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

29.

31

A.

3,000 had already been taken up - The Instone Trading Company purchased these shares for cash $450,000.00 par value. $45,000.00 being 10 of this 450,000.00 was used for the purchase of Instone Trading shares, which she still holds as trustee for the Company.

The Shares in the Instone Trading Company are held in lars. Brewer's name at present?.

Yes, the Instone Trading Shares are held by Mrs. Brewer as trustee for 45,000.00. As to the 90, the $415,000. 00 these are held by the Instone Bank. Lira. Brewer re- ceived $450,000.00, $45,000.00 or 10 she pays to the Instone Trading Company and receives shares, the remain- ing xxxxxxkxxxkaXox 90%, $415,000.00 she utilises to pay off the loan contracted on the shares, the amount out -standing on the loan she has contracted, inorder to make the shares fully paid. The shares are delivered to the Instone rad ing Company as fully paid. The Instone Trading have purchased Mrs. Brewer's shares in this way, the Instone Bank purchases $415,000.00 of Instone Trading Shares, making, including those held in trust, 460,000. 00 altogether. So that the net result of these transac- tions is that no money passed. The Instone Trading has paid “rs. Brewer 450,000.00, Lurs. Brewer pays to the Instone Trading 45,000.00. The Instone Bank passed to the Instone frading 415,000.00, no money passes. the result has been achieved that the onerous trusteeship has been removed. The debt has been paid off and the primary reason for the whole transaction has been effect- ed, that is, the Instone Bank is in possession of a contr olling interest in the Instone Trading Company. The Instone Trading Company's shares were of real value to thenstone Pank, as is evident by the fact that there is in existence at the time of our first trouble in

hekki, a book in which applications for shares in the Instone Trading were kept. In Shekki applications for shares exceeded 60,000.00 for Instone Trading Shares and would have been considerably higher had I not, with the concurrence of the Directors insisted and published in the local Shekki papers that no shares would be granted to an individual in excess of 2,000.

But

The prospects of the Instone Trading Company as far as Shekki was concerned, and the importance of our Shekki branch, can hardly be realised. At April the 28t the Instone Bank was issuing banknotes in Shekki, and could not issue them fast enough to meet the demand. Th market was taking up $20,000.00 worth of ndtes every week The merchants in Shekki were almost united in the inten- tion to support our Trading Company and we were the only foreign company of any size in Shekki. We had the big- gest building and our name was a family word, although we had only been established a few months. Prospects in Shekki were excellent, even in Hong Kong that was to some extent realised, because before the hekki branch closed down, the Instone Trading Company was asked by mesars. Lane, Crawfords, through the person of their secretary, Mr. Jordain, tọ arrange to take the agency of the Dådge Cars in Shekki. To say at this junction that the shares of the instone Trading Company are valueless is certainly to be wise after the event, although none would have ad- mitted them so at the time these transactions took place.

The necessity for the indemnity given by the Directors, no longer existed and the letter of indemnity was returned. As to where it is at present I cannot give any information.