THE BANK OF NEW ZEALAND

Gisborne Times, Volume XXV, Issue 2171, 29 August 1907, Page 1

THE BANK OF NEW ZEALAND

PETITION- BY LATE MANAGER FOR COMPENSATION AND INVESTIGATION. HIS QUARREL WITH THE LATE PREMIER. (Spocial to Times). WELLINGTON, August 27. In regard to the petition from Mr. Alexander Macintosh, late general manager of the Bank of New Zeal-, and, who claimed £1482 for services as auditor while he was also acting as general manager, and also for an inquiry into the circumstances regarding his resignation as manager, the M to Z Petitions Committee ty.day reported that he had no claim for salary as auditor, and that nothing had been submitted showing any necessity for an inquiry. The committee thoreioro had no recommendation to make. . Mr. Aitken said ho had listened to nearly all the ovidonco before the Committee, and ho desired to put on record that ho considered from the evidence adduced that ho had made out a case for consideration. He (Mr. Aitken) had not heard any rebutting ovidence, nor did ho know that any had been taken by the Committee against what was alleged by the petitioner, but in any caso lie (Mr. Aitken) was free to say this: That the Bank had prospered greatly during Mr. Macintosh’s connection with it, and that being the case everyone from one end of the colony to the other would admit that he had rendered exceedingly useful and good ecrvico to the Bank of New Zealand first of all and to the colony in the second place. The Committee, he said, had not given that grave consideration to the petition that he as an individual would certainly have given to it. Ho was sorry that the Committeo had sent in such a report. The country as a whole, in so far as lie knew, was exceedingly satisfied with the services Mr. Macintosh had rendered to the Bank and to the col-

The Hon. Mr. Duncan said lie was exceedingly sorry to hear this speech. Ho held that Mr. Macintosh had been very well paid for anything ho had done. Ho said it was well known to the man in the street that 'Mr. Macintosh, while he was auditor, had endeavored to belittle and to trouble the general manager until he had to leave. Mr. Massey: “That is not correct.” The Hon. Mr. Duncan said his statement was correct. Mr. Massey: “No; it is not.” Mr. Duncan: But I say yes, and my “yes” is as good as your “no.” (Laughter.) “I would always look with suspicion upon a man who would work against his statutory officer.” Mr. Rutherford held that Mr. Macintosh had been exceptionally well treated. He had been paid £I6OO for services he did not render, since his salary went on for nine or ten months after he had left the service of the Bank. There had been cor siderable friction between the late Premier (Mr. Seddon) and Mr. Ward. Sir Joseph Ward: “No, no.” Mr. Rutherford: “I mean between the late Treasurer and Mr. Macintosh.”

Mr. James Allen objected to Mr. Duncan making such remarks as he had made on mere rumor. It was not fair to make such statements about any man on mere rumor. If Mr. Duncan had, as stated, done something with a view to ousting the general manager, then it was a curious thing that the Government should have agreed to his appointment as general manager. Sir Joseph Ward: “Who did?” Mr. Allen: “Well, the Government had influence in doing it, or if not they certainly had some influence in getting rid of him later on. He had practically been forced to resign.” Sir Joseph Ward: “By whom?” Mr. Allen: “By certain of tho directors who were the Government nominees. That is his statement. He did good work, hut he says he came into conflict with the Government of the day. He may have been simply doing Ids duty to the colony in resisting the demands that were made upon him. STATEMENT BY THE PREMIER.

The Premier said that Mr. Allen had attempted to make political capital out of this question by referring to matters which every member of the House knew to ho necessarily of a secret character. So far as he (the Premier) was aware, during the whole time-that Mr. Macintosh had acted as Government auditor he had done his work well, and in no respect whatever could any fault bo found with the manner in which he discharged his duties. Mr. Macintosh jvas entitled to the fullest acknowledgment in this respect. During the whole tinio that he was auditor every member of the Government, including the late Premier, recognised the excellent work that ho had dono. He (the thought at the time that Mr. Macintosh made a great mistake in liis own interests in giving up the position of Government Auditor, butwhen tlio position of general manager was offered to him at a higher remuneration he was entitled to accept it, and lie had tlie assent of the late Colonial Treasurer to his acceptance of it. When Mr. Macintosh became general manager he ceased to be responsible to the Government. He did not audit his own accounts, as the auditing was dono by another officer of the bank until his successor as Government Auditor was appointed. An attempt hail been made to show that Mr. Macintosh was driven by the Government from his position as general manager. This was a very serious imputation to make, and it was made more serious by the fact that the decision of the directors was unaliimous. He (the Premier) knew tlio circumstances that led to Mr. Macintosh’s retirement. Even although there may have been differences between the late Colonial Treasurer and Mr. Macintosh, they had nothing to do with the latter’s retirement. He (tlio Premier) knew the circumstances very well, but the matters were such as could not be referred to on the floor of the House. Air. Macintosh did not retire owing to liis having made any mistakes or having done anything wrong. His work both as auditor and as general manager was carried out with extreme caution and care. He did not incur any bad debts during tlie time that lie. was general manager. The friction that arose bad nothing to do with the Government. but he was unable to refer to the circumstances, ns the bar imposed by tlie declaration of secrecy had not- been removed by the. severance of Mr. Macintosh from the position occupied by him. That the Government had been responsible for forcing liim from tlie position, however, be emphatically denied. Tlie Government, neither forced nor suggested tlio resignation. When Air. Alacintosli’s petition for payment of double salary came before him as Colonial Treasurer liis only course was to forward it to the directors of the bank, and he did so. The direct-

