CO129-535-5 N.I. Brewer- transcript of trial and evidence 1-1-1929 - 31-12-1931 — Page 200

any of them god.

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Then 1 won't bother about them any more ? I did not consider any of them good that is why I transferred them to Application for Shares A/c.

Therefore, not considering any of them good and having transferred then to an Allotment Suspense A/c do you think they should have properly appeared in the balance sheet ?

No, but I cannot maintain there was a lie there, and I was given this balance sheet as something already finished.

You agree that to state your Shares Capital in this way under these circumstances was misleading ? It was not misleading for the reasons given that it was circulated among Chinese, and they made their balance sheets in this manner. It would have misled me.

Would it mislead any business man ↑ All I can say is that it would have misled me, I cannot say what it would have done to any other business man. It would have misled me that is why I did not like it.

Judge:- Deducting that $1,133,000.00 where is the surplus ? "The item of $1,133,000.00 has no effect on the surplus which latter is obtained from earnings. The effect of

inserting this amount as a liability has been to increase the assets correspondingly, in the two items "Accounts Receivable" and "Uncalled Capital". This increase of assets and liabilities by an equal amount is the sole d difference between the Balance Sheet as approved by me and the Belance Sheet as printed.

The item on the Asset Side "Accounts Receivable" $221,360.87 ? Yes.

Does $204,800.00 represent calls in arrear ? I cannot take your figures off hand like that but I consider it quite

possible. Because I know that account contains matter that I would never have allowed to appear in that form.

The first two items of- balance sheet NIB 9 - do you agree ? Yes.

You agree that $204,800.00 out of $221,360.87 represented allotment on calls in arrears ? On this balance sheet "sundry debtors" is only $15,000 all the reat must be on calls.

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after you have considered

Do you agree with my question these documents that out of that amount "Accounts

Receivable", $204,800. represents allotment on calls in arrear 7 I do not know what that amount represents at all.

I did not put it there. The figure that ought to be there 1s $15,000 or $16,000.00. If you tell me the rest is unpaid calls, I believe you.

You do not know what it is ? I don't know what it is. I believe you to be correct, but I cannot say for sure.

You say you, as President, of the Company, were content to file a balance not knowing anything about that? The point

is that I filed this balance sheet because of the publication that had been done before I filed. There was no further publication. I filed it in compliance with the Ordinance.

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