C—3

5

subjects, who had faithfully observed the law, and who deserved, in recognition of their conduct, to have been protected in the rights which the law secures to them, rather than to be deprived of those rights, in order that privileges of great, possibly of enormous value, may be given to those of their fellow-subjects who had set the law at defiance. I pass over the statement of the Minister for Public Works that it will be necessary to reward those breakers of the law to prevent them from exercising their influence over the Natives to the detriment of the Government and their fellow-settlers by preventing them from selling lands which the public necessity requires should become the property of the community at large. Certainly people who could be guilty of such conduct ought to be punished instead of receiving large rewards. I think, also, that in each instance of the unlawful leases and agreements to which Mr. Mackay alludes, he should,be directed forthwith to supply the Superintendent of this province with the name of the officer of the Native Dejjartment who broke the law by negotiating such unlawful lease or agreement, in order that inquiries may be made as to whose authority this was done by, and why such exclusive privileges were given to some of Her Majesty's subjects, and why —whilst the inhabitants of this country at large were, by carefully framed laws, shut out from dealings with the Natives regarding certain lands —other individuals, who were favoured, were allowed to carry on such dealings, and were even granted the assistance of those officers of the Government to aid them in these transactions, whose duty required them to prevent such dealings from being carried on. The more fair and legal any such transaction may have been, the more reason is there that a full inquiry should be made into it, in order that the blamelessness of the parties concerned in it may be openly and fairly established beyond all future question. Upon the whole, therefore, I think I am doing that which is, in every respect, for the public interest, in recommending that, whilst all legal and valid agreements and leases should be scrupulously observed, all those regarding which any doubt exists should be strictly investigated, and that only such a money compensation should be given to the respective claimants as a full and impartial inquiry may prove them to be entitled to. My observations apply equally also to all exchanges of land which the General Government propose to carry out without a full and open inquiry, I do not think that the Government will be justified in taking lands from any of the blocks purchased with public money, and giving them in exchange, at the will of the Native Minister, or any other person, to Europeans or Natives, until a full and open inquiry has been made into the circumstances of each case. Land is now so essential to the interests of this province, for the purpose of settling intending immigrants upon, or those of our population who have hitherto been unable to obtain land, that I earnestly request that the recommendations I have made may receive the approval and sanction of the General Government, and that I may be authorized at once to give effect to them. I would yet add another reason, of a general nature, in favour of the course I recommend. The rights of property disposed of, under the arrangements made by the Minister for Public Works and Mr. Mackay, must be very great indeed. The parties interested in these are the public, the Native owners, the European claimants. Clearly such rights ought not to be dealt with secretly, in a private room, by one man. To expose him, under such circumstances, to the solicitations of private friends, or of the political supporters of the Government he serves, is a wrong to human nature, to independence of character, to public rights; to the interests of the Native owners, for there is no fair competition for their property; and to the mass of Her Majesty's subjects, because their interests are not fairly protected. A consideration of this will, I hope, make you feel that this system should be instantly stopped, and that perhaps, upon the whole, the proper course would be that an open inquiry should at once be instituted into each past transaction. I have, &c, The Hon. the Colonial Secretary, Wellington. G. Geey.

[3. Extract from the Minutes of Evidence taken lefore the Tairua Investigation Committee of the House of Bepresentatives, I.—l. 1875.] Thuesdat, 12th August, 1875. Mr. James Mackay examined on oath. 15. The Chairman.'] In the case of the Hihi and Piraunui Blocks, did you purchase these from the Natives on the 21st September, 1872 ?—I cannot say the exact date when they were purchased. It is probably mentioned in the report of 24th March, 1873. It might possibly be September. Ido not recollect the date of these deeds. 16. On the day before the purchase of that block, was a lease of the timber and incidental rights for ninety-nine years given by the Natives to Messrs. Eussell, Stone, and Wilson ? —Yes. 17. Then the Opango block —did you purchase that on the 24th August, 1872, or about that date ? —Yes, about that date. 18. On the 29th of July, was the lease of the timber and incidental rights given by the Natives to the same gentlemen ?—I believe so. 19. Did you receive any money from them for these timber leases—from Messrs. Eussell, Wilson, and Stone, or any of them ? —They were originally my own purchases. I bought that timber and transferred it to them. 20. What did you sell to them for ?—I got £100 over and above what I had paid to the Natives. 21. What was the sum paid to the Natives ? —I paid the Natives £500. They paid the Natives £1,000 more. They carried out my original agreement for the Waiwhakaurunga and Opango Blocks. I did not get anything for Hihi and Piraunui; I had not paid any money to signify on Hihi and Piraunui. I transferred to them before I had anything to do with the Government land purchase. I had nothing to do with the Government between 18G9 and when I commenced to buy land in 1872. 22. Why was not mention made in the lease that you were the real person that sold to them ?—