Colonial Bank Liquidation.

Hastings Standard, Issue 390, 4 August 1897, Page 3

Colonial Bank Liquidation.

EXAMINATION OF THE HON. G. M'LEAN. [By Telegraph.] (Per Press Association.) Dlneiun, August 3. Continuing Mr M'Lean said that at the time the cheque for £21,000 was given Ward was buying oats (for the Darling trust) and sheep. It would have been easy for Ward to have taken £20.000 from either of the accounts to square his own account without any appearance of falsity. Was quite satisfied no wrong doing was ever brought before him or the directors. As to the £3s,ooocheque being paid in at balance time (1*91), be heard nothing of this. Up to June, 1895, he did not think the Ward account was in a proper condition, but Mackenzie got very jubilant after Ward obtained London credit instead of drawing on London. If he had taken the grain warrants and advanced against the credit arranged all would have been safe. It was shameful the association should ever have been put into liquidation, although the liquidator said it was £"2000 behind. After deducting that and bad debts the association's capital would still have stood at £IO,OOO. The association had been simply wrecked. It had a large number of good agencies, and had no right to be put into liquidation. Had everything been realised at one time there would have been little loss, but one of the mills costing £22,000 was sacrificed for £7OOO. The managers did not bold Ryley as they ought to have done. Would nyt say the loss by Ryley was £.30,000 but when the bank sold the officers estimated £IO,OOO ought to cover it. In reply to Mr Hosking, representing the Bank of New Zealand, Mr M'Leau said there were no improper advances to directors or officers. Officers guilty of misfeasance had been punished. Always found Mackenzie straightforward, but for the last two years he had been harassed, and if there had been discrepancies in bis evidence he was sure it tfas not done wilfully. Looking he thought the bank quite justified in paying the dividend it did. Had the Colonial Bank been continued and the Bank of New Zealand had gone into liquidation it would have been best for the country. The examination was concluded at 4 p.m.