THE MOKAU TRANSACTION

Taranaki Daily News, Volume LIV, Issue 102, 20 October 1911, Page 5

THE MOKAU TRANSACTION

MR. MASSEY'S STATEMENT DISPROVED. THE GOV4ERNiMENT VINDICATED, By Telegraph—Press Association. Wellington, Last Night. The report on the inquiry regarding the transactions of the Government in connection with the Mokau-Mohakatino blocks was presented by the chairman of the Native Affairs Committee this afternoon. The committee prefaced its report with a summary of the statement made in the House some weeks ago 'by Sir James Carroll, then acting-Prime Minister, and the statement made by Mr. Massey at the opening of the inquiry. The committee found that the statement of Sir James Carroll correctly sets out the facts relating to the Government's association with the transaction Mr. Ma-s----sey's statement correctly sets out the facts referred to by him, and is in agreement with the statement of the Government, except as to three minor matters, viz: (1) iHe suggested that the limitation provisions of the Native Aci were avoided by the issue of an Order-in-Council, whereas in fact the Order- inCouncil was issued in accordance with such limitation provisions. (2) %he statement to the effect that a meeting of native owners was not properly representative was disproved. (3) The statement to the effect that the company or members of the company will possess practically a monopoly of the coal-bear-ing areas on the west coast of the Taranaki provincial district was disproved. "The only additional facts which the committee deems it necessary to refer to," the report continues, "are that the lessee finally acquired the interest of the natives in the blocks for the sum of £25,000 in cash and the sum of £2500 in fully paid-up shares in a company having a capital of £IOO,OOO, formed to acquire the Mokau-Mohaikatino blocks, and other properties. Herman Lewis, the lessee, sold all his interests in tho Mokau-Mohakatino blocks (excepting an area of about 7000 acres which are subject to certain sub-leases to Mason Chambers) for the sum of £71,000 in cash and £4OOO in fully paid-up shares in the company. The company purchased from Mason Chambers, paying in cash and shares in its capital the sum of £85,000. The sum paid to the natives for their interest in the land was greater than the actual value of the interests ol the natives burdened with leases. Assuming the purchase money obtained by the lessee to be the true value of the block, suggestions were made before the committee reflecting upon certain departmental officers concerned in this transaction, hut the committee is satisfied that these suggestions were entirely disproved.