OPENING OF THE PROVINCIAL COUNCIL OF HAWKE'S BAY.

Hawke's Bay Times, Volume 13, Issue 680, 10 May 1869, Page 3

OPENING OF THE PROVINCIAL COUNCIL OF HAWKE'S BAY.

THIRTEENTH SESSION.

THURSDAY, MAY 6, 1869.

The thirteenth session of the Provincial Council of Hawke's Bay was opened for the despatch of business on the afternoon of Thursday last, 6th May, -the Speaker (H. S. Tiffen, Esq.), taking the chair at three o'clock. The following members were present :—Messrs. J. A'Deane, J. Buchanan, E. A. Oarlyon, P. Dolbel, B. A. Ferard, A. Kennedy, S. Locke, C. Lambert, D. M'Lean, J. Parsons, J. Rhodes, F. Sutton, T. Tanner, and J. Weston. Absent:—iM essrs. J. T). Ormond, G-. S. Whit more, and J. Wood. The Clerk read the proclamation convening the Council. The Speaker having read the prayers cnstomary on the opening of a session of the Council, His Honor the Superintendent delivered the following OPENING ADDRESS. Mr Speaker and Gentlemen or the Provincial Council, — I deeply regret having occasion to refer to the sad loss of life and property that lias taken place since our last meeting. The recent melancholy tragedy at Mohaka, where seven of our fellowcolonists and 43 friendly natives lost their lives, lias added another to the already long train of disasters which have occurred within the past year. The sudden successiou of such calamities—first at Poverty Bay on the East Coast, at the White Cliffs on the West, and again at the settlements of the Day of Plenty and Mohaka, has painfully verified the accuracy of information supplied to the Government j as to the critical stale of 'he country, and the danger of relying on the forbearance of a treacherous enemy. The recent devastations by Te Kooti, and the absence until too late, or after some disaster, of ordinary precautions by the Colonial Government, for the safety of life and repression of outrage, has greatly weakened the confidence of both races, and seriously affected the prosperity of this province. The inhabitants of this district, always conspicuous for the cheerful readiness with which they volunteer for any necessary duty, deserve much credit for the sacrifices they have lately been called upon to make, in holding a military post at a distance from their homes, even while entertaining little hope that such services would be attended with beneficial results. I should not omit to notice that the natives of this province have also given many proofs of their loyalty and zeal. In the field they have taken an active part against their disaffected countrymen, and, aided by the warlike Ngatiporou, gained the first important successes at Poverty Bay. The spirited manner in which those of Mohaka, including women and children, defended themselves against overwhelming numbers, in the absence of most of their fighting men, reflects the highest credit upon their bravery and conduct. Notwithstanding the various distracting causes by which this province has been visited, it is gratifying to notice the progress of agricultural setlement on the fertile Ahuriri plains, and to witness the number of comfortable homesteads that are springing up in various directions—affording proof that the steady perseverance and economy of the the people of Hawke's Bay, would enable them to overcome every difficulty, could they be assured of the restoration and permanent establishment of peace.

The purchase from the natives of the Hikutoto block, at West Clive, has been effected, and Mr Locke is engaged in negociating the purchase of a large tract of country in the Forty Mile Bush, which is well adapted, from its rich soil and plentiful supply of timber, for agricultural purposes.

Considerable improvements have been made on all the principal lines of road, which arc at present in a thorough state of repair, requiring only moderate provision for future maintenance. The surveys of roads in conformity with the Crown Grants Acts, 18G6, are nearly completed. During the last session of the General Assembly, an Act was passed to apportion the debt between the Provinces of Wellington and Hawke's Bay. Your member, J. D. Ormond, Esq., has been appointed arbitrator under that Act, on behalf of this Province, a duty for which he is singularly qualified, by his intimate knowledge of the subject. I had hoped ere this that an appeal to the country would have been made to determine, among other matters, the form of Government most desired by the people, and to settle, on a more satisfactory basis, the relations between the General and Provincial Governments. In the absence of such an appeal it is not likely that any great change can take place, but whatever phase local institutions may assume, it cannot be denied that much has been accomplished in the shape of permanent public works and improvements, and in promoting and extending settlement, throughout the country.

