Bank Chairman’s Decision To Continue

Manawatu Times, Volume 70, Issue 266, 10 November 1945, Page 10

Bank Chairman’s Decision To Continue

MR. DONNELLY GIVES HIS REASONS CHRISTCHURCH, Nov. 9. The reasons for his decision to continue his sendee as a director of the Bank of Now Zealand haA e been given by the chairman of directors, Mr. A. T. Donnelly, in reply to a letter from Mr. W. S. Goosmau, M.P. In a issued to the Press, Mr. Donuelly says: “I received a letter from Mr. W. S. Goosmau, M.P., about tlio Bank of Ncav Zealand. Mr. GOO - man appears to be misinformed as to Avhat has happened and Avhy it happened. Mr. Chalmers and Mr. Porter approve of my reply, and I am sure my colleagues Avould do the same, but they have not seen it. Mr. Goosman has net replied nor communicated with me. Mr. Goosman’s letter and my reply are set out beloAv:

“Dear Mr. Donnelly: As one who was pleased to congratulate you on the very fine statement that you made to the last annual meeting of shareholders of the Bank of Ncav Zealand, I uow feel that it is my duty to let you know that I deplore the action you haA'e seen fit to take in connection Avith the acquisition of the bank by the Government, and I feel it would be the right thing for me to do to let you know that I intend to denounce your action in the strongest terms at the first available opportunity.” Still of Same Opinion

“Dear Mr. Goosman: I received your letter of November 5 and I am grateful to you for it,” Mr. Donnelly wrote. “I do remember you congratulating me on my address to the annual meeting of the bank, and I read in the papers, I think, that you made some references to it in your speeches during by-election campaigns. lam sorry to hear you feel so strongly about my decision to remain on the board and that you intend' to denounce my action in the strongest terms at the first available opportunity. It was very decent of you to tell me what you intend to do, and I appreciate your fairness very much. There are some matters which I should ask you to consider when you speak in the House. “(1) 1 have not retracted in any reBpect from any statement I made in my annual address.

“(2) I Avas of the opinion then, and am of the same opinion now, that there is not a national need, necessity, or benefit so far as I can see for the acquisition of the shares by the Government.

“ (3) I said that I had informed the Government tkat I should like to be relieved of my appointment when the bank is taken over. With great reluctance I was persuaded to change my mind about retiring from the board, and if I consulted my own wishes and personal interests I would certainly be glad to go. During the last five years I have spent most of my time in national Avork because I was physically unable to give any personal sendee during this Avar. Now that the war is over I arn anxious to return to my OAvn business again. The Go\ernment, my colleagues, and the executi\ r e of the bank know that I was reluctant to carry on, and I have told them all so over and o\ T er again. Vital Issues “I agreed to remain for these reasons among others:— “(1) If the AArhole board had retired the public confidence in the bank Avould have been shaken to a serious extent and much of the best business of the bank Avould have been lost Avithout influencing the course or decision of the Government. “(2) The Bank of New Zealand is the only New Zealand bank and the preservation of its business and integrity is a matter of public importance. •‘(3) The bank is a national asset and its Avrcck would destroy a public utility for which the directors could be blamed if the Government submitted a reasonable scheme of control.

“ (4) As the National Party, if elected to office, lias said that it will try to reverse the Government's action and restore the shareholders’ interest in IJie bank, it avus important that the business should be kept intact. The proposed scheme for exchanging shares for Government stock retained the identity of the shareholders and there was therefore every reason to carry on if that was possible. “(5) If the bank Avas Avrecked the damage Avould not have been confined to the bank, but must have spread, how deep or lioav far no one could tell.

1 ‘ (6) The Government undertook that in all administrative matters the bank Avould remain under its present management and the day-to-day conduct of the business of the bank will be governed by the same principles as in the past. “(7) The board remains as at present, strengthened by the certain appointment of Mr. Chalmers (general manager) and by the probable appointment of Mr. Ashwin (Secretary to the Treasury). “(8) If at any time there is any disagreement in principle betAveen the board and the Government, the board is entitled to retire. No Selfish Interest “You will therefore see that my decision to carry on avus not based on any selfish reasou and I was only prevailed upon Avith very great difficulty to agree to do it. Nothing that we have done lias deprived the National Party or the opponents of the Bill of any Aveapon of criticism or attack which was aAailable before we made our decision. Ne\ertheless, I say plainly that, placed as avg Avere, avo felt that just now there are some things higher or better than party or politics.

11 Since you Avrote to mo Mr. Paterson lias made a statement on behalf of'himself and Mr. Dawson which sets out the position from the point of view of the shareholders’ directors. I should like you to have all the information wc can give you and I have therefore sent a copy of your letter and my letter to Mr. Chalmers. I am sure that both Mr. Chalmers and Mr. Porter AvilL be glad to tell you anything further you would like to knoAv if you would be good enough to call at the bank. I enclose a copy of my letter to Mr. Chalmers. I say again that 1 very much appreciate your fairness in Avriting to ir e and I hope that Avbat I have said will make my position and the position of my colleagues and the executive of the bank clearer to you than perhaps it was at the time you wrote jour letter. You are free to use this letter and your own, of course, in any Avay, either in the House or elscAvhere. ”