The Evening Star. WITH WHICH ARE INCORPORATED The Evening News, Morning News and Echo. FRIDAY, OCTOBER 12, 1838.

Auckland Star, Volume XIX, Issue 241, 12 October 1888, Page 6

The Evening Star. WITH WHICH ARE INCORPORATED The Evening News, Morning News and Echo.

FRIDAY, OCTOBER 12, 1838.

For the cause that lacks assistance, For the wrong that needs resistance, For the future in the distance, And the eood that we can do.

The meeting of the Bank of New Zealand shareholders proved, as was to be anticipated, a rather stirring event in our everyday annals—decidedly more breezy than has been usual in those serene precincts, where smiling shareholders and self-complacent financial grandees have been wont to exchange congratulations over prosperous business and handsome dividends. The Committee's report, which was the prelude to this meeting, was the sensation of the day. It had evoked general discussion and some criticism. Not only were the facts disclosed in themselves of a startling character, but they were presented in a way tending to show that in the Committee the indignant shareholder had found an admirable —not to say indignant—exponent. And it must be said that the salient facts of the report, which appear to be undisputed, are such as to justify animadversions so strong that had the Committee's presentment of them been less trenchant and outspoken, public feeling would not have been satisfied. As it is, this satisfaction has been achieved, and perhaps even a little more. But if the Committee erred on the side of severity in their censures, it was an error on the salutary side. Whatever extenuation may be urged for past errors, either in the circumstances of the time or the difficulties of the position, a far from inconsiderable residuum of delinquency remains which, in the interests of public credit, and even of commercial morality, call-tl for uncompromising exposure. Some of those amenable to the Committee's censure have not taken it meekly. Their defence is before the public, and we feel no call to pronounce on the general merits of it, beyond noticing an air of special pleading, personal bitterness, and absence of consideration for the case of shareholders, more especially the poorer shareholders, to whom the loss to which they have been put means great personal hardship. The facts disclosed are ugly facts, and the victims are not likely to forget them for some time to come, even though a dust of personal controversy be raised around them.

Some of those who urged that the Committee had either gone too far or not far enough, appeared at first sight to have a case, because the Committee, no doubt by inadvertence, had placed their reference to transactions calling " for the gravest censure if not for more specific action," in apparent connection with advances to directors, and had given some ground for the inference that these advances were referred to. The Chairman's explanation that it was not so, cleared up this point; and in declaring that the censure rested on the Board as a whole for permitting undue advances of this kind, he disposed of the demand for the publication of names, which, in the absence of corruption, would of course be inadmissible. That there were degrees of blameableness among the directors is most probable ; and any who may have been off the Board when objectionable business was initiated, or who may have joined it subsequently, come in for obloquy which they are only in a minor degree entitled to share, if at all. But it remains for such, if there be any such, to clear themselves by resigning and submitting to the ordeal of re-electfon. This is very clearly suggested to them by Mr Buckley's effective retort to Mr Reader Wood's— surely uncalled-fOr—charge that members of the Committee had joined the Board and sat with directors whom they denounced. Who could be /more likely to be suitable as directors than gentlemen in whom shareholders h.ad shown their confidence by nominaiting them to the Committee ? Indeed, those gentlemen owe it as a duty to the shareholders, even at some personal sacrifice, to carry out those sweeping measures which the shareholders have endorsed solely upon their recommendation.

To Mr Buckley the thanks and support of the shareholders are obviously due. He has undertaken a task both difficult and ungrateful, some of the disagreeables of which he has already experienced. At the meeting he certainly created a most favourable im.pression as an unflinching assertor of the shareholders' claims, and a man by no» means backward in saying what he thiniks. The participation of such men in the future administration of the Bank is the best guarantee

the shareholders can have that their interests will be well looked after; and wbile we believe that the feeling generally prevails that the past experience would not, in any case, have been thrown away—that the Bank has passed through a very costly ordeal, which would cause any set of directors to steer clear in future of pitfalls which have already proved so disastrous—yet public confidence has been materially strengthened by the knowledge tha f there has been such an infusion of new blood into the directorate as will afford a guarantee against any .disposition to view with a too lenient eye the very grave mistakes which have undoubtedly been made.