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

Appendix to the Journals of the House of Representatives, 1905 Session I, G-09

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1905. NEW ZEALAND.

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

Presented to both Houses of the General Assembly in pursuance of Section 13 of " The East Coast Native Trust Lands Act, 1902."

Report by the East Coast Native Tkust Lands Boabd. Sir,' — Gisborne, 24th August, 1905. Tho Board has the honour to submit the following report of its transactions, together with the accompanying statement of its accounts made up to the 31st ultimo, and schedules of the lands vested in the Board, showing the manner in which they have been dealt with. The Board has to report having accomplished the more immediate purpose for which it was appointed—namely, the realisation of the securities and the payment of the debt owing to the Bank of New Zealand on the Bast Coast Native Trust lands, and it desires to present at this time a resume of the whole of the proceedings in connection with the management of these lands since the date w T hen the Board's Act came into operation—namely, the 31st August, 1902. The first ascertainment made by the accountants appointed under the Act showed a total amount of £156,383 7s. 6d. due to the bank on all accounts at the 30th September, 1902, and the second ascertainment, made as at the 30th January, 1904, showed that at that date the amount had increased to £159,029 2s. 4d., as security for the repayment of which the bank held lands aggregating 107,832 acres 2 roods 6 perches, of a then estimated value of £164,268, and live-stock valued at £20,000. Through delays connected with its appointment the Board was not gazetted till the 19th March, 1903, and owing to these delays and to protracted negotiations between the Board and the Trustees as to the course the realisation of the bank securities should take it was not until the 30th January, 1904, that the Board was able to effect the first realisation. On that date it sold by auction 4,614 acres 1 rood, being part of the subdivision of the Paremata Estate, for £24,784 os. lid., and the whole of Section 4 of the Maraetaha No. 2 Block (Te Puru), comprising 3,991 acres 3 roods, in one lot for £15,967. A small security, Whataupoko 67d, was sold by auction in June, 1904, for £60, and in August a private sale was effected of Okahatiu No. 2 Block, comprising 15,190 acres, for £26,250. A satisfactory sale of live-stock on this block was made at the same time. Up to the 23rd August, 1904, the total amount paid by the Board to the bank in discharge of the debt was £64,177 195., which, with proceeds of live-stock and produce, reduced the debt to £76,500. By this time the term during which the bank's power of sale as mortgagee was suspended by the Act had nearly expired, and therefore the Board approached the bank with the view of having the term extended in order that the realisation might be continued to the best advantage. The bank met the Board in the most liberal spirit, and extended the term to the 31st March, 1906. At this time the Board renewed an application it had made immediately after its appointment, for a substantial concession of the amount of the debt, and also for a reduction in the rate of interest, and on these points also the bank met the Board by rebating a considerable sum off the principal and by reducing the interest-charges to minimum rates as from the date of the Board's first application. An arrangement was also come to whereby the bank, while allowing the Board the utmost latitude in regard to future realisation, offered further liberal concessions in the event of the realisation being so far advanced by the 31st March, 1905, as to give assurance of final payment of the debt shortly after that date. The Board at once took effective measures to secure for the Trust estate the advantages derivable by it under this arrangement, and on the 25th Eebruary last held a final realisation sale by auction at which it disposed of the following securities :— Block. Area. Price. a. c. p. £ b. d. Sections in Matawhero Nos. 1 and 5 ... 199 3 36 2,520 10 8 Moutere No. 2, Section 1 ... ... 194 3 0 438 3 9 Tawapata North No. 1, Subdivision No. 1a ... 2,096 0 0 3,144 0 0 Tawapata North No. 2, Subdivision No. 1 ... 1,995 027 3,177 3 0 Part Pakowhai ... ~-, ... .. 4,638 313 27,253 2 6

