THE COLONIAL BANK.

New Zealand Herald, Volume XXXIII, Issue 10060, 21 February 1896, Page 5

THE COLONIAL BANK.

[by telegraph,—press association.] Dcnedin, Thursday, In Chambers to-day argument was continued on the motion for the appointment of permanent official liquidators lor the Colonial Bank.

Mr. Young continued his address. Referring to the (J list he said it evidently referred to the account of some person or persons of sufficiently powerful interest to procure special treatment of their account or accounts. The effect of clause 18 was that immediately on ratification of the agreement a certain amount was written off beyond recall. During the afternoon Mr. Youngsaid he had been handed by Mr. Haggitt a statement made by Mr. Vigers, showing how much had been reserved against the B list in the righthand column, which was £272,000, and therefore in the right-hand column of the C list the amount of reserve would bo £55,000. That meant that the person or persons in the list had been made a present of their liability to the Bank to the extent of £55,000, which sum presumably had been credited to the account or accounts in such list. The result was that in one fell swoop the £327,000 reserve was reduced by £55,000. leaving the reserve again in the B list at £272.000. Mr. W. C. McGregor delivered a lengthy address in opposing the appointment of the proposed liquidators. The ground was that they were recommended by directors whose conduct was challenged, and v.<>re in sympathy with directors, one being a member of the Board. He contended it had been shown the balance-sheet was incorrect. If it had not been, the shareholders would have received 47s to 48s for shares instead of 10s, with possibility of another 33 4d. Mr. Haagict said it was expected that another 15s would be paid. Mr. Haggitt replied, contending this was not the time to meet accusations or discuss the nature of bargains which had been ratified. The change in tho Bank of New Zealand, which had become a State institution, had had the effect'of making it impossible for the Colonial to carry on business. As a uoing concern it was worth more than tho purchasing Bank would give, and that to a large extent accounted for the difference pointed out, Another affidavit is to be filed to morrow, and His Honor will probably give judgment early next week.