CORRESPONDENCE.

New Zealand Herald, Volume XXII, Issue 7484, 13 November 1885, Page 3

CORRESPONDENCE.

THE NEW ZEALAND NATIVE LAND SETTLEMENT COMPANY. TO THK EDITOR. Sik, —As one who may be presumed to know something of the basis on which thia company was originally founded, permit me to olfer a few remarks, now that the company ie about to be wound up. In the prospectus issued prior to the formation of the company, appear these two clauses: —"S. That capitalist shareholders, whether in the colony or England, on lands of the company for their own bona fide occupation, shall be entitled, under regulations to be made from timo to time by the directors, to give their shares in payment for the same, such shares beiug thus accepted as value for 10 per cent, over their paid-up value." "7. That it be a condition that the directors elected by the capitalist shareholders shall be satisfied that there remain? from time to time in the hands of the company property to the full value of the amount of money paid up, and that the repayment of such amount, when required in the winding up of the company, together wi^h.all interest due on the capitalist ehares, shall be a first charge on such property, as well as on all other property of the company."

That prospectus was issued bearing the names, and, I presume, the guarantee of a large body of "provisional" and "first directors," including the names of native chiefs, members of both Houses of Legislature, and many of the leading men of the colony. In the articles of association enrolled on the registration of the company the latter of those two clauses is thus put:—"76. And it shall be the duty of the directors elected by the capitalist shareholders, and they are hereby directed to retain at all times in hand uudieposed of property to the full value of the amount of money paid up on capitalist shares ; and that the repayment of such amount when required in the winding-up of the company, together with all interest due on capitalist shares, shall be a first charge on such property as well as on all other property of the company."

It is not from any supposition that these conditions have been or may be ignored that I write, but simply that they may not be overlooked by those who may not be entirely conversant with the history of the company. Aβ I was the agent in floating the company, having made two trips round the colony for the purpose, I am, of course, in the best position to state the use that was made of those two conditions, and I am prepared to say that, as giviug power to shareholders to at once convert their shares into land, and aa affording a distinct guarantee of the repayment of the money in the event of the winding up of the company, they were the two conditions that induced the great bulk of the shareholders to part with their money, and theae conditions and the articles were fully accepted and endorsed in several public meetings of native chiefs and other aboriginal owners of lands. That there was subsequently an overwhelming accession of shareholders in a body, and that those articles of association were partially superseded, I am aware. I speak, therefore, only of the guarantees and conditions on which the first investors parted with their money, and the consideration to which they may be entitled in the possible event of the asseta and liabilities of the company not balancing. Of the legality involved in the question, I am not competent to venture a judgment; of the morality there can be but one opinion. I do not for one moment suppose that the gentlemen connected with the directory would be capable of any form of repudiation, any more than 1 would suppose the " provisional "and "first directors " capable of wilfully lending themselves to obtain money under false pretences from the original shareholders, but it may not be amine at this time to recall the conditions of the floating of the company. I may in conclusion add that personally I have no interest in the question, but, in the interests of the sixty or seventy people in the South whom 1 induced to purchase shares in the company on the guaranteed assurance from the native owners and the capitalist directors that they could take land for their shares, or be absolutely secured the repayment of their money, I venture to submit the foregoing remarks,-—I am . etc., g. M. Reed.