8.
A.
11,
13
On the Statutory Report these loans are given at the figure of $761,100.00. By the time a year later, at the time of the Balance Sheet, they are reduced to $349,000.00 odd.
Yes.
BY COURT
A.
Q.
Does that mean to say that in the meantime cash payment for the difference had been received?. The books show that these loans have been paid off in some way of another.
Apparently cash payments passed through the books?. Not necessarily caali payments.
Payments to the value. Mr. Brewer's point is this, that in his Certificate which he gave in August, 1927 he sets out that he had received cash $870,000.00 œd. The firm did not receive that amount. He said the firm received documents to that cash value. In support of that statement he suggested to you that a large proportion, in fact over half, had been converted in cash value through the books during the following year. That is clear' Yes, my Lord.
A.
MR. EREWER:
A.
Q.
??
A.
A.
#>
A.
2.
A.
Since the date of that Balance Sheet further cash payments have been made on these loans, reducing them still further.
I have not investigated after April, 1928. Are you aware that in the case of YU KEE MAN, judgment was obtained to the amount outstanding for the loan?.
No, I am not the Liquidator or the Special Manager, You are not the Special Manager?. I misunderstood. No, I was appointed for only two or three weeks. Mr. Ross, would you say that these loans had been treated consistently throughout the books as if they were actually debts to the Bank?,
Yes.
Can you say that the interest payments due on these loans were duly and properly entered up in the books of the Company?,
No, I don't think I agree with the method which
have employed as regards interest.
you
asked, hab interest on these loans been regularly entered to the debit of the individual?. Interest has been charged to all these loans.
Have you found any instances where interest has not been charged”.
A..
No, I have not concerned myself with interest in investigating these books.
A.
Q.
Do you know that in the matter of bookkeeping syster interest has been a ccounted?.
Yes.
In some cases the loans have been extinguished principal end interest?.
In the books, yes.
You have no reason to believe these entries to be fictitious or felse?.
I cannot accept the Cash Book of the Company, and several other books as being a proper record of the Company's transactions, which makes it very difficult for me to answer.