MEETING OF THE NEW ZEALAND COMPANY.

New Zealand Spectator and Cook's Strait Guardian, Volume VIII, Issue 669, 31 December 1851, Page 4

MEETING OF THE NEW ZEALAND COMPANY.

(From the New Zealand Journal, Aug. 9, 1851.,) On Wednesday, the 30th July, a general meeting of the proprietors of this Company was held at the New Zealand House, Broadstreet Buildings, to take into consideration the present condition of the Company, and to determine what measures should be adopted in consequence of tbe withdrawal of the Government measure. Mr. H. A. Aglionby, M.P, presided, an i was supported by Sir Henry Webb, Bart,, Mr. R. D. Mangles, M.P., Mr. John Abel Smith, M.P., Mr. Pilcher, Mr. Currie, and other gentlemen. There was a large attendance of proprietors. The Chairman, in opening the proceedings, expressed his regret that after so long a lapse of time, and after such lengthened negotiations with the Government, he had nothing to suggest to the proprietors towards relieving them from their difficulties. He believed the best course he could pursue on the present occasion would be to answer any questions that might be put to him, and make a clean breast of the whole affair, both as regarded the past and future. (Hear, bear.) The proprietors would naturally ask what was their present position. For sevetal months past endeavours have been made to come to some arrangement with the Colonial Office, and several interviews had taken place between Earl Grey and the directors upon the subject. Negotiations went on for a long time, but it would be tedious, indeed impossible, to put the proprietors in possession of all the proposals made and objections offered on either side during that period. At length they resulted in something which, though not satisfactory, was agreed to on both sides—namely, the bill recently before Parliament. When the bill was moved by the Under Secretary for the Colonies, an objection was taken by Mr. Gladstone, that the British Legislature ought not (he did not say could not) interfere without the previous consent of of the Local Legislature ; and on that ground he opposed the further progress of the bill. Nothing was left but to withdraw that portion of the bill to which Mr. Gladstone had objected ; and now the proprietors fell back upon their lien of £268,000 on the colony, bearing interest at three-and-a-half per cent. From what passed on that occasion, and from the public papers, the proprietors would have learned that notice was given by Mr. Adderley of certain alterations in the Canterbury Act, providing for clauses having for their object the borrowing of money on the land sales of that Association. It was proposed that a sum should be borrowed by the Canterbury Association, who should pay to the New Zealand Company about £26,000, for money advanced by the latter company, or rather, for

which the New Zealand Company became, and were still liable to Baron Goldsmid and the Union Bank of Australia, Those payments had been from time to time postponed. At the time those advances were made, the founders of the Canterbury Settlement were sanguine that the whole money would be provided up to April, 1850, and he (the Chairman) confessed that be shared the feeling that the New Zealand Company was putting its unpaid capital in no jeopardy. He admitted that he had been mistaken. (Hear, hear.) The directors of the New Zealand Company were pressed not to allow the Canterbury sales to be divulged, and were told that if they wished the Canterbury settlement to succeed they must give it to the last moment for payments, which was July 4, 1850. This placed the New Zealand directors in great great doubt and uncertainty. He (the Chairman) had always felt so sanguine of success that he had always been most anxious to promote the colonizing operations of the Canterbury Association. But there was another influence at work. Several shareholders thought that it was not desirable to continue the colonising operations of the Company; and there was amongst the shareholders so strong a feeling that the directors were mistaken that means were taken to induce the directors to abandon the undertaking, and the directors found that they had no other course to pursue than to act upon the suggestion. A general meeting of the shareholders was called, and it was proposed that the directors j should go on. A lengthened discussion took place, and it was determined that the seal should be fixed. The seal was fixed on the 4th of July, and from that time to the present the directors had been, most anxiously engaged in coming to some arrangement of their affairs. At that time the Cantetbury owed the New Zealand Company £26,000, besides a considerable amount for the sale of land. In the meantime, the New Zealand Company owed about £30,000, which must be provided as soon as possible. The directors have given a pledge to Baron Goldsmid and the Union Bank of Australia, for the payment of the money, and if it could not be raised any other way, t::o directors must have recourse to a call. All the clauses of the Canterbury Bill were now withdrawn, and the Government refused to allow any clauses for borrowing money by the Canterbury Settlement. If they were notallowed to borrow money they could not pay, and what lhe New Zealand Company was to do in the present distress and pressure of circumstances, he (the Chairman).did not know. The directors had done everything to promote tbe interests of lhe shareholders, and this was the result of their labours. He was almost broken-hearted, (or it really was a most disheartening thing to go on for so many months, and when the object appeared on the eve of accomplishment, to find themselves so thrown back, especial'y at so late a period of the tession. (Hear, hear.) A suggestion had been made during the course of that which, in the opinion of some, the members of the Canterbury Association might get over the objections of the Government to their borrowing powers. Tbe suggestion had been before the directors so short a time that he did not think it right further to allude to it. He had hoped to be able to lay before the shareholders some satisfactory statements at the present meeting, but all his anticipations had been broken down, and he was quite at a loss to know what course he ought to recommend.

