THE EAST COAST NATIVE TRUST LANDS BOARD (REPORT, BALANCE-SHEET, AND STATEMENT OF ACCOUNTS OF).

Appendix to the Journals of the House of Representatives, 1904 Session I, G-06

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1904. NEW ZEALAND.

THE EAST COAST NATIVE TRUST LANDS BOARD (REPORT, BALANCE-SHEET, AND STATEMENT OF ACCOUNTS OF).

Presented to both Houses of the General Assembly in pursuance of Section 13 of " The East Coast Native Trust Lands Act, 1903."

Report by the East Coast Native Trust Lands Board. Sir, — Gisborne, Ist September, 1904. The Board has now the honour to submit for presentation to Parliament the accompany ing balance-sheet and statement of accounts to this date, together with the following report of the transactions of the Board. At the date of the Board's former report (the 29th October, 1903) deeds of agreement for the management and realisation of two blocks only —viz., Paremata, and Section 4 of Maraetaha No. 2 (known as Te Puru) —had been executed. Further deeds of agreement have since been executed and approved, under which the Board is empowered to deal with all the blocks comprised in the principal security to the Bank of New Zealand (excepting Motu No. 1), with two of the blocks held by the bank as specific securities —viz., Mangaheia No. 2d and Whangawehi No. lα, and with other blocks not secured to the bank —viz., Maraetaha No. 2, Section 3 ; Maraetaha No. 2a, Sections 2 and 3, the Mangapoike and the Tahora Blocks. Realisation. —The Board has effected realisation of the following properties at satisfactory prices : — A. B. P. Paremata .. .. .. .. .. .. 7,112 322 Section 4, Maraetaha No. 2 . . .. .. .. 3,991 3 0 Okahuatiu No. 2 .. .. .. .. .. .. 15,190 0 0 Whataupoko No. 67d .. .. .. .. .. 2 2 31 Maraetaha No. 2a .. . . .. . . .. .. 5,082 2 20 The gross proceeds of the sale of these lands amount to £71,127 2s. lid., and, in addition, live-stock on Okahuatiu has also been sold at good prices, realising £8,123 135., the total proceeds of sale being £79,250 15s. lid. ; and sums amounting in all to £72,301 125., being that portion of the proceeds secured to the Bank of New Zealand, have been paid in reduction of the bank debt. Leases. —In Paremata an area of 2,380 acres has been leased at a rental more than sufficient to provide for the interest and other charges on the block. The surplus will be applied in forming a sinking fund for the purpose of redeeming the existing mortgage. In the Mangapoike Blocks 23,380 acres have been leased. The rental from these blocks will go to the beneficiaries after provision for the management charges on the property. Further Realisation. —The term fixed by " The East Coast Native Trust Lands Act, 1902," during which the bank's right to realise its securities was temporarily suspended, expired on the 31st ultimo. Prior to that date the Trustees and the Board conferred with the bank directors regarding the future realisation of the bank securities, and it was resolved by the bank that the realisation should remain in the hands of the Board on conditions satisfactory to both the Trustees and the Board.

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Arrangements for subdivision surveys of the Mangaheia No. 2d and Pakowhai Blocks are now being put in hand, and the Board intend offering the properties during the coming summer. Considerable portions of both these blocks are eminently suited for close settlement. Mangaheia will be offered for lease and Pakowhai for sale. Surveys of the Tahora No. 2 lands (59,348 acres) are also being undertaken. The bulk of this block will be offered for lease, and it will only be necessary to sell the freehold of a comparatively small portion. . Mortgages.— The value of the Paremata Block being greater than the amount of the claims on it the Board sold only 4,600 acres, and reserved the balance (valued at £8,500) for lease. To provide the full amount required to discharge the bank's debt the Board obtained an advance of £3,000 on mortgage of the unsold portion, with the view of eventually redeeming the property for the beneficiaries Mortgage advances have also been negotiated on the Mangapoike and Tahora lands to the extent of £12,742 Bs. 4d., and the proceeds have been applied in discharge of the more pressing of the liabilities contracted by the Trustees prior to the appointment of the Board. Reading and Survey.—The, Board wishes to bring under your notice the urgent need for road access to the Mangapoike and Tahora lands. Both these blocks are at present roadless. To gam access to markets from Mangapoike it will be necessary to take a road from the Arai through Maraetaha No. 2a, and on through Mangapoike towards Opoiti. When formed this would be the main road between Gisborne and Wairoa. It would be fifteen miles shorter than the present road, and besides opening up a large portion of Mangapoike, which is inaccessible by any other means, it would be of great benefit to a large number of settlers in the outlying districts. The needs of the Tahora Blocks are also pressing. Both blocks are very fertile, and their' early settlement would materially benefit the whole of the district, and the settlers in the vicinity of both blocks are willing to contribute towards the formation of the roads. The Board therefore respectfully asks that the Government will grant assistance m the matter by undertaking the surveys of the roads at an "early date. The works are of such general public utility that they should, the Board respectfully submits, commend themselves to the prompt and favourable consideration of the Government. We have, &c, J. Macfaelane, Chairman. J Harding, ) MemW W. Shbimpton, ) The Hon. the Minister of Native Affairs, Wellington. Schedule A.—Blocks forming the Principal Security to the Bank of New Zealand. A. R. P. Okahuatiu No. 2 15,190 0 0 Sold for £20,250. Whataupoko No. 67d .. .. 2 231 Sold for £60. Mangatu No. 5 . . .. ■ • 20,075 0 0 Mangatu No. 6 20,075 0 0 Mangaokura No. 1 .. ... ■ ■ 2,027 OQ[ Comprised in deed of agreement of 9th Matawhero B, or 5 .. .. ■• 33 1 12" April, 1904. Matawhero No. 1 .. .. • • 182 1 38. Whataupoko, Section 20 .. . . . 3 1 30/ Pakowhai (part) . . .. ■ ■ 5,013 2 9 Deed of agreement of 29th August, 1904. Motu No. 1 .. . • • • 2,000 0 0 No deed of agreement made for this.

