D.—4a

32

Mr. Hutchison : Yes, and no reservations could affect the right of the company to the coal anywhere within the authorised area. Sir C. Lilley : When they had made a selection ? Mr. Hutchison : Yes. Meanwhile the company had the right to have the lands so kept that it could select —that the lands with their wealth (other than gold and silver) should be conserved. Possibly my learned friend would like to know, before the Court rises to-day, the damages claimed by the company in respect of these reservations. Under this head the company claims, as damages for loss of traffic on the railway through the Grey Valley, between Brunnerton and Beefton, such an amount as might reasonably have been expected to have been earned, being an average of £4,000 per annum, on twenty years' purchase, or £80,000. The company further claims, for loss of capital on the construction of the railway through between those points, after giving credit for £100,000 as the value of the railway, on the basis of average earnings at the rate of £5,000 per annum, at twenty years' purchase, or £400,000. Damages under this head will also be included in the general claim which will be dealt with later on. I only give at present these two amounts as the claim specially referable to this head—No. 1 of the particulars. But, as I was saying, damages under this head will also form part of the general claim coming at the end. Sir C. Lilley : One and a quarter millions. Is that the general claim? Mr. Hutchison : The general claim includes this specific claim. Hon. E. Blake : You mean to say there are some further damages? Mr. Hutchison: Yes. The sum of £480,000 is the special claim under this head. Besides, the matters referred to under this head will affect the general damage, which I will deal with by-and-by. Sir C. Lilley : What is the general damage ? Mr. Hutchison: The combined result of a variety of grievances. The general and comprehensive claim will be referred to later on. The general amount is subject to all particular amounts. For instance, the general claim would be less by £480,000 under No. 1, and less by various amounts under No. 2, No. 3, and No. 4, which I will mention as I come to deal with them. I will also present the whole damage under a different arrangement, and endeavour to give as full details as possible. At present, what I have said will conclude my observations under paragraph No. 1 of the particulars of claim in the present arbitration. Sir C. Lilley : That concludes it ? Mr. Hutchison : Yes.

Tuesday, 26th Novembee, 1895. The Court sat at 10 a.m. Mr. Hutchison: I propose now to deal with the second paragraph of the particulars. Sir C. Lilley : You have finished the first? Mr. Hutchison: Yes. Sir C. Lilley : There is no claim, as I understand, in this matter for money or lands earned; it is all for damages ? Mr. Hutchison : Yes; that is all at present. Sir B. Buenside : You mean no claim for land specifically, or money? Mr. Hutchison: That is for the arbitrators to say. Sir B. Buenside : Under the contract there is no provision ? Sir C. Lilley : No; they are not to earn money, it is land. Mr. Hutchison : The second and third paragraphs of the particulars refer to timber, as will be seen, and may conveniently be taken together. The one is on the assumption that lands were properly reserved under subsection (c) of clause 16, and the other has reference to the destruction and removal of timber on the lands available for selection. Sir B. Buenside : You are addressing us on sections 2 and 3 ? Mr. Hutchison : Yes; but, as giving the Court an idea of the extent of the land which will be claimed to have been improperly reserved, I would hand in, for convenience of reference, a list which will be afterwards proved in evidence. It is a list of the Proclamations, giving the areas reserved. Sir B. Buenside : It is to be put in as part of the evidence by-and-by ? Mr. Hutchison: Yes; the Proclamations are fifty-eight in number, starting from the 20th August, 1891. Sir B. Burnside : Do you say they are properly made? Mr. Hutchison : No; but they barred our right of selection. It will be seen that the Proclamations range from the 20th August, 1891, to the 7th February, 1895, the latter, it will be observed, being a date subsequent to the date for the completion of the works as mentioned in clause 42 of the contract. Sir B. Burnrtde : You say it has barred the right of selection being properly made ? Mr. Hutchison : The Proclamations improperly barred the company's right to selection. Sir C. Lilley : You were barred? Mr. Hutchison: Yes; "prevented" is the word used. It will be seen, by reference to the dates of the Proclamations, how delusive the intervals of time were, as indicating any proper exercise of the right of reservation under the contract. The intervals are sometimes a week or so. Sir C. Lilley : You say it is bad faith ? Mr. Hutchison: Yes; having regard to the facts, and to the effect of these Proclamations along the route of the railway between Brunnerton and Beefton. It might be convenient if I were now to place a map illustrating the area covered by these Proclamations before the Court, as giving an idea of how the reservations affected the railway.