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Lorsque le document est trop grand pour dtre reproduit en un seul clichA, il est filmA ^ partir de Tangle supArieur gauche, de gauche ^ droite, et de haut en bas, en prenant le nombre d'images nAcessaire. Les diagrammes suivants iilustrent la m^thoda. 1 2 3 4 5 6 "f^ I TTJ ^ - iK •■M S STATEMENT or THE HON. W. MULOCK, Late Rresident of the Farmers* Loan and Savings Company. Made before the Master-in-Ordinary, on 15th December, 1897. i-«ii f "' .* . r^"^. STATEMENT ni TllK HON. W. MULOCK, I.ntc IVosidi'iU oftlio I'niMirrs' Loan and Savin.i;- ('onii)any. Made before the Master-in-Ordinary, on 15th December, 1897. I At the openinii of proceeding:s Mr. Mijlock spoke as follows: I do not apiH-ar lu-iv to-day in ii>nnertioii witii the partiinilar object of the meeting-, which 1 understan '. to be the appoint- ment, or the cctnsideration of" the appoinciuent, of a permanent liquidator ; but I appear here 1;^ iny personal eipaeity tor the purpose, if you will (lermit it, of ieadi>\^ a statement to wliicl I desire to jfive the fullest publicity and to place upon reeord here. So if it is possible for any person to controvert the acc-uraey of mv statement it will be on reeord as a witness against m*-. I have been told that it is rumored that I have availed m\- self oi suppc-)sed sjiecial knowleilj^e of the aft'airs of this company to sell out mv stockholdinyfs in order to escape from liability i>n unpaid stock; that I have withdrawn deposits under my control; that I have sold property at the Junction and promoted mort- gage lc->ans by the company on such projierties with which to obtain pavment of the purchase money; that I have used my position as President to work into the companv bad loans held by some of mv relatives or clients, and, having done all these things, that I had withdrawn from the presidency as from a sinking shiji. I deem it m\ dutv as a public man, as well as my right as a private citizen, to defend my own personal honor, ancl, therefore, with vour permission, will avail myself of 'his opportunity of dealing with these personal charges. While some persons might consider an explicit denial suffi- cient, I think it better to deal with them singly and fully. In doing so I necessarily nuist bring the names and private affairs of my wife, children and relatives before the public, and however distasteful this course. I trust I shall not he misunder- s'ood in mv sole object, namely, to give the very fullest informa- tion as to the dealings of myself and family with the company. First, let me say, that the company was incorporated in 1871, Mr. George Betlume having been Manager at its inception, and continuously until now. That on the death of its President, Mr. Peleg HowJand, I was, in 1882, for the first time and with- out mv knowledge, solicitation or desire elected a director and subsecjuently President c^f the company. A HKAVY SHARKHOLOKR Allow me to deal with the first charge — that of having parted with or reduced my stock or the stock of friends or relatives, withdrawn deposits, etc. When oleclfd President I held 47 fully paid-up shares, and 171 20 per eent. shares, ami it will, I trust, be sufficient if I trace my position as a sharehokler. for, say, the last ten years, Com- nieneing', then, with the ist oi' Mav, 1887, F fnid that on that day I held 235 shares. ^5 paid-up and \y,o 20 per eent. shares, that is, shares on whieh jo per eent. was jiaid and 80 per eent. unpaid, for the unpaiil jiorlion ot whieh the holder is liable. Therefore I made the followinij further investments in the eonipanv's stock : — On the qth ot' June. 1890, I purchased for u'.vself 300 shares of 20 per cent, stoik at 110*4, •'''' face amount bein^ $15,000, on which $3,000 was paid and $12,000 unpaid, and for which I then became liable. On the 20th October, 1890, I pur- chased for myself six shares paid up. On the 5th oi' January. 