COMMERCIAL.

New Zealand Times, Volume XXX, Issue 4561, 2 November 1875, Page 2

COMMERCIAL.

The Customs revenue collected at the port of Wellington yesterday was as follows: £ s. d. £ s. d. Spirits .. 100 6101 Ad val. goods 98 8 6 Wine .. 23 7 S Goods by wgt. 41 12 4 Tobacco .. 33 17 6! Tea .. .. 10 0 0 Total ..£323 810 Sugar.. 9 16 0| BY TELEGRAPH. AUCKLAND, Monday. Mr. Alexander Saunders reports:—Sales: National Bank, 725.; South British, 505.; Cure, 18s. 6d.; Beach, 755.; Tokatea, lis. 6d. Buyers: South British, 495. Sellers: Daily Southern Cross, 1205.; Caledonian, 100 s.; Beach, 80s.; Tairua, 245.; Gem, 4s. BANK OP NEW ZEALAND. The half-yearly meeting of the proprietors ofjthe Bank of New Zealand was held in the boardroom of the head office at noon on Tuesday last. About thirty shareholders were present. Mr. C. J. Stone, Chairman of the Board of Directors, presided. Mr. ~D. L. Mdkdoch, the Bank Inspector, having read the advertisement notice of the meeting, then read the minutes of the last half-yearly meeting, which were confirmed nem. dis. REPORT. The following report and balance-sheet were then read to the meeting : Twenty-eighth Report of the Directors of the Bank of New Zealand, to the Half-yearly General Meeting of the Proprietors,held at the Banking-house, Auckland, on Tuesday, 26th October, 1875. The directors have much satisfaction in again meeting shareholders with a report and balance-sheet which afford continued evidence of the bank's prosperity. The net profit at 30th September, after ample provision for every debt considered bad or doubtful, and for reduction of bank premises and furniture accounts, amounts to .. £47,103 2 1 To which has to be added— Balance of undivided profit at 31st March last £16,974 11 1 Making a total available for division of £64,077 13 2 The following appropriation of which is now recommended— To payment of dividend at the rate of 10 per cent, per annum £30,000 0 0 To bonus of ss. per sharp, oqtuU lo O per cent, per annum .. £15,000 0 0 To balance carried to profit and loss, new account .. .. £19,077 13 2 The dividend and bonus will be payable at the head office, Auckland, on Wednesday, the 27th October, and at the branches on receipt of advice. For the Board of Directors. C. J. Stone, Chairman. Aggregate Balance-sheet of the Bank of New Zealand at 30th September, 1875, including London office at 31st July, 1875 : Dr. £ s. d. Bank Stock 600,000 0 0 Reserve Fund 180,000 0 0 Notes in circulation 420,170 0 0 Bills payable in circulation .. .. 1,730,028 9 11 Deposits and other liabilities .. 5,760,745 7 5 Balance of profit and loss at 31st March, 1875 16,974 11 1 Net profit for half-year .. .. 47,103 2 1 £8,755,021 10 6 Cr. £ s. d. Coin and cash balances .. .. 664,199 0 11 Bullion on hand and in transitu .. 287,808 12 4 Government securities 350,000 0 0 Landed property, bank premises, f ursiture, &o 107,299 7 0 Bill receivable, and securities in London 1,787,300 15 4 Bills discounted, and other debts due to the bank 5,568,563 14 11 £8,755,021 10 6 rnoFrr and loss account. Dr. £ s. d. To dividend at the rate of 10 per cent. per annum 30,000 0 0 To bonus of ss. per share, equal to 5 per cent. 15.000 0 0 To balance carried to profit and loss, new account 19,077 13 2 £64,077 13 2 Cr. £ s. d. By balance of profit and loss at 31st March, 1875 16,974 11 1 By net profit for half-year, after writing off bad debts ~ .. 47,103 2 1 £64,077 13 2 REBERVE FUND. Dr. £ s. d. To balance 180,000 0 0 £IBO,OOO 0 0 Dr. £ s. d. By balance from last statement .. 180,000 0 0 £IBO,OOO 0 0 Audited IChas1 Chas - j - Taylor. Audited | p D i ONAN ,

In moving the adoption of the report and balancesheet, Mr. Stone spoke as follows: Before moving the adoption of the reportwhich you have just heard read, allow me to make a few remarks on its principal features and on the general affairs of the bank. It must be a matter of congratulation to shareholders to witness how well the businoss of the bank is maintained. It is now fourteen years since its first establishment, and a hasty retrospect of its progress may not be considered inappropriate. The circumstances which led to the formation of the bank will be in the recollection of many now present, the insufficiency of accommodation afforded (by the establishment which then occupied the chief position among the banks in the colony, the retirement of the Oriental Bank, and the advent of the Bank of New South Wales. A few of our more enterprising and far seeing citizens resolved that the time had arrived when the colony could well support a bank of its own, and that there was no reason for New Zealand any longer remitting yearly largo dividends for tho enrichment of foreign shareholders. Tho result you all know, and no higher compliment can be paid to the judgment and foresight of the promoters of the Bank of New Zealand. Since its commencement dividends have been paid to shareholders, amounting in the aggregate to £920,000, a reserve fund of £IBO,OOO has been formed, and a very large amount, about £IOO,OOO, has been written off bank premises and furniture accounts. But apart from the fact that the whole of this large accumulation of profit has been saved to the colony, we may well take pride in the often acknowledged service the bank has rendered to the commercial and general interests of the people of New Zealand, and in tho evidence of their confidence in the institution as evinced in the figures put before you to-day. The balance-sheet shows the deposits and circulation amount to £0,180,000, and though it is right for me to mention that about a millipn and a half of these resources is due to the deposit of the remaining portion of the four million loan, the balance

