fi.—9A.

16

was built and the land selected. We did not know that land was open for selection at Okuru till the Italians came. Joseph Max sworn and examined. I am a nephew of Franz Max. I went to Jackson's Bay with him for the purpose of settling. We lived in a house provided by Mr. Macfarlane. I worked with my uncle, and got stores and lived with him. 1 know my uncle selected land, and I had fifty acres near his. I picked my own for myself. I did not like one selected by my uncle. I picked it out. Mr. Macfarlane showed me whereabouts to select. I was not told the conditions of settlement. I did not have a house on my land. I was going to live first with my uncle. I was not asked for my rent. I could not tell if it was deducted from my wages. I remember the house being built on my uncle's land. I was not there when the arrangement was made. I heard my uncle say that he was going to build his own house himself when he was at home. I never heard him talk to Mr. Macfarlane. When the house was built I heard my uncle tell Mr. Macfarlane he did not like the house, it was not good enough ; and Mr. Crawford looked at it, and said it would blow down when the bush was cleared. After that, Mr Macfarlane had some battens put to it. When we would not live in the house Mr Macfarlane would not give us stores. I never heard any conversation between Mr. Macfarlane and my uncle about it. If the house had been well built, both my uncle and myself would have lived in it. Ido not think lam going back. lam eighteen years old. Ido not know of any conversation between Mr. Macfarlane and Lipinsky and my uncle about transferring the house to Lipiusky. Mr. Macfarlane recalled. These parties came in September, 1875. A party of them came. On arriving I put them into the Government cottages until they could find houses for themselves. As soon as they were ready I put them all on to work. Soon after, the sections in Smoothwater were thrown open for selection. Previous to this a number of ten-acre sections at Arawata had been taken up, and a number were open. I told the men how far the settlement was, and that other sections would be open at Waiatoto and Okuru. I showed them a map in the office, and gave them the number of the sections at Smoothwater. They might not all have been there, but a number of others were there. I put up a notice that tho land was open, and on a certain date the sections would be open at Arawata, Smoothwater, and Okuru. Afterwards I heard the land was good at Okuru, and advised them to wait. They said it was too far away; they were afraid of not getting "tucker." A man named Skipper advised them to go to Smoothwater. After the notice w ras posted they went to Smoothwater and selected sections ; and, if there was more than one application simultaneously, the sections were allotted by ballot. Franz Max and Joseph we nt amongst others. Skipper had copies of the pamphlet, but not translated, and all the original settlers had copies too. I was prepared to give them every information. After they had been there for some time I told them that I would build houses for them. They said they could not saw the timber, &c, and I suggested that they should keep at work on the road, and that I should call for tenc/ers and have houses built for them. They agreed to to this, as I have stated already. Stores were only refused unless cash was paid for them. Max never raised any objection to the house till after it was built. After it was built I urged Max to take his own house ; and a short time afterwards he objected to the manner in which the house was built, and he got Mr. Crawford to get the specification, and he reported that it required some extra stays. These were put up, and I consider the house was worth the money charged for it. Two-roomed houses built here cost £18 each. The chimney is of wood, with shingle roof. Max never offered to take it at a less price. I heard he was going away, and as he was not working I told the storeman to supply him only for cash. In September Max earned £7 Is. That was the last work. lie was not knocked off work because he refused the house. Max received stores while he was working. A short time after I went down there two parties brought goods down. Some parties complained of the prices charged for boots, trousers, and other goods, and asked me to get some for them. I wrote to the Government, and asked if they would allow me to include these in my monthly requisitions to the officer in charge here. In my reply I was told tho Government could not interfere in these matters; that they could only supply food, and that drapery, Ac, must be obtained by some other means. I sent for the goods, water-tight boots, &c, and supplied them, and my books will show the prices charged. My goods were limited to drapery, &c. The settlers would have taken any quantity of the goods of the class I supplied. Tho Government supplied food, tools, hardware, &c. I. kept separate accounts in my books, but not in the pass-books. ■ When Max left a balance of £14 9s. 3d. was due to him. The last goods he got was 3s. lOd. on 2nd December. I have debited Lipinski's account with this £14 9s. 3d. Lipinski and Max requested me to do this. I cannot recollect the particular date when they did so. Lipinski was to occupy the house, aud his account was to be debited with £14 9s. 3d., and Max was to get £15 19s. from Lipinski. This money was to be paid to me by Lipinski, to be paid over to Max as I got it. Max asked me for the money. I told him I had not received if. He said the money was in the book, and I must have got it. I told him if he talked to me in that manner he must be his own agent, and get the money from Lipinski himself. I had no written order to transfer this account. Lipinski has abandoned the section, and is living in the house next to it. He has paid no rent. I have not been able to collect, but I think last March there was a small amount paid for rent. Ido not think I could have made this arrangement only on Lipinski's word. Lipinski admits his liability on account of Max. It was in the street in Hokitika that Max asked me for the money. It was in Eevell Street, about opposite the Bank of New Zealand, about four months ago. Max came up to me. Tom Aaronson told me that Max wanted his money. I told him I had not received the money ; when I did I would give it to him. He told me that I had charged the money to Lipinski, and I must have it. Max did not say that he did not recognize Lipinski. I told Max ho must pay £5 19s. Od. before he left the Bay. He went oft' to the " Beautiful Star" in the Government boat. I prevented the people from leaving the place till the accounts were paid. I told Max he could not leave in tho boat unless he paid his account. Max did not demand the money for the house at that time, so far as I remember. It made no difference to me who built the houses. If Max repudiates the arrangement the £lf 9s. 3d. will be retransferred to his account in consequence I believe that Lipinski and Max were present together.