The report of the Commissioners on the subject of education will be laid upon the table; but I regret that, owing to a diversity of opinion among the members of the Commission, no Bill has yet been prepared. I trust, however, that during this session resolutions will be brought forward by the Board on which a satisfactory Bill may ba founded. The subjects to which I shall invite your attention during the present session of Council will be limited to the consideration of the financial condiProvince and to the passing of a few necessary Bills. Drafts of those Bills, with a statement of receipts and expenditure, will be laid before you. The visit of his Royal Highness the Bute of Edinburgh to this colony, and the gratification thereby afforded to the people generally, is doubtless fully shared in by you. It is matter of regret that the present unhappy state of native affairs should prevent his Royal Highness from visiting the interior of the Northern Island, and of becoming personally acquainted with some of the most interesting portions of New Zealand. I submit that a congratulatory address from this Council should be forwarded to his Royal Highness. I take this opportunity of acknowledging my deep obligations to the people of Hawke's Bay, for the cordial cooperation I have invariably received, and which has recently been so unmistakably manifested by all classes of the community during a period of considerable trial and difficulty. I now declare this council open for the transaction of public business. On the motion of Mr Locke the address was ordered to be printed, and the Council adjourned till Friday, at 3 p.m.

FEIDAY, MAY 7, 1869.

The Council met at 3 p.m. Present —The Speaker and all the members except Messrs. Wood and Wliitmore. The minutes of the previous daywere read and confirmed. PAPERS. His Honor laid on the table the Report of the Education Commission, and correspondence relative to the Telegraph. PETITIONS. Mr Rhodes presented a petition from Mr Edward Boddington, which was read. It prayed that certain proceedings pending against the petitioner in the Supreme Court might be slaved ; and stated that he had been unable to meet his engagements with the Government through having tendered for the toll-gate at too high a rate—his estimate of the annual receipts having been based on -chose for the busiest months of the year, and that the gross receipts had fallen considerably short of the amount for which he had tendered. Mr Rhodes moved that it be received. Mr Carlyon said that if such petitions were admitted there would be no end to them. He did not know whether the member for Clive introduced the petition as a member of the Government or as a private member ; bat the Council should set its face against such tilings. The petition was virtually one asking for a sum of money; and to pray the Council to stay proceedings in the Supreme Court was a gross interference with the legal tribunals of the Colony. He would move as an amendment that the petition be not received. Lieut.-Colonel Lambert seconded the amendment. Mr Rhodes !?aid it was as a piivate member that he brought this forward, as a petition from one of his constituents. As for the statements in the petition, he could corroborate them, having examined the books. The tender had been based on an erroneous estimate, and the Provincial Engineer had guaranteed a larger amount than had been taken. [Mr Carlyon : Let him proceed against the Provincial Engineer, then, on his guarantee. ( Laugh ler.)] There was nothing like any application for money —the petitioner simply wished to be acquitted hy the Council of any act of dishonesty. He (Mr Rhodes) had known Mr Boddington for 26 years, part of which time he was cashier of a Bank, and believed that there was not a more honest man in that room. Mr Ferard thought the question of the reception of the petition should be met by either a direct affirmative or negative; not by an amendment. The Speaker said the member for the town was correct. Lieut. Colonel Lambert said that if a man failed to perform his contract with the Government it was no reason why he should be released

from it. The sureties should have made themselves acquainted with the probable receipts. The motion, "That the petition be received," was then put, and carried on a division—Ayes, 10; Noes, 5. Mr Rhodes produced two other petitions, —one from Mr R. Jeffares, publican, praying for a remission of his license, as there was no longer any business at Olive; and the other from 47 inhabitants of Olive, praying for a grant of land for a school. Both of these were informal, and could not come before the Council, being addressed to the Superintendent—to whom ]Vlr Carlyon suggested they should be at once handed over, SHEEP AND SCAB CONSOLIDATION. Mr M'Lean moved— For leave to bring in a Sheep and Scab Consolidation Bill. Leave was granted, and the Bill was brought in, read a first time, and ordered to be printed. Standing order No. 27 being then suspenMr M'Lean moved— That a Select Committee be appointed to report upon and make such suggestions on the Sheep and Scab Consolidation Act as may be deemed necessary ; such Committee to consist of Messrs Carlyon Rhodes, Rhodes, Tiffen, and A'Deane. LAND GRANT TO MR W. R. RUSSELL. Mr Carlyon obtained leave to defer fche following motion to next sitting day:— That this Council will express their opinion, iu the form of a resolution, as to the policy of the late Act passed by the General Assembly, granting 800 acres of land to William Russell Russell, Esq. On the motion of Mr Kennedy the Council then adjourned until 3 p.m. to-morrow (Tuesday.)

