Colonial Bank Affairs.

Thames Star, Volume XXIX, Issue 8605, 9 March 1897, Page 2

Colonial Bank Affairs.

EXAMINATION OF MR MAC-

KENZIE

(Press Association.)

Duxedin, March 8,

The examination of Mr Mackenzie ' commenced at the Supreme Court this i mc-raing. It will last the entire day. jMr Solomon, assisted by Mr Brent, I represents the liquidators, Mr W. i B. MacGregor watches on behalf of the shareholders' committee, and Mr Hosking represents Mr Mackenzie. Mr Sim applied to appear to watch the interests of Mir Ryley, but the Judge said there was no reason at that juncture for him doing more than suggesting questions to the liquidators' counsel.

| The examination is likely to last ' several days yet. It is impossible in. a procis to give more than the scope of the examiua ion. Questions were directed to elicit why effect was not given to the reports of the inspectors , and managers as to the bad and doubtful debts. Witness said there was all the difference in the world between the estimate and the actual fact. It was, however, the case that in 1893 there still remained £16,000 of bad debts. In 1894 Mr Watson's estimate was £74,000, so that they were £58,000 worse off than in the previous year.

Mr Solomon: Mr vV*t.#icn estimated that you should write off £58,000 that half-year, and the directors decided to -write off £20,000. Under what estimate did you arrive at that ?

Mr McKenzie: Under deed of settlement. It did not remain with Mr Watson nor with me to say what were bad and doubtful debts, it remained with the Board. £19,000 was apparently a lot of accounts that had their losses denned

Mr Solomon : The Inspector's estimate was disregarded ? Mr Mackenzie: I don't suppose the Board completely disregarded it, but they took it into consideration with other considerations.

Mr Solomon : Did they come to the conclusion that it was incorrect ?

Mr Mackenzie : No, I canuot say I ever heard that suggested. Mr Solomon : In 1894, instead of writing'o^E £37,000 that your manager suggested, you only wrote off £19,000 ; how did you arrive at the conclusion that tho manager was wrong ? Mr Mackenzie: Simply because of circumstances that must have guided us at the time.

Mr Solomon: You cannot give a more definite answer ?

Mr Mackenzie: I cannot give a more definite answer.

Mr Solomon : In plain English, the inspector and manager indicated to the directors what provision it was, in their opinion, _ necessary to make for bad and doubtful debts, and the directors did not accept that, but made a valuation of their own ?

MrMaekenzio: That is it exactly. Witness was examined at length as to the value of the securities given by the Hon. Mr Ward with his promissory notes for £55,150.

Witness declined to say what was tho real commercial value, because half of the securities was contingent upon the carrying on of the Association. He denied that it was written off. It was an attempt to keep the Farmers's Association on the rails. They at that time plnced some value on Mr Ward's personal liability.

The examination will lie coutinmed to-day.