A BANK SMASH.

Press, Volume LX, Issue 18138, 30 July 1924, Page 9

A BANK SMASH.

DIRECTORS TO BE PROSECUTED. (BI CABLE—PB*BS ASSOCIATION COPT*MKT.) UUSTMAI.U*' AjtD 8.8. CABLB ASSOCIATION.) DELHI, July 28. The directors and auditors of the Alliance Bank of Simla, Limited, which failed sensationally last year- for a largo sum, have been ordered by the High Court of Bengal to be prosecuted in the Civil Court for negligence. [The Alliance Bank of Simla, Ltd., which was established in 1874 with a capital of 8,894,100 rupees (shares fully paid), declared a dividend of 27 per cent.' in 1921. but in April, 3923, closed its doors. The directors explained that this course was adopted owing to heavy losses, consequent on continued Withdrawals. Negotiations had been carried on for the purpose of associating the bank with more powerful banking Interests, bur they were unsuccessful It was therefore decided to close while the affairs of the bank were still controllable. Subsequently the Imperial Bank of India paid 50 per cent, to tiic depositors of the Simla Bank. This action was backed by the Government, which later incurred a vote of censure in the Legislative Assembly, it beinf contended that relief should not be given to one bankrupt concern more than another.]