CO129-535-5 N.I. Brewer- transcript of trial and evidence 1-1-1929 - 31-12-1931 — Page 212

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Yes, that is right.

During the month of July I put it to you, you actually received no money or cash or what you prefer to call it, $5,250 - do you agree ? No.

And that the rest of the cash which purported to have been received was in connection with these Promissory Notes and Receipt transactions ? You can easily divide it - where you have allotment, it is Cash- where you have advance call

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This is your Application Allotment book. There is a short entry for July Ex,NIB 18. The Application Allotment book during the month of July - there is $5,250.00, I put it to you that actual cash received by you in July was $5250.00 ?

That is not true.

You received $12,000.00 in cash ? In bank notes, and $135,000.00 more in cash.

The $135,000.00 which purports to have been received in cash was the product of your loan transactions, with your own

shareholders ? The loans were the produce of this cash.

The result of these lom transactions with your shareholders did not alter in any respect the amount of cash held by your

company? Yes.

? Yes,

It may have altered your books but not the psoition decidedly. Before these payments and loans were made we had no claim against our shareholders, for anything more than the money called up. But so soon as they had paid their calls in advance and paid their money, we could demand them to pay at any date – therefore the cash position is altered, because we

can command the money. When the loans were made we could command the money but before the loans were made we had no right to demand it. We would have to make calls and go to a lot of trouble.

You actually purport to have advanced in loans to your shareholders a total of approximately 7 lakhs ? I think that is right.

And that appearing in one form or another is a perfectly good asset in your balance sheet ? It must be about $400,000.00

There was $432,000.00 for Mrs. Brewer which I w ill deal with later I say 71⁄2 lakhs appeared as perfectly good assets in one form or another, in the balance sheet ? They do, because they

are.

Without any qualification or any comment or provision for doubtful debts ? There was no need for such.

There is outstanding on these Promissory Notes and Receipts at the present time something in the neighbourhood of 4 lakhs ? Still outstanding ?

Yes ? I should think that to be likely.

If you regard them as good debts why did you not collect them ? Because I did not wish to collect them at any time before the closing of our branches, and after the closing of our branches we could not collect any. I collected a little.

An absolutely insignificant amount ? Yes, and it made me enemies.

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