BANK OF NEW ZEALAND.

Dominion, Volume 7, Issue 1906, 14 November 1913, Page 10

BANK OF NEW ZEALAND.

BILL IN COMMITTEE. i INCREASE IN CAPITAL OPPOSED* The Bank of New Zealand Bill was further considered in Committee. The Hon'. D. Buddo moved" an alteration to Clause 3, to provide that tho further capital stock of one million pounds which the bank was empow.ered to create and issue in connection with tlio redemption of guaranteed stock should havo a currency "not exceeding ten years," instead of "not'exceeding twenty years." The Minister declined to accept the amendment, which was lost on the voices. Two Millions or Three? The Hon. J. A. Millar moved to alter the clause limiting the new capital, which "tho directors are empowered to raise with tho consent of the Minister of Finance," to two million pounds, instead of three million pounds, as provided in the Bill. He proposed to move another amendment lower down, to make the interests of the State and the iuterests of the shareholders equal. The Minister said he conk! not accept the amendment, and he hoped it would not bo pressed. It was not intended to call up the whole three millions immediately. As far as he knew, tho intention was to call up one million at once. To carry the hem. gentle- ■ man's amendment would he a distinct breach of faith with the bank. The amount of threo millions had been recommended by tho directors—and the Government representation was hero four to two —and agreed to by the shareholders.

Tho Hon. W. Fraser pointed out thit tho issuo of new capital depended upon the Minister of Finance, who could say what amount was to be issued and when it was issued.

Dr. ..A. K. Newman hoped tho amendment would not he carried. Tho House, ho said, could at any time pass a Bill to-acquire the bank if it chose.

Sir Joseph Ward thought the three millions asked for was too much, but he did not approve ef the idea of making the interests of the State' and the shareholders equal. He could not, therefore, support the amendment. If, howover, Mr. Millar could see his way to move the ■reduction on the understanding that the St.ito's interest was still to bo on tho basis of one-third, then ho (Sir Joseph) would support Mm.'' Tho Hon. J. A. Millar declared that in actual cash paid up tho State had in reality been a half-shareholder and desired to maintain that- position for the State. Ho felt it his duty to divide tho Hoise mi the question.

Tho Hon. D. Buddo supported, the reduction in tho amount of new capital, but did not approve of the proposed alteration in tho basis of interest.

The Minister again warned members that the three millions was a maximum and was not likely to he called up immediately But if the bank desired lator on to pay off the State's guarantee then it would require it ail. It would be far better if tho. State's guarantee was paid off later, and he hoped tho Committee Would pass tho clause. The amendment was defeated by 4.4 votes to 22. Uncalled Capital. The Hon. J. A. Millar moved an. other amendment, to have tho eft'eet of making all shares of all issues equal in nominal value/ The Hon. J. Allen refused to accept the amendment, pointing out that it would entail the calling up of all uncalled capital. Tho amendment was defeated by &1 votes to 23. _ Mr. It. M'Callum mov«d an amend, incut limiting tho right of proprietors in tho bank to increase their holdings. At present the maximum holding permitted to ■ one proprietor is 3000 shares. The Bill proposes to increase-tho number to 6000, but Mr. M'Callum moved an amendment prohibiting members from buying moro than 1000 shares of the new issue. This would make- the maximum holding 4000 shares. The amendment was defeated by 37 votes to 19. In Clause 13, Sub-clause (2), tho Public Accounts Committee had moved to increase the number of proxies to bo held by any one shareholder from 250 to 500. The Hon. W. Eraser moved to further increase the number to 1000. Tho amendment was carried on tho voices. • Mow Clauses Rejected. A new clause, moved by Mr. J. Craigio in tho direction of giving atl depositors interest at the rate of 2 percent, per annum, was put to a division and defeated by 42 votes 'to 13. A division was also taken on a new clause, moved by Mr. Craigio, and reading as follows:—The profits of the bank to be divided among tho shareholders shall not exceed 10 per cent, per annum on the paid-up capital. Where in any year the profits exceed the amount that may be divided among the shareholders the excess shall bo paid into a separate account, and shall be applied—(a) In payment to tho shareholders of tho amount (if any) required to bring tho dividend of tho preceding year to 10 par cent, per annum on tho paid-up capital; and (b) in or towards reducing tho rate, of interest payable on discounts and on overdrafts of the current accounts kept at the bank during the next succeeding year.'

Tho now clause was rejected by 41 votes to 16.

Tlio Hon. D. Bmldo moved to odd a new clause: "That the. charge made by tho bank for keeping an account shall not exceed tho sum of 2s. b'd. per annum."

Tlie new clause was rejected by 29 votes to 17.

Tim Dill was reported with amendments.

POST AND TELEDRAPH. The Post and Telerjip.lt AuieaidmeriU

Bill (tho Hon. R, H. Rhodes) was committed, and reported with amendments. ACCOUNTANTS BILL, Tho No\v Zonland Society of Accountants Amendment Bill (the Hon. F. M. B. Fisher) was committed. Mr. G. Witty moved to delete the clause which stipulated that it imuiibor may not resign from the society while he is in arrear with payments to the society. Tho clause was retained, tho voting being 35 votes to 17. The. Bill was reported without amendments, read a third time, and passed. AGRICULTURE BILL. The Board of Agriculture Bill (tho Hon. AV, F. Massi'.v) was committed. Tho short title was passed, and progress was reported, RAILWAYS AUTHORISATION. The Railways Authorisation Bill (ihc Hon. W. Eraser) was committal, reported without amendments, and rtail a tbiTd time. The House rose at 11.3,> p.m.