CO129-535-5 N.I. Brewer- transcript of trial and evidence 1-1-1929 - 31-12-1931 — Page 4

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he made the statement.

for these reasons, the total cash actually in pogresi on of the Company in J he was $3,330.00. During the month of Ju they recived $50,crc.00 And the sum received i July was €19.38. 30 during the whole of that time there was only 59,349.38 actual cash pazeed through the hards of the bank. That is all the actual cash they received.

What happened in this case wns a most extra- ordinary procedure. At the foundation of this Commany on the 22nd o Fbruary, 1927, there was an agreem nt between Vr. Brewer and the Commany that he was to a sign to them certain richts which he then possesord of selling Bon ́s, end this amount appears i the St-tutory report na 769,39.03. we re to be sold to them and they were to have all the rights which he had and they were to receive any rofits that du to him from the ge narticuleze contracte whi power to all these Bonde.

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Soon after the ComAn was fr d it would

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inve realised that this pa ti ular agreement brought very little mon y, Bo i Wy S'nd, Mr. Bromer addressed a

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letter to the directere, in which he con i med certain verbal stater nts that the contracts were u der no circumstances worth th conside ation paid by the firm for them. (Ur. Breverås letter read). 3o t re is a r tu of $55, Co.00. As a matter f fact it was foregoing his ri ht to his $55,000.

What happened to that amount?. Tuc anuwer is n letter from Mr P. C. Leo, who was accret·ry of the Company, on the 3let ry. (Letter read) In pursuance of that, Miɛ. Brewer purported to take up *480,000.00 worth o shares.

48, CCC,00 of the 255,000.00 for the pure.ge of their own

The result of this i that 408,0^0.00 xxxxxxxx siere s- are taken up, namely, by Frs. Brewer, n up with the intenti on that ra. Erer should be guaranteed against any loss.

Havin agreed to this $48,000.00, the re s a book entry that Mrs. Brewer is advanced $432,000.00 in order that she may make the sheres fully paid up. The $48,000.00 ie 10% of the amount due on the gharea. An entry in the 3hareholders' Pepister ("xhibit U.) "Payment in advance #432,000.00 on the 28th of June." Un June the 1st there is an application ently in the bok o $24,000.00 followed by a first call, and the on the 28th of June they purported to lend Fra. Brewer 43 2, 000. 00 in order that the shares would le mave fully naid up.

The cage for the Crown is that no

auch money ever passed and that the whole thing was absolutely "ictitious no money wou ever naid. That happened?. ("xhibit "A" con- sulted and appli ention for morenel lon refered to) Peopl: having paid the 5% or 10% some paid 5% and Bom 100 is a document which ie then filled up by the man who prid. Some of hem made applications for $9,500CC and in that case there is a further promissory note for $500.00. (Case of Chen- Tat Yu referred to) He is granted $9,000.00 on the one and $500.00 on a promissory note apart from this. That is the system adopt d. The action dos n t come in for money at all. He omes in and says it wants a luan. I apply for a loan, a pronal loan, and I prop 03€ to use it in a c. rtain mann r if you grant it. A very large number of the se loane were granted, no money pissed at all. What hap en d was that on the One side of thi book is entered up a certain amount of money and on the other side is entered up the loan. No cash passed in th transaction going "hrough th cash books. It m ely appears as a cross ntry. The dat s on which they are made correspond, of course, with the dates on which the amount wne paid. Having paid 5% or 10% - Th Company's Articles state hat 10 has to be paid on an application and when 10%

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