BIG SUM AT STAKE.

Dominion, Volume 1, Issue 171, 13 April 1908, Page 5

BIG SUM AT STAKE.

-♦ • ■ ' AN AUCKLAND ESTATE. THE BANE AND THE LOCAI;, liODY. (BY TEI.EGKAI'II. —SrDCIAI. CORRESPONDENT.) Auckland, Apfilll. At tho. sitting of tho Assessment Court, for tho borough of prey Lynn,-' objection was made by the' Bank of New Zealand to the unimproved values placed on the various', sections in the Surrey. Hills Estate. The original valuation fixed by the Government Valuation Department on tho whole property was £04,710, but, this being 'contested, they consented to reduce it to £54,710, ■a reduction of £10,000. Mr. H. Buckleton, manager of tho Auckland the bank, appeared in support of tho objection, and .in favour of a further reduction. Messrs. A. J. McOowan and B. Esam appeared for the Department. Asked by the presiding Magistrate what', he thought was the correct value, Mr. Buckleton'Said: " I am authorised by tho Board of Directors to stato that they would willingly accept £42,000 for the property, and if anyone offered that for jt they would take it. Wo admit -that if tho'ostato were roaded at the expenso of someone. else other than the bank, the valuation would bo a fair one, but tho-property is not likely to bo roaded for years. It would cost at least £20,000, anyway. The bank is prepared to -accept £45,000 for tho property, and would bo very glad' to get it." Mr. .Poacockc (Assessor): "The fact that the bank will accept £45,000 docs not necessarily mean that that is its real value. Tho bank may have reasons for wishing to dispose*, of it." Mr'Buclcleton said the property was an exceedingly difficult ono to deal with.' •; Mr'. Esam then proceeded to explain the way in which lie arrived at ,tho valuation. He was informed'that the reason for taking it; was because it was neccssary for tho .Valuer-General to certify to the Assets Board's property in Grey Lynn. Therefore, lip valued tho whole of the Board's properties in the borough, and in round numbers,made it'out at abiAit £76,000. • He based this on •the assumption that tho bank would not be loaded with any expenses of making roads, and that'as these roads wcro made tho bank would get. tho benefit of the increased value. Another gcntloman, on behalf of tho Assets Board, made a; valuation at the same time, which only differed to tho extent of .about £400, from that made by him. • Since then portions of the land had been sold for sums totalling £2000. In: his assumption that tho bank would not have to pay for tho forma-, tion of the roads ho had been supported 'by tho'Supremo. Court. Mr. Buckleton .Said tho matter had not been/determined by the Supreme Court at all, 1 but ;had, been .referred by mutual consent. to . the. Appeal • Court, .which had reserved! its dccisioni The Borough Council contended that the obligation to make the roads .was east' on.the,bank,;.while tho bank contended that it was cast'on the' Borough Council.' If-tho Appeal Court; decided in .the Council! s . favour, it would cost . the bank £20,000'' in road-making. . .. ', . . -•'Mr.-Dyeri S.M.: ".If anyone buys the land, then lib buys .tho law-suit too. The position seams'to n;e to-bo this: tho' bank says, 'Wo will-take : ,£45,000 for-it.'- . What wo have to do is. to fix the selling value of tho property a.s'-.well-.as'.-'we can.' I' am almost inclined -to think that _ it ; is 'better to .sustain tho valViat-ion, -leaving it open, to the bank, if they -aro to. proceed under Section 31- of the Act,:. which prescribes' that if the owner 'of any property is' dissatisfied ii;ifch; the decision of tho. Assessment Court jw can call on tho Valuer-General to reduce; it to tho amount ho stipulates,' or purchase it." ■ ■•,'■•' Mr. Buckleton admitted that that course was. open to the bank, but he pressed for a straight-out : decision.. Captain Frator had valued, the property-at" £70,220,' but this was i only on "tho assumption that the'bank did [•not /have. to form. the'--roads' and that the sales'were spread over a number of years., Since that 'valuation 'was made, £70,000 worth of land had been. sold. Even if, tlio Appeal, Court decided in favour of the bank, ,how,-lie asked, was tho bank going to mako .tho;.Council.form.-tlio-. roods? If the Coiirt now 'to sustain- tho Department's valuation,'■•'they, would be,'only, making it what it. would b'e in.perhaps five or ten years' time, .when the. roads wero formed. What they:-had, to s decide' was;, the'present value without the. roads', not what- it . might .be .in tho future. If the bank could forco'the Council to'make tlio roads within six months' time;; then lie admitted that the valuation '.wasVa fair ono.i' The Court agreed with Mr. Buckloton, and fixed■ the. valuation 'for the' property at £45,000. . ' .