BANK OF NEW ZEALAND.

Wairarapa Age, Volume XXV, Issue 10713, 12 August 1913, Page 5

BANK OF NEW ZEALAND.

THE SHAREHOLDERS' CASE. DEPUTATION TO MINISTER. (By Telegraph—Press Association.) WELLINGTON, Last Night. 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, and presented to him a memorandum dealing with the banking' legislation which is proposed. The memorandum stated: —. "We 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.' are , expressing the views of shareholders both in New. Zealand and in London,.with whom we are fn close touch, and in com- ,, t plete accords We view, with can- '> sternation the proposals submitted to you by the Chairman of the 1, Bank in his memorandum .to you of May 15th, and which wo regard . as an unjustifiable and unwarrantable attempt to increase the Sta- . te ? e proprietary interests in the . Bank at the expense of the, ordinary shareholders. 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, 1914; (2) That we, as ordinary shareholders, and we • only are responsible for the prov. vision of such increased capital as may become necessary for the car-' "'"Tying on of 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 conditions of the affairs .of the Bank since the passing of the Act of 1903 is sufficient justification for our approaching you and asking to be fully reinstated in the ' enjoyment of. our property clirectly we have effected the redemption of our obligations 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."

After elaborating these; points at great length, the deputation concluded: "In order to determine the legality of our claims, we have submitted all questions upon which there i<s any possibility of division to the Supreme Court, and we desire to suggest to you that any legislation- contemplated mav be delayed until the opinion of the Court is obtained."

■ In reply, the Minister said that up to the present the matter had not come before Cabinet, and on the aV surrance of the deputation that the application to the Supreme Court that is 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 Cabinet had approved. of the Bill as ultimately drafted, he would have. it circulated among the members of the Shareholders' Committee, and' would be ready to, receive any suggestion "they might make.