
BIG BOX-
+
Why 11 the Secrecy, fluzz?
GOSH, THERE'S A LOT OF SPACE LEFT, AIN'T THERE?
YEAH - AN' IT SEEMS A SHAME TA WASTE IT-
BIG MIRROR
SALE LOOK INTO
OS
COPTER
(Continued on Page 18.)
By Small
// GOLLY, WE WON'T WASTE 82-B2-B2- AN' ALTYA
IT! I GOT A HUNCH!
WHAT IS IT -MR, GUZZLEM?
GOTTA DO IS NAILTK' COVER
ON "TH' BOY. -- AN'.
'NOT SAY: A WORD TA.
SAM!!
· MY BEA BERYCE, EN