THE BANK OF NEW ZEALAND MEETING.

Nelson Evening Mail, Volume XXIII, Issue 280, 1 November 1889, Page 4

THE BANK OF NEW ZEALAND MEETING.

{Concluded) Mr F. G-. Ewington raid be had a question to O9k. It was this : Mr Buckley bavinp stated that fun her losses stnon?iting to ovei £300,000 were made by the Bank on certain estates named, he would ask, have all tin assets' of thoee estates been realiyed ? The Obairmim replied : No. Mr Ewington then went on to say that if tb.it were the owe Mr Baokley wss speaking without the book, because on realising thoae estates the>aß39ta might be more than was estimated, especially as thoy consisted partly of teal estate. Bat as showing that Mr Baokley might not be adequately informed, }>c would >emind them that 01 the 27th April, 1888, the circular bearing Mr Buckley's signature said, "We think io well to B'.ate, j without delay, that carefully oompiled and ! certified returns prep&rei by the Bank staff supported where necessary by independent valuations, and which we have examined, ' Batißfy us as to the soundness and stability of the Bank. 1 ' Mr Ewington ulao read from the oiroular dated 3rd October, 1888, beating Mr Buckley's signature, as follows :— " Finally', as rcjjards the Bank, it should bo borne in miod that the ordeol of suoh an investigation,,at a time of depression so extreme, ie one which would be trying to any institution. Other B=»nke, now strong and prosperous, hive had trying episodes in their history, and the treaohnufc oharaoter of oar report may be taken as evidence that we have determined to face and disclose all the facts.- The gocdwill of the Bank's business ia of great value. It has in the past divided among shareholders over and above 10 per oent. divider de. sums whioh aggregate nearly doable the ainoant of the capital we now find to be lost, and while desiring to guard against the creation of unduly inflated expectations, wo aro now in a position to say, from tbe figures of the halfyear jast closed, tbat even now the Bmk's legitimate business ia capuoio of yielding pood dividends, notwithstanding fha serious drawbacks under whioh it has of late been working. When timo has been given to enable the directors to get rid of unproduc* tive assets, and to develop the Bank's legitimate operations, Btill better reanlts may be confidently expected. On its merits, therefore, the' investment is one whiob, it appears to ©by may bs expected to yield satisfactory jetarne, and /within a short period to command a coWderabla premium." Mr Ewington added tbat in hh speech from the ohsir on the 22nd October, 1888, Mr Bnokley sdded: "tfbe pWtion is Bfirong, a.Dd therefore satis* factory . , . and, in view of thaoiiournstanceß ie which the Bank has been placed, such a reßult is, I venture to say, gratifying £04 even surprising/ Now, Mr John Muy*»y— wno knew morß ci . thio Bauk ' 8 aft ail? *» an a °y otne . r man ~ Sfti(i lno P oßitioQ was no* obanged rhateriaily ; therefora he maintained that- Mr Buckley's figures might be unreliable. He would like to add what was likely to be forgotten at a time like that, when personal feeling ran high, that the prospects of too country weite good at pre« Beot, and if the Bank oi New Zealand was left alone to quietly oarry ouib the policy laid doVo bVthe direotore, she would soon right fceieelf. No less than 1002 person^ had zeceafcly selected large quantities of Crown gander paying £171,000 odd fojr them j and no 1 leas ihan 145 new village selectors wtro amongst them. Oar railways had, during Jhe last half-year, yielded £25,000 in excess ot estimates ; the flax industry was prospering j- our mining interests were favourably developing; the labour market, was improved; crops looked well ; population jyas increasing; and the future of New Zealaad was pregnant with hope. (Cheers.) Mr Joseph Newman said he was one of the oldest men in the room, and therefore, on that account, perhaps, he had some right to speaK. He had been acquaiated with commercial affairs all hie life, and he had neve* met- with euoh conduct as they had had exhibited to them by Mr Buokley., In all the OOxnmeroial transactions ha had seen he had neve? seen anything bo gross or degrading to the individual, and if Mr Buckley had any sense 01 propriety or honour he must fee) humbled. He (Mr Newman) thought th<3 shareholders could not do better than pass unanimously the report and