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The sale was a success, and on its conclusion the Board was in a position to inform the bank that on settlement by the purchasers the Board would be able to pay off the whole amount of the debt, and in June last the amount was paid to the bank. The gross proceeds of sales of the bank securities and loans obtained on new mortgages on those securities amount to £126,772 3s. 3d., of which the Board paid the bank £117,416 12s. Bd. The difference between this sum and the total debt to the bank is made up of profits on the working of those blocks which were in the occupation of the bank as sheep and cattle stations, the proceeds of sale of the live-stock on the various stations which were sold as the properties were disposed of, and the rebates off the debt previously mentioned. The Board desires to place on record its appreciation of the manner in which the bank has throughout facilitated the working of the Board, and especially in assisting in the realisation of the various securities in the best interests of the Trust. Mortgage Advances. —ln some of the specific securities there was both a present and a prospective margin of value over liability which enabled the Board to raise on fresh mortgage sufficient to pay off the bank debt, and, in the case of the Mangaheia 2d Block, to spend a large sum in improving the property by drainage. The blocks so dealt with are : — Blook. Area. Mortgage. Present Value. a. b. p. £ £ Mangaheia No. 2d ... ... 5,997 0 0 11,000 35,400 Whangawehi No. 1a ... ... 980 0 0 1,000 2,500 Tawapata South, Subdivision 1 ... 4,376 2 5 6,000 12,000 And in the Paremata Block, after selling the freehold of 4,614 acres 1 rood, the Board reserved the remainder of the block, 2,498 acres 3 roods 21 perches (present value £7,800), for lease, and on part of this it borrowed £3,000 to complete the amount necessary to pay off the bank's claim. All these properties are under lease, and sinking funds will be established which will insure the blocks at a future date being freed of all encumbrances. The income from them will then be available for the use of beneficiaries. The total value of these blocks is £57,700 which, with the lands mentioned in the following paragraph, makes a total value of £97,500 saved to the Trust estate out of the bank securities, subject to the mortgages as above, amounting to £21,000. Bedemption by Beneficiaries. —One block, Motu No. 1, comprising 2,000 acres, was redeemed by the beneficiaries, who paid off the bank debt on it. Bank Securities withheld from Sale or Bemortgage. —The following lands, which formed part of the securities to the bank, have also been saved from sale, and on final adjustment of accounts between the several blocks will be available for the benefit of the Native owners by lease or occupation : — Block. Area. Estimated Value. A. E. P. £ Mangatu Nos. 5 and 6 ... ... ... 40,150 0 0 20,000 Mangaokira No. 1 ... ... ... 2,027 0 0 2,000 Pakowha (part) ... ... ... ... 374 236 1,600 Whangawehi 1b and ]c ... ... ... 1,204 0 0 3,000 MangawaruNo. 2 ... ... ... ... 14,802 0 0 5,500 Whataupoko, Section 20 ... ... ... 3 130 50 TeKuru... ... ... ... ... 400 0 0 6,000 Tangotete Nos. 1 and 2 ... ... ... 80 0 0 1,200 59,041 0 26 £39,350 The 374 acres 2 roods 36 perches in Pakowhai formed part of the principal security to the bank, but to meet the wishes of a number of the beneficiaries the Board arranged to have this area taken out of the block and reserved for the Natives. Lands outside the Bank Securities. —ln addition to the before-mentioned lands there were in tho Trust several blocks not secured to the bank, viz.,— _i i Area. BlOok - A. E. P. Maraetaha No. 2a, Sections 2 and 3 .. ... ... 5,082 220 Maraetaha No. 2, Sections 3 and 6 ... ... ... 7,000 0 0 Mangapoike No. 2 ... ... ... ... ... 37,721 3 22 TahoraNo. 2 ... ... ... ... ... ... 60,694 0 0 Mangawaru No. 3 ... ... ... ... ... 18,720 0 0 Although these lands were not liable for the debt to the Bank of New Zealand, they in common with the bank securities were and are liable to other claims on the Trust estate and for the expenditure incidental to the management of the Trust. When the Board was appointed, claims against the Trustees, which had been accumulating for some years previously, amounted to the large sum of £20,600, the greater part of which was incurred for law-costs consequent on the interminable litigation in which the Trust lands were at one time involved, but now happily ended by the Board's Act. To provide funds for payment of this amount, and for surveys, roading, and general expenses, the Board, with the approval of the Court, was empowered by the Trustees to sell Sections 2 and 3 of Maraetaha No. 2a, comprising 5,082 acres 2 roods 20 perches ; Section 3 of Maraetaha No. 2, comprising 3,000 acres; and 10,000 acres in Tahora No. 2. Sections 2 and 3 of Maraetaha No. 2a were sold in 1904 for £4,066 25., and 9,590 acres (approximately) in Tahora sold at auction on the 15th April last for £10,009 10s. To pay the more pressing of these claims the Board, in January and May, 1904, raised temporary loans on mortgage amounting to £12,742 Bs. 4d., of which £2,742 Bs. 4d. has since been paid off, leaving £10,000 outstanding at date, which is payable out of balances of purchasemoneys now owing to the Board.

