G.—7

2

Kerehoma, to whom the said William Boyce Chennells was in a fiduciary relation as such agent as aforesaid, inasmuch as — " (a.) The said William Boyce Chennells induced Rangi Kerehoma to lease and sell certain lands known respectively as Ngawakaakupe No. 4 (Mangahuia), Ngawakaakupe No. 2b (Tablelands), to members of the family of the said William Boyce Chennells at a gross undervalue and upon disadvantageous terms, and procured such lease and sale without seeing that the said Rangi Kerehoma was separately and competently advised : " (h.) The said William Boyce Chennells, in order to procure and facilitate such sale as aforesaid, induced or assisted in inducing the said Rangi Kerehoma to be Europeanized, well knowing that the said Rangi Kerehoma was not fit or competent to manage his own affairs : " (c.) The said William Boyce Chennells induced the said Rangi Kerehoma to execute in favour of the said William Boyce Chennells a power of attorney containing a provision for the remuneration of the said William Boyce Chennells upon an extravagant basis, which remuneration the said William Boyce Chennells subsequently deducted from moneys of the said Rangi Kerehoma passing through his hands : " (d.) The said William Boyce Chennells, notwithstanding that he had power under such power of attorney to collect rents, arranged that the Public Trustee should collect the rents of the said Rangi Kerehoma's lands, with the result that the said Rangi Kerehoma was charged double commission for the collection of his rents." 1 propose to give a short and concise history of Kerehoma's connection with the Public Trust Office. The Public Trustee was on the 9th day of December, 1890, appointed, under the Maori Real Estate Management Act, the trustee for Rangi Kerehoma, then a minor of about two years of age. He was entitled to large areas of land, which were administered by the Public Trustee during his minority, and which in the course of time, during his long minority, became very valuable. He came of age on the 9th July, 1909. There were then accumulated funds to his credit amounting to £36,475, besides the valuable landed estate. During the whole period of Rangi's minority one William Boyce Chennells was the Agent of the Public Trust Office at Masterton, and as such received the rents from the Mangahuia Block, which was a valuable portion of Rangi's estate. Chennells was a land agent at Masterton. As Rangi grew to manhood he proved to be irregular in his habits, and it seemed to be quite apparent that he was not fit to manage his own affairs, especially where he had to administer a large and valuable estate and to have the control of so large a sum of money. The then Native Minister, Sir James Carroll, who was also Minister in charge of the Public Trust Office, and the then Public Trustee, Mr. Poynton, seemed to be satisfied as to this, and they induced Rangi to execute a deed of trust settling a sum of £25,000 upon the Public Trustee in trust to pay the income thereof to himself for' life, and after his death according to provision. The residue of the cash in hand was paid to Rangi through Chennells, as Agent for the Public Trust Office, and the former forthwith commenced to spend money lavishly. He even tried to secure a loan through the Office of a further £3,000, but the Office very wisely demurred to this, and the loan was not granted. In January, 1910, very shortly after Rangi came of age, he gave Chennells a power of attorney, authorizing him to collect rents and make payments. Notice of the revocation of this power of attorney was given on the 22nd April, 1915,