BANK OF NEW ZEALAND

Colonist, Volume XL, Issue 8958, 27 August 1897, Page 2

BANK OF NEW ZEALAND

Annual Meeting. (Per United Press Aesooiition.) Wellington, August 26. At the annual meeting of the Bank of New Zealand held this afternoon there were about thirty shareholders present. The President of the Bank, Mr Watson, in his address, stated that the nett profit for the year ended March 31st last was £56,861. The actual earnings were £125,336, but provision had been made for two old and disastrous accounts. But for this the profits would have met the obligations to the Assets Board and left a surplus of £20,000. As it was the amount had justified the estimates. After paying a dividend on preference share 3 £17,500, they had £39,361 in hand towards statutory payments, and the arrears of the Assets Board will be only £24,600. Moreover the finances had been in working condition for only nine months of the year. Of the £68,000 deducted for bad debts not £4000 belonged to the administration since 1894. The bank had now entered on a promising career, and had fulfilled the expectations of those who took charge three years ago. Trade was flourishing but not inflated, and the outlook was cheerful. The Bank's capital showed an increase of £166,717, and the payments on account of call notes in circulation showed an increase of £24,260, and bills payable of £714,449, consequent on the expansion both of local and exchange business. The deposits showed a decrease of £1,663,823. The actual business deposits, however, have increased, and the deficiency is more than covered by the Government drawing principally for advances to Bettlers. By paying off the fixed deposit in London on temporary deposits, the Estates Company and the Assets Board, the item " other liabilities " is nearly the same as last year, and includes amounts set aside to provide for doubtful debts, the amounts regained to meet the deficiencies in accounts taken over from the Colonial Bank, and other amounts. Coin, bullion, eto, together make £2,471,190, which showed ample strength. The actual business advances, apart from bills, had increased during the year by £150,000, and the value of landed property had been argumented by £19,318. The report and balance sheet were read and adopted without discussion. Sir Kobert Stout referred to a rumor that Mr Birch, as manager of the Bank in the South, had been dismissed, and asked if that

was true. He also asked whether the Bank s managers were allowed to become directors of companies, The President replied that the question ox dismissal or resignation of officials of tho Bank was a matter for the consideration of the Board, and one that should not be discussed at a meeting of shareholders. As to officials accepting positions on the boards of companies, there was nothing in the rules against it. In instances where officials adcepted such positions, the usual custom was to apply to the Board for permission, and the Board considered whether or not it was to the interests of the Bank to give consent. Each case was considered on its merits. Sir Robert Stout replied that he thought it was riot proper i . Messrs M. Kennedy and W. Booth, the retiring Directors, were re-elected without opposition. Sir Robert Stout next referred to a rumor that the Directors of the Bank were trafficking in shares of companies which were clients of the Bank, and asked if it was true. The President replied that he was unaware as to what Sir Robert Stout was referring, and added that he paid little attention to street gossip. Mr T. W. McKenzie moved a vote of thanks to the staff, and said he thought if the shareholders had patience all would come out right, Mr C. Q. Tegetmier, in replying, said that the Bank had an excel 1 ent and efficient staff, all desiring to advance the welfare of the Bank. He confidently looked forward to the time when the institution would overcome the troublesome time. Messrs B»oth and Kennedy returned thanks to the shareholders for their expressed confidence in re-electing them, and declared that the Board had no interests to serve other than those of shareholders. Mr Kennedy, in referring to the remarks re members of the .Board taking shares in other companies, said that he himself was connected with a company which had an account with the Bank. It was a strong account, and he asked would it be to the interests of the Bank to have this removed. He was confident that no personal feeling influenced the Board in its decision as to the transaction of the Bank's business, whether or not connected with other companies. The meeting then ended.