35

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that the applicants had passed away, and it was not worth while going any further with them. A number of them were settled without any such arrangement as I indicated in my evidence, or nearly completed. Whether they were actually completed or not at this moment I have forgotten. 87. Is it not a fact that the company did not proceed with the applications under clause 33 which had been assessed and completed, and without reason as far as the Government were concerned ?—That is a mere matter of memory. You can easily find it out from the company's books. 88. Did not the company refuse to go on with the applications under clause 33 because it did not suit their finance to work under that clause —Yes or No?—I do not know until I look it up. 89. Can you say whether the company refused to go on as it did not suit their finance?—l do not know at this moment. 90. As a matter of fact, when the application was made under clause 33, it was debited to the Government in the books of the company, and charged as a selection ?—Yes. 91.. Was the money your money or the Government's?—lt would remain with the Government until such time as the company had earned enough land-grant to take it over. 92. In which case you had got the actual money but no increased value ?—The money. 93. Did you only get the actual purchase-money ? —Yes. 94. You did not obtain the actual value of the block until you were able to take up the whole block ?—When the value of the block was, say, 10s. per acre, and a piece was applied for, the Government had to assess the relative value of this piece to that of the block, and would put it, say, at 12s. 6d.; but if the Midland's selling-price was 15s. it was 15s. that was paid. 95. In the course of the ordinary working of the contract the company would have got an increased value on the B 1 block on the western land ?—Yes. 96. In the course of how many years do you suggest it would have been before the company was prepared to take up the whole of B 1 block on the western side ?—Of one. 97. Yes, of one of those in the Grey Valley ? —Two of them were taken up some time ago. 98. In the Grey Valley ?—Yes, at Lake Brunner. 99. Mr. Stringer: You call that the Grey Valley. The contract says you did not get the increased value until you took up the whole block. This letter I want to call attention to, as in it is suggested a reason why the company did not go on with the applications under clause 33, and which had already been completed, so far as the Government were concerned. [Letter of the 31st January read. Exhibit No. 87.] 100. I ask you, in the face of that letter, is it not a fact that the company refused to carry out these selections because it did not suit their finance?—l remember a letter now. That was the case, of course —what is stated in the letter. 101. From that time forth the company refused to proceed with applications under 33 ?—I think so ; but it was not very much longer. 102. As a matter of fact, I think the company went so far as this : as not even to send in to the Government for assessment the applications they received ?—-Since then, I have no doubt you are right. 103. Was it not a fact that the company issued a printed notice to applicants under this section that they should not receive them, and issued that in a printed circular to all applicants under section 33 ? —I doubt if it was a printed circular. I think it was a stereotyped answer. Hon. E. Blake : It would be convenient if we were to know, in this connection, what are the proposals of the company now before the Government. Mr. Stringer: The proposals referred to in 1893 were the proposals for a further contract. I think it was submitted to the parliamentary Committee in 1893. Witness : Yes. Hon. E. Blake : I am not aware that those have been put before me. 104. Mr. Stringer.] I think Sir Eobert Stout handed in a file of correspondence which embraces all the correspondence with regard to the further contract. With regard to the timber in the Grey Valley, I think you said, Mr. Scott, that there was a large extent of timber land in the Grey Valley which you regard as of very great importance to the company ?—What do you mean by the Grey yalley ? 105. I will give you a limit. Do you consider the timber on the mining reserves of great value? —Yes. Generally speaking, the most valuable timber lands are not exactly coterminous, but within the mining reserves. 106. You think the most valuable timber is within the mining reserves ?—With the exception of those two blocks on Lake Brunner. 107. Hon. E. Blake.] That observation applies to the 400,000 acres. You think those are generally within the mining reserves ?—Yes, a portion of them is. 108. Mr. Stringer.] The company have started sawmills?—Do you mean out of its own capital ? 109. I did not mean that ?—They gave licenses. 110. Have not sawmills been started on the company's lands?— Yes. 111. Hon. E. Blake.] They have been provided with timber out of the company's land also? —A sawmiller started there on a license enabling him to cut over a certain area. 112. Mr. Stringer.] I think they are all in the vicinity of Lake Brunner : are they not ?—The bulk were either on that land or the Hokitika line. There are some on the Grey Valley land. At first they started on the Grey Valley land, and subsequently on the Lake Brunner land. 113. On what lands on the Grey Valley did you start sawmilling?—There was one place called Matai, above Ahaura ; another at Snowy Creek, near Eeefton ; another at Mr. Perotti's mill, further up, and again near Eeefton. 114. Are those on mining reserves ? —I am pretty confident they are. If you will let me look at the plan of the mining reserves, I could say. [Plan handed to witness. No further answer.]