THE COLONIAL BANK.

Otago Witness, Issue 1192, 3 October 1874, Page 9

THE COLONIAL BANK.

A special general meeting of the proprietors of the Colonial Bank of New Zealand was held on Wednesday, iv the Masonic Hall, for the purpose of electing seven Directois and two Auditors. Mr W. J. M. Larnaeh was unanimously voted to the chair, and about 200 shareholders were present.

Mr Lakkach, having read the advertisement notifying tho meeting, said there appeared to be 15 candidates for election as Diiectors of the Colonial Bank. If the meeting would bear with him before proceeding to the election of Directors, he would give some further explanation of what had occurred .since the institution of the Bank. About the end of April the promoters held their first meeting, and the Bank was then fairly initiated. A Sub-Committee was appointed to proceed with the promotion of the Bank, and another meeting -was held on the Jst May, when they commenced to receive applications for shares. He need not tell them, from the manner in which the applications came in from Otago and Southland and other places where the promoters were well known, it was very evident the necessity of the step which the shareholders had agreed to support. The want of a Colonial Bank had been illustrated from tho manner in which it received encouragement. Of course, being a very large Banking Company, and different to any other company started in the community, it would require more efficient and delicate management. Ho could assure those present that the Committee had earned the thanks of the shareholders for the energetic way in which they had carried out thoir duties. They induced Messrs M. Holmes and W. A. Tohn'o to pro -cod Noith as ;i deputation, to establish a feeling in favour of tho Bank. After those gentlemen had spent some time in Christchurch, they were compelled to return to Dunedin, owing to thoir private business engagements. The Committee, however, were not to be beaten, and they induced others (Captain iioyd and Mr Cutten) to go the same errand. From' their journey the Company obtained a considerable amount of »upport,and thoyobtablislied the Bank in the Northern Provinces, whoie otherwise it wouW not have been rooted to-day. Prior to Messrs Cuttun and Boyd's return, the Committee were not slow in their endeavour.s to promote the interests of the Company. They secured freehold premises for the Bank to commence business when it was ready to open. Owing to a difficulty arising about the leases in connection with the section they had purchased, they leased i the old Union Bank premises. He had much plea- I

sure in telling the shareholders that they had realised a considerable profit out of the first transaction. They purchased the section for £6300, and disposed of it for £7000. The Company would open the Bank to morrow (Thursday) in the old Union Bank premises to test their qualifications for commencing banking business. Perhaps jealousy, in many respects, had something to do with the difficulties which arose in floating the shares. Had the promoters not been ho deeply engaged in business themselves, and have been able to send some of their number northward, the whole of the shares would have been taken up.— {Hear, hear.) However, as it was, he thought they would be satisfied with the result. It was determined on the 29th June to close the list, but Messrs Boyd and Cutten, who were then visiting the Northern Provinces, advised that the time should be extended, and the result warranted their advice. He dare say they were all anxious to hear the result. They had acqnired 3000 shareholders, who were represented as follows: — Otago, 100,731 ; Napier, 8200 ; Weßtland, 5054 ; Marlborough, 2077; Taranaki, 1078; Nelson, 5618; Auckland, 8123 : Wellington, 17,531 ; Christchurch, 16,367 ; total, 170,040. Besides, there are over 2000 shares agreed to be taken by some of the promoters, who have failed as yet to come forward. He had no doubt by giving them a little time, they would come forward and redeem their promises. — (A Voice: Name them ! Cries of •' A'o, not a bit of it." It would be satisfactory to the meeting to know that the Provisional Directors determined to make the best use of the Bank's money towards giving a return. They invested it at deposit interest in a Bank in Dunedin, and therefore it had been returning the shareholders some interest, and was available when the Bank required it. — (Cheers.) They might wish to know something of the appointment of Provisional Directors. It was easily explained from the fact that at the time the Deed of Association had to go forward to Wellington, in order to get it passed this session, it was absolutely necessary that seven names should appear in the list. It was determined to appoint the Committee which had been acting for that purpose, and that would account for their names appearing as Provisional Directors. — (Hear, hear ) Not the least important part of the action of the Provisional Committee hnd been the appointments made in the direction of the future management of the 13ank. The three names ot Messrs Beal, Warren, and Morris, were well known to those present.— (Cheers.) The great impetus in the going-off of shares proved that the Committee had not been disappointed in the selection of officers made. If the appointments had been made a month earlier, they would not have had a single share left. — (Applause.) He was sure they would all be satisfied with the appointments. The shareholders should not disperse from this meeting without giving an expression of opinion on the conduct of His Honour the Superintendent and Mr Haggitt in Wellington. He could personally speak of their efforts to have the Colonial Bank Bill passed, having been in Wellington at the time. Had it not been for the two gentlemen mentioned, they would not have had the Bill passed last session. — (Applause.) Their conduct showed that they had the interest of the Bank, aud consequently that of the Province, at heart. He then referred to the satisfactory arrangements which Mr Beal had re» cently made in Melbourne, whereby the Bank coxild extend its business in the colonies ,js well as in London. Mr Beal reported that there was a very favourable feeling towaids the Bank in Melbourne, and he (Mr Larnauh) had recohed letters fi urn Sydney in the same strain. He believed there would be no difficulty in disposing of the 30,0u0 shares reserved if they were offered in the Australian co onies. As he was getting very near the end, he would remind the shareholders that everything was in readiness for the commencement of business at the Bank. The management of a bank required considerable skill, and one false step might retard its progress for some years. It was their duty to appoint gentlemen ns directors who had the necessary business qualifications. There were 15 candidates, of whom seven were to be elected. For his part he would be glad to be left out. Applications had recently been received for shares, but the Provisional Committee thought it their duty not to apportion any of the reserved shares. That would be a matter for the future Directors. Ho was sure the shareholders would all be of one mind that the step taken in the promotion of this Bank was not in a spirit of antagonism to the other Banks.— (Hear, hear.) It was owing to the rapidly increasing prosperity of Dunedin, which was rising in the eyes of the world. — (Applause.) It had become necessary to establish a Bank of their own, to grow with the Province, to work in harmony and progress concurrently with the other Banks, and so be of benefit one to the other. While being of use to the shareholders, the new Bank would be appreciated by the public generally. He was willing to answer any questions if the shareholders wished further information. In answer to a query with regard to voting 1 , Mr Larnacii said that five sharts entitled them to one vote, and so on up to forty-two votes for 1000 shares. The election of Directors was then proceeded with, by ballot, which resulted in the appointment of tho following gentlemen: — The Hon. M. Holmes, Messrs A. W. Morris, W. A. Tolmie, W. J. M. Larnaeh, John Reid (Merton), Donald Eeid, and John Reid (Elderslie). Messrs W. D. Meares and Emund Smith were appointed Auditors. A hearty vote of thanks to the Chairman terminated the proceedings.