THE BANK OF SOUTH AUSTRALIA.

New Zealand Herald, Volume XXXII, Issue 9712, 7 January 1895, Page 5

THE BANK OF SOUTH AUSTRALIA.

Press Association.- Electric Telegraph.—Copyright " London, January 4. At a meeting of the shareholders of the Bank of South Australia (in liquidation), : • '. :•• -:■ Mr. Stewart, official receiver, stated there were many damaging revelations in connection with the administration of the institution, and further inquiry iuHP the accounts of the* Melbourne brarM* was desirable. • The noting appointed an inspection committee" six, and Mr. Stewart liquidator. v 'v " '"'' T On the motion CMhk Union Bank, the creditors appointed tl^J rown li( luidator. The claim of the Un.i° n Bank, upon which the motion is based, "iS.* £560,000. : : \ • •■'. \ At the meeting of the shareholders, Mr. Stewart! who . was appointed liquidator by them, 'read a letter urging the directors to. exercise, control over the Melbourne manager's advances, alleging the Melbourne business was worthless ; yet at the same time he had received a rose-coloured report from the directors.

Mr. Arbuthnot said he did not fear inquiry into the actions of the Board. A section of the shareholders accused the directors of squandering the resources of the Bank with their eyes open, and .declared they would not rest until the directors were made liable for the losses.

London, January 5. Mr. Stewart, the official receiver, declares the claim of the Union Bank against the Bank of South Australia is £550,000, without reckoning about £200,000 assets which are not yet valued. The Union Bank estimates that the assets will yield only £50,000, whereas the liquidators consider, if nursed, they will realise 10s in the pound. It is pointed out that since 1885 upwards of £11,000 has been written off. At a meeting of shareholders several denounced the Board of Directors, charging them with offences equal in fraud to those committed by Jabez Balfour.