33

D.—4a

Sir B. Buenside : It is handed in to us as part of the proof ? Mr. Hutchison: Yes; and the Court will see that the reservations lay along one side of the line of railway from Brunnerton to Beefton. There is a narrow strip of land uncoloured along the river, indicating the lands previously alienated by the Crown. Outside that narrow strip the Proclamations took effect. They could only be made in respect of land not alienated. The railway ran along the valley. Sir B. Buenside : And those coloured yellow, you say, are the properties infringed upon ? Mr. Hutchison : Yes. Sir B. Buenside : The white is the alienated land. Mr. Hutchison : Yes. The Crown as to all land had the right of resumption for mining, reasonable compensation being paid. The Proclamations took effect on the lands immediately behind the freeholds. Sir B. Buenside : Do I understand the railway was constructed through the private lands? Mr. Hutchison: Yes; the route follows the river, along which are the alienated lands. The mining reserves are on the foot-hills and in the gullies behind the private lands. It will be seen from clause 18 of the contract that the right of the company over the mining reserves to timber was subject to certain exceptions, quite a number of them. Assuming that the Crown was right in proclaiming these reserves, or some of them, then the company had the option of selling the timber on these lands in lieu of other land; but that right was not to interfere with bond fide mining: and the clause provides further that the option should not be exercisable over land which, in the opinion of the Governor, was used or likely to be required for sawmilling purposes. Supposing the company said, "We wish to select the timber on this land which has been reserved for mining purposes," it was competent for the Governor to say that, in his opinion, the timber was required for sawmilling industries in operation at the date that the option was desired to be exercised. Further, the option could not be exercised if the timber .was, or was likely to be, required for holders of timber-licenses, or mining licenses, or for mining purposes. These are the exceptions; but it will be shown in evidence that, notwithstanding all these exceptions, the rights of the company were invaded by the Crown over lands the subject of Proclamations which resulted in great injury to the company. In mentioning the sum of £20,000 as damages in respect of timber rights, I desire to put it in the alternative, as covering the claim under this paragraph No. 2 and the next, which both relate to timber. Paragraph 3 relates to timber on lands not subject to reserves, and as to which the company complains that a large number of licenses to cut timber were issued by the Crown, so reducing the value of the land over which the company had the right of selection. Sir B. Buenside : Timber which was growing? Mr. Hutchison : Yes ; on land not proclaimed, and so reducing the value. Sir C. Lilley : It is not on the particulars. Mr. Hutchison: The company also complains that the Crown not only issued such licenses as I have referred to, but has been negligent in its duty to the company, inasmuch as it has not taken the proper and necessary steps to conserve the timber within the authorised area over which the company had rights to the exclusion of the Crown.' The position of this vast territory, over which the right of selection extended, was that of Crown lands subject to the jurisdiction of the Crown all the time. Sir C. Lilley : You could invoke the assistance of the Crown. Mr. Hutchison : Yes; that is part of our case. The Crown had a duty to the company. We say the Crown was bound to conserve those lands, because the interests of the company were being endangered, and the Crown was asked to protect them. N° °ne could interfere in the management of these Crown lands except the Crown. Sir C. Lilley : You say the company had rights ? Mr. Hutchison : They had rights. The whole area, as I was observing, was Crown land, locked up as it were with the key in the hands of the Minister of Lands, or of his officers having charge of the administration of the Crown lands of the colony; and we say that large quantities of timber have been cut and removed, not only under licenses and without licenses by individuals, but also for public purposes, such as railway-sleepers, for the Bailway Commissioners, the railways of New Zealand being the property of the State. Sir B. Stout: Do you say cut for the Crown? Mr. Hutchison : Under tenders let. Sir B. Stout: Cut by sawmillers and sold by the Crown. Mr. Hutchison: The Bailway Commissioners called for tenders, and the successful tenderers went and cut the timber off the Crown lands on the coast within " the authorised area," and delivered the sleepers to the Bailway Department. Sir C. Lilley : They were cut by the contractors for party purposes ? Mr. Hutchison : I have here an advertisement as to tenders for sleepers : — " New Zealand Bailways. — Supply and Delivery of Silver-pine Sleepers at Lyttelton. " Bailway Manager's Office, Greymouth, 18th November, 1889. " Written tenders will be received at this office up to noon on Saturday, the 30th November, for the supply and delivery of 10,000 silver-pine sleepers at Lyttelton. Specifications and forms of tender to be obtained at the Bailway-station, Greymouth, Brunnerton, and Stillwater. Tenders to be addressed to the New Zealand Bailway Commissioners, Greymouth, and to be marked outside, •' Tender for silver-pine sleepers." The lowest or any tender not necessarily accepted. " By order of the Commissioners. " W. Stone, District Manager." That evoked the following letter from the general manager of the company:—