MR. BUCKLEY AND THE BANK OF NEW ZEALAND.

New Zealand Herald, Volume XXVII, Issue 8316, 24 July 1890, Page 5

MR. BUCKLEY AND THE BANK OF NEW ZEALAND.

[BY TELEGRAPH. —OWN CORRESPONDENT. ] Wellington, Wednesday. The following replies to Mr. George Buckley's recent letter anent the Bank of New Zoalnnd appear in to-day's issue of the Mew Zealand Times:—

Sir, Pressure of other matters on my attention has prevented my earlier notice of Mr. George Buckley's letter in your issue of the 7tfi instant. Indeed, after the exposure of his conduct, which took place at the shareholders' meeting in October last, I have not felt it incumbent on me to trouble myself about what lie may think lit to write. But as lie has since that meeting published letters of mine, written in the > unguarded freedom of private communication (a proceeding 011 account of which I am told that oven his ally, the Financial Times, blushes for him), and has persistently attempted to put a false and offensive construction upon them, l am induced to ask you to give mo space for some remarks. The false suggestion is that L proposed to him, and even tried to coerce him into concealing from the shareholders what they ought to know. Now there is not a word in my letters proposing or suggesting anything of the kind. The question of the nature of the next report to the shareholders was in 110 way under consideration, or the subject of correspondence. When I wrote him the letters in question, I had just been in receipt of letters from him. In one lie refers to deficiencies in various accounts, deficiencies he afterwards made so much of, and adds, " But we cannot remedy this, and must only try to make the best of it." In another he speaks of " such arrangements in London as would place the Bank beyond peril in the future,'' and in yet another 110 refers to his retirement, which he would not postpone "beyond .July, when I intend to retire and leave Auckland," and never a word about the necessity or intention to make explanations to the shareholders. I heard in the meantime by cable that lie was quarrelling with his colleagues, acting in a way that was likely to be prejudicial to the Bant, and proposing to retire from the Board in an inimical spirit. 1 naturally cautioned him as to his responsibilities should he, by his action, bring the Bank into trouble, but so far from seeking to shut his mouth, I cabled to him "Of tlw utmost importance you defer withdrawal pending receipt of my letter. Your retirement should take place at half-yearly meeting, when you could explain i/our position aii'l retire with dignity," and this letter I asked him to wait receipt of is the very letter frori which it is sought to show that I wished t> coerce him into not making explanations to shareholders. 80 much for his ideas an I mine at that time. But now let us see what we respectively did in the matter of explanation to shareholders. [ returned to thy colony just prior to the half-yearly meeting i:i October. At that meeting the directors, acting largely on my counsel, stated that in the outset of the realisation, which naturally dealt with the worst accounts —" The result is a considerable deficiency." It was open to shareholders to demand more precise information, but, 011 the contrary, they unanimously, in a crowded meeting, passed a resolution, " That the information given by the directors is sufficiently full." But not only did we male this disclosure, we proposed that the control of the Bank should pass to a new directorate, a change which must involve an exhaustive re-examination of the Bank's assets, and i>u authoritative conclusion as to the real amount of the present deficiency. Contrast with t his his action at the previous half-yearly melting. lie cannot deny, for it is in evidence, that prior to that meeting he knew of tie deficiencies in certain accounts of which ie subsequently made so much, and that tie subject was exercising his mind if shown !>y his writing to me ten days before the meeting going into the question of these deficiencies, and ending with the significant remark " The estimates made at the head of this I keep to myself." It does not appear tint he thought it incumbent 011 him to cautiin even his fellow directors; as for shareholders lie goes somewhat further. At tho meetii g in question he as President of the Bank, delivered a reassuring speech, saying, among other things, " You will doubtless agree with me that I am justified in taking a hopeful view of the future," ending by recommendirg a 7 per cent, dividend, and never a worl about the deficiencies. The action ho took in regard to his shares and otherwise soon alter delivering this reassuring speech hits been already made sufficiently notorious. I need not comment upon it. —i am, &e., oils' Murray.