Mr. J. A. Smith, M.P., thought that, under the circumstances, there ought not to be any concealment of anything from the shareholders. (Cheers.) With reference to the suggestion mentioned by the Chairman, he should recommend that the particulars of it should be given to the meeting. The Chairman said it was not fr m any wish to keep the shareholders in the dark that he had refrained from mentioning the particulars of the suggestion. It had not been before the directors more than half an hour, and had not, therefore, received due attention from them. It was a suggestion to obviate the objection of the Government to the power of borrowing money. It was not a proposal which he had any right to say was insisted on or desired by the Canterbury Settlement, except to get quit of Lord Grey’s objection, which was based upon a supposition that to increase the land debt of the colony would be a most inexpedient step. It was said that the suggestion would be for the benefit of all parties—beneficial to the New Zealand Company, who would receive their debt out of the money borrowed, and beneficial to the Association, who would get & balance in hand. It was further stated that by benefiting the Canterbury Association, it would benefit the whole of New Zealand. It was suggested that if Government would allow the Canterbury Association to borrow money, the New Zealand Company would not increase the burden upon the land, ut would consent to a very considerable, sacrifice, reducing their debt of £268,000

to a sum not quder £2OO onn i the Hen upon the sale of llTfoT’S and retaining only the present 1 Whether itiat pronoaitU.. L ‘ J by the shareholders of the N be •>’ Company, he did not know, nor I iH how it would be received by Earl n could not say whether, if t | le M consented to make such a aacriflee T ° ide '« would alter his determination. J 0 * 1 % necessary in the present unpromil?! s ’*! I affairs .ha. everything should be done u ‘* si I a call being made upon the shareholi ” ett ' any arrangements could be made bv ' 11 which the Canterbury Association co?)?? 0 ' row money, it might pay £40,000 toT i"’ Zealand Company, and the necessi,? call would be avoided. If the th V° r ’ thought the proposition was worth emH ing, he would go again to the Gov., I notwithstanding the pain he should n”' 1 doing so after so many fruitless ne J? ln ' (Hear, hear.) ® tJ woaa, After some general remarks had V- - ed by Mr. Burnand, Mr. J. A. Smith and other gentlemen, ’ Tb, Chairman in.reply u> , Mlli by various shareholders, said he really? not Know what to do under the circutnstauc' It appeared that the thing had come to a lock. M

Mr. Drane suggested that the pt i nci , creditors of the Company should he waiS upon with a view to ascertain whether J, arrangement could not be come to for J polling the payments. He moved Bff -/ lion to that effect, and added to it that fa directors be empowered to adopt any meas Qre3 that might appear lo them desirable for ing the money required.

The Chairman and Mr. Currie objected and, after a long discussion, the resoioticn was withdrawn, upon the understandinoihi' ; the directors should use their best exertionsit releasing the Comjany from the difficoltia into which it had been plunged. Thanks were then voted to the Chahauj and the proceedings terminated.