7

G.—7

The second sum consists of the expenses incurred by Sir Haviland Hiley as representing Cammell, Laird, and Co. in coming to New Zealand, investigating the concession and titles, making reports, &c., and, as above noted, is secured by general agreement to mortgage over the whole of the Tongariro Co.'s property. We have not the debentures themselves before us, but, so far as our recollection serves, they are a first charge on the division known as " Western B " and a second or third charge on other parts of the concession as well. We understand that the debentures held by Messrs. Cammell, Laird, and Co., Ltd., form part of an issue the remainder of which are held by the executors of the late Sir John Houfton, for whom Messrs. Chapman, Tripp, Cooke, and Watson act as solicitors in New Zealand. On reference to your files in this matter it will be found that we have on previous occasions indicated the nature of the claims of Messrs. Cammell, Laird, and Co. against the Tongariro Co., and this memorandum is written in amplification. Messrs. Cammell, Laird, and Co. are the well-known ship - builders employed on numerous occasions for Admiralty contracts. They investigated this concession with a view to constructing the railway from Kakahi to Taupo, but by arrangement with the Tongariro Co. the project was abandoned so far as Messrs. Cammell, Laird, and Co. were concerned, and they have never been repaid the sums advanced. Bell, Gully, Mackenzie, and O'Leary, N Solicitors for Cammell, Laird, and Co., Ltd. Ballance and Featherston Streets, Wellington, 12th May, 1930.

CLAIM No. 4. Memorandum for the President, Aotea District Maori Land Board, Wanganui. Ee Tongariro Timber Co., Ltd. We have been informed by the secretary of the Tongariro Timber Co., Ltd., that on the 19th March, 19.30, the directors were authorized by the shareholders to transfer their rights under the several agreements held from the Maori Land Board to the Crown subject to the Government settling the claims of creditors and shareholders either by negotiation or arbitration. Neither we nor our client hereafter referred to assented to that resolution. Nevertheless, it seems to us we should formulate and place before you and the Hon. the Minister for Native Affairs the several claims of our client, Mr. Bertram Philipps, of Salisbury, England, as a creditor of the Tongariro Timber Co. The first claim of Mr. Philipps consists of two several sums consisting of — (a) £14,700, with interest at 6 per cent, from 19th January, 1927 ; (b) £15,000, with interest at 6 per cent, from 25th March, 1927. The above sums are those stated to be due to Mr. Philipps by an agreement between him and the the Tongariro Co. dated 25th March, 1927, admitted as a settlement of an action, No. 799/1926, Supreme Court, Wellington. The foregoing moneys are secured by— («) An agreement to mortgage dated 24th February, 1926, covering the whole of the Tongariro Co.'s concessions and assets subject to prior charges, and supported by a caveat on the title ; (b) An agreement to mortgage dated 11th April, 1927, on similar lines : (c) Pledge of twenty-seven mortgage debentures of £1,000 each issued by the Tongariro Co., and charged upon certain of its properties and rights Nos. 276 to 297, 310 to 313, and 409. The agreements between the Maori Land Board and the Tongariro Timber Co. provide for the latter company paying to the Aotea Board certain sums in each year representing royalties in advance of timber to be afterwards cut. We understand that the total amount paid by the Tongariro Co. to the Aotea Board in respect of royalties is about £53,000. With the exception of a small area of timber upon the Western A Division cut by the Egmont Box Co., the whole of the timber in respect of which that royalty has been paid is still standing, and presumably on cancellation or expiry of the Tongariro Co.'s concession will revert to the Native owners. Of the royalties paid in advance, at least £10,000 has been provided by Mr. Philipps on the urgent request of the Tongariro Timber Co., and such sum of £10,000 forms part of the above-mentioned sums mentioned as owing by the Tongariro Co. to Mr. Philipps. It is respectfully submitted that the Board will not permit the Native owners to have both the timber and the money, and that the advances made by Mr. Philipps in respect of royalties should be repaid as a prior charge on the property with interest at 6 per cent., and that the remainder of the Tongariro Co.'s debt to him should also be charged upon the property, as being secured by the agreement to mortgage and debentures given to him. Mr. Philipps' second claim is- not so much a claim for money as a claim for title, and we will endeavour now to set out the basis of his claim, omitting for the present much detail and extracts from documents and statutes, which can be supplied later. The Tongariro Co.'s bushes have always been divided into three areas known as " Western A," " Western B," " Northern and Eastern."