THE BANK OF NEW ZEALAND.

Temuka Leader, Issue 2048, 20 May 1890, Page 1

THE BANK OF NEW ZEALAND.

London. May 15. A director of the Bauk of New Zea. land, writing to Truth, refutes Mr Buckley's charges as to the position of the bank. The London board do not intend to assume control until they are satisfied as to the status of the bank, and the public is fully informed of its exact position. May 16. M»jor Geo/ge, the <u>lunia] representative of the Bank of New Zealand, has met with a favorable reception in financial circles, He is confident that if Mr Hean reports favorably the management will be removed to London; and the prestige of the bank gradually but completely restored. May 17, On the publication of Mr D. Hean's, report on the position of the Bank of New Zealand shares fell |, but are now steadier. The latest, quotations for old shares are £5, and for new shares £B'. The large shareholders met at the bank to-day, and agreed that it was desirable thac an immediate transfer of the head office to London should be made, and that additional strong names should be phced on the London board ; also to write down the capital by the ascertained deficiency, and place the surplus value of sites and premises in the colonies to the reserve fund, lhey all agreed that dividends should be confined to a moderate amount until a strong reserve fund had been formed, and that a meeting of the shareholders be calied to elect the new board when Mr Hean returns to London, There was no approach to a panic, and the directors were prepared to meet any emergency,

la an article on the report the Standard says that the banking business is excellent, and lhat most of the current profits for years had been swallowed up j in efforts to.cope with depreciating property. Auckland, May 16. The following is the text of Mr Hean's message to the London board of the Bank of New Zealand :—"I make the net deficiency £165,000, namely, additional loss on the globo assets in December last, £349,000 ; loss in current business, maiaiy on old accounts, as at 24th February last, £54,000; Sydney defalcations, £28,000. Against which j there is surplus—bank premises,' £150,0C0 ; et credit of sundry end suspense accounts, £16,000; and the total undivided profit, ineludiog the March half-yearly balance £IOO,OOO, Fresh valuations have been obtained of all station properties by perfectly independent valuers, whose opinions will carry weight in the eolony, I have not obteined outside valuations of New Zealand town and suburban properties, but I have personally exemined many of them, and in all cases revised, and where necessary modified, the 1888 valuation upon the evidence ot existing values. The Australian properties have all been revalued by outside reliable valuers, The amounts have been ar. rived at after careful investigation, and represent, to the best of my belief, the true <ind actual position of the bank, as far as it is possible to ascertain it. The current business is sound and good, and the connection most valuable, and capable of indefinite extension with sufficient resources and efficient management,

The Board of Directors at the head office, Auckland, are issuing a circular which states " that the present ; board of directors are in no way responsible for the generali position that Mr Hesn has found, and as they are satisfied as'to the knowledge, and capacity, and care, and pains he has taken, they do not hesitate to accept his conelusion, though in the; opinion,. of .most, if not all ottbem, a more sanguine view might justifiably have been taken. The transfer of the head office implied many rearrangements and much unavoidable delay. The directors feel that they had no right to anticipate the views of' the London board or "the nature of the declaration or proposals they make to the shareholders after the receipt of Mr Hean's report. They therefore obtained power to postpone the half-yearly meeting so that the London board might have time to receive and digest the full report of their representative, and to determine upon what recommendation they-would wake to the shareholders at ing. ; Mr Hean will proceed to London immediately to counsel the London Board, and l in concert with them and with Major George, the colonial board's representative, take the necessary formal measures for carrying out the instruction of the shareholders. As it will pr.obc.bly be necessary to make some further alteration in the deed of settlement to remove certain formal disqualifications for the offiee of director which would injuriousiy limit shareholders' area of selection, and which were not meant to act that way, I have to request, as a certain number of shares must be represented, that you will sign the enclosed proxy form, to be at the disposal of the London director for this purpose. Bv order of the Board of Directors. W, H. Colbeck."