XIV

1.—6

The Colonial Bank Purchase. 13. Will you inform the Committee if you have any knowledge of an alleged proposal for amalgamation between the Colonial Bank and the Bank of New Zealand in 1889. If so, please give the Committee any information in your possession on the subject ? 14. When was an amalgamation between the two banks first proposed in 1894. Was it previous to the passing of the Bank Share Guarantee Act ? 15. When were the Ministry, or any member thereof, first informed of the proposed amalgamation ? 16. Trace the history of the negotiations culminating in the amalgamation agreement of the 11th September, 1894. 17. Were you kept informed of the progress of the negotiations in 1895, previous to your visit to Wellington ? 18. Trace the history of the negotiations for amalgamation or purchase in 1895 so far as you are aware of them. 19. Did you assist in the negotiations for amalgamation or purchase in 1895 ? What was the amount estimated by you as provided by the Bank of New Zealand as consideration for the goodwill of the Colonial Bank, taking into account the value of the guarantee given by the Colonial Bank on certain accounts —in particular, one of £20,000, and another of £5,000 —the sum of £75,000, the nominal value paid, and the probable loss on the landed properties and bank premises of the Colonial Bank ? Is this estimate correct ?— £ Cash 75,000 Loss on bank premises ... ... ... ... ... 30,000 105,000 Less account guaranteed ... ... ... ... 25,000 Should it be more or less in each item ? £80,000 Proposed to be asked by Mr. Hutchison. 1. What are the particulars of the efforts made in London in 1893 or 1894 to raise additional capital, and what was the result, and when was it known in the colony that such additional capital could not be raised ? 2. What were the particulars —the whole of them—submitted by you to the Government before the introduction of the Guarantee Bill? 3. Were the terms or effect of the agreement referred to in Part 111. of the terms of proposed amalgamation communicated or in any way brought to the notice of any one or more members of the Government? 4. What were the terms, or, if you cannot give the terms, what was the effect of that agreement, so far as related to Mr. H. Mackenzie, the general manager of the Colonial Bank? 5. What were the arrangements made as to the investment of part of " the second " million guaranteed by the Act of 1894 in the purchase of New Zealand Consols ?

No. 1 agreed to. No. 2 amended by inserting " subsection 3 of section 5," after " was," line 2. Nos. 1 to 6, inclusive, agreed to. No. 7 agreed to after striking out " those of," line 3, and inserting "of the 25th and 29th June, and of the 4th July," after "letters," line 4, and striking out the remaining words of the clause. Nos. 8, 9, 10, and 11 agreed to. No. 12 added to clause 11. Clauses 13 to 18 agreed to after altering the numbers to 12 to 17. No. 19 altered to No. 18. Resolved, on the motion of Mr. G. Hutchison, to strike out " as " and insert " to be," line 2. Hon. Mr. Seddon moved to strike out "provided," line 2, and insert "given." And the question being put, " That the word ' provided ' stand," a division was called for, and the names were taken down as follow :— Ayes, 3. —Mr. G. Hutchison, Mr. Maslin, Mr. Montgomery. Noes, 5. —Mr. Graham, Mr. Guinness, Hon. Mr. J. McKenzie, Hon. Mr. Seddon, Hon. Major Steward. So it passed in the negative. The word " provided " was struck out, and " given " inserted in lieu thereof. Hon. Mr. Seddon moved to strike out the words " taking into account the value of the," line 3, and insert "were you aware of any guarantee given by the Colonial Bank of £25,000; and, if so, was such" in lieu thereof. And the question being put, "That the words proposed to be struck out stand part of the question," a division was called for, and the names were taken down as follow:— Ayes, 4.—Mr. Hutchison, Mr. Maslin, Mr. Montgomery, Mr. Tanner. Noes, s.—Mr. Graham, Mr. Guinness, Hon. Mr. McKenzie, Hon. Mr. Seddon, Hon. Major Steward.