Mr Seddon asked if it were not a mon strous thing that unfortunate customers of the Bank should be harshly pressed ? It was never intended, when the State assisted the Bank, that this should be done. Witness said he was very sorry indeed for thoße unfortunate customers, and if he had the same thing to go through again he would leave it to somebody else to do. Owing to the position of the Bank of New Zealand and the liquidators of the Colonial, this con dition of things was unavoidable. There was no doubt that some of the late customers of the Colonial Bank were being treated harshly. But for the Bank of New Zealand to be on the safe Bide this could not be avoided. The matter had not been officially mentioned to the Government, although wit ness had spoken to Mr Seddon about it. He thought that this position of things was not in the best interests of the colony. The liquidators, of course, were also disinclined to take any risk in the matter. The Court had already refused some oi their recom mendations, and witness thought that the shareholders of the Bank had suffered through it. Some of the accounts in the "B" list could be nursed through without any writings off. He did not think that the directors had made any hard-and-fast rule that the " C " list of accounts were never to be taken over, but they were doubtful as to the probability of their doing so. When Mr Booth said that it was never intended to take over the " C" list of accounts he might have misunderstood the question, or might have been speaking for him self only. Mr Booth had no right to speak for the Board in making that state ment. The accounts in the "0" list were never placed in such a position as would warrant the Bank of New Zealand taking them over. The Bank honestly intended taking up those accounts if they were in a fit position to be taken over. He did not think that any of the holders of accounts in either the " B " or " C" lists were told the position of their accounts. The two banks made the arrangements, of which their cus tomers were not aware. 