It. KEENE.]

9

I.—sa.

12. Can you tell us when Mr. Russell came into the transaction ?—Well, I should say, about twelve months ago or a little more. 13. Do you know whether Mr. Ballan was offering any of the land to the Crown or whether the Crown was trying to negotiate for any portion of the land?—l heard nothing about it. The Hist I heard about it was from Mr. Russell himself. 14. Did you receive any information that Mr. Ballan was disposing of this land to Mr Russell prior to hearing from Mr. Russell himself?—No, I did not. Mr. Russell told me he purchased it. 15. Mr. Statham.] I suppose you are familiar with the property?—l know something about it, yes. 16. Do you know the piece purchased by .the Government ?—Well, I have heard about it— I have not seen it. 17. You cannot give us any idea of the value?—No, I can give no idea of the value. 18. In your opinion would (he formation of that road be of anv benefit to Mr. Ballan's property ?—lt would be to the Runanga Block. A road through it would be of great value to it. 19. In what way?—To enable the property to be subdivided to a road. 20.- Would it assist subdivision ?—lt is bound to assist subdivision. _ 21. Had you ever contemplated getting a road put through?—No. We just simply used it for grazing purposes lor stock and cattle—the whole block. 22. Do you know I!,manga No. Ib—the Native block above that?—l have heard it is verv good. I have not been on it. There is some bush on it. _ 23. You cannot give us any idea as to a comparison between the value of one and the value of the other I '—No. I got others to look at the block and report, but I did not go on it mvself. 24. You have not seen the property ?—No, I have not seen it in my life—l have not been within forty miles of it. 25 Mr. Guthrie.] You and Mr. Reid became purchasers of this property about five years ago !—- Yes, roughly, five years ago. We bought it from a Air. Crawford in Auckland. 26. Then ycu sold to Mr. Ballan?—! sold my half share to Mr. Reid, and he sold to Mr Ballan. 27. Do you remember when that sale to Ballan took place?—Well, [.could not o-i ve vou the date. It is over two years ago, I think. 28. Was it in 1910?—It would be somewhere about that, probably. 29. You retain an interest in the block by holding a mortgage over it?—What happened was this : I sold my interest to Mr. Reid; he exchanged the 66,000 acres with Mr Thomas Ballan 7/oi P nn£ erty 1 i]1 r Bll '" hei " 1 of 1 ; , - 00 ° aoreg. The value of Runanga at that time was assessed at £21,000, including stock, cattle, and all implements. In the settlement of accounts between Mr. Reid ami myself' there was a balance of £7,000 left owing to me, and I agreed with Reid to take a mortgage over portion of the Runanga Block for that amount, and 1 took a mortgage tor that When the portion was sold to the Government Air. Russell came to see what I would release that portion tor, and I said 1 wanted Ids. an acre to release it. 30. You sold to Reid, ami Reid sold to Ballan? —Yes. 31. And you retained a mortgage of £7,000? —Yes. 32. Who was the mortgagor to you? —James Ballan. 33 You have said that you knew nothing about anv transaction of sale to the Government or anything like that?—That is right. 34. Did you know of any sale from Ballan to Russell at the time? No. 35. When did Mi-. Russell come to you to ask vou if vou would be prepared to release Dart of your moitgage?—l could not give you the date. F 36. Was it about June, 1910?—Probably. My solicitors would be able to state that, because 1 referred him to them. _ 37. A statement has been made that it was on the 2nd June, 1911?—! am not-sure but it is in writing, because I think a letter was written to that effect, 38. Well, that was the date mentioned. Tf that date was mentioned do vou think that would be the correct date?—Possibly it would be. 39. What did Mr. Russell come to see you about on that date?—He wanted to see how much an acre I would release the mortgage for. 40. Therefore on the 2nd June, 1911, Mr. Russell having come to you to make those inquiries you would naturally think Mr. Russell must be in some way or another connected with the block —J do not know. He told me he was the owner. I do not know whether it was on that date' \\ hen he came to see me he told me he had purchased it, and he was the owner -Yes'' " y ° U haYe all ' eady pUt • Vo '"' name t0 a stllt er»ent like that it is bound to he correct? 42. Well, you have signed your name to a letter to that effect ?—AVell if that is so It i« quite correct. ' 43. Then Mr. Russell was practically the purchaser on the 2nd June, 1911 ?—Yes I have had no communication with Mr. Ballan since Mr. Russell spoke to me y es ' f WaS ° nlj a matter of arranging on what terms you would grant the release?— 45. You made your terms with Mr. Russell and nobody else?—Yes Iwn /'''■ R ' W .\ Smit %) Woul(1 if not be P" ssibk !«'■' Mr. Russell at that date only to have brheTotehTha-d pSaseaT * * *are - it would have been possible, 2—T. sa.