The Parliamentary Banking Enquiry.

Southland Times, Issue 13508, 16 July 1896, Page 2

The Parliamentary Banking Enquiry.

IL (By Telegraph.) Wellington, July 15. The Bank Committee of the House of Representatives met this forenoon, all the members being present. The Chairman said he had waited on the Hon. Mr Walker and put the matter in writing. The Legislative Council had met and the following resolution was forwarded to him Resolved that the chairman inform Mr Graham that this committee is prepared to join the committee of the House of Representatives when its order of reference i« made the same in all respects as that of the committee of the Legislative Council, and also that counsel are nob allowed to’be present nor reporters admitted. Subsequently he received further notification that the press representatives was meant as referring to reporters. Mr Seddon moved that this committee proceed with the inquiry, and that a letter be sent to the chairman of the committee of the Legislative Council intimating that this committee does not deem it advisable to apply to the House for an?amended order of reference.—Unanimously agreed to. Mr Seddon moved that persons or corporations claiming to bo interested in the enquiry be represented by counsel.—Mr Hutchison said the enquiry would be interminable if counsel were allowed full liberty of addressing the committee on points raised. Bethought it would be sufficient to say that counsel shoqld ba allowed to watch the case on behalf of their clients. If counsel had any questions to ask after the committee had exhausted the evidence they should be allowed to put questions through the chair. —Mr Seddon proposed that the motion should be amended to read “personsand corporations named in order of reference or otherwise interested.”—Motion as amended agreed to. Mr Seddon moved that relevant questions suggested by counsel shall be put through the chairman.—Mr Guinness opposed the motion, which he said would cause waste of time and interfere with the directness of examination.—Motion agreed to by 6 to 3. It was also decided that counsel should not be allowed to address the committee. Mr Seddon moved that the reports of the sub-committee be read. This was agreed to, and report was read, amended, and adopted. The report was ordered to be printed and copies thereof forwarded to directors, officers and corporations mentioned in order of reference, while the Government was requested to supply copies of all documents, correspondence and papers in their hands in reference to the subject matter of this inquiry. Mr Hutchison moved that the three liquidators of the Colonial Bank be summoned to attend the committee.—Mr Seddon opposed the motion as being premature and an attack on the J. G. Ward Company. Why should a single company be selected for enquiry at this stage ?—Mr J. McKenzie thought the first witnesses to examine would be those connected with the Bank of New Zealand.—Mr Guinness said the committee could not enquire into the Ward business because that was not included in the order of reference.—Mr Maslin thought the Ward question must inevitably be opened up in the course of the enquiry.— Mr Seddon : Very well. We will take it in its turn as it conies up.—Mr Montgomery said his intention in proposing the appointment of an Evidence Committee (which had been negatived) was to decide as to the witnesses to bo called and to summon them together, instead of witnesses being called by members of the committee in an irregular way.—Mr Hutchison said if it was proposed to examine different corporations in the order of sequence they would probably never get at the position of the Ministers, the purchase of the Colonial Bank, and the action of the Government in relation to the transaction.—Mr McKenzie : Take the position of the Government first.— Mr Hutchison said he would persevere in his motion for Summoning Messrs Ramsay, Vigors and Simpson in order that they might have ample notice. —Mr Seddon moved as an amendment to strike out all the words after “ that,” with a view to inserting “ that this committee proceed vestigate first the matters connected in section 1 of the issues, and that the president of the Bank of New Zealand be asked to attend at once.—Mr Hutchison objected to the Premier’s motion on the ground that it was not an amendment.— After further discussion Mr Hutchison withdrew his motion and gave notice of it for next meeting.— Mr Seddon also withdrew bis amendment, and in doing so said he was desirous that the committee should proceed at once with the enquiry. If Mr Hutchison intended to enquire only into the political aspect of the question he would defeat the ends of the committee. He had no wish to come into conflict with the member for Patea. He moved “that the president of the Bank of New Zealand be asked to attend to morrow and bring with him the balance sheets and correspondence included in paragraphs 1 to 9 referring to the Bank of New Zealand and all agreements and draft agreements existing between the bank and its officers,—Agreed to. Mr Hutchison moved the following addition to Mr Seddon’s motion :—“ and be also requested to produce tho original agreement; of 18th October, 1895, made between the directors of the Bank of New Zealand and the Colonial Bank,including the original lists A.B.C. and D. mentioned therein; all drafts, memoranda and all correspondence relating to the terms of such agreement, and correspondence as to the appointment of the president and also all other documents, papers, and writings in his possession, custody or control relating to the matters of the enquiry.”—Agreed to. Mr Hutchison gave notice of the following resolutions for the next sitting :—That this committee appoint two accountants to examine and report upon the several balance sheets o£ the J. G. Ward Farmers Association, Limited, and upon the dealings of that Association and of Mr J. G. Ward with the Colonial Bank, and to prepare a balance sheet of the affairs of the Association up to the 30th June, 1896; and that this committee take steps to make available for the use of such accountants all books and papers of the Association and of the Colonial Bank in any way relating to the transactions above referred to; that. Keith R unsay, Wm. Brown Vigers, and Wm. Laurence Simpson, official liquidators of the Colonial Bank, be summoned to give evidence and to produce (1) copy of deed of settlement of the bank ; (2) the balance sheets and reports of the directors since Ist January, 1892; (3) original books of accounts, reports of bank inspectors, managers, and agents, press copy letters, original letters and telegrams received, and all other documents, papers, and writings dealing with or relating to the accounts ' and affairs of the J. G. Ward Farmers Association, Limited, and of (since Ist January, 1892), the Hon. J. G. Ward among their documents comprised in the foregoing requisition ; (4) tho original cable or telegram delivered from the telegraph office on or about the 29th June, 1895, referred to in the evidence of W. B. Vigers before the Supreme Court cn the sth May, 1896 ; (5) all other ctbles or telegrams as delivered and all letters on the same subject from London or elsewhere; (6) the code in use by the bank at the time of receipt of such cables ; (d) the draft for bill of exchange for L 30,000 drawn by tie manager of the J. G. Ward Association on or about 29th June, 1895; (e) the warran a given in respect of the draft or bill of exchange for L 16,000, afterwards drawn by the Hon Joseph George Ward; (a) the scrip or shares lodged therewith; (h) the promissory note for L 52,230 o thereabouts given by the Hon. J. G. Ward on or about the 19th October, 1895, and all other books, documents, and papers relating to the matters respectively above mentioned; all letters and communications as to the deposit of L 150,000 by the Colonial Treasurer, 1894, and the debentures of the Ward Association held by the bank ; that John - Martin Brett, auditor of the Bank of New Zealand, be summoned to attend and give evidence and to produce all regulations defining the duties and powers of the auditor under section 14 of the Bank of New Zealand Guarantee Act, 1894 ; all drafts of agreement for amalgamation and all notices and memoranda, writings or papers in any

