At yesterday's sitting, M. Andre Berthelot and M. Pernotte were questioned about the 1919 balance sheet, which, according to the prosecution, was deliberately "faked." They were asked why they made no provision for taxation on war time profits. M. Berthelot replied that the Act of 1916, which instituted tha prize ciple of taxing these profite, specified that the tax should apply to profite, made in France, exceeding those of pre-war years whereas the Bank's operations were carried out almost entirely in the Far East. He also said that the Bank made no declaration of war profits, for the simple reason that its profits before than those afterwards. - He added the) war were considerably larger
that he had explained al) this to the head of the. Inland Revenue Department, who agreed that the bank was not liable, and he ask-pertinently: Why should I make provision in the balance sheet for taxes which it was admitted. 1 Was not liable to. pay,
Text read from the printed page and cleaned; old type leaves the occasional error.