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The remainder of the lands, after reservation of suitable areas for Natives, were offered for lease. All the available land in Mangapoike and nearly all that in Tahora has been taken up by good settlers, and is rapidly being brought into profitable occupation. The value of these lands held for the benefit of the Natives is £95,000, which added to the value of the lands saved out of the bank realisation—viz., £97,050 —make up the sum of £192,050, and after providing for the amount owing on mortgage, loans and other liabilities there remains an estate comprising 187,438 acres, of a net worth of £173,023. Of this area 61,811 acres are leased at a present annual rental of £4,573 ; 26,469 acres have been reserved for Natives ; and of the remaining 99,157 acres, part will be reserved for Natives, a portion may have to be sold to adjust accounts as between the different blocks, and the rest will be available for lease for the benefit of the Natives. Throughout the Board had in view the need for as prompt a realisation as was compatible with due regard for obtaining the best market prices, and they are pleased to be able to report that full values were got for all the properties sold. The realisation of these lands has been the means of bringing in fresh capital, to the great advantage of the district as a whole, and the opening-up of such large blocks of excellent land as Mangapoike and Tahora, and the subdivision of Mangaheia, must largely benefit all in the community. The Board would fail in its duty were it to omit to draw your special notice to the very great advantage that has accrued to the Trust estate and to the district through the wise action of the Government in perfecting the titles to all the Trust lands. Had the Board not been in a position to give perfect titles advantageous realisation would have been quite impossible. The Board also desires to thank the Trustees, and more particularly the Hon. James Carroll, for the valuable advice and assistance throughout the realisation. Future Management. —Although the more onerous part of the duties for which the Board was appointed has been achieved, there still remains to be accomplished the adjustment of accounts as between the various interests of the estate, the settlement of large outstanding claims, and, probably, further realisation for these purposes. The Board hopes that within the next six months it will be able to deal with the greater part of these matters, and, as its duties will then be chiefly supervisory, the Board respectfully suggests that after that date its members shall hold office in an honorary capacity. In view of the large interests involved, the Board is of opinion that the management of so large an estate should remain as at present in the hands of a Board of Trustees responsible to Parliament. We have, &c, J. Maofaelane, Chairman. W. Sheimpton, } Members The Hon. the Minister of Native Affairs, Wellington. J. A. Haedino, f

Summary of Schedules of Lands vested in the East Coast Native Trust Lands Board.

Gisborne, 24th August, 1905.

B1O °tothe Ured BIook8 outside Bank of New Bank s *' uriHeg# Zealand. Total. t rea sold „ leased „ reserved for Natives ... „ held for future disposal Acres. 34,939 15,312 Acres. 14,672 46,499 26,469 41,577 Acres. 49,612 61,811 26,469 99,157 57,580 Total areas 107,832 129,218 237,050 'roceeds of sales of freehold joans raised on mortgage... £ 105,772 21,000 14,075 10,000 £ 119,847 31,000 126,772 24,075 150,847 'aid Bank of New Zealand „ for surveys and improvements... „ for sale expenses, law-costs „ rates „ Trust's General Fund 117,416 1,776 1,349 336 5,894 117,416 1,776 1,349 336 29,969 24,075 126,772 24,075 150,847 r alue of lands not sold 97,050 95,000 192,050 'resent annual rental of lands leased 2,915 1,658 4,573

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The East Coast Native Trust Lands Board.— Schedules of Lands vested in the Board, and a Statement of the Board's Transactions in regard to the said Blocks to the 31st July, 1905. A. Blocks secured to the Bank of New Zealand at 31st August, 1902.