64,602 2 0 As ascertained by the accountants appointed under the Act, the amount of the total debt due to the bank on the'3oth January, 1904 (including £61,832 4s. 3d. due on specific securities as.per schedule), was £159,029 2s. 4d., an increase of £2,645 14s. 10d. on the amount due on the 30th September,- 1902— viz., £156,383 7s. 6d. Schedule B.—Blocks forming the Specific Securities to the Bank of New Zealand, and the Amount of the Bank's Claim on each Block as at the 30th January, 1904, as ascertained by the Accountants appointed under " The East Coast Native Trust Lands Act. ]902." Block. a. r. p. £ s. d. Paremata 7,112 3 22 25,043 14 5 Maraetaha No. 2, Section 4 3,991 3 0 11,846 5 0 Mangaheia No. 2d 5,997 0 0 9,456 7 10 Moutere No. 2, Section 1 . . .. ■ • 194 3 0 397 4 3 Tawapata North No. Iα 2,096 0 0 2,782 1 9 Tawapata North No. 2 1,995 0 0 . 2,782 1 9 Tawapata South 4,376 2 5 5,712 5 3 Wangawehi No. Iα 980 0 0 1,239 19 9 Wangawehi No. Iβ and lc 1,204 0 19 2,572 4^J5 27,948 0 6 £61,832 4 3

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On the 30th January, 1904, the Paremata and Maraetaha No. 2, Section 4, Blocks were offered at public auction, and realised (gross) — £ s. d. Paremata (4,600 acres) .. .. . . .. . . 24,784 011 Maraetaha.■ No. 2, Section 4 .. .. .'. .. .. 15,967 0 0 £40,751 0 11 Mangawani No. 2 (area 14,802 acres). —On the 14th September, 1897, an order of the Validation Court was made for execution of a mortgage for £8,000 over this block, but no mortgage has yet -been given.

Schedule C. —Blocks not included in the Principal or Specific Securities to the Bank of New Zealand, which the Trustees have conveyed to the Board by Deed. Area over which the Block. Board has power of Sale. A. K. P. A. R. P. Maraetaha No. 2a, Sections 2 and 3 .. 5,082 2 20 5,082 2 20 Maraetaha No. 2, Section 3 .. .. 3,000 0 0 3,000 0 0 Mangapoike No. 2 .. .. .. 37,721 322 Tahora No. 2 .. .. :. 59,348 0 0 10,000 0 0 105,152 2 2 18,082 2 20 The Trustees have authorised the Board to sell the areas comprising 18,082 acres 2 roods 20 perches as shown above. With the exception of such areas as may be reserved for the occupation of the beneficiaries the remainder of the blocks may be leased by the Board, and the whole (with the exception of the reserves) may be mortgaged for an amount not exceeding £17,500. Maraetaha No. 2a, Sections 2 and 3, has been sold for the sum of £4,066 2s. In Mangapoike No. 2 agreements have been entered into to lease 23,500 acres (subject to survey), at an aggregate annual rental of £1,030. Schedule D. —Blocks not included in the Principal or Specific Securities to the Bank of New Zealand which have not yet been conveyed to the Board. Te Kuri .. .. .. .. .. . . 400 0 0 Tangatete No. 1 .. .. .. .. .. 5 0 0 Tangatete No. 2 .. .. . . .. .. 75 0 0 Maraetaha No. 2, Section 6 . . .. .. .. 4,000 0 0 Mangapoike .. .. .. .. .. .. 4,233 0 0 Mangawani No. 3 . . .. .. .. .. . . 18,720 0 0 Tahora No. 2g, Section 2 .. .. .. .. .. 1,346 0 0 28,779 0 0 Schedule E. —Statement re Debt to Bank of New Zealand. £ s. d. £ s. d. Debt due to bank 30th January, 1904, as ascertained by the accountants .. .. 159,029 2 4 Further interest and outgoings on Paremata and Maraetaha accounts .. .. .. 1,081 10 7 160,110 12 11 Deduct payments by the Board as per annexed account ' ~ .. .. .. 64,177 19 0 Proceeds sale of stock on Okahuatiu, paid direct to the bank by purchaser ... . . 8,123 13 0 72,301 12 0 Pro forma, balance owing to bank as on the last ascertainment of the accountants as above .. .. 87,809 0 11 Note. —Further interest and other outgoings will have to be added to, and credit for profits (if any) on the working of the Station Account and for rents must be allowed off, the above balance when the accountants make their next investigation. The securities held by the bank are shown in the, attached Schedules A and B.

