The Opunake Times. TUESDAY, SEPTEMBER 18, 1894. BANK AMALGAMATION.

Opunake Times, Volume I, Issue 23, 18 September 1894, Page 2

The Opunake Times. TUESDAY, SEPTEMBER 18, 1894. BANK AMALGAMATION.

“ Where’s there’s smoke there’s fire ” has proved true in this instance. Persistent rumours were circulated that an amalgamation was contemplated between the Bank of New Zealand and the Colonial Bank, and the Government have been pressed for information of late but nothing could be elicited. Now, however, definite arrangements have been made for carrying out the project, and the matter is to come before Parliament to-day. The terms of agreement are said to embrace a thorough investigation of the affairs of each Bank, and if such investigation produces a satisfactory result, the Bank of New Zealand is to take over the Colonial “ holus bolus.” The New Zealand is to issue fresh shares to increase its capital by one million, four hundred thousand of which, in fully paid np shares, are to be handed to the shareholders of the Colonial. The Board of directors is to consist of seven members, four to be elected by the New Zealand and three by the Colonial. The officers for the Joint Bank are to selected by the Board of Directors from the staffs of each Bank, and those whose services are dispensed with are to be compensated. The non-liquid] assets of the Colonial are not to be taken over, but are to be realised to the best advantage, and if they realise under par the deficiency is to be made good out of the reserve funds and undivided profit. The nonliquid assets of the New Zealand are to be realised by a Board, to consist principally of Colonial Bank representatives, and are to be treated the same as those of the Colonial, agreement is based on legislation being passed completely severing the Globo Assets Company from the New Zealand. After payment of four per cent on preference stock, six per cent on ordinary, and increasing the reserve fund yearly by £20,000, the remainder of the profits are to be applied to reducing the Estates Company deficiency. The amalgamation is to take effect within fourteen days of shareholders adopting a resolution approving it, Mr Murray suggests the advisability of the Government either guaranteeing any deficiency of the Estates Company’s assets or taking over some of the estates under the Land for Settlement Act, to the extent of £1,5000,000, as this incubus is a drawback in completing arrangements.