is yet of such magnitude as to afford gratifying evidence of the support and confidence of the public. On the other side it will be seen that the banks advances keep pace with its resources, and we are resolved to attempt at least to meet every legitimate requirement of our customers. The demands on the bank for accommodation during the past twelve months, consequent on the rapid growth of the business of the colony and the apparent indisposition on the part of foreign banks to enlarge their advances, have been very great, and it has for some time been apparent to the directors that, without taking a. yery sanguine view of the future, a return as favorable as is proposed to-day could be paid by the bank on a considerably increased capital. The directors have, therefore, determined to avail themselves of the power committed to them by you at the special general meeting held on 29th July, U7O, to make a further issue of 10,000 shares, which will be first offered to present proprietors at a premium of £5, being £3 below the present colonial value of the shares, and £7 below the price in London; and, as the directors entertain not the least doubt of maintaining the dividend on the increased capital, the difference between the price of issue and the present market price may be regarded as a bonus to present shareholders. At an earlydate a circular will be addressed to eacli shareholder on the subject; but I may only further say, at present, that payment for the new shares will not be required till January 1, from which date the new shares will participate in the profits of the half-year, and meantime any shareholder electing to pay in advance will, till January 1, be entitled to interest at the rate of 6 per cent, per annum. It will be in the recollection of shareholders that the resolutions to which I have referred empowered the directors to make an issue of ten thousand shares in any one year till the capital reached a million. Five years have now elapsed since the first issue under these resolutions was made, which may be accepted as evidence of the directors' determination not to ask for additional capital until fairly satisfied not only that it is required to maintain the leading position of the bank, but also that the calling up such capital will not interfere with the ordinary dividend. Under the existing regulations as to the amount of the reserve fund, only £15,000 of the £50,000 to be obtained as premium on the new shares would be available as an increase to our present reserve ; but I may state that it is the intention of the directors before the next half-yearly meeting to effect an alteration of this clause of the bank's deed of settlement to admit of the reserve fund acquiring larger proportions. You will no doubt have observed that during the session of Parliament just ended an inquiry was ordered into the banking arrangements of the Government, and the committee entrusted with it took very full evidence on the subject. Their report recommends that the existing agreement with this bank be terminated, and that tenders for the account be called for. So much jealousy and bad feeling have been excited by our possession of the account, and so much misapprehension as to its actual benefit, that, should the Government adopt the course suggested, we will not feel aggrieved. No doubt, if the account were to remain as at present, or as it has been during the past six months, there would be good reason to make it an object of desire ; but the condition to which I have referred is far from being the normal condition of that account; and it may well bo apprehended whether it will long remain in such a state as to make it so much an object of envy as it has been of late. At a moderate estimate, at least fifty of our clerks are employed solely on the Government business, besides the cost, of numerous agencies, which would not have been opened but for the bank's desire to offer ready facility for the transaction of the business of the Government. The opportunity, however, is now afforded for one of our competitors stepping into the breach, and if they are able to offer equal facilities with ourselves at a better price, then by all means let them have the account. The balance has usually been so nicely adjusted that, as a rule, a very slight increase on our present terms would turn profit into loss ; and, though we attach some weight to the prestige of being bankers for the Government, we are not disposed to suffer a loss by it. While on this subject, I feel bound to call attention to the evidence afforded the committee by Mr. Bridges, the representative in the colony of the National Bank of New Zealand. You will no doubt have observed that the chairman of that bank at the annual meeting in London on August 9, remarked that the directors had been a strong push to get a share of the New Zealand Government account, and he hoped in time they would succeed, adding in the course of his speech, "I must entreat everyone interested in the fortune of the institution to put all the pressure he can on those in authority with the view of obtaining this concession." I suppose we may accept this as the key note to the line of conduct lately pursued by Mr. Bridges ; but I