CROWN LEASES

Evening Post, Volume CIV, Issue 73, 23 September 1927, Page 8

CROWN LEASES

TRANSFER CRITICISED

LAND BOARD REPLIES

(By Telegraph.) (Special to "The Evening Post") DUNSDIN, This Bay. "Such practices are scandalous and one would not expect them of a Government Dopartmout," declared a Crown leaseholder yesterday when he related to a "Star" reporter the tranaaetions of the Otago Land Board over a run in the Barewood Block of the Otago University Endowment at Strath-Taieri. The Commissioner of Crown Lands, to whom the complaint was referred, made a complete defence of the board'i actions. The. sale of the block of 4800 acres was under ,way when the rental was being fixed by the board for the coming twentyone years. The rent was fixed at Is Id per acre per annum, to which an objection was taken by the lessees: Arbitration proceedings followed, and the rental was assessed ut ll%d per acre. The sale was made at £10,600, and application was made to the Land Board for a transfer to the purchaser. The board refused to grant a. transfer unless tho sale price was reduced to £10,000. The brothers according to the "Star's" informant, were almost compelled to sell out, and, as they could not afford to let the deal fail through, they reluctantly agreed to reduce the price by £500. Then the board had gone to the purchaser and stated, "We have reduced the price of purchase by £500, so you will now pay Is Id rental per acre." The purchaser was | forced to agree and the transfer was [ completed. "This is iniquitous, and a Government board should be above such practices," said the settler. "If such dealings took place among private buyers by agents the papers would have plenty to say under big black headings. The scandal is that tho two brothers took over the lease* and improved the run. The holder before them left the block without a. penny. The brothers were compelled to sell and the purchaser was the man who knew the value of the land and ' knew what he was doing. He was quite prepared to pay £10,500, but the Land Board used the pistol in forcing the holders to reduce the price and its going, to the buyer and demanding increased rent after compelling the men, who needed the money, to red«ce their selling price does not appeal to me as being ethical business. I hold a run in the Bax-ewood Block, and now that the Land Board has increased tLe rent on this particular run I suppose It will mean an increase for the adjoining runs. The board seems determined to have its pound of flesh." The main facts of the statement were correct, stated Mr. A. R. Galbraith (Commissioner of Crown Lands), when the complainant's remarks were referred to him. The board had objected to the transfer on the grounds that the goodwill and the decreased rental were not consistent. The board was convinced that on a sale at £10,000 the goodwill was quite a good one, and the figures supplied by the then holders of the block supported the board's conclusions. There was not in the least any suggestion of the "pistol to the head" in the whole business. As to the fear that the rents for the adjoining runs might bo increased the Commissioner stated that tl'» holders had the right, if they objected to the assessment, to go to arbitration. The transfer of . this block had been passed by tho board, ljut it had yet to receive the approval of the Minister of Lands.