VICTORIA.

Lyttelton Times, Volume XI, Issue 643, 5 January 1859, Page 3

VICTORIA.

We have Melbourne papers to the 15th ult. Till the arrival of the English mail, the only news of interest concerned the affairs of the National Bank, in which establishment a feud has for a long time been proceeding between Mr. Cruikshank, the chairman of directors, Mr. Hughes the manager, and a body of shareholders on one side, and a "dissentient" body On the other. In Mr. Cruikshank's absence, the dissentients achieved. Mr. Hughes's disniissal. The 'Argus' strenuously supports the Cruikshank party, the 'Age' and 'Herald' as strenuously abuse them. The last named paper in its issue of the 6th gives the following as its account of the scene. The conclusion of the affair is not given us:— .. :

The National Bank climax has indeed come to pass! If the suspension.of Mr. Hughes on Friday caused no small excitement oh that day, how much more was created on Saturday by " the fact of Mr. Cruikshank having resigned ? Yes, in ' accordance, with our confident belief, and the opinion we have all along expressed of what must be the termination of the battle, the grand stumbling-block to "the prosperity of the illused institution has been' at length removed. Mr. D. A. Hughes is suspended, and Mr. Cruikshank has formally resigned. The self-willed, chairman and .the!dver-clever-general manager are no longer the presiding deities at the board. The one has voluntarily thrown up his office, the other has been suspended and ordered off the premises. For Mr. Cruikshank considerable sympathy will be felt, as

he may be said -to some extent at least to have all along sacrificed himself to his friend and protege; but in proportion as this feeling is indulged for the chairman, will the absence of any similar regard on

the part of the manager for the salvation of Mr. Cruikshank, leave Mr. Hughes to fall without pity or regret. The circumstances which have come to

light during the last week so completely justify the discomfiture which has come upon these two gentlemen that we deem it unnecessary to-do more at

present than to lay before our readers a'narrative of Saturday's eventful proceedings. We will however add our hope and belief that the triumph gained by those shareholders who have faithfully kept their hands to the plough throughout the rugged work, will be used only to the service and advantage of the whole body of proprietors, and

that their joy at success will only ho indulged in the most moderate and forbearing spirit. It will be seen that a public meeting of shareholders is to be

holden on Wednesday, for the : nomination and recommendation to the board of Mr. Cruikshank's successor—the course before suggested by the dissentients to enable the shareholders to choose, and, the'board to elect, in conformity with the deed of settlement. The choice of a new director will be a serious duty, and we have no doubt that a sound discretion will be exercised. Much work has to bo done to place the bank on a right footing, and to overcome the shock it has received; but there seems to be no reason why its success should not still bo great and permanent. Before Messrs. Cruikshank and Hughes had been dissociated from the bank for a few hours tho shares had risen in the market from 25 dis. to par, at which price they will be found

