CO129-535-5 N.I. Brewer- transcript of trial and evidence 1-1-1929 - 31-12-1931 — Page 66

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to me to be the history of this $100,800.00 and it is for you to say if you find $100,800.00 the correct amount. That deals with the paid up pertion of these shares at $10.00 per share and it would appear, strictly speaking, as money. As regards $68,000.00 it was a transfer of this book ́entry and so on.

Now Gentlemen, further as to the $10.00 section of the shares. You have before you certain promissory notes, you don't know the exact amount. It would appear that in æspect of these payments of $10.00, the Pank re- ceived from certain Directors promissory notes in lieg of actual money. So much for the fact as regards the issue of $10.00 in respect of the shares. As to the balance, the shares were partly paid up and the Directors had the right to make calls on the shares for the balance at their discretion.

The Directors purported to receive money from the shareholders paid in advance of calls. They have cretified here that this money reached their hands in cash, and the question is whether it did so reach their hands or did not. what happened was that the share- holders filled up certain forms that they obtained from the bank loans of amounts identical with the amounts they were due to pay in respect of xxxxxaki their calls. They pledged their shares as security in payment of these loans. They undertook to pay interest on these loans at the same rate as they were entitled to pay in respect of the calls payable in advance. well Gentlemen, no coin in these transactions, no money, reached the Bank. The Bank accepted these documents and classified these do cu- ments as cash and certified here "Calls paid in advance $775,950.00", that was given entirely on the basis of those documents received. These documents fell under two classes - one series written by different Directors and shareholders, we do not know who they were. Brewer at least thought the Directors were justified in giving full value to them the other is a paper signed on the same form by mrs. Brewer. The Directors of the Company backed her, Mr. Brewer has stated they did so, well knowing that ars. Brewer was not able to put down the amount she had promised to pay ♦ 1432,000.00.

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well Gentlemen, I have given you now a state- ment of the actual amounts which reached the Bank in res- pect of their share Capital, and the question is whether with these facts in your minds you are prepared to accept this statement in the statutory report as a true statement. ar. Brewer accepts full responsibility for these figures. When asked whether he would say that the Company received #876,000.00 odd in cash in respect of shares, his answer was "Yes", and he expects, asks you to say he is right.

Well Gentlemen, to illustrate the position, I have been reminded of an old story of nians Anderson about an Empror who wanted a new cloak and certain weay- ero came into the market-place and offered to make him a wonderful coat. He made the weavers set up their looms and they purported to be making him the coat, and they said if anybody cannot see this coat, they are not fit for office. The result was that all confessed to Bee the coat being made. Ultimately the Emperor went abroad in a procession wearing the supposed coat, and the crowd looked on and said what a fine coat it was, until at last a small child said that the Emperor had not got anything on.

I do not wish to suggest that there is any