FORFEITED BANK SHARES

Dominion, Volume 14, Issue 1, 27 September 1920, Page 5

FORFEITED BANK SHARES

Sir, —I supposo in a day or two hence Parliament will be called upon to consider the proposed legislation that it is generally understood is being brought forward ancnt the Bank of New Zealand. It is to be hoped tbiat those responsiblo fo r it have remembered those poor shaitholders who were sacrificed in the holacust of 1898. Many of tbeso_ shareholders and their dependants sacrificed everything they possessed in,paying the first call of £1 Cs. Bd. that woo then made, with the consequence that when the second call of similar nroount was made they wore unable to pay it, and thoir shares wore forfeited. Tho hardships and sorrow thw poor people Buffered can even at this late period be somewhat eased by the Government and the bank authorities making it possible to graut as an act of charity ft sum up to, say, jC50,000, to easo tho distress that was then caused, ind in many cases still exists. The bank officials, some of whom wero tho causa of the condition that the bank got into, havo been -'ell provided for by'the contributions tho bank has niado to its superannuation fund. Only tills year Hi? bank litis made a contribution of £100,000 to that fund. I belicvo it is intended to write .<# (is. Sd. per eharo on tho present shares, but that will not bo of any benefit to those poor people whose shares were forfeited. It will only advantage tho wealthy Bcction of tl'/j people who were able to pay their calls, and those speculators who' obtained early information of such intentions and bought shares at pounds below tho present priefc. It must bjj remrmboreu that when these poor shareholders forfeited their shares they also lost their portion of tho noodwill of tho business. This goodwill today is probably worth, a couple of millions. It must also bo nimemlfcred that the only people who suffered wero thrso same shareholders. Tho Gc-*rnment -f the country has made enormous pro itsj tho officers of tho bank are tho hig.icst paid officials of the banks doing business in Nw Zealand, and it Is rumoured >J<at the directors aro to have their foes largely increased. It would only » an act of charity to do what I Biigecst,. and seeing that the bank la now making suoh enormous pronto and can afford (o give away iIOO.OOO in ono year tojte own employees it will make very little difference I to bank'. IW&.-I ■"fogj^