1.-16.

38

M. MYERS.

119. In the event of Parliament passing an Act based on the draft Bill submitted by the Ethelburga Company, do you think the company will be prepared to accept the terms and proceed with the works within a reasonable time —say, within twelve months or so? —The answer to that may depend on whether or not the Onakaka people will come in. 120. Suppose they do uot come in: suppose they stick out for an unreasonable price?— 1 am not in a position to answer that, and f do not know that it is. quite fair to the Onakaka people that I should go into that aspect of the matter now. 121. Would the Ethelburga Company, then, be prepared to allow the terms to be accepted by the Onakaka Company to be left to arbitration?—l cannot answer that. 122. I mean, as between the Onakaka and Parapara people? —Oh, well, the Ethelburga Syndicate does not mind. It is prepared to give a certain consideration which was agreed to last year. Possibly one party or the other may think its property is worth more. 123. You are looking at the matter from the Ethelburga Company's point of view, and I from the point of view of the country. You admit that it is in the best interests of the country to establish the iron and steel industry? —We think so. 124. If Parliament considers that to "be in the interests of the country, do you think it should allow the Onakaka Company to stand in the way by asking an unreasonable price, and so prevent the establishment of the industry? —We must not forget that the Onakaka people have a lease and they have certain rights, and those rights cannot be taken ay/ay from them unreasonably. 125. If they would not come in at a reasonable price or submit their case to arbitration, would not the country be justified in giving a subsidy to the Ethelburga Company-without considering them? —I quite agree with that, and it is possible, for all 1 know, that the Ethelburga people, in those circumstances, might be quite satisfied to go on with the Parapara property alone; but I cannot bind them to that. 126. Do you think the Government would be prepared to consider any proposals submitted by any company if they were not fair and reasonable to the people of the country?—No, I certainly do not. I have admitted throughout that the onus is upon us to show that our proposals are reasonable from the country's point of view. 127. Mr. Thomson referred to Dr. Bell's report in which he said that the iron-ore deposits of the world are likely to become exhausted in about fifty years : do you think there is anything in that theory?—l cannot answer that. 128. Do you think that the proprietors of the iron-ore deposits of the world would be selling at present prices if they anticipated anything of the kind ?—I should hardly think they hold the same view. They would be doing something more to conserve their deposits, I should think. 129. Do you know the working-conditions of the present Parapara lease? —I have them here. I read them to the Committee. • 130. When I was Minister of Mines I sent you notice when you applied for a reduction in the number of men to be employed ?—You did not send the notice to me. 131. To the company? —The Parapara Company. I do not know anything about the Parapara Company. I have not been acting for them. 132. So you cannot say whether the Mines Department informed you that that would be the last concession you would get?—l do not know if any concessions were made. They were not made to us. We are not the holders of the property. They would have been made to the Parapara Company. 133. Do you know whether the Parapara Company applied to the Warden once a year for a reduction in the number of men required to be working?— Mr. Smythe would have to answer that —I cannot. 134. The Do you know who the representative of the Parapara Company in New Zealand is? —It is a New Zealand company. Mr. Smythe can tell you all about it. Mr. Hepworth is the secretary, I understand, in Christchurch. 135. Hon. Mr. McKenzie I] What you call the Parapara lease is really a mineral license? —Yes. 136. Is it not a legal condition of all mineral licenses that they must either be worked or become forfeited? —No doubt that is so. Ido not know that you and I would agree as to what is meant by the term " worked." 137. It stipulates in the lease?— Yes, there are stipulations in the lease: there are conditions. 138. Mr. Sidey.] I understand that this Ethelburga Syndicate is not a company in existence? —Oh, yes, it is. It is the Ethelburga Syndicate (Limited), and it has interests in different parts of the world. It has acquired the option over Parapara, and its idea, if these proposals are accepted and the Bill passes, is to form a subsidiary company, but a very large company, for the express purpose of working the New Zealand business. It would be a separate company. . 139. Is the syndicate interested in other iron-manufacturing works? —Not directly, I suppose. Mr. Witheford: No; they have a number of big ironmasters associated with them, but they have no ironworks of their own. 140. Mr. Sidey.] How did the company come to enter into negotiations in connection with Parapara? —Mr. Witheford was in London, and he introduced the property to them. 141. Have they had agents out here at all?—I think not; but they have had the opportunity of seeing Dr. Bell's reports and numerous other reports, and I should think, as Dr. Bell has been in London now for a year or so, that in all probability they would have seen him personally. I know they have had considerable material before them, all of which has been considered by their expert advisers. 142. When you say "material," you do not mean samples of ore? —I do not know about that.