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.2 I a Application of Pro iceeds of Sales and M1B. Areas, sold, leased, and held for Future Disposal. ■3 a . I |1 Si . 03 eg i— i II Blocks. Areas. <D a> DO O Paid Bank. > « a S3 to 111 I 5 iJ £fc Sold. En s eg o ja'o« I Remarks. 11 r^ if o Paremata Maraetaha No. 2, Section 4 Whataupoko No. 67d Okahuatiu No. 2 Matawhero No. 5, Section 9 .. Mangaheia No. 2d .. Acres. 7,112 3,991 2 15,190 15 5,997 £ ■24,784 15,967 60 26,250 78 3,000 11,000 £ 25,769 12,308 20 26,205 78 9,551 930 779 £ 409 228 40 45 270 £ 41 111 " £ 622 3,320 400 Acres. Acres. 4,614 2,380 3,991 .. 2 .. 15,190 .. 15 .. .. I 5,997 Acres. 118 £ 7,800 35!400 366 Sold at auction, 30th January, 1904. !! " 29th June, 1904* Sold privately, August, 1904. October, 1904. 1,768 Mortgage advance obtained to redeem block for beneficiaries, September, 1904. Land drained arid subdivided, and leased by auction, 25th February, 1905. Sold at auction, 25th February, 1905. Matawhero No. 5, Section 8 .. Matawhero No. 1 Moutere No. 2, Section 1 Tawapata North No. Iα Tawapata North No. 2 Pakowhai (part) 17 182 194 2,096 1,995 5,013 283 2,237 438 3,144 3,177 27,253 f 17 .. 182 .. 194 .. 2,096 .. 1,995 .. 4,638 374 •• Motu No. 1 .. Whangawhei No. Iα .. Tawapata South No. 1 Mangatu No. 5 Mangatu No. 6 Mangaohura No. 1 Whataupoko Section 20 Whangawehi Iβ, lc .. Maungawaru No. 2 .. Te Kuri Tangotete No. 1 Tangotete No. 2 2,000 980: 4,376, 20,075 20,075 2,027 3 1,204 14,802 400 5 75 2,100 liooo 6,000 43,483 57 356 1821 I 1,552-] I 2,000 .. 980 ■■ 4,376| .. •• ■• 20,075 20,075 2,027 3 l,600i 2,500 12,000; 10,000 10,000 2,000 50 3,000: 5,500 6,000. 75 1,129 97,050 60 In this block 374 acres 2 roods 36 perches were reserved for the beneficiaries, and pending an adjustment of interests have been let on a three-months tenancy. The remainder, 4,638 acres 3 roods 13 perches, was sold at auction, 25th February, 1905. Redeemed by beneficiaries. 60 Mortgage advance obtained to redeem block for beneficiaries, February, 1905. Land held under old lease. 600 Mortgage "advance obtained to redeem block for beneficiaries, February, 1905. I .. Unimproved and unoccupied. 60! Held under old lease. Unimproved and unoccupied. Occupied by Natives, partly improved. '! 2,915 .. •■ .. .. .. 1,204 14,802 400 5 75 •• 107,832 105,772 21,000 117,416 ; 1,349 336 5,894 34,93915,312 57,580 1,771 I

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B. Blocks not included in the Bank of New Zealand Securities.

