BANK OF NEW ZEALAND.
A meeting of the shareholders of the , New Zealand Bank was held at tbe Mechanics' Institute, on Wednesday last, the 27th Inst., at 3 p.m., for the purpose of taking into consideration the desirability of having Local Directors for the branch of this Bank iv the City of Wellington. There was a large attendance of shareholders, and W. B. Rhodes, Esq., Provisional Director, occupied the Chair. The Chairman explained the objects for wbich the meeting had been convened, viz., to learn the wishes of the shareholders as to whether they desired Local Directors or not. Some time having elapsed before the business of the meeting commenced, the Chairman I intimated that if no resolution was proposed the meeting would faff to tbe ground. JMr. Mat said tbat -it was a very simple affair. Foi the present, he did not see the necessity of having any Local Directors; but of course this would not prevent them having Lrcal Directors on a fulure occasion. He would therefore move the following resolution, — " That in the opinion of this meeting it is not desirable for the present, tbat Local Directors be appointed in connection with tho branch Bank at Wellington." Mr. Wallace seconded the resolution. Mr. Schultze asked the Chairman how many persons were eligible for Directors. The Chairman replied that tbere were five, viz. — Messrs. May, Joseph, Bowler, Pharazyn, and Rhodes. These were the ouly gentlemen wbo wete qualified as baying more tban £00 shares each. He should have \>eea glad if the Qualification had beeu lower, so as to admit persons holding a smaller number of shares to be eligible to become Directors, as the shareholders wduld tben have a larger number to select from, and from amongst gentlemen wbo otherwise were in every way capable of performing the duties. Mr. Woodward asked whether it was certain that the qualification was tbat which had just been stated ? A portion of clause 71 of tbe Deed of Settlement, which related to this subject, says, "such Local Directors are to be elected according to regulations to be made by < the Board of Directors in that behalf;" but says nothing about the qualification of 200 shares being required. He thought, therefore, that power was vested in the Board of Directors at Auckland, to make such regulations or bye-laws for the electiou of Directors as they might deem most expedient, and as the powers of tbe Local Board would be subordinate to the Central Board, it was reasonable to infer that a lower rate of qualification might be deemed sufficient. The Chairman said that the Board of Directors might possibly have a bye-law to guide them in this matter. Being one of those who were qualified to become a Local Director he felt some delicacy in speaking to the question at all." He did not wish to become a Local Director, bat if elected he would act for a short time. He had sent to Auckland to be relieved of the responsibility of being a Provisional Director. Possibly the Auckland Directors were not known to many in Wellington, aud he would therefore take this opportunity of informing the meeting, that he did not think, if the election had been made out of the wbole of New Zealand, a better selection of gentlemen could have been made for that purpose. Mr. May said that with regard to what had fallen from tbe Chairman, the 71st clause of the Deed of Settlement gave the whole power to the Auckland Directory. Mr. Woodward said this only showed the subordinate position of the Local Board and therefore he thought it would support bis view of the case. The Chairman said the majority of tbe shares were taken at Auckland, probably some 20,000. He had taken some trouble in the establishment of this Bank, having gone to the Southern Provinces, in company with two of the Auckland Directory, to advocate its interests, and had met with better success tban bad been anticipated. It was originally intended to have scut a large number of shares to Sydney aud London ; but on bis (the Chairman's) representation, the number was considerably reduced, and some 2,000 shares was all that were sent to Sydney for disposal. These shares weie eagerly taken up, having been disposed of in two days, aod were now at a premium. Auckland was at present the head quarters for the | Directory, as the greatest number of shares were held there ; but if the shares were bought up at 50 per cent in the English market, tben possibly tbe seat of the Directory might be removed to London. Mr. R. Hart said, that according to the Deed of Setlement, Auckland was fixed as the permanent seat of tbe Directory. The Oth Clause says /That tbe business of tbe Company shall be carried on in such place in tbe City of Auckland, in tbe Colony of New Zealand, as the Board of Directors shall from time to time determine on." The Chairman, in answer to Mr. Woodward, said that he considered 200 shares to be quite a low enough qualification for Auckland ; but with regard to Wellington, he thought the holder of 50or 100 shares a sufficient qualification. Mr. Woodward said, that as no one seemed disposed to take the responsibility of moving in the mailer, he must ask permission to address.tbe meeting as he felt tbe question to be too important to be passed in siieuce. In his J vieV the real question before them was, Is it to vl
