THE ELLERSLIE LAND SYNDICATE.

New Zealand Herald, Volume XXV, Issue 9102, 10 July 1888, Page 5

THE ELLERSLIE LAND SYNDICATE.

Mr. Ivey, manager of the Bank of New South Wales, writes :—" Will you kindly allow mo space to say, in reply to the article under the above headings which appears in your issue of this date, that the circumstances as narrated, : so far as they relate to this bank, are contrary to the facts." We presume that in the above note Mr. Ivoy refers to the statement respecting the offer made by the members of the syndicate for the liquidation of the amount due on the Ellerslie property. The following is a copy of the proposed agreement: — 1. June 1,1888. —Form of arrangement proposed between the Bank of New South Wales and the undersigned. The Bank to withdraw action now pending in the Supreme Court as against the undersigned. 2. Interest on amount due to the Bank to be capitalised at 6 per cent, per annum, and added to the principal in such manner that the payment in discharge of principal and interest be made at the rate of sixty pounds per month. 3. Each of the undersigned to give his promissory note for £10 per month, with interest added at 6 per cent., or such other amount as will aggregate £60 per month. So many promissory notes to be given to the Bank as will represent in the aggregate the total amount of the debt and interest, and payable at monthly intervals. 4. Bond not to be enforced against any of the undersigned duly and regularly making his monthly payments to the Bank. 5. If any of the undersigned should fail to meet his monthly payment, or become bankrupt, the Bank to exhaust its remedies as against him or his estate, and the balance not recovered to be divided, and become payable pro rata among the others signing or consenting to this arrangement in such manner that the aggregate payment of £60 per month be maintained. Tne Bank to undertake not to make any demand against the parties to the bond in the Remuera Land Company until the promissory notes above referred to have all matured, unless the contribution of £60 per month is not maintained. During such last mentioned period a low rate of interest (not exceeding 5 per cent, per annum) to be charged upon and added to the Remuera Land account annually, and to be calculated as from half-yearly balance, September, 18S7.

Under the terms proposed it would have taken four years to have paid up the amount due on the Ellerslie property, with interest at six per cent. But in all probability what the bank chiefly demurred to were the two last conditions, under which the arrangements about the Ellerslie land were mixed up with the debt [of £8000 due on a piece of land at Remuera, in which the same parties are concerned. It was part of the proposed arrangement that the bank were not to make any demand against the parties to the bond in the Remuera Land Company until the promissory notes had matured —that is to say, for a period of four years. During all this time nothing was to be paid off on the Remuera liability, and interest was to accumulate only at five per cent. It is said that the bank was annoyed because for about nine months past nothing has been paid off the account, and no interest has been paid. Further, one of the persons liable disappeared lately, while it was openly stated that the others were making arrangements to secure themselves and to defeat the bank.