BANK OF NEW ZEALAND.

Mataura Ensign, 24 April 1913, Page 5

BANK OF NEW ZEALAND.

STATEMENT BY THE CHAIRMAN. PKB UNITBD PEEBB ASSOCIATION. WELLINGTON, April 24. Mr 'Jeauohsunp fduurman of the Bank oi' Now Zealand) Bays: "With reference to tho statement attributed to Air Watson at Auckland, 'that lie. and his colleagues were opposed to the suggestion that tho iirst issue of capital should be at a premium,' I think it is my duty to say at onoo that no Mich opinion has boon expressed by Mr Watson's colleagues. It is pretty generally known that he and Mr Martin Kennedy, representatives of tho shareholders, maintain that tho new shares created by the bank should bo isswd to shareholders at par, but to prevent the undue inflation in tho "rabies of the existing shares it would bo well for buyers to plainly understand that this view is not shared by the other members of the Board, inoluding myself. Having regard to tho earning power of the bank, its largo Toserve and undivided profits, together with the value of its goodwill, I cannot conceive why Messrs Kennod.v and Watson should expect to carry such an unbusinesslike proposition. If as.a result of their advocacy shares were u-usucj;! at par (the height of improbability) it would be tantamount to presenting the existing shareholders with a bonus of approximately £6 13s 4d T>er share; that is, assuming now shares were called up to £3 6s Bd. Thero is no justification for this. In any scheme presented to Parliament for ratification tho interests of the bank and tho State should unquestionably be paramount."