THIS BANK OF NEW ZEALAND AND THE ESTATES COMPANY.

Auckland Star, Volume XXVI, Issue 195, 16 August 1895, Page 4

THIS BANK OF NEW ZEALAND AND THE ESTATES COMPANY.

PROPOSED SEPARATION.

PARLIAMENTARY COMMITTEES

SET UP.

(Bt TELEGRArH.— PARLIAMENTARY

REPORTER.)

Wellington, this day. In moving for the setting up of a Select Committee to investigate the affairs of. the Bank of New Zealand Estates Company, the Hon. Mr Montgomery said that before any proposals could be made for separation of the Company from the Bank, the fullest examination into the affaire of these institutions should be made and evidence taken.

The Hon. Shrimski said it was unfair to leave all the members of the Council, with the exception of the six comprising the Committee, in ignorance of the aifairs under investigation. He thought that tha Council as a whole should discuss the matter in Committee.

The lion. Pharazyn suggested that the name of the Hon. Ormond should be added to the Committee, and said that the whole Council was told last year that the Government had the fullest information regarding the Estates Company and the Bank. It now appeared that the Government knew scarcely anything of the relation between the institutions in question. He thought the Government deserve credit for making this matter one on which both branches of the Legislature should act. Nevertheless, the proper course would have been for the Government to have set up a Royal commission to investigate the question during the recess. He failed to recognise any moral obligation on the part ot the colony to support the Bank.

The Hon. Mr Kerr thought the colony had incurred a moral, as well as a business, obligation by its guarantee last season.

Tho Hon. Stevens said that, in tho banking legislation of last session, though tho Government had evidently been taken by surprise, in a crisie-of that kind only one course could have been taken. He wished the Government had shown some lead in this matter, or some sort, of indicator as to the necessity for the scope of this investigation. Aa it wae, the Committee had to proceed on a fishing expedition to discuss the state of affairs. Before any steps' should be taken to separate the institutions under discussion, further investigation should undoubtedly be made. Tbo Estates Company had been, and was, a dummy Company. In his opinion, the two institutions were one and the same.

The Hon. McLean said the circumstances this year were quite different from those of previous legislation. Undoubtedly, the Government would take the lead in this matter. He held that discussion was premature, as the matter might be more suitably treated when the Committee brought up its report.

Tn reply, the Hon. Montgomery said the Bank had a manager and an auditor in whom the Government had the greatest confidence. He believed tbo data furnished by these (gentlemen would be thoroughly satisfactory to the people of the colony. The firsb thine tho Government would consider on the report of tho Committee waa the colony of New Zealand.

Tho Committee was then eet up as follows : — The Hons. Bowen, Grace, Kelly, McLean, Stevens and Montgomery, to confer with a Committee to be appointed by the House of Representatives.

Mr J. VV. Kelly is going to movo for tho names of Mesera Graham and R. Thompson to be" added to the Com. nut tee set up to consider the position of the Assets Company'