H. J. H. BLOW.]

57

1.—16.

Thursday, 31st October, 1912 H. J. H. Blow recalled, (No. 14.) 1. Hon. Mr. McKenzie.] When we adjourned yesterday I was asking Mr. Blow if he had made any estimate of the amount of bounty which he considered necessary to give to any company or ironworks of sufficient capacity to make it payable. What bounty, per ton, would you consider enough for works of that nature and which would be likely to be required?—l do not think any bounty would be needed in the matter of pig iron. 2. 1 am not asking you about pig iron. Take manufactured steel—steel rails : take what would be suitable for bridge-work?—l think on such work as that they would probably need a bounty of 10s, per ton. 3. You are aware the Government offered the bounty before?—l do not think I am aware of it. 4. You remember £5,000 was an offer made by the late Hon. R. J. Seddon? —I believe there were some such proposals. I have forgotten the details. Hon. Mr. McKenzie: There is an analysis here, Mr. Chairman, that was made in England about seventeen years ago of Parapara iron-ore, limestone, and haematite paint, and the copy belongs to the Mines Department. Could we put this in as evidence? The Chairman: Yes. Witness: It is a departmental paper, No. C.-lOa, 1895. It is a report forwarded by the Agent-General on the iron-ore, limestone, and ha-matite paints of the Collingwood district. [The exhibit was handed in to the Committee as evidence.] 5. Hon. Mr. McKenzie.] Will you look at the analysis, or the remarks made on the Parapara iron as compared with the Northamptonshire iron, Mr. Blow? The New Zealand ore is decidedly- superior to the Northamptonshire ore on account of its freedom from phosphorus?— In this analysis there was merely a trace of phosphorus, against 317 in one and 1"03 in another in the Northamptonshire analysis, 6. There is a percentage of 351, too, 1 think?— Yes. But the analysis does not quite agree with Dr. Bell's analysis. 7. With regard to nationalization? —I said I was in favour of nationalization, but unless we can resume tbese leases there is not much chance of nationalization. 8. The Chairman.] We were talking of the cost of a furnace for pig iron : can you give the Committee any information as to that?—l said yesterday, I think, if the output of the works was limited to pig iron the cost of the works would really be about half what they would be for a complete plant. I said I had no complete information on that point—l thought about half. I meant not only the furnace but a complete equipment for putting out the iron. 9. Hon. Mr. McKenzie.] Do you propose rolling-mills for the manufacture of wire, &c. ?— Not wire; I propose rails, bars, rods, and angles. 10. The Chairman.] What would the blast furnace cost?—lt would run from £50,000 to £70,000. 11. And its possible output would be?— About 200 tons per day. 12. Between 50,00 D and 60,000 tons per year?— Yes. 13. If it can be proved that the Parapara Company has not complied with the terms of its lease, can the lease be cancelled? —Yes, I think so. 14. Mr. G. M. Thomson.] Does not that lease cover the lease of the Taranaki ironsand?—No. 15. The Chairman.] In reference to the three millions which you suggested the Government would have paid by the end of forty years, taking compound interest at 4 per cent., do you mean that the Government would at the end of forty years on that basis have paid £3,000,000 for the direct and collateral advantages accruing from the Ethelburga Syndicate's works? — No, sir, they would not pay that amount. If, instead of paying instalments to the syndicate as proposed, they put that money by, the instalments, plus 4 per cent, compound interest, would amount to nearly £3,000,000 in forty years. 16. So that we would in forty years' time have practically paid three millions for whatever advantages the Ethelburga Syndicate offers? —Yes. 17. Mr. Veitch.] During your examination by Mr. McKenzie, Mr. Blow, you arrived at an assumption, by a guess, of the population of New Zealand in a given time. In forty years you thought it would amount to two millions and a half? —Yes. 18. From that you estimated the number of men likely to be wanted in New Zealand in connection with the industry? —Mr. McKenzie said two and a half times the amount of iron would be used. 19. From that the given number of men would be employed in the works?— Yes. 20. And from that an estimate was taken of the benefit the country would derive in Customs taxation from the numbei of men employed in the works and its development. Assuming the estimate of two millions and a half was correct, no doubt the following assumptions would be correct? —Yes. 21. Can you tell us how you arrived at the two millions and a half?—lt was just a guess. 22. Assuming that two millions and a half is only a guess and may be correct, we cannot place much reliance on the ultimate deductions? —I do not place much reliance on them myself. 23. Hon. Mr. McKenzie.] Your computation would be based on the statistical progress made in this country in the forty years? —On our present rate of increase. 24. Mr. Myers.] Mr. Blow, you expressed to the Chairman the opinion that the Parapara lease might be liable to forfeiture : is that so? —Yes. 25. And I suppose it might not? —It might not. 26. I suppose that that is partly a question of law? —It is very largely a question of law.

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