COLONIAL BANK LIQUIDATION.

Taranaki Herald, Volume XLVI, Issue 11100, 15 December 1897, Page 2

COLONIAL BANK LIQUIDATION.

A SUPREME COURT ACTION. [PEK TRFS3 ASSOCIATION.] Donedin, December 14.—At tho Supreme Court to-day, a case was commenced in which II Brooks & Co., of London, sued the liquidators of the Colonial Bank, claiming £6500 and an order of the Court for an account of sales of oata held by tho J. G. Ward Association, and covered by certain warrants. The case arose out of a letter of credit given in April, 1894, for £20,000 to the Ward Farmers Association, which authorised the Association to draw to that extent on Brooks and Co. on oats in store, drafts to be followed within ninety duys by shipping documents. The letter w;is held by fha Bank and two bill** for t4,250 and £2,250 were discounted wish tbe Bauk, acuompauied by certain documents or warrants. The Bank, it was allege*!, led Brooks and Co. to believe they hdld bond war rnnts for the value of the oats, and the bills wero paid by Brooks and Co. As w known, there was found afterwards a shortage of oats. Mr G. Birch, manner of the Colonial Bank at lovercargiU, aud Mr Joha Fishor gave evidence to-<iay. Tho latter s cro<sexamination was uot concluded.