CULVERDEN ESTATE.

Dominion, Volume 1, Issue 149, 18 March 1908, Page 8

CULVERDEN ESTATE.

• QUESTION OF COMPENSATION. CASE FOR THE CLAIMANT ' CONCLUDED. . EVIDENCE OF CROWN WITNESSES. ' ' ---(BY TELEGRAPH—rUESS ASSOCIATION.) ■ ' " . Christchurch, March 17. Further evidence was heard to-day in the .'Compensation \Court "in regard to the compensation to be paid'-'by .tho-Government for 'tho Oulverden Estato'. cohipiilsorily acquired .under, tho Lands .for Settlement' Act. ' -''Mr:-' Stringer produced the circular- instructions received A>y Albert . Freeman' in regard'to the' conditions to ,bo observed in -fixing ,tho. value of -land. - Tho first circular 'was dated 1 August;23y 1901, and repeated ,in'str'uetions to tho /valuer to- keep' below, rather'than - above; fair -inarkpt -value,' 'and not';to ba'so valuations on: extreme or .boom prices.-' ■'-Tho '■■'■' second ••'cijcular,' I 'issued;'. in October, -.1906,': .',by: ■ tl{o-' . Valuer-General,' stated. that' tip-top' prices were not desired, but-only" a fair'thing. ■ '\ ,'Mr. Fin'dlay remarked "that witness had received 'different instructions after. August, 1901, and the second circular had no effect on .the, caso',-, as. 'witness's valuation 'was mado'in 1905. '