NOTICES OF MOTION. TUESDAY, 11th MAY. Mr M'Lean to move— That a select committee be appointed to examine into and report upon the state of the Provincial finances ; and, further, to report what departmental or other changes can be effected to reduce the Provincial expenditure. Such committee to consist of Messrs. Tanner, A'Deane, Buchanan, Parsons, Locke, Ferard, Qnnond, Carlyon, and the mover. Mr Wood to move, in Committee of Supply— That this Committee, acknowledging the great boon conferred upon the Town of Napier, and upon all travellers along the main road, through the indefatigable perseverance of Mr John Garry, in obtaining a supply of water in the t face of numerous difficulties, is of opinion that lie should be reimbursed from tire public funds (whether from general or toll-gate revenue) the actual balance of outlay, amounting to £BO, and that the Superintendent be recmested accordingly to put this sum on the estimates. Mr Rhodes to move— That the petition ot Edward Boddington be considered.

THE OVEKEND & GUKNEY CASE. COMMITTAL OF THE'DIRECTORS. (From Morgan's British Trade Journal, February,) The first stage of inquiry into the charges brought against the directors of Overend, Gurney, & Co. has been brought to a close. After the termination of the case for the prosecution, and after hearing the addresses of counsel for the defence, the Lord Mayor stated that he and his colleague Sir Thomas Gabriel, would take time for consideration, and would give their decision on January 27. The interest excited by this case in the public mind has been intense and absorbing; and long before the hour named by the Lord Mayor, the Court and its approaches were crammed by a crowd of people, evidently belonging to a class very different from that which is usually found in such a place. After the formal reading of the depositions, the Lord Mayor, amidst breathless silence in the crowded court, announced that he had come to the conclusion that evidence had been given sufficient to warrant him in sending all the defendants for trial upon the charges preferred against them. The interest which the case has produced may be judged of by the fact that when the decision of the Lord Mayor was made known the court itself rung with cheers, which were with difficulty suppressed, and which were taken up outside by the eager crowd that filled the large and usually empty space in front of Guildhall,