be a local or a foreign Bank. He nped not say to such au assemblage as tbat which h£ tben addressed, tbat tbe capital of a Bank was a thing wholly distinct from the Banking capital by wbich its business was carried on. Local Directors would secure the use of both tbese classes of capital in and for tbis Province, whilo otherwise the capital created by the shaies, would all be transferred to Auckland. Jf a third Bank were required simply for the advantages it would confer, they would have done better by getting those Acts repealed which ifb\v prevented the wealthy Banks of New South Wales from forming Branches here, but he had understood, and was sure that for many years the feeling had existed, that it was desirable that we should have a local Bank. Something bad been said about the possibility of the shares in the Bank of New Zealand rising to a premium, and being absorbed in England, and that then another and local Bank m ight be formed. But why should that which was now within their reach be put off and made dependent upon an improbable or at least' rem ote contingency ? The shares of tbe Bank had been taken to an extent tbat no one had calculated on, and now they had but to elect Directors to complete an institution which they had long desired to see established. The mover of the resolution had said that tbe proposed arrangement was only temporary, but it must be remembered that as a thing was begun it was usually carried down, and if a Local Directory were nowjefused, there would be little chance of obtaining one at any subsequent period. He was aware of the objections to a Local Directoiy, atid especially while it was confined to gentlemen who were actively engaged in commercial pursuits, but in spito of all the disadvantages, tbe benefits would greatly preponderate, and e*en if tbeir choice were .confined to the five whose name** had been mentioned, he believed tbat there was no one in that room who would hesitate to commit all his concerns to the care of any of. those gentle men. He however believed that the scope for their choice would be made much wider and., therefore hoped that the meeting would negative the proposition. 1 The Chairman ruled— That if no resolution was carried, then the meeting should proceed to the election of Directors, from out of the holders of 200 shares and upwards. He'need hardly, .say, that the suggestions of tbe shareholders would bave great weight at. Auckland, either as to the election of a Manager, or any other matter connected with tlie interests of the Bank. He had been requested to select suitable premises for the Branch at Wellington; but there was such a diversity of opinion as to the locality in which the Bank should be situated, that he bad declined to act. Iv answer to a question put by a shareholder be would state, that Mr. Arthur Knowles, formerly Accountant at the Union Bank of Australia had been appointed Accountant for Wellington. He (tbe Chairman) bad received a letter from Mr. Kennedy, the Bank Inspector, by the overland mail via Napier, requesting bim to' obtain suitable Buildings for the Branch Bank al Wellington, so that tbe Bank might be opened on the Ist Jannary, 1862. He expected Mr. Kennedy would be hereshortly, and should be very glad when he did arrive, to relieve him from his present responsibility. Mr. Schultze said, would it not be better to obtain information from Auckland as to whether any Bye Laws relative to the election of Local Directors had been agreed to by the Board qf Directors, that they might see what, they were, before proceeding any further in tbe matter. He (Mr. S.) was in favor of a Local Directory, but with a more liberal qualification, aud he • considered that if the qualification was made \ lower than 200 shares t which he thought the Auckland Directory had full poweiyto do, they could then proceed to the election, and he did not think there would then be any objection to do so. Mr. Schultze concluded by moving the following resolution, which was seconded by Mr. Brown, (of Ohariu) : — " That this meeting be adjourned, and that the Chairman be requested to write to the Manager and General Directors at Auckland, to ascertain the terms, rules, and regulations, under which 1 Local Directors are 'to be'appointed." Mr. Woodward said, it having been intimuted tbat he should embody his sentiments in a resolution, he had done so, and would now j submit it for tbe consideration of the meeting. " That the Board of Directors be requested to associate with the Manager of the Wellington Branch, such and so many Local Directors, being proprietors, as they shall think expedient, for the conduct and management of the business of the I Company of the said Branch. At tho.same time, !