11

G.--7.

The Government. —As a result of the Government's action in refusing its consent to the Duncan project and in deciding itself to acquire the territory affected by the Tongariro Co.'s rights, the proposed new company was not, and could not, be formed, and I, in consequence, lost all the benefits described above. Furthermore, through the self-same action and for the reasons already indicated, I appear to have no right of recourse in respect of my claim against any of the parties to whom my services were rendered. In all these circumstances I consider that I have a strong moral claim, if not a legal one, against the Government. This concludes the presentation of my claim in all its main details, and it now only remains for me to commend it to you for the favourable consideration of yourself and the Government. Summarized, the position is that, in all, I claim— (a) £2,500 on account of services rendered to the Heuheu-Grace party and to my section of the Native owners —in the case of the latter as up to the end of the year 1927. (b) £2,000 on account of the £10,000 fully-paid-up shares, which would have been allotted to me for services rendered the Duncan syndicate during the years 1928 and 1929. For the reasons already indicated, it would appear as if I must look to the Government either for payment or for protection if it comes to terms with the parties to whom my services were rendered. In conclusion, I would mention that, in associating myself as I did with the affairs of the Tongariro Co., I did so in the firm and honest conviction that the best interests of all those for whom I acted, and also of the Native owners generally, lay in the successful carrying-out of that company's undertaking, and I have yet to be convinced to the contrary. I would further add that the £4,500 claimed by me barely covers the financial loss which I have incurred since the year 1924, through my association with the company's affairs. I shall be glad if you will kindly advise me of any further action that I may be required to take. I have, &c, — W. H. Grace. CLAIM No. 7. Wellington, 14th March, 1930. Judge Browne, President, Aotea Maori Land Board, Wanganui. Sir, — Re Tongariro Timber Co. In compliance with the provisions of paragraph (6) of section 29 of the Native Land Amendment Act, 1929, I hereby beg to furnish you with particulars of the claim against the above company of what is known as the Heuheu-Grace party. This Tdo as the duly appointed trustee of the party. The leading members of the party are.: — (1) The estate of Te Heuheu Tukino (deceased). (2) Mr. L. M. Grace, of Wellington. (3) The estate of Keepa Puataata (deceased). (4) Mr. J. E. Grace, of Tokaanu. Briefly, the party's claim is for the payment of a sum of £41,900, together with interest thereon at the rate of 5 per cent, from the Ist July, 1920. On the 28th of last month the amount of the claim, principal and interest, was £62,326 ss. The grounds on which the party bases its claims are as follows : — (1) It holds £41,900 of the company's debentures which were payable on the 31st of December, 1914, and which carry interest at the rate of 5 per cent, per annum. (2) None of these debentures have been paid nor has any interest been received in respect of them since the 30th June, 1920. (3) These debentures belong to a series of £80,000 created by the company on the 12th May, 1911. This series now constitutes the paramount general charge on the rights and assets of the company, though that charge is postponed to certain other charges in respect of— (a) The Western A timber area. (6) The Western B timber area. (c) The route of the company's railway-line and its mill-site, &c, areas. (4) As among the holders of the £80,000 series and by virtue of a deed of modification made on the 13th October, 1920, the party has priority over the other holders, both as to charge and payment. (5) The party holds as a collateral security for the payment of these debentures a mortgage over the company's rights in respect of the Western B timber area, but subject to a mortgage-debenture charge in favour of the Houghton-Chapple group for £36,000 and interest. This completes the formal presentation of the party's claim. I must confess, however, that I am not at all clear as to what exactly is the object of paragraph (6), but I take it that the Government is desirous of being furnished with particulars of all claims affecting the company with a view, perhaps, to arriving at some equitable settlement with the claimants when, and if, it acquires the Tongariro timber territory. On the assumption that this is the object of the Government I think that it would not be amiss if, in addition to what I have already done, I set out briefly the history and merits (as distinguished from the formal grounds already stated) of the party's claim. The party's debt was contracted for services rendered during the period 1906-1911. In the former year Mr. E. T. Atkinson conceived the idea of forming the company with the object of acquiring its present rights. To that end he engaged the original members of the party (including the four named above) to assist him in acquiring the rights and generally in floating his undertaking. These members rendered Mr. Atkinson faithful and exceedingly valuable services, and it can safely be said that but for their assistance he would never have acquired the rights or floated his undertaking. Two of the members, Te Heuheu Tukino and Mr. L. M. Grace, were actively engaged throughout the whole of the period mentioned ; the others were only engaged at the outset or intermittently.