1.—6

MINUTES OF EVIDENCE.

Thursday, 16th July, 1896.—(John Graham, Esq., Chairman.) William Watson, President of the Bank of New Zealand, sworn and examined. Formal question (and answer) put to Mr. Watson before being sworn : — The Chairman.'] The Bank Committee have asked that you should be present for the purpose of giving evidence and information such as is required by them. That is their object in asking you to be present. A resolution has been passed that all evidence shall be given either on oath or affirmation. I have to ask you whether you are willing to give such evidence as is required ?—Yes, sir, quite willing. [The oath was then administered to witness.] 1. The Chairman.] Are you or the institution you represent represented by counsel, or do you wish to be ?—I wish the bank to be represented by counsel. 2. Have you your counsel here? —Yes; Mr. Theo. Cooper represents the bank. Mr. Cooper: lam here on behalf of the Bank of New Zealand —representing the bank. 3. The Chairman (to Mr. Watson)]. Have you all the documents with you, asked of you yesterday by the Committee ? —The time has been very short, as I only got the notice at 4 o'clock, and a great deal is required. I brought everything I could in the time allowed me. 4. State what documents you do produce? —I have got the balance-sheets of the bank from the Ist January, 1888, up to the latest laid before the House, for the 31st March, 1896. I would like to state in connection with these balance-sheets that it was not always the practice to issue half-yearly balance-sheets, especially since the bank went Home to London, and it would be impossible now to get these balance-sheets. They never were in the colony. The colonial ones went Home to London to the head office, and in the colony we never knew what they did in London,'and-never saw the half-yearly balance-sheets; but the yearly balance-sheets are here, which, I think, should be all the Committee requires. 5. How many half-yearly balance-sheets will be short? You have a considerable portion?— I have got the balance-sheet for the 31st March, 1888, including that from the London office to 31st January. The next is the 31st July, 1888. 6. How does that come to be the next half-yearly balance—four months afterwards ? —lt is the aggregate balance-sheet to the 29th September, 1888, including the London office. The next is the 30th March, 1889, including the London office to 31st January, 1889. 7. Have you got that of September, 1889 ?—Yes. 8. And March, 1890?— Yes. The next I have is 31st March, 1891. The office had gone over in 1891. 9. You have not got that of September?—No; the next is the 31st March, 1892. 10. And the next ?—March, 1893; March, 1894 ; March, 1895 ; and March, 1896. 11. Then, they are half-yearly from 1888 to 1890, and yearly balance-sheets up to the present date ?—Yes. [Exhibit No. 1 handed in by Mr. Watson.] 12. Hon. Mr. Seddon.] What does the first balance-sheet, of 1888, disclose?—l should like you to understand that lam not responsible for the correctness of all these—l have had to get them from the officers; but I believe they are correct. 13. You have the first balance-sheet in your hand?— Yes. 14. Who was the chairman of directors, and who the directors, at the time of that balancesheet ? —The balance-sheet is only signed by the auditors. 15. Who were the auditors ? —G. P. Pearce and J. L. Wilson. The directors were —I am speaking from information given to me at the bank—Messrs. J. Williamson, G. B. Owen, J. M. Clark, Sir Frederick Whitaker, W. I. Taylor, W. S. Wilson, and Samuel Browning. 16. Who was the general manager?— Mr. D. L. Murdock. 17. Who were the inspectors ?—I have not that information here, but Mr. Murray was chief inspector. 18. Who else ?—There were several assistant inspectors. 19. Will you get the names for the Committee by to-morrow?— Yes. 20. What is the position of the bank as disclosed by the balance-sheet at that date?— The assets amounted to £14,520,447 Bs. 2d., the paid-up capital amounted to £1,000,000, and the Reserve Fund, £500,000. 21. What is the total liability?— Apart from capital, reserve fund, and undivided profits, £12,959,585 19s. lid. 22. How much assets over liabilities?— The assets over liabilities amounted to £1,000,000 of capital, and £500,000 Reserve Fund, and there was £60,861 Bs. 3d. to credit of Profit and Loss Account. 23. What is the t0ta1?—£1,560,861 Bs. 3d.' 24. What is the date of that ?—3lst March, 1888, including London office at 31st January. 25. Are there any writings-off at that time, and what amount? —There was £218,972 written off in 1888. 26. That was at 31st March, or during the year ? —During the year. Subsequent to the balance-sheet, I think. 27. What are the amounts and the names of the persons or corporations for whom these writings-off were done ? —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 to the bank and the colony to decline to give such information. *I—l. 6.