Parliamentary Banking Enquiry

Southland Times, Issue 13509, 17 July 1896, Page 2

Parliamentary Banking Enquiry

PRESIDENT WATSON REFUSES TO DISCLOSE WRITINGS OFF. PROPOSED INVESTIGATION OF SOUTHLAND COMPANIES. (By Telegraph.) Wellington, July 16. The Banking Committee resumed this morning. The Chairman read a letter from Victor Braund offering his services to the committee as a banking expert without remuneration. The letter was ordered to lie on the table. Nearly an hour was spent discussing procedure in regard to the notices of motions handed in by Mr Hutchison yesterday.—Mr Seddon considered that Mr Hutchison had taken an unprecedented course ; it should be quite sufficient for a member who wanted certain documents or evidence to hand a slip to that effect to the chairman. Any of the committee who wanted to put their knife into any person or institution had only to give noticeof motion, and a blow wasdealtthrough the publicity the notice attained. — Other members thought a majority of the committee should say what evidence should be called.—Mr Hutchison said he had no desire to give his notices of motions publicity. He had offered simply to hand them to' the chairman, but this course was opposed. Mr J. McKenzie said Mr Hutchison’s motive could easily be seen. No mention was made of the Bank of N. Z. and only documents relating to the Colonial Bank and the Ward Association were called far.—Eventually it was unanimously agreed to set up a sub-com-mittee, consisting of Messrs Montgomery, Hutchison, Steward, Graham and Seddon, to advise and report as to what evidence should be procured, the deliberations of this committee to be open. Mr Hutchkon agreeing to refer his notices of motion to this committee. It was decided that all witnesses examined by the committee should be sworn and the examination of Mr Watson, President of the Bank of New Zealand, was proceeded with. After he had answered a few questions regarding his position and the officers of the Bank of New Zealand in 1888,

Mr Seddon asked who were the persons whose names appeared in connection with accounts written off.—Mr Hutchison submitted that the question was outside the order of reference.—The Chairman ruled that the Premier’s question was in order. Mr Watson: Having regard to the declaration of secrecy and the terms of my appointment, I must decline to give any information as to accounts, anl I am legally advised to that effect.

The Chairman : Do you decline to answer the question 1 Mr Watson : I signed a declaration and all bank officers and everyone connected with the bank have signed a declaration that they will not disclose anything relating to individual accounts. I have been appointed to conserve the interests of the colony and shareholders and I contend ib would be against the interests of the colony and shareholders to divulge such information, and that it is my duty not to divulge it. Mr Seddon : The question is whether the bank shall be master of the House of Representatives. I see nothing for it but to consider our position.—The Chairman : I was going to say we should take the opinion of the House.—Mr Hutchison : I take it the chairman’s ruling must be upheld, and the question must ba answered. The Chairman (to witness): You never took any oath.

Mr Watson : No. I signed a declaration of secrecy. Mr Hutchison : A declaration would not be an excuse in any court for refusing to answer a question. This Committee has all the powers of the House of Commons. There is no excuse for witness to refuse to answer a question put by this committee if the chairman and committee are of opinion that it should be answered.—Mr Montgomery : Mr Watson made a declaration to the bank, but about ten minutes ago he took an oath before this committee to tell the whole truth and nothing but the truth.

Mr Theo. Cooper (counsel for the Bank ot New Zealand) : I have advised the president, directors, and officers of the bank to refuse to give any information concerning the accounts of any of the customers of the Colonial Bank in relation to that portion of the business of the Colonial Bank now being administered by the Bank of New Zealand. They are, therefore, acting under my advice, and, at the proper time and in the proper place, I shall be prepared to give my reasons.

