BANK OF NEW ZEALAND.

Otago Witness, Issue 3100, 13 August 1913, Page 36

BANK OF NEW ZEALAND.

ACTION BY SHAREHOLDERS’ COMMITTEE. DEPUTATION TO AIR ALLEN. WELLINGTON, August 11. A deputation from the Shareholders’ Committee of the Bank of New Zealand was introduced to the Minister of Finance (the Hon. J. Allen) to-day by the Hon. A. Li. Herdman, and presented to him a memorandum dealing with the banking legislation which is proposed. The memorandum set out that the deputation was present as a committee of ordinary shareholders of the Bank of Now Zealand, elected at a special general meeting held on July 4 to represent and safeguard the interests of shareholders. Iho memorandum proceeded;—“Wo desire to make it clear beyond the point of contradiction that we are not voicing the opinions of any section of shareholders, but, that we eve expressing the views of shareholder's both in New Zealand and in London, with whom we are in close touch and in complete accord. We. view with consternation the proposals submitted to you by the chairman of the bank in his memorandum to you of May 15, and which we regard as an unjustifiable and unwarrantable attempt to increase the State’s proprietary interests in the bank at the expense of the ordinary shareholders. The deputation claims that, after assuring to the State the maximum dividend payable upon State preference shares, the interests and functions of the State should be limited to the extent of inquiring: firstly, that a sufficency of capital should be provided by the- bank for its large and increasing business, and, secondly, such effective check upon any possibility of mismanagement which might occasion any subsequent necessity for outside intervention to preserve its stability. We claim that we, as shareholders of the bank, are justified in asserting that we can provide that sirffioiency of capital, and that wo are quite prepared to concede to the Government that effective chock which the exigencies of the -pfreumetnroes may require. We claim as of right (1) that we are entitled to, and that the position of the bank warrants, the repayment of the £1,000.000 guaranteed stock maturing in July, .914 ; (2) that we, as ordinary shareholders, and wc only, are responsible for the provision of such increased capital as may become necessary for carrying on the business of the bank consequent upon the withdrawal of the ,£1,000,000 worth of guaranteed stock from the bank’s resources; (3) that the altered condition of the affairs of the bunk since the passing of the Act of 1905 is sufficient justification for our approaching you and asking to be fully reinstated in the enjoyment of our property directly vyc have effected the redemption of our obi!gat ons to the State, and subject only to such reasonable restrictions as Parliament may require for the proper and efficient management of the bank’s affairs.” In elaborating these points the deputation said; —‘‘Wc maintain that the Government is neither legally nor equitably entitled to any increase in the share capital of the bank, and wc arc unanimously of opinion that, if any increase is desired by the Government, it should be sought for by way of agreement with the ordinary shareholders and not by way fit statutory enactment and in return for adequate errapensation. A¥o venture to suggest, however, as a matter well worthy of your consideration as Almister of Finance, whether it is desirable for the Government to entertain the suggestion to lock up a large amount of capital in the bank in view of the frequent and openly made .statements that all the available resources of the Government are required for urgent public works.”

Dealing with what was referred to as the present undesirable and unusual method for providing a board of directors for carrying on the most important financial institution in the dominion, the deputation continued; —“ Out of a board of six there are four persons who need not have any pecuniary interest in the welfare of the bank, their chief interest being their ability to so conduct themselves as may ensure their reappointment from time to time, and two persons to represent the ordinary shareholders in influencing the policy of the board, and whose powers in this connection are entirely valueless in consequence of the disproportion in representation.” After referring to the position of the Government auditor, the deputation concluded by saying: “Having submitted to you the views of ordinary shareholders to the best of our ability it now only remains for us to say that in advancing what wo believe to be our legal and equitable rights as proprietors of the Bank of New Zealand wo realise that we are entirely in the hands of yourself and the Cabinet, and that wc can confidently anticipate receiving at your hands that ‘ square deal ’ which your Government has upon several occasions promised various sections of the" community. We are not claiming, and we do not desire to claim, anything at the hands of the Government to which we are not held to be entitled by the highest court in (he dominion, but we respectfully submit that in the interests of shareholders both in New Zealand and abroad, and in the interests of the dominion it is desirable that this matter should bo faced with a full recognition of the various interests affected. In order to determine the legality of our claims we have submitted all questions upon which there is any possibility of a div : sion of opinion to the Supreme Court, and we desire respectfully to suggest to you that any legislation contemplated may be delayed until the opinion of the court is obtained. Cn the other hand, should you consider it necessary and desirable to proceed without according us the opportunity of the court’s interpretation of the rights <>f the respective parties, might wo ask for an undertaking from you that yon will submit any legislation you may decide to introduce to a Select Committee of the House before whom we might appear to urge our claims if we consider such a course necessary?”

