G.-~ 7

(d) The holders of the £20,000 series of mortgage debentures carrying 7 per cent, interest charged on the Western A area will receive £20,000 of debentures in the new company in full satisfaction of their charge and debt. (c) The remaining £100,000 of debentures will be divided among the outstanding creditors in manner set out in the Schedule attached hereto, and in full satisfaction of all and singular their respective claims. 8. If thought advisable, a series of £50,000 A debentures may be created which will take priority of the £300,000 and the £200,000 series mentioned above. This series must, however, only be used for the purposes of procuring temporary accommodation from banks and like institutions, and will carry the current bank rate of interest. 9. The management of the business and affairs of the new company will be vested in a Board of five directors, who will comprise, say, a representative of the Government, a representative of the Native owners, a representative of the other shareholders, and two representatives for the holders of the £300,000 series of debentures.

THE SCHEDULE.

CLAIM Nos. 9 and 10. Wellington, 28th May, 1930. Messrs. Marshall, Izard, Barton, and Wilson, Solicitors, Wanganui. Deab Sibs, — Re Tongariro Timber Co., Ltd. In reference to the writer's conversation with your Mr. Izard on Saturday last, the amount due by the Tongariro Timber Co., Ltd., to Sir W. G. Armstrong, Whitworth, and Co., Ltd., is £13,171 lis. 6d., together with interest for several years, which will bring the total amount owing to over £15,000. The debt is secured by a memorandum of mortgage over certain of the Timber Co.'s concessions, and particularly over the-route of the proposed railway, which was, we understand, transferred for an estate in fee-simple to the Tongariro Timber Co., Ltd. We are now examining the position of the title to the interests comprised in our client company's mortgage, and if you require any further information in reference to our client's security we shall be pleased to supply same. We presume that the A.otea Maori Land Board will eventually desire to clear up all outstanding interests in the various blocks, and no doubt a settlement with our client company for a release of its mortgage could be arranged. In addition to the amount due to Sir W. G. Armstrong, Whitworth, and Co., Ltd., there is a claim for £1,787 17s. 6d. due to the Anglo-French and Belgian Corporation, Ltd., by the Tongariro Timber Co., Ltd., in respect of which Sir W. G. Armstrong, Whitworth, and Co., Ltd., were acting as agents

20

! Amount of Debentures allocated Creditors. in Full Satisfaction of all Claims outstanding. £ Heuheu-Grace party (including Era te Kuru) .. 36,000 Findlay and Moir .. .. .. .. 4,200 R. B. Martin .. .. .. .. .. 1 3,200 George Ross .. . . .. . . . . 3,000 L. M. Grace .. .. .. .. .. 600 Andrew Gray .. . . . . .. 2,000 Gray Bros. .. .. .. .. .. 1, 500 F. St. Hill .. .. .. .. .. 800 E. T. Atkinson .. .. .. .. 4,000 Sir John Findlay .. .. .. .. 1,000 Wilfred Findlay .. .. .. . . 4,000 J. E. Fulton .. .. .. .. .. 4,000 F. W. Frankland .. .. .. .. 400 Chapman, Skerrett, Tripp, and Blair .. .. | 500 R. W. Holmes .. .. .. .. { 230 E. G. Atkinson .. .. .. .. 1,035 H. Clifton .. .. .. .. .. 200 Egmont Box Co. .. .. .. .. 13,000 Armstrong, Whitworth, and Co. .. .. 8,000 Cammell, Laird, Ltd. .. .. .. .. j 5,000 A.D.Riley .. .. .. .. .. 1,050 Sundry small debtors, pro rata to their claims .. 580