BANK OF NEW ZEALAND. HALF-YEARLY MEETING. DIVIDEND OF SEVEN PER CENT.

Te Aroha News, Volume VI, Issue 365, 4 May 1889, Page 3

BANK OF NEW ZEALAND. HALF-YEARLY MEETING. DIVIDEND OF SEVEN PER CENT.

Auckland, April 30. The half yearly general meeting of share* holders in the 'lßank of New Zealand was held at noon to-day in the banking house, Queen street, when there was a large attendance. Mr George Buckley, President of the Bank, occupied the chair. liEPortT. —The fif by-fifth report of the directors was submitted as follows : — The result of tho half-year's operations is as follows : — Net profit for the half-year ended 30th March, 1889, after appropiiation for bad and doubtful debts, £43,360 Is lid; to which has bo be added — Premium on new shaies allotted above par, less charges and costs, £11,121 0s Od : balance from half-year ended 29th September, 1888, £33,96810s 8d; making a total available of £88,449 12a 7d, which it is pi oposed to appropriate as follows : — To payraanb of dividend at the rate of 7 per cent, per annum, £33,063 ; balance carried forward, £&f,386 12s 7d. Total, £88,449 12s 7d. The dividend will be payable at the Head Office, Auckland, tomorrow (Wednesday), the Ist prox., and at; branches on receipt of advice. — For the Board of Directors, George Buckley, President. Aggregate Balance sheet (at 30th of Maich, 1889, including I ondon Office at 31st of January, 1889). — Dr. : Liabilities: — Capital paid-up — 100,000 shares of £7 each, £700,000 ; 25,000 shares of £10 each— £lo paid up, £250,000 ; 25,000 shares of £10 each — ±.7 paid up, £175,000 ; less calls unpaid, £176— £174,824 ; notes in circulation, £478,154; bills payable in circulation, £2,015,266 175 ; deposits and other liabilities, £lo,oBB,293 lo3 Id ; balanceofprofitandloss, £88,449 125 7 d : t0ta1, £13,794,987 19s Bd. Assets : — Coin and cash balances at bankers, £2,287,367 17V lid ; money on short call in London, £164,952 4s Id ; bullion on hand and in transit, £198,043 6a 6d ; Government securities, £37,521 7s 9d ; bills receivable and securities in London, £2,253,722 8s 9d ; bills discounted, and other debts due to the Bank, £8,480,768 6a 3d; landed property, bank premises, &c, £372,612 8s scl : total, £13,794,987 19s 3d* Profit and Loss Account. — To dividend afc rate of 7 per cent, per annum, £33,063 ; balance carried forward, £55,386 12s 7d : Total, £88,449 12s 7d. By balance from half-year ended 29th September, 1888, £33,968 10s 8d ; net profit for half-year ended 30th March, 1889, £43 360 Is lid; premium on new shares allotted above par, less charges and costs, £11,121 : total, £88,449 12s 7d. - The chairman said that they would take the report and balance-sheet as read, seeing that it was" printed, and proceeded to say : in considering the balancesheet laid before us to-day embodying tho result of the first half year's working of the Bank in its re- constituted shape, we must bear in mind that the conditions which adversely affected the previous half-year prevailed to some extent in the opening months „of that now under review. Your direetois still considered that prudence demanded making the maintenance of the. bank's strength the pai amount object. .With this in view it is not a matter of surprise, nor need be of much regret, that the aggregate figures show some shrinkage, as compared with the corresponding period of 1888. On the other hand we may congratulate ourselves upon the amount of net profit earned during the half -year ; the increase of £10,000 as compared with the previous halfyear, being, let us hope, an earnest of a gradual return to the figures of former days. It may strike you that the better result is due to the employment of the new capital paid up during the hali-jear, and this is true to some extent ; but you will recognise that new money cannot, with a due regard to safety, be rapidly put to profitable use, and, as a matter of fact, the £424,824 of fresh capital only became available gradually as the half • year advanced. Its effects should be more fully apparent in the future. Turning now to the figures of the balancesheet. Your attention will no doubt be first drawn to the increase as compared with last balance-sheet in the item **' Capital" which now stands cat £1,124,824. The 50,000 shares which your directors were empowered to offer for subscription have been taken up — 25,000 in the colonies and 25,000 in London. As you are aware £7 per bbaie has been called up on the issue in the colonies, but on the London issue £10 has been paid, ib having been found desirable to accept payment in full to cnsuie subscription. The Bank's subsciibed capital now amounts to £1,200,000 with a reserve liability of £1,500,000. Bills payable show an increase ot £752,000, but there Is no significance in this, it being merely the result of ordinary business operations. Deposits show a decrease "of some £600,000. This is accounted for by withdrawals which have been made chiefly in London, and which were expected and provided for. They took place largely in the early part of the period, at a time when there was a feeling of uneasiness as to the condition of things in this colony generally. lam now glad to say that the Bank's deposit; business is an improving one. On the asset side I would point to the item "Coin and | Cash Balances in London," £2,287,000, aa evidence that the Bank is determined to maintain a position of financial strength. In the items " Money on short call in