11

I.—sa:

R. LETHAM. I

6. Mr. Hislop.] When did you say this was?— About the. month of April, so far as I can tax my memory. 7. Last?—No; twelve months ago. 8. That was all that occurred then?— With me. 9. Had you thought of the circumstance since? —Nothing whatever. 10. Until when? —Until I was asked if I could remember you calling. 11. You were asked if I called with Mr. Macdonald? —If you and Mr. Macdonald called. 1 could not mistake it, because of knowing you. 12. How often have I called at Mr. Kensington's office?—l remember your calling on one occasion by yourself. 13. Do you remember Mr. Macdonald and myself calling about six months ago? —No. 14. You do not remember our calling up there at all? —1 remember your calling during Mr. Kensington's absence in the middle of June last, and I remember referring you to the Chief Clerk. 15. Do you not remember my asking you for the Chief Clerk? —Y r ou asked who was in charge, and I said Mr. O'Neill, the Chief Clerk. 16. Still you never thought so much of such a circumstance as to impress it on your mind?— It made such an impression—the fact of seeing you two gentlemen together. 17. Do you remember Mr. Macdonald calling at any time with anybody else?— No. I am not always there regularly—l am sometimes sent out, and sometimes away. LB. Do you remember my calling with anybody else to see any other officer at any time? —No. 19. How is it that you remember this particular call of Mr. Macdonald and myself?—lt made an impression on my memory —the two of you coining up together. 20. You remembered it for eighteen months?—No; fifteen or sixteen months. It was the first time I had ever seen you there together, and it made an impression. 21. But 1 have known you for the last twenty years, Mr. Letham 1 Do you mean to say you had never seen me with Mr. Macdonald? —Not in the Lands and Survey Department—only on the two visits referred to. Kin lay Nevin Martin examined on oath. (No. 5.) Witness: I am Government Valuer at Wellington. The Chairman: State what you know about the work of valuation in regard to this matter. Witness: I have written out a statement, which with your permission I will read. On the 3rd May, 1907, a letter was received from the Commissioner of Crown Lands, asking that the District Valuer be allowed to make valuations of various parcels of land in or near the City of Wellington, as enumerated in a schedule attached ; and asking also that there be supplied " valuations at which the various parcels of land could be either offered for sale at auction for cash, or, if thought advisable to do so, be disposed of privately, without competition, to adjoining owners at a fair price." This letter was handed to me with the following notes made by the Valuer-General: "Instruct Mr. Martin. —G.F.C. 3/5/07." And again, "Ask Mr. Martin to obtain particulars from Hon. Mr. Macdonald on Monday.—G.F.C. 9/5/07." On Tuesday, the 14th May, I called at Mr. Macdonald's office for the purpose of obtaining plans of the various properties to be valued, as I understood he was in possession of the plans I required. Mr. Macdonald produced a very rough plan of a piece of ground owned by him in Woodward Street, which he said adjoined one of the pieces of Crown land to be valued, but which, apparently, had no bearing on the particular piece. This plan was useless for my purpose, and 1 therefore expressed my intention of seeing the Commissioner of Crown Lands; but, as Mr. Macdonald said he wanted to make some explanations with regard to the Wellington Terrace property, and also to point out its position, I accompanied him, at his request, to the Terrace. There I was shown the ground, and the intentions of the Corporation in regard to the regrading of Woodward Street were carefully explained to me. Mr. Macdonald asked me for an expression of opinion as to the value of the piece in which he has since' acquired an interest, but this 1 declined to give, on the ground that I wished to carefully consider the matter before committing myself. I then left Mr. Macdonald, and visited the Commissioner of Crown Lands, from whom I obtained the plans I required. The same day I made valuations of the city lands classed as " Crown remainders." On Wednesday, the 15th May, the Wadestown, Karori, and Fitchett-town portions were inspected; and on Friday, the 17th, the last property, at Trentham, was visited. On the 18th, after a final interview with Mr. Strauchon, the Crown Lands Commissioner, I sent in my report and recommendations. With regard to that portion of Town Acre 488, containing 655 perches, which forms the subject of this inquiry, my report mentions that its disposal had already been arranged for. This was in consequence of the explanation made to me by Mr. Macdonald, and confirmed by Mr. Strauchon afterwards, that it had already been arranged that the land was to be sold to the Corporation at the price put upon it by the Department. Had it not been so T should have recommended the sale of it privately to Mrs. Williams, as, in my opinion, she was entitled to first refusal, having paid rates on it for over nineteen years in 1903. This information was given me by Mr. R. Renner at that time. In May, 1907, the grade of Woodward Street, starting from the Lambton Quay end, was 1 in 148 for 66 ft., 1 in 10 for the next 70 ft., 1 in 63 for a further 62 ft., and 1 in s*B for the remaining 41 ft. to Wellington Terrace. The grade of the street was thus, practically, prohibitive for vehicle traffic except for very light loads, and was really only suitable for foot traffic. The section of land owned by the Crown had a frontage of 56*5 links (37 ft. 3 in.) by a depth varying from 702 links (46 ft. 3 in.) to 7492 links (49 ft. 5 in.), making an area of 655 perches. Of the frontage of 37 ft. 3 in., only 12 ft. was approximately level with the Terrace footpath, the balance of 22 ft. 3 in. being in a deep hollow fully 20 ft. below the road-level of Wellington Terrace at the point of junction with Mr. Macdonald's property. This hollow extended well on to the road-line