G.—2

14

trustee, was then brought in by Mr. Rees, and he requested that advances be made to Mr. Rees. Mr. Jackson gave way, but said that he always protested, and never made any of these payments except at Wi Pere's express request. It appeared that Mr. Roes claimed that in addition Lo the bill of costs pre sented there, were other matters to be charged for. Mr. Jackson informed us that the taxation of these costs was always going to be don*;, but never was done; that his opinion was that there was much more than the amounts advanced by the trustees really due for costs, and that Wi Pere took the responsibility of the payments to Mr. Rees. Mr. Jackson, as a further precaution, obtained a mortgage over certain timber-cutting rights held by Mr. Rees. Mr. Rees has since; died, and his estate has been wound up and distributed. Another account in the books, under the heading of "Waingaromia and Rangatira cases," is peculiar, and shows as under : — £ s. (1. 15th June, 1903.—Costs, W. L. Eees ... 100 0 0 23rd June, 1903.—Costs, W. L. Rees ... 2,400 0 0 Ist July, 1904.—Debit Good's mortgage ... 2,500 0 0 Loth November, 1906;— Judgment and costs ... 1,566 7 5 11th February, 1907.—White and Eees ... 1,020 0 0 Judgment and costs, Dc Latour and Stock ... 2,245 0 0 Further payments to Rees for costs ... 298 4 7 Survey and valuation fees re security to Crown 363 6 7 Total ... ... ... £10,492 18 7 Cases respecting these two blocks were before the ( ourts for years, and the decision of the Court of Appeal was in favour of the Native owners. An appeal to the Privy Council followed, and Mr. Jackson explained that a request was made to " Mangatu No. 1 " for an advance of £2,500 to enable the owners of Waingaromia and Rangatira to defend the judgment they had obtained in the Court of Appeal. As a substantial number of Mangatu No. 1 owners were also owners in the Waingaromia and Rangatira Blocks the advance asked for was made. Mr. Jackson explained that only those owners of Mangatu No. J who had shares in Waingaromia and Rangatira were held liable for this money —that the security to "Mangatu No. 1 " was the shares of those owners in Mangatu No. 1 itself that those who had no shares in the other two blocks were not to be charged with this advance. Mr. Jackson further stated that personally he was fully convinced of the equity of this dealing, and was present at the meeting of owners of Mangatu No. 1 when it was decided that this advance should be made. Later on a further payment of £2,500 for the same purpose and under the same conditions was made. As additional security Air. Jackson obtained two documents : one, W. L. Rees to the trustees of Mangatu No. 1, purporting to hind all moneys arising in certain actions regarding Rangatira, Block, and the other, W. L. Rees and Wi Pere to " Mangatu No. 1," assigning all their claims and demands upon lands or funds arising out of the Privy Council appeals in the Waingaromia and Rangatira cases, and one-half of the moneys arising out of certain timber contracts. As the Privy Council decided against the Natives these are of no practical value. Both the assignors are dead, and Wi Pere's estate is now in course of distribution. This second £2,500 appears to have been provided by an advance from Mr. Good on mortgage. As to the next three items —judgment and costs, total £4,831 7s. sd. : In order to pay the judgment and costs obtained against the Natives in these cases an advance of £5,000 was obtained from the Government by the trustees of Mangatu No. 1, and this £5,000, with interest, amounting in all to £6,782 14s. 4d., was paid off by the Public Trustee on the 22nd January, 1914, out of the £50,000 loan made by him. According to the documents above referred to, the estates of W. L. Rees and Wi Pere might be held liable, but Mr. Jackson contended that the real