31

D.—4a

" (Telegram.) " Be protest against proclaiming mining reserves, the Government is acting strictly within terms of contract in proclaiming reserves. The reference to company of plan and particulars of land intended to be reserved is, as you are well aware, a matter of courtesy, not that Government by terms of contract are in any way bound to submit same to you. On receipt of any application for time to make inquiries as to any particular blocks of land proposed to be reserved, I shall always be prepared to give same fair consideration. "B. J. Seddon, Wellington." Then, there is a reply telegram from the manager to the Minister : — " (Telegram.) " Westport, 29th September, 1891. " Am aware you considered reference of reserves to company matter of courtesy, but think company clearly entitled to object either before or after proclamation, and more convenient for all if done before, therefore apply for month's notice of all not gazetted. Area of 250,000 acres is, I consider, far greater than required, and will seriously impede settlement and people's use of land. "Bobert Wilson, General Manager, New Zealand Midland Bailway Company (Limited)." It would seem that by this date some 250,000 acres of land had been proclaimed. Sir B. Stout: No ; proposed to be reclaimed. Mr. Hutchison : At any rate, either proclaimed or proposed to be shut out from selection by the company. Sir B. Stout: We had that amount down to 1892. Mr. Hutchison: I dare say that Mr. Wilson will be able to give the exact figures. On the 29th October the manager writes to the Minister as follows : — " Mining Beserves. " Sir, —With reference to your letters of various dates indicating blocks of land which it is proposed to set apart as mining reserves under the contract, I have again to call your attention to the fact that all these blocks contain lands which cannot possibly be required for gold-mining purposes ; and. I would specially refer to your letter of the 27th instant, indicating the eleventh block which it is proposed to reserve, which includes Kelly's Bidge, and extends across the route of the railway down to the Teremakau Biver. This blocks covers much too large an area, and there is no probability of the land being required for gold-mining purposes except in the immediate vicinity of the reefs. I protest, on behalf of the company, against lands being wrongfully included in the reserves, and shall require to have the blocks reconsidered, and, if necessary, to have evidence produced before arbitrators as to whether or not they are requisite for bond fide goldmining purposes." So we find thus early that the difference was considered so serious as to point to arbitration. I have only two other letters that I would read in this connection. The correspondence was very voluminous, but I have selected only those letters that seem to be important as marking the steps in the quarrel. The first is from the Minister to the manager, on the 13th July, 1892, and refers specially to clause 33 of the contract, but, as it also bears on clause 16, I quote it in this place. It is as follows :—■ "Midland Baihvay. — Application for Assessment of Land under Clause 33 of the Contract. " Sic, —In reply to your letter of the 22nd April last, forwarding, for assessment under clause 33 of the Midland Bailway Contract, an application by Messrs. Loughnan and Halley for a piece of land containing 50 acres, situated in Block 11., Waitahu Survey District, I am now directed by the Minister for Public Works to inform you that the land in question is within one of the proposed mining reserves, and is therefore not available for selection under clause 16 of the said contract. The application cannot therefore be entertained." Then, as indicating something different from the, tenor of the previous communications—as indicating that much had been problematical as to these reserves being required—l would quote a letter from the Minister of Public Works to the manager, dated 23rd February, 1893, which purports to deal with some mining reservations being necessary for " actual " working :-— " Be Mining Beserves. " Sic, —I have the honour to acknowledge your letter of the 13th ultimo, with regard to the reservation for mining purposes of 5,170 acres of land in the Waimea Survey District proclaimed in Gazette No. 101 of the 29th December last, and in reply to state that, as there are at the present time actual gold-workings upon the land, it was considered desirable to immediately reserve it as required for bond fide mining purposes and the several purposes connected therewith or incidental or conducive thereto." That is all the correspondence I would quote in connection with the mining reserves. What I have read indicates clearly that these Proclamations were from the first protested against by the company through its representative, apart from any legal objection as to their validity, as having been made greatly in excess of actual requirements, which, I repeat, restricted the operation of subclause (c) of clause 16. I would like to mention, before leaving the subject of mining, that while the company had no right to gold or silver in any lands it had a right to the coal deposits which are known to be in some of the lands which were made the subject of these mining reserves. There is known to be coal there, which the company had a right to select and develop under the terms of the contract. Sir C. Lilley : You mean to say they had a right to the coal, although the same lands might have to be leased? Mr. Hutchison : Yes; all the land within the authorised area was, subject to certain exceptions, open to the right of selection by the company. Sir C. Lilley : Kept out for the purpose of the contract ?