ors, however, did not' entertain the request. The point arose. Why were not legal proceedings taken? The answer to this was that on the legality basis there was no claim to consideration at all. In reality Parliament had nothing to do with Mr. Macintosh except in regard to his position as auditor. Mr. Fisher: “How long did ho occupy the dual position?” Sir J. Ward: “About ten months. His salary as auditor was £1750, and as general manager £2OOO a year. The latter salary was afterwards increased by a house allowance of £250. THE OPPOSITION LEADER. Mr. Massey said the only discordant note that had been struck was in connection with the remarks by the Hon. Mr. Duncan. He (Mr. Massey) held that Mr. Macintosh had never acted as Mr. Duncan had said lie acted. As a matter of fact, it war clily after pressure had"been brought to bear upon Mr. Macintosh by the d, rectors and other persons-that ho agreed to take the general managership. The member for Oamaru mould have known better than to make such statements. Mr. Massey went on to flatly contradict the statement of the Premier that Mr. Allen had tri y\ to make political capital out- of tile I etition. Mr. Allen had done nothi ig of the kind.

Sir Joseph Ward: “I don’t know *f you heard what he said.” Mr. Massey: “I heard every word ho said. I was taking particular notice of it.”

Mr. Massey added that he was very glad to hear the Premier’s statement that Mr. Macintosh had always done excellent work. The Hon. Mr. Duncan: “Nobody said anything else.” 'Mr. Massey: “Tho lion, gentleman went very near to it when lie. raid chat Mr. Macintosh while ho was auditor had endeavored to oust the general manager.” Air. Duncan: “No, no; you’re going too far. I did not say that, either.” (Laughter.) Mr. Massey: “The lion, gentleman went just about as near to that as it was possible to go. That was the impression he conveyed to me and to other members of the House. As to Mr. Macintosh’s resignation, that gentleman had stated ho had resigned in consequence of pressure brought to hear on him in connection with tho management of the bank.”

Sir J. Ward: “Not by tho Government.” Mr. Massey: “By certain directors. He felt that he could not on account of that pressure retain his position. He also felt that in standing up against the directors he was acting in the best interests of the bank.” Under tho circumstances, added Mr. Massey, he felt lie was under a cloud, and he asked for an inquiry so that he might put himself right in the eyes of tho commercial people of Australasia. Ho (Mr. Massey) believed that under the circumstances he was entitled to the inquiry he had asked for.

Sir J. Ward, in reference to the .statement that Mr. Macintosh had been forced out of his position by certain of the directors, mentioned as a fact that tho acceptance of the resignation- was the unanimous decision of the directors. The matter of his going had nothing to do with the Government at all. - Mr. Allen: “What I said was that that was Mr. Macintosh’s evidence.

I did not speak of my own knowledge.” Mr. Duncan, by way of exjflanation, said that what he meant to imply was that a man who did not work with his chief was not a man that lie Would care to place confidence in in that direction. Ho had said it was public property with the man in tho street that it was through Mr. •Macintosh that the former manager resigned. He had not said that Mr. Macintosh had done anything wrong.

Alr. Alassey: “What the lion, member said was that Air. Alacintosli bad schemed against a former manager with a view of ousting him from Ins position,”' Air. Barclay, as a member of the Committee, said Air. Macintosh’s complaints were of a trifling character. He (Air. Barclay) bad come to the conclusion that Mr. Alacintosli had been a good auditor but not a good manager. (Cries of “Oil!” from tlie Opposition.) Mr. Barclay .maintained that it was so. He considered himself entirely above his ’ directors, and ho had found fault with them over and over again, because they did something which he did not approve of. He gave the Committee the idea that he was crotchety and cross, and the sort of man that would be likely to come to loggerheads with his directors. . . Air. Okey said that though in Jus opinion Air. Alacintosli was not entitled to the extra salary, evidence had been given which showed that at times an endeavor had been made by the Colonial Treasurer to get on behalf of the colony more accommodation than the law allowed. Sir Joseph Ward : “That is not correct.” Air. Okey: “That came out in evidence.”

Mr. Laiirenson objected to the payment of salary, but saw no reason why an inquiry .should not bo granted. All'. Fowlds said there could lie no claim for salary. The matter of the inquiry bung on the question of Government interference, but tlio Committee thought uo evidence had been adduced to warrant such an inquiry, After a few remarks by Alessrs. Fisher and Budd.o, the motion that the report lie on the table was agreed to.