I.—3a

XII

Thursday, 19th October, 1911. The Committee met at 10.30 a.m. pursuant to notice. Present: Mr. Jennings (Chairman), Hon. Sir J. Carroll, Mr. Dive, Mr. Greenslade, Mr. Herriee, Mr. Mac Donald, Hon. Mr. Ngata, Mr. Parata, Mr. Rhodes, Mr. Seddon, Dr. Te Rangi liiroa. Minutes of previous meeting were read and confirmed. Paper No. G.—l, Mokau-Mohakatino Block. The Committee proceeded with the consideration of the draft report. " As to Mr. Massey's statement of the position, it correctly sets out the facts therein referred to, and is in agreement with the statement of the Government except as to three minor matters." Agreed to. "I. In clause 7 it is suggested that the limitation provisions of the Native Land Act were avoided by the issue of an Order in Council, whereas in fact the Order in Council was issued in accordance with such limitation provisions." Agreed to. " 2. The statement in clause 8 to the effect that the meeting of Native owners therein referred to was not properly representative was disproved." Agreed to. ■'). The statement in clause 10 to the effect that the company or members of the company v ill possess practically a monopoly of coal-bearing areas on the west coast of the Taranaki Provincial District was disproved." Agreed to. " The only additional facts which the Committee deems it necessary to refer to are that the lessee finally acquired the interest of the Natives in the blocks for the sum of £25,000 in cash and the sum of £2,500 in fully paid-up shares in a company having a capital of £100,000, formed to ncquire the Mokau-Mohakatino Block mid other properties." Agreed to. " Mr. Hernnan Lewis, the lessee, sold all his interests in the Mokau-Mohakatino blocks (excepting an area of about 7,000 acres which are subject to certain subleases) to Mason Chambers for the sum of £71,000 in cash and £4,000 in fully paid-up shares in the said company. The company purchased from Mason Chambers, paying in cash and shares in its capital the sum of £85,000." Agreed to. " The sum paid to the Natives Tor their interest in the land was greater than the actuarial value of the interests of the Natives burdened with the leases, assuming the pur-chase-money obtained by the lessee to be the true value of the block." Agreed to. " Suggestions were made before the Committee reflecting upon certain departmental officers concerned in this transaction, but your Committee is satisfied that these suggestions were entirely disproved." Agreed to. Postponed section. Section 4of clause (c) was then reconsidered. Mr. Berries moved to amend the section by striking out the figures £80,000, with a view to inserting the words "a large amount as" in lien thereof. The amendment was negatived on the voices. Resolved, That the section as read stand part of the report. The Chairman moved. That the following clause be added : — " That the Committee has found from evidence given that a Civil servant is acting as trustee for a land company, and will receive, directly or indirectly, payment for such trusteeship. It was further shown in evidence that this instance is not singular. The Committee is of opinion that it is not desirable that any Civil servant should be placed in such a position, even though it is clear that in this case it was done with full authority from the Department, which agreed, after receiving legal advice, to the arrangement." The motion was lost on the voices. Resolved, That the Chairman report the findings of the Committee to the House, with a recommendation that the report, together with the minutes of proceedings and copy of" evidence taken, be laid upon the table of the House and printed.