COLONIAL BANK.

New Zealand Times, Volume LVIII, Issue 2747, 19 February 1896, Page 2

COLONIAL BANK.

THE APPOINTMENT OF OFFICIAL LIQUIDATORS. By Telegraph.—Press Association. Dunedin, February 18. In Chambers to-day, a summons came before Mr Justice Williams to proceed with the winding-up of the Colonial Bank, but it was decided to adjourn consideration of the matter. His Honor then heard the application to appoint the official liquidators in connection with the affairs of the Bank. Mr B. 0. Haggitt moved on behalf of the Bank; Mr W. C. MacGregor appeared on behalf of William Loarmond, a shareholder, to oppose the motion; Mr T. Young, of Wellington, represented Charles Fraser, a shareholder who also opposed the motion; and Mr J. F. M. Fraser appeared for R. Coghill and H. Adam, shareholders, who supported the motion. Mr Victor Braund, of Wellington, was present. Mr MacGregor contended that the Court should satisfy itself concerning certain allegations made against the proposed liquidators. The most decisive method would be to have an investigation of the books.

Mr Young also supported the application for inspection. After considerable argument, in which His Honor said if anything about these gentlemen could be established they ought to have it without delay as it was a bad : thing to have suggestions flying about not supported by affidavit, it was decided to go on with the application to appoint the liquidators, and if necessary adjourn the matter until the question of inspection had been dealt with. Mr MacGregor then proceeded with what he had to say against the proposed liquidators. He contended that at the time of winding up Mr Larnaoh was largely indebted to the Bank.

Mr Haggitt said that that was contradicted in the affidavit filed. Mr MacGregor said the Court had a right to know when and how the debt was paid off, and if it was by the dividend just declared. Then Mr Larnach had been a director of the Bank. Objection was taken to Mr Vigors because he had been an official. Then as to Mr Ramsay, counsel denied that ha was a representative of the independent shareholders. Mr Ramsay had been an auditor, and might, therefore, be responsible for what had been in the past balance-sheets. Further, he had stated publicly or semi-publioly that he would not accept the position of liquidator if it were offered to him, and that ho would have nothing to do with any liquidation or liquidator who would take proceeding against the directors or any of them. Mr Haggitt, in reply, pointed out that the gentlemen proposed were proposed by directors, the holders of 563 S shares, and they had been approved of at a meeting of the shareholders, He quoted authorities to show that the rule was to appoint those recommended by the persons having charge of the proceedings. He read affidavits of the Hon Q. McLean and other shareholders to show that those proposed were fit and proper persons, As to inspection, only the director® coul4 inspect, and they were bound to seprecy. Mr Fraser followed in support of the application, and in the course of his speech contended that there were objections against others who had been proposed, as in their commercial relations they were directly or indirectly connected with the Bank.

M Young opposed the appointments proposed, and had not concluded his case when the Court adjourned till Thursday. During the proceedings to-day, Mr Haggitt said that since the liquidators had'been appointed the Bank of New Zealand had taken over accounts in B list representing .£56.000. It was a mistake to suppose that the B list was bad. Many were not operative accounts, but they had to be liquidated, and they were coming in pretty fast.