LAX METHODS.

Taranaki Daily News, 8 November 1922, Page 5

LAX METHODS.

ARMY BANK’S COLLAPSE. By Telegraph.—Press Assn.—Copyright. London, Nov. 6. At the meeting of creditors of M‘Grigor and Company, army bank agents, the Official Receiver said that during the war ft large temporary staff, of whom the majority were incompetent, was engaged, resulting in heavy loss. Cheques were honored which ought not to have been and customers allowed to draw without authority. The liabilities were estimated at £BOO,OOO and the assets at nearly £276,000. Sir James separate estate was estimated to produce £5OO. The absence of 'balance-sheets and the lack of aupervieion of book debts were culpable features. An advance of £60.000 was made on small security twenty years ago to a person who was dead and insolvent; £20,000 was advanced three years ago to a person against whom a warrant of arrest had been issued; £20,000 was advanced to another against the security of cigarettes, which were practically valueless. Many of the bank's debtors were bankrupt or untraceable. The meeting appointed a committee of inspection, ne trustee said he hoped to pay a first dividend of 2s 6d in the £ shortly.

The meeting passed a resolution declaring that the War Office had a moral and legal obligation to make good the losses, owing to its failure to exercise | business supervision.