Continuing witness suid that Mr. J. Eichwald succeeded Mr. Wootten managing director, in November, 1924 and continued' "until April 1925. During the first part of that year the C. 0, G, mad' money, but Subsequently lost again with the result that the-not working of the year was a loss, the principal Teasons being the military disturb ances and the May 80 incident both of which made it diffeult to sell bonds to the Chinese amongst whom the greater part of the busi ness was done.
Tu 1926 the company continued to lose money, the military disturbances being' even worse, have spread to the Yangtze Vatley"which to that time hnd been a very good field. The latest balance Sheet which witness received was for October 31, 1926, Mr, Sturrock. was correct when he stated that the Books on that date showed a less of $184,000, After Mr: Bichwiald loft the com pany, Mr. Wootten resumed the managership for the balance of the year and was succeeded by M. Richst as managing director_and he continued up until 1927, in Tanuary of which year he resigned, Mr, Litchfield had been engaged as {general sales manager in the ently Part of 1926 and later becaite general manager When he received the balance sheet of October '31, 1926,-he. saw: that the whole of the capital of the company had been lost and $84,000 in addition, and after considering. what was to be done tHe group Which "the witness represented decided that they would sell their shares if a buyer came forward for them.
It was through Mr. Patstone that witness first heard of a, proposal that the shares should be ought, Mr. Patstono reported that Mr. Mack had Chinese clients who were interested in buying the shares. Eventually sometime in January meeting was held between wit ness and the Chinese clients of Mr. Back, What were to be the terms of agle?—That the buyers were up $200,000 which would be put into the treasury of the C..0, Cand that the 858 Realty Syndicate shares were to be returned by the
Text read from the printed page and cleaned; old type leaves the occasional error.