Mr. Brown, "upon further crouse Sxsminaton' regard thi di fusion with Mr. Driscoll' regarding the Bstey report, witness-stated that
side. specially engaged." lawyers the Finance Corporation hod the Menara rise, Eidos "and Price, dnd ho discussed with' all" of them the mates of the propriety of ihe way "in ally paldeup shares Were handled. "I discussed it with Driscoll and his opinion was the some fas what Price hed stated, that our method was correct and. legal, F am tre that Driseall approved Didn't you think Ie rather strange, then, Ulat Mr, Driscoll show Insist Upon 'Benjamin's shares' being Dut Into stfeckeeping tile had trust Felations between Benjamin and. the id|Raven Trust Company, but with us was a trading account and handled as such. Although the three lawyers we had in the Finance Corporation were young men, and had had very tittle experience, they had a very 09d scheel record, understood, counsel was proceeding to question the witness further about the statement made by him as to the pro-Ihibitive cost of cables. being one of the reasons for not putting sh which were fully paid-up into safe~ keeping, when Mr, Evans. strongly objected to the waste of time, in [that the same questions had already been answered.
'The Judge:—Tho cross-examination thas been drawn out because of the witness' evasive answers, and the prosecution cannot be blamed for tha don't care to hear been gone into very thoroughly, and the Court understands it perfectly.
Br. Sellett:—During all the time the Finance Corporation had on a retalning basis legal counsel of mature Jexperienee: why didn't you, as man-Jager of the Finance Corporation on a matter, the Importanes of which has been stressed by you in your letter fof May 13, 1980, and again by Mr. Haley, in his report, seek the adv of these local lawyerst—We did it mays in the ofice. on the matter of id" orders for New York securities, you were opposed to it, and gave instructions that' it should. not be dono?—1 was not in favour of it at first, but later T chanyod after gotting legal advice. 1 have thought it ove since last nigh possibility of "matching!
Didn't "you deliberately this business of "matching" orders when you were on the witness stane yesterday?—No.
"All that you said was calculated to convey to this Court the belief that you disapproved of "matching" orders, and, as far as you could, you. pro-Hibited. them?-—My" first Feeollection was that T-disapproved, but I re-Froehed my memory on it, and I remember then taking Mr. Driscoll's Tegal advice upon the matter, {in the spring of 1935, you became aware that the Raven group of com panies were experiencing dimeulte fand were feeling apprehensive leat they be unable to meet their obllgations a5 they acerued?—Money was ivory tight then, and we advanced to The" Asia Realty Corporation a loan for n debenture la sue.
where did. the AO. Finance Corporation get the money to Tend to the Asia Realty?—Through the 18S: we got the security from our own portfolio, as we didn't want to lend them out of our own cash.
During the period commencing Marsh, 1985, until the time when the Findnee Corporation closed Its doors, large sums of money were withdrawn from the margin account With Plereo & Co.?—That is correct, We withdrew G.$150,000, and pald li into the A., Bani, to the credit of our account, and by our system of selling "short we wore able to get the 25 per cent. margin from Pierce & Ca.
The handling of the "short" accounty in the way in which you did Thandie them, made It possible for you to draw from Pierce & Ca. G$40,000, Instead of paying them that, a your hadn't advised them?—We should have sent them the orders as "short" sales, and provided the necessary. margin. T agree that the difference Eetween the proper method of handle ting the matter, and the method se tually used by the Finance Corporation made a difference of G.$80,000.
Were not thoro transactions handled. in the way in which they were handled, for the purpose of relieving the Ananelal situation, so far at the Finance Corporation. and the A... Bank were concerned?—Parlly, and partly with a view to making a profi.
"At the time the problems of the AO, Bank were critieal?—Money was.
Text read from the printed page and cleaned; old type leaves the occasional error.