THE MOKAU BLOCK.

Evening Star, Issue 14626, 24 July 1911, Page 5

THE MOKAU BLOCK.

THE ACTUAL FACTS

ISrECIAI, TO THK Sx.ut.2

It is an interesting and a troubled stoiy jow "Mr Joehna Jcnes secured kvises of the Mokau- Block en a splendid navigable wntenray, and reputed to contain coal, etc. At the outset his interest was the eastern portion of the Mokau-Mchakatino Block, comprising 30.000 acres, which ■ was dealt with by the Native Land Court in 1882, and for which he obtained a certain number of signatures. In 1884 an Act was pafeed temporarily prescribing dealings in native lands within a certal district in which this block was included. This was dona by Sir Harry Atkinson's party. Mr Jones thereupon complained that the embargo {by preventing Ids completing his lease) was unfair to hiin, especially nfi he bad entered into negotiations for a 5f years' lease of 56,000 acres. So in ISBS t clause was passed permitting him to go on, and finally, in 1887, Sir Ha.rrv Atkinson, as Premier, pa.'sed an Act parmittini: the comnhtion of the whole lease transaction by Mr Tones. The Natives -were to receive a rvppercorn rental, and were solaced with the promise of royalties' on coal won under !he development scheme which Mr Jones ,vas to undertake. Ha vine: tim.s senired lis titles. Mr Jones proee-'ded to look about dm for ways and means for the great ; chemo of development of th:> mines and list rift which was to cive a new province :o New Zealand, and i:i which he bad. unonirst other suppori. the enthusiastic support of a very abh- and powerful editor Df the • Evening Port ' iMr E. T. Gillou)— a fact which has tried tonally, interested that newspaper in Mekar affairs. Mr Jones mortgaged his leases ft. Mr John Pliromer, of "Ark" fame, and hied himself to England to secure the lar-jo amount of capital necessary. Tliere he Kfo.ime involved in a sen of troubles. a;:d Mr Plimmer foreclosed his mortcaiic. Mr Jones was dcalinc: at this time with one Mr Wiekham Flowers, an English solicitor, and the latter boucrht the"lea>.-s from Plimmer. At this st.vze Mr Heni-y Lalxjuchere, M.P.. the proprietor of 1.-otidon 'Truth.' he .'tin :o take an interest in Mr Jones, and took jp the rudaeis on his behalf, and lias welded them at intervals ever since. Flowers died, and his tnislees sold the interest he had acquired to Jones, suhie> ■' to a mortgage to them. Once more the .loirs settlement schemes were revived, hut Ktm the r-onditiors of the mortgage remained '.vnfmfilied, and so the trustee,; exercised their power of sale through the registrar of the New Zealand Supreme Court, buynitr in the leases . themselves. Mv Uerenmn Lewis, of Wellington, nest purehasoil the leases from the Flowers trustees, aid again subject to a mortgage to them. A Dink-nit IVfitiom B'lt Mr Lewi.-, though with a good title to the lea;--.:, ft nod himself in a difficult position, whui he set about realising on his investment. the chequered hi.-! ■:-.■ o» toe 1 a-es tiieie had been litigation of a'l kmd.-, and at great cost. The >!:;<.>! i treehohJer.-, who had been getting pr;i..thv.lly nothieg out of their land for rnorc ;iia;t 29 vears, now threatened fre-h litigatien o> 'attack tho validity ot the leases. I.ev.ir. was further faced with the position "Jiat tind.H' recmt Acts he could not cut up and give titles without, roadins. The'existir.t: law also prevented his lcquiring the freehold. The Maori owners again could do nothing unless they broke the leasee, as on an unimproved value of £36.000 the equity of the 30 years which the lease had still to run exceeded that of the ireehoh! equity subject to them. Thereupon. Lewis and" the Maori owners approached the Government for a way out of" the dead'ork. The Government. _in th»ir turn, were faccl by the situation that hases under the Eunbliutr Act passed bv S'f Hat'v Atkin.-nn had been since ac--epted ai'd te.'.-taed by the Laud Transfer Department at each m.v ee--ive transfer, and the i-omlariiv of the t'«n--i-tion- was 'ui'ther coiih'-niod'by the sale thioadi the [ v p. r ; ;;-,-.-■. if. ih're-'ore. the Maori freeholders *u,v,m ,!-d in breaking i ho*e leases, the land t:.Ki-;V. "m-.l of the State would be liable f— :': : ' fall value; and this value, as already sta'ed. was greater than , the freehold eqm't.v, I'm the other hand, if ' the Cover'.-eio o-oimed the freeiuild by' purchase, i: -v - 1 1 he .-to 1 , subiect to the '•■a?'S. and ?Xi:e<-'eil "rem r. M the Govertflellf .-)(•■: quired .he ! a ■--. it would, tiudet the then; ire urns! ance-. be, —-•• I'uyh'i: Litigation"— for the hnselui'iih rs. who could not. buy: out the freeholder--, h-rnv- e urttrr tho Act ci T 0L ( ' .-, one could acpiivo more ; than o.OCO acres of -second class" land, : such as t!ds wa.- ::ro led already. Tho settlement of a ji '\a ;uea of , on-rry had; been ntr'.vi:!ot far over '<s year-, and fh*r- w.i.- the ; .-<• -y tof it- bciu-.' in the ■sine state 20 ; ettis hence. —The Solution.---In this diten nia the Government took what anv dk-inie:: sted per.-oa who dhr,a?cicmtiteh- views the whole circumstances ■nu.-t admit was an extremely wise- and tirudent course—one in the inteie-ts of the Dominion as well a-s of both the sei-nons directly intonated. They ...aved the State from a great lotenttal loss, and at the same, time seemed the proper development and settlement of the block, without any risk whatever to the public exchequer, by 'o-s'-ntiue: to the joint request of the freeholder.-, 'and the "leaeholders to fa-'iktate .he transfer of the land into hands capable :>f developing both interests, co-aiitional | ->u the mncha.-ers undertaking to load, out. : up. and .-.11 the whole block within thre« years in conamance witii the land laws , of th 1 ; countiT.

