THE BANK AGREEMENT.

Waikato Times, Volume XLV, Issue 3638, 26 October 1895, Page 7

THE BANK AGREEMENT.

(by telegraph -press association). Wellington, Thursday. The following report by Mr W. Watson, President of the Bank of New Zealand, was laid on the table of the House to-night by the Premier. As requested, I have now the honour to report a., under on the agreement between the Colonial Bank and the Bank of New Zealand, for the purchase by the latter of the Colonial Bank's assets:—l. The amount of assets referred to in the" A : ' list, and to fce taken over, is £926,197; in the "3" list, £601,695; in tho "C" list, £98,332. 2. The total amount of assets to be purchased as good by the Bank of Now Zealand is £2,043,190 and the total amount of liabilities to be taken over £2,509,284. The difference between these amounts (£133,906) is to be paid iu cash to the Colonial Bank of New Zealand. In the agreement the Bank of New Zealand is to hold the sum of £327,305, being part of the assets shown in the books of the Colonial Bank, pending the taking over, realisation, or adjustment of certain accounts set forth, in the "B" and "C" lists. The assets mentioned in list " I)'' amount to £107,274. They are not to be purchased by the Bank of New Zealand, but aro eliminated in accordance with the Act. (5) The Colonial Bank directors and staff afford every facility to the purchasing Bank for a thorough investigation of their business. The examination by the directors, auditors, and officers ot the Bank of New Zealand was of a most searching and exhaustive character, and I iv.ay here state that the directors of the Colonial Bank anticipate that, in addition to the £133,906 agreed to be paid in cash, they will receive out of the £327,305 a further sum for distribution amongst its shareholders, 6. I am of opinion that the Bank of New Zealand will receive sound value in the assets (aggregating £2,045,190) it has undertaken to purchase, and that with prudent management on the part'df the purchasing Bank an increased earning power from this source, and stated in the report of the Banking Committee, should be fully realised; also that the purchase on the basis of agreements will be beneficial to the interests of the colony and, to. the shareholders of the Bank of New Zealand.