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0 NATIONAL BANK OF WALESI…

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0 NATIONAL BANK OF WALES I LIQUIDATION. — • — [ COMMUNICATED .] Those of the readers of the Glamorgan Gazette taking any interest -n commercial matters cannot fail to have been "mnressed with dismay at the first report of the liquidators to the meeting of share- holders in this undertaking, held at Cardiff on the 24th ultimo. Although it was expected that heavy deficiencies would have to be reported, it was not thought possible that such reckless trading had been carried on by the late directors of this bank, as the disclosures of the liquidator revealed. After an investigation extending considerably- over a year, the liquidator had the sad intelligence to convey to the shareholders that as against a liability on current and deposit accounts of- £ s. d. £ s. d. JE1407520 1 8 There was in hand cash 114463 7 5 | Amount recovered from customers of the Bank..926395 7 6 Further amount which the liquidator hoped to realise.. 151703 8 9 1078098 16 3 Goodwill credited by the Metropolitan Bank 110000 0 0 i3Q2562 g g Leaving a deficiency of £ 104957 18 0 This deficiency is, of course, subject to realisation of certain of the assets not yet closed, and the liquidator gives but little hope that the deficiency will be materially reduced. With these figures before us we can estimate roughly what the call per share is likely to be. The number ot shares of .£20 each issued by the National Bank of Wales, upon which JELO per share has been paid, is 22,500, which would give a call of, say £4 13s per share, assuming of course that each con- tributor paid his quota, but as one of the directors is a bankrupt, who also happens to be a large shareholder, and cannot, therefore, be countei upon for his call, while others may be in the same position, the amount per share to be eventually called up is likely to exceed the above estimate of £4 13s. Seldom, as the liquidator informed the meeting, did it fall to the lot of one in his position to reveal to shareholders such an awful position in the affairs of any commercial undertaking. The startling announcement was made that no less a sum than Y.559,968 18s 2d had been lost in trading, and the following items were given as some of the heavy losses:— 1: Amount standing in the books of the Blaenavon Branch, with which the liquidator stated it had nothing to do, tmvincr been transferred from head- quarters. 30000 Amount advanced at Cardiff 2500C These two sums admitted by customers (to whom it was paid) to have been lost in Stock Exchange dealings. 5500( Mr F. R. Crawshay (which the liquidator hoped to reduce by £10,000 to £ 15,000).. 6600( Colonel Howell and Mr H. E. Collins on collieries 3991C Humby, a bankrupt Page „ 16000 Murphy 13282 Lucas „ 10382 Messrs Williams (North Wales) 25000 Jenkins, manager of branches 6000 A Cardiff builder 12000 Briefly summarised the losses were classified at follows Losses wiped off by directors Losses on the principal accounts ^uu. Losses at Cardiff and 32 branches in addition, as ascertained by the liquidators 11858( Total £ 52308 £ As we grasp these figures we are naturally appallec at their magnitude, and one naturally wonders how, with due supervision, such disastrous results coulc have bten brought about. The explanation is given by the Liquidator, who in the course of his report stated that They (the Directors) had scattered the funds of the bank amongst irresponsible speculators." The failure of the National Bank of Wales is due to indiscriminate overdrafts without security, the payments of high dividends which had not been actually earned, insufficient oversight by the directors themselves, and too much power being placed in the hands of the general manager—addec to these must not be lost sight of the ineffective system of auditing, which allowed balance sheets tc be presented to the shareholders on the faith of which investments were made. One cannot fail to sympathise with the existing shareholders, who will have to bear the brunt of any call that may be made, and it is hoped that in the interests of commercial morality, no time will be lost by them in making the parties responsible for I such breaches of trust amenable, to justice. One word aa to the Metropolitan Bank on the faith of their taking over the National Bank of I Wales, many persons were induoed to purchase fresh shares, which they have had cause since to regret- and for those shareholders who have lately come on the register, it would have been far better if the doors of the National Bank of Wales had been closed long ago. It will be a source of gratification to everyone if a better result than that foreshadowed by the liquidator, is attained; and while hoping that as small a call as possible may have to be made, let there be no delay in arraigning those who may nave been guilty of an abuse of trust.

ABERAVON COUNTY POLldE,

ABERAVON SCHOOL BOARD.

----._0._-PONTYR HIL.

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