THE COLONIAL BANK.

Press, Volume LIII, Issue 9321, 23 January 1896, Page 5

THE COLONIAL BANK.

(press association tecegbam.) DUNEDIN, January 22. A meeting of shareholders of the Colonial Bank (in liquidation) to make a recommendation as to tho appointment of liquidators was held to-day. The late Direotors, the provisional liquidators and aboutf seventy shareholders attended. Mr Keith Ramsey, chairman of the provisional liquidators, presided and explained that the delay in the distribution of the first £100,000 was due to him. Messrs Larnach and Vigors were acquainted with the lUok's affairs, but he had to thoroughly inquire and investigate before he could sign tho affidavit applying to the Judge. Progress had been made, despite the holidays, and they had been able to arrange with tho Bauk of New Zealand to take uvor several of the accounts aud to relieve several thousands held iv reserve against them as security. Negotiations were going forward concerning a considerable number of the securities. lii roply to a question, tho Chairman said the 13a.uk register closed when the Sank went into liquidation. By 33 to 31, it was decided not to allow those who wore not shareholders to remain in tho room. This applied to Mr V. M. Braund, of Wellington, and Mr A. C. Bagg, v> hj had been suggested as liquidators, and Mr W. C. McGregor, who had btjeu acting as solicitor for some ehareholders. The Hou. W. J. M. Larnach and Messrs Keith Ramsay and W. B. Vigers were proposed a» liquidators by Mr K. Yvatsou. Mr J. W. Baiu, of luvwrcargill, proposed Mr William Brown. In reply to a ,question, Mr Bain said he would uoC take cilice himself. Messrs W. L. Simpson and A. C. Begg also wore proposed. Three scrutineers were appointed. Mr Bain asked—Do the provisional liquidators say from ihoir own knowledge that the balance-sheets recently placed before the shareholders were correct V If not, who are responsible for these balance sheets being incorrect 1 Mr Ramsay answered that the provisional liquidators had nothing to do with that matter at all. It' tho balance sheets were incorrect tho Directors were responsible not tho liquidators. -.Mr Baiu asked if the provisional liquidators have had a proposal submitted to them to sell tho securities of the Bank at a discount to tho Bank of .New Zaakud, which would mean a release to tho Colonial Bank of some thousands of pounds. Mr Ramsay thought tho question a most improper one, but he would answer it by a direct negative. Mr Baiu also asked whether it waa not desirable that the meeting should limit; the power of compromise or make a recommendation to that effect. Mr Ramsey repliod that no such power waa yet given, aud it rested with the Judge to give or refuse such power. Mr Bain—But he will be guided by aa expression of opinion from the shareholders. Mr Ramsay—Mr Haggitt tells mc that such power cannot be. given without the sanction of tho Court, that each individual case will require to be brought before the Judge. The Hon, G. MoLean, late Chairman of Director!, spoke ab length in reply to recent criticisms. He denied absolutely that the Directors had sold any shares, and said the Directors did not owe the Bank one shilling. Duriug. the banking crisis he had put the position of the Colonial Bank as hopefully as possible. To have done otherwise would have be'en disastrous. He complained that, while theso hopeful remarks were frequently quoted, no reference was made to the repeated warnings he had given at the same time as to tho danger of the situation. Every word he had spoken on these occasions was fraught with danger. To have spoken otherwise than hopefully would hava been to cause a catastrophe. He gave comparative figures to show the large fall in tho shares in other souud Banks at the time of the crisis. Referring to the power of compromise he said if suoh was not given and exercised judicially, if every case had to be heard iv open Court, the result would be a large loss to the Bank. The ballot w&s then taken. The sorutineers are hard ab work,, bub it is somewhat doubtful if the result will be known before midnight. Later. The result of the voting of the Colonial Bank shareholders is that the provisional liquidators will be recommended to the Judge for the position of permanent liquidators. The voting was as follows,:— Vigers, 4089 votes, 95,856 shares ; Ramsay, 3914 votes, 92,228 shares j Larnach* 3327 votes, 77,627 shares ; Simpson, 2637 votes ; 59,912 shares; Bega, 2641 votes, 48,468 shares; Brown, 2023 votes, 42,404 shares?