The Parliamentary Banking Enquiry.

Southland Times, Issue 13501, 18 July 1896, Page 2

The Parliamentary Banking Enquiry.

MR WATSON STICKS TO HIS GUNS. (By Telegraph.) ; Wellington, J uly 17. The sub-committee of the House’s Banking Committee met this morning, when a discussion took place regarding the question of recommending to the general committee the notices of motion by Mr Guinness regarding Walter Guthrie and Co, Limited, and the firms connected with the institution. ■The Premier objected to so long a notice of motion because any member of committie might write out a string of resolutions affecting persons and corporations and have them printed and publicly circulated. He had protested against this at a previous sitting, and he was not going to be dragged into any dirty work, either for the sub-com-mittee or anyone else. The Chairman asked Mr Guinness if he could show that his notices of motion as to writings off had any connection with the subject matter of enquiry.—Mr Gunness replied that the parties referred to were customers of the bank and there was information that had been written off their accounts and sums advanced.—The Chairman: Have you any particulars in support of your opinion ?—Mr Guinness : We have seen balance sheets and Sir Robt. Stont’s statements in the House.—Mr Montgomery : That seems very vague.—The Chairman : Can you produce evidence that your information is connected in any way with writings off?—Mr Guinness : Yes , but I cannot produce it until to-morrow.—Mr Seddon : That will not debar Mr Guinness from moving it before the general Committee.—The Chairman : No, but we cannot recommend it to the Joint Committee.

Mr Montgomery moved that in the absence of proof that Mr Guinness’ motion is connected with the subject motion of the enquiry the sub-committee cannot recommend it to the general committee.—The Premier moved, the previous question. The subcommittee had nothing before it. He would not be dragged into anything unpleasant with any party. If this notice of motion, which he called a mistake, was to be admitted there was no knowing where it would end. No such objection was raised against the notice of motion tabled by Mr Hutchison as was now raised against those of Mr Guinness. If proof of relevancy must be produced before notices of motion were received the same ruleshould bi applied toother notices. —Mr Montgomery : Mr Guinness will bring notices of motion before the subcommittee when he is prep tied to show their relevancy and they cm be considered tomorrow. — The Chairman : When Mr Guinness was asked io furnish proof of relevancy he said it was in the Insurance and Banking Records, but that paper was not produced.—Mr Guinness being unable to furnish proof his notice of motion could not be recommended to the general committee but the other notices were connected with the subject matter which the general committee had been set up to deal with.—The previous question was then put and lost and Mr Montgomery’s motion agreed to, aud the sub-committee adjourned for the purpose of reporting to the general committee. Immediately on the Bank Committee meeting the room was cleared and the committee proceeded to deliberate for an hour and a half, when persons interests were readmitted. At 12.50 the Chairman told Mr Watson that the committee would repeat the question he (Mr Watson) had declined to answer yesterday with regard to writings off in connection with the Bank of New Zealand in 1888 and thus give him another opportunity of answering it. The chairman then put the question as follows :—“ What are the names of the persons and corporations in whose favour the writings off took place ” Mr Watson : I regret I have to repeat my former answer, viz.—Having regard to the terms of my appointment and the declaration of secrecy 1 must decline to give any information regarding any individual accounts whatever, past or present, and I am acting under the advice of the bank’s counsel and, further, I consider it my duty to the bank and the colony to decline to give such information. Mr Hutcheson moved that the committee proceed to deliberate. Mr Watson : When shall I be wanted again ? The Chairman : Not 10-day. Mr Seddon : It is very likely when you are wanted again we shall send for you. The committee then sat with closed doors, but the decision will be made public. At 1.15 the committee adjourned till 11 o’clock to-morrow.

. In the Legislative Council this afternoon Mr Stevens brought up an interim report of the Binking Committee set up by the Council, containing the heads of inquiry decided upon by the committee as follows :— BANK OF NEW ZEALAND. To inquire into (1) the position of the bank at the date when the colony assisted it by the guarantee of two million ; (2} the information disclosed when the bank applied for assistance in 1891, and whether, prior to that date, the bank had applied for Government assistance and the fulness and accuracy of the information supplied ; (3) the circumstances leading up to the bank legislation or, connected therewith, of the president, general manager and directore, officers and agents of the Bank of New Zealand and the Colonial Bank ; (4) when such assistance was asked for and what further information was disclosed before Parliament was asked for further assistance in 1895 ; (5) balance sheets of the bank for the year 1893 and since ; their fulness and accutacy; (6) how was the price paid for the goodwill of the Colonial Bank arrived at? How far have the estimates of the benefit to the Bank of New Zealand from the purchase of the Colonial Bank been realised? (7) appointment of President and General Manager of the Bank of New Zealand and their connection with the Colonial Bank, or their connection with any constituents of the Colonial Bank or with the banking legislation of 1893-94-95 ; (8) the properties remaining in possession of the bank on the establishment of the Assets Company ; a statement of their estimated value at that date and of such properties still held by the bank and their present value; (9) the management of the bank since 1894 ; how far the estimates of earnings since 1895 have been realised up to date and how far those estimates can be relied on as to future earnings ; (10) the present position of the bank’s Australian business, and the Bank of New Zealand Estates Company. To enquire into (1) date of establishment; (2) circumstances leading up to its formation and its then position ; (3) the several valuations of its assets; (4) its debenture transactions; (5) its balance sheets, their fulness and accuracy; (6) the progress made, earnings, and results attained in the realisation of the assets of the Realisation Board; (7) proposals for future administration and estimates of the probable results, and as to when the winding up of the realisation may be anticipated ; AUCKLAND AGRICULTURAL CO. Similar enquiries so far as necessary. COLONIAL BANK. To enquire (1) when wete negotiations opened with the Bank of New Zealand for the sale of the bank’s business and by whom ? (2) when did the Government first become aware of such negotiations ? (3) what was the position of the Colonial Bank at such date? (4) balance sheets since 1893 ; (5) the several valuations of the assets of the bank at the time of the first negotiations for sale and since ; their fulness and accuracy ; (6) amounts written offsince 1894 ; what led to such writings off and whether other amounts should have been written off? (7) whether full and accurate information wassupplitd by the directors, officers, and agents of the bank when Parliament authorised the purchase? (8) -who supplied the information on which the contract for sale and purchase, dated 18th October, 1895, was drawn ? (9) who was responsible for the preparation of the list of debits and accounts marked A, B, C, D? (10) who drafted the bill “Bank of New Zealand and Banking. Act, 1895," and under whose instructions ?