1.—6

XIX

Graves, Chisholm, Buller; the President and the Auditor of the Bank of New Zealand : also the officer appointed by the New Zealand Estates Company to visit and report upon the properties of Walter Guthrie and Co., the New Zealand Pine Company, or any of the other companies connected with them. 10. Copy of Walter Guthrie's, Sir Robert Stout's, or any other director's account with any of the above-named companies, showing what amounts were overdrawn at various times, and nature of security, if any, held against same. 11. The return of all timber areas, with the estimated amount of timber available, held by any of the foregoing companies : — (a.) From the Crown ; (b.) From private individuals ; (c.) From companies or corporations ; and a certificate of their value from some responsible Government officer, with amounts already paid, and liabilities on same before timber can be removed. 12. That two certificated accountants examine and furnish report upon each of the balancesheets of any of the above firms or companies since 1888. 13. That the Bank of New Zealand furnish a return showing the amounts written off the indebtedness of any of the above firms or companies prior to 1894, and since 1894, showing such amounts separately. 14. All original papers and documents submitted to the bank by any of the directors of any of the above firms or companies, or any person connected with same. Resolved, on the motion of Mr. G. Hutchison, That all witnesses shall be examined on oath or affirmation. Mr. Theo. Cooper stated he was present as counsel on behalf of the Bank of New Zealand. Mr. William Watson, President of the Bank of New Zealand, was sworn and gave evidence, and the same was taken down by the reporter. During the examination of the witness, in reply to a question of the Hon. Mr. Seddon, Mr. Watson said, " Having regard to the terms of my appointment, and the declaration of secrecy, I must decline to give any information regarding individual accounts whatever, either past or present, and I am so acting according to the advice of the bank's counsel." Resolved, on the motion of the Hon. Mr. Seddon, That the Committee do now deliberate. The strangers having withdrawn, the Committee deliberated in reference to Mr. Watson's refusal to answer the question asked of him, and decided on a course of procedure. Upon strangers being readmitted, Mr. Watson was asked to attend to-morrow morning at 11 o'clock a.m., and the Committee then adjourned till that hour.

Friday, 17th June, 1896. Present: Mr. Graham (Chairman), Mr. Guinness, Mr. Hutchison, Mr. Maslin, Mr. McGowan, Hon. Mr. McKenzie, Mr. Montgomery, Hon. Mr. Seddon, Hon. Major Steward, Mr. Tanner. The minutes of the previous meeting having been read, and amended by including therein copies of the notices of motion given by Mr. Guinness, were then confirmed. Resolved, on the motion of Mr. Guinness, That the Committee do now deliberate. Strangers having withdrawn, the Chairman stated he had consulted Mr. Speaker as to the refusal of Mr. Watson to answer certain questions. The Speaker had informed him that the refusal of the witness to answer questions was quite indefensible, and no declaration of secrecy conferred upon him the privilege of refusing to answer questions, and that. the matter should be, in his opinion, reported to the House. Mr. W. S. Reid, Solicitor-General, attended, and made a statement in reference to the question of privilege. Mr. Reid having withdrawn, Mr. Montgomery proposed, That the Committee continue their inquiry with other witnesses than Mr. Watson. Upon the question being put, a division was called for, and the names were taken down as follow :— Ayes, 3. —Mr Hutchison, Mr. Maslin, Mr. Montgomery. Noes, 7. —Mr. Graham, Mr. Guinness, Mr. McGowan, Hon. Mr. McKenzie, Hon. Mr. Seddon, Hon. Major Steward, Mr. Tanner. So it passed in the negative. Mr. Tanner proposed —(1) That Mr. Watson be recalled and asked what amounts were written off in successive years from 1888 to the present time ; and (2) afterwards asked as to the accounts which were benefited or liquidated by such writing-off. After discussion, motion withdrawn. Resolved, on the motion of the Hon. Mr. Seddon, That Mr. Watson, President of the Bank of New Zealand, having refused to answer a certain question put by the Hon. the Premier yesterday, in reference to the writings-off of the accounts of persons and corporations, Mr. Watson be recalled and asked by the Chairman the question as put by the Premier yesterday. The strangers having been readmitted, Mr Watson attended, and also Mr. Theo. Cooper. The Chairman asked Mr. Watson the following question: " What are the names of the persons and corporations in whose favour such writings-off took place, and the amount in each case so written-off? " Mr. Watson replied, " Having regard to the terms of my appointment, and the declaration of secrecy, I must decline to give any information regarding individual accounts whatever, either past or present; and lam acting according to the advice of the bank's counsel. Further, it is my duty