1897. BANK OF MONTREAL. ANNUAL GENERAL MEETING, Held 7th June, 1897, (From The Gazette, of June 8th, 1897.) The levr tyninth annual meetiog cf the SharehoV .« of the Bank of Montreal was beld in .a Board Room at 1 o'clock yeiter- day. Xbere were present Hon. Georfie A. Drnm- mond, Vice-Pretiient; Meeera. Hugh Mc- Lennan, W. C. McDonald, E. B. Green- shields, Hector Mackeczie, Hon. James O'Brien, Donald Macmaster, W. W. Ogilvie, F. T. Jndab, Angus W. Hooper, J. W. Howard, Richard White, James Wilson, jr., W. J. Buchanan, M. Burke, H. Mason, Alex. Mitchell, H. Drummond, W. Wallace, E. Rawliogs, F. H. CJimms, John Molson and J. McCarthy. On the motion of Mr. John Crawford, the Hon. George A. Drummond, VicePreeident, was unanimously voted to the chair, in the absence of the President, Sir Donald A. Smith. On the motion of Hon. James O'Brien, seconded by Mr. Donald Macmaster, it was agreed: — "That the following gentlemen be appointed to act as scrutineers: — Messrs. W. J. Bachaosn aod Angus W. Hooper; and that Mr. James Aird be the Secretary of this meetiog." The Report, The report of the Directors to the Share- holders at their 79ch annual general meeting was read by Mr. Clouston, the General Manager, as foUowr: — The Directors have pleasure in presenting the 70th annubl report, bhowitg the result ot the Bank's busiof ss of the vear ended 30ib April, 1897: Balance cf Profit and Loss Account SOth April, 1896 % 856,348.19 Profltfl for the year ended JCth April, 1S97. after deducting charges of mansginicnt, and mak- ii g full provision for all bad and doubtful debts 1,230,561.79 ^,086,909.98 Dividend 5 per cent., paid Ut December, 1896 $(iOO,CCO Dividend 5 per cent., payable 1st June, 1897_ 500,aO 1,ZOO,COO.OO Balance ot Profit and Loss Account carried forward % 885,909.98 A branch of the Bank has been opened at New Denver, B.C. The Directors decided to erect a building for the Bank's use at Victoria, B.C., and ii it now approaching completion. All the officta of the Bank, incladicg the Head Office, have been inspected during the past year. Donald A, Smith, Preaidtnt. SOth April, 1897. Oenepal StMement, SOth April, 1807. LIABILITIES. Capital Stock $ 12,CC0.ao.00 Hest % 5,0CO,COO.0O Balance of Profits car- ried forward 886,90998 % 6,8E6,909.98 Unclaimed Dividends. 8,016.01 Half-yearly Dividend, payable 1st June, 1897 600,000.00 7.494,955.99 $19,494,955.99 Notes of the Bank in circulation $ 4,563,386 00 Deposits not bearing interest 11,£87,662.27 Deposits bearing in- terest 28137,088,89 Balances due to other Banks in Canada. . . . 12,393.73 44,600.630.89 f 64,095,486.88 ASSETS, Gold and Silver Coin Current 9 2,495,062.59 Goverrment Demand NotcH 3,121,192.50 Deposit with Do- minion Government required by Act of Parliament for security of general bank note circula- tion 2t5,C0O.0O Due by Agencies of this Kank and other Banks in Foreign Countries $ 7,750,88^14 Due by Agencies of this Bank and other Banks in Great Britain 6,893,774.73 14,644.656.87 Balances due by other Banks in Canada. . . . 18,877.18 Dominion and I'ro- vineiiil Government .Securities 1,410,798.07 United States Railway Bonds 3,325,010.08 Notes and Cheques ot other Banks 1,261,658,72 t26,M5,25&Gl Bank Premises at Montreal and Branches tCCOOO.CO Current Loans and Discounts, (rebate interest reserved) and other securities and .assets 36,725,725.42 Debts tecured by nortgage or other- wise. . 98,700.14 Overdue debts not spei ially sec u r e d (loss provided for).. 125,745.31 ^ 36,950,230.87 9 64,095,486.88 E. S. CLorsTON. General Manager. Bank of Montreal, Montreal, 30ili Aprjl, 1897. The General BIanacrsP> Mr. Clouston, said: Referring to tho balance sheet submitted to jou at this meeting, there are ceveral im- portant changes which it may be as well to give some explanation of. In fact, the tignres without an explanation would con- vey a wrong impression. The first change of any importance is an increase of $3,791. UOO in deposits not bearing interest. This is nearly all of a teropcrary character, caused chiefly by Governmect deposits, and will probably disappear before long. In deposits bearing inttresc there is a large increase