MORE ABOUT MOKAU.

Dominion, Volume 4, Issue 1201, 9 August 1911, Page 6

MORE ABOUT MOKAU.

Sir. James Carroll read in tho House of Representatives yesterday afternoon a long statement on Ijlie/Mokau land dealings, mid some discussion followed, ending in the reference of tho .wholo ,matter to the Native Affairs. Committee after a motion by Mr. Massey to set iip a special committee representing both sides of the flouso equally had been,rejected.

' The Acting-Primo Minister said that the : statement ho was about to place before i tho House set forth all !tho dealings and ~ transactions shown by the Government records. In order that the statement might be better understood, ho had prefaced it with the Press Association report of Mr. Uassey'a speech. J .' Mr. Massey. That report is not comet. .The Aciing-Primo Minister: I havoalso the report of the Auckland "Herald." Mr. Massey: That is all right'. ■ Sir James Carroll read the 'report of Mr. Massey's speech from' tho "New Zealand Herald." Ho then read the follow.ing narfntivo of the transactions:—

This matter was first brought under the notice of the. Government by a leitcr dated September's, 1908, irom the solicitor ' for Mr. Herrman Lewis, the registered owner of tho [eases formerly held by Mr. Joshua' Jones, to tho Native Ministor. In'this letter it was stated that 'the lessee was willing to join with . the Native-owners of the lands in any scheme which would facilitate the immediate settloment.of. tho block in small parts, and it 'was suggested' that tho Native Commission, consisting of the Chief Justice and this Hon. Mr. Ngata, which' was then Bitting , , should inquire into the'matter, with a viow to the area being disposed of.■■•under The Native Lands Settlement Act, 1907. It was also suggested that the respective values of the interests o£ tlio Natives and the lessees'might be determined by some independent .tribunal. ; . Mr. Jones's Petition.

At about this time, Mr. Joshua Jones petitioned Parliament claiming to bo entitled to an interest in the Mokau Block, and the application of Mr. Lewis, was hung up for some time in the hope that Messrs. Jones and Lewis would be abie to arrive at some arrangement. In the month of February, 1909, the Native Commission, then consisting of the Chief Justice v-ahd- Chief- Judge Palmer,.-' of -tho Native Land Court; dealt with the matter. The, cdmmission found that, tlicre . were fonr subdivisions of the- block containing about 53,000 deres leased to Mr. Jones, the main subdivision comprising about 26,500 acres, and three other subdivisions containing together about"'26,soo acres; also that the lease of tho main block contained a clauso requiring the lessee "to -form a company with a capital of.j!30,000 to , work tho coal upon the property and expend a sum of J53000 per 'imnuni in develop- 1 inent work, the lessors receiving 10 per cent, of tho profits in addition to a'small rental. It appeared, however, that Mr. Jonos had . obtained from somo of tho lessors ;df-'tho' main: block: a'deed. purporting to release him from tho covenants as to tho formation of tho company and the expenditure of .£3ooQ,per .-annum in consideration" of an ftdditional rental of .£IOO ..per annum. The • Commission" nrrived. at the conclusion that there: weroi. serious doubts na to, tho validity, of the leases, and reported against the , proposal that the lands should be disposed'; of in the manner., snggosted by the'lesseo. In consequence of the report a caveat was 'directed to be lodged against dealings with the property.' Tho caveat was not removed until after; proceedings in the Supremo. Court w>ro threatened, ''and after the. Registrar-." General arid 'the local ••. Registrar had;, satisfied themselves that it was'impos-; sible'in law to support the caveat. On.' the: receipt of the commission's report, ,"the Natives were notified by tho Government-of its terms, and it was stigges'tad' that they should. _ take- _ tho opinion of counsel as to their .position. At bhis time the Government was being approached- by the Natives and by therespective solicitors for Messrs. Jones and lewis, with a view to tho settlement of the difficult questions which, had arisen in relation to the block, and lit was desirable that the Natives should bo represented by connsel in these ne-'otiations. Mr. Skerrett was accordingly retained by the Natives who had approached the Government, and acted..for them ia the subsequent negotiations which took place.

