THE BANK OF NEW ZEALAND. (BY TELEGRAPH.)

North Otago Times, Volume XXXVII, Issue 8087, 27 September 1894, Page 3

THE BANK OF NEW ZEALAND. (BY TELEGRAPH.)

Wmlt/Inotojn, SopLembor 26. A special meeting of tho sharoholdets of tho Bank of Now Zealand wan hold today to ohct five directors. About DO wore present. Mr Murtay preside 1. Tho Chairman said Una whs no fcitno to s-iy anything about tho Bunk's affairs, and not boing a diroctor or an oflicial thoy could nob expect him to do ho. He had simply undertaken a special mission with regard to tho guarantee of two millions, which would add strength and stability to tho Bank. Next as to tho right aud duty of the Government to appoint a president and auditor, some poople thought political *ppointrnonts would be made. 110 folt confident the Govovnmont would mako a r/ood seloofcion. Tho Government will know no more of tho affairs of tho customers of the Bank than they did in tho past. It Wrts quito erroneous to suppose tho Government could know anything about confidonthl affairs. Tho president will only interfere to stop improper businoss. As to the proposod amalgamation with the Colonial Bank, ho said tho chief motivo in promo'ing tho projoct was to add largely to the business, and therefore to tho proflts of the B*nk. 110 boliovod that at fir«b tho Government wore favorable to tho schome, and that some circumstances must havo arison to change 'heir views, tlo proposed that the Hon. W. W. Johnston, Messrs W. Booth, M. Konnody, T. G, McCarthy, and ilichard H. Glyn bo elected now directory. Ho explained that tho London Board had resigned. Mr Lodder moved that tho number bo increased to eight, but this was not seconded. Tho Chairman said tho shareholders were Ihblo to tho Government 'or LlO. Mr M'Kenzio said the shareholders in tho Bank had beon very roughly treated by tho Government. Tho Bank had formerly rendered the Government great Bervice, and had now a right to expect every consideration in return. He failed to eeo howtho Bank had drifted into its present position, whereas not long since tho business was reported to bo sound. # Mr Murray explained that the necessity of having to apply for a Government guarantoo aroso from a fall in tho profits, not so much of tho Bank ac of tho Estate Company. There had boon a fall in values, anl trade was bad, thoroforo the directors found themselves unablo bo pay a dividend. Other shareholders thought greater information should be given, but Mr Murray explained ho was nob thoro to discuss Bank affairs, Mr Murray said all tho branches of tho Bank wore paying, but tho position was they were not paying enough, and ho said the Bank could do twice tho amount of buainoss withoub any appreciable addition to tho expense. No bank in tho colonioa, ho said, had faced a position such as this Bank had on two occasions. 110 fixed on five aa tho number of directors chiefly on tho grounds of economy, and that largo directorates were undesirable. Mr llyloy, of Dunodin, deprocated fault-finding, aq those who had boun the cause of the Bank's position woro not hero. Circumstances had beon operating lately which brought down values, and tho Bank was among other sufferers. Ho trusted no undue hardship would bo placod on the shareholders in tho way of calls. He supported tho power given to tho Government to appoint a president and auditor, and said as a result of enquiries ho would support tho board nominated by Mr Murray. Tho motion was then put and carriod. Tho Hon. W. W. Johnston, replying on behalf of tho directors, siid .hoy accepted office determined to inflicb no haidship on tho shareholders, Tho meeting then closed.