In reply, the Minister said that up (o the present the matter had not come before the Cabinet. On the assurance of the deputation that the application to the Supreme Court that was being made under a declaratory Judgment to be heard next Thursday would not be likely to result in any prolonged delay he would be prepared to wait until the judgment of the court was given. He undertook that as soon as the Cabinet had approved of the Bill as ultimately drafted ho would have it circulated among tire members of the Shareholders’ ‘Committee, and he would be ready to receive any suggestions they might make.

EARLY SETTLERS’ ASSOCIATION. The monthly committee meeting of the Otago Early Settlers’ Association was held in the board room on Monday. 11th inst; present—Messrs Donald Reid (president). G. L. Denniston (in the chair). W. H. Ferens, E. C. Hazleti W. Nicolson A. F. Al'Donnoil, Mrs C. H. Hayward, Mrs M. Barnes. Airs Sinclair Pcdon, Air G. C. Proudfoot (hon. treasurer). Air John Wood (secretary). The following resolution was carried, the members standing, as mark of respect ro the memory of their late vice-president, Air -Charles Duke; ’‘The committee of the Otago Early Settlers’ Association desires to express its sincere regret at the death of Air Charles Duke, vice-president, and place on record its high appreciation of the services rendered by him for many years past; recognising that his genial manner at 3.Q gatherings of early settlers, which ho attended, assisted in making the various functions successful and pleasant, and that his presence and cheery conversation will be very muoh rmssed by all.”

The Secretary reported that steps were being taken to celebrate the jubilee of the arrival of the ship Alataura —-September 15, 1863, —and w-ould be pleased to hear from any surviving passengers or descendants. The Secretary also reported that information had been applied for by the authorities of the British Museum, through the High Commissioner, London, as to who was the designer of the silver medal awarded at the exhibition held in Dunedin in 1864. The of the Otago Witness had kindly consented to give a reproduction of one of the medals, in the hope that some of the readers might be able to give information on the subject. A vote of thanks was passed to the following lor gifts made to the museum and portrait gallery Airs Crosswell, for map of Dunedin, with Dunedin directory on margin. dated 1852. published bv Ferguson and Mitchell,; Air E. R. Smith, for a number of copies of “ Instructions to passengers,” published in Edinburgh in 1849, cabinetsized steel engraving of Captain .las. Cook, F.R.S., from original in the possession of Sir Joseph Banks, also two woodcuts of Ala ori heads, from drawings by K.. L. Sutherland, R.N. ; Airs Stevens (widow of the late Sergeant-major Stevens), for framed photo of Boys’ High School with High School Cadets paraded in front; to Mr Murray Thomson, for photo of Air -and A-irs I. W. Hunter, passengers by the Magnet (1840), and Pearl (1842) respectively.

The following names of early settlers who have passed away were -recorded:—John Robert Mills, 74, arrived 1857: Jus. M’iLeod Xicoison. 80, Robt. Henderson, 1861; Mrs Janet Peterson, 77, Mooltan, 1849; Mrs Margaret I. 11. Crawford, arrived in the early 60’s; Mrs J. W. Min ter (nee Cargill), 67, arrived 1856; Michael Fahey. 77, to the I) li net an rush 1662; Mrs Elizabeth Esson, 87, Sevilla, 1859; Mrs Joan P-eppiat, 92, Grasmere, 1852; David Roche, arrived 1858; Archibald Clank, 85, Three Pells, 1858; Walter Henderson. 91. to Southland in tire early 60's; Mrs John MacDonald, 83, early 60’s; John Hen-demon, 62, Robert Henderson, 1860; Walter Hislop, 66, -Strathmore. 1856; William Hannah, 80, arrived 1862; James Hazlett, 84„ Aldinga. 1851; Alexander Robertson. 73, early 60's; M-rs Robt. Swan, 78. from Lyttelton 1864; J. H. -Pope, 76, arrived 1863; Charles Duke, 84, Palmyra, 1858; Rev, John Christie. 84. Cheviot, 1862; James Irvine, 85, Matuura, 1853.; Willian Asher. 76, Bombay. 1862: Mrs W. F. Turnbull, Strathalhm, 1853; John M‘Deod, 79. Melbourne. 1861. Mr Donald Reid, pm., was -elected .to fill the vacancy in the vice-presidency, and Mr Alex. B. Mercer to fill .the vacancy thus made in the committee. In the matter of the re-union of members, the date was fixed for Thursday, September 18.