Validity of Mr. Jones's Leases. Tho substantial legal questions raised as to the validity of Mr. Jones's leases, as understood by tlio Government at this time, were shortly that the lease of tie maih : subdivision, though originally valid, had become liable to. forfeiture •owing to the non-performance of tho covenants as to the formation of a company and the expenditure of JE3OOO. Eer ajiuuin, and' that the other leases ad been illegally granted , to Mr. Jones, and should never have been registered by tho District Land Kcgistrar. Tho lessee's ■ answer to these suggestions .was, as, to tho main subdivision, that the Natives had received the additional rental of .£16(1 per annum for a period of over twenty years, and had waived any forfeiture that had been incurred —and even.if this not so ths Supreme Court liad power to—and jvould in tho circumstances, relieve from ■ forfeiture, leaving the lessee to perform the covenants far tho future; and as to tlw other subdivisions, ho contended that, even .assuming . the leases to have been . illegally granted and registered, his title to' them was made good:by the terms of the Land Transfer Act, ho having purchased from, the registered proprietor without notice of any defect. The Government was; informed that Mr. Sfccrrett had advised tho Natives that tho leases other, than the . lease ■of the main subdivision were /invalidly granted, and tuat' if they had been made good by tlio provisions of , the Land Transfer Act the Native owners of these blocks ■were entitled 'to claim damages from tho assurance fund of the Laud Transfer Office, and that accordingly formal notice hod on April 19, 1910. been given to the KegistraT-General of Land* on behalf of , tho Natives claiming XSO.OOO damages.

Government Valuations. •As tho result of many months of negotiations, the Government c'amo. to tho conclusion that the best way out of tho difficulties was to purchase the interests of tho Natives and tho lessees in tho which they bclipved could havethen been-acquired for'twenty shillings (205.) an acre. The Government valuation of tho blocks comprised in the leases was at this timo J.','i1,273, but Cabinet dockled to have a special valuation made by- the Larals Department. Mr. Kensington, Umler-Secretary for Lands, accordingly instructed the Commissioner at IS'ew Plymouth to havo a, valuation made. The Commissioner employed two Crown lands rangers, who made an exhaustive < -iiappction- of the property, and on re:fipt of these officers' reports tho Com::.is"ioncr reported to Mr. Kensington int the Government could not safely pay :.nfp than .£20.000 for the land. . Mr. !>!)sington then reported fully -to the ■'..'nvermnent. suggesting, that it. might '." advisable, in order to have the arai -fttlcil. to pay. from' o£M,OOO to ,£35,000 for tho . whole_ ostato, ■ but. that there would be considerable risk of loss if more than ,£,'10.000 woro paid. It also Appeared that tho district surveyor who inspected the lajad in 1005 icjjoitccL them

SIR JAMES: 1 CARROLL'S STATED!. ;.. ; . VIGOROUS; DEBATE ■ THE ■ 6'OVERNMENT- 'OJ«'- TRIAL. .■■■..A PARTISAN COMMITTEE..

that in his. opinion, the block was not suitable for small'settlement.

Difficulties in the Way. Tho Government decided that, in tko face of this report, it could not purchase at the prico demanded. It next went into the question of taking the block compukorily. The law did not permit the compulsory takius of the Natives' interest. Their representatives; however, stated that they wore willing to se.ll their interest to the Government for the sum of It only remained, therefore, to exercise the power conferred upon the Crown of determining tho interest of the lessee in the lands. The Government found itself faced with these difficulties:—

