The Colonial Bank

Southland Times, Issue 13030, 3 October 1894, Page 2

The Colonial Bank

As Mr J. W. Bain represented a large numbsr of local shareholders at the halfyearly meeting held in Dunedin on Wednesday last, it is but right that they and the public should have the opportunity of sseing precisely the position he took up on the important project the meeting expected to have to discuss. The scheme for amalgamation, as our readers know, was practically abandoned before the meeting took place, but it formed the chief theme of those who spoke for all that, the report and balance sheet receiving but scant notice at their hands in comparison, although of course they supplied the text for the several speeches. In speaking to the motion for the adoption of the documents referred to, Mr Bain delivered his opinions at considerable length. We take the following extracts from the full report of his speech given in the Otago Daily Times :—-

“Mr Bain: Well, Mr Chairman and gentlemen, I came here to-day fully expecting a resolution to be brought before the meeting for the purpose of carrying out ths amalgamation of the Colonial Bank with the Bank of New Zealand, as we had it placed before us some little time back. I was prepared to discuss the question of the terms of the amalgamation, but as we have heard from the chairman’s speech to-day, the matter has in a measure fallen through, so that there is really nothing before [he meeting for us to discuss in that connection. I may state that I am here to represent a considerable number of shareholders in Southland who have asked me to attend tho meeting to elicit as much information as possible before they were committed to the proposed amalgamation.—(Applause.) I was prepared to discuss the question on its merits, and I should have gone into it most fully, but as you have stated, sir, there is no scheme before us, and I am debarred, therefore, from going over the whole ground covered by the agreement which has been published, and which was entered into by Mr George M clean on the one part and Mr John Murray on the other part. At the same time I should like to take the opportunity of stating that I think it is extremely unfortunate that any such scheme should have been listened to at all by the directors of the bank. —(Applause.) Let the Bank of New Zealand be a State bank if it will, but let the Colonial Bank be the People’s bank.— (Applause.) As the People’s bank it has a future of great usefulness before it; a future that will garry out the terms of the prospectus issued some 20 years ago, a copy of which I hold in my hand, and which I was

prepared to read to show the condition upon which many of us took up our ahares. I took up shares at first from a patriotic point of view, and I have never bought or sold or trafficked in shares in any way. I have always felt that the Colonial Bank has a sphere of usefulness, and, taking the reports which have been presented each half year, I have felt fully satisfied that the affairs of the bank were carefully managed. I have felt further that we could better, than re-elect the president and /directors, and continue the good management which had existed so long.—(Applause.) I may say that I have a feeling of very great respect and sympathy for the Bank of New Zealand. I have been a customer of that bank ever since it started business in the colony, and if I could assist it in any way at all I should have great pleasure in doing so. Indeed, I go so far as to say that if it would help the Bank of New Zealand, I would, as a share* holder of the Colonial Bank, not object to the general manager, the inspector, and even our president going over to that bank. —(Laughter.) I should ba very glad indeed, if it would relievo the Bank of. New Zealand, to lend these gentlemen to it, as I have the greatest respect for the capacity, the energy, and the good faith which they have displayed in the management of the affairs of the Colonial Bank of New Zealand. But when we take into consideration that at each half-yearly meeting the president has told us that the bank is in a sound and healthy position, that its business is thoroughly good, and that the directors recommended a dividend of 7 per cent., which has been honestly earned, after ample provision has been made for all doubtful debts, the shareholders naturally ask, Why was this proposal made ?—(Applause.) That is a question which shareholders have asked, and I submit with a good deal of hesitation my own opinion that it was a great mistake ever to have entered into any such negotiations. —(Applause.) However, that is done with, so far, and the directors had no doubt very ample reasons for their action. . . ... lam perfectly certain that if we take a stand to-day and say there must nob be any amalgamation with the Bank of New Zealand there will be no difficulty in commanding a great deal of money. I believe that the bank is thoroughly sound and good, and that it is well managed, and I sincerely hope we will keep it so. . Why, it is only 20 years ago, on the 30th of this month, since the first meeting was held to elect the president and directors of the bank, and little did we think at that time that in 20 years we should be called on to undo the good work which was then done. This is a local institution. The chairman has told us that there are 1350 shareholders. I have gone through the share-list, and make the number 1400 ; and of that number over 630 —nearly one-half—are in Otago alone. It is a very safe position which the bank holds. The shares are well held, and there are 15,000 customers. I say there is every prospect [of the bank continuing to do a good, sound, and safe business, and it would be an act of folly on our parts if we did anything to bring to an end an institution which is capable of doing so much good. I feel inclined to test the feeling of the meeting by proposing a motion to the effect that it is not in the interests of the bank to continue any further negotiations in the direction of amalgamating with the Bank of NewZealand.—(Applause.) I am quite willing to bring my remarks to a conclusion by proposing that, if I thought such a motion as that would be acceptable to the shareholders.—(Hear, Hear.) It is the furthest wish from my mind to do anything to injure the position of the Colonial Bank. I desire to help and strengthen and assist it in every way, and I think it would be a very good thing if the directors were to obtain an expression of opinion from such a meeting as this. lam informed that there has never before been such a meeting of shareholders as there is to-day and the ’ directors can see at once what a widespread interest is taken in this matter . . . • lam very glad that such an interest has been evoked by this action of the directors, and I shall be very pleased, so far as I can arrange it, to attend the meetings in the future, and I think that all those shareholders who are here to-day will hereafter consider it to be a duty to show by their attendance at the meetings their interest in the proceedings of the bank, and that they will be quite prepared to show their confidence in the directors by coming to the meetings and passing the report after a fair discussion, for after all it is a great assistance to the directors to have a full and free discussion. I take it that my friends, Mr McLean and Mr Oliver, and the other directors will' be pleased to see the shareholders take an intelligent interest in the affairs of the hank, and will be prepared to listen to any suggestion that may come from any shareholders. I leave the matter entirely in the hands of the meeting as to whether I shall propose the motion I had thought of proposing—“ That in the opinion of this meeting it is not desirable that any further negotiations should be prosecuted in the direction of amalgamation with the Bank of New Zealand.”