PROTEST MADE.

Ashburton Guardian, Volume 65, Issue 43, 30 November 1944, Page 8

PROTEST MADE.

PROPOSED PURCHASE OF BANK. RESOLUTION BY SHAREHOLDERS. (P.A.) WELLINGTON, Nov. 29. At a special general meeting of the proprietors of the Bank of New Zealand to-day Mr F. W. Dawson, a shareholders’ representative on the board presided over a very largely attended meeting of shareholders from ail parts of the Dominion. An apology oa vhe ground of ill health was received from Mr R. W. Gibbs, the other shareholders’ director. In terms cf fhe notice convening the meeting, the position arising out of the resolution passed at the recent Labour Conference, whereby it was resolved that the Government take over the privately-owned shares of the bank, was discussed, and the following resolution was passed: —

“Because the proposal to take from private Shareholders their holdings in the bank involves much more than the sale cf their shares, whatever the price, and in particular would bring to an end the normal and proven standards of responsibility and efficiency that have been an essential feature of the existing banking system, and" would constitute the bank a State department, directly subject to the uncertainties of political control and direction; and because the proposal does not arise out of any inherent weakness or inability of the bank as now constituted to meet the full needs of the Dominion’s economic life in wav or in peace—on the contrary the bank’s service, its stability, and its efficiency have been approved by responsible heads of the Government — but arises out of a demand for State ownership under circumstances which indicate in the clearest way the influences to which the bank would become subject, this meeting of proprietors of the Bank of New Zealand records its emphatic protest against the proposed expropriation of privatelyowned shares in the assets and goodwill of the bank. “This meeting further considers that such expropriation would be a serious infringement of the statutory, long-established, alid well-earned rights of the proprietors, and would inflict grave injustice on them all and hardship on some; and further considers that such expropriation would seriously impair the confidence of the banks’ customers, both depositors and borrowers, and would destroy the established goodwill of the bank and its ability to provide either an efficient banking service for the public or a sound and profitable investment for the State.” The meeting appointed a committee of seven, with power to add to their number, to act in conjunction with the proprietors’ representatives on the board of directors of the bank to take all steps necessary to protect the interests of shareholders, and the following members were duly elected: Messrs M. O. Barnett (Wellington), Samuel Blackley (Wellington), T. N. Gibbs (Christchurch), A. D. Park (Wellington), Stronach Paterson (Wellington), E. J. Smith (Dxinedin), and R. N. Watson (Wellington). A more detailed statement regarding the meeting will be issued by the committee as soon as possible.