Banking Committee.

Opunake Times, Volume V, Issue 197, 24 July 1896, Page 3

Banking Committee.

Wellington, July 21

The sub-Gomraittee of the Banking Enquiry met at 10 o’clock this morning. Mr Tiieo. Cooper watched the proceedings on behalf of the Bank of New Zealand, and Mr 0. Samuel as counsel for Mr J. G. Ward. The main Committee met at 11 o’clock, when Mr Seddon said he had received a communication from the Speaker intimating that Mr Watson had paid the fine"yesterday. W. Booth, examined by Mr Seddon, said he had been a director of the Bank of New Zealand since the end of 1894, and had been attorney for the Estates Company nearly as long. In 1888, the balance-sheet showed excess of assest over liabilities of £1,560,861, writings-off amounted to £216,855, but he had no knowledge of the cause of these losses. The balance-sheet of 1889, showed capital £1,124,874, and balance of assets over liabilities of £1,213,323. The reserve fund, which amounted to £500,000 in 1888, seemed to have disappeared in this year. New capital to the amount of £174,824 was added and £109,564 written off.

Mr Seddon: That means that in twelve months £825,000 was written off, including the disappearance of the reserve fund ?

Witness : Yes. Continuing he said that 1890 the assets were £1,224,783 over the liabilities. There was no reserve fund at all. Writings off in that year totalled £1,169,565. He expected the reserve fund that had disappeared ia the previous year was included in this sum.

There was no suspense account in 1891. The capital in 1892 was £900,000 ; assets over liabilities, after dividend had been paid, and including £15,000 added to reserve fund, amounted to £952,830; writings-off amounted to £20,198. In 1893 the capital was £900,000; the reserve fund increased from £35,000 to £45,000; assets over liabilities were £954,161; amount written off was £12,582. The Bank paid the following dividends : In 1888 and 1889, 7 per cent; 1891, 1892, and 1893, 5 per cent; there was no dividend in 1890. Mr Seddon asked Mr Booth whether he could produce the statement submitted by Mr John Murray to the Government in June, 1894, showing the position when tbe Bank came to the colony for assistance. Mr Booth doubted whether that statement could be produced, as information contained therein came to hand from London by private cable to Mr Murray. The sub-Committee of tbe House Banking Committee met again at 3.35 this afternoon, and proceeded to review tbe notices of motion tabled by Mr Hutchison, The clause, referring to the production of the share receiver of the Bank of New Zealand, was excised. Clause 3, relating to the minutebook, was altered, so as to include particulars of waitings off since 1888. On the question of producing the debentures of tbe Ward Association held by the Bank, the Premier objected on the ground that the clause was beyond the order of reference. Unless they were writings-off, the Committee had no more right to demand the production of the Ward debentures than those of Guthrie and Co., the Pine Company, pi the Gear Meat Company. He moved that the clause be excised for the present, and this was agreed to. The next clause, referring to the production of documents by Mr Ward, was struck out, but that portion of the clause empowering the Committee to call upon Mr Ward to attend and give evidence was allowed to stand.

The other clauses under the same head calling upon Mr Ward to produce the Articles of Association, tbe share register, balance-sheets, books, and correspondence of the Farmers Association and Ocean Beach Refrigerating Company, were postponed, on the understanding that the Committee might call for the documents as required. Clause 4, as to the production of books and documents of the Ward Farmers’ Association in connection with the Colonial Bank, was struck out.

Clause 6, the production of letters and communication as to the deposit by the Colonial Treasurer in 1894, of £150,000 in the Colonial Bank, was excised ; also regarding the production of debentures of the Ward Association held for the Bank. It was decided to call W. G. Foster, Manager of the Estates Company, to give evidence and produce documents connected with the Company. The Committee then adjourned.