London "and "bullion on hand and in transit, " there has been a decrease of £450,000, but this is merely owing to the fact that it has suited our arrangements to hold our asset in another form. I would, as against this, direct your attention to the item "bills receivable" "and securities in London," £2,253,722 ; an increase over the same item in the last balance-sheet of £1,613,000— a more than ample set-oft. " Bills discounted and other debts due to the Bank " are less by £580,000. Some considerable amounts have been received in reduction of advances which had become unwieldy. Other customers again have taken advantage of low rates, ottering for permanent investment to borrow on their properties outside their bankers. There is now a healthy demand for banking facilities and the tendency is the other way. With the balance brought forward from last half-year and the nee premium (£11,121) received on the new issue of shares we have a total available profit of £88,449. Out of this we have plea&ure in recommending that a dividend at the rate of 7 per cent, per annum, absorbing £33.063, be paid, and the balance, £55,386, carried forward. To give effect to tho promise made at a previous meeting to bring the deed of settlement in some respects into conformity with existing requirements and conditions, yourdirectorshaveto propose certain amendments and alterations. These are now be* fore you, and an expression of your opinion will be sough d thereon. They have also had prepared an amendment to the Act, and due notice has been given of the Bank's intention to bring forward such Bill during the next session of Parliament. Your directors promised lo see how far profits could be increased by judicious retrenchment and centralisation. They are fulfilling their promise in this respect, and the result of their ondeavouis will, it is Loped, be apt

parent in increased profits in the future. It is gratifying to note that tho < signs of returning prosperity, to which I \ was able to refer at our last meeting, have since become more pronounced. A bountiful harvest, saved in excellent condition, is meeting remunerative prices at our own doors. Tho revival of tho llax industry, the steady demand for our dairy produce, the improved tone of the wool market, and the development of the frozen meat trade, are amongst the factors that are working towards a better state of things. Renewed attention is being directed towards us from outside — fiom Australia, where our advantages of soil and climate have recently been brought into sharp contrast with the disastrous droughts that have again aillicted our sister colonies, as well as from London, where the marked use in our Government securities speaks of growth in confidence and favour with the investing public. The settlement of our lands goes steadily on, increasing the number of producers and, in this way, the national wealth. The finances of the colony have been brought into equilibrium, if, indeed, there is not this year a surplus. There are, I think, plain indications that the habits of thrift engendeied by past adversity are producing their natural iruits. Reviewing these considerations you will doubtless agree that I am justified in taking a confident view of the future. I do not look for a "boom" —we do not want *' booms " — but for a steady growth in national prosperity in which we, as a bank as well as individually, must share. You will regret to learn that the health of Mr John Murray, our General Manager and Inspector, has not permitted his resumption of aotive duty. The Board, who are desirous to foster and strengthen by every means in their power the strong relationship formed in London, and the renewed confidence that is being manifested there, have taken advantage of his absence from head office and requested him to proceed to London, where, in concert with the London directors, he will doubtless be able to render valuable service in the interests ot the Bank. Mr G. E. Tolhuist, our manager at Wellington, has been appointed to act as General Manager and Inspector during Mr Murray's absence. Sir Frederick Whitaker having, during the period under review, resigned his seat, the Boaid filled the vacancy by the appointment of Mr Arthur Bull, who now ceases to be a member of the Board. He has however given notice of his candidature L r the vacant seat. Gentlemen, 1 now beg to move, "That the report and balance sheet be adopted. — Mr W. Wilson seconded the adoption of the report and balance-sheet, and the motion was carried. Directors. — On the motion of Mr Jas. Russell seconded by Mr Allan Taylor, Mr Arthur Bull was re-elected a director of the Bank. Deed of Settlement.