CITY OF MELBOURNE BANK.

Otago Daily Times, Issue 10619, 14 March 1896, Page 4

CITY OF MELBOURNE BANK.

DIRECTORS AND OVERDRAFTS,

Press Association—By Telegraph—Copyright. Melboubne, March 13.

At tha City of Melbourne Bank inquiry Mr Williamson, r director, iv his examination gave a peculiar account of the directors' duties. Ho admitted he secured an overdraft o£ LGOOO, whioh th?. manager had requested and obtained securities to cover.

Replying to a question by the judge as to whether he thought it right for the directors, who v;ere trustaes of the depositors' money, to obtain large overdrafts, he said it was quits right if safe, sad it was the custom to do so.

The judge asked him if the directors were helping themselves to ths depositors' money, did be not think it would ba a good thing to periodically publish the names and amouots of the overdrafts? Ths witness said he did not think so. Tba judge differed from the witness, and saiti ha thought such a CDursa would have a good effect.

The evidence showed that the manager had written to the witnasa stating that oreing to the auditor having refused to pass his accounts because the advances wora not fully covered*it would ruin thorn, as Barns was" the very man to show how virtuous he wan as an auditor. It was therefore absolutely nocaasary to get a gnarantea to some o£ the bonds.