PARLIAMENT.

Evening Post, Volume LVI, Issue 17, 20 July 1898, Page 2

PARLIAMENT.

» LEGISLATIVE COUNCIL. Yesterday's Sitting,, new hills. The Protection of Homing Pigeons Bill (the Hon. 11. Feldwick) and the Cemeteries Act Amendment Bill (the Hon. W. C. Walker) were introduced and read a first time. COMPANIES WINDING-Ur BILL. The Hon. W. C. Walker, ir moving the second reading, said the introduction of Iho Biil was consequent upon a question asked in the Council last session. The purpose of the measure was to make the Ollicial Assignee the Oiiicial Liquidator in the .winding -up of all companies. The public officer in question was appoiuted to superintend sill bankrupt estates for tho interest of all concerned, and his powers were also extended to the winding-up of mining companies. Tho Bill now before the Council simply assimilated the procedure in case of other companies winding-up to that used for ordinary firms and for miniug companies. It was to the general advantage that the work should be entrusted to a public servant with no personal interest of any kind involved. The Hon. R. Oliver thought the arguments advanced for the Bill quite inadequate. The measure was undesirable, for it put the Official Assignee in charge of the winding-up of companies whether they were solvent or not. The sole reason for introducing the measure was a desire to make the windingup of companies expensive and to bring in revenue through the Official Assignee. The shareholders were the best judges of their own interests, and the appointment of the Official Assignee as liquidator was unnecessary, since under the Bill supervisors were to be appointed by the company to assist him. The Hon. S. E. Shrimski did not consider the Bill designed to extract money from the shareholders, but to give them a chance of being heard. At present the directors were all-powerful in the appointment of liquidators, and with a public officer in oharge the ordinai*y shareholder would have a better opportunity of making his grievances known. The Hon. J. A. Bonar held that those •who put money into a company should have the right to sa\ r how it was to be wound up, and not any outside person. The Hon. G. M'Lean supported the second reading, because an amendment of the existing law was needed in order to make liquidators amenable to the shareholders. The Hon. W. H. Reynolds supported the principle of amending the law. The Hon. A. Lee Smith cordially supported the Bill. There was no reason why companies should be wound up in a different way from private firms. Those who had carefully followed the commercial transactions of the last few years should not oppose the measure. After explaining that he did not wish to incur any suspicion of personal animus against hou. gentlemen who may have been connected with the Colonial Bank, he proceeded to speak at some length on tbe winding-up of that institution. He could not see how the £100,000 divided by the liquidators could have represented the assets of the Bank, shown to be more than £500,000 in the balance-sheet of some 18 mouths previous to the liquidation. The unsatisfactory manner -of proceeding would not have arisen had the affair been under the charge of the Official Assignee. Had that officer had control he would have been supported by experts. As it was the Judge of the Court appoiuted Messrs. Larnach, Ramsay, and Vigers as temporary liquidators ; but on consulting the shareholders as to the permanent appointments Mr. Larnacli, who was eminently qualified for the post, was replaced by Mr. Simpson. The step was an'unw iti one,owing to the latter gentleman's connection with a compauy whose directors had intimate relations with the Bank. Even up to the present time there was no statement of what the nature of the ■windiug-up really was. The Ward and liiley accounts could, at the most, amount to about £150,000, so they could not have caused the reduction of the £500,000 odd to £100,000. Many men evidently crept through by private compromises, which, on an unwise recommendation of the Judge, the press was charged not to publish. Even now, some two years and nine months after the Bauk went into liquidation, there was no report to hand. No one knew anything about the real position, and it was monstrous that there should be a sum of some £300,000 unaccounted for. Take, again, the liquidation of the Ward Association. He (the speaker) and Mr. Reid were asked to investigate the position of the concern, and he found it one of the best businesses in the whole colony, making some £4000 to £5000 per annum on commission alone, with good, loyal clients. There were, it is true, a considerable number of advances, the money being taken at call from the Colonial Bank, but Mr. Ward was a pushing man, possibly wanting the experience of age. The business, however, was a large and splendid one, and he (Mr. Lee Smith) would unhesitatingly pledge his reputation, whatever it was worth, that had he and Mr. Reid come on the scene before the crash came, and before the scare developed by comments which drove clients to remove their accounts, leaving the business with only a small open account, the business •would in four or five years not only have been found solvent, but one of the best in the colony. The Bank sent down Mr. Cook to look after the affair. However good as an accountant, that gentleman was not competent to do the work. He began to collect accounts, some debtors he let through with small amounts while others he refused to let through. One man with a wife ill in bed he forced through the Court in demand for a sum which it was manifestly impossible for him to pay. He (Mr. Lee-Smith) would further charge the Colonial Bank liquidators with doing one of the greatest wrongs ever committed in the colony. The business had to be carried on from day to day, and it was agreed with Mr.Cookthatnnthe Bank taking over the estate everything as from that day should be paid in full. On that understandinghe (Mr. Smith) and Mr. Reid ordered £400 worth of goods, not a shilling of which had been paid to this day. Mr. Cook swore an affidavit admitting his responsibility, but the liquidators would not pay. The Judge could do nothing, and the people from whom the goods were obtained were robbed of their money. Iv the case of the Guthrie Companies also Mr. Cook rejected advice, and by his method of winding-up caused heavy losses. Tbe Hon. W. D. Stewart pointed out the three different forms of winding-up companies provided for in tho Companies Act, and considered the Official Assignee was a fit person in cases of insolvency, but where companies could ultimately pay their creditors in full and shareholders alone were affected they should manage their own winding-up. The Bill was read a second time, and referred to the Statutes Revision Committee. UNCLAIMED MONEYS. The Unclaimed Moneys Bill was read a second^ time after a short debate, and the Counflil rose at 4.15.