EAST COAST TRUST NATIVE LAND BOARD.

Gisborne Times, Volume XIX, Issue 1618, 4 December 1905, Page 3

EAST COAST TRUST NATIVE LAND BOARD.

t (To tho Editor Gisborno Times.) • Sir-, —Hitherto tho Board, has refrained • from common ting on tho various criticisms 1 on its raanagoment of tho trust lands > whioh have appeared in the pross oolumus 1 from timo to time. But ns it would appear from eorno of tho ultornncoa latoiy i mado by lootrl candidato3 at tho present eleotoral oampaign that oonsidornblo inis--1 approhonsion exists regarding tho origin of tho Board and tho soopo of its dutos and operations, tho Board wiahos to plaoo before tho public, through tho medium of your papor, tho following statement:— From tho days of tho Native Land Sattlemoot Company up lo tho present yorr tho Trust Estate was largely indebted to tho Bank of Now Zoaland, and in tho year 1902 the Bank took possession of suoh of tho lands as were comprised in its soountios, and advertised them for sale under the conduct of tho Registrars of the Supremo Court. Tho Bank’s notion was strongly resisted by the Trustees, who usod every means iD thoir power to prevent a foroed rca'isation. Evontually the parties arrived at a compromise, and to enabls it to be carried into effeot, the Government was asked to give it legislative sanction, whioh it did by the j East Coast Native Trust Lands Aot, 1902 i Briefly, the objeots of tho Act were : (1) < The suspension till the 31st August, 1904, of the Bank’s powers of sale as mortgagee in order to allow of arrangements being mads for the redemption of the securities . by that date; (2) tho prevention of all ' future litigation in respect of tho titles of tha trust lands; and (3) tbo prevention of all future litigation in regard to acoounts between the Trust Estate and the Bank.

The principal provisions for oarryiDg out the objects of the Aot are : The Governor is empowered to appoint a Board coosiotiog of three persons lo bo paid out of the prooeeds of the trust estate such sa'arioa as the Governor-in-Oouneil may proaeribs. (No pari of tho ealaries or other expenditure of the Board is payable by the Government.) The fee simple of all lands hold by the Trustees in trust for Native beneficiar’e3 at the date of the passing of the Aot, and whether comprised in the Bank securities or not, vested in the Board, immediately upon its appointment, the Board’s title te such lands was made indefeasible and it was provided that the terms and conditions of manage-

ment, selliDg, oto., of the lands should be subjeot to approve! of the Chief Judge of the Native Land Court. Much has been said as to the mauner of the appointments to the Board. The Aot provides that they shall be made by the Governor. It is well-known that when such appointments are made it is usual to oonault the wishes of the patties ioterested. In this oase the parties were the Bank on the one hand, and the Trustees aud the. Native bene* ficiaries on the other. Consequent on the conflict of interests involved months elapsed before the Bank, the Trustees, and the beneficiaries came to on agreement as to the personnel of the Board, and it was not until March, 1903, that the names of Messrs Maofarlane, Harding, and Shrimpton were finally submitted to the Govern* ment, and their appointment gazetted. The task the Board had to faco was Ihe liquidation by the 31st August, 1904 (chat is to say, within less than 18 months) of the Bank debt of nearly £160,000, whioh was secured on land and live stook of a then estimated value of £184,000. The Board has since paid off that and other large debts, and there remains a surplus of some £BO,OOO on l-eal’sation of the Bank securities and of £93,000 on other trust lands ; in al>, £173 000. But at that timo the question was not what surplus would remain, but was it possible to pay the Bank debt at all, there being every prob-

ability that the estimated margin of the value of .£24,000 would di?appoar before realisation was effected. Now that the financial troubles of the Trust have boan

overcome there is no reason why it should not be made kuown that the estate was then so poorly thought of that no financial institution in the colony would for a D'omsDt- entertain any proposition for taking over the debt, nor could any advance whatever be obtained by the Board 0.. any of the trust lands, however largo iu extent, with the exception of a sum of about £3OO, with which the Bank of New Zealand redeemed an overdue mortgage and a few comparatively small amouats raised locally. This indicates the public value put on the lands at that time. For the purpose of liquidating the Bank and other debts, the Board sold 51,900 acres, and leased 61.800 acres, making a total area of 113,700 acres sold and leased. Some of the lands which did not lend themselves to subdivision were sold in one block. Others such as Paremata, Mmgaheia, MaDgapoike and Tabora, were subdivided. In every instance the Board availed itself of expert advice, and oaoh block was dealt with in such manner as was deemed most likely to secure the best possible finanoial results. The statement has been made that one block of 17,000 aores in Mangapoike has been leased to two persons in areas of about 8500 aores each. This is an error.

The block referred to is no doubt Mangapojke A, comprising 16,400 acres, which has bean subdivided into four sections, eaoh section beiDg leased to different persons. The Board desires to state clearly the relations that have existed throughout between the Trustees and itself. The Act provides that the terms and condilions of management and of dealings with the properties vested by the Apt in the Board, shall be agreed upon between the Trusters or beneficiaries and the Board by deed. Such deeds onca having been executed and approved of by the Chief Judge of the Nativo Land ; Coutt. the management or, rea'isation , teats ontirely in the hands of the Board, 1 with whose administrative aoiion neither the Trustees nor tha beneficiaries can interfere. Everyone conversant with native

I land transactions is well aware of the tedious delays and great difficulties inseparable from dealing with beneficiaries. Mr Carroll has at all times used his good offices in endeavoring !o minimise these diffioulties, and to lessen friotion between the Board and the boneficiarios. But with the actual work of selling and leasing the lands Mr Carroll has had nothing whatever to do. The 101 l responsibility if ibis r.sts on the Board. And the Beard claims that having beon entrusted with an unpioIfitable aud, so far as the Bank securities were concerned, a virtually bankrupt estate it has administered it successfully It has paid off the he ivy liability bj which the estate was being swamped, il has secured a large surplus for the benofi of the rightful owners, and has brough into protitab'e European occupation larg arcai of Native lands, the working o whioh cannot fail to mato ially onhanc 1 the prosperity of the ■ district. —Your 1 faithfully, ' T. A. COLEMAN, * Secretary East Coast Native Trust Lands Board.