THE MANGATORO CASE.

Free Lance, Volume I, Issue 43, 27 April 1901, Page 16

THE MANGATORO CASE.

IN relation to tins case, upon which we commented in our issue of October 13th, Captain Hamilton writes to us as follows — In your leader of the 13th October, you introduce this case You say that the property was sold by the bank becauso it got no interest on the sum of £60,000 borrowed. The following, however, are the facts. I owned the Mangatoro property (which was obtained directly from the Maori owners), and occupied it from about 1857, and for more than twenty years no money whatever was borrowed on it. The property was sold, or rather bought, by the bank for £5000, on the 25th March, 1889. Not more than a month or two before this the property was valued by the bank's professional valuer at about £180,000 Previous to this valuation, valuations had been made at intervals for a number of years, and, in every case, the valuations had shown a large margin outside of the debt. These valuations were made independently by the most experienced, reliable, and successful settlers in the country. I was not aware what the valuation was until some eight or nine years after it was made. The following is an extract from the printed advertisement bv the bank at the time of sale, at which, of course, the usual legal formalities wore observed — "In 1887, 26,000 sheep were shorn, the wool returns netting £5540 1 16s Bd. Last year (the year following. 1888), the total number shorn was 40,000, the returns for which have yet to be received from London." The clip then, in ratio, might have been expected to nett between £8000 and £9000. As a matter of fact, £6514 19s lid of this had been received at about the date of sale. The following are the actual figures supplied by the bank on the day ot sale — £ s d "Estimated net letuinsfiom clip 9000 0 0 10,800 sheep sold this season— stoieweth ers, cull lambs, old cull ewes leahscd 30b > 0 0 2 000 wetheisfiozen for London market estimated to leturn 12; pel head 13W 0 » Total ±13,283 ° °" Lernt £ b. a Woiking expenses and In terest (.Copied from Bank books b> the Bank's Accountant) " Working expenses including all salaries and allowances 2504 1/ 3 Rates, Taxes, and Carnage of Wool to port b8( 11 1 Interest per Bank Book, at 8 ptr cent , for Financial Yeai ending March 31st, lbi>J ')016 16 A Surplus ±4,2bS * 9 The terms of payment will be cash in one month " It will be seen from the above figures, which are those of the bank, that, so far from the property being sold for default of interest, as stated by you it was making three times the ordinary interest on the amount ot the debt, and was charged interest at tho rate of 8 per cent, instead of the b per cent, commonly charged on such accounts. Also, that the sum already in hand, £0314 19s lid for wool, and £3085 for stock sold, made together £9599 19s lid, and left a surplus ot £583 3s Bd, after paying the working expenses, etc., and inteiest at 8 per cent, for the year. The figures are, at any rate, approximate. Nor was the large increase in mcome due to an unusually favourable market, or to a large outlay. On the contrary, it was at a time of great depression. The year previous to the sale, a bale of cross-bred wool produced from Mangatoro was shown at the Melbourne Centennial Exhibition, of 1888. This took first prize "for the most value per fleece," and to do this had, of course, to beat the whole world in the class, which was done by 2b bet per fleece. The remainder of the clip was sold in London for 2d per lb. more than the Melbourne Exhibition valuation. Astounding as the action of the bank was, under the circumstances, it is still more extraoidinary when gone into in detail. When I was invited to place the account elsewhere, I was persuaded by the bank not to do so, and when, afterwards I obtained the advances in reduction winch I had been asked by the bank to do, the bank would not accept them I was kept in the belief that "it would be all right in the end," that the property would be back in my hands, and that I should suffer no inconvenience , that, it was the wish of the bank to assist in developing a strong interest-paymg account. As soon as the bank bought the property in, I was reinstated in the management in my own interest® and those of the bank. I remained in the management for a year or two. All outlay on the property for working expenses or improvement was with the written authority of the bank. Immediately after the sale £8000 was authorised by the bank for felling bush and the expenditure for improvements after I ceased to manage for the bank was on a far larger scale. The question of the nature or tue

management is disposed of by the rapid increase in stock, improvements, and income by the amount of the working expenses, and the high honours taken when competing against the world's clip. When a year or so had elapsed, during which I was unable to obtain any basis from the bank to pay off the liability, I applied for a reloa&e from the liability. This was refused. The same evidence of these facts is available as for the figures quoted above. You will now see that Mr. Hall, the member for Waipawa, and the Hon. Mr. Ward, were fairly correct in quoting, in. the House, the above case as showing the need of radical alteration in the mortgage law. I may add, the ca.se has been discussed in the papers in various parts of the country and in England lately, probably with more or less friendly intention, but generally with an imperfect statement of the facts. I think it better to supply some of these. but .have no wish to supply more unless forced to do so. I hopei that the present custodians of my property have until now been ignorant of the fact.s.

Ned Kelly in his suit of mail, Was pioof against all lead, And how he laughed when all did fail, To lodge it in his head Then let us all be on our guaid, While long life we assuie, For coughs and colds ha\e some legaid, Take Woods' Greu Peppilioiim Cdkl.

G. A. HUXLEY, ESTATE AGENT, SHAREBROKER, LICENSED LAND HUUKLR UNDER L \ND TRANbFER ACT FOR SALE. BROOKLYN-60 x 200 £160, oi 60 x 200 £90, I acre £140, all in Cleveland-st BROUGHAM-ST—Corner ot Pnie-st, beautiful Building Section, 62 feet frontage, only £11 HAWKER-ST—6 r. House, land 18 i> 103, £400 MAJORLBANKS-ST—25 x 132, 7 looms, veiy convenient to tram, well built, £875, terms HAWKESTONE-ST—B i. Dwelling, land 33 x 63, £650, a baigain PETONE—4, 5, and 6 r. Houses, good streets 10 acres MANUKAU, neai Levin, 5 r. house, £360, also 130 ac leasehold, all grassed, for £50 690 ac, KERERU, 50 ac felled, 35/-, only 5 m. from Railway 1970 ac, AWAKINO, 25 m fiom Te Kuiti, 470 ac glassed, a splendid run 2000 ac P/Lease 50 m fiom Gisboinc and Opotiki, 180 ac level, 230giassed. Goodwill £1250. Money at 4^ %