The Sun. — 1855-12-22 (London, England)

LONDON CUARTNRED BANK OF  USTI-MI lA.  1 0 vieg to the proposed suspension of a dividend, there teas a nurnerons attendance at the meeting of the Lon'on Chartered Bank of Australia held yesterday, great anxiety hei!r evinced to ascertain the cause of the large 1 .uses incurred. Dr. Duncan Dunbar, the chairman, pre-ided, and the first business was the reading of the 'sport. When the fact was intimated that the total of bad and doubtful debts for the half-year is 35,4501., which will absorb not only the pr fits, stated at 16,250/ , and the contingent and reserve funds, but also leave a balance of 7,743/ at the debit of profit and loss to be provided from the operations of the current half-year, there was great disappointment, and impatience was die'laved for explanations. The chairman, in moving the adoption of the report, entered into the unfortunate results of the management in the colony. Of the total of 35,400/. regarded as irrecoverably lost, the largest item is 23,000/ , and in connection with this the particulars are as follows :—When the bank was first established in Victoria much difficulty was expe. rienced in obtaining remittances, and, bills not being always available, customers could not be accommo. dated. Fearing a loss of connexion, arrangements were made c, ith a firm for the purchase of gold at the diggings, which was drawn against as occasion required. In the course of time the arrival of the escorts became delayed, and, instead of waiting for the receipt of the gold dust. a Ivanc3s were made to an amount far 6,70.. a ie., nmti, 0.-;sii.,ity named. Subsequently Messrs. Jamieson and Moore, the house in question, became in• volved in other liabilities, and one of their agents at the gold fields having committed suicide, the account was brought to a stand. Security was then taken for the amount ; hut, according to the law, it was not held long enough previously to bankruptcy, and their manager was compelled to forego the mortgages for the benefit of the general creditors. Another loss of 2,200/, has arisen from a forgery in Sydney, and the remaining 10,0004 his been occasioned by the ordinary operations of dia. countinr, &c. This latter amount, considering the pre'. sure experienced in Australia, is not regarded as excel• sive upon the employment of a capital of 550,0001. Under these circumstances, it was stated, the directors believe it to be the most prudent course to suspend the dividend temporarily instead if adopting any ether expedient. With respect to the future it is antic' rested that satisfactory results will be attained, bu further advice; are awaited with anxiety. An impression was mentioned to have gained ground that the bank will require additional capital to carry out further operations, but, so far from this being the case, it is pro. posed, with the sanction of the shareholders, to apply to the Treasury to extend the period for the payment of calls upon the new shares. After the statement of the chairman, which was favourably received, a long discuseion ensued as to the parties who were chiefly responsible for the mismanagement, and it appeared to be the opinion of the great majority that the conduct of the local board and Mr. Falconer deserved reprehension. The recall of the latter, who was engaged from his extensive colonial experience, and the appointment of a successor will, it is hoped, place the business of the establi.hment on • sounder footing, and enable the directors to resume divi. (lends at an f-arli.-r period. It was pointed out that the • sudden revulsions in Australian commerce have before placed similar institutions in peril, but that, with few ex ceptions, they have eventually recovered their position Attempts having been unsucce efully made to pass con dernnatory amendments, the report was almost mr,ani- 1 mously ,arried, an ! the proceedings were concluded with v tee of thanks to the London direct,,rs for their straight. forward expiansitiens.