THE COLONIAL BANK.

New Zealand Herald, Volume XXXIII, Issue 10035, 23 January 1896, Page 5

THE COLONIAL BANK.

[Br telegraph.— association.]

Dcnedin, Wednesday. A meeting of the shareholders of the Co' lonial Bank, in liquidation, to make a recommendation as to the appointment of liquidators, was hold to-day. The late direotors, the provisional liquidators, and about 70 shareholders attended.

Mr. K. Ramsay, chairman of the provisional liquidators, presided, and explained that the delay in the distribution of the first £100,000 was due to him. Messrs. Larnach and Vigors were acquainted with the Bank's affairs, but he had to thoroughly inquire and investigate before he could sign an affidavit applying to the Judge. Progress had been made despite the holidays, and they had been ablo to arrange with the Bank of New Zealand to take over several of the accouuts, and to relieve several thousands held in reserve against them as security. Negotiations were going forward concerning a considerable number of securities.

In reply to a question, the Chairman said the Bank register closed when the Bank went into liquidation. By 33 to 31 it was decided not to allow those who were not shareholders to remain in the room. This applied to Mr. Y. M. Braund. of Wellington, and Mr, A. 0. Begg. who had been suggested as liquidators, ana Mr. W. C. Macgregor, who had been acting as solicitor for some shareholders.

The Hon. Mr. Larnach, Mr. Keith Ramsay, and Mr. VV. B. Vigors were proposed as liquidators by Mr. R. Watson. Mr. J. W. Bain, oflnvercargill, proposed Mr. W. Brown. In reply to a question, Mr. Bain said he would not tuko office himself.

Messrs. W. L. Simpson and A. 0. Bogg were also proposed. Three scrutineers were appointed. Mr. Bain asked : " Do the provisional liquidators say from thoir own knowledge that the balance-sheets recently placed beiore shareholders were correct! If not who are responsible for these balance-sheets being Incorreot? Mr. Ramsay answered that the provisional liquidators had nothing to do with that matter at all. If the balance-shoots were incorrect the direotors were responsible, not the liquidators. Mr. Baiv asked if the provisional liquidators have had a proposal submitted to them to soil the securities of the Bank at a discount to the Bank of New Zealand, which would mean a release to the Colonial of some thousands of pounds? Mr. Ramsay thought the question a most improper one, but he would answer it by a direct negative. Mr. Bain also asked whether it wns not desirable that the meeting should limit the power of compromise or make a recommendation to that effect ?

Mr. Ramsay replied that no suoh power was yet i/ivon, and it rested with the judge to give or refuse such power. Mr. Bain : But he will be guided by expressions of opinion from the shareholders. Mr. Ramsay; Mr. Haggett tells me thatsuch power cannot bo given without the sanction of the Court, that each individual case will require to be brought before the Judge. The Hon. G. MoLkan, lato chairman of directors, spoke At length in reply to recent oritioisms. He denied absolutely that the directors had sold any shares, and said the directors did not owe the Bank one shilling. During the banking crisis he had put the position of the Colonial Bank as hopefully as possible. To have done otherwise would have been disastrous. He complained that while these hopeful remarks were frequently quoted, no reference was made to the repoaten warnings he had given at tho sumo time as to the (fanner of the situation, Kverv word he had spoken on these occasions was fraught with danger. To have spoken otherwise than hopefully would liijvebeen to otiose catastrophe. He gave comparative figures to show the large fall in shares of other souud Banks at the time of the crisis. Referring to the power of compromise, he said if suoh was not given and exercised judicially, if every case had to be heard in open Court the result would be a large loss to the Bank. A ballot was then taken. The result of the voting is that tho provisional liquidators will be recommended to the Judge for the position of permanent' liquidators. The voting wns as follows;—V'gers, 4089 votes, 95,856 shares; Ramsay, 3914 and 9228; Larnach, 3327 and 77,627; Simnson, 2887 and 59,012; Beau, 2341 and 48,4153 ; Brown, 2023 and 42,401.