CO129-535-5 N.I. Brewer- transcript of trial and evidence 1-1-1929 - 31-12-1931 — Page 135

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alloted in practice no actual hard cash is received by Co.

What is actually done is that cheques are received by Co.

It is therefore largely a matter of opinion as to what amounts

to cash. Cross entries purport to show that the Instone

Banking Corporation practice was that shareholder was deemed

to have paid so much in advmce of calls, that Co. said we

will give you the money back. Result was instead of having

a right to call, Co. had right to demand payment from each

shareholder. I do not however agree that that actually

happened.

Assuming that shareholder was a substantial person

Co. would be slightly better off.

As suming that shareholder had paid hard cash and got his share

scrip on which it was stated that so much had been paid on

allotment and so much in advance of calls, in exchange for an

agreement to repay on demand, and he had paid banknotes which

were then paid back across counter, shareholder would then have

scrip paid to the extent of endorsement on scrip, and Co. would

have agreement to pay. That would be a cash transaction. And

if Co. were to make call shareholder could say that he had paid

call. If it is law that the trane action would be a "cash"

transaction if hard cash passed, it would still be a "cash"

transaction if the formality of actually passing the cash were

omitted. I can't agree that transactions in this case are

cash transactions. All these payments were treated in books

as cash payments. Assuming transactions to be genuine they

were correctly stated in statutory report, Balance sheet

should not be a document of considerable perplexity.

require an exert to prepare a balance sheet.

some training to appreciate the finer points of a balance sheet.

An ordinary business man ahouli be able to reud a balance

sheet. It is a document which depends on other parts of itself

and on books of Co.

It does

It requires