H.—l4.

20

345 a. After Cadman became Native Minister, in whose name were shares taken ?—ln mine. Hβ had nothing to do with purchase of shares after he became Minister. I never consulted him. I mentioned, naturally, to himwhen in Wellington what business I was doing. 346. Cheque, February, 1891, was signed "Cadman and Smith"?— That purchase was arranged in the beginning of January. I had a number of blank forms signed by Cadman and stamped by Tamaki Timber Company. 347. In negotiations with Natives was Cadman's name mentioned?— No. So far as I know he did not know any of the Natives. I produce the bank pass-book. The account opened with £1,050. "While Cadman would only go into the transaction on condition that I joined him because I would be on the spot, and he, being at Coromandel, he could not be. He said, if I did he would advance all money necessary for the firm at £7 per centum. Money being required in December, 1889, he lodged £1,000 on deposit in Union Bank at Auckland as security against any money required by the Tamaki Timber Company. In December, 1890, the year after, it was relodged with interest. That brought it up to £1,050 ; and in March, 1891, the manager of the Union Bank, Napier, advised me to open a fresh account in the name of Cadman and Smith, as Irvine was in financial difficulties. I then drew the £1,050 from the deposit in Auckland, and lodged it to our joint names here, and opened account in name of Cadman and Smith. 348. Tamaki account and Cadman and Smith went on for a time? —I drew a cheque, £915, 21st March, the day we opened the account. That was the same day the £1,050 lodged. When account of Tamaki Company closed there was £124 transferred to Cadman and Smith— No 7. 349. Take all royalties, and all you put in, how does it work out ?—We have very little for our £1,250. We have plant left which is worth very little of what it cost. The money was £2,250 for plant, £150 for man for measuring timber, and £100 rent, and small expenses £50, and property-tax and interest on capital about another £100 a year. It was a good thing for Danevirke. Employed twenty or thirty men. We paid £4,610 for freehold and £478 for stamp duty, £450 for interpreters' fees and other expenses, and £300 for survey of boundary. It totals £5,900; and loss of interest on £5,900 for three years —for lease has three years to run—the purchase will have cost £7,300. It is not correct to say that the purchase has been paid for out of royalties. All the transfers bear the the certificate of the Trust Commissioner. In nearly all cases payment in cash, and paid through Magistrate. 350. As to the duty assessed by the Land Transfer Office—£47 ?—All I know is, seeing it in Mr. Bees' circular. I then looked up bank book and found that the Tamaki Timber Company had never paid it. I had not debited it to the Tamaki Timber Company. I gave my cheque for registration fees. I heard that fees were required from Sainsbury and Logan. I did not know what they were for ; had I known what it was for I should have objected. There was nothing said about what the £47 was for. [Paragraph 14 of memorandum of 10th March.] I had no communication with the Cabinet about keeping Mr. Cadman in office—in writing or otherwise—or with any Auckland members as to change of portfolio, except that I saw Mr. Kelly at the railway-station. He spoke to me about the change of portfolios. He said he did not think it would be agreed to, as the North Island members would not be willing that a South Island member, who knew nothing about Native matters. I said nothing about a " round robin " to Mr. Walker. I never wrote to the Government or any one else on the matter. As to Mr. Walker's statement as to meeting me at the Criterion Hotel, he seems to have misunderstood the drift of what I told him. He asked me about the question of change. I said the papers were wrong, that no change had taken place, and that if he looked at the Gazette he would see I was right. I said, in my opinion no change likely to take place, because North Island members would not be willing that a South Island member should hold the portfolio. I never said I should leave the Government side if the change was made. lam aware that Mr. Cadman did not leave. What I know about Tahoraite is that Knight, the lessee of the block, came to me three years ago and asked me if I could assist him in getting in right. I heard Mr. Knight's evidence about this. What he has stated is correct. There is not a word of truth in paragraph 25. I did not know that any Umutaoroa Natives were in Tahoraite. I had no communication with any Natives as to passing the Tahoraite Bill. [Paragraph 27.j lam not interested in any other blocks—was not at the time of the memorandum, and have no intention of doing so. In 1884 I had interest in Tamaki Block in cutting timber. We sold that in sixteen months. As to Bose, appointment in accordance with my practice. I recommended nine persons at the last valuation; five appointed and four not. I never heard of the slightest objection to Mr. Eose's appointment. The Chairman of the Eoad Board was satisfied with the valuations; it gave them £300 a year extra. I wrote to Mr. Cadman because I saw 150 names come out, and somefor my district. I wrote to Mr. Cadman, and said I knew three names I mentioned were good men. Eose was one of them; it was to my disadvantage to have a low rate put on, (1) because Mr, Knighc had to pay the rates, and (2) because I purposed cutting it up, purchasers would quote the low valuation. The Native duty is assesed on the purchase money. As to the £10 per centum that made no difference. Mr. Crombie sent the usual notice, that the Tamaki Timber Company was assessed at £3,000, as lessee. It was the usual printed circular. I then wrote this letter. I wrote and told Mr. Crombie that the company were interested in the freehold, and therefore we had a right to pay on that. I said we had acquired eight shares. In conformity with promises made to the people, I got Mr. Knight to re-lease part of the block, so that I could cut up portion and dispose of it. Afterlong negotiations he agreed to release, on payment, about 1,200 acres, on which there was little or no timber. I then mentioned to some of the Danevirke people that I should be ready to receiveoffers ; Mr. Hunter was amongst them. Mr. Eose came to me and asked if ho brought any purchaser would I allow him a small commission. I said I would to him or any other agent. He had no> authority to make agreements or take money —he had to consult me. The arrangement about re-leasing the 1,200 acres only nearly completed; but I acted on it since last February. Postcript to letter of 24th March is not true. Mr. Knight had not re-leased that part. I heard Mr.,