37

I.—4a

239. After the No Town Creek Company was floated the No Town No. 2 Company came on for flotation ?—lt did. 240. How did you float that company ?—I have my original " bespeaks " here. The company was to have been called, in the first place, the "No Town Extended." I understood that I was to prepare the prospectus in Dunedin, but after the lapse of a few days I got the prospectuses sent over ready printed from Mr. Cook, on the West Coast. I had previously written to Mr. Cook, and told him that I had 8,500 shares on my first list and a supplemental list of three or four thousand before I had received the prospectuses, so that Mr. Jackson's report would make no difference whatever to the flotation of the company. I was advised by Mr. Cook that he could only spare for Dunedin a thousand contributing shares in the No Town No. 2 Company, on account of the West Coast vendors having insisted upon getting the bulk of tbe contributing shares for themselves and their friends in Wellington. By their " friends" in Wellington I mean that, Mr. Parfitt being the original owner of the claim, and his son being a broker here in Welington, he probably had some friends whom he wanted to sell the shares to. 241. The Chairman.] As a matter of fact, you put Mr. Jackson's report in the No Town No. 2 prospectus without his consent ?—I did not put it in at all. 242. Well, it was done from the West Coast?— Yes. 243. Mr. Herries.] You had nothing to do with it ?—Nothing to do with the prospectus in the flotation of the company. 244. Mr. Cook] Can you tell us whether, in the flotation of companies at that time, there was a tremendous rush for dredging companies' shares?— There was. 245. In reference to other companies outside of those floated by Cook and Gray, have you ever seen any prospectus where the reports on the adjoining claim have appeared? —Yes, I have. 246. On the Maranui, or any others? —Yes, I have. 247. Where it was not possible, or not deemed advisable, to prospect the ground, the reports on the adjoining claim have appeared ?—Certainly. 248. Can you tell us whether the results of the prospecting on this company's claim by the company's engineers have borne out that the ground is of similar value to the No Town Creek Claim ? —That was Mr. Jackson's own opinion. I saw him before I got this prospectus, and he expressly asked me to reserve three or four hundred shares for him. He said that the only difference between the two claims was that there was a little more scrub on the claim of the No Town No. 2. 249. I am asking as to the result of prospecting by the company's engineers ; to your knowledge, has the result of the company's boring and prospecting shown this claim to be of similar value to the No Town Creek ?—Yes, it has. 250. Then, I presume, Mr. Jackson's objection to his report appearing on the No Town No. 2 prospectus is that he did not get another £75 ? —I would not like to say that; he is a gentleman of whom I have a great opinion, and I would not like to say that he had any unworthy motives, but I dare say he felt sore about not getting something in addition to what he received for his report on the No Town Creek Claim. 251. Mr. Easton] You spoke of some thousands of " bespeaks " : will you kindly show the Committee a list of those " bespeaks "?—Yes, certainly I will. [List produced.] 252. Whose writing is that ? —Mine. 253. I meant the actual applications ? —I had not the prospectus at that time, as I have already stated. I just took a note of the names of those desiring to take up shares. 254. Mr. J. Allen] Did Mr. Jackson take up any shares in the No Town No. 2 Company?— No, he did not. Some were bespoke for him, but not allotted, as only 1,800 eventually came to Dunedin. 255. Mr. Herries] With regard to the shares that you hold at the present time in the No Town No. 2 Company, is it a fact that nothing has been paid on them ?—Yes; judgment has been obtained against me for the amount. I have been expecting money. The Supreme Court gave judgment in Dunedin about a fortnight ago on a matter that has been hung up for a long time, and I have £2 a week extending over a considerable period due to me. A long time has been spent in getting the amount through the Court, but I shall get that amount shortly. In the meantime I have arranged with the directors, and given them security for the payment of the money. 256. Had you much experience in floating these companies ?—Yes. 257. How many were you connected with in the matter of flotation?—Aylmer Lead, the No Town Creek, the Boss Day Dawn, the No Town No. 2, the Crown Diamonds, and the Ponsonby. I had very little to do with several others of them, selling just a few shares, mostly to friends. In connection with the Ngahere Company I sold a few shares. I had a good deal to do with the Ponsonby, and also the Boss Day Dawn. The Three-mile Greenstone I had not much to do with, nor with the Tucker Flat or the Wicklow Companies. 258. Who issued the instructions to the solicitors with regard to preparing the articles of association ?—As a rule, I did. 259. Did you give him any particular instructions with regard to accepting certain portions of Table Aof the Companies Act of 1882 ?—I did not. 260. Who gave him those instructions ? —He was instructed to prepare the articles of association, including the usual clauses governing companies. 261. What companies? —Mining companies in Dunedin—the companies that were formed there; he received no particular instructions on any points as to details. 262. In the first place, those articles are the same in all these companies ?—I believe they are practically the same; each solicitor, I think, as a rule, has his own particular form. 263. But in your companies—the articles for which Mr. Holmes prepared—are they all the same ?—Practically the same.