BANK OF NEW ZEALAND.

Otago Daily Times, Issue 10263, 22 January 1895, Page 7

BANK OF NEW ZEALAND.

THE LEGALITY OF THE CALL

As the calling up of the third of the liability of the shareholders of the Binkof New ZerJaud has caused considerable difioniisiou—not only ia the colony, but also in Kugland,—and as the lugality of tho action of the directors in making the call has been questioned, a represest&tive of the Otago Daily Times waited upon Sir Robert Stout to ask his opinion on ths matter.

Our reporter haviug stated his inissiou to the senior member for the City of Wellington,

Sir Robert Stout aaid : " When the bill was first introduced this call of one-third of the reserve liability of the shareholders was compulsory. It was, on the suggestion oE Mr George Hutchisou, mado optional at the discretion of the Colonial Treasurer. It deems to me that the shareholders aro now too late in objecting to such a condition. No doubt they migho have taken up this position : They might have said, 'We decline to accept the colony'a guarantee on tha issne of stuck or shares if we, the shareholders, have to aubmit to such a call.' Bat the shareholders neither in London nor here took up that position. They accepted the conditions of the act, and were, I uoderatood, grateful for the Legislature's interposition. It is now too late to raise points abnut tho call."

" Do you consider that there i» power to make the call ?" Sir Ko'jert was then asked.

" I certainly consider tusre is power to make the call," was hia rpply, "and I do not sea any defence tha shareholders can make in answer to it. I express no opinion as to what uso the call is to b8 put to. But thai tha shareholders will have to pay it, I have no doubt."

"Suppose the shareholders do not pay it, what will happen ?"

"I suppose what usually happens when shareholders do nob pay a call," Sir Robert answered, "They will be sued or tha shares may, I believe, be forfeited or sold. Ido not think it fair of the shareholders to have first accepted the Guarantee Act and then to try and repudiate one of the conditions of assistaDoe."

"What is your opinioa of the future of the bank ? '■'

■' Personally," Sir Robert aaid, " I know nothing of its assets. It has a good business, and, I should imagine, with pradent management, and if it is sot made a mere political machine, it should have, yet a bright career before it. No doubt- it is very h*rd on shareholders at pte3eßt, but what else could bo done ? If tihe presideat and auditor certifisd that a call wan noceesary the Colonial Treasurer would have undertaken a grave responsibility if he had not required a call to be made, and I understand the directors, who are largely interested, approve of the call." *' Do you think Parliament will interfere in anj way?" wa3 the next question.

" I would be sorry to endeavour tq predict what the present Parliament might do or not do. But what do you mean by interference ?"

The reporter expUioed that he meant interference with the cull.

" i should say not," replied Sir Robert. "If the bank is wise it will try to carry out its business as the business of a bauk should be ciriied out, and npt bother the House again. It has ample powsrs and, I repeat, a capital business, and if it caunot carry on without further parliamentary interference it would bs hotter if it stopped. Iv my opinion, however, its shareholders should have hope. Its directors, so far as I know them, ore able men, and I am well acquainted with two of them, slightly with one, and regarding tbe fourth I Itear him highly gpoken of. They are, I repeat, all able business men, and I believe they will do their utmost for their institution."

'' You do not think the outlook bad ?" was the final question.

" I do not see," replied Sir Robert, " why it should be so with prudence and economy. No doubt we ara in trcubleus times—we have often been so in the past; but we mqst go forward with hope."