Colonial Bank Affairs.

Thames Star, Volume XXIX, Issue 8606, 10 March 1897, Page 2

Colonial Bank Affairs.

(Pee Press Asbooiatio*,)

Dunedin, March 10. When the examination was resumed, Mr Solomors directed his examination to various phases of the Ward Farmers' Al ociation account, and the transactions by which the Association's overdraft was reduced at balancing time. Witness said he discussed a £35,000 cheque transaction with the Chairman of Directors—a curious thing for Mr Ward to do, but so far as he could recollect it had not been brought before the Directors as a 1 body. It was said he did it because of the implied authority in the letter. No official explanation was asked for from either Mr Fisher or Mr Ward re the oats transaction.

Mr Mackenzie said he did not know that he had definitely inslvuctcl Vigors when he sent him to Invercargill to draw on London with respect to whatever oats he could give, What was in his mind was that the matter should be looked iuto and the credit fixed up to be operated. It never occurred to him to tell Vigirs to satisfy himself that the oats were really in the store. He never doubted their existence. Mr Mackenzie also gave particulars respecting Ryley's account, and said that constant requests were being made to the Dunedin manager to keep it down. With reference to the £15,000 which ;he told the Hon. G. McLean would clear the Bank, he said the thing had gradually grown upon him owing to the depreciation of property. Mr Hosking (who appeared for Mr Mackenzie, then examined the witness who gave a system which he found in operation, of appropriating sums to meet losses. He then gave a history of. the Ward Farmers Association account, quoting extensively from letters to and from the head office and Invercargill branch, and the Ward Association to show that the account was closely supervised and every effort made by the head office to get it reduced ; the suggestion being made that it was owing to the branch manager at Invercargill that the indebtedness was increased. Extracts were read from reports of managers and inspectors, who repeatedly reported on the valuable nature of the Ward Association account.

In reply to the Judge, who referred to the discovery of a shortage of about 15,600 bags of oats, Mr Mackenzie said that the Invercargill manager having been in the grain line himself, he (Mr Mackenzie) had every confidence that he would see that the warrants were supported by oats. The examination was then adjourned till Friday.