I. —16.

24

[J. DUNBAE.

233. Do you know whether we are nearer to the sea than they are in Australia, from Newcastle to South Australia? —I could not say without a map. 234. Mr. G. M. Thomson.] How much coal would it take to convert a ton of pig iron into wrought iron I —l could not give you the figures for that.

Joseph Smythe recalled. (No. 6.) . * 1. The Chairman.] I understand you want to put in another exhibit, Mr. Smythe? —It is a report en the Parapara property by Mr. Harley E. Hooper, a metallurgist and mining engineer of good repute, and who was a lecturer of the School of Mines at Adelaide for six years. [Report handed in.] 2. Mr. Myers.] The Parapara Company during the last few years has expended a good deal of money in ascertaining the value of the property and in other directions? —Yes. 3. Would you mind stating yvhat money has been spent?—l have it here in a letter from the secretary to me at the Royal Oak : it is as follows : —" Christchurch, 24th October, 1912. —J. Smythe, Esq., Royal Oak Hotel, Wellington.—Dear Sir, —Parapara: I am forwarding a few particulars of our expenditure on Parapara. As you are aware, the company paid the Public Trustee £23,000 for the leases —£11,500 in cash, and £11,500 in debentures at 6 per cent. In addition to that, £2,339 was spent on works at New Plymouth. Since the company was registered in June, 1909, we have paid out in wages at Parapara £6,167 2s. 6d.; rents and royalties, £842 17s. 7d.; reports on iron leases, &c, £308 Bs. 6d.; expenses incurred in connection with attempted flotation in London, &c, £1,456 14s. 10d.; salary, petty expenses, £588 4s. 3d.; legal expenses re titles, &c, £783 19s. Id." A total of £35,486. 4. Hon. Mr. McKenzie.] Mr. Smythe, you knoyv the Parapara lease and the locality and the beach? —Yes, very yvell. 5. Do you think an}- yvorks erected would be outside the lease altogether—between the boundary and the coast? —Yes; I should think they would be on the Maori lease before you get to the bridge. 6. That is outside of the Cadman lease and also the Washbourn lease? —Yes. 7. Just a feyv acres yvould be on the Washbourn lease? —There is no flat ground on the Washbourn lease. 8. There is no suitable ground on the lease itself for the erection of the works? —No suitable ground; they want it for the wharf, where all coal would come in. 9. Is not the ground on the lease all broken and steep?—lt would have to be made up. You want the base 50 ft. above the flat, perhaps higher than that. 10. Well, your ground now, where the face is—that is probably 100 ft. above the ground?— It is only 30 ft. above the sea. 11. In that gully, you mean?—3o ft. above the sea. 12. Where the tram-line ends, you mean —take away the water-race?—l should think, about 60 ft. 13. Your face is much higher than that? —Do you think it is? 14. Is it your opinion that there is any suitable ground on either of these places for the erection of works? —There is nothing suitable to be used. There is plenty of other ground just there to choose from. 15. By putting the yvorks on the lease anywhere yvould you not be putting them on ground which you yvould likely have to work out ? —Yes. If you take the first part of the lease you would have to put our works right near the sea —the very land we want to work out. 16. In the event of the buildings being erected outside the lease you yvould have to acquire land to erect them on ? 17. The Chairman.] And in that event, Mr. Smythe, the buildings would not be surrendered to the Government at the termination of the lease?—l think you will find that is in the lease. Mr. Myers: If buildings were erected upon land not included in the lease it is quite plain that under the lease those buildings, plant, and machinery upon the land would not go to the Government. Under the Bill they would go to the Government—the whole undertaking yvould go to the Government. The Chairman: 'Ihe whole property? Mr. Myers: Yes. Clause 4of the Bill reads: "At the expiration of a term of forty years from the passing of this Act all the property of the lessees in the goodwill, leases, tramway, furnaces, electric lines and fittings, wharves, buildings, and all other yvorks, erections, or appliances of every kind yvhatsoever used by them in connection with the production of iron and steel, shall pass to and become the property of the Government, without any compensation yvhatever being payable to the lessees for such property by the Government." That may be a matter for some sort of amendment. It is an important point, because it answers one objection at all events that Mr. Blow made during the course of this morning's proceedings.