The Telephone. PUBLISHED EVERY TUESDAY, THURSDAY AND SATURDAY MORNINGS. GISBORNE : THURSDAY, NOVEMBER 15, 1883.

Poverty Bay Standard, Volume I, Issue 9, 15 November 1883, Page 2

The Telephone. PUBLISHED EVERY TUESDAY, THURSDAY AND SATURDAY MORNINGS. GISBORNE : THURSDAY, NOVEMBER 15, 1883.

We have before us the Balance Sheet of the New Zealand Native Laud Settlement Company (Limited), as submitted to a meeting of shareholders, at Auckland, on the 6th inst, the Liabilities and Assets, in roui.d numbers, are: Liabilities— Various ... ... £260,367 5 5 £10,812 0 8 E s timated value of p r o p er. ties 275,901 16 5, £286,713 17 6 Thus shewing an apparent balance of £28,346 lid Od, of assets over liabilities which amount is, however, purely imaginary and derived from an over estimate of the Company's alleged lands as above, £275,901 16s 9d, over estimated by at the very least one fourth or £68,500. The amount of the liabilities are indisputable but the assets are, to a very large extent, fictitious the actual assets being really £10,812, taking the Company's own figures for the data. We have carefully gone through the balance sheet and from facts and figures before us show the following as the real financial position of the Company.

£335,367 5 5 These figures are truly startling, showing an actual deficiency of £117,153 8s 9d, which deficiency would be largely increased were a true valuation made of all the Companies properties shown in the schedule of lands. It is there stated that the Company hold on actual and estimated areas 277,500 acres, including a large number of blocks to which not the semblance of a title can bo shown. The actual area of lands to which any title is held, does not exceed 91,000 acres, much of which is not worth more than 2s 6d per acre. Taking the statement in all its surroundings, unauthenticated by the name of any director or secretary, it is undoubtedly one of the most glaring untruths of the kind ever published, and in the way of balance sheets unique marking, a new system of financial arrangement. The strong element of sanguine estimation is the most noteworthy feature throughout. Estimated acreages, estimated value of properties,'estimatedprofits to Natives, estimated profils to the Company, estimated area of land soon to be completed ; but the statement carefully avoids an estimate of the current expenses of the company, which for interest, and working cannot be less

than £20,000 a year—a large and aerious item when chargeable only against ealtmated profits, The directors apparently purposely omit publishing a statement of receipts and expenditure so that we cannot conjecture where the large slims received and borrowed have gone to, £76,136 14s 3d, being the total sum as expended by way of purchase monies, advances, charges, etc., as against upwards of £150,000 received, leaving a balance unaccounted for of £74,000. There are several items of liabilities not taken into account by us, or shown by the Company, such as the 8 per ceut interest guaranteed to capitalist shareholders, which would amount to some £2500, also Property Tax, and other necessary contingent expense not allowed for under any head.

This shows a most damaging state of things to the district as the large sums, such as £58,000 overdraft, aud £58,000 mortgage, must cause a tightness in the monetary transactions of the Bank giving such large accommodations fornon-beneficial purposes, except to themselves, but injurious to the other clients of the institution. The following is the schedule of lands claimed by the Company, and referred to in the foregoing:—

Liabilities — To Natives—two thirds profits, us estimated by Company ... £85,005 1 6 Mortgages ,,, Bank overdraft 58.2H4 6 9 68,050 14 3 Sundry liabilities, as per statement ... Promoters’ shares, £5 paid up ,,, Capitalist shares (Euro* peans), £1 paid up 20,914 3 11 10,000 0 0 21,213 0 0 Original shaves (Natives) £5 paid up (omitted from statement) 75,000 0 0 Total £335,367 5 5 Assets— Sundry amounts, furniture, etc, as per statement £10,812 0 8 Estimated value of pre per* ties ...£275,901 16 0 Less over estimated 68,500 0 0 207,401 16 8 Total ... £218,212 16 8 Deficiency of assets as against liabilities 117,153 8 9

Property. Acrkaom. Mangaheia, No. 1 ... 17,162 Mangaheia, No. 2 ... 7,000 Paremata 7,947 Waimata, North 4,828 Waimata, South 9,555 Waimata, East Waimata, general—North, South and East Pouawa ... 4,966 8,867 Pouawa, No. 1 Kaiti (freehold) 5,987 3,500 Kaiti (leasehold) Papawhariki 110 Wainui Station (stock J and clips) Whataupoko—Hapara 460 No. 3 Gisborne N. 1,000 No. final ordei 11,000 No. in trust ... 500 Matokitoki 170 Metawhero B. 400 Matawhero, No. 1 ... 400 Tangatete, Nos. 1 and 2 78 Karaka ... 115 Makauri 400 Pukepapa 1,000 Kaparo ... ... ... TeKuri... 300 400 Pakowhai 4,950 Oka.hua.tiu, No, 1 ... Okahuatiu, No. 2 (Aroha( j-22,000 Tangihanga Mangatu, Nos. o and 6 J 40,000 Mangatu, No. (iease) 90,000 Motu, No. 1 2,000 Mahia and Tawapata South 10,408 Maungawaru ... Wuiapu Properties under negotiation Wairoa Blocks „ ,, Other properties ,, ,. Less Unallocated Law Costs and Surveys, eto. Less Depreciation (2 per cent.) for Native Reserves on total value of Properties 22,000