1.—6

2

28. The Chairman.] You decline to answer the Premier's question? —Yes, sir. 29. Have you any objection to tell the Committee what was the nature of the oath or declaration you signed ?—I signed a declaration in connection with all the banks I have been in. The bank's officers and every one connected with the bank have to sign a declaration that they will not divulge anything in connection with the bank's accounts. I lay more stress on the fact that I have been appointed to conserve the interests of the shareholders of the bank, and the interests of the colony as well; and it would be against the interests of the shareholders and against the interests of the colony to divulge it, and it is my duty not to divulge it. Mr. Cooper : I have advised the directors and President of the bank to refuse to give any information with regard to the past and present accounts of customers of the bank, and, concerning the past and present accounts, of any portion of the business of the Colonial Bank now being administered by the Bank of New Zealand. They are acting under my advice, and at the proper time and in the proper place I am prepared to give reasons.

Friday, 17th July, 1896. William Watson, President of the Bank of New Zealand, recalled. • 1. The Chairman.] You remember that you are now under the oath you took yesterday when you were before this Committee—you understand that?— Yes. 2. You were asked a question by the Premier as to the writings-off of the Bank of New Zealand in 1888?— Yes. 3. Your answer was this: that the writings-off were, for that year, £218,972? —Yes; I have only got the pounds. 4. The Premier then put a further question, which you declined to answer on account of the declaration you had made to the institution which you were serving ?—Yes ; and on account of the terms of my appointment, and duty to the bank. 5.. The Committee desire to repeat their question and give you an opportunity of giving a deliberate answer, and I have been asked to put this question again to you. lam asked to put the question, " What are the names of the persons and corporations in whose favour such writingsoff took place, and the amount in each case so written off?"—I regret that I have to repeat my former answer. 6. Will you repeat your answer, please, to the question. Your answer, as we have taken it down, is, "Having regard to the terms of my appointment and 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." Is that your answer? —Yes, sir. 7. If you have anything further to say, you can give it?— Further, I said I considered it my duty to the bank and the colony to decline to give such information. 8. Your answer would read as follows : " Having regard to the terms of my appointment and 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" ?—Yes, that is correct. 9. Either as regards the several amounts going to make up the total you have given us, or the names ?—No, I have no objection to give the gross amounts for the year. Ido not wish to add anything to my answer. Shall Ibe wanted again this afternoon? The Chairman : Not to-day. The Premier : It is very likely that when we want you you will be sent for.

Tuesday, 21st July, 1896. William Booth, Director of the Bank of New Zealand, sworn and examined. 1. Hon. Mr. Seddon.] I would ask, Mr. Chairman, that the witness be supplied with the balancesheets, as I intend to ask about the balance-sheet of 1888. There will be no objection to the President of the bank being alongside of him. [To witness.] Mr. Booth, you are a director of the Bank of New Zealand?—l am, Sir. 2. How long have you been a director of that institution ? —Since the end of 1894. 3. You are also an attorney of the Estates Company ? —I am, Sir. 4. How long have you been an attorney of that company ?—Nearly as long. 5. You have the balance-sheet of the Bank of New Zealand for the year 1888 ?—There is a balance-sheet here with that date on it. 6. What was the position of the bank at that time—take it shortly, the assets over liabilities?— I have no knowledge of these balance-sheets. I have never seen them before. 7. Look at the balance-sheets, and tell us from them what is the position of the bank at that date?— The capital here is £1,000,000, and the reserve fund £500,000, with a balance to profit and loss amounting to £60,861 Bs. 3d. 8. What is the value given there of assets over liabilities for that year?— That will be £1,560,861 Bs. 3d. 9. It was that to the good on that date as represented by that balance-sheet ?—Yes. 10. What are the losses given by way of writings-off for that year ?— [Mr. Watson.] I wish to explain that, on the last occasion I had to give evidence, I had given to me by the accountant a list of bad debts, which were put down at £218,972. I find now, on further examination, that the books have been kept in a curious way, and that the amount should be £216,885. That is the writing-off for 1888.