Bank of New Zealand.

Feilding Star, Volume XVI, Issue 79, 27 September 1894, Page 2

Bank of New Zealand.

FIVE tfEW DIRECTORS AP- . POINTED. (PEE PRESS ASSOCIAIONJ. Wellington, Sept. 26. A special meeting of the shareholders o! the Bank of New Zealand was tield to-day to eleot five directors. &.bout fifty were present. Mr Murray presided. The chairman said it waa not held to say anything about the Bank's affairs. He had undertaken a special mission with regard to the guarantee of two millions, which would add strength and stability to the Bank. As to the right and duty of the Goteminent to appoint a president and Auditor, some people thought political appointments will be made. He felt confident Government would make good selections. It was quite erroneous to suppose Government could know anything about confidential affairs. The President will only interfere to Btop improper business. As to proposed amalgamation with the Colonial Bank, he said the chief motive in promoting the project was to add largely to the business and therefore to the profits of the Bank. He believed that at first the Government was favorable to the scheme and that some circumstances must have arisen to change their views. He proposed fhat the Hon W. W. Johnston, Messrs W. Booth, M. Kennedy, T. G. Maoarthy, and Richard H. Glynn be elected new Directors. He explained the London Board had resigned. The chairman said the shareholders were liable to the Government tor £10. Mr McKenzie said shareholders of the bank had been very roughly treated by the Government. The bank had formerly rendered Government great service and had now a right to expect every consideration in return. He failed to see how the Bank had drifted into its present position, because not long since the business was reported to be sound. Mr Murray explained the necessity for applying for the Government guarantee arose from the fall in profits, not so much of the bank as the Es* tates Company, and trade was bad. Therefore the Directors found themselves unable te pay a dividend. Other shareholders thought greater information should be given, but Mr Murray explained he was not there to discuss the bank affairs. Mr Murray said all branches of the bank were paying, but the position was that they were not paying enough, and he said the bank could do twice the amount of business without any appreciable addition to the expenses. No bank in the colonies, he said, had faced a position such as this bank had on two occasions. He fixed on five as the number of Directors ohiefly on the grounds of economy, and that large directorates were undesirable. Mr Pyley, of Dnnedm, deprecated fault finding, as those who had been the cause of the bank's position were not here. Circumstances had been operating lately which brought down f alues, and the bank wa» among other sufferere. He trusted.no undue hardships would be placed on shareholders in the way of calls. He supported the power given to Government to appoint the president and auditor. The Board nominated by Mr Murray's motion was then put and carried. The Hon W. W. Johnston, on behalf of the Directors, said they would aot inflict any hardship on the shareholders. The meeting then closed.