The Colonial treasurer.

Manawatu Herald, 9 June 1896, Page 3

The Colonial treasurer.

In Chambers at Dunedin the official liquidator of the Colonial BaQk applied thit thft agreement dated Jane between themselves, Lee Mmith, and J. B. Reid, for the sale and purchase of certain debts ftqa to the Colonial Bank and securities for the sable should be sold for £67,750 including £5000 for shipment of oats to Brook's Company London. The sale Was urged on the ground that it Would be beneficial to the Bank, that the agreement be sanctioned by the court, that Coats in the case shall be coits of winding up batik. After reading the affidavits, Mr Haggitt went on to say the liquidators personally were quite indifferent as to tberesult of application. They Were satined ho other mode would produce anything so good. The Hon. J. G. Ward waa then cross examined by Mr Young as to balance-sheet for the year ending June, 1896, which he said was pre* pared by the then manager of the oompany and signed by him on his return to the colony without being able to go into details. There Was no understanding or arrangement by which witness waa to take over me aisetsi He gave a positive and absolute contradiction to the statement that he had received a letter from. Mr Murray that the Bank of New Zealand Would see him through. About August after his return from England he was advised by the manager that the Association had made heavy losses, estimated at JB2»,000. He at once advised the Bank and requested investigation, which was done, showing the loss wa9 £55,000. Cross»examined by Mr W. 0. MaoGregor, Mr Ward said he Was responsible to the Bank tor £96,000, and the valuation of his property was £1,000, so that at present he Was absolutely insolvent. The total indebtedness of tha Ward's Farmers' Association and of himself to the Colonial Bank was £168,000, and under the terms of sale the whole was to be purchased by Smith and Reid for £87,000, so that the liquid datora stood to lose £101,000. He admitted the discrepancy between Cook's statement and the balancesheet of the Association nine months previously waa enormous. The Bank's investigation showed a loss of £56,000, and a few months afterwards there was a further depreciation of £4,800. Mr W. B. Vigors, in his cross examination, said he was aware of a draft of £30,000 on John Connell and Company by the J. G. Ward Association which never went on. tt was supported by warrants for oats. The date was about 29th or or 80th June last (on the day before or on the day of balance of the Ward Association.) The draft was held till 13th October, but was then cancelled, and afterwards recharged to the Association. In reply to Mr Macgregor, he said the oats were supposed to be in the stores at Invercargill, but he afterwards had reason to believe that they were not there and that the bonds were worthless. The warrants were signed by the manager of the Ward Association. It was at the Bank's suggestion that the transaction was carried out. He himself effected the negotiations instructed by Mr Mackenzie, general manager, who had the cable from London on which the Bank acted. Asked as to how the transaction took place on the Ward Associatien balance day, he said it was because the cable came that morns ing or the morning before. He did not know who the cable was from. Askod how the draft was allowed to hang up from 29th Jane to 80th October, he said he supposed because it was not convenient to find the oats. — Press Association.