LXIII

1.—6

The Purchase of the Colonial Bank. Resolved, on the motion of Mr. Guinness, to insert " the General Manager of the" before the word " National," line 3 ; and striking out all the words after the word " favourably " to the end of the sentence and inserting the word "entertained" in lieu thereof; and striking out the word " take," line 2, page 10, and inserting the word "appoint " in lieu thereof; and striking out the word " to" before the word " liquidate "; and striking out the last word of the paragraph, " letter," and inserting "memorandum." Mr. Montgomery moved to strike out, after the word " conditions," at the end of the page," all the remaining words of the paragraph, with the view of inserting the following words in lieu thereof : " which are set out in the evidence given by the Hon. J. G. Ward." Hon. Mr. Seddon moved, by way of amendment, to strike out all the words after " Government," and to insert in lieu thereof " and the following letter was forwarded by the Hon. J. G. Ward to Mr. John Murray and the Hon. George McLean, viz. : — " The Hon. the Colonial Treasurer to John Murray, Pjsq., and the Hon. George McLean, Wellington. " Gentlemen, — Colonial Treasurer's Office, Wellington, 22nd September, 1894. " I have the honour to acknowledge the receeipt of your joint letter of the 11th instant, covering proposals for an amalgamation between the Bank of New Zealand and the Colonial Bank. " In reply, I have to state that the matter has received the careful consideration of the Government. " Without in any way committing the Government to any fixed course or approval of the proposals, it will be necessary— " 1. If any legislation is undertaken by the Government, that it shall be of a permissive character, to enable the Government to be satisfied, before assenting to an amalgamation, that the general interests of the colony are conserved and protected. " 2. That, in addition to the scrutiny which is proposed in the memorandum of agreement, the Government to appoint a special representative or representatives, independent of either bank, to examine and report to the Government on the various accounts and assets proposed to be dealt with. "3. The shareholders of each bank to be responsible for and to make good all losses on existing business that is not passed by the colony's valuers. " 4. That, upon the expiration of ten years, the profits of the combined bank shall still continue to be paid to the Estates Company, until any deficit in the winding-up of the Estates Company is liquidated. The Government lien upon the interests of the shareholders in the Bank of New Zealand to be continuous until all liability to the colony is at end. " 5. The Government to nominate a chairman and two directors of the Estates Company, and the shareholders of the Bank of New Zealand to nominate two directors to the same, the said Board to have full control over the uncalled capital of £1,500,000 of the Bank of New Zealand shareholders. "6. In addition to the appointment of a president and auditor to the Bank of New Zealand, the Government to appoint one director to the combined bank. " I should like to have your reply to the foregoing before noon on Monday. The Government will then further consider the matter, and decide what course they deem it desirable to take. " I have, &c, "J. G. Ward, " Colonial Treasurer. "John Murray, Esq., and the Hon. George McLean, Wellington." Upon the question being put, " That the words proposed by Mr. Montgomery to be struck out be retained," 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. And so it passed in the Negative. Hon. Mr. Seddon's amendment was then put, and it was resolved in the affirmative. Resolved, on the motion of Hon. Mr. Seddon, That the letter be inserted. Resolved, on the motion of Hon. Mr. Seddon, to insert, at the commencement of page 11, the following words : " the banks declined to acquiese in these conditions, and " ; and to strike out, in line 1, the words " this agreement," and to insert, before the word " nothing," the words " during the session of 1894," and to insert, after the word "done," the following: " to give effect to the proposals for amalgamation submitted by Messrs. Murray and McLean." Paragraphs 2 and 3 agreed to. On motion of Mr. Guinness, paragraph 4 amended by striking out all the words after " evidence " to the end of the line, agreed to. Paragraphs 5, 6, 7, and 8 agreed to. Paragraph 9. Resolved, on the motion of Mr. Guinness, to strike out the words "although not expressly stated," and insert "from the evidence taken." On the motion of Mr. Montgomery, Resolved, to strike out "is thereby relinquished," and insert "remains as security for the other accounts in such list," and also to strike out the words " failing arrangements to the contrary," and inserting "in the absence of any arrangement as to any extension of time," and to strike out "must take over all," and insert "may proceed to liquidate all or any of," and striking out all the words of the sentence after " list." Paragraph, as amended, agreed to.