LAND BOARD ENQUIRY.

Wairarapa Daily Times, Volume XV, Issue 4810, 28 August 1894, Page 3

LAND BOARD ENQUIRY.

Alleged Irregularities

(By Telegraph. —Press Association),

Wkllixotox, Tuesday, On resuming yesterday afternoon, the next witness called was Win. Lowes, said he received instructions from Donald Donald to sell sections by auction at l'ahiatua, separately. Verbal instructions were given by Donald Donald, who said that in reference to 12 and 13 lie w acting on behalf ot his sisters. Knew the liauk of A'cw South Wales had a mortgage over the freehold. Mr Tabuteau repeatedly since the sale said he was to submit to Mr Donald any offers for llio properly. Mrs Shaman ntid Mrs Arnot were stated to be the owners of sections 12 and 13. Was quite sure that Donald snid section 13 belonged to Mrs Sharman, Donald told him both sections belonged to Mrs Arnot, though (he leases were in the names respectively of Mrs Arnot and Mrs Shannon. Felt sure that it was not until after the sale that Donald said both sections belonged tojfrs Arnot. Archibald Stewart, l'ahiatua, J.l 1 ., stated that lie had had conversation with Sharman in reference to section 13, Makuri. At the time of the conversation had a dispute with his bushinen over paying them. Told Sharman the sale of his section was rather a risky affair, as the section was liable to forfeiture. Sharman said lie did not care as he had the money, It was generally understood in Ids district that the Laud Board must approve of a transfer, The whole property, to all appearance, was occupied and worked by Donald. The conversation he had referred lo was fixed in his mind because of the dispute with the men. Had told several people in l'ahiatua of his conversation with Sharman. According to reports, section 13 was the key to the whole of Donald's property. Sharman lud often expressed regret that lie had not asked move limn £IOO for it since he had found it was the key to Donald's property, Winter, MasteitaJ wlio'lived in Makuri four years ago, said that in Maj r , 1800, lie was working for Donald as overseer. Donald's property comprised sections 31,32,31,11,12, and 13, the two latter being Mrs Arnot's ami Mrs Shannon's. Section!) belonged to Mr Hirschberg, and section 10 to Mr Matthews. Had never seen any of the four latter on the property, MrsElanc was supposed to own section 11. Scott,' Ikos felled the bush on sections 12 ami 13, but their contract included bush on sections 31,32,33, and 31. Mr Donald employed them to do the bushfalling. In the following year contracts were let by Mr Donald on these sections, l'aid some of the men with orders on Donald. A wharo was built on section 12 by Mr Donald, Witness lived in it for some time. Hod-made attempts to burn sections 12 and 13 under instructions from Dounld. He asked witness to take it up for his own use and benefit, Witness had no money himself. Took up the „ 630 acres on the cash system for Donald, and'was toftaiisfer it to him when the title was completed. That was done George Winter, Makuri, settler,knew Mr Donald's sections as well as those adjoining. Donald's cattle were put on the sections. There was no difference in the occupations of sections 12 and 13 to the ones owned by Mr Donald. Donald Donald, sheep farmer, stated that he thought of applying for sections in the Makuri district in the year 183!). At that time he had property in Masterton, and oil the East Coast. The Masterton property amounted to 200 or 300 acres. Frederick Winter had not applied for section 31, Makuri, at witness' request or for his benefit. Did not remember handing Winter the form of application, but ho (Winter) had consulted him upon the matter. As far as lie could remember lie told Wiutcr it would be a good thing for him to apply for the land. Could not remember whether he supplied Winter with the first instalment for the land, He did not remember offering to assist Winter to acquire the section. He advanced the money to Winter for the section. There was no arrangement as to interest or security. He had known Winter for a very long time, aud he was prepared to assist him. It was a fact that he had taken a transfer of the land from Winter a short time after. He did not givo Winter any money when he took the transfer from him.

