17.
19
21st January, 1930. 10.30 am..
MR. SYDNEY HAMPDEN ROSS recalled and re-examined by Court.
23 23
A.
A.
As
JINIJ
A.
$
??
In your evidence yesterday we dealt with the large sum of $761,100.00, and that sume was in June, 1927 ahown to be owing to the Instone Banking Corporation on a series of Promissory Notes, and between 1927 and 1928 that sum was reduced from 761,100.00 to $349, 630.00. Subsequent to the Balance Sheet of April, 1928, was that indebtedness still further reduced?. In the books it was.
when the books reached your hands what did that figure stand at?.
$355,000.00 which is a alight increase on the $349, 630.00.
The point is, there is this figure of $761,100.00 these are promissory notes given in respect of calls on these shares. By April, 1928 the figure was reduced to $349,630.00.
Yes.
was that indebtedness reduced subsequent to the Apr 11 irak Balance Sheet?.
It was not reduced.
When you took over the books that figure still stood at 349,630.00?.
There were all kinds of adjustments in ghich I have not gone.
Dividends applied against loans which
would increase a loan in one case.
I understand interest and dividend cancelled out.
Interest may have been cancelled out.
This figure was reduced in part by dividend?. what did the figue stand at?.
$355,000.00.
How did the gigure
I do not know how it could possibly have increased, because the interest due on the loan should corres pond to a certain payment made to the contributor of the bank, 8% each way. manage to increase?. The explanation is this. At the 30th April, 1928 the amounts shewn in the Balance Sheet did not in- clude the interest due, but they had probably shewn the interest due under a different heading. At the date of the Balance Sheet the figure of 349,630.00 did not include interest due on the loans, the inter est due was shewn under another heading, but when the Company went into liquidation, the amounts on the books then included the interest. which would account for my figures being slightly higher. The result with regard to the 761,100.00 is that $405,000.00 reduction is due to the matter as you have explained, so that there was practically no cash reduction for the liability at all. That is, practically none?.
Practically none.
You can take the Certificate which is the subject matter of this. (Statutory Report consulted.) You have examined the books and you have read the Certificate. The Certificate which says the total number of shares allotted is 10,000 all of which is