BANK OF NEW ZEALAND V. HISLOP.

Bruce Herald, Volume IX, Issue 811, 13 June 1876, Page 6

BANK OF NEW ZEALAND V. HISLOP.

(To the Editor.) Sir, — As Mr Maitland has given his decision in the above case as far as the right of the Bank to recover is concerned, and there being now no other similar case before the Court, I will feel obliged if you Avill allow me space in you columns for the purpose of throAving a little more light on the matter in dispute. I have nothing AvhateA-er to say against the decision of the Magistrate. Mr Maitland is universally acknoAvledged to be extremely painstaking and just in dealing Avith such disputes, and with the evidence before him in the above case there can be no difference of opinion about the judgment being legally correct. There is such a thing, hoAvever, as a legal right being a moral Avrong, and the action of the Bank of New Zealand is a case in point. The course pursued by the Bank bas placed me in a painful position, and I Avish to set myself right as far as lies in my power, The report in your columns of the evidence given by me for the defence is correct as far as it goes, but there are several omissions, and there are also other facts that were not ia evidence which I wish to make

public, for the purpose of explaining how such a case came before the Court. My evidence went to show that a certain understanding existed between the Bank and Stevrart and Gow with regard to discounting settlers' bills, Avhich, Avith the Bank's knowledge and sanction, Avere to be paid to us Avith produce. The present agent at first denied that there ever was any such arrangement, but the Bank's solicitor Avas afterwards instructed to cross-examine me as to Avhether Messrs Murray and Roberts had not, a few months ago, in course of conversation, mentioned that this way of settliug bills should be discontinued. This acknowledgment conclusively proves that some arrangement existed previous to that time. Mr Maitland, in giving his decision, expressed the opinion that the arrangement with the Bank Avas evidently cancelled in the conA'ersation Avith Murray and Roberts. Sucb, however, was not the case. There are always two parties to a bargain of this sort, and there Avas no change agreed to. Tbe conversation took place only a feAv months ago, after the Bank of New Zealand had enjoyed the benefits of 10 and 12 J per cent, discount on bills and reneAvals, for a period of eight or nine years. The account during that time was (for the Bank), by their oavh confession, one of the best in New Zealand. For a long period the annual turn over exceeded one hundred thousand pounds sterling. BetAveen the business at Balclutha, the branches at Tapanui and Mataura, together Avith the produce agency in Dunedin, all of which Avere Avorked in connection with the Bank of New Zealand, that institution made a round profit of thirty thousand pounds out of the account. A very large portion of this Avas the result of the arrangement by Avhich small settlers, Avho had no other means of paying, got their bills renewed from time to time, until they were in a position to cover them Avith produce. The proposal from the Bank a fe%v months ago, that this system should be discontinued, I regarded at the time as a very mild attempt to get out of the Te Houka difficulty. It seemed to me that the proposal came, if anything, a little too late, considei-ing the profit the Bank had made out of the arrangement. The effect on the business if I agreed to it Avould be that Aye Avould have to decline taking produce from all settlers who had bills running. They Avould, in consequence, have to sell their grain elsewhere ; and Avherever they sold their grain they would have to buy their stores, and Our StOCk was not bought in view of anysuch sudden change. Clearly, however, if the Bank Avanted to upset this practice, and at the same time act honestly, the plain and straightfonvard course to pursue Avas to gi\-e the settlers due notice of the impending change. This Avould also have given me fair Avarning to pack up my traps and shift my camp. Mr Christie's evidence about the agent's apparent ignorance respecting reneAvals is a further proof of the existence of the arrangement alluded to. If the settlers had been in the habit of paying the Bank directly the agent Avould know, or ought to know, Avhether they were renewing or not. If, however, as Avas the case, the invariable practice of settlers Avho had no bank account Avas to settle their bills Avith SteAvart and Gow, then his ignorauce is comprehensible. Had Mr Ritchie, Avhen placed in the Avitness box, been asked the question Avhether it Avas customary to discount bills for settlers Avho had no bank accounts, and Avho Avere in the habit for many years of acceptiug bills and renewals Avhich they neA'er met to the Bank, I am certain his evidence Avould have been that no Bauk Avould continue to discount under such circumstances, except by special arrangement Avith the drawers. Yet, if the agent's evidence is to believed, this Avas actually done by the Bank of New Zealand Avithout such arrangement. Durimr the time the account existed something like £150,000 Avas discounted by the Bank for settlers Avho never met their bills except by produce, and yet the agent pretends that the Bank ahvays looked to the acceptor for payment in cash, even though he had already paid the drawer in grain, and the proceeds of that grain had also gone into the coffers of the Bank, It is Avell known in this place that, for many years, the agency of the Bank of New Zealand had no other laAvful or visible means of support, than Avhat Avas derived from our account ; but as soon as they were in a position to erect a palatial bank out of its profits, they determined to kick down the ladder by Avhich they mounted into public favor. With regard to some of the other cases Avithdrawn from the Magistrate's Court, Pink's, Ayson's, &c, I hare nothing to do but I believe they are peculiar in some respects. The attempt of the Bank to recover any of the other disputed cases is, however "futile. The parties concerned come from tow far north to be caught in such a trap. If the Bank loses anything by the account it has itself or its officials to blame. Instead of trying to make the best of things under the circumstances it has simply gone about like a bull in a china shop, smashing np everything and everybody in its power, thereby, no doubt causing some loss to itself, and bringing ruin on the general estate. I have only to add that] the Bank pressed me to reneAv liabilities to settlers and others until it got further securities completed. These Avere all completed in January, Avith the exception of a bill of sale for £3000 o\-er Mr Archbald's stock at Mataura, Avhich that gentleman fortunately refused to execute. The reneAval bills fell due in February : and after collaring the fuuds paid in to meet them, and having secured all the securities it I could grab, and not-withstanding repeated promises that no such " dirty dodge " Avould be attempted by such a respectable institution, the Bauk stopped my credit on February 2ud, M^ Roberte iad^ee^ w<j tp assign th^f

estate to tad afterwards to get tjie assignment confirmed, and also to keep quiet iiuiljiay fibthing against the Bank by a|distinct promise that he would see that' T got the stock and business back again all right. Instead of' keeping his word, however, he sold it to Soutter and Gray for £1400 less than our offer. I am, &c, | A. Stewart.; Balclutha, June 12, 1876. j