The Poverty Bay Herald. AND East Coast News Letter. PUBLISHED EVERY EVENING. MONDAY, JULY 18, 1881.

Poverty Bay Herald, Volume VIII, Issue 1375, 18 July 1881, Page 2

The Poverty Bay Herald. AND East Coast News Letter. PUBLISHED EVERY EVENING. MONDAY, JULY 18, 1881.

There is a vast project afloat. A ipOttster land Company (an abridged prospectus of which we recently publisted in our columns) is promoted, apparantly with the best of intentions, the object being the acquisition and settlement of Native lands by means, which certainly can claim the merit of originality. Doubtless there are many who will readily believe in the practicability of the proposals embodied in the prospectus. We are not of that number. In this respect we are not singular, for froul the expression of opinion, wlmn the scheme was first bruited, and subsequently when it assumed definite shape, we have arrived at the conclusion that, however worthy the object may be, the process by which they are sought to be attained ig illusionary. It is proper that this should be stated plainly, and at an opportune moment. There are those who have no knowledge of the intricacies of the various tenures under which land in this district is held by the Natives. They know nothing of the difficulties besetting an individual, not to say a company, bent on acquiring land. By the scheme which has been propounded the difficulties will not be removed. It is more likely that they will be intensified, and made uniueasureably more complex. Success based purely on assumptions is altogether out of the question, and where such be the case it is not likely that capitalists will enter into an undertaking. Contingencies such as legislation which is absolutely required, unanimity among the grantees in the partition and disposal of their lands, which is another essential, are calculated to deter any except those who act on the Napoleonic maxim, " there v is no such word as impossible." It is absolutely required at any rate that the provisions of the Native Lend Fraud Prevention Act should be swept away before ono single negotiation in shares could take place. There is no guarantees that Parliament will be so influencad as to comply with the bidding of tho.se who are interested in the promotion of this company. Indeed, it would be unwise to remove a

very necessary safeguard. We are not told what method will be employed in getting over this obstacle, which will be encountered at the very threshold. The law does not permit Natives to accept shares for land, nor indeed of any other consideration but money. We confer that we, as well as numerous land purchasers in the district, are inclined to receive a little instruction in this matter. The Trust Commissioner also will require a little enlighentment. If he is convinced by any plausible style of reasoning that shares Rnd money are convertible terms, all will be well so far. It will be preferable, however, for the promoters to state clearly how they propose to obviate the necessity of payment in cash ia respect of land, which is required by law. After this is accomplished, they must reduce to a certainty the assumption thut the grantees in the various blocks to be acquired will be unanimous in conveying their interests. It is important that such should be the case, especially where tliere has been no subdivision, and the lands are held under jointtenancy. We presume that this is a subject which has engaged the attention and serious thoughts of the framers of the prospectus, although there is not ono word in it to indicate that due consideration had been devoted to such a vital question — one, in fact, on which the very existence of the Company hinges. In our opinion it would be necessary to state how numberless men, women and children, all of whom, failing subdivision, are in jointly interested in a parcel of land, can in ylobo be compelled to convey their shares when they are undefined, and unapportioned. Given an instance wheie there were one hundred owners in a certain block to be acquired, and only two-thirds signed, and the remainder resolutely refused, how would this affect the bond, Jules of the title acquired by the Company 1 Subdivision is not an easy matter, and frequently it is indefinitely postponed for purposes prejudicial to parties who moy have acquired interests in a block of land. The only provision we can find for the possibility of failure in the completion of a title, is the surrender of the scrip by the Native to the Company, whereby he gains re-possession of the land, which he liad previously parted with. If such ia to be the manner of procedure in reference to blocks which the Company are unable to acquire, it will not be advantageous to the capitalist shareholders, inasmuch as block after block may be treated for and afterwards abandoned to the original Shareholders in consequence of the non-completion of the title. If land of a definite quality, at a fixed price, and with a clear title wero to be obtained, there would be some sort of security to investors. But what is the nature of the proposal ? The land is to be acquired ; it is not at present

available, the Natives may or may not dispose of it, everything is conjectural. So far as we are aware from the information which has been made public, there are no assets to start with, nor are we told to what extent the capital which may be subscribed will be absorbed in " completing titlys, defraying expenses of management, effecting surveys, opening means of access, dec." Some npproxiftiuU; limitation should have been pift on this expenditure, as probably it may be found in reference to certain lands to be acquired, that extraordinary '■cxpeniKture has been already incurred.-' Fi.r ther, when it is propounded tbiM* " vnst areas of valuable land " ape nkely to pass to the Company, "at prices based on former Government purchases," we are constrained to ask : How comes it that they were not previously sold to the] Governmentj who have hitherto had a monopoly in land transactions ? The question comes with much more force when it is taken into account that in the ono ease the land was purchased for cash, and, in the other, scrip, which necessarily must be of a fluctuating value, is the only tender which is offered. There is another objectionable feature which wo have only slightly touched on, namely, the reservation- of the light to the oiiginal shareholders to select reserves, the areas of which are undefined, on surrendering their shares to the Company. This will be a source of much complication, besides giving rise to contention, if the price at which the