Sir,—lt is with extreme regret that I find myself impelled to abdicate the position 1 have taken up since my election its president of the Hank of New Zealand, viz., a determination in the best interests of the Hank not to he drawn into controversy with its detractors. But the reiteration of previously refuted statements anil charges by Mr. George Buckley compels me to ask space for a remark upon some statements made by him in your issue of the 7th instant. I do this as a member of the late Shareholders Committee, and the member most closely and actively associated with Mr. Buckley in the work of investigation. As such 1 entirely demur to Mr. Buckley's suggestions that the committee simply accepted the estimates set before them by the Bank stall. 1 say estimates, because as to figures and information they were bound to accept them. These latter were supplied in the fullest manner. The name of every debtor large and small, the amount of his debt, Ids assets, and their nature, were all set out in the returns placed before the committee, and in regard to that information it | has not been shown in a single instance to Ik- either false or intentionally misleading, llow far properties were fairly valued and by competent persons, it was the duty of the committee to inquire, and they did so. it was also incumbent on them to examine whether in the estimated expected out-turn of stocks, book debts, and the like assets, heHank staff had made fair allowance for depreciation in realisation. This they also did. In these matters J can testify that Mr. Buckley was most vigorous and careful, lie called in from time to time the various officials concerned, and obtained such further information as he desired. fie called for fuller reports and explanation of various larger accounts, and examined the books and correspondence; in fact, Mr. Buckley, in his eagerness to throw discredit upon others, does himself injustice in implying that ho performed the duties he undertook in the perfunctory manner his subsequent statements would lead one to suppose, lie may do so if lie thinks fit, but he has no right to subject other members of the committee to an imputation so damaging. Mr. Buckley says that three members of the Shareholders' Committee insisted on what he calls the "true state of matters'' heiiw made known— his way of statin-matters. 1 am prepared to state from my intercourse with the late Mr. .Justice Gillies, that while lie considered that no stigma should be permitted to rest upon the committee, ami no one so far as 1 am aware has attempted to throw any stigma upon them, lie considered the work of the committee done, and that it rested with the directors, who were responsible, to make such explanations as they might think fit. At the shareholders' meeting on '24th October last, the directors did make explanations, which the shareholders by resolution declared sufficient. As some evidence .of Mr. Buckley';: way of treating his fellows, whether committeemen or directors, 1 ask you to publish the enclosed copy of letter from Mr. G. Buckley to Mr. Justice Gillies, together with a copy of an extract from Mr. (Sillies'letter in reply. As to Mr. .John McLean, if he supported Mr. Buckley in the course he took, it is very contrary to the impression conveyed to my mind of Mr. McLean's views. Then, in regard to the " more specific action," which Mr. Gillies is quoted as having recommended, it is contrary to the terms of the report that Mr. Gillies recommended anything of the kind, and, as a member of the late committee, 1 am in a position to testify that even the reference to " specific action," which was made, was unwillingly conceded by him to Mr. Buckley for the sake of peace. I cannot but express my regret—a regret which I am sure Mr. Buckley must now himself feel, not so much that he should make explanations, but at the manner, the spirit, in which and the position from which he lias made them. Had he met the shareholders as president, and made a calm and moderate statement in a manner showing concern for the real interests of the shareholders, his action, whether concurred in or not by his co-direc-tors, could not have deprived him of respect. —I am, yours, etc., W. H. Colbeck. (ENCLOSURE). Auckland, Bth August, ISB3. Dear sir,—Apart from the want of courtesy to the committee, and your evident- intention to ignore and defeat the wish of a majority, I consider your action of yesterday caused the delay of at least ton days of valuable time in missing the Australian mail, a matter of serious importance just now. 1 therefore regret very muiff being oblige:! to intimate that I cannot in future recognise you as chairman of the Committee of Shareholders.—l am, dear sir, yours faithfully, Geo. Buckley. To Mr. Justice Gillies. [Extract from letter from Mr. Gillies to Mr. Buckley, dated August 8, ISBS.J Your note of this date to me I received whilst sitting in Court. It is, to say the least of it, both extraordinary ana incomprehensible. You speak of my want of courtesy to the committee. Will you kindly inform me in what respect, as I am entirely unconscious of any want of courtesy to the committee or any member of it. You further speak of my evident intention to ignore and defeat the wish of a majority of such, an accusation I feel to be as unjust as it is unwarranted by facts, {Since Monday morning I have been absolutely prevented by my official duties from attending any meeting of the committee. ,and that I would be so prevented was

intimated to yourself and Captain Colbeck last week. -My nominal position as chairman of the committee gives mo no power either to "ignore or defeat" any action a majority; of the committee may think to take. I was appointed by the full committee chairman, much against my will, and have no desire to hold it. If the committee think that the business of the committee will be facilitated by some one else being appointed chairman, I shall bo happy to at once place my resignation in their hand*.