CHAIRMANS SPEECH.

Te Aroha News, Volume V, Issue 259, 28 April 1888, Page 4

CHAIRMANS SPEECH.

J''n ( h. tii man, in ino\ in<r thf adoption ot th^ n.|Mjit .md balance -htet, -«m i . - 'I'h' < h.ui man, in nio\inj_ r tin. adoption of tin. upoit, -aid The eueuin-taucf -ot uur 1 i-t mi etinj^ in\e-t tin- one with an i tiic-t .Hid impoi tarice w hwh xhr Boatd irel . find whii'li. by the attendance to da\ of -haieholdei - who aie H-'rtlh -t ian<_ r ei - to on i int'c in<_ r -. it l- ;i|i|Mioiit that \iiu ii'-o f<'el J'hi- meeting i 1i 1 - tuithu mik< d li\ th' 1 ili-apj jf.ii .in' » fiom .iinuiij; u- i»t tie iatr -Mi W llliani-on who ha> heixtoioi t been peihap- oni mi'-t pro timi nt nyuie. who-e death wt i< and u lio-i <."iin-i 1- we mi — ■ l!f tcnin^tu the balanri- -lifi.t now n \uiii hand-, J \\<nild lcinark. uithun' hnthci preface, tli.it inid»*i the h-Md ot drpo-it-and othei luituhrit- thcie i- a decie.w nr t,yCK),OOO. I>nt tin- i- cilnio-t intm-h dnt to the itein^ (junitii'i niidci the dc^ijrn.ition of other liabilities, and i^ of a raMial chaiac-tei and without -i^rnitifcincr In deposits piupi i thcrt i- a (lei ilmm of t'64,000. which upon a toi.d of over ten million- l- quite iiinn.it' l ial The iteuix. C oin and CJa^h Kalancc- at banker- and money tit '-hoi t < all in London, hhou the re-peetable lot.il ot C 2.400,000. 400,000 ThM- t'SOO.OOOIeg-thanatuui Ki<t b.il.mr <*, when the amount \\a- exceptionally hi^h : the reduction i^ in In L r e inc.i-iiie;tc'(:ountc(l for bv an inetea-i of tne hundied thou-am! in bills and -eeuiitie- h»-ld in London. J come tinalh to an important item ot ptoht, which, aputt fi-oni deduction foi l»ad d.-ht-. {iniouiit- tn t'54.000, b\ no mean- -o i^ati-ifactoi} a hjiuic a- you have becu n-ed to. 'Die -<lnink.(C(e in oui j/iotitof late i- an indication of the extent ; to which the Hank- uainnrj poi\ci i- | cripjilcd b\ the accuiniil.it ion of advanccfind «sccuntic- tioin uhicli intue-t cannot projterly !»<• taken to piulit, and which, never f hele--,^e ha\ c fell, leluctant to i eali-e at the Mirious) sieiitiee \s hich would be entailed in the pie-eil ilepie--ed '■t.-ite of value*-. It i-s at the -arne tune, we think, sati.-tactor) that notwithstanding tinburden, and notwithstanding the uii|)iofitable condition of genual bu-ine— in the Colony, we lia\e been able to earn an amount equal to o\ei 10 per cent, on the Bank's? capital. All the uioie that the bad Jebt- properly pertaining to the liali-year irequite trillintr, and would i oi ap[tieciabl\ ifi'ect the result. How to deal .vitli thi)votit has been the occasion of much pei)lexity to us>, and anxiou- f oii-ideiation ; »ecauße on a strict, \jiluation of <jiu a-.-et-, md an equally r.ti icf complianco witli ilie ierms of the Uet d of Settlement, we should iot feel wai ranted in di\idm<r it with m assurance that ne had Hi'-t pi-o rided for all bad and doubtful debts. We lave neveitheless come to the conclusion hut, because ot an exceptional development »f los^e- aricinjf out of conditions inherited >y the half-year, and because of a depression vhich we hope will not be ot much longer ontinuance, shareholders should not be ntively deprived foi two half - year.s n succe-.sion of the income fiom heir Bank shaies -upon which some f them no doubt in a measure epend — especially at a time when many biier investments have become le^s produeve. And we think that we me, on the 'hole, best consulting the interests, of lareholders in recommending 1 that adi\iend at the rate of se\en per cent, per mum bedeclaied. leaving the balance of. I

