BANK OF NEW ZEALAND.

Taranaki Herald, Volume XXXVIII, Issue 8614, 28 October 1889, Page 2

BANK OF NEW ZEALAND.

— ♦ HALF-YEARLY MEETING. A somewhat long and animated discussion took place at the half-yearly meeting oi the shareholders of the Bank of New Zealand in Auckland on Thursday lust, The report occupies eight columns of the Auckland Herald, and the speeches are " chock full " of expressions which should afford the Law Courts employment foi some time in trying actions for libel, After the report of the Directors had boot read, The President (Captain "VV. H. Colbeck), in moving the adoption of the report, explained the different items. Ho said the decrease in the total assets is partly in coir and cash balances, which amount t< £2,056,000, or a decrease of £230,000, and in bills receivable and securities in London which are less by £1,900,000, largely due to the absence of wool bills and less general exchange business in the September halfyear ; partly to a reduced holding oi securities in London, necessitated by the reduction of half a million in Governnienl deposits, to which I have already alluded and in a minor degree to the winding ur. of certain weak accounts. He said he might summarise the position by saying that as regards ordinary deposits there was nc material alteration, whilst ordinary advance:show a considerable increase. He then proceeded to explain the various accounts and what had been done by the Committee. Ho concluded by saying: — "Your directors cannot conduct your business satisfactorily unless they possess your entire confidence, and from that point of view, we feel that Auckland as the place for the Head Office of the Bank, was discredited by the Committee's report, and that our position has been weakened, and our power to serve you impaired, by circumstances to which I have already alluded. For these reasons, and not, I repeat, from any want oi confidence in the future of the Bank, or in our own capacity to manage its affairs, the Directors think it due to the shareholders that they Blioulel recommend them to authorise transfer of the control of the Bank to a Board in London, against whom ,W. damaging josJßUiiticß? o£ want, oi