Areas. «, ® rq §■8 CM "Si! •3 sea og ° Areas sold, leased, reserved, and held for Future Disposal. C a _. CO ■*j^ h Ph# Blocks. s o > A I* So-! = ° « * go .2 ° 3 > Remarks. i i Acres. 5,082 £ 4,066 t Acres. Acres. 5,082 Acres. Acres. £ * _ ...._. Maraetaha 2a, Sections 2 and 3 3,000 5,000 4,000 10,000 4,424 5,057 30,000 Sold by tender in August, 1904, to pay old liabilities contracted by the Trustees, and to provide for current expenses of the Trust. The Gisborne Borough Council has agreed to purchase of 2,299 acres in these two blocks for a water-supply reserve. The transaction has not yet been completed. The greater part of Section 6 and the whole of Section 3 are unimproved and unoccupied. Part of Section 6 is improved and occupied by Natives. 1,226 £10,000 raised on mortgage to pay old liabilities contracted by the Trustees. When taken over by the Board all these blocks were unimproved and unoccupied, except 8,000 acres, 5,000 of which were in European and 3,000 in Native occupation. 432 9,590 acres sold by auction, 15th April, 1905, to pay old liabilities contracted by the Trustees, and to assist in redeeming the then existing mortgages on the Mangapoike and Tahora Blocks : the latter (£2,742 8s. 4d.) haB been paid off. When taken over by the Board the whole of these lands were unimproved and unocoupied, except a few Native settlements. Unimproved and unoccupied. Maraetaha No. 2, Section 3 .. . 6 .. 3,000 4,000 •■ •• Mangapoike No. 2 37,721 10,000 28,240 Tahora No. 2 60,694 10,009 9,590 18,259 22,045 10,800 43,000 Mangawaru No. 3 18,720 7,000 18,720 .. ■• •• .. 129,218 14,075 10,000 14,672 46,499 26,469 41,577195,000 1,658 I f

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Receipts. £ s. d. £ s. d. Expenditure. £ s. d. £ s. d. Balance, Ist September, 1904 ... ... ... ... 5,008 13 11 Payments to the Bank of New Zealand in discharge of Sales of freehold secured to the Bank of New Zea- debt— land— Paremata ... ... ... ... ... 105 10 9 Matawhero No. 5, Sections 8 and 9 ... ... 361 6 6 Mangaheia No. 2d ... ... ... ... 9,551 1 2 Matawhero No. 1, Lots 4 and 5 ... ... 2,237 6 7 Balance of total debt at the Bth June, 1905 ...43,582 1 9 Moutere No. 2, Subdivision 1 ... ... 438 3 9 , 53,238 13 8 Tawapata North No. 1a ... ... ... 3,144 0 0 Mortgage paid off— Tahora No. 2 ... ... ... ... 2,742 8 4 Tawapata North No. 2, Subdivision 1... ... 3,177 3 0 Subdivision expenses and improvements— Pakowhai (part) ... ... ... ... 27,253 2 6 Mangaheia No. 2d ... ... ... ... 779 4 0 Motu No. 1 ... ... ... ... 2,100 0 0 Matawhero Nos. 1 and 5 ... ... ... 6 14 0 Pakowhai ... ... ... ... ... 50 0 0 38,711 2 4 Mangapoike ... ... ... ... ... 281 18 0 Less unpaid purchase-money ... ... 4,391 0 0 Tahora No. 2 ... ... ... ... ... 900 0 0 34,320 2 4 . 2,017 16 0 Sales of freehold not secured to the Bank of New Plans and Ad- Commis Zealand— vertising. sion. Sundries. Tahora No. 2, Sections 6, 7, 12, and 13 ... 10,009 10 0 Sale expenses— £ s. d. £ s. d. £ s. d. Less unpaid purchase-money ... ... 6,005 14 0 Whataupoko 67d ... 100 ... 110 210 Eents— 4 003 16 0 Matawhero 1 and 5 23 10 0 9 7 5 12 15 2 45 12 7 Paremata ... ... ... ... 366 18 4 Mangaheia 2d ... 52 10 0 70 14 10 25 4 0 148 8 10 Mangaheia No. 2d ... ... ... ... 99110 5 MoutereNo.2,Sub. 1 0 15 6 112 11 ... 2 8 5 Pakowhai... ... ... ... ... 15 0 0 Tawapata North 1a 4 16 6 11 15 9 ... 16 12 3 Tawapata South No. 1 ... ... ... 300 00-2 4 14 3 1118 3..16 12 6 Mangapoike 62 10 0 Pakowhai ... 47 2 9 93 12 8 24 3 0 164 18 5 Tahora No. 2 ... ... ... ... 201 610 Motu No. 1 ... 35 0 ... ... 35 0 Mortgage advances— 1,937 5 7 Whangawehi 1a ..410 ... 276 686 Mangaheia No. 2d .. ... ... 11,000 0 0 Tawapata South ... 18 18 0 ... ... 18 18 0 Whangawehi No. 1a ... ... ... 1,000 0 0 Mangatu 5 and 6... 51 6 0 ... ... 51 6 0 Tawapata South No. 1 ... ... ... 6,000 0 0 Whangawehi 1b &lc 400 ... 250 650. 18,000 0 0 Maraetaha No. 2 ... 19 19 0 19 19 0 Interest on purchase-moneys and rebates ... 1,275 8 6 Mangapoike ... 13 3 9 6 12 6 3 30 22 19 3 Less accrued interest not yet received ... 372 2 4 Tahora No. 2 ...131 0 3 37 10 9 35 0 0 203 11 0 903 6 2 Eefunds— 360 3 0 243 5 1 125 17 8 729 5 9 Bank of New Zealand: Amount lodged to secure Bents paid to Native owners ... ... ... ... 167 15 1 the Bank's contingent claim on the specific Payments on account of Trustees' liabilities ... ... 3,930 1 6 securities for advances for law-costs ... 1,750 0 0 Bates ... ... ... ... ... ... ... 184 19 4 Cook County Council : Survey of county roads in Interest ... ... ... ... ... 1,600 16 3 Paremata Block ... ... ... ... 46 18 0 Less accrued interest not vet paid ... ... 277 16 2 1,796 18 0 1,323 0 1

