L—3a

X

The Chairman informed the Committee thai a draft report had been prepared and would be submitted to the Committee Resolved, That the draft report be read and discussed in clauses. Clause (a). "The Committee has made inquiry into the facts referred to in parliamentary paper G.-l." Agreed to. Clause (b). "The purpose has been to ascertain the facts relating to the transactions of the (iovei -rmi! lit in connection with the Mokau-Mohakatino Block, with special reference to Mr. Massey's comments thereon." Agreed to. Cliiuse (a). " The following is a summary of the main facts set forth in the statement of the Government contained in the said parliamentary paper: — 'I. In September, 1908, Mr. Herrman Lewis, the owner of the Mokau leases, formerly held by Mr. Joshua Jones, applied to the Native Minister for an inquiry by the Native Land Commission, consisting of the Chief Justice and the Hon. Mr. Ngata, into the circumstances relating to the block, with a view to having the area disposed of under the Native Land Settlement Act, 1907, the respective values of the interests of the Natives and the lessees to be determined by some independent tribunal." Agreed to. " 2. In February, 1909, the Commission, then consisting of the Chief Justice and Chief Judge Palmer, dealt with the matter." Agreed to. '!. This Commission suggested that grave doubts existed as to the validity of the said leases, and reported against the adoption of the lessees' proposal." Agreed to. •■ 4. On the i'.Hh April, 1910, Mr. C. P. Skerrett, K.C., acting on behalf of the Native owners, gave notice to the Registrar-General of Lands, claiming £80,000 damages against the Assurance Fund, on the ground that the District Land Registrar had wrongly registered Mr. Jones's leases." Resolved, That consideration of this section be postponed. ■' 5. As the result of much negotiation, the Government decided that it was advisable to purchase the interest of the Natives and the lessees, which they believed could have been acquired for £1 per acre." Agreed to. '6. At this time the Government valuation of the whole block was £31,273, but the Government decided that it was advisable to have a further valuation made before it finally determined to purchase. This valuation was made by two Crown Lands Rangers from the New Plymouth office of the Lands Department, at the request of the Commissioner of Crown Lands, who acted under instructions from Mr. Kensington, Under-Secretary for Lands." Agreed to. " 7. The Commissioner of Crown Lands, in sending to Mr. Kensington the Rangers' reports, advised that the Government could not safely pay more than £26,000 for the land." Agreed to. " 8. Mr. Kensington then reported to the Government suggesting that it might lie advisable, in order to have the area settled, to pay from £30,000 to £35,000 for the whole estate, but , that there would be considerable risk of loss if more than £30,000 wiiN paid." Agreed to. " !). Tin Government decided that in the face of these reports it could not pay the sum of £53,000 for the property." Agreed to " 10. The lessee then suggested to the Government that it should purchase the interests of the Natives, and acquire the interest of the lessee compulsorily." Agreed to. "11. After consideration, the Government decided that it would not adopt this course, because, owing to the difficult legal questions involved as to the validity of the leases, it would probably have to pay the Natives on the assumption that the title to the leases was doubtful, and the lessees on the assumption that the title was good. It was felt to be impossible to form a reliable estimate as to the amount nf compensation the State might be called upon to pay." Agreed to. " 12. On the 20th September, 1910. Mr. Skerrett, on behalf of the Natives, wrote to the Native Minister urging that an Order in Council should be issued under section 203 of the Native Land Act, 1909, permitting his clients to sell their interests to the lessee, undertaking that if the Crown agreed to this course the lessee would enter into an agreement to subdivide the land within three years from the date of purchase in areas not exceeding those prescribed in Part XII of tin-