G.--7

18

(d) That the term of the aforesaid company's rights be extended by five years —that is to say, to the 28th day of February, 1966." (c) To consent to such alterations or amendments in the provisions of the aforesaid titledeeds as may be rendered necessary or equitable by aforesaid deviation, or by reason of any change or changes in general conditions that have occurred since the title deeds were, executed. 2. That it be a condition of such consent that the scale of royalty laid down in the aforesaid title-deeds and payable to Native owners shall be increased in manner following : — (a) For the period ending the 29th day of February, 1936—n0 increase : (b) For the period ending the 28th day of February, 1946 —from £11 ss. to £12 10s. per acre : (c) For the period ending the 29th day of February, 1956—from £13 2s. 6d. to £15 per acre : (d) For the period ending the 28th day of February, 1966—from £15 to £20. 3. That the present arrears due by the Tongariro Timber Co., Ltd., to the said Board be paid in cash on or before the 31st day of January, 1929. 4. That the Tongariro Standing Timbers, Ltd., provides for the obtaining of the consent of the creditors of the Tongariro Timber Co., Ltd., to the transfer to the Tongariro Standing Timbers, Ltd., of the assets of the former company to be transferred, to the latter company. 5. That on or before the 31st day of January, 1929, the Tongariro Standing Timbers, Ltd., shall be duly incorporated with a sufficient capital to carry out the construction of the first twenty miles of the projected railway. 6. That the goods of the Natives, including flax and timber produced by the Tuwharetoa Co., Ltd. (such timber not to exceed one million superficial feet per annum), will be carried on the company's railway at Government railway freight rates. 7. That no portion of the Is. 2d. per 100 ft. timber-tax leviable on the milling of timber shall be deducted from royalties payable to the Board. 8. That in any settlement with Mr. Bertram Philipps in respect of his claim against the Tongariro Timber Co., Ltd., by virtue of which he now holds certain, mortgages and debentures totalling approximately £30,000, the Tongariro Standing Timbers, Ltd., be empowered to pay him £12,000 in cash and 13,000 C debentures of the latter company, and no more. R. Smith. M. 11. Hampson. W. H. Geace. D. M. Findlay. Resolutions passed by the Ownebs of the Timbee Company's Tebbitoey at a Meeting held at on the Day op Febbuaey, 1929. 1. That as a final concession to the Tongariro Timber Co., Ltd., this meeting approves of and agrees to join in and support the project outlined in the memo, attached hereto. 2. That a period of six months from the 31st day of March, 1929, shall be granted — (a) For the making of the cash payments set out in paragraph 6 of the project. (/;) For the consummation of the project. The project shall be deemed to be consummated when and as soon as it can be shown to the satisfaction of the Minister in Charge of Native Affairs that the promoters of the new company contemplated by the project are ready to register the company, and that, when registered, it will have at its command at least £240,000 of the £300,000 working capital for which provision is made in the project. Provided, however, the Minister aforesaid may extend the said period by three months if he is satisfied that good and substantial progress has been made in carrying out the project, and if there lias been paid before the expiration of the six months aforesaid at least 25 per cent, of the cash payments aforementioned. 3. That, if the cash payments aforementioned be not made, and if the project be not consummated within the period or periods hereinbefore provided, then the project shall be deemed to be abandoned and all and singular the rights of the Tongariro Timber Co., Ltd., shall be finally cancelled and determined. 4. That the Tongariro Timber Co., Ltd., and its creditors must agree to the project and accept the terms set out therein. If that company or any other creditor refuses or fails to accept the provision made for it or for him in the project within a period of three months from the 31st day of March, 1929, then the company or such creditor shall be entirely excluded from any benefit under the project. To ensure that this will be so, the owners will stand ready to divest the Tongariro Timber Co., Ltd., of all its rights (by cancelling and determining them), and to vest the same or similar ones in the new company, subject to the terms of the project and the provisions made therein for the assenting parties, and to the conditions imposed by the two preceding paragraphs, but omitting from the project all provision made therein for dissenting parties— i.e., those who refused or failed to accept as aforesaid. 5. That six months' formal notice of cancellation of determination be given to the Tongariro Timber Co., Ltd. Such notice shall be so given as to take effect as from the 31st March, 1929, or the first day thereafter as can be conveniently arranged, but shall be withdrawn if that company and all its creditors accept the provision made for it and them in the project within the three months aforementioned and if the provisions of paragraph 2 hereof be complied with. 6. That the task of promoting and fomiing the new company and of raising its working capital shall be entrusted to the Tongariro Standing Timber Syndicate, of Wellington. This syndicate is itself engaged in a project which also concerns' the Tongariro Timber Co., and its project can, conveniently and advantageously for all concerned, be merged in the present one.