Mr Skcrrctt: Mr Winter sayshc took tip the section in your interest. ' Witness: That is untrue. Mr Skerrett: Mr AVinter says you paid the balance of the purchase money to tl|o Crown, and you took the transfer from him as arranged. Witness: No. Continuing the witness said he did not thjnk it was curious that lie should have applied for the same section that lie h(id advised his man to go in for, His wife had applied for section \2 at his request. Mrs Arnot and Mrs Donald applied for section 13 at his suggestion, but he did not remember if Mrs Blanc applied at his suggestion, Every payment made to the Land Office iu connection with sections 12 aud 13 were made by witness, In regard to all the cash sections, lie would not say all the paymcuts wcro not made by himself. Could not remember Slow the money for Smith's, Hirschborg's and Matthews' sections was found. Gave somo little advance to these people on 'their sections, lie thought-. It might have been £O. Would not swear lie did liot find the purchase-money for Plane's section. Let contracts for bushfclling Boqn after the sections were balloted for. Sco[t Pros. 1 contract was over all the sections, and for 1,500 acres. Payment Was made by witness by cheque. Made arrangements wjtli the Bank of New South Wales to find the money for the hush contract. Arranged with Mrs Arnot to carry on the improvements for her. Whatever interest he was paying his bankers, Mrs Arnot was to refund. She was his sister, and had means of her own, Expected to get repaid by Mrs Aruot when she was iu a position to do so.

To the Commissioner: Had 110 intention of misleading the Board in auy way, To Mr Gray: There was Rood reason have control over seesection. Would sooner be repaid than stick to Mrs Arnot's section, provided lie could maintain access. The transactions in regard to Mrs Arnot's sections were as honest as Mr Winter's, Winter had nothing to do with the purchase of his land after he applied for it, Believe he instructed Mr Beard to complete the title for section 13 (Mrs Arnot's)) nnd lie found the money, but no arrangement was made for security or repayment, Left the completion of title to section 13 entirely to Mr Beard, Was not very familiar with the Land Act. Tlie account in the ledger between Mrs Arnot. and Ijimsdf was not manufactured' for purposes of the present enpry, Most of Mrs Arnot's own money ifas'lent on mortgage for a term of year?. ' Iniprofemcnts on sections 12 1M(113 ij'crc'ilonp for Mrs Arnot's benefif.' Tljcyb' ivas never any agreement that sections 12 and 13 were to be transferred to him by Mrs Arnot. Ko returns were received from the property other than the thirtv-threo cows mentioned in the ledger, Mrs Arnot discussed the position of the sections with him from time to time, and consulted him in regard to buying some stock she knew of to put 011 it. The enijuiry was then adjourned until tliis morning at 10 o'clock. On resuming to-day, George Moore, Clerk to the Pahiatua County Council, deposed that sections 12 and 13wcrc in the name of Mrs Arnot, and flmt the rates-oil the same were paid by Donald Donald. • James Scott, bushfcller, living at Pakiatiia, was oxamincdns to his transactions ffitli Mr Donald, respecting the clearing of bush 011 various scct-ious, including section 13, ' • •■ 'George'Mobrc,'rc-callcd, said that he fffi'iiot awarie'lh'at' ftdcniiuid viiii'ccc'iitl| : Ado upin MrS Shaman for non-payment of rates on section 15, (!.'A. Tgbuteau, manager of the Bank

of N.S.W., Maslcrton, deposed that in 1891 the Hank took amortgagq from Mr Donald over tlio whole of his property at Makuri with the exception of sections 12 and 13. The mortgage was for £11,500. Tlio Bank also held a mortgage over Mr Donald's Mastorton properly, which was valued at £7OOO. lie was not aware that Donald proposed io spend money on sections 12 and 13, and ho had never had any conversation witii Donuld regarding tlio expenditure of monoy on those sections, in Jauuary, 1801, everything Donald possessed was mortgaged to the Bank, and it reduction of the amount was insisted upon. This closed Mrs Simian's caso but (lie Hoard decided not to give its decision until it had heard Mrs Arnot's ease. Mr Gray appeared for Mrs Arnot, widow, rc-iding at Masterton, who deposed she was a successful applicant for section 12, It was understood that her brother, Donald JJonald, . was to assist her financially, and was also to manage Improperly.' At that tinio she had other properly valued at something less than £I,OOO. She took up the property because her brother did not want an undesirable neighbour. All through she trusted tohei brother. She had nevcrnulherised Mr Beard, solicitor, to place her lease with the Hank of licw South Wales. Allcr some further evidence from Mrs Arnot, the Hoard adjourned until Thursday nest, when Mr Gray will adrcssil.