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The Bast Coast Native Trust Lands Board. —Balance-sheet and Statement op Accounts at Ist September, 1904. Revenue Account. Dr. £ s. d. £ s. d. Or. £ s. d. £ s d. Sales of freeholds secured Payments to the Bank of to the Bank of New New Zealand in reZealand— .. duction of debt — Paremata (part) .. 24,784 011 Paremata, specific seMaraetaha No. 2, Sec- . curity .. .. 25,664 6 8 tion 4 (Te Puru) .. 15,967 0 0 Maraetaha No. 2, Section Okahuatiu No. 2 .. 20,250 0 0 4, specific security .. 12,308 3 4 Whataupoko D, Section Okahuatiu No. 2, part of 67 .. 60 0 0 the principal security 26,205 9 0 67,061 0 11 64,177 19 0 Sale of freehold not se- Lodged with the Bank of cured to the bank— New Zealand to secure Maraetaha No. 2, Sec- the bank's contingent tions 2 and 3 .. 4,066 2 0 claim on the specific se4,060 2 0 curities for advances for Rents— law-costs .. .. 1,760 0 0 Paremata .. .. 183 9 2 Subdivision expenses, PareMangapoike No. 2 ».. 463 19 7 mata Block— f>47 8 9 Survey and engineering 529 5 6 Mortgages— Drainage and roading .. 599 10 0 Paremata .. .. 3,000 0 0 1,128 15 6 Mangapoike No. 2 .. 10,000 0 0 Sale expenses— Tahora No. 2 .. 2,742 8 4 Paremata— 15,742 8 4 Plans and advertising 159 3 0 Interest on purchase- Auctioneer's commismoneys ... .. .. 795 15 0 sion .. .. 204 5 10 Contractors'deposits .. .. 30 0 0 Sundries .. .. 15 11 6 Refunds— . 379 0 4 Paremata drainage and Maraetaha No. 2, Seeroading contracts .. 141 0 0 tion 4— Allowance, sale expenses, Plans and advertising 97 11 5 Okahuatiu .. 100 0 0 Auctioneer's commisRates, Okahuatiu .. 22 10 0 sion .. .. 119 15 0 Rates, Paremata .. 5 711 Sundries .. .. 310 0 Stamps .. .. 6 4 0 220 16 5 275 1 11 Maraetaha No. 2a and Mangapoike—■ Advertising .. 16 7 6 Survey .. .. 4 4 0 20 11 6 Whataupoko D, Section 67 —commission .. .. 3 0 0 Contractors' deposits . . .. 30 0 0 Rents paid to Native owners .. .. .. 112 10 0 Payments to trustees .. .. 12,742 8 4 Rates .. .. •• 275 9 6 Interest .. .. .. 355 5 9 Law-costs .. .. .. 597 1 9 Salaries — Members of the Board .. 1,700 0 0 Office staff .. .. 225 0 0 I Travelling-expenses .. 64 9 8 I Office expenses . . . . 23 18 3 Advertising .. .. 217 0 2,010 4 11 Balance 5,008 13 11 £88,617 16 11 ! £88,617 16 11 [NOTE.—Proceeds of sale of stock on Okahuatiu, £8,123 135., were paid direct to the, bank, and therefore are not included in the above account, j Balances, Ist September, 1904. £ s. d. £ s. d. £ s. d. £ s. il. The Trustees Account .. .. 12,742 8 4 i Revenue Account .. •• 5,008 13 11 Paremata Mortgage Account . . 3,000 0 0 i Mortgages .. .. 10,742 8 4 Bank of New Zealand— ' Accrued interest on mortOrdinary Account .. 5,076 13 1 gages .. .. 147 I 9 Realisation Account ..2.311 | .. 15,88911 1 Law-costs Security Ac- Specific securities re Lawcount .. •• 1,750 0 0 costs Account .. .. 1,750 0 0 6,828 17 0 Unpresented cheques .. .. II o i Sundry debtors . . .. 99 5 3 £22,670 10 7 £22 1 670 10 7 Gisborne, Ist September, 1904. J- Macfarlane, Chairman. J A. Harding, ) Membere . W. Shrimpton, i T. A. Coleman, Secretary. Approximate Cost a] Paper.— Preparation, not given ; printing (1,250 copies I, £Z Bs. By Authority : John Mackay, Government Printer, Wellington.—l9o4. Price 6d.]