SOUTHERN FEELING.

Dominion, Volume 6, Issue 1853, 12 September 1913, Page 5

SOUTHERN FEELING.

MEETING HELD. CANTERBURY SHAREHOLDERS. (By Telearraph—Preo» Association,) Christcliurch, September 11. A meeting of the Canterbury shareholders of tlio Bank of New Zealand was held this afternoon to consider the proposed legislation aifecting the institution. Ten shareholders wero present, representing shareholders holding 5000 shares in North Canterbury and 3000 in South Canterbury. Mr. A. 11. Turnbull presided. In tlie courso of his remarks, tho chairman said that if the Goyernraent choso to take over tho whole concern and buy out tho shareholders on an actuarial valuation it should do so, and lie supposed shareholders would submit to shell a courso, but so long as tliey were shareholders surely they wore en-

titled to equitable representation. It only required a chanco or Government, witli its attendant nominations to tho directorate, to divert (and even reverse) any policy of tho bank, and possibly the result would lead to chaos and disintegration of business in recent years merchants had found tho policy of tho bank interfering with their business by computing against them, practically in active opposition. It was just in consequence of t-lio bank's departure from purely banking business that the original troubles occurred which led to tho reorganisation and extensive writingoff ot capital in 1898, and the abolition of this business and a restriction of banking business led to its -vastly improved position. Ho suggested that tho policy and management of the bank during tho last few years should be brought under review, though lie did not see how this could be done owing to tho fact that tho directors who represent tho shareholders were in a hopeless minority. They would undoubtedly find, he went on to say, that if tho bank's present policy was continued merchants' clients possessing business ill exchanges of considerable valuo to the bank would bo forced to reconsider their position. They might also possibly find that in tho near future au impecunious Government, through its nominees, might stress the bank to such ■an oxtent that tho consequences might bo seriously felt by tho wholo community.

Mr. John Studholmo moved a motion drawn up by the chairman, on tho lines carried at tho Wellington meeting of shareholders.-

Mr. Studholme pointed out that tho Bill was almost word for word a copy of tho proposals submitted by Mr. Beauchamp, chairman of tho bank's directors, and he could only hope that the Government, in bringing down tho Bill, did not scrutinise it as closely as it should have done, but had relied chiefly on the fact that it was brought down by tho chairman of tho bank, forgetting that tho chairman was in tho position of a'partisan, and that the proposals had been strenuously opposed by the shareholders, directors, and by the wholo body of the shareholders. Mr. Macintosh, an ex-manager of tho bank, in an open letter to Mr. Massey, had given repeated, instances where tho interests of. the bank had. suffered owing to-political exigeiicios. . Amongst tho statements made by Mr. Macintosh was that "a large interest was created in tho bank on terms that were unmistakably unequitable, and, without consultation with tho other" side, it was a pure case of violent entry.H Mr. Studholmo also expressed the opinion that _ tho proposed increased capital was entirely unnecessary, and very much in excess of requirements. .Referring to tho fact that fully one-half of the bank's shareholders rcsido in Great Britain Mr. Studholmo said that,, if the Government proceeded to do what they (the shareholders) considered a gross injustico, tho effect on the investing public at Home might be very far-reaching. Their confidence had received a shock in tho past (whether -justly or not, he was not prepared to say) in connection with the 'Dominion's treatment of the shareholders in tho Midland Railway Company, and ho feared that tho Government's proposals in respect to tho bank would materially increase tho number of people in tho Old Country who believed that those controlling New Zealand's affairs ponfused right with might, and were gradually _ losing all conception of honesty and justice. Mr. P. Grant seconded the motion. Mr. Geo. T. Weston supported it, and contended that the Government had lwen adequately recompensed for assisting the bank in 1894 and 1895. It was stated that most of the shareholders were new ones and speculators, but there were a fairly large number of the original shareholders. Ho cited tho case of 0110 whose shares had. cost him £23, and who was holding them in tho liopo that their market price would rise to that figure so that 110 might get

his money back. If tho Bill ivoro passed, lie would liavo no chance to got more tlian one-half of his money. The motion was agreed to unanimously.