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Fixed deposits $103,650.00 that included the $70,000.00 in respect of the shekki property ? Yes.
Judge:- That represents money?
O.R:-
The point I was suggesting was that no money had been deposited. It was a payment for property.
There was
Judge: He got that from the bank and deposited it. no need for the money to pass it does not represent money's worth. It is on a different footing to the loans to share- holders.
You had in Savings Bank - $12,294.33 ? I take your word for
it.
www
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My Lord, it is included in the $466,400,25 deposits. You had not a very large current accounts, not a very large Savings
account you had these deposits what banking business were you carrying on at that time. You say you had a substantial business - what was it ? Bonds. Two bonds a day would have paid all our expenses. Trustee business which was not large but was developing. We had our branches in Shekki within a couple of months we put out $100,000.00 worth of notes on the market. We were doing quite a large volume of business. Canton
was on the point of opening.
At the time of the balance sheet how long had Shekki been opened ? 20th March.
Just over a month? Yes, and if you look at the balance sheet you can see the volume of business we were doing.
You agree your volume of business in Hongkong - your business was negligible? In hongkong we never intended to do a large
volume of what you call banking business.
What did you want ? We wanted our honds and trustee business. That was the only thing I wanted from its inception.
N
Judge:- By bonds do you mean these bonds the same as I have here? Yes.
Judge:- How many were issued did I understand you to say one only? No, My Lord - thousands.
What I am putting to you is that this balance sheet is a balance sheet which might be published by a banking company doing an extraordinary successful and large business- that is the only conclusion any one of ordinary intelligence could arrive at by looking at this balance sheet. They would say this company is sound financially, possesses good assets and is doing a large amount of banking business? All of which is true.
There has been no difficulty about the share capital which has been subscribed to the extent of $2,600,000.00 whereas that was not the case ? That was the case.
Half the shares
133,000 had been transferred to Allotment Suspense Account because in November, 1927, you were doubtful about them ? Quite true I have already explained to you, I
was not responsible for this balance sheet.
35.