Mr Seddon said the committee must deliberate on their position, and the room was accordingly cleared. After a few minutes’ deliberation the committee came to a decision, bub resolved not to make it public. Mr Guinness gave notice of motion :—l. For balance sheets and all returns since their formation, with certified copies, by duly qualified accountants, up to 30th June, 1896, of Walter Guthrie and Company (Limited), New Zealand Pine Company (Limited), Colonial Hardware, Woodware and Implement Company (Limited), Colonial Implement and Engineering Company (Limited) ; 2. for a retain of all sums paid for the various businesses purchased by Walter Guthrie aud Company or any of the above limited liability companies, with original agreements, and what amount these businesses nowjstand in their books at; what additions have been made to the original sums paid, and why entries were made in their books considerably in excess of the amounts paid to the sellers ; 3. all original papers, bills, drafts, and deeds of arrangement as between all the foregoing companies and the various individuals, firms, directors or companies interested, and also as between the foregoing and the Bank of New Zealand ; 4. return of all payments or concessions made by cash, shares or otherwise to Walter Guthrie or any member of his family, W. B. Scandrett, Joseph Stock, J. C. Colbeck, Sir R. Stout, Stout, Mondy and Sim, or any of them, or to anj' officer, past or present, of the Bank of New Zealand ; 5. for the production of all original papers, valuations, prospectuses, deeds or otherwise, drawn up for the protection of each, or any, or all of the above companies in London or elsewhere, with certificates of the principals, and auditors and valuators with detailed statements as to howvaluations were arrived at and made up ; 6. all correspondence between the several Invercargill managers of the Bink o£ New Zealand and their head office concerning any or all of above, also as between the bank and Mr Walter Guthrie, Sir R. Stout, or any person connected with any of the businesses, also between Sir R. Stout and Mr Walter Guthrie or the firm of Stout, Mondy and Sim, or any member thereof ; 7. amount of bills under discount in the Bank of New Zealand of any or all above compan es at the date of their balances and whether such amounts were shown in their balance sheets, aleo the amount of English bills or credits current at the date of balance, aud whether such were shown in the balance sheets; 8. the interests held by the Bank of New Zealand, or the New Zealand Estates Co., or any officer representing the bank, in any or all of the foregoing companies and the circumstances that led to their becoming possessed of them ; 9. that the following witnesses be summoned to attend and produce all books, deeds, documents, or correspondence having any bearing upon the several matters referred to above—viz., Sir Robert Stout, Walter Guthrie, W. V. Haddock, Mondy, S. M. Siavwright, Wallace (lata manager of the Walter Guthrie Co), W. B. Scandrett, Joseph Stock, W. Young, W Ross, W. Booth (Christchurch), D. A. Smith , J. Macalister, P. H. Miller, W. Barclay, G. D. Newman, J. Innes, J. Collins, J. C. Colbeck, and the following managers or ex-managers of the Bank of N.Z. who have been stationed at Invercargill:— Messrs Ewen, McOwen, Harper, McKay, Graves, and Chisholm, Mr Buller, the president and auditor of the Bank of New Zealand ; also the officer {appointed by the New Zealand Estates Company to visit and report upon the properties Walter Guthrie and Company,. the New Zealand Pine Company, or any of the other companies connected with them ; 10. a copy of Mr Walter Guthrie, Sir Robert Stout or any other directors’ account with any of the above named companies, showing

what amounts were overdrawn at various times and the nature of the security, if any, held against the same ; 11. a return of all timber areas, with estimated amount of tirnber available, held by any of the foregoing companies—(a) from the Crown ; (b) from private individuals; (c) from companies or corporations ; and a certificate of their values from some responsible Government officer, with the amounts already paid and the liabilities on the same before timber can be removed ; 12. that two certificated accountants examine and furnish reports upon each of the balance sheets of any of the above firms or companies since 1888; 13. that the Bank of New Zealand furnish a return showing the amounts written off the indebtedness of any of the above firms or companies prior to 1894 and since 1894, showing such amounts separately; 14. all original papers and documents submitted to the bank by any of the directors or any of the above firms or companies or any person connected with the same.

The committee then adjourned and will report to ths House to-morrow with regard to Mr Watson’s refusal to answer questions.

At the meeting of the Evidence Committee it was decided to recommend that Mr Hutchison’s notices of motion, with slight amendments, be agreed to, with the exception of the one referring to the appointment of two accountants to enquire into the balance sheets of the Ward Farmers Association, which ib was considered was not a matter for the subcommittee to deal with. Other matters in regard to the calling of witnesses and papers were also decided by the subcommittee. It was decided to summon the following additional witnesses:—Mr Graves, manager of the Bank of New Zealand at Ashburton (late of Invercargill); Messrs Geo. Buckley, J. 0. Hanna (inspector New Zealand Insurance Co), Lyons, McCaul, and Cuff (officers of the Realisation Board), Foster (manager of the Estates Company), T. G. McCarthy (director of the Bank of New Zealand), all the directors of the Colonial Bank and the Bank of New Zealand, G. E. Tolhurst (Union Bank of Australia), and Major George,