G.—4c

12

Jones and his party the first offer of any lease beyond the first-mentioned boundary. The last time I saw that document was in the possession of Mr. Jones. From my recollection, I am certain that Jones, McMillan, Shore, and his son were named in that document: that was the twenty-one years' lease. The document was signed at Waitara, and was, as far as I remember, attested by me and by Mr. Flight as Eesident Magistrate, and was interpreted to the Natives by mo. I think there were three Natives who signed that agreement. Te Oro was one, and I think Wetere te Rerenga and also Epiha Karoro. That agreement referred only to a lease for twentyone years. Both before and after the last-mentioned agreement I visited Mokau several times to try and settle the matter, but no other arrangement was come to than what I have already stated. After young Shore was drowned in the Mokau Eiver, Jones and I had a disagreement; the cause of it was that Jones wanted to buy out the interest of George Shore's widow and children for what I considered an inadequate price. I told him I thought it would be as bad as a swindle to rob the widow and children, and, as far as it lay in my power, they should always have their rights. That took place at Mokau. Jones never applied to me after that time to ace in the matter in any way. Both Shore and McMillan came to me repeatedly and wished me to assist them. After the land passed through the Court, I heard that Jones was getting a lease drawn out in his own name only. I happened to see Shore in New Plymouth about that time, and told him what I had heard, and advised him to go to Mr. Standish's office and protest against the deed being drawn out in that way. He said that he was disgusted with Jones altogether, but he thought he would be able to put it all right by-and-by notwithstanding Jones's deed. Ido not know whether lie went to see Mr. Standish or not. I cannot say of my own knowledge, but Shore's son's widow has told me that she never got anything out of it. The paper now shown me is in my handwriting; it was made out by me at Shore's request, and is a translation into Maori from a memorandum made out by Shore, winch he showed me at the time. In all material points it is a correct abstract in Maori of the document that was signed at Waitara in my presence. Shore said he wanted to have it to show the Natives what was in the document. Mr. McMillan resided at Mokau Heads for some time. I have often seen him there, and know, that he was on good terms with the Natives. The Natives repeatedly said to me that McMillan was a good man, because he was always working and showing them what to do. His wife was with him, and they were both much respected by the Natives. McMillan must have been there at least two years before Jones went there to live. The Mokau Natives have often said to me since McMillan left that they were very sorry that he had left, and had been anxious that he would have stayed with them. Shore also stands well with the Natives, but McMillan was a very superior man, and a man whose residence amongst the Natives was, in my opinion, likely to be very useful. Shore went to Mokau on two occasions during the war at a time when it was not safe for Europeans to go there.

Thursday, 26th July, 1888. James Holmes, having been duly sworn, gave evidence as follows :— I am a shipbuilder residing at Devonport, North Shore, Auckland. I have known Joshua Jones for many years. I remember when the Mokau-Mohakatino No. 1 Block was put through the Native Land Court at Waitara. I was at that time living at Waitara. Some three or four years before that time Jones and Shore made a proposal to me to build a steamer to run between Waitara and the Mokau River. The arrangement was that they (Jones and Shore) were to find one-half of the cost of the steamer and I was to find the other half. Upon that .arrangement I got the steamer built called the " Hannah Mokau." She was built at Devonport, and was taken round the North Cape to Waitara. When the hull was nearly completed I wrote to Shore saying that I had now completed my part of the agreement, and that they would have to find the money for the machinery. Consequent upon that letter Shore's son came up to Auckland, and, as no money was forthcoming, it was arranged that the hull should be mortgaged to Mr. Hawkeswood to pay for the machinery, upon the understanding that Shore and Jones and the Natives were to find the money to pay off the mortgage. Jt had previously been represented to me that the Mokau Natives would take an interest in the boat. About a week or two before the boat was completed George Shore came up to Auckland to pilot the boat into the Mokau Eiyer. The boat was taken into the river and the next day to Waitara. The boat went down to Waitara with the mortgage on her, and ran for several months between Waitara, Mokau, and the Manukau. When the mortgage became due the mortgagee seized her in the Manukau. I sent word to Shore and Jones what had happened, but I could get no assistance from them. I then w Tent to Mr. Sheehan, who w ras Native Minister at the time, and asked if the Government would take the steamer over, as the Natives had an interest in her. He at once agreed to do so, and the mortgage was at once paid over. I think it was between £800 and £900. I cannot exactly remember. I considered that the money was found by the Government. The boat was made over to the Government as security, and was insured, by the Government in the Union Insurance Company. I received £200 from the Natives towards building the boat. That was all the money I received from anybody. The money was paid for the Natives through the Native Department. The Native Minister and Sir George Grey had previously, at a Native meeting at Waitara, promised Shore and Jones, on behalf of the Natives, a subsidy of £300 a year for a steamer to run up the Mokau. After the steamer had run three or four months I applied for payment, and received £100. The steamer continued to run for about two years, but I never received any more subsidy. After this there was a change of Ministry, and no further subsidy was paid, although I applied for it several times. It was on account of the subsidy that I agreed to build the steamer, but of course I depended on Shore and his son paying their part of the cost, as they had promised to do. I never had any promise of payment from Jones. I was then pressed for payment of the money duo