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18th October was surely engrossed from some draft ?—We took counsel with our legal adviser as soon as we were prepared to state the terms upon which the business of the Colonial Bank could be bought by us, and the result of the conference with him was the production of the agreement submitted to Parliament embodying the arrangement we were prepared to make with the Colonial Bank. 203. The solicitor had not the agreement ready before you told him ?—-No. 204. Did you not instruct some document to be drafted ? —Yes. 205. Who did you instruct?— Mr. Button was our adviser in that matter. 206. He drew up an agreement, which you approved of as directors of the Bank of New Zealand?— That is so. 207. And you sent it to the directors of the Colonial Bank for their approval ? —I think they were as much parties to it after we had come to an understanding as we were. I assume that Mr. Button would be the medium of communication with them. 208. Ido not know if there is much good in making a mystery of this, Mr. Booth. It is not usual to have a draft first ?—I am not making the least mystery about the matter. lam simply endeavouring to give the Committee, as clearly as I can, the way in which the agreement came to be made. There was no draft agreement made by either of the banks to my knowledge. We discussed the position during a number of weeks ; we came to an agreement as to what we would do, and we obtained from them the final result as to what they would concede. We then called in the assistance of Mr. Button, who was instructed fully as to the position, and the arrangement the two banks were prepared to make, and the result was the making of an agreement which satisfied us, and which, I believe, when submitted to the Colonial Bank directors, satisfied them, and which was afterwards submitted to Parliament. 209. Now, we have got it that an agreement was drawn up by the solicitor of the Bank of New Zealand and submitted to the directors of the Colonial Bank, is that not so ?—I assume that he submitted it to them; I have no knowledge. 210. Did you see that draft agreement ? —Yes, I saw it. 211: Have you seen the draft since the agreement has been formally drawn up?—l have no distinct recollection of seeing the draft agreement; but the agreement, when I did see it, satisfied me as one of the directors that our instructions had been carried out, and that the position we had taken up was embodied in and secured by the agreement. I was satisfied of that. 212. Possibly you can inquire as to this draft agreement and see whether you can produce it? —I will make inquiries. 213. You know the procedure is that a draft is sent from one side to another, and is returned to the side sending it. You will inquire as to whether this draft is in existence, and whether you can produce it ? —Yes. 214. As to the final agreement signed by you and two other directors of the Bank of New Zealand and three directors of the Colonial Bank, how many original copies were there ?—I do not know. 215. How many did you sign ?—I do not remember whether we signed more than one. 216. You can find that out, too?— Yes. 217. There Was certain to be one. Were the lists " A," " B," " C," and "D " attached to the one you remember signing ? —I believe they were. 218. The Chairman.] The "D " list as well?— Yes. 219. Mr. Hutchison.] And you believe all four lists were attached to the original agreement? —I am not able to say whether they were attached to the agreement. 220. You have just said you believed they were ? —Yes, I think they were. I am quite clear that we knew what they were. 221. With reference to the basis of that agreement arrived at on the 18th October—at any rate, signed on that date —how near before the 18th October was it that all the details were ar ranged ; weeks or days ?—Only a few days. « 222. As you have told us, for the purpose of arriving at a basis for purchase, you took the Colonial Bank to pieces ? —Yes. 223. But you had some statement from them, I suppose? —We had the bank's books. 224. Had you not also a balance-sheet ?—Yes ; we had the balance-sheet. 225. Made up to the 31st August, 1895 ?—I think the latest balance-sheet was of that date. 226. And you took that to pieces, you say ? You saw the balance-sheet ? —We had. seen it. 227. And you know, of course, as a matter of fact, that the " A," "B," " C," and " D " lists totalled exactly the last item in the balance-sheet—namely, that against "Bills discounted, and all other debts due to the bank"? I ask you to look at that balance-sheet. Let us run through the "A " " B," " C," and "D " lists. Mr. Watson has given Parliament a memorandum on the subject. The "A" list is £926,197; "B," £604,695; " C," £98,382; " D," £102,274: total, £1,732,548; which, leaving out shillings and pence, is the amount of the last item on the credit side of that balance-sheet ?—Yes. 228. You had that balance-sheet before you?—No; we had the balance-sheet in our possession. 229. It was available for you?— Yes, that is so. 230. The "A" list amounted to £926,197; what did that represent—it is a gross sum?—lt was the total sum of the accounts placed in that list. 231. We have it also from Mr. Watson that the amount you paid to the Colonial Bank was £133,906?—Ye5. 232. Did that include the amount for landed properties and bank premises : £125,399 ?—lt is not possible to put it so. It did and it did not. That amount of £133,906 is made up of £75,000 for good-will and a balance remaining due to the Colonial Bank after we had completed the arrangement, which included the payment of the book-value for the properties.