The Bank of New Zealand.

Gisborne Standard and Cook County Gazette, Volume III, Issue 455, 17 May 1890, Page 2

The Bank of New Zealand.

M 3 HEAN’S REPORT. BIG LOSSES. BUT A FAVORABLE VERDICT. “ A MOST VALUABLE CONNECTION.’ [BTANDXBD SPECIAL COBRXSPOKDXXT.] Auckland, hat night. The Star to-night ’ says:—We learn by cable from London this afternoon that Mr Hean’s report has been received by tha London Board, and is of a favorable character. From local enquiries we have ascertained that the report was cabled on Monday last. It is of an exhaustive character, dealing with every phase of the Bank’s affairs, and giving figures based upon independent valuations made under Mr Hean’s direction, of the assets of tha globo account, which has been the subject of so much controversy. Mr Hean, we believe, speaks in unqualified terms of the valuable character of the Bank’s current business, and the undoubted confidence which is reposed in it by the public throughout the colony. The message which was received from the London Board by Mr Hean states that they have published the report in London. and authorises him to hand over a copy to the local directors, which he had not previously done. This instruction was acted upon to day, and a copy of the cablegram which he sent to London was submitted at a meeting of the Auckland directors this afternoon.

The following is the text of Mr Hean's message to the London Board of the Bank of New Zealand, despatched on 12th May : “ I make the nett deficiency £165,000, namely additional loss on globo assets on December last, £340,000; loss in current business, namely on old accounts as at 24th February, £54 000; Sydney defalcations £28,000; against which there is a surplus—Bank premises, £150,000; at credit in sundry suspense accounts, £16.000; and total undivided profit, including March half yearly balance, £lOO,OOO. Fresh valuations have been obtained of all station properties, by perfectly independent valuers whose opinion will carry -weight in the colony. I have not obtained outside valuations of New Zealand town and suburban properties, but I have personally examined many of them, and in all cases revised, and, where necessary, modified 88 valuations upon evidence of existing values. The Australian properties have all been re-valued by outside reliable valuers. These amounts have been arrived at after careful investigation, and represent, to the best of my belief, the true and actual position of the Bank. As far as it is possible to ascertain, its current business is sound and good, and the connection most valuable and capable of indefinite extension, with sufficient resources and efficient management.”

The Board are issuing a circular to the shareholders, on this subject, and also in reference to the removal of the Head Office to London. They state in the circular that Mr Hean was justified in taking an even more sanguine view of the position than he did. They also eay they have deferred the half-yearly meeting till after the London directorate have had time to take counsel with Mr Hean, who goes home at once.