1.—6

14

J. M. Shera, Esq., Auckland. Wellington, 30th March, 1885. Yes. Wβ will probably immediately close with you if arrangements made with Union in accordance with my telegn of Saturday. Reply quickly. Jos. A. Tolb. Hon. Sir Julius Vogel, Dunedin. Wellington, 30th March, 1885. We will probably close with Shera to-morrow. The only money required will bo nino thousand—that is, Sher equity seven thousand, and Union two thousand. Jos. A. Tole. Hon. J. A. Tolo, Wellington. Auckland, 30th March, 1885. The Union Company have agreed to your proposal in Saturday's telegram. J. M. Sheba. The following is a minute of the proceedings of the Board at a meeting held on the 31st Marc 1885:— Mr. Tolo produced certain telegrams which had passed between him and Messrs. Shera Brothers, and report that the purchase of Messrs. Shera Brothers' property had been completed, 40ft. frontage and 100ft. deep, £19,000; and it was resolved to transmit £1,000 on account of the price of the property through the bank, an< receipt to bo taken therefor, and that the Acting General Manager be instructed accordingly. 204. Was there any outside valuation of this property during the progress of the negotiation —Yes; I believe Mr. Vaile and Messrs. F. J. Moss and Co. both valued it. 205. Who were they employed by?—The valuation by Mr. Moss was made at the instance Sir Julius Vogel. On the 21st February Messrs. Moss and Co. wrote to Sir Julius Vogel as fi lows:—■ Sib, — Auckland, 21st February, 1S85. In accordance with your request, we have inspected the premises offered to the Insurance Association Messrs. Shera Brothers, and have the honour to report upon their probable value. The position is unexceptionable. It is in the best part of the city, being practically a corner section, in the bloc between the Wharf Hotel and the Bank of Australasia, which blocks have become the established business centre Auckland. It has an unusually large frontage, and is therefore more available for subdivision into offices, auctic rooms, or similar means of fitting it to produce a good rental. The frontage to Queen Street is 40ft., and to Gilfillan Lane 101ft. By the latter it is placed in direct co munication with the passage to the Exchange. The frontage to this passage is GOft., the odd 20ft. consisting of area 20ft. by 20ft., attached to the section on the passage-front, as per sketch attached. The building is insured for £2,500. In order to form a better idea of its value, we asked Messrs. Grey and Mitch; architects, to give us a general idea of the cost of such buildings, as we did not think it necessary to ask at present a more exact valuation. We enclose their reply. At the rate of 6d. per cubic foot stated by them, the value of t building would approach £3,000. Judging by the recent sales of property in Queen Street, the excellent position of this property, and the p manent improvements going on around it, we think the lowest estimate that could be placed upon it would be £17,51 Quite possibly it would bring £20,000 if wanted for any special purpose, as it offers great facilities for subdivision a reletting any portion not required. Its capabilities in that respect could only be ascertained by consulting architect, which we did not feel justified in doing without instructions. We have, &c, The Hon. Sir Julius Vogel, K.C.M.G., Auckland. P. J. Moss and Co. Sib, — Mutual of Victoria's Building, Queen Street, 21st February, 1885. In reply to your query re approximate cost of ordinary store-buildings in Auckland, we beg leave to state tithe cost per cubic foot would be 6d. This price would, of course, be susceptible of increase or diminution in proportion to the quantity, quality, a situation of the proposed works, all of which, in approximating the cost, have to be taken into careful consideratioi We have, &c, Gkey and Mitchell, F. J. Moss, Esq. Architects. 206. Was there any other valuation ?—Yes. Messrs. Vaile and Douglas addressed this leti to Mr. Shera on the 14th February, 1885:— Deae Sib, — Auckland, 14th February, 1885. In compliance with your instructions we have valued your property in Queen Streot. If altered in acco ance with the plan submitted, and the building increased to three stories, we estimate the gross rental at £1,732 1 per annum. From this we should deduct one-fifth for property-tax, insurance, empties, repairs, &c, which woi leave a not rental of £1,386 per annum. Calculated on the basis of this rental, the property is worth from £22,000 £23,000 —that is to say, it would pay an investor from 6 to GJ per cent, net on that amount. Faithfully yours, J. M. Shera, Esq., Queen Street. Vaile and Douglas. 207. Have you got any other record showing how the business was initiated?—No. 208. Have you nothing on the papers showing the initiation of the purchase at Auckland ? No. Mr. Tole submitted certain telegrams to the Board at its meeting in February. I do not km of anything prior. 209. Will you look among your records for any information bearing on the initiation of tl purchase prior to the meeting of the 17th February?—Yes.* 210. Was the purchase completed ?—Yes —on the 31st March, 1885. 211. Who were present when the purchase was completed?—Mr. Tole, the Secretary to t Treasury, Messrs. Bethune, Shannon, Bell, Fisher, and Graham. No division took place. 212. Was anything said, at that meeting ? —There was no counter-motion. The purchase \v approved. 213. What has the'association done with the premises?—Nothing at all. We are arrangi: for the plan for new buildings. I received the plan to-day ; it is for a new front-building. 214. Making it suitable for your offices ? —Yes—for our offices, and offices to let up-stairs. 215. What rental are you getting from the building purchased ?—No rental; it is not occupie The matter has been in abeyance for some time, pending the question of building. 216. Is there no one in occupation ? —It is now empty. It was occupied for some time aft the purchase by Messrs. Shera and the Union Insurance Company. 216a. They paid rent ?—Yes. 217. How much ?—They paid £3 a week for three months after the purchase, and £7 a we thereafter.

* No record previous to that of minute-book on 17th February.—D. M. L.