THE BANKING ENQUIRY.

Press, Volume LIII, Issue 9515, 7 September 1896, Page 6

THE BANKING ENQUIRY.

(press association telegram.)

WELLINGTON, September 5. The House Banking Committee resumed its investigations at 10.30 a.m. The proposed Questions to be submitted to Mr John Murray were considered. Some discussion took place ns to whether the Committee could alter the form of the questions submitted by individual members of the Committee, the Premier wishing to iifcer some of Mr Montgomery's. Mr Montgomery conteinlcil tlrnt no alteration could be made unless the questions Were outside the order of reference. The Chairman ruled that the alteration could be made. Mr Hutchison objected to any alteration being made in his questions, and wished to withdraw them. The Chairman held that the questions having been handed in were the property of the Committee, and could not be withdrawn. The Premier also submitted a number of questions. It was decided to ask Mr Murray to send his replies by the first return mail. The Chairman observed that the Committee would not be able to get Mr Murray's replies before the expiry of the three weeks' extension of time last obtained, but no doubt the House would grant them a further extension of a few days. The re-examination of Mr Watson by Mr Montgomery was resumed. Witness said he was informed by Mr Foster that the Wellington Meat Export Company had not during the past year "bought any sheep from the Estates Company. Witness knew nothing about the Estates Company sending Home sheep through the Meat Company. Mr Watson produced a statement showing that the only properties taken over from the Bank by the Estates Company were the Mata,mata estate, the Auckland roller flour mills, and the Auckland Freezing Company. The Estates Company paid the Bank for these the book value of £120,000. Under re-examination by Mr Hutchison witness declined to say whether the Board of Directors had consented to Mr Murray, Manager of the Bank at Auckland, taking a seat on the Advising Board of the German syndicate, of which Mr Seddon also was a member. The Chairman ruled that the question must be answered. Mr Watson said the Directors had consented to Mr Murray acting on that Board owing to the special circumstances of the ease. Witnese did not know what remuneration Mr Murray received from the syndicate. Mr Hutchison—But you can find out? Witness—Of course I could find out, but I £o not feel inclined to do so. The Chairman said the witness must say whether or not he would find out. Witness—Well, I decline to make enquiries, as I object to enquire into the private affairs of officers of the Bank. Mr Hutchison objected to Mr Watson's , refusal. Mr Seddon said Mr Watson was quite right in his refusal to answer questions affecting the private affairs of officers of the Bank. If the Committee wanted to find out the remuneration of Mr Murray, let them call Mr Murray as a witness. Mr Montgomery entirely agreed with the Premier on this point. Mr Hutchison said the position was that an officer of the Bank, who was also a servant of the colony, had been allowed to take up other work, and it was right that the people of the colony should know what remuneration he received for those services. Mr J. M'Kenzie said if this thing was allowed there would be no end to it. Major Steward said they could not compel Mr Watson to find out what he did not know of his own knowledge. They could not take hearsay evidence. Mr Seddon said this Committee was set up as a Committee of enquiry, and not as an inquisition to enquire into the private affairs of officers of the Bank of New Zealand. After further discussion the question was allowed to stand ovei\ Witness continuing, said bills payable were always represented as liabilities, and bills receivable as assets, bills under discount carried a contingent liability. In the balance-sheets of certain companies which witness reviewed some daye ago he did not wish to imply anything beyond what appeared on the face of the balance-sheets. In the copy of the balance-sheet purporting to be that of the Ward Farmers' Association, there was an item of £6830 bills receivable. He did not know of bills payable being deducted from bills receivable and the balance placed in the balance-sheet as bills receivable. He did not think that had been done in the case of the Ward Association balancesheet. Bills under discount were not necessarily put in as liabilities in the case of any company, but should be put in as a contingent liability, although many companies did not do this. At 1 p.m. the Committee adjourned till 11 a.m. on Tuesday.