I.—lc.

CAPTAIN WING.]

13

evidence it would appear that these people saw you? —Yes; but I do not know whether Mr. Farrish was sent up to value the property. 274. Mr. Farrish was the only one Sir J. G. Ward quoted. You did not know that Mr. Farrish was valuing it at all? —No. 275. Was he a man of good position? —No; he was a railway clerk at Invercargill. 276. So that there could not be very much value attached to his valuation ? —No. 277. Captain Post, who accompanied him, came to you for the purpose of getting information ? —Yes. 278. And you gave him all the information he asked for? —Yes; as far as I know, I did not withhold anything. 279. So far as your knowledge and belief go, you gave him all the information he inquired for?- Yes. 280. You complain that the property was taken by the Government under such circumstances that you were driven to part with it? —Yes. 281. You are aware that in the construction of the electric tramways in Wellington and Christchurch the Corporations had to adjust matters with the horse-tramway proprietors? —Yes. 282. Both Corporations, I understand, appointed valuers by mutual agreement with the proprietors —they did not appoint champions. Three men were chosen jointly to settle the valuations as between the parties, and the decision was accepted with entire satisfaction by both Corporation and vendors. I assume that it was something of that class the company sought for as a matter of fair play? —Yes. 283. You recognised the public necessity and were willing to part with your steamers, but you do think you were entitled to fair consideration, and valuation by outside parties? —Yes. 284. Hon. Sir J. G. Ward.] The District Traffic Manager, Mr. Piper, says distinctly that he could not ascertain what the reserve fund or book debts were? —I do not think he ever asked me. Would that have anything to do with the value 285. If the withholding of the amount of the reserve from an officer sent to report has taken place, would that not obviously cause a doubt to be cast by the Government on the bona fides or representation of the company? —1 really cannot see it. If you make a certain amount in your business it does not matter to any one what you put by. 286. That was withheld when the Government were trying to purchase your steamers. We had made up our minds to put one or two steamers on Lake Wakatipu, because the district and the Government were not satisfied with the service there. We said openly that we were going to do it. The case is not similar to that of taking the tramways, the principle of which as laid down I agree with, because it was only-when we announced our intention to put on steamers that your company approached us and negotiated with a view to the Government taking over your steamers; and the point is this: that, as Minister for Railways, I could not ascertain what the amount of your reserve and book debts were? —Had that anything to do with it? 287. The charge made against your company by people in the district was that the rates were extortionate. I, as Minister for Railways, had tried to get your people to reduce their rates, and we agreed to reduce our railway charges ? —I know that in one instance we reduced our rates and you did not. It was in connection with the tourists, and there was a good deal of talk about it in the district. You appeared to know from your speeches exactly what our reserve fund was. 288. That was because I had to fossick for it. I should say that hundreds of people interviewed or communicated with me with the object of getting us to take the course we did, because the company would not meet us. Our trouble was that we were running our railways to the edge of the lake, and were trying to run our railway passengers at reasonable rates across the lake? — But the fact is that you have got the property much below its value. 289. My own opinion is that the Government paid full value for the property of the company? —Is that the amount Captain Post said it was valued at? 290. Mr. Piper said that he could not ascertain what the reserve fund was? —I can only say, now it comes to that, that I wish Mr. Piper were here. He said to me, " Captain Post is here for tho purpose of valuing the property," and I said I would give him everything he required. It would have been to our advantage to show him our balance-sheets. 291. I can only tell you that I could not get a balance-sheet for some time, and finally had to get one from a shareholder in Dunedin I—Well,1 —Well, I should have been only too happy to give you a balance-sheet, the same as I have given them now. Dr. Douglas examined. (No. 3.) 292. Mr. Duthie.] Are you acquainted with the figures of your balance-sheet? —Not at all. 1 do not profess to know anything about the details of the balance-sheet. 293. You are aware that shares of the company before the Government took any steps to acquire the property were selling at from £1 2s. 6d. to £1 ss. ?—Yes. 294. When the Government announced its intention to put steamers on the lake, I understand there was a panic, and the shares went down to 125., or were unsaleable? —Yes. 295. Under the feeling of dread that the company would meet with disaster from the competition of the Government, you, as directors, were induced to approach the Government with a view to their buying your plant? —Yes. 296. And you ultimately accepted the offer of the Government of £15,000 under compulsion, due to your fear of disaster, and not because it was the value of your property? —Yes. 297. The company's affairs are correctly set out in the balance-sheet? —Yes, I believe so. -298. It has been represented that your only grievance is that, although you were prepared to permit the Government to take possession of your property in the public interest, you did not get its proper value, and were not allowed by arbitration or valuation to establish the value of the company's property? —Yes.