balance-sheet as proposed by tha president. Suoh conduct be Mr Buckley had manifested deserved the strongest possible censure^ (Cheers.) Mr Arthur Bull said he would be glad to be* allowed to make a few remarks. He was one of those who, having no interest in the Bank at tbe time of the issue of the committee's report, was induced by that report to take up shares. He presumed it might be taken for granted that but for the liberal response made b? the public. in subscribing for these new shares, the, value of the M shares would have' been 'small. Then they had .thjs elate o! things; That the members of that .com* xnittee recommended these new chares to the publio, with the result that the value of their own shares was rehabilitated, and then within a short period the Hon. Mr Buckley, president of the Banbj and the Hon. John McLean, of Bedoastle, Oamayn, two prominent members signing the zepott of that committee and recommending those shapes Jo the publio, sold out their holding (except a paltry five or ten shares), retaining their 3eats ori the Board until disqualified by 60 doing. He' did" not envy those hon. gentlemen. The Hon. George Buckley was reported to be wealthy ' the Hon. John McLean was stated to be worth £30,000 or £40,000 a year, made in this" out adopted country, the welfare 01 which was largely bound up with that institution, and he said that both these men had been guilty of conduct unutterably mean, cowardly, and avaricious. Mr McLean said that the value of what a man said depended on the truth of it. Mr Bull hod just stated that be (Me McLean) sold out while he was a director. He wan only a director for a a few months. Mr Bull : You were a direotor when your shares were Bold, Mr MoMean : I Bent in my resignation last April. I left it in the Bank. He said Mr Bull's statement in regard to him was incorreoi. Mr Bull contended that he was quite aoweot. Mr McLean's resignation waa withheld .until Mr Buokley got rid of hia shares. He could prove it, Mr Buokley flourished Mr McLean's resignation in the face of the other members of the Board of Directors to oompel them to ■do what he wanted, and after he had sold out lie pat in Mr McLean's resignation, after Me McLean had become disqualified. The Bey. B. Sommerville thought that no good, but much harm, would reault to the Bank from this disoußsion. The question resolved itself into this, Had they confidence in the directors of the Bank? For hie part, he had the most implicit confidence in them, And none whatever in Mr Buokley. Mr Baokley pointed out that he had fijskeu the shareholders if they would appoint a small committee to look over the accounts, and they had said il no. " As to Mr McLean's nßßignation. Mr McLean had placed bis resignation in his (Mr Buoi'ley'e) hands ; but the Board had no one to pat in hiß place at the time, and the resignation tf.as therefore kept back for • the convenience of Jhe Bank to a great extent. Mr Scott : We are aßked to a^oum the business of thiß Bank for you 1 Mr Buckley went on to repeat thai; .if there had been a full disclosure to the /Shareholders' Committee before they made that report, their estimate of losses would have been double, treble, and perhaps four or five times more. He had proofs of this —almost equal to an affirmation or oath, (.Cries of " Question.") Mr H. Green raised a question in regard to a review of the operations of liquidation, but was ruled out of order by the president. Mr Buckley, in replying to the various •peakers, said he would be able to review the discussion only very shortly. The personal matter had been introduced very much against his wish, and came from Major George and Mr Bull. The whole question of £he shareholders' committee was out of place there : it had been fought out amongst the Board Borne months ago. In regard to a remark .by Mr Upton, that he did not believe about the £300,000, did not he (Mr Buokley) say that this account should be snbinttted to a eonimittee? The question wajsYWefe the shareholders prepared to have dust thrown in their eyes 1 He maintained that this had been done year after .year. He contended that the deficiency existed, and would have to be provided for — il $ot now, some other year.gaHe Appealed to the members of the Boardf—they knew *ery.r;weU that ibis waß one reason why be ; toad -pent i in. his resignation, because they wanted to coyer thia up, and he would not

