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$7000.00 of that was paid in cash, that formed part of the consideration due in respect of agreement A which was being held by Mrs Brewer ? That is correct.
And that $48,000.00 was used by her to pay the allotment and first call on the 4800 shares held by her ? That is correct.
So Mrs Brewer was a trustee for these shares ? She must be regarded as a trustee she has no beneficial interest.
These arrangements were made in April, 1927 ? Yes.
This answer if made ( which I doubt ) is unsound. See date of letters previously read. Earliest is dated 28th May, 1927
(page 27 para 14 ).
On the 12th May, 1927, a directors meeting was held - the following resolution was passed "That the shares Nos I - 4800 remain unallotted at present and held in reserve for Mr Instone Brewer or his nominee and shall be allotted to him if and when he make application for same." Why were these shares held in reserve for you or your nominee ? That was just when this point was being decided. Because I was going to take them if I got the whole consideration money and if I did not keep the whole consideration money, I was not.
Were these shares allotted to Mrs Brewer ? were allotted to Mrs Brewer.
Afterwards they
And this reservation of shares was in fact in part payment of the consideration money in Agreement A ? Until it was known how much consideration money I was in fact receiving, I was unable to say how many shares I was prepared to purchase - therefore these particular shares were held up in the allotment until the question of a refund of consideration money had been settled one way or the other.
Mrs Brewer paid the allotment on first call - $48,000.00 was part of the consideration money in that agreement? Yes.
It was not paid in cash in my sense of the word ? No.
that
On June 28th, 1927, according to your Loan Register, a loan of $432,000.00 was made to Mrs Brewer ? I know it to be true.
Why was that loan made ? In order to fully pay the shares.
If you
Why did you want to fully pay the shares at that time?
read the letter, you will see these shares were to be sold fully paid to the Peking buyers.
By a book entry of a loan to Mrs Brewer, they became fully paid? The process was identical to what had been done with the other clients. You see it is quite clearly set out in that letter, what is to be done.
The Peking people never did take up the greater portion of their shares. 4500 out of 4800 shares remained on Mrs Brewer's hands and those 4500 were the shares of the Instone Banking Corporation which she sold to the Instone Trading Co. ? Correct.
The arrangement with the Instone Trading became necessary because the arrangement with the Peking people did not go forward, and you wanted to get rid of these shares somehow, and so you trans- ferred them to the Instone Trading? That is a reasonable statement.
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