1891, I purchased for myself 50 shares of 20 percent, stock at 113. On the 5th of .April, 1S92, [ bought at 126 ten fully paid-up shares for my dauj^hter Kdith, ten fully paid-up shares for my daujfhter Ethel, and ten fully jxiid-up shares for my son Cawthra. On the iQth April, 1895, 1 boujijht for myself twenty paid-up shares at 106. On the 20lh April, 1895, I bought for myself 30 paid-up shares at 105 '2, and on the 7th .May, 1895, ten paid-up shares at 104 '4. ^Iv wife was also the holder of twenty shar»,\s fuUv paid-up and four 20 per cent, shares purchased some years before. I find from the transfer books of the company that on the 20th November, 1888, I j^-ave to my dauj^hters Edith and Ethel, each two paid-up shares, and to my son Cawthra one paid-up share. i so SHARKS SOLD IN TKN VKARS Xow all these shares (bein^ 710 shares) together amount to a face value of $35,500, but having- been bought at a premium, cost me much more than that siuii. Of these 710 shares, 544 are 20 per cent, shares, and there is owing on them $21,760, and are held as follows : — By my wife — 20 shares fully j>aid and four 20 per cent, shares. By m}' daughter Edith — 12 shares fully paitl. By my daughter Ethel - 12 shares fully paid. By my son Cawthra — 11 shares fully jiaid. Bv myself — 1 1 1 shares fully paid, and 540 20 per cent, shares. I would further add that I have not sold one share in the last ten years, and am liable to-day for $21,600 on my 540 shares. .As to deposits, I beg to state that my wife and children, and myself as trustee for one of my sisters, have for years had cur- rent deposit accounts with the company, the children's moneys having been accumulating there since their childhood, those for my wife and sister being left there temporarily jiending invest- ment, and there are now the following sums on deposit with the l^ompany, namely : — ^ i SIMS ON i)i.rosir To crtdit of my diui^htcr I'.thcl $ 1,973 30 To cio(iit of my daughter Ivlilh 4° 4' To credit of my sf)ii (.'.iwlhra 1.690 20 To credit of my wife 703 07 lo credit of mysi-lf 276 33 $ 4,684 21 To <'rfdit of m\ self .111(1 co-tiustcf fur my sister. . 7.840 88 $12,52^ oq I bejf to add that in tlie years 1891 and 1892 my aunt Mrs. William Cavthra. whose business I transaeteil, purchased with niv approval, 200 paid-uj> sliares in the company, and the same still form part of her estate. I would also add that the late Joseph Cawthra was until his deatii one o( the directors o{' the company, and at his death was a shareholder ami depositor in the company, his shareholdinjj;^ consisting" ot 40 shares paid-up and 27 unpaid, and his deposit some $15,000; that I am one of his three trustees, and that his estate still has the shares in questio:i. and a deposit oi' $13,908.71. Had I ever supposed the company not sound, it would ha\e been my duty to withdraw these trust funds, otherwise I would become personally liable as such trustee. \ot onl\ hail I no such thoii.ijhts, but when my co-trustee, Mr. H. Cawthra, about May, 1894, proposed to me to invest $.25,000 tor the estate in debentures of this company, and asked my opinion, I felt no hesitation in saying- that I regarded it as a good investment, and according^ly. on the ist o\ ^lay, 1894, we purchased and still hold $25,000 oi the company's debentures. .As to whether, therefore, there is any truth in the charge that I had been reducing- my interest and those of my relatives in the company, tuay be judged of from the fact that my wife and children and myself are shareholders to the extent of $35,500 00 That the company holds to-day deposits for my wife and children and myself to the extiMit of. . 4.684 21 S40.184 21 That the estate of my unit. Mrs. tawthra- Murray, hoids in jiaid-uii shares $10,000 00 That as trustee I am also interested in deposits amountmg to $ 7,840 88 13,908 71 a 1. 741; 5Q .And in debentures amounting to 25,000 00 .And in 67 shares of stock of the late Jus. Cawthra . . 