EAST COAST LANDS.

Gisborne Times, Volume VI, Issue 193, 22 August 1901, Page 2

EAST COAST LANDS.

BANK WILL NOT WAIT LONGE!

THAN JANUARY.

(Special to Times.)

Wellington, last night. I had a talk this afternoon with Mr Foster, who is acting for the Bank of New Zealand in the matter of the East Coast native lands, over which the Bank holds a mortgage. He tells me that the Bank will foreclose, and sell in January next, unless there is Government intervention, or some satisfactory settlement in the meantime. However, there is an indication of the intention ot the Government to do something, but of what nature is a Cabinet secret at the present time. This much is certain, that MrFoster is expecting daily to be called on for an explanation of accounts relating to the mortgage, and to give evidence as to the effect of the Government assuming control of the lands. Of course it is impossible to speculate as to what may be the result of forced sales by the Bank should that eventuate, but if the lands do not realise the amount oi mortgage, some hundred and twenty thousand pounds, the Bank will buy in, and probably afterwards decide to cut it up into blocks, and sell as purchasers come forward. The Bank has the utmost confidence in the profitable character of the lands if opened up for settlement, as evidence points to the fact that even in their present undeveloped state they produce more than enough to pay interest on the mortgages. With regard to the Tahora block appeal it is important to the bank that it should maintain its caveat, and if tho present one is removed®by the Court of Appeal when the ease comes on in October the bank will simply lodge another, and so on ad infinitum. Nothing has been done so far towards stating a special case as suggested by tho Court at last sitting.