J. G. Ward's Company.

Feilding Star, Volume XVII, Issue 292, 16 June 1896, Page 2

J. G. Ward's Company.

o JUDGE WILLIAMS' -DECISION. SALE OF THE ACCOUNTS REFUSED. DISHONEST BALANCE-SHEETS. I Per Press Association) Dunedin, This Day. Judge Williams refused the sale of the Ward Association accounts, with costs. Later. Judge Williams, in delivering judgment, said he did not think it bad been shown the results of the Association going into liquidation would indirectly affect the liquidation of the Colonial Bank. On the whole the only alternative was either to carry out the proposed agreement or for the association to go into liquidation. The former would be more beneficial pecuniarily for the bank, but it was contended there were other aspects the court was bouud to consider. He then proceeded to criticise these: — In the Association's balance-sheet of June 30, 1895, there was an item £6830, bills receivable, arrived at by deducting the undisclosed amount of bills under disdiscount from undisclosed amounts of bills receivable. Any person with an elementary knowledge of accounts must see this process was illegitimate and was a falsification of the balance-sheet, and a practice obviously dishonest. Furthermore, it was almost certain this process was followed in other items, namely, drafts against shipments and advances against produce. The balance-sheet also showed a liability to the Colonial Bank of £1185 only Mr Yigers had told them how, immediately before the Association balancing day the Bank was induced by a fraud, to reduce the account by £30,000. They had discounted a draft on a London bouse for £80,000 and in support received warrants purporting to represent oats which ultimately turned out to be non existent. This fraud was not discovered by the Bank till some months later. The report of the directors recommended payment of dividend and bonesses, yet Mr Cook valued the assets on March 20th at £64,341 against liabilities of £167,947. It was impossible to suppose the framers of this balance-sheet, when they put it forward on September 7th were nob aware it was utterly false. As to what was Mr Ward's connection with this sheet, he was absent when the fraud in respect to the oats was perpetrated, bnt the report was signed by him as Chairman of Directors.