29

I.—sb

Mr. Nathan pointed out to the Minister that the company were bound, under the Third Schedule of the contract, to dispose of their own and allocated lands under the land regulations of the Crown as to area for agriculture and pastoral sections, and a time within which they must be surveyed and offered to the public for sale. That they had made liberal reserves for public offices and schools, not only in townships but at cross-roads at every four miles. Consequently that the policy of the company was practically a similar policy to that of the Government. If the policy of the Government meant the settling of the people on the land—the agricultural in small sections and the pastoral in moderate sizes—then the aim of the Government was now being fulfilled by the company. It was true that, because of their present impecunious position, the same easy Government terms of deferred payments might not be given by the company to their purchasers, but by-and-by it was to be hoped that they would be able, when they had made more favourable progress, to sell on equal, or perhaps better, terms than the Government. Mr. Ballance wished to know why the former Government had not responded to the applications of the company for a fulfilment of the 11th clause. Mr. Nathan, in reply, said that, owing to the control of the Native lands passing from Mr. Eolleston to that of Mr. Bryce, as Native Minister, the claim had been in a manner ignored. Mr. Bryce had not been a party to the contract, and would not recognise that it was his duty to promote the company's interest by the purchase of Native lands to make up the deficiency of the allocation. Moreover, the company was informed that the Government had no money for such purpose. Mr. Levin also explained that originally Sir John Hall had taken the entire arranging of the company's contract, and assumed the direction of all the negotiations for that purpose, and upon certain changes of the personnel of the Cabinet, and his attention being diverted by other matters, the matters of the company fell under the control of the Minister for Public Works. Mr. Levin stated that, from his own knowledge, he knew that, when the company agreed to surrender its claims to the lands in the Forty-mile Bush, Sir John Hall recognised that it would be the duty of the Government to do their best to make up the deficiency from the blocks under proclamation ; and it was only from want of funds that no attempt was made to do so whilst the company's affairs were under his care. Mr. Nathan then read a copy of a letter, dated 22nd September, 1882, addressed to the Minister for Public Works, that had been written after several interviews with the Government relative to the company's claims, and which was sent in order that a record might be before the Government that the claim had been urged and recognised. No reply to the letter had been received, but the good intention of the Government to do something towards purchasing the lands was manifested immediately afterwards by the removal of their District Land Purchase Commissioner (Mr. Booth), and appointment of Captain Mair instead, it having been represented to them that the Natives were unfavourably disposed to Mr. Booth, and disinclined to enter into negotiations with him for the sale of lands. Mr. Nathan also read a letter addressed to the Hon. the Colonial Treasurer, dated the 13th February, 1882, suggesting that, as the Government had refused to make up the deficiency by a money-payment, they should insert a clause into the contract to the same effect and meaning as the 11th clause. Mr. Nathan stated that the Government adopted the suggestion, and clause 11 was compiled and inserted in the contract. This, he pointed out, was a proof in itself that the obligation to make an effort to purchase lands was recognised, otherwise there would be no meaning in putting the clause in. Certainly there were no words defining any specified lands or special efforts for the purchase, but from the simple insertion of the clause there was an implication that the spirit as well as the letter of the clause was to be carried out. Mr. Ballance said that ho had always considered that the company had got too large an allocation, and that the former Government had afforded it facilities for the acquisition of other Native lands which had enabled it to acquire large and valuable blocks, and these should be looked upon as part equivalent to the deficiency of allocated lands. It was then pointed out to Mr. Ballance that it was a mistake to say the former Government had afforded the company facilities for buying Native lands. All they had done was simply to define the boundaries of their own claims on certain blocks, and to revoke the Proclamation over the remainder. But that was opening up the lands to the world, and to allow any person to buy as well as the company, and was no concession to it. The success of the company's acquisition of these blocks was their good fortune in having Mr. A. McDonald as their land purchaser, and not because of any facility afforded to the company by the Government. Mr. Ballance asked why the company had not selected their lands from the forest reserves; that those were only proposed reserves, and had never been legally reserved ; and insinuated that the company had arranged to leave the hill-tops of the forest reserve and select the good lands. It was pointed out that the company had no option or choice in the matter; that the selec-tion-map was compiled by the Surveyor-General, and the forest reserves laid off by him unknown to the company ; that 113 simply defined the area of the Crown lands within the boundaries relative to the centre line of railway, as defined by "The Railways Construction and Land Act, 1881," and afterwards, jointly with a valuer appointed by the company, as required by law, assessed their value, and scheduled them accordingly. After some conversation as to whether the company could yet select in the forest reserve, it was understood that there was an uncertainty about the matter. Mr. Ballance promised he would consult the Surveyor-General, and after being fully informed himself on the whole subject of the interview, that he would lay the application of the deputation before the Cabinet for consideration as soon as possible, and communicate the answer.

The Secbetaby, Wellington and Manawatu Railway Company (Limited), to the Hon. the Ministeb for Public Wobks. Sir,— Wellington, 24th July, 1886. I have the honour, by direction, to make the following statement on behalf of this