CANTERBURY RUNS.

Dominion, Volume 4, Issue 1045, 7 February 1911, Page 6

CANTERBURY RUNS.

CONDITIONS AS TO CAPITAL. • (By Tclcsrapli—Prc3s Association.) Christchurch, February 0. Regarding the decision of tho Canterbury Land Board that' applicants for tho subdivided pastoral runs to bo offered towards tho end of the present month, must produce proof of possession or of oommand of capital approximating equal to at least seven years' rent of the runs applied for, eome explanation appears to bo necessary in view of ; the criticism to which the matter has been subjected. Tho condition mentioned, it is pointed out, is not binding on tnouuimi, and was made chiefly as a guido to those applying or contemplating applying for tho runs. , The . board, in this matter, reserved to itself tho right to deal with cach individual case on its.merits as it camo beforo tho members of tho board. In view of inquiries made on the subject, it was considered desirable to givo tho public some indication of what the board would: require in tho matter of capital, tho necessity for fixing tho amount at seven times the annual rental was unanimously recognised by' the board. 11l fact, when it was originally proposed that the amount of c»ipital possessed by an applicant •or tho. amount" ho could command should be five times tho amount of tho annual rental, somo members proposed thnt it should biv.eight or ten times tho annual rental. Tho decision ultimately arrived at was -based on tho facts that there will bo fpiicinj to ba done, woolshed and cottages to bo erected, stock to bo bought, ,nnd provision made for incidental -jxpenses, such as rabbiting, as well as fori'the risk attendant 011 taking up country of the naturo of which tho runs arq chiefly composed. Each run carries, b¥ is capable of carrying about 5000 sheep, and at tho prices ruling at present it was estimated that'a run could not'bo stocked at much' under -£2500. Then it was presumed that an applicant who would bo worth having as a settler ought to havo a woolshed and a few cottages, tho erection of whicli would cost a 1 good deal of money; ' Tho decision of tho board was intended as an indication to applicants that, :n order to avoid wasting the board's time, they should como before it with some proof that they were in a position to financo tho runs they were applying for. An applicant, for instance, might not possess money himself, but his father might bo willing to givo him a thousand pounds to start with, and if the father's guarantco was 'produced and the father was known to bo in a Eosition to givo the guarantco that would e quite as good to Hie board as proof of the actual possession by tho applicant of the necessary cash. 111 case of an npplicant, however, who alleges that lie possesses the actual cash, tho board naturally demands that ho should substantiate his statement by producing his bank book. As to-the easo of an applicant producing proof that a financial firm or company is prepared to give him tho required 'financial assistance, it is understood that iho bonrd would not consider this sufficient. Tho npplicant must show that he himself is risKing a fairly largo nmount of his own capital in tho venture as evidence of his genuinncss, and that ho is not a dummy for a financial firm or company. Tho board, whilst not insisting on "tho applicant possessing tho actual cash required, demands something more than proof that u firm or company is willing to financo the applicant. Tho applicant must show that he has a direct personal and financial interest in tho lease. If an applicant for instnnco can show that 110 has, say, 1:500 of his own and produces proof that 110 can financo the remainder and that this financial assistmice is unquestionable and sound, then the board, other things being equal, is not likely to raiso any objections to him taking part in the ballot. On another point that has been tho subject of criticism—that thero should havo been no examination—it is contended that examination is neccssary to prevent dummyism if tho runs wero open for selection without examination there would 1)0 nothing to stop those inclined to do so applying for them as dummies of other people, and holding them for two years until they got tho board's cousent to transfer.