Legislative Council.

Wanganui Herald, Volume XXXIX, Issue 11647, 26 August 1905, Page 2

Legislative Council.

(Pe-r United Press Association.) WELLINGTON, August 26. The Council met at 2.30. THE COLONIAL BANK.

The Hon. Joukinson moWd that the petition of Mr Barron and two other shareholders and contributaries of the late Colonial Bank of New Zealand be referred to the Government for their consideration, in accordance with the recommendation in the report of the Public Petitions Committee. The committee, he said, had held that an inquiry into the whole history of the Bauk would be a big order, but the willdin&r up of the Colonial Bank had raised justifiable doubts in the minds of shareholders, and the manner of winding up demanded inquiry. He did not "Suggest a criminal action on the part of the liquidators, but £400,000 had been frittered away somehow, and the liquidators should justify their conduct, as the shareholders were of opinion that the Bank was thoroughly solvent.

The Hon. Jones moved as an amendment that the report of the committee be refered back for further consideration. lii September. 1903, the committee had been of opinion that something should be done. Next month 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. Rigg, in second 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 very grave suspicion that it was not merely want of ability that brought about the position. In the interest of commercial morality an inquiry was necessary. The Hon. Pinkerton. as a member of the Petitions Committee, said there was a probability that in making another report something very much stronger woiild be said.

The Attorney-General said ten years had expired since the winding up of the Bank. He did not think it reasonable that they should want the colony to undertake any expensive commission on the subject. It had been made abundantly clear by the Hon. Lee-Smith's evidence that the .£125.000 mentioned as having been lost by the liquidators went in overdrawn accounts.' It was unreasonable that fhe shareholders, after neglecting their opportunity, should now ask for an inquiry. The Hon. Bolt supported an inquiry, on the ground that the shareholders had been placed in a very awkward position by the action of Parliament. Probably there had been no malfeasance, but the magnitude of the sum lost suggested something very near frauduleucy. '

The Hon. T. Kelly objected to the expenditure of public money on the inquiry suggested. The Hon. McLean thought that if the Bank of New .Zealand were to make a present of .£IOO,OOO to the Colonial Bank shareholders now it would only be doing the right thing. As, however, the whole matter had been investigated by the Supreme Court, what was the good of doing any more in that direction? The Hon. Trask opposed the setting up an inquiry, on the ground that it would involve unnecessary expense. The Hon. Jenkinson's motion was carried by 23 to 6. ;. The Council rose at 4.50 p.m.