C.—l 3

2

Lease op Hostel and Hut Sites. The lease referred to in the previous paragraph is for a term of forty-two years from the Ist December, 1928, and covers the following areas : No. 1 area, 57 acres 3 roods 30 perches, Hostel site at Whakapapa ; No. 2 area, 1 acre 3 roods 17 perches, Whakapapa Huts site ; No. 3 area, 2 roods, Mangatepopo Huts site ; No. 4 area, 2 acres and 36 perches, Ohakune Hut site ; No. 5 area, 2 roods, Waihohonu Hut site. Total area leased, 63 acres and 3 perches. The following references to the principal provisions of the lease are of interest:— (a) In addition to a fixed annual rental, the Board is to receive a percentage on the gross receipts accruing to the lessee in respect of the operation of the rights and privileges conferred by the lease. (b) During the continuance of the lease the lessee (being a company) shall not wittingly issue shares, or wittingly permit the registration of any transfer by any shareholder, of any of its shares to any person who is not a British subject, or to any company which is not incorporated and having its head office in New Zealand. (c) Lessee to erect a hostel and other buildings to cost not less than £40,000 ; the plans and site of buildings to be approved by the Board. (d) Lessee to take over from the Board the existing huts and maintain and conduct such buildings as hut or cottage accommodation, and to increase such accommodation as may be reasonably required from time to time. (e) Lessor may provide shelter-huts or mountain houses for the protection of visitors (without charge) at an altitude exceeding 5,000 ft., and may grant sites and facilities to sports clubs, &c., at an altitude exceeding 5,000 ft. but without the right to such clubs to make any charge for the use of such accommodation, except such as may be agreed upon between the lessee and lessor. (/) Charges for accommodation and other services rendered are to be approved by the Board. (g) Should the erection of a further hostel or other buildings become necessary a further lease of sufficient land is to be offered to the lessee, but if the lessee fails to take up such lease then the lessor is at liberty to either erect such buildings or grant a lease to any other person or company. This provision, however, has no application during the first ten years or the last ten years of the term. (h) The right is reserved to the lessor or its licensees to enter upon any of the leased land and construct landing and parking grounds for airships, aeroplanes, and other machines propelled in the air, and to erect hangars, &c., and to collect fees for such facilities, but not so as to interfere with any buildings of the lessee, and making good to the lessee all damage done. (i) Lessor to have the right at any time after the expiration of the first twenty-one years to resume possession upon payment of the value of all permanent improvements made by the lessee and the value of the goodwill or interest of the lessee in the unexpired term of the lease. (j) On the expiration of the lease the lessor may retain direct control and pay to the lessee the value of improvements. If, however, a new lease is offered by public tender the incoming lessee is to pay the outgoing lessee the value of improvements. The Lodge. To meet the urgent demand for improved accommodation at Whakapapa the company in taking over in December last immediately erected lodges with two-bed cubicles, dining-room, and necessary conveniences. Ihe accommodation provided was excellent, and has been much appreciated by visitors and tourists to the park. The Chateau. The main building which is being erected by the company at Whakapapa has been named " The Chateau, and when completed in all its details will comprise a handsome structure with magnificent views of the mountains, the native bush, and the wide plains to the northward. It will provide accommodation for 150 guests exclusive of the " lodges," which will also provide for another 100 guests. The site chosen for the building is a sunny spur of Mount Ruapehu, and is ideally situated to give easy access to the bush walks and to the snow slopes for winter sports. This site is 3,800 ft. above sea-level The position of the large lounge is particularly successful in that from its windows the sacred mountain, Tongariro, the graceful cone-shaped active volcano, Ngauruhoe, and the fine snow-clad slopes of Mount Ruapehu will be seen. A special plate-glass window, 10 ft. square, is well placed at the east end of the lounge to allow a complete view of Mount Ngauruhoe. Visitors from abroad who have recently seen the view from this window state that the sight is unequalled. In arranging the general layout a basement was decided upon and the main reception-rooms placed above. The mam entrance is therefore raised 10 ft, above the ground-level, and is approached by a circular roadway rising from the natural grade. This roadway is to be flanked by a series of electric-lamp standards, and when completed will make a fine massive entrance to the building. The entrance portico, with its stone columns, and so arranged to give a view of mountain and bush at either end, is another successful feature of the building. A brief statement of the accommodation provided may be of interest: The basement, which covers most of the site, is approachable from the main vestibule, also from the service stairway, and faces upon a courtyard at the western end of the building. In this basement are placed the men s toilet-rooms, games-rooms,- gymnasium, alpine-equipment rooms, cafeteria for