capacity, want of honesty, or want of proper candour, can be maintained, and who are more advantageously situated for securing the confidence of the Bank's constituents in Great Britain than a Colonial Board can be. It is our intention during the current half-year to submit this question to the consideration and decision of shareholders, and to take such other measures as will facilitate the step, should the shareholders decide upon taking it." He then moved the adoption of the report and balance-sheet, which was seconded by Major George. Mr Buckley then made a very long speech. He said that had the real state of the Bank's affairs been more fully disclosed to the shareholders' committee than it was some 15 months ago they would have had no alternative but to report, that in consequence of half of the Bank's capital being then lost, it would have to be wound up, under the 118 th clause of the deed of settlement. He then proceeded to point out where the losses had occurred, and in one case wliich he mentioned he said he never came across a more disgraceful business. He charged others with owing the Bank £20,000, with little prospect of recovering the money, although the party (mentioning the name) was living at home at the rate of some £6000 or £7000 a year. The I advance, he said, was made in London to enable the party to speculate on the Stock Exchange and get a living there. He said the losses he mentioned amounted to £354,000, so that he thought he made an under-estimate when he said that at the very least there was to be accounted for at the present moment some £300,000 on those accounts, which in the meantime was so much capital lost. The amendment which he would propose was this :—": — " That the consideration of the report and balance-sheet be adjourned, to give the Board of Directors an opportunity of making further provision for bad and doubtful debts ; the provision, as per accounts now presented to the shareholders, being inadequate to meet the losses which have been sustained." Mr Reader Wood seconded the amendment. Major George said he would not oppose the adjournment proposed by Mr Buckley. It was very easy for anybody to get up and make statements like Mr Buckley had done with regard to figures. He was sure the directors had no intention to hide anythingsfrom the shareholders. At the same time, ne would like to make a few remarks as to Mr Buckley's action and attitude in reference to the Bank. A great many of those present purchased new shares in the Bank after reading the report of the committee, of which Mr Buckley was a member, and many persons bought the shares on the strength of that report. That report said that the shares would be a good investment of their money. Tho shareholders believed that the report was an honest expression of the opinion of a majority of the committee, and he also thought that had the Bank been left alone that opinion would have been borne out ; but the Bank had been discredited to such an extent that its very existence had been perilled, and by whom ? Why by Messrs Buckley and McLean, two of the men who made that report. If those gentlemen had subsequently found that the affairs of the Bank were not working as they anticipated and had called the shareholders together and explained matters to them, they would have had no cause for complaint. Their action, however, was quite different, for while still remaining directors they commenced selling out their shares as fast as possible, until they ceased to hold the necessary qualification for the office, or, in fact, any shares at all worth consideration — viz., 6 and 10 respectively. After referring to Messrs Buckley and McLean's conduct on the Committee, Major George proceeded to say : Mr Buckley, however, appeared to have been actuated by spite as well as avarice. Ho thought he was safe in saying that there was evidence in that room to prove that Mr Buckley had stated that ho came out to this colony with the intention of breaking the Bank. On many occasions he had heard him say that if he did not get well paid, he would " smash the Bank," or " damned Bank," as he more forcibly put it. These threats commenced in October last, so it was fair to assume that he kept thia object in view. Mr Buckley : It is false. Major George : It is true. On many occasions Mr Buckley had said so, and tho dates he would give, if the meeting desired. " 11th October, at Board meeting, threatened to resign and ruin Bank if he did not get his demands on honorarium ; 30th October, repeated same threat ; 19th April, threatened Board in similar manner, Captain Colbeck objecting to his again intimidating Board, 1 supporting Colbeck ; 29th April, threatened me to leave and ruin the Bank, and that he held McLean's resignation in, his hands, and he would use it and his own for this purpose ; 14th May, at Board, demanded £1000 a year out of honorarium, or he would leave and break the bank ; 11th June, at Board, stated that when he left, he would break the Bank." For the sake of peace, and in the shareholders' interest, that gentleman was permitted to grasp over two-fifths of the honorarium provided by the shareholders for the services of seven directors, and he also, in a most unseemly manner, i took possession of a furnished house, carriages, horse, &c. belonging to the Bank, and which he now occupied. A Shareholder : For which he pays how much ? Major George : No amount. Mr John McLean asked Major George to state in whatparticlarwayhe had attempted to injure the Bank ? Major George : Yes, by selling your shares wh«n you were a member of tliis Board. Mr McLean asked if every man who sold his shares did so to injure the Bank. Mr 11. McDonald Scott: You don't hold any interest in it. Mr McLean: I am a shareholder. Mr It. McDonald Scott : How many shares 'i Mr McLean: I cannot tell how many. Major George: Ten. I think: and you had 800 odd. Mr McLoan: I do not know exactly. Major George: 1 do Mr McLean: I have been one of the largest shareholders since the foundation of the Bank. Mr It McDonald Scott: From 976 shares which he held during the time he and Mr Buckley were directors he has only 10 only. Mr McLean: That is very likoly. I Mr 11. McDonald Scott: And you come here and insult people who hold an interest in it. Mr Upton said every shareholder who was acquainted witli business matters must know that it was absolutely impossible that Mr Buckley should not have known something of what he said ho now knew. Mr Buckley had the advantage of every shareholder present, because he had been within the inner circle, and could represent or misrepresent to his heart's content, and no one present could refute what lie said. Major George had stated that Mi" Buckley had threatened to sinuhh tho Bank. He (Mr Upton) lmd heard it stated in the street that Mr Buckley hud threatened to sinaHli the Bank ; that ho 'came from England to smash the Bank ; and MiMcLean had told them that but for him Mr Buckley would not have been there. Heavens ! Would to God he had never beun there ! Ho (Mr Upton) considered that Mr Buckley's conduct had been diabolical. If all the persons in that room hud been ricli people, or if nil the shareholders hud been rich people, it would not wi tho leabt Imvu mattered; but Mr Buckley had used his knowledge to divest himself oi every responsibility, leaving poor ehwe-

