7

D.—B.

lam under the impression that conditional Crown grants are not issued. I am, of course, stating not the words, but the substance of what I said. My view was this: that the Government would not object to Mr. Broomhall's transferring his interest; that, indeed, they supposed he would do so; but that they would object to his making the transfer and receiving the profit before the Government had an opportunity of satisfying itself as to the intentions of tho Company, and that in any case, whilst any doubt existed, the shareholders' money could not be parted with. I had been constantly iv communication with Mr. Broomhall, and assisted him in preparing his prospectus; but I had never seen the agreement made with the Company, nor the documents on which Mr. Broomhall relied for his agreement with the Government. Constantly, when I was making suggestions and alterations, I told Mr. Broomhall that he must refer to his lawyers for a precise opinion as to the nature of his agreement. When I read the document to which I have referred, it seemed to me the agreement was sufficiently general not to preclude the Government from amplifying it, and that it was especially likely they would do so in respect to transfer or assignment. Clearly, if there was the slightest chance of this, the Company could not part with its money until satisfied on the point. The Directors, some of whom were interested in the proposed payment, all agreed with me, excepting Mr. Broomhall. I have, Sec, Julius Vogel, The Hon. the Minister of Lands, Wellington. Agent-General.

Enclosure 1 in No. 17. Mr. Broomhall to the Agent-General for New Zealand, London. Sir, — The Manor House, Penge, Surrey, 12th March, 1878. Mr. Isaac expressed to me some short time since, on information alleged to have been received from you, that the New Zealand Government would add conditions to the Crown grant, in re the sale to me of 50,000 acres of land, foreign to those expressed in tho resolution of the Auckland Waste Lands Board of 17th January, 1877, and that of the Secretary of Crown Lands, as expressed in his letter of 27th January, 1877. So long as Mr. Isaac confined himself to verbal expression of his views I paid no attention to them. He has now placed them on record, aud, as they agree with those you expressed to me in person, when you intimated that I had no power to assign, and that the Government of Sir George Grey may decline to confirm the arrangements of its predecessor in the sale to me of 50,000 acres of land, I have addressed a letter to the Government of the colony requesting a draft of the Crown grant may accompany the plan. I enclose to you a copy of the letter, which I shall post by the next 'Frisco mail. Tou will thus have ample time to express your views to the Government; I have never understood them. I maintain that my agreement gives me ample power to sell large or small farms, on the receipt of the Crown grant, free from any restrictions except those which may be made between ourselves and our customers, and that the £12,500 in bonds is the penalty, and the only penalty, which the Government is entitled to for any failure of building, importation, or cultivation in the six years. I have, Sec, Sir J. Vogel, K.C.M.G., Agent-General for New Zealand, London. J. Broomhall.

Enclosure 2 in No. 17. Mr. Broomhall to the Secretary for Crown Lands, Wellington. Sir,— Tho Manor House, Penge, Surrey, England, 12th March, 1878. I beg to refer to your letter No. 153, of the 27th January, 1877, in which you intimate that, on the settlement of sundry Native matters as to claims and survey, His Excellency the Governor will be advised to approve of the price, terms, and conditions agreed to by the Auckland Waste Lands Board for the sale to mo of 50,000 acres of land. The conditions of sale are 10s. per acre, in addition to which I am to import 666 adult emigrants, build 166 houses, and cultivate 10,000 acres out of the 50,000 acres, and to do this in six years. As security for this importation, building, and cultivation in six years, I am to deposit £12,500 in New Zealand bonds with the Agent-General, on which a Crown grant is to issue to me, under which I can convey to purchasers large or small farms, giving them a good title, free from all restrictions except the reservation of precious metals for the Crown, and under which purchasers shall only bo accountable to me, or my associates, and not to the Government in any shape or form. If there be any failure in importing the 666 adults, building the 106 houses, or cultivating the 10,000 acres, the £12,500 bonds are to be forfeited ; but, if there is no failure, the £12,500 in bonds is to be returned to me or to my assigns. I trust you will allow me to remind you that one out of the six years has expired, and to request a corresponding extension of time may be added to the agreement covering that year, and also any further time that may elapse before the receipt of the plan of the said 50,000 acres. I beg also to request that a draft copy of the Crown grant may accompany the plan to this country for my approval, Sir Julius Vogel having informed me that I have no power to assign, and that sundry conditions may be inserted in the Crown grant which are not specified in the resolution of tho Auckland Waste Lands Board. I have informed Sir Julius Vogel that the terms of the contract are distinctly set forth in the resolutions of the Auckland Waste Lands Board, and that the essence of the agreement is that the Crown grant, as the root of my title, shall give me power to sell in this country or elsewhere large or small farms, free from any restriction except the reservation of precious metals to the Crown, and that the purchasers shall only be accountable to me and my associates, and not to the Government. I have told Sir Julius Vogel that the insertion of any conditions whatever in the Crown grant tending to fetter or restrict the sale of the freehold will be conditions to which I hare not agreed, and to which I will not consent.