! quoted.by tile-brokers in our lists for to-day. The i excitement on Saturday commenced at nine o'clock a.m., and by ]() a number of shareholders had assembled in the neighbourhood of the bank, anxious' to hear the result of the board meeting relative to tho suspension of Mr. 1). A. Hughes, the general manager, which hud been agreed to on the preceding day. At twelve o'clock, the time at which it was expected that Mr. Hughes was to leave the premises the shareholders entered the bank, when Mr. Houston, one of tho directors, opened the board-room, door, and invited them in, lie stated that Mr. Cruikshank insisted upon retaining Mr. Hughes* notwithstanding the vote of suspension, and that he insisted upon putting resolutions to the hoard while the solicitor of the company was present. He said further, that the directors had objected to this proceeding, but that. Mr. Cruikshank disregarded their objections. The chairman rose, and stated that the shareholders were acting illegally in coming into the room at ail. The shareholders argued that they stood upon their rights as co-proprietors with the directors, and they insisted on the suspension of ■ Mr. Hughes. The chairman replied that they would not consent to the suspension, and that the resolution was illegal. Mr. Hughes offered to read counsel's opinion on the point, but the shareholders declined to hear him. The chairman thereupon declared the board meeting adjourned. He left the chair, and attempted to leave tho room; but one of the shareholders went to the door and opposed his exit, with the general approbation of the shareholders. Mr. Cruikshank returned to the body of tho meeting, and expressed his determination to resign in the event of Mr. Hughes's suspension being insisted upon. Several shareholders hereupon expressed their determination to insist upon Mr. Hughes's suspension. Mr. Cruikshank became very indignant, and said, with some warmth, "I resign my position as chairman of the National Bank of Australia. I shall sell my shares, and abandon the whole concern." The shareholders replied that that was just what they wanted, and cheered the declaration. Mr. Cruikshank then observed that it was very hard that he should lose money by selling his shares at a discount, in consequence of the proceedings of refractory shareholders. He was met by the reply that the persons in the room would purchase his shares at par, or find others who would do so. Some of those present suggested that •Mr. Cruikshank • should prudently avail himself of .the'present opportunity to confirm the minutes of the board meeting of the previous day ; that by doing so he woulcbrelieve himself from the awkward position of haying, supported Mr. Hughes when he found his power had deserted him through,the vote passed.during his absence ; and at the same time, he would improve the value, of the shares ten or fifteen per cent. Mr. Cruikshank declined to accede to those representations. He. would; not confirm the suspension. Mr. Porter went up to him and said, ",You shall not resign—don't be so foolish" and used many arguments to prevent his doing so. Mr. Hughes also saidj " Don't resign ; keep your place." He, too, endeavoured, though in vain, to prevent -the chairman carrying out his determination.- A shareholder remarked that Mr. Cruikshank displayed, though at the last moment, more manliness than either Mr. Porter or Mr. Hughes seemed capable of. Those gentlemen had better, he said, let Mr. Cruikshank act upon his own manly impulse than endeavour to persuade him to an opposite course. Mr. Hughes was told that he was now beaten, and that it was ridiculous for him to attempt to retain his office. Mr. Cumberland remained passive during the whole proceedings. Mr. Cruikshank then retired from the room, and on leaving the premises, informed the porter that he had resigned, and had no more to do with the bank. Messrs. Houston, Brown, and Lempriere, then requested Mr. Hughes to retire. Mr. Hughes declined doing so.. A statement was then drawn up and signed by all the shareholders present, setting forth that Mr. Cruikshank had resigned the chairmanship of the company in their presence. Mr. Hughes was again requested to leave ; and, after considerable persuasion, he left, protesting against the legality of the resolution and the proceedings of the shareholders. He again offered to read " counsel's opinion;" but the shareholders indignantly declined to hear it, observing—"We are proprietors. If we have done you any injustice you have your remedy in a court of law." Mr. Lempriere now requested Mr. Hughes to leave the bank, as the term of notice had expired ; but this he appeared very unwilling' to do. In vain he "protested" and declared the steps taken to be illegal. He was quietly informed that his time was up, that he was a trespasser, and if he would not leave the bank of his own accord, he would be put out. Again he protested against "such ungentlemany conduct," and wished to know if " violence was intended." He was told he must go, and if it'was necessary he would be escorted to the door. For some half hour this parleying was carried on, Mr. Hughes" trying to compromise by promising to " leave the room." " You must leave the bank," was the reply, which at length Mr. Hughes did, taking with him some of the keys. Meantime several policemen were drawn up outside the house, having been sent, for, it was said, by Mr.^ Hughes. But the bank was now clear of both chairman and manager, and the shareholders present set themselves to business. Mr. Gillies the Melbourne manager was interrogated about the Adelaide transactions, and it transpired that up to that time the board were not in possession of any acknowledgment for the £10.000 sent to Adelaide, nor of any receipt for its deposit in any bank. He stated that on applying to Mr. Cruikshank on the subject he merely replied, "It's all right." And so it is to be hoped it will prove. The shareholders and members of the board present decided on calling a public meeting on Wednesday, for the election of a new director, and, after concluding some other arrangements for the safe and satisfactory working of this mismanaged institution, the parties separated well satisfied with, their day's doings. Telegrams were sent by the board to' Adelaide and Geelong, and notices of the resignation were posted about town. Humours of war, law, and jaw, were rife all the evening; and it was said that Mr. Cruikshank would not stand by his resignation because it was only verbally given..: But we think we know enough of Mr. C. to say that he is not likely to take any such course. As to Mr. Hughes, we shall be quite prepared to learn that he has retained the whole bar, and set all the attorneys on , the look-out for jobs.* But. we will end this " strange eventful history " as we began it—by expressing our conviction that the bank, will now recover itself, and that the proprietors have much'cause to be thankful that they are rid of their Chairman and General Manager.