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Judge:- That may be I will explain how the
EX.NIB 15 The Journal. Cash book page 81 of the Journal. Coming to your cash book the total amount of cash received for shares up to the 31st May, 1927, was $27,000.00
do you agree? I should not think so, up to May 30th ..$37,000.00
(Argument about $10,000.00 received from promoters).
but how about the public's advantage ? general public is advantaged.
There was $500.00 from a Mr.Starling? That was actual cash.
Actual amount of cash received by the company by 31st May was $37,000.00 ? Correct.
That was before you granted any loans ?
Yes.
The first loan according to your records was granted on June 10th ? Yes.
The balance of cash which the Company had in hand according to this cash book at the end of May was $9,330.00 do you agree? Yes.
According to your cash book you received no cash that month with the exception of $800 from a man called Leo Ping Chun, until the 29th "Compradore part salary $5000.00 was that
Cash ? Actual bank notes.
You then received some $11,000.00 odd from bond holders
You then received further compradore security ? What was that ? Bank notes, as far as I can remember.
Do you mean this man put up actually $45,000.00 in cash? $50,000 altogether.
That is what he did ? That is what I believe.
Do you swear that you are on oath you know ? I know I am on oath as far as I can remember, it is actual cash.
And then the next item in your Cash book is "Allotment and First Call $62,500 - advance calls $640,000.00" ? Yes.
That is about 7 lakhs. Now a very great proportion - almo st the whole of that amount which is down in your cash book as Cash was in fact the result of loans made by the company to shareholders on Promissory Notes and Allotment Receipts ? I can specify it more accurately. The allotment and first call would have been paid in bank notes. The advance on calls would have been payable in cash, but returned to the payee under the system that I have devised for the benefit of the bank.
At the beginning of June you had cash in hand $9,330.08 ? Yes, if the book says 80.
During the month of June ypu purported to make loans amounting to $619,000.00 ?
Right.
I put it to you that you had not in June any money to make these loans ? If I had not the money, I could not make the loans.
Had you the money in hand or not ? I say that the money came into my hands, and went out again.
It came in what form you say you collected $619,000.00 in the
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