The Colonial Bank.

South Canterbury Times, Issue 8425, 23 January 1896, Page 1

The Colonial Bank.

("By Telegraph.) DUNEDIN, January 22. A meeting of 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. Ramsay, chairman of the provisional liquidators, presided, and explained that the delay in the distribubution of the first £IOO,OOO was due to him. Mr Larnach and Mr Vigers were acquainted with the bank’s affairs, but he had to thoroughly enquire and investigate before he could sign the affidavit applying to the Judge, Progress had been made despite the holidays and they had been able to arrange with the Bank of New Zealand to take over several of the accounts and to relieve several thousands held in the reserve against them' as security. Negotiations were going forward concerning a considerable number of securities. In reply to a question, the chairman said that the bank register was 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. C. Begg, who had been suggested as liquidators, and Mr W. C. Macgregor, who had been acting as solicitor for some of the shareholders.

Mr Larnach, Mr Keith Ramsay, and Mr B. Yigers were proposed as liquidators by Mr R. Watson. Mr J, W. Bain, of Invercargill, proposed Mr William Brown. In reply to a question Mr Bain said that he would not take office himself. Mr W. L. Simpson and Mr A. C. Begg were also proposed. Three scrutineers were appointed. Mr Bain asked: Do the provisional liquidators say from their own knowledge that the balance sheets recently placed before shareholders were correct ? If not, who are responsible for the balance sheets being incorrect? ; . Mr Ramsay answered that the provisional liquidators had nothing to do with the matter at all. If the balance sheets were incorrect the directors were responsible, not the liquidators. Mr Bain asked if the provisional liquidators had had a proposal submitted to them to sell the securities of the bank at a discount to the Bank of New Zealand, which would mean a release to the Colonial Bank 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 was not desirable that the meeting should limit the power of compromise or make a recommendation to that effect. Mr Ramsay replied that no such power was yet given, and it rested with the Judge to give or refuse such power. Mr Bain: But he will be guided by an expression of opinion from the shareholders. j Mr Ramsay: Mr Haggxtt tells me that such power cannot be given without tho

sanction of the Court. That each individual case will require to be brought before the Judge. The Hon. G. McLean, late chairman of directors, spoke at length in reply to recent criticisms. He denied absolutely that the directors had sold any shares, and said that 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 repeated warnings he had given at the same time as to the danger of the situation. Every word he had spoken on those occasions was fraught with danger. To have spoken otherwise but hopefully would have been to cause a catastrophe. He gave comparative figures to show the large fall in shares of other sound banks at the time of the crisis. Deferring to the power of compromise he said that if such 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 bal lot was then taken, and the result of the voting was that the provisional liquidators will be recommended to the Judge for the position of permanent liquidators. The voting was as follows Vigers—4oß9 *votes, 95,856 shares ; Eamsay Laruach 3327 and 77,625; Simpson, 2687 and 59,212 ; Begg—234l and 48,468 ; Brown—2o23 and 42,404.