NATIONAL BANK OF NEW ZEALAND.

Marlborough Daily Times, Volume II, Issue 159, 28 September 1880, Page 3

NATIONAL BANK OF NEW ZEALAND.

The General Meeting of the Shareholders in the National Bank of New Zealand (Limited) was held on Aug. btli, at the City Terminus Hotel, Cannon-street, Mr Charles Magniac, M.F., presiding. The manager presented the Report of the directors, which showed a gross profit of £83,332, out of which, after providing for all charges, the board recommended a dividend at the rate of 6 per cent, per annum free of income tax.

The Chairman desired at the outset to explain that he had been suffering from ill health for some time, and hence his absence from some former meetings. From the perfunctory attendances lie had been able to give at the bank he found it in a perfectly sound condition, though, of course, lie had to go to a great deal upon hearsay. But the continuity of management and direction had been maintained, and the general policy of the board decided upon after mature deliberation fully carried out. The business of the hank in London was so well in hand that the hoard thought it a favourable opportunity for the general manager, Mr .Steele, to visit the colony, inspect the branches, and make himself personally acquainted with all the managers and officers. He impressed upon them a fact which could only he done well by oral communication, namely, that the board of administration in London were solely responsible for the management of the bank, and that the officers must obey the instructions sent’out to them. His experience, and that of many others, was that wherever, large losses had been made by a hank transacting business in English or foreign possession at a distance whilst the directorate was in London, they had occurred in consequence of the hoard of management in London not having sufficient control over those at a distance. Mr Steele had brought back a report which was most valuable. Acting upon it the board had dismissed the managers of two branches and removed a third to a position of less responsibility. It was a matter of deep mortification to the board that losses should have been made which were preventable supposing the instruc Jons of the hoard had been carried out, but after the visit of Mr Steele there was no reason for supposing that there would be any repetition. Looking at all the circumstances, he thought that the shareholders would be satisfied with a G per cent, dividend and a knowledge that their capital was safe in the bank. Having alluded to some items in the accounts he concluded by moving the adoption of the report and accounts. Mr Dudley R. Smith, the deputy chairman, briefly seconded the motion. Mr Magnay supported the motion, though lie could not agree with the chairman in thinking that G per cent, dividend was a satisfactory one for a bank transacting business in a colony. Dr Chapman was dissatisfied with the dividend, and so far from agreeing with the chairman, thought that if G per cent, was to be the maximum dividend they could earn, it would be better to close the bank and return the shareholders thencapital, which ought to be more profitably employed. As a shareholder in several other banks trading in the colonies, he found this bank paid the smallest dividend of any. He put it to the board whether, when the expenses were so large and the profit was so small, it was worth continuing the business.

Mr J. Ross sympathised with the previous speaker, and could not join in the con gratulations of the chairman. Analysing the accounts, he said the bank had made LIO,OOO less profit, and had paid L3,Q00 more expenses, which Ire thought anything but satifactory. The chairman said that if the shareholders imagined he pointed to a 6 percent, dividend as the utmost the bank would be able to earn, he had been greatly misunderstood. What he desired to convey was that considering the unfortunate circumstances under which the business bad been conducted for some time past, 6 per cent, return on the capital was a very very good one, and one which would in all probability be incrersed in the near future. The report was adopted and the dividend declared. The retiring directors and auditors were re-elected, and the proceedings closed with a unanimous vote of thanks to the chairman, ■" d;