BANK OF NEW ZEALAND.

Stratford Evening Post, Volume XXXVI, Issue 83, 12 August 1913, Page 7

BANK OF NEW ZEALAND.

THE SHAREHOLDERS’ PROTEST

[Per Press Association.] Wellington, August 11. A deputation from the .stia.vholTors' committee of the Bank of \e.v Lealand was introduced to the Mmi-ier of .Finance, the Hon. J. .Allen, U.-ciay, .uid presented a memorandum dealing with the Banking Legislation widen is proposed. The memorandum stated-

—‘ We desire to make it dear, beyond tlic point or cont-ainra jn, time we are not voicing the opinions of any sections of the shareholders, but that wo are expressing the mows ol the shareholders both in .New Zealand and m London, with whom we are in close touch, and in complete accord. We view with consternation Lie picposais submitted to you by the Chairman of the Bank in his memowindun to you of May 15, which wo regj (1 as an unjustifiable and unwarrantable' attempt to increase the State’s proorieviiy interests in the Bank at the expense of the ordinary '■■sharea riders. Ae claim, ,as of right, (1) that we are entitled to, and that the position of the Bank w arrants, the repayment of tl o £1,000,000 guaranteed stock maturing ,in July, 1114; (2) that we, as ordinary, shareholders, ana we only, aie responsible for the provision of such increased capitaT as may become necessary for the carrying on of the business of the Bank, consequent upon the withdrawal of the £1,000,000 wonh of guaranteed stock from the* Bank’s resources; <3) that the altered conditions jf the affairs of the Bank since the passing of the Act of 1903 iy sufficient justification 1 for our approaching vote, and asking to be fully reinstated in the enjoyfnent of our property, direct'y wo have effected the redemption of our obligations to the State, and subject only to such reasonable restrictions as Parliament may require for the proper and efficient management :f the Bank’s affairs.”

After elaborating these points at /rent length, the deputation concluded: “Jn order to determine the legally of our claims, we have submitted all questions upon wlijch there is any possibility of a division of opinion to

;he Supreme Court, and we desire to mggest to you that any legislation contemplated may bo delayed until be opinion of the Court is obtained.” In reply, the Minister said that up :n the present, the matter had not ■Oiiic before the Cabinet, and on tbe issuranea of the deputation that the ;pplieation to the Supreme Court that s being made under a declaratory lodgment to bo heard next Thursday .quid not he likely to result in any prolonged delay, he would lie prepar :d to wait until the judgment of the Joint was given. Ho undertook that is soon as the Cabinet had approved >f the Fill as ultimately drafted he ,vould have it circulated among the aemhers of the. shareholders’ committee, and would be ready to receive any uiggestions they might make.