The Colonial Bank.

Feilding Star, Volume XVIII, Issue 211, 10 March 1897, Page 2

The Colonial Bank.

(Per Press Association.) Dunedin, March 9. In the Supreme Court to day the examination of Mr H. Mackenzie, late General Manager of the Colonial Bank, was resumed. Mr Solomon's examination was directed to various phases of the Ward Farmer's Association's accounts and transactions by which the Association's overdraft was rednced at balancing time. Witness said he discussed the £35,000 cheque transaction with the Chairman of Directors as a curious thing for W T ard to do, but so far as he could recollect it had not been brought before the Directors as a body. Ward said he did it because of implied authority in a letter. No official explanation was asked for from either Fisher or Ward. Re tbe oats transaction Mr Mackenzie said he did not know that he had definitely instructed Vigers when he sent him to Invercargill to draw on London. With respect to the oats he could only giye what was in his mind, which was tbat the matter should be looked into, and the credit fixed up to be operated on. It never occurred to him to tell Vigers to satisfy himself tbat the oats were really in store. He never doubted their existence. Mr Mackey also gave particulars respecting Ryley's account and said constant requests were being made to tbe Dunedin manager to keep it down. ' With reference to the £150,000 which he told Mr McLean would clear the Bank, he said things had gradually grown upon him owing to the depreciation of property. : Mr Hosking then examined Mr Mac kenzie, who gave a system which he fouud in operation of appropriating sums to meet losses. He then gave the history of the Ward Farmers' Association's ac counts, quoting extensively from letters to and from the head office and the Invercargill branch and the Ward Association to show that the accounts were closely supervised and every effort made by the head office to get it reduced, the suggestion being that it was owing to the branch manager at Invercargill that the indebtedness increased. Extracts were read from reports of tbe managers and inspectors, who repeatedly reported on the valuable nature of the Ward Association accounts. In reply to the Judge, who referred to tbe discovery of a shortage of about 160,000 bags oats, Mr Mackenzie said that the Invercargill manager having been in the grain line himself he (Mr Mackenzie) had every confidence that ho would see that the warrants were supported by oats. The examination was adjourned till Friday.