3,350 cc Thus our interest in the company to-day amounts to $ 1 00, 283 80 AS i\> M Ni HON I'uoi'i:k i \ An to tlu' lu'xt chaiyi', tlial I hail sold piDpiTty h( Toronto Junction, and was paid tluouj^h loans by the i-oinpanv on sin-h properties, I \v»>iild s.iy tliat tlie only pri>perly at the Jinulion in whieii I ever had an interest was a bloek of some 30 aires oJ land near the station, my interest therein beinjf an nnilivided one-sixth. This property was divided into lots siMne vears a^o and a number ot lots solil, Mr. Thomas havin^^ sole eharj^t for all concerned of the sales, keepiny- ai coimts, receiving' and dividing; jnirchase money, etc., so th.it I never knew the soune from which any purchase nu>ney came, ami therefore it would not h.'ive surprised me if in the onlinary course of business some purchasers had borrowed money trom the coinpanv. Vesterdav I inquired of Mr. Thomas, and he ass.ired me that in no case had he rcieivi-d payment o\' any pun-hase monev from the com- pany. However, to make sure, I sent a clerk to the registrv office to ascertain if the company had ever had a mortjfaxe on any of the lots in i|uestion, and he reports onlv one such, namelv, on lot ,3 Keele street. soKi by the estate for S432, my total share in this purchase money beinjf one-sixth, or S7,?, I turneu up the minute book of the board and find that the loan in question was passed at a board meetinj^- on i(Sih April. 1889, at which I was not present. The whole amount of my interest in the lot, $72. is too insijjfnificant to justitV me in further dwelling upon the transaction. 1 INI-OADKn NO HAD l.iVWS As to the next charj;-e, that I have unloaded bad loans or my fartiily upon the company, I j^ive the uiost absoli:te and unqualified denial thereto. I am not aware of any loan held bv any relative of mine having ever been paid off bv the comjianv. Certainly I never passed or approved of or sug-gested the com- pany's making any loan for any such purpose, and, remembering the strict view that I have always maintained in regard to such matters, I caii only say that if any application for a loan were to come before nie as a director, and I were to know that the desti- nation of the money was to some relative of mine, that fact Wviuld have determined me absolutely .ig-ai'ist the loan. f RKASONS KOR WH HDR WVAL The last chargfe that I have heard is that I resigned the Presidency as one leaves a sinking- ship. f resig-ned the Presi- dency for one reason, and one reason only. I had become a member of the Dominion Government, and did not think it proper to be on the directorate of a company which derived its "^ 7 rluirtt'i from 'Am- I")i>minion I'arli.iinfiit, .iii ' whn aiiUMiuble ti> l^omiuion U'^islaiii>n. For I ho sanu' roasoii I also rosi^iuul ni\ seat on tho board of anothor ooin|»aiiy. 1 do not n'tiu'inln'r tlu- precise date of my resi>fiiiii);, but my recollection is that the idea came to me a few months after jo'.ninjf the (.lovernment, thron^jh an article published in or copied from Tin Furitut's Sim, referring' to the Knijiish oract"ce. f Il\n lONHDI Nl r IN IHK ».\VMr.\NN In conclusion I be^ ii^ siali' mat until tl..- tMul of October last i had ni>t. and I feel satisfied tiial ;io member ol the board had, the faintest idea that the company was on otiier than a pei- fectly sound financial b.-tsis, and I fully b<>lit>ved. as I feel assured th- i>ther directors did, in the absolute correctness of the representations made by the Manaj^'ing- Director, >vhich from time to time fountl exi>iession in the company's annual reports, I ^reatlv deplore the loss th.it is likely to accrue to those interested in the company, and whilst the fact that I am the lar>j;-est loser is no ii>nsol;ition to others, I trust that it will at least be reg^arded as proof o\' my faith in the financial sound- ness of the company. \V. Ml lAH K. Toronto, Dec. 14, 1^97.