cannot for one moment suppose that the directors at Home could for an instant have anticipated that their chief representative here would have descended to what assumes too close a resemblance to false accusation and malicious innuendo, even for the purpose of securing the Government account: but whatever may be the verdict of his fellow-directors, I am very much mistaken if they do not receive from the colony very convincing proof of the reprobation with which it is viewed by the public of New Zealand. Honest rivalry we are ever ready to welcome, but we cannot sufficiently deprecate the line of conduct followed on this occasion, which has obtained for Mr. Bridges the wellmerited verdict of the committee, adopted with acclamation by the House, that " his charges are absolutely without foundation and wholly unwarranted "; —a verdict which, I may say, is heartily confirmed by this bank. Leaving this disagreeable subject, let me only remark, in conclusion, as to the future, that while there is much to encourage, there is also much to incite great caution ; and your directors are resolved that while maintaining the premier position of the bank in the colony, they will not lend themselves to anv undue stretch of credit, or to any business of a purely speculative character. Their efforts will be devoted to the development of healthy enterprise, and to the legitimate support of the rapidly growing interests of the colony of New Zealand. With these few remarks, I beg to move the adoption of the report. Mr. F. Whitaker, seconded the adoption of the report. He said he should have thought it unnecessary to add anything to what the chairman had stated in his opening remarks had it not been that he was present at Wellington during the whole of the transactions referred to, and he therefore desired to add a few words of explanation to what the chairman had said. He arrived there very soon after the Assembly began to sit, and watched with a great deal of care the transactions which from time to time took place. He was bound to say, in the first instance, the committee appointed for investigating the finances of the colony, and consequently for entering into the position of this bank towards the Government, did, to his mind, act in the most fair and judicious manner. They were only bent upon obtaining the truth, and investigating with the utmost care, spending nearly the whole of the session, and going to the bottom of the accounts of the colony, and incidentally into the business of the Bank of New Zealand with the Government of the country. There were only one or two points upon which he wished to say a few words. On looking at the evidence given from day to day before the committee he found that Mr. Bridges, together with the inspectors of other banks, had been called, for the purpose of giving evidence as to the terms upon which the banking business of the Government had been carried on. Ho had known Mr. Bridges for a number of years past, and had always entertained respect for him, so that they might imagine his astonishment, he might say his horror, on finding that Air. Bridges was making charges which to his mind were absolutely untrue. There were two charges, the one with regard to the railway to Port Chalmers; the other, certain transactions in Wellington. With reference to the Port Chalmers railway, he (the speaker) thought he knew as much as anyone of these transactions ; because when they were going on lie was in daily communication witli Mr. Murdoch, as his confidential adviser, and was perfectly aware that Mr. Bridges could know nothing whatever about the matter. They might, therefore, judge of his astonishment when he heard Mr, Bridges making charges that the bank had put pressure on the Government. From the commencement he was quite certain that Mr. Bridges knew nothing abont the charges he made. He did not wish to draw any fine distinctions between the bank and the Loan Company, but the fact of Mr. Bridges using the name of the bank throughout, and never once alluding to the Loan Company, evidenced his ignorance of the whole transactions from beginning to end, for it was the Loan Company, and not the bank, that was concerned. Mr. Bridges made the charges, no doubt, for the purpose of injuring the Bank of New Zealand, and for the purpose of placing the Government in the position of taking away its account, and distributing it amongst the other banking institutions, of which the National is one. He did not think that this attempt was Instigated by the directors of tho National Bank or by anyone else. He thought that on this occasion Mr. Bridges lost his head, and was hardly accountable for what he was doing. No doubt his object was not so much to injure Sir Julius Vogol as to injure tho Bank of New Zealand, but his charges involved the character of one of the leading public men in New Zealand, and the gentlemen who sat round the committee table—gentlomen from all sides of the House—felt that there was at stake the character of one of the principal men—almost the principal man—of the colony at the present time. They felt, therefore, it was incumbent upon them that the matter should be cleared up, for he did not think any of them believed it from the beginning, for from tho beginning the evidence did not appear to bear the impress of truth. He must confess he felt shocked at tho conduct of Mr. Bridges, because it created a feeling of want of confidence and of mistrust to see a man placed in bo