COLONIAL BANK LIQUIDATION

Evening Post, Volume LXIX, Issue 49, 28 February 1905, Page 6

COLONIAL BANK LIQUIDATION

REPORT OF THE OFFICIAL ASSIGNEE [l»T TEI.KQB.M'H— I'HESS ASSOCIATION,] DL'NKmN. This l)«y. Reporting on (lie alt.tu.s of (he Coloni.il Biink liquidation, Mr. (iniluni, Otl'ui.il A.^ctiguoo, says: " l'!ir> bahinco-^hpol shows (lie balance of a^sela o\or liabilities to be £484;980, to which is added £75,000 for goodwill, and £6972 lepicsonliiig v.uious ituin.'i of ml just input, nuking v lot id of £566,952. This \vn»> reduced in terms, of (lie agreement by £3467, written off the furniture and (stationery. Tho »urn of £102,274, tho amount of the I) list ol account*, wax not included in the pinicliuac sum thus deducted (£105,741), leaving tho amount of tho face value of consideration at £461,211, from which w.is deducted £327,305 uk n lvaeno .igain.sl tho accounts in B and C li.st.s ponding the taking over und realisation or adjust mont of (such accounts. A balance of £133,906 waa paid in cjihli by the Bank of Now Zealand to the liquidator*, of the Colonial Bank, as provided by Clause 3 of the agreement. From thin sum must bo deducted £2113 9« Id 'Salaries due to Colonial Bank ofiicer® at tho dale of Hie liquidation, £17,631 2s 7d costs incidental to realisation and tho liquidator.*,' exponses, mxl £2624 8s lOd out payments in excess of recoveries, leaving £i 11,536 19a 6d for distribution to .shareholders, who liayo received £111,454 Is 7d in two dividends of 10s and Is lgd respectively. Against tho balance (£B2 17s lid) now in hand, there aro claims for storage of books and accountancy fees. In addition to his there remains 'at tho credit of the dividend accounts at the bank the sum of £159 8n 9d, roprescntine dividends due to several shareholders whoso whereabouts \ hnvo been unable to discover. I "An account in the C list which was, made the subject of special investigation, namely, the Ward Farmers' Association, for which a separate liquidator \va« appointed, calls for a .special remark. Tho amount owing to tho Colonial Bank on tho 20th June, 1896 (the day on which fcho Official Liquidator took over tliift estuto) waa £86,757 (including debentures issued £40,000). This does not include two sums paid by the liquidators to tho Co!oniitl Bank 1 some considerable time after the date of tho liquidation, and debited to tho Association, £5149 paid in respect of Brooks and Co., and £9800 hi respect of Connell and Co. These sums were paid after litigation between the Bank and Mc«sr«. Brooks and Connell, and wore- not paid by or through tho liquidator of tlio Association, nor does tho nbovc-mcnt4ored total, include £2195 subsequently debited for past duo bilfe. Ihe total amount realised by tho liquidator of the Association was £83,548 11s Id. Tho cxpeiifcfcs of tho realisation and liquidators' coste amounted to £14,412 12s 3d, leaving a balance of £69.135 18s lCd .which M-as paid to the liquidator of the Colonial Bank, and out of this sum debentures for £40,000 paid in full, l'urther recoveries from other sources increased the amount of £69,135 18^ lOd by £2752. " The total amount of A, B, C. and 1) list* amounted to £1,731,549 as follow •— A list, £926,198; B list, comprising 141 account*, £604,695; C list, comprising (hreo accounts, £98,382; D list, comprising 117 accounts, £102,274 ; toUil £1,731,549. The total loss on 261 flC ' count? in B, C, and D lists and out payments umlci- clause 25 (B and C of the ftßrtement amounted to £432,203 8s lOd This, with £2113 9s Id, salaries to Colonial lw;ik oUtccrp, £3467 Is 2d written off furniture and stationery account, £17,631 2m 7d, costs of realisation and liquidators' expenses makes n total deduction of £455,415 In 8d from the face value of confiitleration (£566,952 Is 2d) an per clunso 3 of agreement for sule, leuving £111,536 ! 19s 6d, previously referred to, and which lua been denlfc with in ih e manner „|. ready described. I iind, after catetul consideration, it would not bo possible to j givo tho result«.of Josses on individual accounts without r.i-cCKMlating mi investigation 0f'761 scpuraUMtccountd, and to point out tho'difliculty tluit kucli a course proI w-ntii, 1 may stuto that 141 accounts in B list, which wore taken over nine \ctua ago by the Bank of Now Zealand, ro'pr*»eirteri | a loss of £268,933. This amount is mude up of writings off of individual accounts in sums varying from £6 to £20,000. To follow such operative accounts obviously presents many difiicultieh. and in my opinion would servo no good purpose.",