THE BANK OF NEW ZEALAND.

Waikato Times, Volume XXXI, Issue 2541, 23 October 1888, Page 2

THE BANK OF NEW ZEALAND.

HALF-YEARLY MEETING. [BY TKLEGKAI'H—OWN CORRKSI'ONnENT.I Auckland, Monday. The Bank of New Zealand half-yearly meeting was held to-day, and a dividend of 7 per cent, was declared, and £34,000 was carried forward. The Chairman, in moving tho adoption of the report, said the Bank had undergone a trying ordeal, the results of which were reassuringand encouraging. Reviewing the figures in the balance-sheet, to see how the Bank had fared under the experience of the last 12 months, he said tho available cash resources were £2,700,000, being half-a-million more than at last half-year. The deposits had decreased £300,000, which upon a total of nine millions was insignificant, and under tho circumstances gratifying on the whole. They had been doing rather less business and keeping larger cash reserves, a policy imposed by a prudent rcgarc-i for-existing conditions, but which necessarily curtailed tho profits, which amounted to £32,007. This outcome of so large an aggregate business would be discouraging if all our assets were available for earning, but we hope before long to attain that gratifying position and with results in the shape of profit of a much more satisfactory kind. Wβ believe wo shall be assisted in this by better times and brisker trade. Settlement on the public land is mote active than for many years and the demand for property is distinctly reviving. From such improvements the bank will benefit in a double sense ; more of its resources will be free for legitimate oniployinent, and the employment will be more remunerative.

Sir F. Whitaker seconded the adoption of the report, Mr Reader Wood challenged some of the remarks made by the chairman at the last meeting relative to the late Mr Jame« Williamson. He declared that Mr Williamson's share account never was overdrawn £10,170 ; that he never had £10,170 of the Bank's money advanced to him for

any share transaction, and that tho Bank had not lost a single sixpense by Mr .Tames Williamson, but that on tho other hand, the Bank had £10,000 of Mr Williamson's money which Mr Williamson found very difficult indeed to get out of the Bank. Mr Rose, representative of Mr Williamson, vouched for the accuracy of Mr Reader Wood's statements. Ho thought at the time that the chairman's statement was made that it was very objectionable. He knew that the general impression in town was that £10,170 had been lost through Mr James Williamson, and ho could state Unit, as representative of Mr Williamson's estate, they were quite willing and prepared to meet in court any attempt to recover that money. The Chairman said he was sorry that the remarks ho had made were taken to reflect on Mr Williamson. He had no intrmtion to do so. He explained the transaction reK'U'ding tho shaves referred to by the committee, and s;iid they would be subject to further inquiry.

Mr D. L. Murdoch alluded to the rerr.arks made by the Chairman at the last mooting, n-gardine the telegram of a reassuring character i-ent to London about this tinio Inst year, after the half-yearly meeting. He s:iid he was not the iintl) >v of the telegram. but would assume his share of responsibility. It was sen: on the. best information at the disposal of the Bank, ;uul with the object of lessening the excitement in London, which must have proved very detrimental to the interei-t-i ot the ll.iiik. It was a reasonable estimate of the imsit.iuii at that time, and thoine-sige especially pointed to its condition, in case of a revival which it was now admitted, had not taken place. On the contrary the depreciation which had existed a year ago, was up to the last week or two much more pronounced. Therefore, there was no possibility of recovery, but the statement made by the president to the meeting was that this statement in the telegram was a deliberate falsehood and no one knew that belter than the directors and general manager. Now, in all fairness he would ask the president to remove the stigma from the gentlemen who occupied the position of directors at that time, and from himself. He did not ask him to credit them with great judgment; he could blame their judgment if he liked, but all he asked was that the president should remove them from the impulation of untruth.

Tho President replying to Mr Murdoch said that with his knowledge as a shareholder at that time he did not believe it, and now that he had fully gone into the matter as a member of the Committee he had no reason to alter his views. Either tho General Manager and directors were greatly ignorant of the actual state of the affairs of the Bank at the time that the cable was sent Home or the statement was untrue. Therefore he positively declined to withdraw one word that he had sai»l, as he believed still that it was a falsehood. Mr Murdoch said that with regard to that matter the chairman could not say in the future that he was not afforded an opportunity of denying what he called a malicious libel. Now." witli regard to the cable referring to the Patetere Company, and the very mixed manner in which the chairman referred to the floating in London of that company, and ot certain large commissions which were paid. He asked any gentleman then present, who was in that, room last Thursday, whether they did not receive the impression that the money for the floating of that Company and payment of the commission was obtained from the Bank of New Zealand. At that meeting, he could not fully remember all the circumstances connected with tho floating of that company, but since then the thing had come back to his mind. The Bank had made large advances to certain constituents on the understanding that the company would bo flouted in London. A.t the last moment it appeared that the floating of the company would prove a failure, unless certain shares were taken up by tho colonial proprietors. Rather than let the company fail, advances were made to enable the proprietors to take up those shares. As to floating the company, the Bank in London had nothing to do with it. It was floated by a " limited circle," whicli the chairman had been intiinacely associated with for many years, and very large commissions were paid to the members of that "limited circle." He only wanted to remove from the Bank the reflections which the remarks of the chairman convsyed in his relation of that circumstance.

The President: I ask Mr Murdoch to explain my connection with the "limited circle " referred to 1-iy him. I should like the explanation, as I had nothing to do with it.

Mr Murdoch said he thought his statement wae quite distinct. He then repeated his previous statement. The .President: I wish Mr Murdoch to explain fully. There can be no objection, as I suppose you are not under any obligation to secrecy in the matter. Mr Murdoch said ho thought there would be an objection.

The President slid lie thought he was entitled to an explanation, but since Ml , Murdoch would not give it he could only reply generally to what had been said. Now with regard to the Patetere Company it appeared to him, so far as he was able to judge, that perhaps it would have been hstter if the company had never been floated for the Bank stood to lose £70,000 by that transaction. However he did not withdraw anything he had said with regard to that. Now for the "limited circle." They all knew how companies were floated ; how some persons were paid at times to take up shares. He believed that the Pateteie Company was attempted to be floated by the Union Bank, and ha had heaid that a. member of the firm with which he had onco been connected had taken up shares in that company. He referred to the firm of Dalgetty and Company. Ho had, however, had no connection with that gentleman for many years. That was, however, the only way in which he could be connected by Mr Murdoch in the matter. He was, if he remembered rightly, in England, at the time tho company was floated. Hl3 did not then know much about the company, but he had heard that some parties ware paid a big , commission, and that they were paid by the Bank. He had not anything whatever to do with it, and had had no connection with the firm of Dalgetty and Co. for many years. There being no further discussion, Mr Browning proposed that Mr John McLean should be elected director, he being the only candidate. This was adopted unanimously. Mr Wilson and Mr R. McDonald Scott were elected Auditors for the ensuing term. Mr Boardman had previously withdrawn his motion regarding the qualification of auditors.