— The Chairma n said that at the last meeting the questio" of alteration of the deed of settlement had been mentioned. The directors had considered the matter and had brought forward the following suggested amendments for the consideration of the meeting. They were as follows :— Clause 22 : The words three thousand to be substituted for two thousand wherever they occur in the clause. He explained that the alteration provided for extending the number of shares which may be held by one proprietor from 2,000 to 3,000 shares. The recent ir crease in the Bank's capital from one million to one million and a-half had evidently rendered this extension desirable. —Mr W. Wilson seconded the amendment, which was adopted. Clause 23: The Chairman next moved, "That instead of the first paragraph -of Clause 23, the following words shall be snbstituted : — ' That no person, or persons, shall be deemed or taken to be a proprietor of, or to have any interest in any share, or shares, of the said capital, until he, or she, shall have signed, either in person or by attorney a memorandum in writing — in such form as the Board of Directors may from time to time approve — agreeing to be bound by the Deed of Settlementof thecompany.' "' Heexplained that the modification of this clause would dispense with the necessity for new shareholders signing the deed ofsettlement which would, no doubt, be welcomed by investors in the Bank's shares. Mr Taylor seconded the motion, which was adopted Clause 26 : The Chairman moved that Clause 26 should be deleted, as it wa3 unnecessary after the other alterations. — This was seconded by Mr W. Wilson and adopted. Clause 28 : The chairman moved "Thatthe words 'execution of this deed or a duplicate thereof ' shall be deleted from clause 28, and in lieu thereof the following words shall be substituted, viz. : — 'The signing of a memorandum agreeing to be bound by the Deed of Settlement as hereinbefore mentioned.' '' — This was seconded by Mr Wilson and carried by those present, clause 62: The Chairman moved, "That between the words ' to ' and ' such ' In the 7th line of clause 62 the following words shall be inserted: — 'The Company or.'" He explained that the amendment would have the effect of facilitating the Bank's dealing with effects which had come into their possession. He might state that aa it stood at present when property came into the hands of the Bank it had to be conveyed in trust. The proposed alteration would give directors the option of either taking it in trust or conveying it to the Bank. Mr Wilson seconded the amendment, which was adopted. Clause 84 : The Chairman next moved, "That instead of the words ' one thousand five hundred ' in the last paragraph of clause 84, the words ' three thousand ' shall be substituted, and instead of the word ' fifty ' in the said last paragraph the words ' one hundred ' shall be substituted." Pfe explained that this was necessaiy in consequence of the increase of the number of proprietors holding share 3. The effect at piesent was that 330 proprietors, holding 22,000 share?, in Auckland could vote, bub under the amendment option would be given to the whole 150,000 shareholders to vote. At present to do that it would require that 150 proprietors should be present to carry it out. — Mr Wilson seconded the amendment. Clause 85 : The Chairman moved "That all the words after ' respectively' in the 85th clause shall be deleted, and in lieu thereof the following words shall be substituted : — ' Together with the power of attorney, in tho case of a proxy by agent, shall be left at the principal office of the Company in Auckland, at least twentyfour hours before the time fixed for the holding of the meeting at which such proxies are to be used.'" He explained that the suggestion was merely one dealing with the use of proxiee. It was to provide that the proxies should be sent in 24 hours previous to the commencement of the meeting. — Mr F. G. Ewington asked if that meant that any person going away required to go to the expense of geting power of attorney ; if it did he thought that the change would be unwise. — Mr C. E. Button said that it only referred to aases where proxies were held by agents. — The Chairman eaid that the shareholders in England would be asked to send proxies to the meetings without power of attorney. — Mr Wilson seconded the motion, which was adopted. — Clause 95 : The Chairman next moved that clause 95 be amended. At present it read : • That the qualification for 'an auditor shall

be the samo in all rospects as that hereinbefore prescribed in respect of directors of the Company and that he shall be also subject to the same disqualifications. And every auditor who shall act as such whilst unqualified or disqualified shall receive no lemuneration for his services, and shall forfeit and pay to the Company the penalty of one hundred pounds, to bo appropriated to the uso of tho Company and applied to tho augmentation of tho reserve fund." He proposed that it bo amended to read: "No person shall be qualified to be an auditor unless he is tho proprietor of at least fifty shares in the Company, and in all other respects an auditor shall be subject to the same disqualifications as a director." He explained that the alteration was simply to lcduco tho qualification of an auditor from 200 to 50 shares. — Mr Wilson seconded the amendment, which was carried. Claut-e 100 : The Chairman moved that clause 100 should be amended so as to read : "That if it shall appear to such half-yearly general meeting de&irable that the Company's ailairs should bo more fully investigated ib shall be lawful for such general meeting either to direct the said auditors to enquiie into and to report upon the affairs of the Company generally or in their discretion to appoint any two or moie proprietors as special auditors for that purpose, pi-ovided always that the proprietors so appointed shall be duly qualified to be elected directois as hereinbofoie provided." He explained fchab this referred to special auditors. When required, special auditors mustholdthesamequolificatioiibasdiiectors. — This was seconded by Mr W. Wilson. — Mr F. G. Ewington thought that the same number of shares should do for a special