Colonial Bank Liquidation.

Feilding Star, Volume XVII, Issue 288, 11 June 1896, Page 2

Colonial Bank Liquidation.

(Per Press Association) j Dunedin June 9. | At the Supreme Court On Saturday \ Mr Vigors was further cross examined : by Mr Young as follows in regard to tbe draft for £30,000 which did not go forward. j Mr Young — Now, I notice that in ! tbe report of the directors of the j Colonial Bank submitted to the halfyearly meeting of proprietors on the 25th September, 1895, tbey show a net profit available for distribution of £19,980 2s lOd. Do you know whether the balance-sheet from which these figures are taken included the Ward Association accounts as represented by the balance-sheet of the 29th of June ? Mr Vigers — Our balance-sheet would include the Association debt as shown in our books. Then it would get the benefit of this £30,000 transaction? It would appear as good in your balance-sheets to that extent t— Yes, it was supposed to be good at that date. Was it supposed to be good on the 25th September? — Our balance-sheet was dated 31st August. I know that. But 1 asked you was it supposed to be good on the 25th September, when the balance sheet was submitted to the proprietors ? — I should say not. As a matter of fact, did not the directors and tbe Manager know on the date when they presented the report to the shareholders that, so far as the Ward account was concerned, it was, at any rate, in a very much worse position than it was represented in the balance sheet I—l1 — I think so. To an exteut sufficient to wipe out the whole apparent profit for the halfyear, viz, £19,000 ?— I should not like to say they knew that. Then I understand that this meeting for the approval of the report was adjourned till some date in November ? — Yes ; I think so. Mr Haggit — It was adjourned until after the approval of the agreement. Mr McGregor — The report was confirmed afte r the approval of the agreement ? Witness — I do not think I was at that meeting. Mr Young — Still, you know as a matter of fact it was done ? —I believe so. So that at the time of the final presentation of the account the directors and the General Manager must have known that this Ward account was £55,000, in round numbers, worse off than it was represented in the balancesheet I—At1 — At what date 1 The 18th of November? — I presume so. And no intimation of anything of that sort was given to the shareholders in any form whatever I—No.1 — No. Mr Haggit — Did the directors know at that time that Mr Ward's promissary note was valueless 1 Witness — I should not think so. Mr Young — Now, about those figures. There is no occasion for any mystery. Before this £55,150 was written off the account stood at £98,000, or there abouts, did it not ? — That is how it appears in the "C " list. Then you wrote off £55,000, which reduced it to £43,000 ?-— Yes, in round figures. The reason of that reduction was tbat the Bank of New Zealand would take it over at tbese figures, the £55,000 being written off?— l think so. Then you say that in November the £50,000 was deducted, bringing the account up to £73,000 ?— Yes. Then the £20,000 worth of debentures guaranteed to the Colonial Bank would bring it up to £93,000, at which it now stands?— Yes, £92,850.