EAST COAST TRUST LANDS.

Poverty Bay Herald, Volume XXXIV, Issue 11126, 27 July 1907, Page 1

EAST COAST TRUST LANDS.

REPORT TO PARLIAMENT. (From our Parliamentary Reporter.) WELLINGTON, this day. The following report on the East Coast Native Trust lands by the Judge of tile Native Land Court at Gisborne was presented- to, the House yesterday by tlie Minister -r-4. "1. In orjler to understand the difficulties besetting the framing of any definite scheme for adjustment of the conflicting interests among tlie great number of beneficiaries who are entitled to be heard m the' final settlement of the estate known as the East. 'Coast Native Trust Lands Estate, it is necessary to give a short history of the matteis leading, to the passing of the East Coast Native Trust Lands Act. 1902. "2. About the year 1891 a company was formed, subsequently called the New Zealand Naive Land Settlement Company, which had for its object 'tlie utilisation of the unoccupied amd unproductive lands of Natives, tlie scheme proposed being to deal with the lands for the benefit of the Maoris and Europpah shareholders, the Natives finding tlie land and the 'Europeans tlie capital required. "3. Accordingly various blocks of land m the East Coast district and elsewhere were contracted to be conveyed to tlie Company for utilisation, arid these transactions were m various stages or development when the Oompany lound itself m difficulties, having im tlie meantime bor. rowed money and mortgaged the lands to the Bank of New Zealand to the extent of £135,000, for the purposes- of the Company. . "4. It was then arranged that Messrs W. L. Rees an<|~Wi Pere should liave the right to redeem the lands so mortgaged on behalf of the Natives interested. Before this, could bei effected the' Oompany, on August 4th, 1888, went into voluntary liquidation. "5. On August 16th, 1890, the Bank transferred their mortgages to the Bank of New Zealand Estates Company, and tliat Company on February 19th, 1891, claimed then, as their due, the sum of £146,956 9s 5d "6. Tlie .Estate Company put up the lands for saie under its mortgage m 1891, and bought them m, a portion of the lands being subsequently resold by public auction. •.'.;.. "7. Actions against the Estates Company arising out of the sales under tlie above mortgage were commenced, and finally settled by an agreement dated February 17th, 1892 (wliich it was alleged had the consent of. the principal Natives claiming), under which the lands then remaining unused were transferred to Messrs Carroll and Wi Pere as trustees on behalf of the Natives, the; former "giving a mortgage to the Estates Company to secure tlve suit* of £86,000. "8. Attached to this agreement was a schedule showing the lands sold and the purchase money therefor, also the lands unsold. Of tlie latter those having completed titles were moßtgaged to the Estates Company, .and' became the principal security, the tnstees at the some time undertaking to complete such of . the titles, bo the lands as were doubtful or income plete. "9. Among the blocks with incomplete titles was the Paremata block,' which had been the subject of litigation for many pears, and the title, to which was to be perfected and included, m the mortgage to \he Estates Company. "10. Im 1893 the Validation Court was jet up under the Native Land Validation ; 3f Titles Act, 1893, and the first appli«a. lion to come before tlris Court was tue . ralidatiom of the contracts entered into with the old New Zealand Land Settle- « nent Company regarding the Paremata i )lock. i "11. Owing to the involved nature of > ihe transactions 'between the Natives and i ihe New Zealand Land Settlement Company it soon became apparent that to i iralidate the transactions ag they stood i md make Paremata block (inter alia) sub- : iect to the whole ' liability of the Estates '. Company's mortgage would work an m- i justice to the Native owners. • "12. As the outcome of tedious and ex- i tensive litigation im which all tlie parties ] ntereste<L appear to have taken part, vol- ( intary arrangements were entered into I >y which it was arranged that after demoting a certain portion of the land sold » the Company the balance sliould be rested m, Messrs Carroll and Wi Pere m ( irust "tor persons to be thereafter ' found ( >y the Validation Court and mortgaged to Jia Company for £14,000 m. relief pf the jrincipal security. Tliis is the beginning if what ig known as specific securities. "13. Other blocks were brought into ' die Estate from time to time, and 6imi- '> ,arly dealt with by the Validation Court, ' n most cases the amount of indebtedness i jeing fixed by the Court, arid the beneioiaries given the right to have a read- ! justment on the final balancing of ac. < jounts. i "14. Tlie rest of the history of the es- . iate is continued m the preamble of the 1 _ct of 1902, whioh 6et up the East Coast i Native Trust Board to manage the affaire >£ the trust, and tlie record ofthat Board's iff airs axe contained m the amiual re- ] aortg submitted to Parliament. _ "15. Since the appointment of the Board ] ihe accounts for the various blocks ap- j jear-to have been. kept. as separate and j iistinct as possible, all . charges or pro3ortionate parts thereof being made . igair_>t' the block liable therefor. Prior, lowever, to the Board taking control no listinct or separate accounts were kept, md it may be tliat m the matter of detail ] >he Court may find it necessary to adjust ] paribus items as between different blocks. < "16. Apparently the' total debt paid to i >he Bank has been, approximately £160,- i XX),' and other amounts paid, including >utstandingi debts, expenses of managenent, and realisation, amount to roundly £40,000, making a total of £200,000. This amount has been raised as follows : — • By sale of land £124,400, by sale of stock arid' other sources £28,750, mortgages £26,000 rebate from Bank £20,000, rents £12,380; total £211,530. (The ; Sgures given are only approximate.) "17. As at March 31st last there appears to be existing liabilities of £26,211 18s Ud, against which aire liquid aesets apart from. tlie. landed estate £11,573 7s lid. The balance to debit will not, the Court understands, take - any great length of time to liquidate out of income. "18. The position, then, is: If the Board, with its facilities for dealing, had not come to the assistance, of the Trust Estates^ the whole of the estate mortgaged would under tlie forced sale advertised by the mortgagee, undoubtedly have been swept away. Under the Board's management, however, portions only of the* mortgaged lands were sold, and others leased, with the result that the major portion of the* estate has been preserved. "19. It seems to have been assumed tliat the Validation Court m. the time limited' would liave been able to evolve a scheme giving particulars m full of the proposed adjustment of tlie equities between , the various blocks and the? various beneficiaries, but it will be readily recognised m face of the short precis of the history given, that no scheme, could be satisfactory to the Court or the parties 'interested which did not have the fullest enquiry into its equities, so that what is fair and just may be done between the. parties. "20. Tlie - Court therefore suggests broadly the lines upon which it would propose to proceed to give effect to an adjustment of accounts, y subject to what might be said before it by the representatives of the beneficiaries, the trustees, and the Board. (a) To distribute and charge against various blocks so much of the total indebtedness as can be earmarked as equitably so chargeable, (b) io distribute tlie balanc© of the total indebtedness over audi of the -blocks as the Court, after hearing the parties, may decide, sliould under tlie circumstances equitably bear the burden of the same, (c) For the purpose of effectuating such distribution it may be found necessary to order the sale mortgage, or other disposition of portion 'of the remaining estate for the benefit and relief of those beneficiaries whose lands have been already disposed of m the general interests of the trust, including (if necessary) tlie rearrangement of present mortgages."