holders — widows, and persons who had invested their all in the Bank — f ace to face possibly with ruin. No one could tell what the effect of Mr Buckley's words would be. The only hope was that it might be discounted by the effects of the Chairman's address and the remarks made by Major George and other speakers. For his own part, he repudiated Mr Buckley's words; he did not believe them. Mr J. B. Eussell said that it was by Mr Buckley's own action, and on the faith of his representations, that he had been induced to buy as many shares in the Bank as the Bank would allot to him. He was one of the first shareholders, on the first day that the Bank opened its register. When the last discussion on the Bank's affairs took place, Mr Buckley occupied the position of chairman, and assumed the role of the virtuous, commercially honest, and moral man — he used Mr Buckley's own words to himself. On the faith of Mr Buckley's statements in the chair, and on the faith of the report, he applied for every share that he could possibly get from the Bank. Mr F. G. Ewington said he had a question to ask. It was this : Mr Buckley having stated that further losses amounting to over £300,000 were made by the Bank on certain estates named, he would ask, have all the assets of those estates been realised ? The Chairman : No. Mr Ewington then went on to say that if that were the case Mr Buckley was speaking without the book, because on realising those estates the assets might be more than was estimated, especially as they consisted partly of real estate. But as showing that Mr Buckley might not be adequately informed, he would remind them that on 27th April, 1888, the circular bearing Mr Buckley's signature said, " We think it well to state, without delay, that carefully compiled and certified returns prepared by the Bank staff, supported where necessary by independent valuations, and which we have examined, satisfy us as to the soundness and stability of the Bank." Mr Joseph Newman, us one of the oldest men in the room, considered such conduct as Mr Buckley had manifested deserves the strongest possible censure. (Cheers). Mr Arthur Bull said the Hon. George Buckley was reported to be wealthy ; the Hon. John McLean was stated to be worth £30,000 or £40,000 a year, made in this our adopted country, the welfare of which was largely bound up with that institution and he said that both these men had been guilty of conduct unutterably mean, cowardly, and avaricious. Mr McLean said the value of what a man said depended upon the truth of it. Mr Bull had just stated that he (Mr McLean) sold out while he was a director. He was only a director a few months. Mr Bull: You were a director when your shares were sold. Mr McLean : I sent in my resignation last April. I loft it in the Bank. He said Mr Bull's statement in regard to him was incorrect . Mr Bull contended that he was quite correct. Mr McLean's resignation was withheld until Mr Buckley got rid of his shares. He could prove it. Mr Buckley flourished Mr McLean's resignation in the face of other members of the Board of Directors to compel them to do what he wanted, and after he had sold out he put in Mr MeLean's resignation, after Mr McLean had become disqualified. The Rev. B. Sommerville said for Ins part, he had the most implicit confidence in them, and none whatever in Mr Buckley. Mr Buckley pointed out that he had asked the shareholders if the would appoint a small committee to look over the accounts, and they liad said " no." As to Mr McLean's resignation, Mr McLean had placed his resignation in his (Mr Buckley's) hands ; but the Board had no one to put in his place at the time, and the resignation was therefore kept back for the convenience of the Bank, to a great extent. And what was done at the metting — Mr Scott : You have only five shares ; you have no right to open your mouth. Mr W. Aitken said that at tho last meeting Mr Buckley, who was then President, stated that the Bank was in a certain position. Mr Buckley did not acknowledge the right of anyone to say that a director had not the right to sell his shares at any time he thought proper. He did not sell his shares until his resignation was accepted. The question, however, was : Were the shareholders prepared to have dust thrown in their eyes ? He maintained that this had been done year after year. He contended that the deficiency existed, and would have to be provided for — if not now, some other year. He appealed to the members of the Board — they knew very well that this was one reason why he had sent in his resignation, because they wanted to cover this up, and he would not be a party to it. Major George: That is absolutely untrue. Mr Bull : There is not one word of truth in it. Mr Wilson : It is absolutely incorrect. Mr Buckley said the very last time he attended a Board meeting, Major George — he took his words down — said, " These deficiencies will not be known, nor any notice taken of them, if you do not raise the question yourself." Major George : That is absolutely untrue, as most of your statements are. Mr Buckley : I am quite prepared to make an affidavit. Major George : After your conduct, I will no more believe you on your oath than I believe you now. ' Mr Buckley then made a long speech, which the President characterised as a good deal of '' bunkum." The President contended that the Bank was as safe as the Bank of England. He flid not say that they had not had losses ; but the globo account would come out perfectly fair if tho directors were allowed to nurse it for a reasonable time. Mr Buckley's amendment was negatived, and the motion for the adoption of the report and balance-sheet was then adopted. Mr Upton moved the following resolution which he had referred to in his previous remarks : — "That under all the circumstances the information given by the Board of Directors is considered sufficiently full." Mr Finn, of Gisborne, seconded the motion, and it was carried unanimously.