(ho prolix of the half >eai toi nppropi iation to bad and doubtful debt account. A lilt in our commercial horizon w ouldenf ii ely change t lie aspect, of a Hair«-, and in view of the very hopeful prospects of (ho &old mining industry in our neighboui hood, and looking I to tho ucnoial sovival which ha-, ocounvd I in Australia. \s c think we should be blamej ablo if we adopted a too pessimistic altitude 'in dealing with (he lai^e and nnpoitant | inluo-.(s committed lo its. li will n o doubt< [ be in the mind ot main ot \ou to inquire what amount in Ihe opinion ot (he Boaid w on Id ha\ o lo be -aei ilieed in indei to en sure I the e.uh ivali/ation ot the assets to which I I h.ne alluded, .md the eou-eqtiont ic^tora j Lion ot the Rank - piotits to then old '»t .udiir.l Hut \ou will. I think, ieeo<rI uisotho diiheult\ of <ji\inn a eatejiotieal i iepl\ id -iicli an itujiin > . when \on con1 pidei the pie-ent -tarnation ot ihe maiket torpiopeitx in tin?, countn. it must be much a matter ot opinion, and i- a point lon which opinion*- would \an We should he ut.ul. howe\ei, it jon would up poinr aeomiiiitleeot ) oui nnmbei w ith w horn asc could t onto! on tin*- and -ome othei un poitant mattot- which vail foi eon-ideia j tion \\eha\e tea-on to believe that thi-eoni-e will be -.it -tactois to many -harei hoh'tr-, it would ceitamlv be -ati-taetoi \ i to u- and uc think it would hi ail\ intaueou- to the Rink To till the \aeauo\ in the Bo.ji'l eic.itel h\ llu death ot the late Mr I W'ilhain-oi\ w e h.ne, in tei m- o» t he deed ot i -ettltinenl. nominated Mi W .dtei Wood*. ! John-ton, ot Wellington: and in place ot • Mt (!. B Uwtii, who ha- ro-ignod. we h.no i nonun.ital Mi (iconic Buekle\, ot London. I but a Now Zealand eoloni-t at pie-ent in i Auckland, appointment-* winch we r<rol -me I will ui\e -ati-taction to Southern -haie ih.ildei- and adil -tienuth tt> tiiL Boaid. j \- no olhii -haiehohhi ha- «_ri\ t n notice ' ot i .mdidatuie w e a-k \ou to emitum 'iui I act ion. \ Mi F. <> Kw uiiTton -aid . I ha\ epical ple.i-uu m n-iuir to -eoMid tin a loption ot i iln«iopot t. 1 tiiuik. -ii. that no oidinai) i inieie-t attache- t<> tin- meeting At a lime when the » olon\ i- emei<;inv. tiom a -even tn.il it i- onh natuial that the e\t- not only of all pei-ons in \ew Zealand. but al-o ot all per | -on- th oiuhout the Au-tiahau colonies and in London, -houhi be tinned to u- to -ec how the Bank of New Zealand I will be a fleet <d in pa--mir thiouuh thiitiial. Et-pet'ialK doe- the mteie-t attach Ito us in New Zetland, becau-o l then- i- no doubt that even man thioiiirhout e\eiy town and hamlet m New Zealand i- either direct 1\ oi indiieetly atleeied bj the welfaieof the Bank ot New Zealand, tor if we, as- a banking in--titution.pio-per, thenthey pro-pei <d-o. It, 1 on the othei hand, we -uttei ad\ei-e-, then the-e people mu-t -utler <ut\ ci -c- too. Now , ' 1 think that tin- leport and balance I -heet w Inch ha\e been laid before u- to-day | wdl all:i\ a '.neat mum mi-<, r i\ hi£s llt i- no yood hiding the fact that | theie h.ne been mi-jxi\inf;- in the I past. We have all had ini-^hin^ 1 about tin- 'jiirantic ni-titiition, many of i them ha\ inj;ai l-cu doubtlo-- timn lynoiancc , cau-ed b\ tht taettluit theduei toi- ha\e not 1 fiom timetotnnc fji\en the -haieholder- \ er\ nun h mti.iination on tin -übject But in ' \ our addie— tin- atteinoon. \ou -a\ that | > the dnec toi- a-k thata ( onnmttt t "tin\e-ti- , '_ r <ition niii) be appointed W t 11, now. i 1 think tin- l- \iitualh challenging l\cii '; hostile ciitu'i-m. The diuctoi - doubtlo-- ' have <di*ad\ m\ e-ticraled the atlau^ or the Bank, and Mitualh -a\inu r . *' 1 know the wui-t, the\ -i-k toi a committee to lit appointed \nd I a- a ?haieholdei am e\tiLinel\ trkid that tin- ! i- to be done I hopt IL will eon-i-t ■ lor gentlemen who aie ab<>\e -u-[)icion - ot indt pend< nt nun. who will ?iailt-.-h e^aunnt into the atlan - <>t tln Bank, and t< 11 u- I out -tly the le-uUot the in\ < -t iff.ition. It tin- i- done, I ln-beve it will ; b. tuiind that tin- ni-t it ntion l- ie-t inir iMi a turn b.,-!