B. KEENE.J

11

L— sa.

76. How much an acre did you value the Runanga property at?—l should think ss. or 6s. per acre. 77. Then you would be surprised to hear that £2 10s. per acre had been obtained for this 1,404 acres alongside of it?—l have heard it has been obtained. It may suit the Government to get that block foi some purpose. You very often have to pa)- more than it is worth under those circumstances. 78. If you had been offered, say, £.1 per acre for that 1,400 acres, would you have been inclined to accept the offer without seeing it? —I suppose I would. 1 may have" got a report from some one. 79. But would you have thought it was lair value?—l should think so. 80. And if you had been told, in addition, that there was to be a road run up through the land you were selling, would you have considered that an additional inducement to sell? —Yes I certainly should. 81. How long did you hold the land?—l could not say, but probably it would be between three and four years. lam not sure about the dates from memory. 82. Did it increase m value during those three or four years?—Well, 1 think it would have. We had some put down in grass and a lot of fencing put up. It is bound to have increased in value. 83. Would you have considered 15s. an acre a fair value for this 1,400 acres?----! do not think I will express an opinion, because before selling 1 would want to send some one up to have a look at the place. 84. When you bought that land did you consider there was any land m that vicinity worth over £1 an acre?—No, I did not. 85. When you parted with the land did you know that any negotiations were going on by the Government for a road? —Not when we sold it, no. 86. That was about two years ago—in 1910, was it?—-Yes, I suppose it would be. 87. You were not aware there were any negotiations going on then? —No, not for the purchase of the land. 88. What is the amount of your mortgage interest now !—lt is reduced. It is £6,000-odd. 89. AVould you have to be consulted in connection with the transfer of this piece of land?—l had to sign a release. 90. Have you done so?—Yes, long ago. 91. VVhat consideration were you to get for releasing:!—! got 10s. an acre for the f,404 acres 92. Who asked you to release it?—'lhat was arranged with Air. Russell, I think , L 9 ,?' A n le 5'° u sure [t was arranged with Mr. Russell?—l arranged to 'release at 10s. per acre with Mr. Russell. r

Rawdon St. John Beere examined. (No. 6.) 1. The. Chairman.] What are you?—A solicitor. 2. Do you know anything about the Runanga No. 1a Block?—Yes. 3. Will you state what you know?—That would take a, long time. 1 received a subpoena to come here this morning about half past 9, and 1 have not brought any facts along with me 4. What was your connection with this land?—! was acting as solicitor for Mr Keene 5. Hon. Mr. Buddo.] In what way did Mr. Keene get you to act for him in connection with this property ?—He got our firm to act m 1908 when he purchased the property. 6. Was it with regard to the purchase?—Yes. (. Had you anything to do with the arranging of the mortgage on the land ?—There was no mortgage then arranged—lie paid in cash. .8. What date was that?—ln January, 1908. 9. Did you subsequent to that date have any connection with the property?—No 10. Are you able to express any opinion m regard to the carrying through'of the transaction as to whether the property was bought on such terms and conditions as would be applicable to the sale of such a property?—l do not understand the question. 11. Was the property purchased at that time as a straight-out cash transaction ?—No part ot the purchase-money was secured by other lands : it was an exchange. 12 Have you any reason to believe that the land was valued as on the equity of exchange or on its fair value?—l think it was on its fair value. g 13. There was no consideration given other than the exchange?—No. 14. No.cash passed?—Yes, there was cash paid and other lands. Properties in Wellington were given, and cash, making up the value that the Runanga Estate was assessed at 15. In your opinion was the equity in the Runanga property assessed according to its market vy.llie $ —Yes. 16 Mi: Witty.] Have you been acting as solicitor for Mr. Keene right through the transtiction { —xes. 17. Do you remember the transfer to Mr. Ballan?—Yes. 18. Mr. Ballan, of course, had a mortgage from Mr. Keene? Yes 19. When did Mr. Russell come into the transaction?—About June of last year 1 think 20. You are not certain.of the date?—No, I have not got the date with me 21. Do you know if there was any negotiation between Ballan and the Crown in regard to the question of severance?—l know nothing at all about that R 2 n. M M F Z\7' ] WaS the mort S a g e on this Property by Keene to Ballan transferred to Mr. Russell?—Mr Ba lan gave a mortgage to Mr. Keene for so-much, and the property was transterred subject to the mortgage. J