THE COLONIAL BANK.

Auckland Star, Volume XXVII, Issue 19, 23 January 1896, Page 4

THE COLONIAL BANK.

(BY telegraph.—press association)

Dunedin, this day, A meeting of the shareholders of the Colonial Bank, in liquidation, to make a recommendation as bo bhe appoinbmenb of liquidators, was heid yesterday. The late directors, the provisional liquidators, and aboub 70 shareholders abtended.

Mr K. Ramsay, Chairman of the provisional liquidabors, presided, and explained that the delay in bho distribution of the first £100,000 was due to him. ''Messrs Larnach and Vigors wero acquainted with the Bank's affairs, bub he had to thoroughly inquire aud investigate before he could sign an affidavib applying to the Judge, Progress had been made despite the holidays, and they had been able bo arrange with the Bank of New Zealand to take over sereral of the accounts, and to relieve several thousands held in reserve against them as security. Negotiations ware going forward concerning a considerable nuinbei of securities.

In reply to a question, the Chairman sail tho Bank register closed when the Baal wenb into liquidation.

By 33 to 31 ib was decided not to allow those who wero nob shareholders bo remain in the room. This applied to Mr V, A), Braund. of Wellington, and Mr A. C. Begg, who had been suggested at liquidators, and Mr W. C. Macgregor, who had been acting as solicitor for some shareholders.

The Hon. Mr Larnach, Mr Keith Ramsay and Mr YV. B. Vigors were proposed as liquidators by Mr K. Watson, lit J. W. Bain, of Invercargill, proposed Mr W. Brown.

In reply to a question, Mr Bain said would not take office himself.

Messrs W. L. Simpson and A. C. Bej were also proposed.

Three scrutineers were appointed. Mr Bain asked: "Do the provision! liquidators say from their own knowledf thab bhe balance-sheebs recenbly placed bi fore shareholders were correct ? If not wk are responsible for these balance-sht/jl being incorrect ?

M r Ramsay answered that the provisional liquidators had nothing to do with thai matter at all. If the balance-sheets were incorrect the directors were responsible, not the liquidators.

Mr Bain asked if the provisional liquidators have had a proposal submitted to then to sell the securities of the Bank at a discount to the Bank of New Zealand, which would mean a release to the Colonial of some thousands of pounds ?

Mr itamsay thought the question a mo; improper one, bub he would answer it by direct negabive.

Mr Bain also asked whether ib was no! desirable thab bhe meeting should limit tie power of compromise or make a recommendation to bhab effect ?

Mr Ramsay replied that no such powi was yet given, and ib resbed with the judjj to give or refuse such power.

Mr Bain : Bub he will be guided bye: pressiona of opinion from the shareholder Mrßamsay: Mr Haggetb bells me tin such power cannob be given without It sanction of the Courb, thab each individo: case will require to be brought before th judge.

The Hon. G. McLean, late Chairman ( Directors, spoke at length iv reply to recen criticisms. He denied absolutely that tk directors had sold any shares, and eaid tb directors did not owe the Bank one shilling During the banking crisis he had put tb position of the Colonial Bank as hopeful'! as possible. To have done otherwise wooli have been disastrous. He complained tha' while these hopeful remarks were kf quenbly quoted, nc reference was OW,f to the repeated warnings he had a}^ ab the same time as to the danger of tM situation. Every word he had spoken on these occasions was fraught withdangsr. jj have spoken otherwise than hopefully « M® have been to cause catastrophe. He gay* comparative figures to show the large fa'"" shares of other sound banks at the time ol bhe crisis. Referring to the power of compremise, he said if such was not giren «" exercised judicially, if every casehncI tow heard in open Courb the result would w large loss to the Bank. . „ A ballot was then taken. The ream of the voting is that the P™" 810!? < liquidators will be recommended to' Judce for the position of permanent liquidators. The voting was as f°"°p s:' Vigors, 4,089 votes, 95,856 shares; X""' Bay, 3,914 and 92,280 ; Larnach, 3,327 »»» 77,627 ; Simpson, 2.657 and 59,912: m 2,341 and 45.468; Brown, 2,023 »»», 42,104.