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promissory notes and by means of these Receipts ? A very considerable portion of that cash was issued to shareholders.
I put it to you that with regard to "Particulars of Payments, Investments, Loans and Deposits $793,730.00" in your
statutory report, the banking company could no more have lent $793.730.00 that I could ? But they did it.
I put it to you that both these items in the Statutory Report were false and misleading? I say they were perfectly true and to put any other words to describe them would not be correct.
Why did you not utilize the ordinary machinery of the Company's Ordinance for collecting your share Capital ? Because we did not want to have too much money we thought we were going to get $2,800,000.00 loaded on us, and I got cold feet.
wise after the event.
We are
I suggest to you that the reason was that you found that Subscribed Capital was not coming in as it should have come in, you only received $27,000.00 up to the end of May. You then decided that this procedure would not do, and on the 10th June you started issuing this enormous series of loans ? The reason why the 10th June was chosen was because that was the date on which we were ready to issue the share certificates.
You don't suggest that $27,000.00 is a very large subscription of share capital ? We got applications for 2 millions.
Applications but no money? We had every reason to believe it
was coming.
Whether it was coming or not coming it did not come in, and on that day you had $27,000 on the 21st May ? No.
In response to subscription for shares $27,000.00 was very
in significant ? We had written accepting them - we are bound to take their money.
You expected it in June, you went on expecting it in July? Peking is a long way away.
You gave up expecting it when Mrs. Jan See Chin did not pay any money? I gave up expecting some of it in November, 1927.
Five months before the publication of your balance sheet ? I readjusted my ideas entirely. I was willing then to take money and not try to get rid of it.
Yes.
You were talking about your Profit and Lo ss and paying dividends. $35,000 was the increase in value of your premises ?
Quite correct.
And $10,000.00 was the unrealised profit made in connection with the transaction with the Instone Limited ? I think a debt is a realised profit otherwise it is correct.
With regard to the dividend of 10% you never paid it ? According to your version of cash, we never paid anything.
What you did was to credit the amount of the dividends to the Shareholders Loan Account as regards interest? That is right
As a matter of fact if it had been a question of paying out a Cash dividend you could not do it ? We could have paid the
37.