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month of June not in bank notes nor in coin in Promissory Notes ? Ultimately. The intention of the parties has to be considered. They intended to pay us
cash, and we intended to lend them cash.
Judge:- As a matter of fact, when you purported to make these advances of over $600,000.00 · out of what did you make these advances ? Out of payments by shareholders.
In what form did they pay ? They paid by They would have paid in cash if I had been willing to accept. They paid all their calls in bank notes.
Judge:- The expectation of their paying up what they under took to pay is what you call cash? No, My Lord. They came in prepared to pay bank notes.
money.
$600,000.00 worth of bank notes ? I don't know. The first ones to come in came in to hand me the full amount of
their shares. There was $2,800,000.00 worth of shares out. I did not want to receive that amount of money with inexperienced bank officers. I said I would only accept money in advance of call if the man making it would take out a loan upon which I could call in 24 hours.
Judge:- How did they pay. They had come along and said "I want to pay this money" ? I gave them a cash receipt, and there and then made a loan.
Included in this 6 lakhs was there a loan of $432,000.00 advanced to Mrs.Brewer ? There was, but as you are aware there is a full explanation of that.
I would be glad to hear it that was not paid in Cash ? No.
It was included in your cash book ? It followed the custom of the bank.
That was advanced on no security ? She was trustee of those shares and advance of call and took out e loen
On her having paid.
she paid her money in in respect of that.
You seriously say Mrs. Brewer paid $48,000 to the bank ? Not in bank notes - she paid it in exactly the same way as was laid down. There is a long story leading up to it which I will give if you desire.
I put it to you during the month of June you received no actual cash when you lent 6 lakhs you received actual cash for shares $16,400.00. I will take that to represent the amount of bank notes received, and the rest was proceeds of there loans made by the company? Bot the proceeds.
I put it to you that nothing was ever received by any of the shareholders except a promissory note ? If nothing
was received by the Company, we could not pay anything out.
that was
The Company made loans against Promissory Notes the beginning and end of the transaction? I disagree.
In the month of July, 1927, you granted further loans to your shareholders to the extent of $142,000.00 ? Very likely, I think it is probable.
Would you like to look at any book ? If you wish me to make it definite.
(Journal handed
...
I would like to have it clear please ? to witness) Loan in July amounting to $142,000
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