Bank of New Zealand.

Wairarapa Daily Times, Volume XV, Issue 4918, 5 January 1895, Page 2

Bank of New Zealand.

Sir Robert Stout on the Legality of the Gall. The following is from the Otago Daily Times: — As the calling up of the third of the liability of the shareholders of the Bank of New Zealand has caused considerable discussion, not only in the Coiony, but also in Eiighiiul.aud as the legality of the action of the directors in making the call has been questioned, a representative of the Otago Daily Times wailed upon Sir Kobert Stout to ask his opinion on the matter. Our reporter having slalcd his mission to the senior member for the City of Wellington,

Sir liobert Stout said:-" When the Bill was first introduced this call of one-third of the reserve liability of the shareholders was compulsory. It was, on the suggestion of Jlr George Hutchison, made optional at the discretion of the Colonial Treasurer. It seems to me that the shareholders are nowtoolate in objecting to such a condition. No doubt they might have taken up this position. They might have said, 1 We decline to accept the Colony's guarantee on the issue of stock or shares if we, the shareholders, have to submit to such a call.' But the shareholders neither in London nor bore took up that position. They accepted the conditions of the Act, and wore, I understood, grateful for the Legislature's interposition. Uis now 100 late to raise points about the call."

" Do you consider that there is power to make the call r"' Sir Kobert was then asked " I certainly consider there is power to make the call," was his reply, " and I do not see any defence the shareholders can make in answer to it. I express no opinion as to what use the call is to be put to. But that the shareholders will have to pay it, I have no doubt." " Suppose the shareholders do not pay it, what will happen ?" " I suppose what usually happens when shareholders do not pay a call," Sir Robert answered. " They will be sued, or the shares may, I believe, be forfeited or sold. Ido not think it fair of the shareholders to have first accepted the Guarantee Act, and then to try and repudiate one of tho conditions of assistance." ■" What is your opinion of the future of the Bank ?" "Personally," Sir liobert said, "I know nothing of its assets. It has a mood business, and, I should imagine with prudent management, and if it is not made a mere political machine, it should have jot a bright career before it. No doubt it is very hard on shareholders tit present, but what else could bedono ? If the President and Auditor certified that a call was necessaiy, the Colonial Treasurer would have undertaken a grave responsibility if he bad not required n call to be made, and I understand the Directors, who aro largely intorosted, approve of tho call," "Do yon think Parliament will interfere in any way ?" was the next question. .

" I would lio sorry to endeavour to predict what the present Parliament might do, or not do, But what do you mean by interference ?" The reporter explained that lie meant iiiterferanco with the call, " I should say not," replied Sir , Robert. " If the Bank is wise it will try to carry out its business as the business of a bank should be carried out, It has ample powers and, I repeat, a capital business, and if it cannot carry on without further Parliamentary interference it would be better if it stopped, In my opinion, however, its shareholders should have hope, Its directors, as far as I know them, aro able men, and I am well acquainted with two of them, slightly with one, and regarding the fourth I hear him highly spoken of. They are, I repeat, all able business men, and I believe they will do their utmost for their institution, "You do not think the outlook bad ?" wasthe final qnestion. "1 do not see," replied Sir, Robert," why it should be so with prudence and economy. No doubt wo are <in troublesome times—we have often been so in the past; but I we must go forward with hope."' •■