I.—3a.

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[F. O. DALZIELL.

38. Could the Registrar refuse to register it? —No, the Board could oome in. It does not matter what encumbrances are on it meantime, they are all subject to that condition , and if the land is not disposed of, it does not matter whether it is leased, mortgaged, or anything else, the Board can sell it. 39. But supposing Mr. Bowler signed a transfer over the whole block to a single man : would not that transfer stand?— No. 40. What is to prevent it J —lt might if somebody took it without notice, but he must have notice : the documents on the Register disclose the fact that there is this condition. 41. You mean to say that the District Land Registrar would refuse to register the transfer .' The transfer would be taken with notice of the fact that this condition was in existence which enabled the Board at any time after the three years to dispose of the land. 42. Is there any clause in the Act by which the Board can deal with European land/—There is no special power. There is some little doubt as to whether the Board itself can do that. ■I'i. Very considerable doubt, 1 think? —I think it probably could; but we have provided that if the Board has not the power, the trustee for the time being has. 44. If the Board cannot do it, Mr. Bowler can do it'/ —Yes. 45. Then everything depends on the honesty of Mr. Bowler? —No. You imagine that Mr. Bowler is there and must always be there : he can be removed at any time. 4G. By whom?— The Supreme Court. He is only an ordinary trustee. 47. He is acting as a private individual? —In a sense, but he is just like any trustee. The Public Trustee would be in the same position if we had appointed him. He could have done just what you suggest Mr. Bowler can do. 48. It all depends on Mr. Bowler's honesty as a private individual and not as President of the Board? —That is so, but it does not make any difference whether he is a private individual or in an official position—if he is going to commit a fraud the result is the same. There is power in the agreement to remove him at any time. 49. But he may have done the mischief —he may have sold the whole of the land? —He cannot. Anybody who purchases takes that notice, and therefore he is bound by the agreement to the same extent as Mr. Bowler. 50. Mr. Bowler mortgaged the land to Mr. McNab and others?— Yes. 51. What was the object of that? —Mr. McNab and others, I understand, guaranteed the company's account. You see the company had to borrow, for the purpose of carrying through this transaction, a large sum of money on the security of the land —this block and the other property too. They borrowed it, 1 think, from their banker, on the guarantee of the various individuals. 52. What was the amount of the mortgage from Mr. Bowler to Mr. McNab and others?—l do not know. 53. That was not prepared by your firm? —No. si. It was done by Mr. Loughnan?—Yes. I expect the amount was not mentioned. 55. There was only one mortgage registered? —Yes. Fs that the mortgage to the company, or to McNab and others. 56. To McNab and others? —That would be a mortgage to cover the bank account. It would probably not specify any sum. 57. Then Mr. Bowler also gave another mortgage to Mr. Mason Chambers? —Yes. 58. That would be on the 7,000 acres? —Yes. 59. What was the object of that? —An advance to Mr. Lewis. I do not know whether it is really relevant, but Mr. Chambers paid off Mr. Macarthy and took Macarthy's securities, ana this was collateral. 60. You mean to say that Macarthy's securities are over other lands? —Yes. But that is really their private business, which need not be gone into. 61. What was the object of the Board lodging the caveat/—To prevent any dealings at all inconsistent with the agreement. 62. Why was the caveat registered later than the other deeds? —I do not know. There was not any special reason. We'lodged it on behalf of the Board. That was purely a matter of convenience. We, as a matter of fact, were asked to register the documents of all parties—the company, Mr. Chambers, and Mr. Lewis. We acted merely as agents for everybody in registering the documents. Apparently the lodging of the caveat was left till a little later. 63. Was the caveat taken into consideration? —The caveat was part of the original arrangement. 64. Why was it registered later?— These things happen in an office sometimes. I had not charge of the actual conveyancing part of it myself. Somebody in my office had. 65. Mr. Bowler said that no instructions were given to you by the Board to lodge the caveat? There was no resolution, I understand. It would probably be at my suggestion. 66. You do not generally act for the Maori Land Board, do you?—No, and 1 have not in this matter. 67. How is it you acted this time? —That was merely in the same way as I acted for all the other people. I did not act for the company, for instance, but I registered their documents. 68. Mr. Bowler has executed mortgages to McNab and others and to Mason Chambers : if the interest is not paid, can they foreclose the mortgages? —Yes, in the usual way; but you have always to remember this —I should have mentioned it before : this land, having been acquired from (he Natives, cannot now be disposed of except in areas in accordance with the Native Land Act. The law prohibits it. 69. Will you explain why yon think it cannot be alienated? You have got the Order in Council? —Yes, but only for this alienation. 70. The land is now private land : it is not Native land ?—But then there is a special provision to the effect that once it becomes private land after having been Native land, it remains subject to the limitation provisions.