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seen no mortgage deeds was because I believed in correctness
of 2 balance sheets and Shekki return. I asked Mr. Brewer
about it. He said that all was correct after his explana-
tion I was satisfied. He said mortgage deeds were some in
brance offices and some were correct, 1.e. that the figure in
the balance sheet (Ex. H) was correct. He did not tell me what
mortgage deeds were in branch offices. When he told me figure
was correct I did not pursue matter further. I accepted his
statement as correct. I saw nothing but 2 balance sheets and
1 return. Item 'Collateral Security Loans' $349,630
Brewer told me that the money was lent to shareholders and
that they had signed certain forms. I saw some of these forms
H.I.B.19 (Ex.I) is one of these forms. I pointed out to Mr
Brewer that Ex.I was not collateral security. He said it was
because the Instone Banking Corporation having lent money to
shareholders on their shares had first claim on those shares.
I still objected after his explanation. He said he was a
barrister that he knew more than I and that it was legal. I
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Mr.
saw many forms similar to x.1, but no other documents in shape
of collateral security. When I did auditing I checked figures
to see if they were arithmetically correct.
Item - Stocks Shares & Other Investments $484,831.80. This
consisted of one share of about 400,000 of Instone Trading Co.
I knew nothing about this Co. Mr. Brewer told me it was an
I. & E. firm. I asked Mr. Brewer what the shares were worth,
and he said they were worth that figure. Mr. Brewer showed me
certificate of incorporation. I read it. I did not pay any
attention to date of incorporation. I found that figure on
Scrip agreed with number of shares in Instone Trading Co.
Item Customers' deposits $466,400.25. I checked this with
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2 subsidiary balance sheets and 1 return, and a ledger. I can't
find ledger (from many books shown to witness).
I can't
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