The Lord Mayor intimated that he was prepared to admit the directors to » bail, each of them in £IO,OOO, and two sureties of £5,000 each. The directors entered into the requisite recognizances, the sureties being—for Mr John Henry Gurney, Mr John Gurney Hoare and Mr Charles Thomas Lucas; for Mr Edmund Gurney, Mr George Moore and Mr Henry Edmund Buxton ; for Mr Birkbeck, Sir John Lubbock and Mr Joseph Hoare; for Mr Barclay. Mr K. C. L. Bevan and Mr Joseph Gurney Barclay; for Mr Rennie, Mr William Burnley HuraeandMrHenryM'Chlery; and for Mr Gordon, Mr Kirkman Daniel Hodgson and Mr Charles Oppenheim. The aggregate bail tendered and accepted amounted to the large sum of £120,000. The Economist says:— " From the moment that Sergeant Ballantine concluded his speech it was certain that his clients would be committed for trial. If they had no more conclusive contrary arguments to produce than that, a prima 1 facie case was indisputably established. And in tbe interest of the public (whatever may be the final result) this committal was much to be desired. For many months past English commerce has been in a very peculiar state ; credit has been broken, vast numbers deceived, a considerable number ruined by that decep tion ; yet no one has been punished—no one has even been prosecuted. Men whom everyone knew to be guilty of gross frauds were living at large and in plenty. Foreigners said —' You may commit any pecuniary wrong in England, except the single one the English law calls theft, but you will not be punished. It is very strange, but all England is strange.' Now, the ruinersof credit, the main causers af the panic of 1860, have assuredly been punished, —whatever be tbe ultimate event —to have been committed at the Old Bailey is to the Gurneys and their co directors a penalty of the first magnitude. To men who had been bred like them, who lived as they had, and who were respected as they were, the mere humiliation is woise than penal servitude. A common malefactor would not feel imprisonment a tenth as much. *' Though we are glad the directors were committed, we adhere to the more moderate and balanced judgment we have before expressed of their conduct. We quite acquit them of evil design; we are confident they all thought they were fonnding a good company. We do not think they intended that shareholders in the company should ever lose a shilling. But they concealed from these shareholders facts which would have warned tbem never to take a share, which would have prevented the formation of the Company, which were the most important facts in the matter. Is this a penal offence or is it not ? Such is the question to be decided when the case is tried. " How the new directors could think the business likely to pay is increasingly strange —the ' Gurneys,' we understand. ' Nothing,' it has been said, ' is so difficult for those at the pinnacle of life as to conceive of real failure. They admit it in terms; they fancy they think of it, but they do not grasp it. Their whole life —past and present—is one of ease and pleasure ; they have not the associations wanted to conceive irretrievable calamity.' Nothing but the experience of ruin could convince men like the Gurneys that they were ruined. But the new directors ought on this very account to have looked more carefully. We said on the 15th of March, 1865, the week when the company started: — ' It is the incoming directors on whom the responsibility rests, and to whom the public will look hereafter.' And we cannot, at least we can scarcely, comprehend how they deceived themselves. We have now the means of knowing, for one of them, Mr Rennie, read a statement on his own behalf; and we think he shows the new company never could have made a dividend. He says the Gurneys told him, and he produces a letter from them, saying that the business of the old firm yielded £185,000 a year, independent of the ' extraneous' and unfortunate transactions. But then be also says those extraneous transactions had locked £3,100,000 of money (after deducting £1,100,000) which stood to

the credit of the parties Now 5% on £3,000,000 is ,£150,000, leaving only £35.000 for a dividend—a sum under the circumstances wholly insufficient. '• No douht it was imagined that the Gurneys could pay this sum. But how ought it to have been conceived possible ? Mr Itennie says the estimate was — Value of excepted accounts £1,080,000 . G urn ey property 2,690.000 3,770,000 Less—excepted accounts 3,100,000 Surplus 670,000 " But there is no reckoning here for interest. The great annual income necessary to the existence of the company is never mentioned. Any man of business must have seen, if he had stopped to consider, that the£l,ooo,ooo expected from the anomalous accounts could not come in fur years, even if it ever came; in the meantime, who was to pay interest on the £1,000,000 ? '" It ought to have been remembered that you could not take the whole income of the Gurneys to pay this interest. They must be kept before the world as men of great wealth, or the " Gurney " name would lose its value. If the new company broke up " the Gurneys," it destroyed tiie credit it was itself buying. The new directors ought to have been sure' that the Gurncys would have much left after everything, and we now kuovv that they did not see it. " There is some fatality in this case. Everything about it seems bad. Mr Edwards, the official assignee, was about the worst witness ever seen in court, and we hope the Lord Chancellor will see reason to be satisfied that a man with such a memory and such principles is not fit to be a servant of the siate." The Pall Mall Gazette says: " When a joint stock company fails, men of business sneer at the shareholders for their simplicity, or pity them for their ill-luck, according as they are cynical or good-natured. They never look at the matter as one which immediately afiects themselves. It does not strike them that all these disasters mean much more than the loss of the money actually embarked in.them. That, no doubt, is so unueh spilt milk, ami the actual sufferers may be trusted to cry over it .sufficiently. But if the number of people who will take care not to carry their milk to that market could only be set down on paper, the City itself might feel alarmed at the disastrous consequences of these catastrophes. The wider the area over which the panic extends the longer time it takes to subside ; and the more permanent the cause which has provoked it the longer will it be before it begins to subside. In both respects the panic of 1868 was worse than any which went before it. Its area was the whole country; its cause was a universal distrust of the commercial morality of England."