of 13,916,000 Aside from the steady increase in our Savings Bank Deposits, there are some special amouDts here which also lack permanency. I cannot say that bankers at present regard with any great degree of pleasure the increase in thla item, particu- larly when they, like ourselves, are obliged to lend it abroad at a nominal rate. Our cash reserves have increased §411,000, a small amount proportionately for the in- crease in liabilities, but as we are so strong in immediately available resources else- where, it is a matter of little moment, rher-iaan increase of ,?2.610,0C0 in tho amount due us by agents in Great Britaio, which is an immediately available aeset, though net a very paying one at present rates. The appearance of the item in the statement, of Dominion and Provincial Government Securities, is doe chiefly to an operation in the bonds of this province and will very likely not remain there long. Our United States Railway Bonds have increas- ed $887,000. This item constantly changes, as we are active dealers in tbem, and frequent) participators with other banks in bond issues, (Jur loans have increased $1,956,000, priocipally from a desire on the part of the business community to pay duties in antici- pation cf a prospective change in the tariff, paitly also from a general expantion in our basinesa. Our debrs secured and unsecored have increased $135,826, not a very large sum considerlcg the trying jear we have just com- pleted. The same remark applies to our profits, which nhow a fallirg off of $10,635. Altogether you will admit we are in an ez- cepticnally strong fiDacciul position, but not one in which we can make much profit with the present low value of money In forelgi> markets. lo fact, each sucoeedlng year seems to increase the difficulty of maintaining our profits, and when, in additloD, we are obliged to provide for the shrinkage in values natarally resulting from the prolonged -depression in business, it ia almost a matter of surprise that we are •bl« to appear before yaa with ao good a •t»temeDt a« the preieni lo b»i baao laidl th»ti, like Joteph'8 klne, baokeri have seven fat yeari and leven lean ooei, and it ought to be abont time for the lean ooei to cea«e, for, eioce the Baring crisis in 1890, the world baa experienced a succes aion of doancial shocks and disasters wUboat parallel in its history, partly the natural re- suId of businets depression through over- tradio({,over manafacturiogand other causes, bat part of it forced on the Goancial world by those who should have bsen the buttresses between ic and harm. Whether we are through with them time only can tell. With the settlement of the European question, which seems probable, at least temporarily, and the adjiiurnment of the legislative bodies here and in the Uoited States, the fausioeis commanity may have a chance of taking brcs^b and oommenoing another strugsle to attain prosperity. la the United States there are signs of the sunshine break- ing through the clouds, and a particularly bright gleam was Secretary Gaga's »t element the other d*y that the present admioistra tion was determined, once the tariff was out of the witrol of one class of minds, had got into a condition of dry rot. In some institutions in this city, the principle of rotation was in- troduced to the greatest possible advantage. But in the Bank of Montreal I can certify that the Directors give a painstaking attention to their duties, and after a while the erperience they gain makes them more valuable to the Bank and more valuable to the remainder of the Board. This would be lost if their connection with the institution were abruptly terminated at a certain period In the management of a bank you must have men who are actively engaged In buiineu. If you want really valuable opinion upon current events in the business world, yon must have men not only of past experience, but of present contact with busiu6<>s. If yon look over the business community n this city you will see that the number of men eligible to the post of man- agement of the Bank of Montreal, and who are at the same time Shareholders, is vastly limited. Nearly every