THE COUNCIL COMMITTEES REPORT.

Nelson Evening Mail, Volume XXX, Issue 222, 19 September 1896, Page 2

THE COUNCIL COMMITTEES REPORT.

IMPORTANT FINDINGS AND SUGGESTIONS. MR. WARD SHOULD HAVE RESIGNED. [From Out Special Correspondent.] Wellington, September 18. Following ia a portion of the toxt of the Legislative Counoil Comruittoo'a roport on the Banking saandals ; — "During the investigations made by your Committee in respeot to the agreement between the Banks ior the purchase of the Colonial! Bank, the connection of the late Colonial Treasurer -With that Bank has necessarily oooupied a great deal of attention. The evidenoe is that the ox Colonial Treasurer and the J, G, Ward Farmers' Association had done business with the Colonial Bank for a considerable time, and that Mr Ward «as the principal proprietor of the Association. The business of the Ward Farmers' Association was large, involving a turnover of £500,000 a year. "In June, 1895, an Inspector of the Colonial Bank was sent to Invereargill to endeavour to reduce the overdraft of the Ward Farmora' Assooiation. He obtained a draft on London for £30,000 founded on a warrant for oa's. Mr Ward, ex Colonial Treasurer, returned to the colony in 1895, and shortly afterwards beoame aware that his finanofal position was involved, and also of the oats' transaction, a short history of whioh is that Mr Fisher, Manager of the Ward' Farmers' Association, gave a draft for £.30,000 on London, supported by a warrant; for 80,000 bags of oats. But the precise terms of the authority on which the draft was given was dot oommunica'te'd to Mr Fifther, and he stipulated that the draft should not bo operatud upon till Mr Ward's return from the oolony, and as Boon as be beoame aoquaiuted with the

faots, he acquainted the Bank authorities of them, " Your Committee is of opinion that Mr Ward, when he beoame aware that bis financial positioq was seriously involved, ought to have acquainted his colleagues in tbe Government of his financial position, and that he ought to have tendered his resignation of the office ot Colonial Treasurer. " Considering the financial position of tbe then Colonial Treasurer, and having in view tha necessity that waa then known to exist for negotiating the purchase of the Colonial Bank, and the passing of legislation to give effect to the same, and the knowledge that those transactions and that legislation must necessarily affect him, it was in our opinion extremely unfortunate that Mr Ward should have continued to hold the office of Colonial Treasurer. " Your Committee think it right, however, to state that they found no evidence to show that Mr Ward was associated with tha negotiations for the purohase of the Colonial Bank." [United Press Association.] Wellington, September 18. The Legislative Council Bunking Committee laid their report on the table of the Upper House this afternoon, It is a very lengthy document. It acquits Mr Ward and the Government of all suggestions of corrupt acts so far as the Bank legislation is concerned, but it finds, that when Mr Ward returned from England in 1895, and discovered his involved financial position, he ought to have at once acquainted his colleagues and resigned from the Ministry, The report suggests that in view of the increased responsibility of the State in connection with the Bank, the Directorate should be strengthened by the appointment of two additional Direotora, one appointed by the House of Representatives, the other by the Legislative Council. It is also suggested that the agreement under which Mr Butt, Colonial Auditor, can return to the service of the Bank of New Zealand, in the event of losing his position as Colonial Auditor, should be immediately terminated. The report st.itea that the. evidence without exooption supports the purchase of the Colonial Bank as a judicious transaction : whioh has proved profitable to the Bank of ■ New Zealand. Evidence also shows that I th;re is praotioally no sale in the colony at present for tho larger properties in the 1 hands of the Assets Realisation Board, i and the Committee consider that they I should be utilised as fast as possible under > the Lands for Settlement Act.