-. and tin woi-t fnenn >>[ New Zt aland cannot but w l-h it to In i e-tiuLT "ti a 111 m ba-i- toi theie can In no doubt that it ainthinu -hould bt lUnir^ with the Kink ot New Zealand it would thmw b<t< k the piou't-^ of tin- ( eiilnu\ t(U 25\e<n-. I ha\i tlk wjfoie \ei\ much pita-mi in -ci undiujr the .idoption ot Hit lepoil and balaneu -heet Tin motion wa- put / without turth^i dien—ion, and wa- adopted without di*— ent I'm, i < n»K- Mi lloitnu mo\ed that the 1 non m.itiun ot Mt— i- doiiuc Bin klu\ and \ v <dNi .lolui-nn to -e,it- on tin Boaid bo <-onhiJiiMi Hi believed tinwould Ix -at i-tact<ii \ in tin ko^' mim Ik i ot -halt holdei- in the>'»uth. Mi II • 'ictn -t condi d tht nintinit which w.i*f a<4i u i| to (OM\l I I I .•■ I (i| I\ l I'l i> \I '< \ - \l I -111- , tice < Jilhe- in moy i'i^ th' appointmtid of a r oiuni't te» .a- had I• • n -ii'j'^t -t< d ill the ( Inn man -— | •* « «i » -aid t hat it nni-t be \fl. «at l-t .< tui \ . a- had b((U Mill b\ Mi Kwiii^ion t it.it -in!i i -tip had bt't'i) -ULUi^'-ted I 'ii'ic vsa- im doubt that uidt-piead dmilit and iiih ci lain t\ had > pit^v.tikd ,iino'i'_:-l the -hanholdeis both in N". v\ Z'al.md and il-i-whtie m <joi'-e<|u< u< ( ot Hu -uddi n tall nt I dnidend- t>! tin P>ank at the la-L halt |\tatl) mc» tui'_c iiom 12 \ per cent, to, , ni)(,hn)^ He thought the ilmeio)- wen ' ' wi-e. cviii although they had been 1 abl» to dtflaie a divulend on (hi- ! dm •i-Kii) mi taking tin -haiehnl'lr t-. intothtn ' j contidenec in oidu that thc\ -hould be -up- j poi ted in then a< tion. and m oid<i to ie- I «i— me the -,1 i,i i » holdei- a- to the po-ition ot | [ the bank Ib ilioiiL'ht that) the action i I the\ h id taken would i< < oinmc ml it-elt to ; I the -haieholdei - a d the public, a- e,vi ' 1 deinji ot then eniiNKtion of the soundne—ot the B.inK iheai, lit an He theie ' toie bi l;u< d i.o piopu-t ,i committee -ue-h a- wa- -u/Lfi -tf d bv tin dneetoi- to conlt l with the pi i -ent diiecto)-. and ! nne-ti^rate and lepoil I hoi ounhl> upon the -tate of the Bank 'I In-, wa- piovulcd toi by the deul ot -ettlennnt ot the lla'ik, in 100, bv which pio \i-iou wasuiade foi tin- \e:\ tiling. He telt sine that the appointment of -iiich a commit tet would <(i.c confidence not only to the -haieholdei -, but al-o to the on tilde public, but, in older that onlrlenc < tuns be ghen that committee mu--t be ot a ehai actor which would leave then icpott, whate,\ei it wa 3 , above suspicion, and he proposed to nominate a committee toi the appioval ot the meeting —^nfclemen who would be iound to be of lurpje bu-inc.ss capacity taken fiom di Huron t part*, of the colony, and who in their relations hitheito with the manaj^e-incnL of the Dank w vie. in no \\ *i\ dependent up(/ii oi indebted to the Bank, :u i d \\ ho-e report nnjrlit !n« ueuepleil jis perfectly independent and above su-picion. He had, theieloie, eonhdence that the appointment of this committee and their report would to iueieasu uoiilidenccin the Bank both to <-hsiiehol<lor*« and to the public, because if theie «at notluiiir wionji with the Bank he did not think the diiectots would ha\e a->ked tnem to appoint such a committee; and in the .second place if there was anything wionii. it was well that the\ should hice it. He h-'id even eoritidence that the lesult would .show the .shaieholders ;in d the public tlie stability ot the Bank and he had much plea.-ure in proposing the following re.solution ; " That in accoi dance with the recommendation of the diieetoi- a committee of hlmroholdei s be appointed to colder with the

