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takes place the compatty has a right to demand the 79,000.00 or any part of iv.
The Capital
now lying at the disposed of the Company is not 10% but 100%.
It genot be said that these transactions are fiotitious
It is true Capital
Liabi- 11ty indz sases 100 per cent, so has the value of the ahaan and the right to sell the security is far more valuable an asest that the right of forfeiture which extinguished uncalled capital. Then the Bank's right to payment on demand is a much more valuable assot that the right in the form of a call. The atzongent point of all 18 the knowledge that cash is ready payable on demand ---
Now you heard yesterday the evidence of mr. Udy, Accountant, Associate of the Pederated Institute of Accountants of Australia, Associate of the Secretaries Association of England, etc. He is a man of stand- ing, men whose reputation must be honoured.
I say Mr. Udy was sent from Heaven to prevent an innocent man from suffering. I am not saying that in a loose or cynical feahion, I mean it. when a person has been and is up against things as i am recently, he gan may things like that and mean them. I say Mr. Udy was sent from Heaven probably to prevent a mis- carriage of justice.
When & man of such standing and reputation will @ sc for ar to say that if he had been in my position, that he would have done the same as regards the Statutory Report, had he bem in my place. He said that asuming persons who signed the promissory note? were of mature nge, sapable of antering into a contract, thay mere properly treated. Since their signatures mere on the documents, something took place. The fans that it is a cash tansaction applied equally. Once the transaction took place it was cash, and he would not allow it to be altered. I would include all the amounts of these shares, both the 10% and the 90%. If he believed that he would have done what I did, can I be held to be deliberately dishonestly wong in doing what an expert says he would have done himself in my plate?. You have bad the masons why the transactions were put through the booke in this manner. (Public Examination Notes page 39 read). What was the explanation. LAT Ross has assured you that there is nothing in the books of the bank inconsistent to the explanation given. fír. Ross has stated that if these transaç- tions are genuine, then the Statutory Report is corr act. 1 assure you that these transactions are correct end genuine. In the whole of the forty-six pages of this Public Examination I have been entirely consistent. As a Trustee wank we did not require a large capital but since it was the plan of the Directors to go into baking proper, they were quite justified in wanting a large capital. The Articles of association bear that out. what the directorS wished to have, was a big bank with large capital, and an experienced maneger in charge and me in charge of the trusta and bonde,
By my plan the Company held a small capital but they had the right to demand a much larger, should they desire. I did everything I could to place the business where they would find the least possible impediment.
(Referring to the Statutory Report). These items were not put in to impress the public that we had
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