I.—lla.

2

MINUTES OF EVIDENCE.

Tuesday, sth September, 1905. James Alexander Murdoch examined. (No. 1.) 1. Bight Hon. B. J . Seddon.] What are you? —A solicitor in practice at Kumara. 2. Do you hold any official position in connection with the borough?—l am Mayor of Kumara. 3. Do you know anything whatever about the water accounts and the amount that is in »rrear ?—Yes. 4. Have you received any instructions to proceed against any of the miners or parties to recover any sums owing for water?— Not myself, but I understand the Crown Solicitor at Greymouth has. 5. Are you interested in any of the claims that have been taking water from the Government race, or can you tell us what has been the custom or practice in connection with the supply of water ? —The practice has been at the washing-up to interview the Manager of the water-race, and, if the claim is payable, to pay the amount due in full, and, if the claim has not paid, to make a declaration before him to that effect, to produce the gold receipts, and to pay as much as possible of the amount due. 6. Do you know whether water has been given with the view of prospecting new ground under arrangements between the parties and the Manager I —Yes, frequently. The parties have gone to the Manager and stated that they regretted that they would not be able to work their claims any more on account of their non-paying character, and have showed that if they paid anything for the water they would not have anything to keep themselves or their families on. In such a case the Manager has sometimes suggested that they should go on for another washing-up, with the result that sometimes the next washing-up proves to be better, and they are able to pay for the water not only for that washing-up, but for the arrears. 7. That has been the practice? —Yes. 8. Are you interested in any of the claims that are taking water from the Government?— Yes, I have taken shares in two different claims. 9. What is the position of the claims that you have been interested in : have they paid, or otherwise?— They have paid. 10. Then, if any statement has been made to the effect that you are the principal person concerned in owing this £1,000, is that correct or otherwise?—lt is absolutely incorrect. 11. You state that all accounts in connection with your claims have been paid?— Yes. 12. Have you had any opportunity of knowing whether the parties who owe this money are in a position to pay, or do you consider the money owing to be legitimate bad debts? —Most of them, I should say, are absolutely bad debts. The most that could be said of a few of them is that they are doubtful; as to others, a few dispute the amounts. Most of the old miners who owed this money are dead, and the debts arose in the way I have indicated —that the Manager consented to a number of these old diggers going on using the water for another month. If the claims did not pay at all they would be thrown up and the Manager would lose another customer. 13. How long have you been in Kumara?—Thirteen years. 14. And has that practice on the part of the Manager obtained all the time you have been there?— Yes. 15. What would be the effect if the miners were compelled to pay for their water in advance? —They would be absolutely ruined. 16. What do you mean by that?—l do not think there are more than three parties on the field that could do that. They have no capital—no ready cash. 17. You state to the Committee that to give credit is indispensable?— Yes, indispensable. 18. And has been so since you have been there?— Yes. 19. Then, taking the amount owing as bad debts for seven years, do you consider that proof of good management or otherwise?—lt shows that the Manager, Mr. Aitken, has been very prompt in his duty and has had the confidence of the miners. They have gone to him before going to their butchers and bakers. It shows that Mr. Aitken is a very good diplomat in getting their confidence, and they are all friendly-disposed towards him. At the same time, he is firm when necessary. I do not think any private water-race owner could have conducted his business with the loss of so little in bad debts. 20. You mean that, taking the water supplied and the time the debts have spread over, there is no fault to be found with the Manager ?—Yes. Taking the time, amount supplied, and the poor nature of the ground, I say the amount in arrear is very small indeed. 21. Hon. Sir W. B. Russell. .] Do you consider it a good investment on the whole, to allow bad debts of £1,000 to be made? Do you think, generally, the mining on the field has more than compensated for the loss of £1,000 in connection with the water-race?—Verv much more so. 22. To your knowledge, has anything like favouritism crept in in the allotment of this water?—l have never heard it stated so. 23. Any man of moderately good repute bond fide working on the field could get the same concessions from Mr. Aitken ?—Yes; he has been strictly departmental in the matter. 24. There can be no question of favouritism—the same liberty has been granted to every deserving man?— Yes; Mr. Aitken has been most fair.