relating to the subject matter thereon, and all documents, writings and papers relating to That J d * G. Ward, managing director of the J G. Ward Farmers Association, Limited, do attend and give evidence and produce (1) copies of the articles of association memorandum of ncorporation of the Association: (2) the original share register of the Association and all applications for allotment and transfer of shares ; (3) the original balance sheets and directors reports of the Association up to 30th June, 1896 ; (4) all the original letters and telegrams (receive 1) and also other documents, papers, and writings relating to the affairs of the Association, including the originals of all bills of exchange, promissory notes, drafts and cheques retired or returned ; (o) copy of articles of association and memorandum of incorporation of the Ocean Beach Refrigerating Company, Limited, and all the books of accounts and records of such.company, including copies of all Issued by the company; (6) copies of the income tax returns made by the company m 1893 and 1894. That the managing director of the Assets Realisation Board and the manager of the Bank of New Zealand Estates Co do attend and give evidence and produce a copy of accounts as audited, in terms, of section 27 of the Bank of New Zealand and Banking Anf mfK That Uy. McKenzie, general U.B.S o! N«’p»“V» attend to give evidence and produce copies (certificated) of the Bs/s/° terr ® d t 0 in the agreement of 18th Ootober 189 a, made between the directors of the Bank of New Zealand and of the Colonial Bank and of all other entries, if any, which appear as respecting the J. G. Ward Association or of J. 0. Ward in the D » the share register of the, bank since 1893, the minute book of the directors. of the bank in so far as they relate to the taking over, realisation or liquidation of any accounts in B or C lists, and as to appointment of general manager; originals or certified copies of the valuation of landed property and bank premises and of the furniture and stationery referred to in the agreement of 18th October, 1895; copy of the circular making the first call of L 500.000, of the reserve liability of the shareholder ; the debentures paid or retired of the Estates Company. Also the following witnesses to be examined :-John Murray (Sydney), Mr Birch, manager of the Bank of New Zealand, Timaru, U. A. Chisholm, manager of the Bank of New Zealond, Invercargill, John Fisher, ex-manager of the J. G. Ward Association, Walter Johnston and Wm. Booth, directors of the Bank of New Zealand, Hon. G. McLean, Captain Colbeck and W. S. Wilson (Auckland.) Mr Seddon : It is quite clear what you are driving at.—Mr. Hutchison: I want to net at the truth. . , n i At 1.40 p.m the committee adjourned till 11 to-morrow. '

[lnstructions from the Press Association stated that the sub-committee’s report would be forwarded later but no message so designated turned up.—Ed.]