N.Z. PARLIAMENT.

Otago Witness, Issue 2686, 6 September 1905, Page 15

N.Z. PARLIAMENT.

FRIDAY, AUGUST 25.

THE COLONIAL BANK LIQUIDA- - - TION.

The question \>i the Colonial Bank liquidation was before both Houses of Parliament 'on Friday. The Council adopted the report cf the Petitions Committee referring .to the Government for favourable consideration the request for an inquiry. > In the House of Representatives the discussion was interrupted by the dinner adjournment. In the evening 1 the Estimate's were' considered by the House, which was still sitting at 2 a.m.

The Hon. J. E. JENiONSON moved" that tha petition oi-< W. Barron and two other shareholders and contributories of the late Colonial Bank of N«w"Zealand-be referred to the Government for its consideration in accordance with the recommendation in. the report of the Public Committee. The committee, he said, had held that an inquiry into the whole history of the bank would be a big order, but the winding up of the "Colonial Bank had roused -justifiable "donbte:.in~the minds-of shareholders as to'the* matter of' finding up, which demanded" inquiry. He. did not suggest a criminal aot on the part of the liquidators, -but £400,-000-had been, frittered away somehow, and->tbe liquidators should justify their conduct, as Shareholders were of opinion that-the bank -Was-'thoroughly" solvent. The Honr G* JONES moved 'as an amendment that the report of the comnlittee be referred back" foryfurfcher consideration. In September, 1903, the committee had been of opinion that something should be done.* Next months the committee reported again that the Government should set up a committee- of inquiry."' ';The petitioners had good reason to be disgusted, as they had been thwarted on* every hand. The Hon. Mr HIGG, in seconding the amendment, contended that the liquidation was. badly, managed. There was no suggestion of fraud, but the whole position was such that "there was a yery grave that~ it was not« merely want of ability that brought about'the position. In the interest cf commercial morality a commission was necessary. - The Hon..D. PINKERTON, as a member' of the Petitions Committee, said' there was a probability that in making- another report something, very' much- stronger .would be said." '.'•/ " '"" , - > . • Tfie Eon; -A. -PITT; said-'l*~years had expired since the winding up of the ba.nk, and he-Mid>nbt %think v it Treasonable that shareholders-should now 'want., the colony to 'undertake a^" Very - expeiisive'commission on the-subjeoj.!'lt" had 'been made abundantly- elear^-by^Mr^Lee. Smith's "evidence that the £125,000" mentioned as having been lest by the liquidators went in overdrawn accounts.' It* was unreasonable that shareholders,'' 'after neglecting their' 1 opportunity, ehould.now ask for an inquiry.' "• - The Horu .W. M. .BOLT, supported an inquiry on the ground that shareholders had been placed in a-very awkward position by the action 'of Parliament. Probably there had been no malfeasance, the magnitude of the sum losfc' s 6Uggost-ed something very near frauduLency. The Hon.- T. .KELLY objected to the expenditure of public money on the inquiry sungested. -" ' - „ ■ ' TV Hon. G. M!LEAN thought that jf in« Bank of New* Zealand were to make a present of £100,000 ro Colonial'Bknk shareholders now it would only be.- doing the right tiring. As, however, the whole matter had Beem investigated by the Supreme Court, 'what was the' good of doing any more in! that direction?

The.Hon.Mr TRASK opposed setting up an inquiry ' on l 'the, ground that it would involve" unnecessaryl-expense. - The Hon.. Mr- J^nkinson's motion was carried by 23 votes t<f L 6.,