confidential a situation as manager of a bank divulge matters which had come under his cognisance as such manager. Ho considered this to be one of the gravest breaches of faith and good propriety he had ever mot with, and he must say that in talking to gentlemen after this had taken place he felt that he must be careful in what lie might say, and not be over-confiding. The conduct of Mr. Bridges on the occasion referred to was such as to shake confidence in all bank management, and indeed in all confidential servants. He thought, however, that Mr. Bridges might be left for his directors to deal with. All he could say was this, that if ho had a servant who thought himself justified to divulge matters entrusted to his confidence, he should feel in a very uncomfortable condition, and should not feel satisfied until he was out of his office. What Mr. Bridges' directors may do, of course he could not tell. One part of the evidence had reference to tho Port Chalmers railway, and the other was a charge that tile bank had used its influence for political purposes. It appeared that a certain sum of money was required to be remitted to London, and negotiations took place between Mr. Bridges and the Government for that purpose. It so happened that a number of directors of the bank were in Wellington, but not sitting as a Board, as this is the place for tho Board to sit and conduct the business of the bank. Amongst the directors present was Mr. Thomas Russell, and of course it was only natural tho directors should be consulted. Now, the insinuation was that they wero endeavoring to turn out Mr. Weld's Government for the purpose of putting in Mr. Stafford's Government. It will be found in the evidence that there was nothing at all to support the general charge, which was a mere insinuation. But there was a specific charge made against Mr. Thomas Russell—that that gentleman had told Mr. Bridges, "Now mind what you are about; wo will make an advance to Mr. Stafford, but not to Mr. Weld." It was Impossible for him to contradict this assertion, as Mr. Bridges stated that only Mr, Russell and himself were present when it was made. However, It must be cleared up

between them, and he thought it would be. All that he could say was that during the last fourteen years he had been confidential adviser to the Bank of New Zealand, and he could say upon his honor that during the whole of that time he had never on any occasion whatever known or seen that the bank had used its influence for any political purpose whatever. He might further state that it was impossible for the bank to have served any political purpose without Ms knowledge. Although he was not present at the time of the alleged conversation, knowing Mr. Kussell so well as he did,—knowing that he would think it the height of impropriety to uso the bank for a political purpose, he had come to the conclusion that Air. Bridges' statement in reference to the matter in question was as unfounded, as untruthful, and as unscrupulously wrong as the other statement with regard to the Tort Chalmers railway. Having been down at Wellington during the investigation of the charges referred to, he thought it his duty to make this statement, and he had taken the opportunity of seconding the report for the purpose of doing so. With reference to the directors' report, he could only compliment the shareholders upon the continued satisfactory condition of the bank. For fourteen years he had been responsible adviser to the bank, and during the whole of that time he could say there had not been one transaction of which he felt ashamed. He bad nothing more to say, further than to second the report. His Worship the Mayor said : I beg to propose that the cordial thanks of this meeting be given to the directors and officers of the bank for the way in which they have conducted the business of the bank during the last half-year. Colonel Balneavis seconded the motion. The Chairman said: On behalf of myself and codirectors I beg to acknowledge the vote of thanks that has just been so kindly moved and seconded. Mr. D. L. Murdoch, in replying for the staff of officers, said: I have much pleasure on behalf of the staff in acknowledging with thankfulness your vote, expressive of your appreciation of their services during the past half-year. The result you know in the report which has been put before you to-day, but you can only surmise the zealous efforts and constant care which have produced that result, and which, while they conduce so much to the comfort and profit of shareholders, make it a pleasure, and, I may say, an honor to be associated with the gentlemen who form your staff. It has been a matter of deep regret to us that a reflection has been thrown upon the banking profession by one who, in past years, has participated in your votes of thanks, and whose conduct has been fitly commented on by the chairman. I would only take the opportunity of saying that while it is a matter of congratulation that the party referred to is no longer connected with us, I would have you to believe that such conduct on the part of a bank officer is singularly exceptional, and that a nicer sense of honor actuates the profession. I will have pleasure in communicating to the staff your vote of thanks, and, in their name, I feel warranted in assuring you that no effort will be wanting on their part to make future results as good as that placed before you to-day. (Hear, hear). This concluded the business.