His Lordship:
Mr. Brever !
26.
28
close, all documents issued by the Company throughout the whole of the two-and-a-half years, have treated these itans an cash. I have always believed that these were treated properly as cash. The loans which wer e made for this cagh were always treated as true and propar lawna which we could demand, As a matter of fact, payments were from time to time made on part of these lowla. Interest was regularly charged on all the loans, It has been suggested by a previous witness that the charge of interest on these loana was washed out, but that in fact was not 80. It is true that the interest rate payable on uncalled capital paid in advano and the storest rate charged by the Company on the loans made, are identical, but the same are not identical This is how interest charges are continuous through our Belance Sheet. (Mr. Brewer then referred to hibit CC - Interest Ledger). The Interest transactions were kept in a special Interest Ledger and the book is quite ol ear.
The people who took loans were people of mat- ure age wo had a right to contract, and in whose abili ty to pay these luane I had full ballef It has been suggested that as for as being able to meet these loans, they were only in uses, able to pay 5 and not even 10% May I point out for example the case of Mr. Yeung Tat Po as a man of considmable property there was no question that he was not in a position to pay his full 100% on his sharo3. Since the Liquidation started Mr. Agassiz has seon fit to bring an x action against him and against his proparty, There was no question thatthis man was not in an entire position to pay his 100% and that a promise to pay from him, to pay in full on demand was a very valuable asset,
(hir. Brewer then raf erred to the Shareholders' Register Exhibit U and the Loan Razistar, Exhibit R. He follow5- ed through the transactions of one Yu Kea Man.)
He was a Director, Other shareholdere paid their 10% and took out their loans on even date, in this case it was not done.
On August the 23rd this payment of $5000.00 was paid in banknotes to the Company. He thus reduces his loan from $9,000.00 to $4,000.00, so after that date he re- ceives interest. This interest was applied to further reduce nie loɛn, so that on the date of the closing of the Bank on May, 1st 1929 his loan has bem reduced to $3,02.00.
for Loens
to
S
These do cumats, the Letters of Application
Promissory Notes as they have boen r ef arr ed wore treated by us as valuable documaits and were kept in the safe depository vaults. it was impossible for any one person to get at them alone, two keys war e necessary and these were kept in the custody of two separate persone. Up to the time when they were handed over to the Official Receivor they were always kept in this way
and were very carefully (uarded to see that none were missing. «e did not regard thèse as ficti✨- ious documents of no value. The Instone Bank is named after me and these transactions were entered into short- ly after the bank being opened. It was not the inten- tion of the Instone Bank to be anything be a perfectly sound fär.
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