auditor as for an ordinary auditor. — Mr Green did not think that it should be reduced to 50 shares. A committee so appointed was really the luling power ot the Bank for the time being, and it was not desirable that so large a power should be delegated to those who were holding so few shares It was not a question of special auditors. It was more like special accountantship. — Mr Reader Wood thought that the qualification of auditors' thould be the same as that for directors. — Mr Ewington said that ib did not follow that because a man owned 100 shares he would take a greater interest in the Banks affair's than a man who owned 50 shares. — He moved "That the qualification shall be 50 shares." — The Chairman : If you negative the resolution, ib will stand that way. — Mr Cherry thought the proposal made by the directors a most prudent one. The question whether [ a director held 50 or 100 shares was immaterial, because an auditor would nob be elected unless he had the confidence of a majority of the shareholders. — Mr Ewington withdrew his amendment and the clause as amended was passed with two dissentient voices. — TheChaiiman moved, and Mr J. L. Wilson seconded, bhefollowingatnendmenb to clause 105: — ''That no dividend shall be paid in respect of any share upon which any instalment or instalments shall be in arrear until such instalment or instalments shall have been duly paid and satisfied. But it shall be lawful, etc." The Chairman explained that this was merely formal, and the clause was passed without dissent. — In answer to Mr Reader Wood the Chairman stated that the deed of settlement would be reprinted with the alterations now made. Share Register, — Mr (k P. Pierce said he understood that an alteration was to have been made in the deed of settlement in regard to the share register. He thought that the share register of the Bank, like the share register of every joint stock company, should be open for the inspection of every shareholder. It was highly necessary for shareholdeis to know who were their copartners, and whether the directors had the requisite number of shares. — The Chairman said that this question had not escaped the notice of the directors, butwah brought before the shareholders in October, 1879, and a resolution was passed that the share list should nob be open for inspection. There was much to be &aid on both sides. The Bank was in a diQerenb position to a public company : the names of shareholders were published every half year, but the numbers of shares were nob given. The resolution of the directors in 1879 was not questioned, and the present Board saw no reason to alter ib. — Mr Boardman spoke j at length in support of Mr Pierces contention, and ib was then pointed out by Mr Ewington that the third section of the deed of settlement precluded anyone getting ac cess to the share register. — The Chairman said it would be necessary, in order ihat any alteration should be made, that notice of motion should be given, and ib would come on afc the nexb meeting. Amendments made to the deed of secblemenb would be submitted to outside shareholders, with a form of proxy attached, for confirmation, ab the nexb half-yearly meeting. A special meeting would be called for confirmation of the resolutions in Older that they might take effect at once. Thanks. — Mr J. H. Upton moved a vote of thanks to the directors and officers of the Company for their services during the past half - year. He said everyone knew that the Bank had been through unexampled difficulty, and those who had steered the ship safely were deserving of hearty thanks. Mr Upton also paid a graceful compli, ment to the ability of Mr MurrayInspector, who is on leave of absence owing to ill-health. Mr Ewington seconded the resolution, which was carried. The Chairman, in acknowledging the vote on behalf of the Board, said that he thought he might claim that the diiectors had used their best efforts in looking well atter the affairs of the Bank and the interests of shareholders. Ib would be gratifying to them to know that they had the confidence of tho shareholders. He called the attention of 'shareholders to the valuablo services rendered to the Bank by Messrs Johnson and Horton as a deputation to London, and added that their services would not be forgotten. — Mr Tolhurst returned thanks on behalf of the Btaff and said that he would have great pleasure in informing Mr Murry of the kind terms in which he had been spoken of by here. The rough minutes were then read and the meeting terminated.

The following curious misconception is given currency 'to in the American cablegraphio accounts of the Samoan hurricane : — " H.B.M.s. Calliope took the news of the disaster to Auckland, making the trip from Apia in three and a half days. She steamed 18 knots an hour." To make a long story short — Send it to the sub- editor of a newspaper. The lawyer is the only man of sense who does not prefer arbitration to a lawsuit. Theatre-goer (indignantly) : " The idea of a baby yelling like that at a theatre ! Whydon't you havethe youngster put out ?" Manager (helplessly): "I dare not. It's the pet grandchild of the little actress you threw that bouquet to." A man recently broke off a marriage because the lady did not possess good conversational powers. A cynical friend, conementing on the fact, says, " He should have married her, and refused her a new bonnet, and then ho would have discovered her conversantoial poweus !''