J directorsandaetas special auditors to inquire into and report) on the allairs of the bank * generally in torms of Section 100 ot the Deed ot Settlement." The.se gentlemen weio Mr. John McLean, of Otago. who was ptetly well known throughout the colony, and who wrs known to himself (Mr Justice t.illies) for the past thirt) years a* a shrewd business 'man. He thought his name would be a guarantee, not only to the Southern shaioholdeis but, al-o to the wider circles, as to the independence of the committee. The no\! name sva- that ot Mi Buckles, of Chi i.stchurcli, ot whom the meeting had ahead)' appioved a- one ot the coming d hector.-, Mr Buckley had been a Urge merchant, and has iusvietued,\\ ho-e bu-'incs.s knowledge and capacity would Im leeoguised both heic and in Kughnd. Then t hoi e was Mr Waltei Johnslont , ol Wellington, ot whom the) hadalsoappiosed. Mr Johnstone was well known tlnoughoul the colon), and he thought aKo in Lon don. as a business man ot good e.ipacits, and one in no wa\ tonneeted ssithoi mult i an\ obligations to the Bank. Theic wa-al-o Captain Colbeck. ot Auckland, whose name would also cans, weight as hoinu in no way connected with the iMieetoratc ot * the Hank hithcito, and as a capable business man lie (Mi .Ins tice (iilhcs) had also been asked to act on this Committee He confessed that lie would ha\e prcteired it someone el-e hail been plated in tin po-ition in hi- -toad, because his engagements took up such a l.u ye .iniount ot his nun At the request ot a Luge numbei ot shaieholdeis, howeu'i lw had consented to act to the be-t ot Ins abdits The-e me names he thought would mi.ii.iniec tin m lependenee ot the enquii) : tin taune--and pa-tice ot t heenquii \ would. In hopul. tend to stienuthen the position et the Bank ami al^-o tend to uassuie both sh.ueholdi iaml tin Kngli-h and New /cal.ind publu Mi Hoaidman m-t and asketl l<aw I • -u ond tin- |»i opo-it ion, beeaii-t to ,i »< i tain extent it cm led out the lint's ot i -ii' 4 pstion that he had made at the last inn i ing It would be u inetnlx \ed that in h.id then taken on hnn-tlt to ;>dsi-t -nili a eouise. and had pointed out th.it tiitn i-m ottheii aflaiis wasde-nable Butnn lei lit i< ism might lesiilt m e\ il because ci n i< i-m on liisuufheent infoi mation wa- woi -t than no cnticism at all. Tin- piopo-itnm would tlo moie good than an itnestiu.ition b\ ilie directors thenisehe- could hop" to do, because the names plated on the committee weie those ot gentlemen well known thioughout tin. tolon\, and also in the Home eounti) Hi w a- aNo pleased a- an old Am kland 1 1 -id cut , ami especially glad that though this In -titution was tounded and had been well managed in Auckland, that iin ( tun mittie wa.- not one ot Auckland ucntli menonh.anl tor -e\eral lea-on- With out any di-paia<_rement to then dne<toi-, he ft It that the additional names piopo-td would gne it gieat weight a' Home It was guititvinu too, that vt.ntlt.man m( such peat wem lit had ton-tnted to stand. Tlieie i- one othti mdtei that he thought tin- piopo-al waan earnest ot Ai tin las-t nitcl ing he had said he hoped that the . diuutois during tin comiiitr halt \iai j would takeintocon-itii latiou tin be-t nieaii,ut tegamiu'j the uiound that tht Bank i had lost. He took tin- piopo-ition .is an I cdi ne-t that the dutctois wut au\iou- to 'do that and ot thi- tact theie wino bettei than the names the) had associated with t hem-els cThe onl\ othei uuittei that presented it-elt to hi- mind wa- t In- Looking at the 1 epoi < - i ot the bank toi \eai- pa-t, ami knowing the 1 \.n ions rann heat ion -t>t it-bu-ine--, t be) s\ u c all -ati-tied that it the atlaiih ot the Hank wtie b.ised on sound biMiic>- pnmipli-. then < mild be no teat n_Midinu the tutuie. He wa> (onlident that llieie was uio.it ;ptosptiit) betoiethe Bank in the tut vi c a- , theN had en|ONL'd in the pa-t, and tin was in which the -haieliohh i s had suppoind tin dhectoi- wln n n In i vim inci--ai\ to (Imp tin dmdeud, and that