* this meeting desires to express its opinion tbat the rules to be made for the election of Local Directors should not require as a qualification the possesion of more than 50 or at most 100 shares." Mr. Mat did not agree with what had been said by previous speakers. From what bad fallen from Mr. Woodward, it would appear that we should not have a Local Bank at all. Now tbis was an erroneous impression altogether. The Bank would be as much a Local Bank whether we elected Local Directors. or not. The shareholders here would participate in any profits that would be made at Auckland, equally with those made at Wellington ; but 'could it be sflid that they had an equal interest in the otber Banks t As to tbe latter portion of the resolution, relative to the reduction of-the qualification for Directors from the holders of 200 to 50 or 100 shares, he felt confident tbat Uie Directors at Auckland would not for a moment listen to the suggestion. From the present state of political parties in Wellington, he thought it highly desirable that they should have no Local Directors. Mr. J. H. Wallace supported the original resolution, yHe considered Mr. Woodward to be blowing hot and cold in the same breath. Mr. R. J. Duncan said that he was called on to elect officers whose duties he was not aware of. He should like to learn the duties of the officers. He did not think it competent to proceed to the election at all, without giving notice to every person who bad contributed money, tbat such was the iutention. There were many persons absent, whose opinions it was most desirable to have. Mr. Brandon, for instance, who had been here at the earlier part of the meeting, but who had since been culled away on important business, be was aware, intended tb address them on the occasion. There were many other persons absent whose opinions it was most desirable to have. He objected to Mr. Woodward's idea that we had no interest in the Bank.* We bad a direct interest. Does not every shareholder participate in the successful working of tbe Bank, and will not every one be paid for his investment at the same rate of dividend. But he contended it was not fair to state that the. proprietors in Wellington possessed no voice in the election of the General Board of Directors at Auckland, as he for one amongst a jjreat many others had been requested to sign, and had signed, a paper giving . authority to a gentleman to vote lor; him by proxy, and although on this the first "occasion, ! it was possible persons had not given the subject 1 muck attention, yet a,t the first annual meeting 1 it was open for shareholders at the South to
t exercise an important influence in the election i of fresh Directors. To return, however, to the : question for the meeting to, decide, -he shonld ■ cordially support Mr, Schultze's.amendmenc so as to give further titoe to enable every pro- - i prietor ih this Province to have a voice in the , matter, and also to allow further public discussion on tliis highly, important question which* was new to many. He differed with those who wished to lower the qualification, ifariy alteration were proposed on this point he should , oppose it. As touching the question whether it was desirable to bave tbeir Local Directors, he was inforraed great and serious objections bad been raised to them in the working of « English Banks, and it was stated that the experience of New South Wales was not favor- v able to the plan, considerable evils had. been attributed to their influence and practice in, the crisis which involved so many in ruin in Sydney, in 1842. For these and other reasons he hoped the meeeting would agree, to postpone their decision. - x The Chairman-/ ifi reply to a question put by Mr. Duncan, said that the shareholders at nil the Branches had power to vote for the election of the Board of Directors at Auckland, by proxy. These papers were'sent to all parts of v New Zealand previous to the election, and here also; but arrived when, he was at the South. Whether tbe part) he : left 1 in charge, did not understand what -should have been y_ donewith tbepaperc, and did notdistributethenhe could not say ; but when be^asaf the South . he bad forwarded bis ownVprdxy torA'ickland and many others ( of the shareholders had done the same. Whatever blame was to be attached, he felt that he should' take-it upon himseJf./aucT not the Directors at Auckland. He then asked whether the Meeting desired that the motion and amendment should be withdrawn, in order that Mr. Schultze's motion should be put. , Mr. Moore explained the order in which the resolutions and amendment were before thd : meeting, and said a -few words in support of Mr. Schultze's resolution. ' i Mr. Hart pointed put lhat as Mr. Schultze's ' motion, being a motion for adjournment, it necessarily took precedence, and if\ carried, the motion and amendment would r.main for discussion at a future meeting. The Chairman then put Mr. Schultze's motiou, wliich was carried. , A vote of thanks to tbe Chairman was tben proposed by Mr. Schultze, and seconded by Mr. Duncan; the seconder taking the opportunity to pay a well merited compliment to Captain Rhodes for the efforts he had made for the establishment of the Bank.
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Bibliographic details
Wellington Independent, Volume XVI, Issue 1689, 29 November 1861, Page 5
Word Count
2,663BANK OF NEW ZEALAND. Wellington Independent, Volume XVI, Issue 1689, 29 November 1861, Page 5
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