1.—17

112

EXHIBIT EEE. Dear Sik, — London, 2nd August, 1894. After carefully considering your Mokau (New Zealand) business for some time, we shall be prepared, upon your giving us a good title, to entertain the purchase of your estate upon the terms set forth in your memorandum of the Ist May, 1894, in the main as follows : — 1. To register a company of not less than £100,000 to work the coal-mines, such registration to take place within one month of your being able to satisfy us the title being available. 2. To obtain written agreements from reliable people for procuring the necessary shipping facilities—namely, say four steamers of about 8 ft. to 9 ft. draught, to carry about 500 tons each, and the necessary river plant, say two small tugs and a quantity of punts and boxes, to convey coal. 3. To produce the necessary working capital of, say, not less than £10,000 (included in the above £100,000). 4. The lease to be for the term of the leases granted to yourself, less one year before the expiration of the terms in each case. 5. The royalty to be Is. per ton on the coal, and 6d. per ton upon the small coal. 6. All flat rentals to merge into the royalties. 7. To undertake to pay as flat rental during this first year as a minimum the sum of £1,000, and an annual increase of £500 per annum up to the period of seven years or to the date of out-and-out purchase. 8. To pay you the sum of £500 per annum as managing director of the coal operations, with an increase not exceeding £1,000 upon the cement operations. 9. Royalty upon the limestone to be 6d. per ton; chalk mash, 6d. per ton; potter's clay, 4d. per yard; iron-ore, 6d. per ton; plumbago, 5 per cent, on net profits; shale, Is. per ton; mineral oils, Is. per hogshead. 10. The vendor company to have the right to purchase your interest in the estate (save the reserves to be specified) at any time within seven years for £180,000. In the event of no purchase the royalties to continue at the prices stated on a flat rental equivalent to £5,000 per annum. 11. In the event of purchase of these in fee-simple or extension of lease being obtained by fees your royalties to remain as herein named. 12. You will grant all necessary rights-of-way over the lands reserved by yourself free of charge. 13. You will at once proceed to endeavour to acquire the coal and mineral lands on the opposite side of the Mokau River for the company. The lease or purchase-money will be provided by the company, but to be a charge against yourself till liquidated. The same royalties and rentals will be paid to you in respect to this property. In the event of the company purchasing you out completely the purchase-money of these lands opposite to be paid by the company. 14. The syndicate or company will send out a competent mining engineer with you to inspect the property, also a marine engineer for the shipping. 15. We will pay you in advance the sum of £500 per annum upon the rents or royalties. 16. In the event of the estate being purchased out and out, as before provided, it is agreed that any improvements made by Mr. Jones on the lands by way of buildings, <fee, the cost to be reimbursed to you, together with interest on capital so expended at the rate of 5 per ce,nt 4 per annum. 17. A proper draft agreement to be drawn embodying the outlines herein set forth, and a plan of the lands to be annexed. A copy of the plan has already been exhibited by Mr. Jones. Yours, &c, Oscar Heindobf, J. Jones, Esq., 12 Doughty Street, W.C. For the Finance Corporation. The Langland Bay Hotel, Langland, near Swansea, 10th August, 1894. Dear Sir, — Re Joshua Jones, There seems to be some misunderstanding on the part of Mr. Jones's advisers as to the position you took up regarding this matter. At the interview I had the pleasure of having with you last week I told Mr. Jones that you denied that he has any interest whatever in the Mokau property, but that without prejudice you were willing to reconvey on payment of £30,000, and that it was useless to offer you anything less than that sum, as you had definitely stated you would not accept it. Kindly let me hear whether lam correct in my recollection of the position, and whether you will accept a sum equal to the amount you have actually paid, plus your costs, if 1 tender it. I have said that lam certain you will waive a tender of the latter sum if Mr. Jones can establish a right to a transfer, as I am prepared to pay a sum not exceeding £12,000 for the property at any moment. Yours, &c, E. CI. JeljLicoe, 1 Great Winchester Street, London E.C., 13th August, 1894. Dear Sir.: — Re ./. Jones. In reply to your letter of the 10th instant, we beg to say that there can be no real misunderstanding on the part of Mr. Jones's advisers as to the position we have taken up if they have read the correspondence, in which the position is clearly explained.