wa-astiioii-leattii. -howtd tht n coiilideiKC in tin wisdom ot the diKctois and thcs(ibdit\ , or the Bank Tin ( haumaii theuiead the ic-olution to tin mLt.tine, .mil a-ked il m\ nentltmaii w i-hed to -peak I o it Ml I'.Cheii) miil thar the piopo-al came liefoiethem mnxpecfedl), but he had no doubt ot it -ail\ l-abilit) . Thetln ccf oi -miuht tak< uicat (itdii |o <In m-cl\ c- toi f lit 1 1 manauuiunt in tin j>.i-t but tlnie w iiiij doubt tb.it (he\ \\-.id <d-o iiU'inaii.i'jt il it- atian- tiom thtt neaih om thud ot it- paid up c.ipit tl had bet n 10-t in two 01 lime \(,n- L'lil -tabdit\ tit tin. bank wa- (|Ut-tioind oiit-uh. but jiei-ona!l\ this who had conhdein c in the in '-tuition, knew ih.it this talk about it w.i- all iiousui-i But iht s al-o km w that tin iew a- '-onn 111 1 ul hin the eh n u p - nuide Thi- i lit | vi i ) wa- a -tt p in tno dv » t Imn Tin- motion w.i- then put ,md laiiud w it lit hi t a di--ent lent \ nice M i ( i. I' I'iei i i askt d w het In 1 the iom in it tec appointed w on Id hi m^ iip.m mli mil repoil oi w bethel iLes, would wail i till the in \t hair \eail\ inecnny. If an mti iiiu icpoit s\as to be bioii'jht up lie thought thes would hast to ad|ouin tlu- ! mectinu. I The I hau man -aid tin coitt-e to b< \u\ low i d wonlt I bo dei id ed b\ the Commit tt c lit took it that an inluim icpoit would bt bioiijjht up. but the) had appointid la connnittci . <n\f\ it le-ttd with them wn.it icpoit they should iu.d\t and w lieu thes -honl'l in.'ikt it. But In thought peisou.dls thai a lepoi t betoi c lln \u \( halt-)eails nit etiny, s\as tle-ualilt, and he would adsocale that beinj^ dom 1 It wa-, howesei, toi them to do what thes 1 thought fit- ! Mi (I. I. I'ieicc said In a-ked tin qmsm s 1 tion because theie nuuht be a dilhcult) , thioujih the article <»t a-soeiat-ion in calling tin- meeting without a lony; notice The Chan man .said Ihcie could be no dilneulty. The dnectoi.s could call the meeting, oi iaihng todo>o, a cci tain nuin bei of shau holdei s had pos\ vi to tlo it. Mi (Jrcen pointed out that two gentle- I men, appointed as special auditors, had | been elected diuctois, and he thought it wiong that they should at t m the dual capacity. Mr Justice (lilhc.s explained svhs, he hail ]»io|)Osed that they should empine into the state of the bank at the present time. The new diicctoi- had nothing te do with the allans of the Bank in the pa-t, consequently theie was no objection, but it was rathei an ads'anlage to the new dhectoi.s to make an invystigation into the w hole state of the pie sioiib atlair.s ot the Bank botoie taking oihee to manage for the futuie. I\lr (Irecn took evception to this, and said that if the) tound anything to the prejudice ot the Bank, lo)alty to their co-league would prevent them from making it known. It would ha\e been more fitting to defer their appointment as directors till I his investigation Jiad concluded. The Chairman put the resolution again in order that there might be no mistake, and it was again earned. Mr L. D. Nathan seconded the motion, and it was agreed to. Mr P. L. I'lime moved a coidial vote ot thanks to the diiectors and auditors. He said this vote of thanks was, he thought, svell earned. The chaitmun, on behalf ol the

directors, expressed then thank* Thoic had liccn \er\ adverse cirenmsLaneo to Mic pnv-pmty of the Bank duiin» Hie last, tow vimi>, and Ihoy had o\poi'i(Mi< l uvl a niofi*-, deal ot jmxioty and ti'ouMc. 'V\\v) had li iod to do tlicir hen!, ' and now lcll In miiiic c\t('id, coniponsaU'd by tlu % le-olutinn ju^t . ])a-scd. Mi Coniisk^ . (in heludt of Lhc ollicis of the Uank, rspu^rd ihank^ lor Llio ('(inhd(Mic(>, and --aid thai cvav) ollicci 1 ot Mie Haidv would do Ins best, lo dt^oivi; it. r riii< -,<_•! oil niinul ( uOlu 01 c ihen ic.irl, and th< mooting tci nun.itcd