1.—16.

J. H. WITHEFORD.j

45

S.W., 3rd November, 1911. —J. H. Witheford, Esq., Grand Hotel, Trafalgar Square, W.C. — Dear Sir, —Parapara and Onakaka iron-ore mining properties : I am directed by the High Commissioner to state for your information that he has received the following cablegram from his Government: ' Parapara iron-ore legislation introduced, but has to stand over for consideration of Government recess with a view to ratification next session. Inform all concerned.' I am, &c, C. Wray Palliseb, Secretary to the Department." 1 put that in because the views of the Ethelburga Syndicate were that they should now come to an arrangement with the New Zealand Government, and having arranged for the money they thought the best thing I could do was to come out and get everything fixed up. I have nothing further to say except this : that the Dominion at the present time would be very greatly benefited by the establishment of these works, and as the people at Home are prepared to arrange with the Government to erect them, I think it is very desirable in the interest of the Dominion that the Government should do it. The Chairman: Mr. Skerrett put in an exhibit between the Ethelburga Company and the Parapara Company. Mr. Myers: This is the agreement, sir, dated the 7th September, 1911. I have already said that this has been reinstated, I have not a spare copy of the reinstatement agreement. Ido not think it is necessary, because it is really a reinstatement agreement with variations of a character which do not affect the questions before the Committee —1 mean as to conditions between waterraces, and so on. 49. Hon. Mr. McKenzie.] What about the agreement between Onakaka and Parapara?— There is no agreement between them; there is just one between the Parapara and Ethelburga Syndicate and one between Turnbull and the Ethelburga Syndicate. 50. The Onakaka, must have withdrawn from the arrangement of last year?— The time lapsed; the Parapara agreement is reinstated, but the Onakaka is not; the Ethelburga people are willing to reinstate it, but the Onakaka people are not. 51. Mr. Myers.] Mr. Witheford, it has already been made clear that so far as the difference between the 135,000 shares, that come as consideration for the properties, and the 350,000 shares is concerned, you have no knowledge as to whether they are paid-up or contributing?— No. 52. Similarly, in establishing a company of this kind do you know- that there are brokerages and other expenses in England apart from expenses in New Zealand? —Yes. 53. Do you know how much of the money which is raised on debentures is likely to be required, or have you no information on the matter at all?—I understand the whole is going into this plant. 54. You have no information on the point?—No, not beyond what is contained in their memorandum.

Joseph Smythe recalled. (No. 10.) 1. The Chairman.] 1 understand, Mr. Smythe, you wish to correct your evidence on minor points. Your original statement read, "At high tide there are 2 ft. or 3 ft. of water on the bar. The depth of the inlet —it ; s full up of tailings now —runs down to 4 ft. "?—I stated that there were 10 ft. or 12 ft. of water at the mouth of the inlet at high water, and I stated it was possible to get 40 ft. of water in the inlet. 2. You said tremendous quantities of coal will be required to open up their leases?— Enormous quantities of coal will be required to turn the ore into pig iron, rails, bars, &c. 3. Hon. Mr. McKenzie.] The rise and fall of the tide at Parapara is about 14 ft.?— Yes. 4. Do you understand the bar- to be at the inlet? —About a mile and a half outside. 5. I think you said in a statement the payments for the Parapara included the payment for the Parapara leases? —Yes. 6. What was the total amount?—£3s,4B6; there has been over £5,000 spent above that, making a total of over £40,000. The Chairman: We will now call Mr. East.

Archibald William Blair, Barrister and Solicitor, examined. (No. 11.) Witness: I will address the Committee for Mr. East on behalf of the Onakaka Syndicate. They, the Onakaka people, give this matter, so far as the question of monetary assistance to the iron industry is concerned, their most cordial support. All that they ask is that the offer be made general and that it be not left to one particular company, so that any company which is able to come along with reasonable proposals to the Government may be able to take advantage of the benefits suggested by this particular legislation. It was to that phase of the matter that the questions I put to Mr. Witheford were directed, because it did occur to us as important that possibly the question as to whether the company was or was not overloaded with what were watered shares might or might not have a serious effect upon the ultimate success of the companjr. The giving of a bonus to an iron industry would assist that industry, but if undue watering took place in the shares of the company with which the Government contracted, then the bonus which was intended to assist the industry might be taken advantage of simply to assist those persons who were finding the capital nominally for carrying on this iron business, and enable them to exploit the public. It was to that particular phase of the matter that our questions were particularly directed. Mr. Witheford says he knows nothing and cannot give the Committee any assistance as to how much in cash or paid-up shares is going into the pockets of those interested, and it is suggested by us that is a matter of great importance and a matter as to which the Committee should have been supplied with information before it would be in a position to say