one that possesses the requisite capaci- ty is engaged in some other bank, and it is a delicate matter to invite a Direc- tor of another Bank to abandon that Bank and come to us. The choice is, therefore, extremely limited, and the auggestioa would have to be very carefully considered before it was adopted, at least heartily by myself, for one. I do 7"' ' -ow that Mr. Crawford is absolutely rig' t with regard to any large ma- jority of the English Banks declar- ing their gross profiu and losses in their annual statements. On the contrary. I am inclined to think that some of the largest do not. However, that may be, it would be in the highest degree inconvenient for this institution, which possesses over forty agencies between the Atlantic and the Pacific. If such a system were adopt- ed, a large proportion of the results would have to be taken by guess- work, for It takes the great pact of a month to receive the reports from the various agencies, and in the final adjustment of ac- counts for the year and the declaration of a dividend, the last month has to be taken by estimate. This has to be done for two reasons: Ist, our dividend is declared some time in advance: 2nd, the final examination of the accounts from the various agencies is rot to hand. Therefore, if yon had quarterly dividends, they would be true as regarded two months out of the three; they would be guessed in the third. I think, apirt from any other cause, that lb would be a dangerous, if not an impolitio thing to consider quarterly dividends. I can only say that the Directors have strained every efi'ort to conduct the Bank with due regard to economy, and I am satisfied that it is so conducted. The General Manager in reply to Mr. Crawford's remark, that all the Eng- lish Banks gave a statement of their working expenses, said that he did not think the Bank of England did so, and that he had before him a statement of the National Provincial Bank of England, one of the largest Banks in England, which certainly does not give such information. Mr. Crawford said that all the banks did of which he had any account. The motion for the adoption of the report was then agreed to unanimously. Votes ofTtaiuika. Mr. Hector Mackenzie moved: — That the thanks of the meeting be pre Ki'nted to the President. Vice-Hresident and DirectorH for their attention to the interests of the Bunk. This was seconded by Mr. F. T. Jndab, and adopted. Mr. W. W. Ogilvie moved:— That thethnnkfi of the meeting be given to the Oeneral Manager, the Iniipector. the Man- agers and other officers of the Bank for theik' services during the past ywvr. In Bupplenienting the motion, Mr. Ogilvis remarked that he bad occasion to meet the officers of the Bank frequently, and be had always admired their loyalty to the institu- tion. He thought that the Bank had reaaoa to be proud of its offioen. Mr. E. B. GreeDshields leconded the mo- tion, and added his tMtimony to what Mr. Ogilvie had said aa to the loyalty and ability of the officers of the Bank. (The motion was onanimcaaly ooncurred in. The General Manager— 1 have to thank you, on behalf of the offioera, for the very kind way in which you have ppoken of their servioea to the Bank. I have to regret the loee this year of two good men, Mr. Brough, cf Toronto, and Mr. Plummer, of Boratford, both very valuable men, whoae lose I feel vary leverely. Mr. Alex. Mitchell moved:— That tho ballot now open for the election of directors be kept opeu uotil three o'clock, unless fifteen minuteH elapse without a vote being ca>-t, when it>hall be closed, and nntll ihat time, and for that purpose only, this meet- iiiR be continued. This wai seconded by Mr. F. H. Simmt and Qnaniraoaaly carried. e.tA, ^i s^.;,^. v-i. On the motion of Mr. John Uorriion, seconded by Mr. John Crawford, a hearty vote of thanks was accorded to the Chalr- The DlF«etop«. The ballot resulted in the election of the following gentlemen:— U. B. Angus, Esq. Hon. G. a. Urummond. A K. Rauit. Ksu E B. GREBN8HIELDS, KSQ. ^. C McDonald. Usq Hugh McLennan, Esq. W. W. tlOILVIE, i!8«. A. T. Patekson. ) Californian Bank. Portland, Oregon, The Bank of British Columbia.