21

G.-7.

for collection. The claim arises under a memorandum of agreement dated the 7th November, 1922, and was for services rendered and out-of-pocket expenses in connection with negotiations in connection with the Tongariro Timber Co., Ltd.'s enterprise, probably in regard to financing their undertaking. The latter claim is not, of course, covered by Sir W. G. Armstrong, Whitworth, and Co., Ltd.'s mortgage. Yours, &c, Luke, Cunningham, and Clebe, per W. H. Cunningham. ' CLAIM No. 11. The Tongariro Timber Co., Ltd., 6th December, 1929. The President of the Aotea District Maori Land Board, Wanganui. Sic, — As secretary of the Tongariro Timber Co., Ltd., I have to acknowledge receipt of your notice of the 15th November, 1929, purporting, upon the expiry of six months from the date thereof, to determine the company's rights under its agreements in respect of Tongariro timber blocks. The directors assume that this notice is given under the authority of the legislation of last session authorizing the Government to negotiate for the acquisition of the Tongariro Block. We may say that the company was quite prepared to carry out the terms of the project as promulgated by Mr. K. D. Duncan, which had the consent of the Native owners. The notice above referred to makes the carrying-out of the project quite impossible, as it is not practicable to complete the railway in terms of the notice. In view of the position above stated and of the proposed acquisition by the Government, we beg to submit for consideration the claims of the company and its creditors, which are as follow :— £ The company's capital .. .. .. .. .. 60,000 Claims of creditors as at 30th June, 1929 .. .. ..270,000 £330,000 The above does not include the arrears of royalty referred to in the notice. Yours, &c, Geobge Ross, Secretary.

Authority : W. A. G. Skinnbk, Government Printer, Wellington.—l93o.