The Colonial Bank

Feilding Star, Volume XVIII, Issue 210, 9 March 1897, Page 2

The Colonial Bank

■■lIQ ■ ■! ■ I A SENSATIONAL LETTEB. (Per Press Association.) Dunbdin, March 8. In the Supreme Court;, after lunch the sxamination of Mr Henry Mackenzie iras continued. It was first directed to getting reasons wbich actuated the General Manager and the Directors in aot Riving effect to the reports of the inspectors and branch managers by writiag off the amount they gave as bad and leubtful. The replies of witness were that the inspector's figures were only sstimates. It was for the Board to say what were the bad and doubtful debts. Ho was prepared to admit that the ictual profit of the Bank in 1893 was anly £7000. The action of the Directors was, he thought, the best in|tbe interest af the shareholders. The inspectors and manager indicated what proviso was in their opinion necessary and the Directors did not accept this, but made i valuation of their own. He denied that the 1895 balance-sheet was totally nt variance with the report of tbe iuspectors. He wrote a letter to tbe Hon. G. McLean, saying tbe £150,000 written off would make the Bank clear. He wai not prepared to say that he thought the amount would be required. Mr Mackenzie was examined as to tbe value of securities given by J. G. Ward with tbe promissory note for £55,000. Ifi was taken to keep tbe Ward Association on tbe rails, and they placed value on Ward's personal liability as be was reported to be wealthy. To show that Mr Mackenzie must have known Mr Ward's position Mr Soloman read the following letter from the manager of the Bank at Invercargill : — "Invercargill, Brd September, 1895. — Dear Mr Mackenzie— Before this reaches you Me Davidson's report on his investigation of the affairs of the Ward Farmers' Company will he in your hands and you will see by it that terrible disclosures have come to light. Tbe day Mr Davidson appeared an engagement was made with Mr Fisher for half-past seven in the evening and half an hour before that time the latter came along to the Bank and made a confession of his crimes, which fairly staggered me. The amount owing by Mr Ward's Association is a perfect revelation, and fully explains why I never could keep the accounts down. The outcome now is that, instead of Mr Ward being a rich man, as he led me to believe and I always thought, he has lost every shilling and is something like £30,000 behind. Besides, Fisher owns up to being 75,000 sacks of oats short of my warrants (exclusive of the 80.000 sacks attached to the British bill for £30,000) and says he has lied and deceived me hundreds and hundreds of times daring tbe last five years ; in fact, he says the truth has not been in him. This is a nice confession fot a man holding the position he does and from one I bad tbe greatest respect and trust in. It is truly appalling to me and is the rudest »bock I have ever experienced in my life. My own opinion is that we could put Fisher, Anderson, the directors, auditor, etc., in gaol over this, to me, hoge swindle. If necessary, you will of course know what is to be done and I therefore await your directions before moving further. With very much regret fit the outcome of things. — I am, etc., C A. Birch." Mr Mackenzie said be did not then regard Ward as ruined. He was then examined its to why certain accounts repeatedly reported by the inspectors to be bad had not been written down in the Bank's books. Mr Mackenzie said be could not charge his memory with individual accounts, some of wbich were dregs of previous bnsinnss. Many of these ac countß were being nursed. Tbe Hon. J. G. Ward, in a letter to tbe Daily Times, states in reference to Mr Birch's letter that as Mr Fisher is at present out of the Colony and cannot be here for two or three weeks, it is only fair to say that he (Mr Ward) never saw the letter or heard its contents until today, but some time ago be heard verbally of some of the reflections made upon Mr Fisher, who positively denied that he made any such confession as is alleged or said anything to justify the statement made concerning him. Mr Ward also states that the strictures passed upon Mr Anderson are not only undeserved but be is certain are untrue.