The Bast Coast Native Teust Lands Boaed's Statement of Receipts and Payments from Ist September, 1904, to 31st July, 1905.

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Contractors' deposits ... ... ... ... ... 30 0 0 Law-costs ... ... ... ... ... ... 581 15 6 Balance, 31st July, 1905 ... ... ... ... 350 8 7 Salaries, members of Board ... ... ... 1,000 0 0 office ... ... ... .. ... 266 13 4 Travelling-expenses ... ... ... ... 125 9 0 Office expenses ... ... ... ... ... 12 13 0 1,404 15 4 Contractors' deposits ... ... ... ... 30 0 0 £66,350 10 7 £66,350 10 7 J. Macfarlane, Chairman. Examined and found correct—J. Sandtmann, Auditor, F.I.A.N.Z. J- A. Harding, ) H , Wet r IYJ. fcJlllUtjlo. . Shbimpton, I Gisborne, 24th August, 1905. T. A. Coleman, Secretary. The East Coast Native Trust Lands Board's Statement of Liabilities and Assets as at 31st July, 1905. Liabilities. £ s. d. £ s. d. Assets. £ s. d. £ s. d. Mortgages secured on freehold ... ... 31,000 0 0 Freehold lands as per schedules ... ... ... 192,050 0 0 Accrued interest on mortgages ... ... 277 16 2 Unpaid balances of purchase-moneys on sales of 31,277 16 2 freehold properties... ... ... ... 10,396 14 0 Bank of New Zealand ... ... ... 350 8 5 Accrued interest on ditto ... ... ... 372 2 4 Sundry creditors ... ... ... ... 299 12 11 10,768 16 4 Salaries ... ... ... ... ... 180 5 0 Accrued rents ... ... ... ... ... 1,112 8 5 830 6 4 Amount payable by Bank of New Zealand by way Claims on the Trustees in connection with manage- of rebate off total debt ... ... ... ... 5,000 0 0 ment of Trust estate prior to the appointment of the Board ... ... ... ... ... 3,800 0 0 35,908 2 6 Surplus ... ... ... ... ... ... 173,023 2 3 £208,931 4 9; £208,931 4 9 =============! ============== J. Macfarlane, Chairman. Examined and found correct—J. Sandtmann, Auditor, F.I.A.N.Z. J. A. Harding, {-.r, W. Shbimpton,} -Gisborne, 24th August, 1905. T. A. Coleman, Secretary. Approximate Cost of Paper. — Preparation, not given ; printing (1.423 copies), £5 14s.

Price 6d.\ By Authority : John Mackay, Government Printer, Wellington.— 1905.

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