A BANK SCANDAL.

Temuka Leader, Issue 2760, 8 January 1895, Page 1

A BANK SCANDAL.

London, Jan. 4. At a meeting of shareholders of the Bank of South Australia (iu liquidation), Mr Stuart, the Official Receiver, stated that there were many damaging revelations in connection with the administration of the institution, and further inquiry into the accounts of the Melbourne branch was desirable. It was necessary to ap point an inspection committee of six. Mr Stewart, the liquidator, and one shareholder declared that the bank was a gigantic fraud, and that the directors had habitually deceived the shareholders. Mr Stewart, Official Receiver, declares that the claim of the Union Rank against the Bank of South Australia is £550,000. Without reckoning about £200,000 of assets which are not yet valued the Union Bank estimates that the assets will yield only £50,000, whereas the liquidators consider that if nursed they will realise 10s in the £. It pointed out that since 1885 upwards of £II,OOO has been written off. At a meeting of shareholders several denounced the Board of Directors, charging them with offences equal iu effect to those committed by Jabez Balfour. The claim of the Union Bank on which the motion is based, is for £560,000. At a meeting of shareholders, Mr Stewart, who was appointed liquidator by them, read a letter urging the directors to exercise control over Melbourne managers’ advances, alleging that the Melbourne business was worthless, yet at the same time had received a rose-colored report from fhe directors. Mr Aibulhuot said that he did not fear enquiry into the actions of the board. A section of the shareholders accused the directors of squandering the resources of the bank with their eyes open, and declared that they would not rest until the directors were made liable for the losses.