CO129-535-5 N.I. Brewer- transcript of trial and evidence 1-1-1929 - 31-12-1931 — Page 227

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dividend but not the interest on the uncalled capital

dividends were only $10,000.00.

the

You could not run to $100,000,00 in interest for uncalled capital? No, on your version, it was simply book entries.

One other item in the Profit and Loss Account "By rent, Interest, Exchange and Trust Trading"- have you the items in the printed balance sheet ? Yes.

$127,262.95 ? Yes.

In arriving at that figure you have credited yourself with interest on your loans ? Yes, of course.

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Turn to the other side the liability side, to "Interest Salaries and General Expenses" - you have not in arriving at that figure charged the interest which the company had to pay on calls in advance ? No.

In fact, you have charged interest on one side and you omitted to charge interest on another side ? Because it is interest on capital it is never put in Profit and Loss, it is put in the Appropriation of Profit and Loss it is the same as the

I

dividend.

You have treated interest and uncalled capital, $54,000.00.

say that should appear on the debit side of your Profit and Lo ss Account. Your profit is no profit at all? That is not true, because where you deduct a thing it makes no difference to the balance, whatever account it is deducted from.

OFFICIAL RECEIVER:-

That closes my examination, My Lord.

Chief Justice adjourns the case at 4.45 p.m., stating that the Court will sit on the 7th at 10.a.m. when Mr.Brewer will be given the opportunity to give further evidence if he desires).

Wednesday, 10.30 a.m., 7th August, 1929.

Official Receiver requests to be allowed to put in book of Head Office Register of Loans and Investments

(Ex. NIB 25).

put in

MR. BREWER.

I was President of the Instone Banking Corporation and occupied the position of Managing Director for approximately

two years.

During the majority of that period Mrs. In stone Brewer was Treasurer of the Company.

Throughout the whole of the period concerned there was not one cent of money misapplied or unaccounted for, there were no swollen salaries, no secret profits, no unnecessary

expense of any type, the business was run on an economic basis and can compare favourably with the running of any other business in this Colony or elsewhere.

The point I wish to make is that the management of the Company was conducted in a thoroughly honest and proper manner.

38.