13

Gr. 7

This concludes the exposition of the chief merits of the party's claim. It also concludes the general presentation thereof, and it now only remains for me to commend the claim to the earnest consideration of yourself and of the Government. I shall be glad if you will kindly advise me of any further action that may be required to be taken by the party, or by me, in connection with the claim. I have, &c., W. 11. Grace.

CLAIM No. 8. Box 1496, Wellington, 9th January, 1930. Judge Browne, President, Aotea Maori Land Board, Wanganui. Sib, — Re Tongariro Timber Go. In pursuance of the provisions of section 29 (6) of the Native Land, &c., Amendment Act, 1929, I beg to present to you the claims of myself and of a syndicate known as the " Duncan syndicate." As you will no doubt anticipate, our claims are for services rendered as the promoters of a proposed new company, to the Tongariro Co., to the owners of its territory and generally to all persons interested in its undertaking. Before proceeding to state the grounds and the particulars of our claims, I think it would be as well if I first sketched briefly how the syndicate came into being, its aims and objects, the composition of its membership, the measure of success achieved by it, and its history generally down to the time when the above Act came into force. The syndicate was formed early in 1928 as a result of my having secured an option over the Tongariro Co.'s rights and concessions, and also as the result of overtures which I made to the then Native Minister in February of that year (see copy of correspondence of that month which passed between the Native Minister and myself). The aim and object of the syndicate was to form the new company, and to procure the subscription or the guaranteeing of its working capital. The objects of the new company were :■ — (1) To take over the rights and obligations of the Tongariro Co., subject, inter alia, to the payment of all royalties (including arrears) payable to the owners of the timber territory under its agreements. (2) To build the railway-line stipulated for by the agreements in accordance with a standard higher than that laid by the agreements, but lower than the standard laid down by an Order in Council issued in 1921. By way of a return for this modification, the royalties payable to the owners under the agreements were to be increased approximately 20 per cent. (3) To settle with the Tongariro Co. and its creditors in a fair and equitable manner. (4) To place the whole undertaking, as taken over from the Tongariro Co., on a sound and satisfactory basis. The new company was to have an actual working capital of £300,000, which would have been more than sufficient for all its requirements, and which would have been raised per medium of a series of debentures carrying 10 per cent, and other benefits. The new company was not to be formed until at least £240,000 of the £300,000 had actually been subscribed or guaranteed. The syndicate was composed of the following gentlemen : — Managers and organizers— (1) Myself, who undertook the general conduct, management, and organization of the syndicate's whole undertaking. (2) Mr. W. H. Grace, of Wellington, who undertook the organization of the Native side of the undertaking, and also assisted me generally. (3) Mr. R. W. Smith, of Ohakune (ex member of Parliament), who undertook the organization of the milling side of the undertaking. Guarantors and underwriters— (1) Messrs. B. H. Edkins, D. M. Findlay, J. G. Duncan, A. D. S. Duncan, lan MacEwan, E. 0. Hales, G. Magnus, A. Pirie, R. B. Martin, George Ross, Wellington ; Mr. R. W. Smith, Ohakune ; and myself, who among them guaranteed £84.000 of the new company's working capital. (2) The New Zealand Underwriting and Development Corporation, which, subject to the liability of the guarantors just named, and also any other that may be secured, underwrote the first £200,000 of the £300,000 working capital, and procured the actual subscription of a considerable amount thereof. By the end of October, 1928, the measure of success achieved by the syndicate was as follows : — (1) It had been arranged for the subscription or guaranteeing of £240,000 of the working capital. No difficulty would have been experienced in raising the remaining £60,000 if required. (2) It had secured the consent of the Native owners of the timber territory to the modifications in the standard of the railway-line referred to above (see copies attached of memorandum dated the 7th September, 1928, from Hoani te Ileuheu and 149 others to the Native Minister, and of memorandum dated the 10th October, 1928, signed, inter alia, by Mr. M. 11. Hampson and Mr. W. H. Grace, as the representatives of the Native owners).