Major George : That is absolutely untrue. Mr Ball : There is not one word of truth in it. Mr Wilson : It is absolutely inoorreot. Mr Buckley said that the very last time he attended a Board meeting, Major Georgehe took his words down—said, "These defi* oieroies will not be known, nor an; notice taken of them, if you do not raise the question yourself." Major George : That is absolutely untrue, as most of your statements are. Mr Buckley : lam quite prepared to make an affidavit. Major George : After your conduct, I will no more believe you on yonr oath than I believe yon now. Mr Buckley : I do not ask you to believe me, but I am quite prepared to make an affidavit, because I took notice of it at the time. Mr Buckley went on to say tha he suggested that the accounts should be left to a committee, but the shareholders had declined. Mr McLean's resignation had been kept back, not on. his account, but on account of the Bank ; and with reßpect to the selling of shares, there was no secrecy whatever about it— he told the Board that the shares were in his hands and would have to be sold. With respect to the transfer of shares to Australia, Mr Johnston, one of the committee, said that he wished to sell his shares, and he made a remark to the effect that, rather than bring the shares down, it would be better to put them on the Australian register, and he (Mr Buckley.) also sent Borne of his shares. There was no secrecy whatever about it. Since Mr Johnston's shares went on the market, and they were known to be his, the price went down from JSB 15s to £7 10s. Mr Scott : Barefaced roguery ! (Laughter.) Mr Buckley, continuing, said that no one had felt iwre strongly the position of the shareholders' committee — the position that they were placed in, by being misled by false certificates. They had spoken about his remaining on the directorate, but he had been wanting to leave the directorate every day. He challenged Mr Murray to deny that before he went to London he insisted upon his (Mr Buckley's) promising that he would remain on the Board. And then, after Mr Murray had left for London, he (the speaker) wrote to him, and pointed out that a large sum was wanting for the globo account, and urging that if nothing could be done to save the Bank, or do anything for it, he iwould at least save the goodwill of it. He would not have referred to this had he not been attacked. On the 20th of May he wrote to Mr Murray a^ain, and told him that Mr McLean and he (Mr Buckley) had gone into the accounts carefully, and had made up their minds to sever their connection with the Bank, and wished to do so by the end of July. He had felt bitt^rly.the false position in whioh the shareholders' committee had been placed owing to the position of the Bank not having been disclosed before they made their report, On the 17th of June, he wrote again, saying that he did not consider himself justified in remaining on the Board, and he again wrote on. the 24th of June that the Bank was bleeding to death and drifting to the inevitable ; that the shareholders were being deceived, and that every day now, they were getting more reconciled to the position. He kept warning Mr Murray of the position of the Bank, and warning the .directors here too. Mention, had been made as to £he late Mr Justice Gillies. .He could only say that he had met him several times ; he (Mr Justice Gillies) did not say anything to him or mention the subject in respect to these deficiencies coming pn f The position, however, was considered so serious that he (Mr Buckley) considered it his duty jto Jet him know of it. He met him by appoi#tm,ent, and he came to the banking house, and they went over all these accounts just a fortnight o? three weeks before Mr Gillies' death. He was the .originator of the committee, and the ohairmari j' an.d he had said, "No imputation as to the honesty "and £ntpgrity of the committee in making the report pan be allowed to rest upon them, or claimed to tlum hereafter, Explanation must) be macio to the on behalf of Uie'Oomoiilteo/ 1 He also stated tbatpriS' feure ot buflititea iv Court had prpvemed bjs meetibg him. earlier; but before they could meti!, again Mr Ju&fcice Gilliea was dead. Mr Buckley naid that tha Committee had aeled mosi honorably, and pointed put lhaD when fcbey were officially appointed they had between them 1500 ahatae, &»d though the ehai'?a had gone down iv vulue they had never boiu out, The shareholders seemed to hays forgoitaa that. He had lost money, and it frad J>een a sacrifice wbicU no raau should be e*pe.o:gtj to make, Jkat hf sbould remain as a director, He knew tu^? there was a very wrong impito3jcm about that ne h-<d been handsomely paid, but he fipj}l§ P O6 acknowledge th<-.t be bad coon paid for any? thing bo hid done. He bad claimed that hja CEpenaea whilst he wan iv Aucklaud in aonnt.c,fcioii wjfck Clio Bank should bo paid.' He bad to keep ,up a house ia Eu gland, and remaining hera wop a Losy to him. When he left Anokiand, after paying his t^psngas, ho would fee very considerably oud of pocket through hia connection with tho ißank. Mr Buckley thea' proceeded to read a letter dntea March 9, 1889. The president interrupted, and' protested , against the letter bejng read, eaying that Mr Buckley was pledged not to read it, Me Buckley, however, went on, and read the letter, whioh was signed by Mr (Tolhurst and two other offioeis of the Bank, and whioh drew attention tp the continuous heavy losses on foreign deposits, but stating that they were prepared to carry on the business of the Bank until the directors could communicate with the shareholders and the London Board, That was the predicament the Board was placed in, and why they did not say anything before. Why did Mr Murray go home ? To see if any arrangement could be made to strengthen the Bank. Why was he o.x Bookley) asked to stay in Auckland till Mr Murray eamu back, but for the same reason, The' Bjitiiphol&eta had been misled, and he blamed ebme of the head officers. He denied that he had used any .threads about his resignation, He said he would remain on the directorate till the end of August, and he kept his promise. He did not flourish Mr MojUean'a resignation in the faces of the other directors, He said they oould have it at any time to suit jfcbeir convenience. Ho was quite prepared to meet, pot only the Auckland shareholders, but also tha chareholders in other places, and give a full explanation of affairs. Mr Murray eajd the direotors had informed the shareholders that the globo ac« count at this stage showed a .considerable deficiency, but they did not think it in. the interests of the shareholders to refer to that more precisely, as they proposed that the control of the Bank should be remitted to an entirely new set of people in London, who woulu be in a position to deal with the question, Ajid was it to be assumed before, hand that these genftemea would probably deceive the shareholdero, and not tell them how their affairs stood t Thp B,oswrd recommended the shareholders, before going into these details, to put the Bank into the hands of men who could carry it through. The discussion which had beeja raised by Mr Buckley would be injurious to the $ank, The London Board were in a strong position, and from the assurances he had received they were prepared to take the Bauk tip ; and notwithstanding what had been 4pE e ; he was not the least afraid of their carrying jt through. The question was, did they want ajij more talk there aboub the Bank, or did they pay that they would remit matters to a new set of gen« tlemen who would go ioto the whole quotation and wlio, being themselves large flhareaolders, might be expected to act for the best interests of the Bank. (Cueere,) The President, characterised a good deal of Mr Buckley's talk as •* bunkum." He conteuded ihist the Bank was as safe as tho Bank of England. He did not Bay that) they had not had losses ; but the globo account would cumo out perfectly fair if the direofiors were allowed 10 nurcc 11 for a reasonable time. Mr Buckley's amendment was negmivtd, and tha motion for tha idoprion of the report ana balance- sueit watt theu adopted. Mr Upton moved tho following resolution which he had referred to in bis previous remarkß:—"Thati uiider all the circumstapoea the information given by the Board of Directors is considered sufficiently full," Mr Fin, of Gisborne, seconded the motion, md id waa carried unanimously.

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