221
The effect being an asset in your balance sheet for $415,000.00 that was the net result of the whole of this business that is the origin and history of it? That was the origin and history of it, but it was not done with the intention of putting it in as it is there.
*
Did the auditor ask you questions about your stocks, shares and investments ? Surely.
Did he know the Trading Company had never done any business? Yes, he asked me what was the value, and I said this company owns so many shares in the Instone Bank, and he worked it out.
There was no market? Yes, I was buying.
You were the market ? There was a syndicate it was not my to money paying for it. They were very anxious to corner - get the majority of the shares in the directors hands, and in consequence were willing to buy sufficient shares to do so.
Judge: Do I understand you were President of this syndicate ? To the extent that I sent out brokers to obtain any Instone shares up to $97.
Judge: You obtained none ? I obtained 100 only.
•
Judge: You used the word "corner" ? We wanted to get a work- ing majority of directors. This was just before the general meeting when we were electing new directors.
From this balance sheet, an ordinary business man reading this would form the opinion I take it, that the Company on the 30th April had good assets to the extent of over I million dollars. That is what the balance sheet means? No doubt. I do not know what a Chinese business man would think.
I am not talking about a Chinese man- this is an English firm? Yes, but all our customers are Chinese that is a materiai point.
*
Most of the Chinese would not be able to read it possibly.
I put it to you that that statement was entirely false and mis- leading? The whole of the headings "Loens, Mortgages and Investments," is entirely misleading? I think that paragraph is perfectly accurate with the exception of $260,000.00 which is a mistake. It was overlooked.
-
You think your loans to shareholders on Promissory Notes and Receipts were perfectly good assets no provision made for bad debts, and your investment in the Instone Trading Co. could be realised at any time? I consider my loans to share- holders were perfectly good assets, and there would he no bad debts. I consider that the Instone Trading shares were fully worth their money because they possessed assets more than the amount which they were stated to represent in our books.
Judge:- The assets depending upon the Instone Banking Corpor- ation shares ? Which had a market value.
The bank premises Hongkong and Shekki- less $16,417.00 written off for depreciation $353,232.89 - bank premises appear in your balance sheet as a perfectly free asset that is to say not encumbered ? On the contrary - mortgage appears on the other side.
30
No comments yet.
Private notes are available after approval.