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J. H. WITHEFoBD.

10. Did you continue as their representative, as well as the representative of the owners of the Cadman lease, until late in last year, at all events? —Well, I represented the Cadman Syndicate up to the time I had the money guaranteed for them, and afterwards there was some question raised and things were somewhat bung up; it was after that that the Onakaka people sent me a power of attorney and particulars, and desired me to sell their property at £30,000. 11. Until the end of last year you represented in London the owners of the Cadman lease? —Yes. 12. You also, from 1909 or thereabouts until towards the end of last year, represented Mr. lurnbull in London? —Yes. 13. I think from time to time you did attract English capitalists?— Three times I had the whole capital arranged to put the works up. 14. But difficulties arose on each occasion at this end? —Yes. 15. Did you during the early part of last year become acquainted with the Ethelburga Syndicate?— Yes. It was some time in 1910 that I first became acquainted with them. 16. Did you in August of 1911 succeed in completing an agreement between the Ethelburga Syndicate and Mr. Turnbull whereby the Ethelburga Syndicate acquired an option over the Onakaka rights until the end of last year? —Yes, that is so. 17. Did you also in September of last year succeed in completing an agreement between the Ethelburga Syndicate and the owners of the Cadman lease and Taranaki rights for an option over their rights?— Yes; I managed their business, but the Parapara attorneys signed the documents. 18. That option also expired at the end of December? —Subject to the Ethelburga Syndicate being satisfied with the legislation. If they were not satisfied and could not go on they could retire. 19. You mean that the Ethelburga Syndicate were only prepared to exercise the options if satisfactory legislation was passed?— That is so. 20. That legislation was not passed last year?—No, but they were informed by the High Commissioner that satisfactory legislation w-as being considered, and would be ratified by the next Parliament. That is why they sent me out. 21. It is a fact, is it not, that this v'ear the Parapara Company have reinstated their option of last year?— Yes. 22. Up to the present time the Onakaka Company have not reinstated their option?—l have not heard that they have done so. Mr. McLean was going to communicate. He is in favour of it. 23. Do you know whether the Ethelburga Syndicate are prepared to enter into an agreement with the Onakaka Company on the same terms as the agreement of last year?— Yes, those are the terms on which they are prepared to carry the business through. 24. You heard me state in my address to the Committee yesterday that the Ethelburga Syndicate are an English company composed of British shareholders : are you able to say that that is correct? —Yes. 25. Is it a well-known concern in London? —Very well known; one of the leading financial groups in London. 26. In 1905, when you went Home, did you obtain from the then Premier, or any one representing the Government, any letter as to what the Government would be prepared to do? I am referring to a letter from Mr. Reeves?— That was given me after I reached London under instructions from the Premier. 27. Have you a copy of that letter here?— Yes. [Copy of letter produced.] 28. May I read it :— "Westminster Chambers, 13 Victoria Street, London S.W., 27th September, 1905. " J. H. Witheford, Esq., M.H.R., Grand Hotel, Trafalgar Square, W.C. " Sir, —Referring to mineral lease issued to the Public Trustee as executor under the will of the late Sir A. J. Cadman, under the Mining Act Amendment Act, 1902, and the Mining Act, 1899, over 920 acres in the Waitapu Survey District, in the Provincial District of Nelson, in New Zealand, I have the honour to inform you that on a company being established by you on behalf of Sir A. J. Cadman's executors and trustees for producing iron or steel in the Colony of New Zealand from lands comprised within the said lease, and from other leases held, or to be held, by the parties you represent, at an initial cost of not less than two hundred thousand pounds (£200,000), my Government will be prepared'to place an order for 75,000 tons of manufactured iron and steel suitable for railway and bridge construction, at the rate of, say, 4,500 tons a year, on the fulfilment of the following conditions and stipulations :— " (a.) That the iron and steel are manufactured from magnetic or titaniferous ironsand or iron-ore, which, together with all material, fuel, and fluxes, are products of New Zealand. " (/;.) That the iron and steel rails are delivered at a price not exceeding the prices at which similar classes and descriptions of iron and steel rails can be procured in the English market, with cost of freight to the colony added thereto. " (c.) That any iron or steel rails which may be offered to the Government will be examined and tested by an officer to be appointed for that purpose, who will be required to give a certificate that the iron or steel rails, as the ease may be, are of good marketable quality, and such officer will be authorized to make 'such inquiries as he may consider necessary to enable him to give a certificate that the whole of the material used in the manufacture of the iron or of the steel rails is entirely the product of the colony. " (d.) No undertaking can be given that more than the total quantities of iron or steel rails than stated above will be taken at the specified rate per annum,

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