I.—3a.

52

W. 11. BOWLER.

216. It the mortgage is not met, your equity ol' redemption can bo sold ( —The title is caveated, and there is a further provision, I think, in the mortgage, that there shall be no power of eale. 217. Hon. Mr. Ngata.] Who has that mortgage? —Mr. Dalziell could probably produce the document, or give you more informati m on the point. 218. Mr. Herriee.] You can get out of your trust simply by resigning? —Yes. 219. Then what guarantee is there that the land will be cut up?—l do not say I am going to get out of it if the land is not cut up. 220. Supposing the mortgagees exercise their power of sale?—l think their power of s;tl<is specifically restricted in the mortgage; and the Board, further, caveated the title in order to insure that the land will be cut up. 221. Are you sure there is that clause? —Yes, there is a special covenant in the mortgage. I recollect that. 222. You seem to recollect that, but not the amount?— That was a matter that concerned the Board. The matters of finance did not concern me; the Board was finished with the transaction. 223. You acted under instructions from the Department with regard to buying the land and mortgaging it?—Oh, no. 2~24. You got permission from the Department?—l got permission from the Department to act as trustee. 225. And with regard to mortgaging it? —That was a condition in the agreement. 226. If the company do not fulfil the conditions as to cutting up, what will be your position?— That is set out in the agreement. The Board in that case has power to subdivide and road the land, and sell it in areas to conform with the provisions of Part XII, regarding the limitation of area. 227. Under what provision of the Act?— Part XIV. 228. That is, the Board have got the same power as in Part XV? —In regard to lands vested in the Board. 229. It is under Part XIV, not XV?—Part XIV. 230. Then they must divide the land into two portions, and leas 6 one portion and sell another 1 Hon. Mr. Ngata: That was only land vested in the Board on the recommendation of the Native Land Commission. Witness: We have power to sell in accordance with Part XIV. 231. Mr. Herries.] I do not think so. You think you are not compelled to lease half and sell half? —Certainly not. It is European land, anyhow. That provision does not apply, but we have power to cut the land up in the manner provided by Part XIV of the Act. 232. When was the caveat lodged?—l could not say. 233. Have you got it in the minutes? —The caveat would be registered in the Lands Transfer Office. 234. Have you got any record of any determination of the Maori Land Board to lodge a caveat? —No. That was part of the arrangement. It was not in the minutes. The caveat was lodged simply for the Board's protection, so as to insure that the land would not be sold. 235. Did you sign the application for caveat in your capacity as Chairman of the Board? — No. I understand the caveat was signed by Findlay, Dalziell, and Co. on behalf of the Board. 236. Are Findlay, Dalziell, and Co. the usual solicitors to the Board? —No. 237. Have they ever acted for the Board before? —No. 238. Did you give them any authority to sign the caveat?—lt was part of the arrangement that the caveat would be lodged, and they went to the trouble of lodging it. 239. But surely the Board as a Board must know whether a caveat has been lodged? —I am advised that the caveat has been lodged, 240. Does not the Board authorize the lodging of the caveat? —No. 241. Is it usual for caveats to be lodged without any resolution of the Board? —I do not know of any other case where fhe Board has caveated a title. 242. And that is the usual procedure—the Board would not proceed to do it by resolution? —It is impossible to bring all these small detail matters before the Board. '243. This is a very considerable matter? —The Board's interests are protected by the lodging of a caveat. 244. That seems to be the only protection ?—Probably a sufficient one. 245. Ihe caveat was only registered on the 18th August, 1911?— Yes, quite recently, I know. 246. What was the object of lodging the caveat? —The caveat protected jointly the purchaser and the Board. Otherwise there was nothing to hinder my selling the land, perhaps. That caveat has protected the purchaser. 247. Is there anything, except this caveat, to prevent you from actually selling the land and going off with the proceeds?—l do not know the strict legal position; the caveat, anyhow, would prevent it. 248. But you, as Chairman of the Board, could withdraw that caveat ? —Yes. Well, Mr. Dalziell had better put another caveat on. Ido not know whether lie has or not. It never struck me in that light before. 249. You say that Findlay, Dalziell, and Co. lodged the caveat, acting for tlie Board?— Yes. 250. Why did you employ Findlay, Dalziell, and Co. ? Why not your usual solicitors? —■ We do not usually employ solicitors. 251. Why did you not lodge it yourself?-— They have clone everything conneoted with the matter, to save ur trouble. We could have done it equally well.