London, April 11. In the course of his evidence before Judge Williams, Sir James Fergusson said the Company ought never to have taken up landed property, which, be considered, was outside the Company's scope. Mr D. Elder was too greedy in his business transactions. Considera tion of Mr Larkworthy's report was deferred because it was feared his apparent enmity towards certain of the Directors had caused the report to be colored. Sir James denied that Mr Paul had made any mention of Elder's report in his cable message asking that the report be withheld, pending receipt of advice s until June 1893. With regard to the deficit, witness declared it would be criminal to conceal the ascertained losses, but ±hs Board held that the deficit was only temporary, and they hoped soon to be able to recoup the amount. Tho Company had always been willing to help Mr Thomas Eussell, whose ser vices then and now were invaluable. He admitted that in 1891 certain of the Directors declared that the position of the Company had never been sounder. Judge Williams said the troubles of the Company appeared to be due to the absence of inspection of properties, it was impossible to think that Mr Paul had informed the Directors of the objection taken by the auditors in their report of 1891 to the misleading description of the land held by the Company in the Waikato district., His Honor complimented Sir James 37ergusson upon the frankness with which he had given his evidence. Sir James Fergusson said that he was unable to explain the ignorance displayed by the bondholders in 1888 in regard to the advantage of conver sion, and that the then personal friends of the directors of the company had not converted their bonds. (Received April 13, 11 a.m.) London, April 12. Holders of unconverted debentures in the "New Zealand Loan and Mer cantile Agency Company have claimed priority on an equality with the cdn verters on the ground that the old prospectus gave security. 