(a) It was advised that it ehonld not pay more than £35,000 for the whole estate- in the land. (b) Assuming tho leases to bo good, the respective actuarial values of the i interests of .the lessors and lessee was' £U,M ami' JE20.700. '" . ' (c) It could not purchase tho Natives' ■ interest for less than ,£22,500, that is, XS2OO more than it value,, assuming the leases to be good. (d) If it purchased the Natives' interest for ,£22,500, it had then to determine- the lessee's interest in ■■•' .the land, and having done so it /must either have admitted the leases as good (in which case it had paid the Natives .£B2OO too much), or entered upon litigation of an extraordinarily difficult nature, and, more important still, it" would havo had to face, a claim by the lessco ; -.. ■' not only for (he loss of the occupation rights, but also for the of the rieht to work tho coal on the property for a period of nearly 30 : ■ years, for which a , ' Very large sum wonld probably be claimed,, and as to-which it was'impossible to ac-.-curately estimate what compensation might be allowed. The Government was forced to tho conclusion, therefore, that it could , not acquire the. property. ■At this stage, the position was as follows :—Expensive and .prolonged litigation appeared necessary-to determine the relative rights of the Natives,and the lessee in the-land. Claims for large snms against tho Land Transfer Assurance Fund were threatened both by the Natives and the lessee, and an area of 53,000 acres of land which had never been doveloped and had btacked.-.thc. settlement-.of lands behind it would continue to-be locked'up for an indefinite time until these disputes could bo settled. ■ ; ■ - . .^-i-n , Mr. Skerrett Comes"ln. . . On. September .20! Mr" Skerrett, on behalf, of "'the Natives, wrbte to tho Native Minister as follows:—

"I havo the honour to reply on behalf of the Native owners of the above blocks, being subdivisions IF, IG, 111, • and IJ, containing .about 53,185 acres, that his .Excellency the Governor may bo recommended to issue an Order-in-Council, pursuant to Section 203 of tho Native Land Act, 1909, authorising tho acquisition by, and the alienation thereof to, Mr. Herman, Lewis,'-notwithstanding' the provisions of such last-montionc-d Act, upon tho ground that it is expedient in tho public interest that such Order-in-Council should issue. 'I propose-to narrate quite briefly tlio facts connected with the blocks, tho terms of the proposed alienation/: and the circumstances which' I venture to submit render it. desirable, that' the aliena/ tion should be authorised. -•' ■ ■ .

"As you arc aware, ■ the Natives art the.owners of the abovo blocks subject to various! leases,' all-, registered under, the Land Transfer Apt, to Mr. Joshua Jones, for tho term of 56 years from the month of July, 1882,- at various rente; and subject to various covenants. Mr. Joshua Jones's interest -under these leases 'has become vested in Mr. Herman Lewis. Mr. Lewis's ■ leasehold interests are subject to a first mortgage to HoWers-'s Executors to secure the sum of ifili.OOO and interest.and subsequent mortgages, to F. G. Dalziell and T. G. Macarthy to secure tho sums of .£IOOO and _ ,£25,000 respectively. Tho amounts owing on these securities thus total to the sum of over .£IO,OOO. The Native lessors, my clients, claim that these leases are invalid on- various grounds, and in the alternative claim that they are entitled to re-enter under some or all of tho leases by reason either of non-payment of rent or by reason of breaches of covenant. Should tho registration of the leases to Mr. Joshua Jones under tho Land Transfer Act give to him and his assigns an. . indefeasible title, then the Natives eiaim a largo sum of money against the insurance fund as compensation for the improper registration of these leases. It will be seen that very difficult questions vrtll arise, and a litigation of an extensive character is likely to ensue, which may occupy many years and involve a very large cost to the Natives and to the Crown.. . . ;

"The existing leases reserve a very low rent, and are, generally speaking, disadvantageous to tho Natives apart from the circumstances that they keep the Natives out of possession 'of the land for some thirty years to come.

"Under these circumstances an arrangement between' tho 'Natives on the one hand, mid? Mr; Herman Lewis and his mortgagees on the'other, is very desirable both in the Natives' interest and in the public interest.. It is desirable in tho interests of' the Natives because it will put an end to-what may be an .expensive. and long-drawn-out.Litigation, and will put an end to leases granted by my clients upon disadvantageous terms. It is desirable in the interests of the public, because such an arrangement would at once make available for settlement a large area of land suitable for' subdivision and sale, a condition.of things much to bo desired in tho interests of the public generally and «f the West Const of the North Island in particular. . . .