—The Next Step.— A proclamation was accordingly issued jnder tie provisions of the Native Land Art of !90a {which provided for this benidone where it was erpedient in the* public interest so tn do), waiving the londition prpvemini; the acquisition of r ore than 3,000 acres by any one person, in the extent of permitting the title to vest in the chairman of the" Maori Land Board as trustee for sale, ;-> t';-*- the purchasers mi'.'ht have the thive ; -- in which to out im, road, sell, ;n i •.: !c the blook. Mr Lewis then deah ■■■• .':: the Maoris, and having settled with t !| s"ld out his interests to a Ffawke's Bay syndicate, who ultimately sold to th- Mokau 0. and E. L'ompanv. —The Net Result.Tli? weto paid off, the Maoris rcceiv&l £25.0C0 cash for their interests, subject to the leases, together with £3.500 for the expenses they had been put to, and 250 fully pa-id-up £lO shares in any developing company that wi-ht be formed, though the special valuation made of their interests had only assise*! their value at £14,881, v.-hil« the Government valuation in 1905 of their interests (subject to the leases aforementioned) was £11,377. —Manawatu ' Times.'

STATEMENT BY MR DILLON' BELL. , Tho following letter from Mr H. D. Bell, K-Cj, appears in Saturday's ' New Zealand Tiroes ' : Sir,—ln your leading article this morning on tho subject of the Mokau lands you say:—"lf any injustice had threatened tho Maori owners, or had there been any impropriety about the proceedings, it is not too much to suppose that Mr Bell. K.C., who advised a section of tho Natives, would have protected them." You will, I do not doubt, give me this opportunity of stating that I did not advise tho Natives to sell. On the contrary, my advice to thorn was to refuse 4 the terms offered them. I was not present at tho. meeting of assembled Native owners when the resolution to s°l! was carried, because the Natives, through their committee, informed me that they did not require legal assistance at that meeting, and they had none. Mr Lewis, the assignee of tho leases, was entirely within his rights in using all possible methods to protect himself, as the Native Land Commission, consisting of the Chief Justice and the Chief Judge of the Native Land Court, hod formally reported to the Governor that his leases were void or voidable, and that report had been laid before Parliar ept. He accordingly offered the Natives a large sum in cash far tho freehold, fcut much

less than half its actual value. As land alone, without the coal seams discovered, it was clearly a most, irnpiovident bargain f■•• the. Natives, hut the cash tempto ,»ni, as it had always tempted Na . to sell their inheritance for a r f pottage. I advised them to at -the leases in the Supreme Court. . d all preparations had been mad..' for that attack, which much have succeeded. As to the main lease, in which the coal seams lie, tliey elected to take the cash for the freehold, but they had not in that matter the protection you suggest of such advice or assistance as I could afford. Then let me add that it never occurred to me to advise the Natives that in faco of tho law limiting the acquisition of Native freehold laud to 3,000 acres tho Government would, without first laying tho matter before Parliament, in direct contravention of the recommendations of the Native Land Commission upon these- Mokau lands, issue an Order-in-Council authorising the purchase in one block by one person of more than 50,000 acres of Native freehold. The Native Laud Act empowers the Governor when he finds it necessary '' in the public interest" to permit tho acquisition of more than 3,000 acres. I did not understand this as meaning power to authorise an extension from 3,000 to 50,000, nor did 1 see what public interest could be served. I do not see it now.—ll. I). Bell. COMPANY'S SOLICITOR ISSUES CHALLENGE. Mr Charles A. Lougluian, solicitor for the Mokau Coal and Estate Company, in a further letter to tho Manawatu ' Daily Times ' with reference to his challenge of £IOO for substantiation of Mr Miser's statement re Mokau and Mr M'N'ab, proposes thut a jury of 12 drawn from the common jury, and presided over by the Mayor of Palm erst on North, should be tit up to the truth or fak-ity of Mr Massey's statements. Should nn'e of the series of Mr Massey's statements, which Mr Loughnan formulates, bo declared by the jury to be true, Mr Loughnan agrees that a cheque for £IOO, which he, has de-pocitc-d with the tditor of the Manawalu ■ Daily Time*,' be handed to the Palmerfton North Hospital, while he will pay all ce.sts of the jury, witnesses, etc.. if one charge of Mr Massey's is proved to be true, while, the acceptor of the challenge must pay these charges if Mr Loughnan wins. trial, it, is tdipnlated. is to take place iu Palmerston North, Mr Louglman conducting his own case and permitting: counsel to" appear for the acceptor of the challenge.