The Hastings Standard Published Daily. MONDAY, JUNE 15, 1896. THE COLONIAL BANK.

Hastings Standard, Issue 42, 15 June 1896, Page 2

The Hastings Standard Published Daily.

MONDAY, JUNE 15, 1896. THE COLONIAL BANK.

For the cause that lacks assistance, For the wrongs that need resistance, For the future in the distance, And the good that we can do.

Accokih.vg to our special correspondent a legal gentleman in Wellington has been retained with the object of taking proceedings on behalf of certain shareholders of the Colonial Bank those responsible for the past management of the institution, and from other sources we learn that this is correct. The evidence given before Mr Justice Williams the other day was of such a nature as to demand that further light should be tin-own 011 the past management of the Colonial Bank. Giancin at the evidence tendered by the Hon. J. G. Ward, we find that in August, lMQii, he knew that lie was insolvent, and communicated the fact to the then General Manager, inviting him to make an investigation. This was done, and the estimated loss was greatly increased. The Bank knew of the hopeless condition of the J. G. Ward Association and of Mr Ward in August or early in September. Mr Yigers, an officer of the bank, and now one. of the liquidators, fixes the date of the bank's knowledge of the insolvent condition of the Association as the 2nd or iird September. Then, there is that peculiar transaction of the draft for EHO.OOO drawn by the J. G. Ward Fanners' Association on Council and Co., of London, which was discounted by the bank 011 the 29th June, and kept in the strong room from the date named to the ls!th November, and then cancelled a,s being valueless, which, as a matter of fact, it really was. Now, it is very clear from the evidence that the insolvent condition of Mr Ward, of the J. G. Ward Fanners' Association, and the loss incurred by the worthless draft of £BO,OOO was known to the responsible officers of the Colonial Bank, and yet the shareholders were presented with a balance-sheet showing a profit of over .£IO,OOO as at Hist August, 1895. This prwlit was either a fictitious one or a reality. Even admitting that it was a true profit 011 the Hist August an admission that is'contrary to the evidence —the responsible officers of the bank and the directors knew that losses had been made and ascertained, between the date of the balance-sheet and the meeting of shareholders, sufficient to wipe out the entire alleged profit. To put it simply, when the Colonial Bank shareholders held their meeting, the directors knew —if not, they should have known—that instead of there being a. profit of £19,000, there was really a deficit of £II,OOO and more. \et the balance-sheet with the alleged profit was accepted by the shareholders as a fact, and were not advised to the contrary by those whose duty it was to so advise them. e fancy that most people who have closely read the report of the proceedings before! Mr Justice Williams will have come to the conclusion that wrongdoing, if not worse, can be attributed to the responsible bank officials. In the interests* therefore, of the shareholders and officials, and in the public interest also, proceedings must be taken, and the criminality, if such exists, sheeted home to the proper persons. We know that those who will in all probability be called upon to answer for their conduct are men who now cccupy exalted positions, and this, in our opinion, is a stronger reason why prosecutions should be instituted. Men who occupy fiduciary positions should be true to their trusts, and when they fail they should be well punished, for by abusing the confidence reposed in them they ruin many innocent and trusting people.