land is purchased is considered unsatisfactory. We fail also to understand why "original shares, given for the purchaso of lands, will not be transferable without the consent of a Native Committee, and the consent of the Directors." We are told that this condition is inserted " to prevent the improper diversion of the Natives' interests." This is undue partiality in favor of the Natives, and directly counter to the chief objects of the Company, which we take to be the facilities it otters to small capitalists to settle. The Native Committee, if so inclined, can exercise their authority in an obstructive manner. Perhaps there may be many and weighty reasons for this provision. It strikes us, however, as being odd that the transfer of land for scrip should be considered a proper diversion, while the transfer of scrip for money is quite another matter, and is declared to be an improper diversion. Somo explanation might bo given as to the why and wherefore of this distinction, and also of tho necessity there is for shares to be filtered through a Native Committee before they come into the hands of a third party. If shares are not negotiable without these lestrictions it is evident that they will depreciate in value ; and capitalists' shares will be brought to the level of original shares. These latter, after acquiring a fixed and legitimate yalue, and received as the price of land parted with, may not be freely transferred, and yet we are told that the scheme is to be " mutually beneficial " to the Europeans on the one hand who are anxious to settle, and of the Natives on the other, who are said to be " strongly desirous of opening their lands for settlement." We are further informed in the prospectus that the area of Crown Lands available settlement is insufficient for the demand. This is to a degree, a mis-statement. It is a well known fact that over 700,000 acres of such lands, with a perfect title, have been acquired, and when made accessible by roads they will be placed in the market, either on deferred payment or in terms of the Village Settlements Act, and a portion of them under the Homestead System. If the lands of the Company are better, and are to be offered on easier terms than Crown Land, settlement will follow ; but thoy will have to be disposed of at competitive prices to attract the notice of intending settlers.

We have dealt but briefly on the various heads of objections which have occurred to us. These objections exist ; we hare not made them. Legal difficulties abound on every hand. It is clearly so admited by the promoters who state " that the existing law practically prohibits all alienation in small areas," and it might be added of large areas too. In the face of this avowal, legislation is first required to remove all disablities and restrictions. Until this is accomplished, and the difficulties removed it is hopeless to expect the objects to be encompassed. While yielding to none in our desire to see " this wholly undeveloped district " thoroughly settled, and ready at times as we are to extend our assistance in the promotion of such objects, we must confess that wo fail to see any element of success in a scheme based on the lines of " The East Coast Native Land and Settlement Company."

The following are the changes proponed in the Re-Distribution of Seats Bill :— Re Auckland Provincial District, Mongonui, and Bay of Islands will remain unchanged ; R»dney will receive, Borne 1500 from Mnrsdon, and Waitbmata between 400 and 800 from Rodnej jOoehunga will be abolished, as also Eden, and a district constituted taking in Onehunga, Panmure, and Eden ; tho name of the proposed new district has not yet been decided ; Franklin will be divided into two districts, probably by a line running from east to west, giving an equal number of the population to each district ; Waikato will remain as it is, with the excoption of a territorial extension to the South, probably as far as Lake Taupo ; Waipa will have its boundaries extended by the sea coast

to a point on the West Coast opposite Ta"ttpo, thence to Taupo ; thence to the Waikato constituency, probably to the Waikato river to its old boundary on to confiscated line. Tho Tham« will be divided into two part*— first, the Borough of Thames, confined strictly to the present municipalities, with Parawai added ; second, Coromandel and Tararua, and tho district lying betwoen the Thames Borough and Coromandol, including the town of Oorouiandel. Tho East Cast will be divided into two with two members. Taurauga, Opotiki, Maketu, Rotorua, Ohinemutii, Te Aroha, Katikaiti, will form one division, and Poverty Buy district with the addition of Wairoa and a portion of Hawko's Bay will form another. The other Auckland electorates will probably romain as thoy are. Auckland geta in all nineteen members, being one additional. The total menrbors for'tho col.-ny i* 01, being 36 for tho North Island, and 55 for tho South. These of courso aro subject to revision, not yet having boon considered in Cabinet.