EVENING SITTING.

Star (Christchurch), Issue 5698, 17 October 1896, Page 6

EVENING SITTING.

The House resumed at 7 p.m. ■The Hon R. J. Seddon detailed the several amendments that had been made by the Legislative Council in. the Banking Bill. With regard to the new clause dealing with the liquidation of the Colonial Bank accounts, he said that it removed the liquidation from under the Companies Act, and he niust disagree with it. The other portion of the clause amounted to the restoration .of what was Clause 14 in the original Bill, with the addition of the proviso given notice of by Mr Bell providing that before the B list accounts could bo taken over by the Bank of New Zealand, the Directors of that institution must be unanimous. Clause 14 was rejected by the House by a majority of three votes, but he believed that if the Bill's proviso had been attached to it it would have been retained. However, he mtist stand by the decision of the House, and would disagree with the action of the Council in re-inserting the clauses. He hoped that the conference would arrive at a conrpi'oniise, and that the Bill would bo placed on the Statute Book. He moved •that the amendments made by the Legis- , lative Council in the Bill should be disagreed with, and that the managers to represent the House at the conference bo the Hon R. J. Seddon, Hon J. M'Kenzie, Sir R. Stout, Mr Guinness and Mr Tanner. Sir R. Stout declined to act, and the Hon R. J. Seddon. agreed to the insertion of Mr Bell's name in his stead. Sir R. Stout thought that the disqualification clause put in by the Legislative Council should be accepted, and also the term of office of directors. The new clause relating to the liquidation of the Colonial Bank accounts should not be given effect to without the shareholders being desirous Of it. Mr R. Thompson moved that Mr Montgomery's name should be added to the list of the House managers, but the Hon R. J. Seddon objected solely on the ground that five managers were sufficient. Mr Montgomery hoped that the amendment would be -withdrawn, as five managers constituted sufficient representation for the House. The independent element was already well represented among the managers proposed by Mr Seddon. After some discussion Mr Thompson withdrew his amendment, and the Hon R. J. Seddon's motion was agreed, to on the voices. The Speaker drew attention to the fact that the Legislative Council had altered the salaries of the Directors from ,£4OO to ,£3OO. Some years ago he said that it was laid down by himself in regard to their privileges that the Legislative Council could not alter a Bill as far as regarded the distribution of money, and that ruling was upheld by Chief Justice Coleridge, to whom it was referred. The House then adjourned until the conference on the Bill had finished. On the House resuming at 11 p.m The Hon R. J. Seddon said that the conference on the Banking Bill had been unable to come to any agreement. The House managers had agreed to the Council's amendment with regard to the appointment of directors, but no decision was arrived at with regard to the disqualification clause, although that would probably have been settled if the major points had been settled. The salary of the directors had been restored to .£4OO. Considerable debate had taken place with regard to the liquidation clause inserted by the Council. After this debate, the Council managers made an offer, viz., that the C list should be excluded from the operations of this section, that the liquidators must consent to each compromise, and thaif any of the liquidators should have power to apply to the Court to disallow the proposed compromise. The House managers offered, if the Council would agree, to exclude the first section of the new clause (that relating to liquidation) the Hoixse would agree to the second section (providing for the B list accounts being taken over by the Bank of New Zealand with, the unanimous consent of the

Directors), but this could not be arranged. He said that he very much regretted this deadlock, especially when the legislation was now for the House to say whether the Bill should ba dropped or whether another conference should be asked for. He favoured the latter alternative, and therefore moved that the amendments agreed to by the House managers should be approved, and that another conference with the Legislative Council should be asked for. This was agreed to on the voices, and the Hon R. J. Seddon moved that the House managers should be the Hon R. J. Seddon, Messrs McNab, Morrison, Wilson, and Montgomery. Mr M-Nab objected to serving as a manager, as he would not act, he said, on the conference with a gentleman who was a . director of one of the companies interested. Mr Montgomery held the same view as Mr M'Nab and refused to serve. Captain Russell said that it was enormous that the member of the Legislative Council referred to should act on the cbn.ference seeing how intimately he was connected with one of the institutions interested. Mr M'Nab said that he was given, to understand that if he acted on the conference the Legislative Councillor referred to would also be there. ' Mr Montgomery consented to serve conditionally on there being no Director of the Colonial Bank among the Managers of the* Legislative Council. Eventually the Premier's motion was agreed to, with the omission of Mr M'Nab's name. • On the House resuming at 12.30, the Hon R. J. Seddon said that the second conference had confirmed what had been done by the former managers in regard to Clauses 6 and.9. With regard to the new liquidation clause, the Council's managers suggested that a further proviso be inserted excluding the C list from the operations of the section and providing that the liquidators must be unanimous in respect to any compromise, and that power should be given to any single liquidator to place any account before the Court, and providing further that, the shareholders in general meeting should, by resolution, approve of this power on the part of the liquidators. He said that the Council managers had endeavoured to meet the views of the House managers as far as possible, but they stated that this compromise was asfar as they could go. He thought that it was advisable, in preference to losing the Bill, that a third conference should be asked 'for, and the House should indicate to its managers whether or not the Council's compromise should be accepted ; in other words, whether the clause should be passed in the form he had sketched. He would prefer, to' see the clause excised altogether, but still he would prefer the compromise to losing the Bill. He moved that* a third conference should be asked for, and that the House managers should be Messrs Seddon, M'Nab, Houston and Duncan. I Mr M'Nab said that Ms own view was that the Bill should be dropped, and he j should divide the House on that question. If the House, however, was anxious that he should act onthe conference he would do so. Captain Russell said that there was suspicion attaching to every one in this matter. He thought that there should be a full and fair inquiry into the whole position before they agreed to another conference. Mr Montgomery said that if they allowed the shareholders in the B list there was no reason why they should not allow everybody else to come in. He had come to the conclusion that there would be no agreement on the part of the conference . Mr Bell saw no good in appointing a new conference unless the House consented to give up all that it had previously contended for. The Hon J. M'Kenzie asked the House to have one more trial to effect a compromise with the Council. Dr Newman protested against three directors of the Colonial Bank (the Hons W. D. Stewart, G. M'Lean and W. H. Reynolds) taking part in this legislation in the Upper House, and he felt sure that the people of the colony would resent the House giving way on this matter. j Mr G. W. Russell said that the colony [ Avas demanding a strict inquiry into banking matters of the Bank of New Zealand. He thought it highly improper that one of the directors of the Colonial Bank should sit on the conference and endeavour to influence the House in this matter. After further discussion, the Hon R. J. Seddon said he thought that they should exhaust every means of meeting another conference, and endeavouring to arrange this matter. He held that it was not fair to attack members of the Legislative Council who were directors of the Colonial Bank, and he had heard more against members of the Council that night than he had ever heard before, which he greatly regretted. He said that there was nothing in the Bank Committee's report that would warrant the Government in dismissing the President, and he would not take the extreme step suggested if the Bill was not passed. The Hon R. J. Seddon's motion .for a third conference was carried on the voices, and at 2 a.m. the House again adjourned to await its result.

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