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2. Mr. Scott.'] Is there an explanation in that statement as to where the money from the sale of the Mokihinui property went? —That went to the liquidator. The Mokihinui Coal Company was in liquidation. 3. Mr. J . Duncan.] What was the date when the companies were absolved from liability in respect of this liability? —The Act says, " No claim in respect of any deficiency arising on or after the 31st day of March, 1897, in the working of the Westport-Ngakawau Railway extension to the Mokihinui River shall be made or enforced against the holders of coal-mining leases within the railway area, as provided by ' The Westport-Ngakawau Railway Extension Act, 1890.' " 4. The deficiency up to March, 1897, was wiped out, I understand? —No, it was not wiped out by the Act. The Act was not retrospective. 5. Of the deficiency of .£5,000-odd, £2,500-odd was apportioned to the Cardiff Company?— £2,567 ss. Id. to the Cardiff Company, and the balance to the Mokihinui Company. 6. I notice that the amount that was charged for deficiency against the Cardiff Company at the time the Government seized the property of that company was £2,107. They were actually charged less, then, than the amount they were really liable for?—l can only supply the lump sum, on account of both parties, from the opening of the line. The apportioning of the deficiency was left to the Lands Department, who had to collect the money. All that the Railway Department had to do was to notify the Lands Department as to the amount of the deficiency on each year's working. 7. The Government bought the Mokihinui Company's property for £4,500, of which £.'i. r )(l went to the liquidator. I was wishing for information as t<i how the £4,150 was made up?— l think the Public Works Department or the Mines Department would be the proper Department to apply to for that. The Railway Department had nothing to do with the purchase. 8. The Chairman.] The Railway Department did not receive this money —I mean the deficiency on the working of the railway: it went to the Land Board? —The Railway Department got no money. 9. Mr. Taylor.] There are no cross-entries relative to the matter in the Railway accounts? — No. The Railway Department had to put up with the deficiency and the loss of interest. 10. The Chairman.] Why did you have to put up with the deficiency if the money was paid over by these two companies—to the extent, at any rate, of £4,000? —No portion of the money was handed back to the Railway Department. The Lands Department should be able to say what became of the money. The Westport Harbour Board would suffer to some extent. 11. Mr. Colvin.] You do not know whether the companies paid anything or not? You know there was £5,000 owing, but you do not really know whether they were credited by the Lands Department or not, or whether anything was paid into the Consolidated Fund?— The Railway Accountant advised me that no cash had ever been paid. 1 have his report recorded. 12. The money was collected when they sold the mine?-—On that occasion it would be deducted from the proceeds of the sale as a debt to the Government. As the deficiency arose each year the Lands Department did not levy on the coal companies. They did not make the companies pay, as they possibly should have done, when the liability was incurred. They did not collect the money. 13. When the Government sold the Mokihinui Company's property for £4,500 they returned £350 to the liquidator and kept £4,150. This money did not come to you, and there is no account as to where it went to?—I do not know anything about that. The Railway Department had nothing to do with that part of the accounting. 14. The Chairman.] That is the information given to you —that no money was paid? —According to my records that is correct. 15. The Chairman (to Mr. Bayfeild).] You have a letter from Mr. Stringer, Crown Prosecutor. I understand that you desire to put that in? —I do, sir. 16. Will you read it then, please?—" Crown Solicitor's Office, Christehurch, 4th January, 1900.— W. H. Hargreaves, Esq., Liquidator, Westport-Cardifi Coal Company, Christehurch.— Dear Sir, —The Crown and the Company : Referring to my interview to-day with you and Mr. Fisher as to the Government refusing to give any such undertaking as mentioned in Messrs. Garrick and Co.'s letter of the 21st ultimo, and as to your objection to execute the deed of assignment without such undertaking, I beg to call your attention to the fact that the agreement between the company and the Government is embodied in my letter to you of the 10th December, in which 1 stated that the Government would not waive the claim for deficiency due by the company prior to the 31st March, 1897, but were willing to take over all the chattels on the property in satisfaction of the amount due for rent and royalty, and your reply thereto of the lltli December, in which you agree to ' the Government taking over the chattels in discharge of the company's debt.' The deed of assignment prepared by me does no more than give proper effect to the agreement thus made. In your letter before referred to you state that you accept the offer ' without prejudice to the company's right to appeal to the Government for favourable consideration in terms of the recommendation of the Railways Committee last session, and to the company's right to petition Parliament for further relief.' It was not intended by me that the deed should do more than give formal effect to the agreement before mentioned —namely, that the Government should take over the chattels in satisfaction of the company's debt ; and in my opinion the deed does not do so, nor does it in any way prejudice whatever rights you may have to approach the Government or Parliament in the way mentioned by you. I trust, therefore, that there will be no further delay-in carrying out the arrangement made between us. —Yours truly, T. W. Stringer, Crown Solicitor." [Letter handed in.] This is confirmed in a letter from Mr. Hargreaves under date of Saturday. 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