THE CHEVIOT ESTATE.

Lyttelton Times, Volume LXXX, Issue 10103, 31 July 1893, Page 5

THE CHEVIOT ESTATE.

HISTORY OF THE PURCHASE NEGOTIATIONS.

A bulky State paper laid on the table of the House of Representatives the other day by the Hon John M’Kenzie, Minister for Lands, contains copies of all the correspondence that took place relative to the acquisition of the Cheviot Hills estate by the Government. As there may still be some confusion in the public mind as to the procedure adopted, the value of the estate, and the method of valuing and acquiring the property, a brief narrative compiled from the official correspondence may prove of interest. The first step in the succession that led to the important and culminating one of acquiring the estate by the Government was taken on Sept. 30, 1892, when the Trustees of the late Hon William Robinson, as owners of the Cheviot Hills estate, wrote to the Commissioner of Taxes, calling upon him to reduce his assessment, or purchase the estate at the valuation given in their return. Following upon this, Mr Crombie, Commissioner of Taxes, on Oct. 11 intimated in writing to the then Colonial Treasurer (the late Hon John Ballanoe) that the Robinson trustees had called upon him to reduce the value of the Cheviot Estate from .£304,826 to £260,220. Mr Crombie added that the improvements were valued by his Department at £54,300, and had been returned at £60,150. In conclusion, he asked that the Survey Department should be requested to report on the value of the estate. '

Next we find, on Oct. 14, Mr J. A. Brown, late. Assessor for Amuri and Cheviot, reporting to the Commissioner of Taxes that the Cheviot property comprised 20,000 acres of agricultural land fit for farming purposes, 20,000 acres suitable for turnips and English grasses, the remaining 43,630 acres being purely pastoral. The agricultural land ha considered could be cut into farms of 100 and 200 acres. .Ija conclusion he wrote:—"Cheviot Hills I consider is the finest estate in the Middle Island, not alone for pastoral purposes, but also for its agricultural value.” Under date Oct. 29 there is a copy of a telegram from Mr Marchant, stating that he and Mr P. S. Smith had inspected Cheviot Estate and found a splendid tract of agricultural land of 20,420* acres in extent worth £6 per acre; about 9000 acres worth about £4; 29,393 acres worth £2 10a; 12,450 acres worth £2 ss; 11,450 acres worth £1 10a. Total value of land, .£280,767; improvement?, £20,000. Looking at the whole of the circumstances, he recommended, in the interests of the Government, the public and the Land Tax Department, that the estate should be taken over. Mr Marchant’s full report, dated Oct. 31, amplified and in some respects qualified the telegraphic opinion, and apparently left the Government in some doubt as to whether it was advisable to acquire the estate. Accordingly we find, under date Nov. 18, Mr Crombie writing and requesting Mr Smith, assistant surveyor, to report on the property, give his opinion as to its value and the correctness of the estimate of £304,826 placed on the land and improvements. On the same date Mr Crombie wrote to Mr Marchant, stating that the Premier considered his fail report hostile to the assessment placed on the Cheviot Estate. The report was considered somewhat ambiguous, but it left the impression that Mr Marchant thought the values should be reduced. Mr Crombie therefore asked for a clear reply, stating without ambiguity whether he considered the assessment a fair one, and that the property was worth the assessed value; also whether, in all the circumstances, be would recommend the Government to purchase the property and dispose of it as might be determined by the Governor-in-Councii, or whether he would advise the Government to reduce the assessment. Replying to this on Nov. 21, Mr Marchant wrote disclaiming any feeling of hostility, protasting that ho had not suggested any reduction of the valuation as a whole, and claiming that there was no ground for the charge of ambiguity. He categorically stated “the assessment of £303,318 is fair, and the estate is worth that cum,” and added "As to a»y opinion whether the Government oh on Id purchase the estate, my report states so on page 6 as plainly as circumstances permitted.” In an explanatory telegram, dated Nov. 24, Mr Marchant stated that his iepor£ deprecated the Government taking over the the expectation of finding a cash purchaser or purchasers; but, on the other hand, he advocated the acquisition of the property on certain definite linos. Mr P. S. Smith, on Nov. 18, telegraphed from Waiau that he quite concurred in Mr Marchant’s report, bub thought his estimate of the value of the estate rather low. He (Mr Smith) considered the estate to he worth £285,000, as the upset price of the land alone. He thought it would fetch £290,000 if cut up into suitable, not too small blocks, in the open market. He had never seen " such even and easily worked country.” Mr S. Percy Smith, Surveyor-General, telegraphed back, asking him to give his valuation of the improvements, and, on Nov. 23, a reply was received stating the value of improvements to be £41,000 or a total for the whole property of £323,000. Under date Nov. 30, we next find Mr David M’Millan, telegraphing from Culverden, stating that he had cn the previous day finished his inspection of the Cheviot estate. Ha found on it 21,000 acres of good agricultural land, two-thirds of which was worth £5 an acre and onethird £7 ss; semi-agricultural land, 9000 acres at £4; total value of estate, £295,998. In his full report under same date, Mr M’Millan states the average value of the whole property to be £3 10c lOd per acre. With its officials’ opinion of the value of the property thus verified, the Government appears now to have come to the conclusion to take over the estate. On Dec. 7 Mr Crombie wrote to the Colonial Treasurer, recommending that the approval of the Governor-in-Council should be obtained aud the property purchased at the owners’ value, £260,230, On the 22ud of the same month Mr Crombie wrote to Mr H. D. Bell, who represented the trustees, intimating the determination of the department to take over the property. The Order-in-Gouncil, giving the necessary authority, was issued on Dec, 29, and on Deo. 30 official notification c£ the fact was made to the trustees.

It only now remained to make tho requisite arrangements for the Government taking over the estate and paying the purchase price, Mr Bell, on Peb. 10, fixed April 18 as the data upon which the estate would bo hardad over to the Government. Oa April 12 Mr J. B. Hey wood. Secratary to the Treasury, wrote to Mr Bell, esc'osing two cheques for £200,000 and £60,220 respectively, drawn oa the Bank cf New Zealand, ia payment for the Cheviot estate. These cheques were oouatersigatibia by Mr Henry Cotterill, solicitor, Christchurch. Tho letter proceeded:—"lt is further understood and has been so arranged between yourself (acting for the Trustees) and the Government, that at the time these cheques are countersigned the Trustees shall hand their cheque for £200,000 to tho manager of the B&nk of New Zealand at Christchurch, who will thereupon deliver to the Trustees a treasury bill of oven date for £200,000, having a currency of six months and bearing interest at the rate oc four and a half per cent per annum.” Under same date, letters convoyed instructions in the matter to Mr Cotterill and to the manager of the bank. Eeeeipk of the two cheques was acknowledged by Mr Bell ia aletferdated April 13, and the financial negotiations were closed by a letter >rooi the manager of the Bank of New Zealand at Wellington, to the Secretary to the Treasury staling:—" The public account has mis clay been credited £200.000 on account of the ea'e of Treasury Bill No. 21 to the Trustees of the Eobinaoa estate, and the balance now stands —Cr. £479,161 19a 7d.” There whs a largo number cf other communications: embraced in the correspondence, but vbceo ere, for the most p-.rt, of a formal eharatt;-.”, and the above g:v s n fair summary of tho proceedings that led up to the purchase.