The Position To-day,

"Negotiations Tiave therefore taken place-between myself as representing the Natives'on the one hand, and Mr. Dalziell as representing Mr. Herman Lowis and his mortgagees on the other hand. I think that an arrangement can bn made by which the Native .owners should sail their reversion in the block expectant on 'the determination of tho leases for a. sum of .£25,000 to bo paid in cash within three months .from the date of the contract. It would-, bo a term nf the- contract for sale that Mr. Uerrrnan Lewis should, within a period of threeyears, subdivide and sell the: blocks of kind in areas not in excess of the areas prescribed in Part 12 of the Native Land Act, 1)109; and that Mr." Lewis should not be.entitled to call upon the Native vendors for conveyances; orj'transfers of any part of the block except, to purchasers of tho samo in the prescribed areas. Tho interests of the Natives"'will bo protected, because if the is not paid within three months they will bo entitled lo rescind tho contract for sale, and the parties will revert to their legal rights nn'.'-rior to the making of the contract, The whole arrangement will bo made without prejudice to v the existing rights of.- the .Natives- to void the leases or to re-enter and determine the leases should for any cause tho salo not eventuate. "This arrangement can only ht> given effect to by an Order-in-C'ouncil under Section . 203 of tho Act; arid I am accordingly applying for an Oruer-iu-Council under that section. "I have already pointed out cogent reasons why it is in the intttrusts of the public that, tho alienation should bo permitted. I .may further udd that the Crown is greatly interested, and indeed only less so than the Native owners, in the settlement of tho litigation which may lako place in connection with the registration of the lease:) under the Land Transfer.AfiL

"Tt is clear (lint the. policy of the Act in limiting the area of Native land, to Ijo acquired by individuals is carefully safeguarded by the proposed arrangement. The Order-in-Council would only permit the particular alienation contemplated by the contract to be carried into effect, and it is part of the term of such alicna. tion that the purchaser caiuiol call for conveyance or transfer except to sub-pur-chasers of the prescribed limited areas. Under these circumstances, therefore, J venture to express the confidant hope that you will bo able to recommend the Governor to issue the Order-in-C'ouucil applied for.

"There is only one other topic to which I wish to refer. The Court of Appeal has expressly decided that Mr. Joshua. Jones has no claim to iho leasehold interests, but if the Government so desires 1 understand that Mr. Lewis and his mortgagees would not object to agree that the proceeds of the sales of the block should bo held by them subject to auy claim or right thereto, which Mr. Joshua. Jones could hereafter establish in a Court of law or equity. It appears to me that the only merit of Mr. Jones's claim is that' of unwearied persistence. But I desire to point out that.he has no claims, and never had any claims against my clients, the Native owners, and it would be an'act of injustice if any clniin of Mr. Jones, whothor fanciful or real, should bo allowed to stand in the way of tho Native owners making an arrangement which is so advantageous and desirable in their interests. "I have the honour to be, sir, "Your obedient servant, "C. P. SKEEBETT." The Order-in-Council. Tho Government finally decided to agree to Mr. Skerrett's proposal, and on Deeejnber 5, 1910, Cabinet resolved that an Order-in-Council should issuo permittinß the lessee to purchase the Natives' interest in the land. In arriving at this conclusion tfie Government was influenced by the fact that, unless it took compul. son y, there was no means by which tlm settlement of the land in small areas could be secured during the rem'ainins term of the leases—about thirty yearswithout the consent botli of the Natives and the lessee.

