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4. That the balance-sheets from 1887 to 1890 disclose losses during these periods alone involving no less a sum than £56,246 os. 7d., whilst at the same time the manager and delegates from the board of directors were calling meetings of shareholders throughout the colony, and assuring them of the soundness of the business, and the strong position the association was attaining. 5. That the manager's published statement, in compliance with the provisions of the Joint Stock Companies Act, dated the Ist January, 1890, sets forth liabilities at £23,522 Bs. lid, with assets at £27,497 Bs. 10d., or a surplus of assets over liabilities of £3,974 19s. lid. 6. That the association was placed in liquidation early in 1891, and at the general meeting of shareholders, held on the 2nd March of that year, the chairman of directors stated that " it would cost about 2s. or 2s. 3d. per share to finally wind up the affairs." 7. That a liquidation call of 2s. 6d. per share was shortly afterwards made by the liquidator, payable in sixpenny instalments at intervals of three months. A further call was made a few months ago of 2s. per share, payable in one sum, or a total of 4s. 6d. per share for liquidation purposes, thus far amounting to no less a sum than £32,840 25., and still the business of the association is not wound up. 8. That your petitioners discovered, quite accidentally, in the year 1890 or thereabouts, that the directors had been for six and a half years illegally drawing increased fees, amounting in the aggregate to £2,000, in contravention of the articles of association. 9. That your petitioners also discovered that the directors illegally departed from the prospectus of the association in not confining the Fire operations of the business to the Colony of New Zealand, as set forth therein. 10. That your petitioners have further discovered that the directors have violated the conditions of the memorandum of association of the said company in acquiring, without the consent or knowledge of the shareholders, the following public companies, namely: The Australian Mercantile Union Insurance Company, The Hanseatic Insurance Company, The Hamburg-Magdeburg Insurance Company, and The Accident Indemnity Company, of Dunedin. 11. That no report (printed or otherwise) has ever been made to shareholders on the acquisition of these properties, nor is it set forth in any balance-sheet what sum of money was paid, or what consideration received, in connection with these transactions. 12. That your petitioners, in view of these irregularities, are of opinion that the administration of the affairs of the association have been of a most reckless character, fraught with the gravest considerations, and a scandal to commercial enterprise. 13. That your petitioners have from time to time most strenuously attempted to get qualified reports and investigations effected, and have used every legal means for the purpose, but have always failed in consequence of frivolous and technical objections being raised by the directors and their legal advisers, such as setting aside proxies at meetings, holding scrutinies of votes in private, and refusing to supply a schedule of votes when result declared. 14. That the balance-sheets have always contained the most meagre information, condensed into the fewest possible lines, rendering it practically impossible for any shareholder to arrive, even approximately, at a true state of affairs, and, judging by present disastrous knowledge and experience, those documents were as misleading and as valueless in character as the reports that accompanied them were unreliable. 15. That your petitioners have been put to considerable expense in their endeavours to unravel the financial mystery of such excessive and disastrous losses in connection with the Equitable Insurance Association of New Zealand; and that they strongly protested against any liquidator being appointed to wind up before inspectors had been appointed to report on the condition of the affairs of the company. 16. That, in view of the ascertained illegal acts committed by the directors of the said association, and the large amount of money lost in so short a period —losses that hitherto have no parallel in the history of any Eire and Marine Insurance business in the colony—and to the exceptional circumstances under which your petitioners have been kept in a state of ignorance with regard to the nature of the losses and the extent of their responsibilities, your petitioners most earnestly and respectfully ask your Honourable House to order a special audit and investigation of the affairs of the said Equitable Insurance Association of New Zealand to be forthwith undertaken, or otherwise pass an Act of the General Assembly for the purpose. And your petitioners, as in duty bound, will ever pray. James Holmes, And fifty-four others.