THE BANK OF NEW ZEALAND

Gisborne Standard and Cook County Gazette, Volume III, Issue 369, 26 October 1889, Page 2

THE BANK OF NEW ZEALAND

A WASHING OF DIRTY LINEN.

jFBOM OVB OWN CORRESPONDENT.!

Auckland, last night. At the annual meeting of shareholders it the Bank of New Zealand yesterday afternoor a dividend at the rate of 7 per cent per annun was declared. The President, Captan Colbeck, in moving the adoption of th< report and balance sheet, made a length) address, in the course of which he stated tha the directors had come to the conclusion t< recommend the shareholders to authorise th< transfer of the control of the bank to a Boarc in London, who would be more advan tageously situated for securing confident with the bank’s constituents in Great Britair than a colonial board could be. The questior would be submitted during the current hat year to shareholders for their oonsideratior and decision. Major George seconded the motion for th< adoption of the report and balance sheet. Mr G. Buckley, late President of th< Bank, took exception to the balance sheel as not being a fair and correct statement ol the liabilites and assets of the Bank. He said there were losses and liabilities of long standing not provided for, amounting tc £354,000. He urged that if the real state oi the Bank’s affairs had been more fully disdisclosed to the shareholders’ committee, they would have had to report that in conse quence of half of the Bank’s capital being then lost the Bank would have to be wound up. Mr Buckley went on to say that in anticipation of the appointment of ths Committee, Managers at various branches and agencies were specially instructed to prepare certain accounts of the Bank's assets as on the 31st March, and these accounts had in each case been certified to by the Manager and other officers. He contended that these certificates were worthless, and reviewed at some length the Bank accounts of Owen and Graham, Henderson and McFarlane, A. Buckland, J. C. Firth, J. Buchanan, T. Russell, and others, to show how the Bank had lost money. He concluded by moving— ’* That the consideration of the report and balance sheet be adjourned to give the Board of Directors an opporlu nity of making further provisions for bad and doubtful debts, the present provision being inadequate for the losses sustained. ” Mr Reader Wood seconded the motion. Major George believed the report of the Shareholders’ Committee was an honest expression of opinion, and had the Bank been let alone that the opinion would be borne out, but the Bink had [been discredited to such an extent that its very existence had been imperilled, and that by Messrs Buckley and McLean, who, whilst remaining directos, commenced selling out shares as fast as possible until they ceased to hold the qecessary qualification for office, or in fact any shares at all worth consideration, one having five and the others ten shares. Major George went on to say that Mr Buckley had been actuated by avarice and spite, and had expressed his intention to break the Bank, and had grasped over two fifths of the honorarium provided for the directors, whilst he took possession of a furnished house belonging to the Bank. He had also moved for the transfer of certain shares to the Sydney register. Mr Upton contrasted the statements of Mr Buckley, as President, with what he had just said, and strongly commented upon his conduct,

Mr Boardman followed in the same i train.

Mr John Murray, the late Manager, regretted Mr Buckley's statement extremely, because the position had not been materially altered since he occupied the chair as President, The statements seemed less called for even now than then. He defended the staff with regard to Mr Buckley’s charges as to certificates, and in conclusion contended that too much had been made of deficiencies. After further discussion of an animated character Mr Buckley’s amendment was put and lost, and the report and balance sheet adopted. Messrs G. Murray and T. Peacock were elected directors, and Messrs Boardman and Scott auditors.