25

I.—6c

231. That is quite incidental. Your stipulation is to receive £100 per bond ?—Yes, that is so. 232. Mr. Tanner.'] Then you really mean that you would not take the colony's bonds at par, sell them, and make what you could, whether it was more or less. You would expect if the debentures were selling about 96 for the £85,000 you would have to be paid £88,400; that is, with the 4 per cent, added? —That is, with the 4 per cent, added. We must receive £85,000 per annum. It would not be fair otherwise. If we take it in that other form, the colony would be open to those acting for the company depressing or raising the market by placing or withholding the bonds. I think it would be a dangerous thing to have such a possibility in dealing even with a small amount such as the six-monthly instalment. The London market, even with stock like that of New Zealand, is affected by the sale or the purchase of £10,000 worth of stock. You will hardly realise that such a small purchase as £10,000 or £20,000 worth will affect the stock like that, but it does. It will alter the price for the day one-quarter or one-half a point. The least thing affects the market. It is like a sensitive barometer. And that is one of the reasons why I suggested cash. Although you pay the company in bonds, there is no reason why the Agent-General in London should not finance these on behalf of the company. He could do so over a period of six months without affecting the market. And that is perhaps the wiser course. 233. There might be an advantage in that ?—There would be an advantage. The bonds could be placed during the six months; whereas £42,500 placed in the market at once would doubtless depress the quotation. 234. Mr. G. Hutchison.] Would the company have any objection to taking the quotation a month before ? —It would be better not to do so. 235. Because that would leave it unaffected by the placing of a particular parcel?— The company, in its own interest, would have to be very careful how it placed these six-monthly parcels of bonds. 236. It would not matter, if you were to get £100 for your bonds, how you placed them ? —lt would not, of course, if we were dealing in that way. That is why I have always suggested that if the Government paid the company in bonds you make a stipulation that the Agent-General should finance them'and pay the company the cash. 237. That we might have the right to pay in cash or bonds, taking the quotation one month prior to handing over, so as to be to some extent unaffected by the immediate operations ? —Having to pay us par value, it would, of course, be the Agent-General's duty to arrange when he financed the payments he did so, so as not to affect or depress the market. He could do this by spreading the issue over some time. If he were authorised to be prepared at the end of each six months to pay the company this £42,500, then he has that six months during which he can place the stock without affecting the market to any extent. 238. That is an obvious precaution ?—Yes. 239. There are a few questions bearing upon those I put yesterday I wish to ask. What is the amount now of the land-scrip held by the company which has not been exercised?— About £35,000 ; that is to say, these are earnings by construction, not selected. We do not hold any scrip. 240. And the area of the land and the value of the land now held by the company. That is, not disposed of? —I have given this in a return handed in. 241. Already selected land-grants and which are still in your hands?—Do you mean not dealt with? We have some leases, you know. We have part of that Block 77, at Springfield, and two West Coast Blocks, 26 and 28. These are the two round Lake Brunner. 242. What is the acreage ?—The acreage of these is about 30,000 acres. 243. Mr. Guinness.] The two together?— The two together. 244. Hon. Mr. Seddon.] What are the values now ?—£l an acre. That is the Bl value. 245. That would be £30,000?— Yes. 246. £35,000 are the land-grants earned, and there is this value of £30,000? —The Bl value, Yes. 247. Then, between the land selected and the land-grants earned there is £65,000 ?—Yes, which I may tell you is now being used for the completion of that section from Lake Brunner to Jackson's. We have constructed a longer length of line than we anticipated to be able to do with the original capital. This has been done out of savings, and from our land-grant earnings financed and we are now completing up to Jackson's on this capital. 248. Hon. Sir J. Hall.] That does not include the bridge ?-—Yes, it includes the bridge. 249. Hon. Mr. Seddon.'] With the Bl value for the construction of this line, and £65,000 you have in hand and earned, in round figures, make £700,000 ?—The capital cost of the line, do you mean ? 250. No. You have £65,000 worth of land ?—Yes. 251. What is earned, and the Bl value?— Yes. 252. £618,000 is the land-grant you will earn if you complete the line ?—Yes. 253. That makes £683,000 ?—Yes. 254. You have had a letter from the Government stating they would give favourable consideration to a proposal under which the colony was to offer the company, in lieu of land-grant, debentures bearing 3-J- per cent, interest, as you earned the land by the construction of the line. Instead of giving you land-scrip they would give you debentures convertible into cash, bearing 3-| per cent. You have not given the Committee any evidence upon that proposal ?—My answer to the proposal is the new proposals which I have submitted, to the effect that, unless we can get the £850,000 spread over ten years, we cannot get our money. The £618,000 paid as suggested by the Government would not enable us to finance and complete the works. 255. You mean to say with an absolute £ for £, because it means that, on the construction of the line, you could not ?—No; the evidence last year was to the effect that the line when built would not pay working-expenses. We, therefore, have to go to the money-market and say, "Wβ 4—l. 6c.