LEAvE OF ABSENCE

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

LEAvE OF ABSENCE

Further leave of absence for one month was granted to Mr Witheford on account of urgent private business. Mr Massey said there was an impression that Mr Witheford was not coming back to the colony, and if that was so the House ought to know it. Mr Seddon stated that Mr Witheford liad not yet left London, the cause of the delay being the mission on which he was engaged, ' viz., the promotion of the iron and steel industry of tlie colony. He (Mr Seddon) took it that the prospects were encouraging, which accounted for Mr. Witheford's continued absence. "But," added the Premier, "he ia leaving and is coming back to the colony." THE LAST LOAN. Mr Seddon laid on the table a return showing the cost of raising the last loan. It was, he said-, what he had already told the House, viz., £25,019. Mr. Massey : ■ Not including prepaid interest. * < Mr Seddon: It includes everythng. COLONIAL BANK." The Public Petitions Committee roconimended an investigation' asked for by the Colonial Bank shareholders concerning the loss of .£355,000 of the shareholders' capital be made. On the motion that the report of -the committee be referred to the Government for favourable consideration, Mr Hcrdman pointed out that according to its last bal-ance-sheet the Colonial Bank's funds amounted to .£465,000 when liquidation was undertaken. The liquidation yielded only .£IIO,OOO to the shareholders. Where, he asked, had the balance of the money gone to? They had a right to assume one of two things, either that the balancesheet which was published by the directors of the Colonial Bank prior to liquidation was untrue and misleading and a complete misrepresentation, or that the liquidators in winding up the institution had been guilty of gross and culpable negligcucc. He contended that in the interests of public morality it was clearly the duty of the Government to institute a searching inquiry into the whole matter. Mr Seddon said Mr Herdman ought to have stated what occurred between the Colonial Bank and the Bank of New Zealand That would have shown the House how the ,£400,000 disappeared. He did not hesitate to say that a goodr deal of the capital of the Colonial Bank' disappeared in that arrangement, which favoured the Bank of New Zealand, and was a serious loss to the Colonial Bank/;shareholdcrs. He went further, and said that if m respect to a large number of the accounts the directors of the Bank of New Zealand had been dealing with their own capital they would have dealt with it very differently. .They were liberal in the extreme in dealing with some of those accounts. He thought he was right in saying that had the Colonial Bank not made the agreement it did with the Bank of Now Zealand and«carricd on its own business, there would have been no necessity for tho investigation asked for, and this great loss of capital would not have taken place. The Government would look carefully into the whole matter, but after the steps that had been taken, what, he asked, could the Government do? The Court had dissolved the Bank and the only thing left was the records, which could not resuscitate the Bank, and the Government was powerless. It would be a waste of time to go through the accounts unless they had something tangible to go upon. So far the shareholders had not shown good grounds for an inquiry. In his opinion, the Court had done its duty faithfully, and he believed the capital disap- } peared when tho agreement was made between the Bank of New Zealand and tho Colonial Bank- If any further representations wore made they would be considered by the Government, but seeing that the i subject had been dealt with by the Supreme Court, he did not think there was any need for inquiry. Mr Taylor pointed out that in a fow weeks the books of the Colonial Bank would be destroyed, and every chance of solving the disappearance of the money would have gone. It was quite conceivable that if the truth could be elicited the shareholders would have an action against somebody, and perhaps have some of the money restored to them. Mr Wilford said what they wanted to know was whether the .£350,000 had been lost by the directors or by the liquidators. Mr Duthie moved' to add to the report : "That meanwhile the House desires the Government to take steps to prevent the destruction of the Colonial Bank's book 3 and papers, with a view to having a thorough investigation and inquiry into the liquidation of the Bank before November 1 next."

Mr Seddon said he objected to the Government being asked ' to prevent the destruction of the books and papers without any evidence toeing given after, the Supreme Court had ordered the destruction of them. The House should hesitate before it passed a resolution of that sort, and should only do so if it was shown that some reason existed for upsetting the decision of the Supreme Court. Mr Seddon added that he regarded the amendment as a deliberate attempt to put the Government in a falac position. Several other members took part in the discussion, which was interrupted by the 5.30 adjournment. COMMITTEE OF SUPPLY. The House resumed at 7.30, and went into Committee, of Supply for the further consideration of the Estimates, the Customs Department, total vote .£46,899, being taken. Mr. Massey and others pointed out that the salary of the head of this Department was .£7OO, whole one of his subordinates, the chief Customs expert, received .£BOO, and said this was an anomaly that should not be allowed to continue. Mr T. Mackenzie moved that the item "Secretary and Inspectors of Customs, i>700," be reduced by £2, as an indication to the Government that that official's salary should at least equal that of any of his subordinates. Mr Seddon said the salary of the expert had been at that figure for many years. If the salary of the Secretary were increased there would be an outcry for an all-round increase. Mr MacKenzie's motion was lost on the voices. Mr Ell moved to reduce the. salary of the Chief Customs Expert (^800) by .£l5O. on the ground that the pay was too great for the work.

This was lost by 34 to 15. The total vote for Customs officers and services was agreed to tmaltered, and the vote for miscellaneous services was' postponed pending presentation to the House of the annual report on the Cook and other islands. Marine Department, ,£54,446 — Mr Laurenson complained that sufficient encouragement was not given to the acclimatisation of sea fish. If properly encouraged a great industry waff at nand, which would be of great benefit to the colony. Mr James urged that the Government should go thoroughly into the question of giving ample assistance to the fish hatcheries, and complained that the hatchery at Portobello was being starved. Mr Hall- Jones denied that thn hatcheries were being starved, and added that a great deal was done every year in the way of importing ova.

Several members urged that the Government should systematically and energetically carry on trawling operations for the purpose of discovering fresh fishing grounds around our coasts. "A complaint is being made that the work of the Department in this direction in the past was carried out imperfectly and incompletely.

NOTICE) OF MOTION.

Mr Massey to-day gave notice to move the following amendment to Mr Seddon's proposed motion on the land question : "That the failure of the Government to formulate a land policy even- with the report of the Land Commission to assist them, is an evasion of constitutional responsibility. This House, therefore, urges that Ministers should without delay bring down a Bill embodying their land policy, which* Bill should include special provision, for extending to Crown tenants holding land under the lease in perpetuity the right to acquire the freehold, but with sufficient safeguards to prevent the ag--gregation of large estates, and should also encourage settlement by providing better conditions, and a more secure tenure for all settlers upon the lands of the Crown."

WELLINGTON, August 2<3. »

After the Telegraph Office closed, the Education Department estimates ' were considered. A motion* by Mr Wilford that the to.tal vote be reduced by ,£1 as» an indication that the time had arrived wheY the Government shouldl undertake the printing and publishing of uniform school boftks and supply them to parents » at- cost" price was lost by 26 to 24: After a lengthy discussion the total votepassed unaltered. The House rose at 3. 45 a.m.