-Thomas:' Blackley,- sheep-fanner at RakI aia, said. that lie had'made a'.valuation' of 'thV estate excluding .' the township,' lands. Hi's. valuation ' was "£144,544,-..0r'.-an average of -£6 ,10s.- per i'aere.. He' considered that 9 ; per'cent, could/bbmado by a person purchasing at this price. ..Ho would havo-to cultivate all. the. cultivable land on the station, and this y.'ould increase.'- the carrying capacity,'of the station. . . .. '"yHis 'Honour-Do' you- propose -to make 9 per.;'cent. on-''£150,000?. ~ ■ "... •''■ Witness: Nothing liko.that... x ':ELia Eononr£lS,OGO ; 'a ' year, and yet farmers ; grumble !•' ' . .> , Thos. Dowling,:farmer,,of Ashburton,' said he agreed with the, yaluatibn that had been ,put, in by .the. ' previous A prudent purchaser should mako 8 or 9M>er cent. "ori'.'His money.'' ,'A fait-Return on Culverden ..would . be-,£12,000 ..or £13,000 . per annum'- clear. - He, would change absolutely and entirely the -past methods of working the' estate!'.' '. ' Augustus- Biss, accountant,, said that ho had;made, an/e'xaminatigp, into the, accounts and had prepared- a. profit arid' loss balance Sheet: for. the'/"'past: fivo. yeats. '•' The . result of.: his work was that tho' profits for tlie fiveiyears 1 wero £20,930,He'had been supplied with a-.balance-sheet prepared on'be-M-of the respondents, Avhiph showed a it -■ over.' tho-same period of :£18;9o9 Us. 9d., a difference" of. .£7970. ; The difference was 'caused ' by' the: Government' accountant charging-' items ' that. '■ Witness had • not, included.'- This,' closed; tho case for claimants. :': Mr. -E-iiidlay ..calle'd Donald: GeoTge':Clark; accountant in , the Land; and Income;. Tax O'flice, • Wellington; ■. He, state<l that. ho '.had prepared' a balance-sheet,'of the-'Gulvoruon' Estate Tjaso'd" on tho facts -arid books' supplied by/the trustees. - ;..He. defended : tho uoros objected to. byWr.-Biss. . .''Mr. , : Findlay then .addresswl,the . Court on behalf of tho Cjown. ,-He-stated .that:, .tlio Court had to'deal with the estate in a rather difficult-'time,''' when land' values in.'- a stato-df' flux;. and there would .be, a consider-' '&blo disparity betweenfcbe. estimates- of witrifesses': for' tlie claimants land .'those., for the Crown." Tho lowest viriuo.puton-tho estate oh'belialf-of''tho cl.iiihantsj oxcluditig'.township'/lands; yfia' £127,382;'-' estimate d -hy Mr: Sims;:' 'A'ddiug-'tho :price'as 'claimed' by truetcos'»for tho .town • lands, tho total wos. ad-1 "'to :£130,838.V "The ayeVage tho Crown-witnesses would bo.fully £25,000,be10w that', and'' £45,000 'below-, the amount " re-, quested'-,by'the-claimant-s.', i The, Crown'values 'wpuld;boibascd.on'tho actual capacity as distinguished froni potential capacity. of the estate; arid. actual earnings instead ,of speculative, possibilities of: inoome. Vi His Honour:, If there ;]ias been a conservative '"management will claimant; bo, stopped froni-showing that it' -.was.'conservatiye ?' ;>lr..'Fmdlay,:.Wliere,th.ere'is , so much disparity of opinion, arid so' much, at stake,' it would bo'dangerous to enter on. it. It is not''suggested thattho ,'; managementhas been' incapable. ; 1 :.■ ,■ ' -His Honour: It is no use mincing;matters. There ha-sCbeen'evidence and,there is a suggestion; that'' the'' 1 management has: not, been ' 'I-do not say.,that I accept it. ''• > Mr. "Eindlay said that the\ Crown would support tho- actual an.d: say that the,best had', been jdono; under all, circumstances'.lt. might-bo-assumed that withesse's did not know'-'so much'as' the'man'ager; the. nature, and capacity of: t-he_estate. .There: was- no good, reason for.- a ■ man throwing- away -income,' and 1 it 1 migl\t bo assumed •that the people .running/ the * estate'; knew 'more, about their particular business and the stock ;they. shoiM, put -'oil tho estate than people who 1 spent a few days dr.'va week'.; there.. -.The-'; witnesses, 'for claimainty- he' argued,, .had been: placing subdivisional valuo on- the estate. / Tho' duly safe test of tho', valuo;. of-an: estate, was what mighty be'.'.considered., ia's '"'fair 1 capitalisation of -tho earner's 'ihcoine". - ' He. submitted that; it was impossible for claimant to get-5 per cent, capitalisation 'of, their income.', ; In pre-i' vious 'cases 'Courts? had ' capitalised - at -8, 9, j aiid':lo per cent!:,' and'in this caso:counscl submitted - that it -should; certainlynot"bo less than 6 per" cent;-;. Ho contended.' that tho price put on 'the/unoccupied 'township lands of ?£2O per aero was excessive,' as all .township lands for" which there)' was any 'demand'' had .been > sold. If. was-advanced beyond tho Culverden'township (arid a survey, had 1 been-made),'tho only":possible-value -of! these lands would bo their ,aericnltural'valuo. As':' to' the; claim for loss .of income, through timeilost.in investment", counsel argued that thfero ; would be. rio.iloss; as'investments could readily -at from- 4} ,to 5 per cent., which":'would-'give; a's lmich income as claimants ' had, been ' ; receivint; from; the estate; - - Tlie' evidencd : 9f' Crown ■ witnesses in regard: to, ;,tho characterof., the 'land /'would ba'that the; block was'.situated..in,-a somewhat'/dry,'locality,. that '-it '.had" ; ari'. oxceMingly lighV subsoil;'and ; ;'th'at it coiild. not.bo, cropped' 1 - for' , gra : ss-growing pTiwsSsViv,''. s ':';'''';:.;. " / . ' ivSl'Lure," "District-'Surveyor,.;, gavo evidence .that ho had made- a valuation of,.,the , estate,' very iittlofagricuitural land; In many,places ho did'. ript think that .grass' woiild ; last more than • twd l years/ 'and - could ■ riot. bo'-profitably groiyri;';:' soil was slight; ''- In one'of;;the;.-best -parts there was lOin. 'of soil ■on' top,'of hard clay,- and ' depths in: other 1 places varied' from'-Oin. to 12in. Threefourths of the country; had a southerly aspect,, and much of; it. was: sour gro'iind.- In his. opinion ' therewas . only'/ one. value to he placed :pn-:the,'land,; and;that was its sheepcarrying vajiie.' >He.thought that the-estato had; been- very well>managed, and he could 1 notrsuggest ■any;-impr6vementi - Judging' by tlip appearance of theiestate he, thought that the owners had 1 found that it did riot pay to put in good grasses.' This might account for tlie- presence of Hewing's fcscuo at.'Ciilverden. - He valued the run- at.'-£97)483,.and tho. unleased portion :of tho township at £298 15s. . A'-, fair return on a piirchaso should bo 6 per centi, and many -biiyers at high prices were riot '.'getting'that.;-. The season was a bad one for, turnips.' ' He- considered that people u'o,l'6 paying too,much for iand. : Personally, 'lie would.-not "give £80,00p;for Cuiyerden.

• Mr.'; Stringer : You think the Lands Purchase Board .is:Very,foolish: to. buy Culverden.

• Witness's Absolutely- for settlement I^do.

You : aro .opposed to tho Land Purchase Board and : their advisors on this'matter?' ./Yes;

■■ 'William'. Cunningham, of Rangiora, said .that ,he had ma.de ; a valuation 'of Culverden. On .a subdivisional basis he valued the estate at ■ £89,544, and his .buying price woudl be from7£Bs,ooo to '£90,000. ■: : \ To' Mr. Russell ;,.Tlie sheep looked remarkably well on . the' estate; though there . was hardly a bito of; grass about. In a wet summer the estate. would not. carry many more sheep, as ■ it' would not. .support the quickmaturing grasses. 'Parts' of the, estate would grow ■ turnips, but he doubted whether ryegrass could'be grown with success.