With regard to tho proceedings subsequent to the Cabinet resolution, these were purely Departmental, ami were earned out in every respect strictly in accordance with the procedure of the Native Department. All necessary notices were given, and the provisions of the Native Land Act and regulations were fully complied with. (See New Zealand Gazette, page '1319, in which the president of the ' board publicly notifies that the board would consider the applications for recommendations to his Excellency the Governor to authorise acquisition of areas under Section 203 of the Native Land Act, 1909). The Ordor-itt-Council was not issued until after the meeting of assembled owners, because it was not deemed advisable to issue it until the lessee had after that meeting entered into an arrangement securing the settlement in small -areas of the block. The issue of tho_ Order-i ti-Comicil at that tinio was plainly valid, and,could not prejudice tho rights of anyone. The gazetting of the Order-in-Council was delayed owing to the absence of his Excellency the Governor from Welling-ton,-but that delay did not, and could not, affect the rights of any of the parties concerned.

The Maori Land Board, The Government was not in any way concerned with tho negotiations between the Natives and the lessee' as to the terms of purchase of the interest of the Natives. This is a matter purely within the jurisdiction of the Maori Land Board. There can bo no doubt, however, that the price received by the Natives is greatly in excess of the actuarial value of their interest subject to the,leases, and the question of a fair price- for a .compromise of the threatened litigation as to the lessee's title was one very difficult to determine. A fresh valuation of the block was made by the Valuation Department at tho instance-of tho Maori" Land Board, and the value was certified to bo a little over ,£IO,OOO.

With regard, to Mr. Jones's claims to tho block, the Government, as his solicitor, will no doubt acknowledge, did all in its power to obtain for Mr. Jones some interest.in this land, but it was finally driven to tho conclusion that as our Court had held that ho had no claim of any kind to the leases, and the Grown could not acquire the land, it could.do nothing for him.

The position to-day is that tho title -of the Mokau Block is vested in tho chairman of the Maori Laud Board. . Tho land is being surveyed and roaded, and must bo sold in areas not exceeding dOO acres of Erst-class or equivalent areas, or, second or third-class land to persons making the necessary statutory declaration. If it is'not so sold within three years, the Maori Land Board is empowered to conduct tho sale.

It has been suggested that the. Order-in-Conncil should have been issued so as to permit, anyone to acquire the interest of tho Natives iu the block, and not merely the lessee: The answer to this suggestion is simple, namely, that if this course had been adopted the Land Transfer Assiiranee Fund would have been left open to attack, and. further, the lessee would have been under no obligation to subdivido the land during the-thiity years of his term.

To summarise the position:—There were three separate interests involved:—(a) the ' Native owners; (b) the lessees; (c) the. Crown, on account of tl><> threatened attack on the Assurance Fund and the. desirability of securing tho settlemeat of the block in small areas.

( Alternative Courses. Tho alternative courses open to the Government' were:

(1) To do nothing in the matter, (2) To purchase the land. (3) To purchase the interest of the Natives and take compulsorily tho. interest of the lessee. (4) To permit the Natives and lessee to come to an arrangement under which the claims against the assurance fund would disappear and tho settlement of the block in small areas could bo secured.

If (1) had been adopted, the assurance fund would probably have had to pay a considerable sum of money either to the Natives or the lessee, and the settlement ot tho land would not bavo been secured. The Government did not adopt (2) because tho best advice it could get was to tho effect that it should not pay more than .£-35,000, and tho parties would not sell for less than .£53,000. If (3) had been adopted, the Crown would havo had to pay the Natives what may havo been very much more than tho value of their interest. It ■ would havo been involved in a very serious and expensive litigation, and havo had to nie'et a claim for a largo sum for the lessees' interest in the coal rights. . • By ndopting (4) tho Government 'has obtained tho immediate fcttlcment of tho block in small areas without 'the risk of a penny to the State, and has saved the assurance, fund from a serious attack. In adopting this course, if relied upon tho fact that the interests of the Natives were protected-by their counsel (Mr. Skerrotty, and that, with a full knowledge of tho circumstances, Mr. Skerrett applied for an Order-in-Council to permit this method of settlement.

This statement probably gives sufficient information' to enablo the Government's part in this very complicated matter to bo understood. There is no reason, however, why every detail of the transaction should not have the fullest publicity, .ind tlip Government will be very glad to assist so far as it can in this direction.