COLONIAL BANK.

New Zealand Times, Volume LVIII, Issue 2724, 23 January 1896, Page 2

COLONIAL BANK.

THE APPOINTMENT OF LIQUIDATORS.

Btj Telegraph.—Press Association: Dunedin, January 22. A meeting of the shareholders of the Colonial Bank (.in liquidation) to make a recommendation as to the .appointment of liquidators was held to-day. The late directors,'the provisional liquidators, and about 70 shareholders attended. Mr K. Ratmay, chairman -of the provisional liquidators, presided, and explained that tho delay in the distribution of the first .£IOO,OOO was due to him. Messrs Larnach and Vigors Were acquainted with the Bank’s but. he had to thoroughly enquire and investigate before lie could sign the affidavit applying .to tho Judge. Progress had boon made despite the holidays, and they hud been able to arrange with the Bank of New Zealand to take over several of the accounts, and to relieve several thousands held in reserveagainstthem 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 tq 31, it was decided not to allow ‘.those who "wore not shareholders to remain in tho room. This applied to Mr V. M. Braund, of Wellington, and Mr A..C. Begg, who had been suggested as liquidators, and Mr W. C. Macgregor, who had been acting as solicitor for some of the shareholders. • • .The Hon Mr Larnach, Mr Keith Ramsay and Mr W. 8.. Vigors ..were proposed .as liquidators by Mr R. Watson. i. Air J. W. .Bain, of Invercargill, proposed Mr William Brown. In reply :.to a question, Mr Bain said he would not take ofhee him*; self.

Mr W. L. Simpson and Mr A. C.'Begg’were also proposed. . Three;, scrutineers- were- appointed.: . - , * • j • Mr Bain .asked —Do the provisional liquidators say from their own knowledge * that the balance-sheets recently placed before .the shareholders were correct? If not, who are responsible for these balance-sheets being .'incorrect ? " Mr Ramsay answered that the-provisional liquidators .had nothing to do. with that' matter at all-. If the balance-sheets wore incorrect, the' directors were responsible, not the liquidators. , Mr . Bain asked if the provisional liquidators have had a’proposal submitted to them to soil the securities of the Bank at a discount to tho Bank of New Zealand, which would mean a release to the Colonial of some thousands of pounds. ; . . . . * Mr Ramsay thought tho question a most improper one, hut he would answer it by a direct negative, Mr Bain also asked whether it was not desirable that tho meeting should limit the power of compromise, or make a recommendation to tint effect. .

MrHamsay replied that no such power was yet given, and it rested with tho Judge to give or refuse such power. Mr Bain: But he will be guided by au expression of opinion from the shareholders. Air Ramsay: Mr Haggott tolls me that such power cannot be given'without thesanction of the Court; that each individual, case will require to be brought beioro the - Judge.. . Tho Hon G.. McLean, the late chairman of directors, spoke at length in-reply to recent criticisms. Ho denied absolutely that the directors bad sold any shares, and said the directors did not owe the Bank one shilling. During the banking crisis he bad 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 repeated warnings he had given "at the same time as to tho danger of tho situation. Every word he had on these occasions was fraught with danger/ To have spoken otherwise than hopefully would have been to cause a catastrophe; Ho gave comparative figures to show the large fall in shares of other sound banks at the time of the crisis. Referring to-tho power of compromise, he said if such was not given and exercised judicially, if every case bad to be heard in open Court, the result would bo a large loss to the Bank. The ballot was then taken. Tho scrutineers are now at Work, but it is somewhat doubtful if the result will be known before midnight.

THE RESULT OF THE BALLOT,

THE. PROVISIONAL LIQUIDATORS TO

BE RECOMMENDED.

By Telegraph.—Press Association, ; * Dunedin, January 22. The result of the voting of the Colonial Bank shareholders is - that the provisional liquidators will be recommended to the for the position of permanent liquidators, . ( The .voting was as follows '

. Votes. Shares. Vigors- ; ;V ■ ... 408.0 95,850 Ramsay • ... ... 3914 92,228 Lavmich ... 3327 77,(129 Simpson ... 2387 -59,912 Befrg ... 2341 4S,4G8 Brown 2023 r 42,401