PASSING OF A BANKER

Evening Post, Volume CXXVI, Issue 83, 5 October 1938, Page 14

PASSING OF A BANKER

DEATH OF SIR HAROLD BEAUCHAMP

DISTINGUISHED CAREER AND SERVICE

Sir Harold Beauchamp died this morning. He was an outstanding personality in the business life of Wellington for over 50 years, and recognised as one of the leading authorities on finance in New Zealand. In the latter years of his life he paid several visits to London at intervals of three or'- four, years. He had many resident banker and other friends connected with what is called high finance in the City of London, in New York, and he kept in close touch with many distinguished authorities on finance in the United States and on the Continent. Sir Harold was best

known, perhaps, as Chairman of the Board of Directors of, the Bank of New Zealand. He was appointed a director of that institution in 1898, and was elected its chairman in 1907. He held that position until 1911, when he obtained leave of absence to visit England, and on his return to the Dominion he was reapppinted, and elected chairman in 1913. He held that position until March, 1922, when he again relinquished it to pay another visit to England. IN TIME OF CRISIS. When Mr. Beauchamp (as he then was) joined the board of directors of the Bank of New Zealand that bank was passing through a crisis in its history. Its shares, paid up to £3 6s Bd, with a liability of equal amount, were actually offered for nothing, plus a fbonus of £30, so anxious were sellers to free themselves from the liability for the uncalled capital. Shortly afterwards the shares were offered for 2s 6d and 5s per share, upwards. At that time the discrepancy between the book values and market values of the assets—then being admin-j istered in globo by the Assets Realisation Board—amounted to over one million pounds sterling, and, by statute, the bank was compelled to totally reduce this deficiency before making any return to shareholders in the way of dividend or otherwise. This was done within a few years. The Assets Realisation Board was dissolved and the bank then commenced to make returns to investors in its shares. Start- ! ing with a modest 5 per cent, per j annum the rate of dividend, increased from time to time until, prior to the passing of the last Act of Parliament, providing for capitalisation of a portion of the reserve funds, and the gen- [ eral rearrangement of the share capital, shareholders received 15 per cent, on the par value of their shares, which was then £6 13s 4d, the previous liability of £3 6s 8d per share having ; been called up. Under the rearrangement of capital referred to, a further sum of £3 6s 8d per share was transjf erred from the reserve fund to the credit of capital account, t the paid-up value of shares therefore being £10. Each share was subdivided into ten shares of £ 1 each, fully paid, and the dividend paid oil ordinary shares for 1932 was 14 1-3 per cent. It was subse-, quently reduced to 11£ per cent. FROM THE BOTTOM RUNG.

Sir Harold Beauchamp was born at Ararat, Victoria, on November 15, 1858. With'his parents, who were of old English stock, he came to New Zealand in the barque Lalla Rookh • and landed at Picton in 1861. There his father established himself in business. As a boy Sir Harold resided in Picton and Pelorus Sound until 1869, when the family migrated to Wanganui. There he attended Wanganui Collegiate School for two years and at the age of 14 entered the office of his father, who .carried on business as auctioneer, ship-owner-produce merchant, stock and station agent in Wanganui. He had much to do with stock in his youthful days and frequently acted as drover. In company with a friend he drove a large mob of horses overland from Wanganui to Wellington in 1874, taking a week on the journey. He was essentially a self-made man and proud of the fact.

In October, 1876, he came to Wellington and was employed as clerk in the firm of Beauchamp, Campbell, and Co., but severed his connection with that concern in May, 1877, to join Messrs. W. M. Bannatyne and Co. At that time the partners were Mr. W. M. Bannatyne and Mr. A. R. Baker, and the staff consisted of an office junior and one storeman with a travelling representative. Mr. Beauchamp then became partner with Mr. A. R. Baker in 1889. On Mr. Baker's death in 1894, Mr. W. I. Nathan became associated with Mr. Beauchamp as partner in that business which was converted into a limited liability company in 1900. As representative of the ratepayers of the city of Wellington Sir Harold was a member of the Wellington Harbour Board for 13J years, three of which he served as chairman.

In 1901 he was a member of the Federation Royal Commission which was appointed to inquire as to whether or. not New Zealand should federate with! Australia. The report of the Commis-j sion was unanimously against such a proposal. In addition to- his close association with the Bank of New Zealand as director and chairman. Sir Harold was chairman of the Advisory Board for New Zealand of the Royal Insurance Co., Ltd., a director.. of Imperial Chemical Industries in Australia and New Zealand, Ltd.; a director of Berlei (N.Z.), Ltd.; chairman of the Wellington Gas Co., Ltd.; director of the Gear Meat Preserving and Freezing Co., Ltd.; chairman of the Wellington Patent Slip Co.,' Ltd. He was Consul for France for many years and he had also represented the Republic of Chile in a similar capacity in Wellington. The New Zealand authoress, that talented short-story writer, the late Katherine Mansfield, was a daughter of Sir Harold Beauchamp^ | GIFTS TO THE* CITY. I Sir Harold's interests in the amenities of the city of Wellington included his association with thfe New Zealand Academy of Fine Arts, and he gave property in Fitzherbert Terrace, his former residence and grounds, of the