MANAWATU COUNTY VALUATIONS.

Manawatu Herald, Volume LIX, Issue 5170, 24 November 1939, Page 2

MANAWATU COUNTY VALUATIONS.

SITTING OF ASSESSAIENT COURT, A lore than the usual amount of interest is being taken in the sitting of the Assessment Court in Palmerston North at the present time to deal Avith objections lodged against land valuations in the AlanaAvatu County. This has been broughl about by the extraordinarily large number of objectors—some COO. Yesterday’s proceedings were devoted to a more or less general sur-

vey. Members of the Court arc Alessrs A. A. McLachlan (Christchurch), Avho is president, IT. E. Leighton (Wellington), Avho is Government assessor, and H. J. Duigan (Wanganui), Avho is the Alanawatu County assessor. Air H. R. Cooper (Palmerston North) is appearing for the Valuation Department ivhile Air J. Graham (Feilding) is representing the COO ratepayers Avho are objecting to the valuations. Proceedings opened with a general review of the situation by Air Graham, aa-lio claimed that the true test of value and the correct basis of A’aluation Avas the fair selling value, and it Avas the duty of the valuer to analyse not only sales made but also to consider any factor that might affect- future sales. In the main a fair productive value Avas a fair criterion of the value for (he purposes of the Act and any sales effected at a price higher than a fair productive value must he classed as special sales and form no criterion of A’alue as contemplated by the Act. Mr Graham instanced reasons for the paying of higher prices and said that as far as sales Avitli loav deposits and a large sum left on second mortgage

Avere concerned they should he considered Avitli care as in numerous cases they Avere hut a gauge as to the depth of the purchaser’s pocket. Counsel directed attention to matters which affected Antilles such as increased costs, diminished markets and increased rates, giving fig tires in support. He also directed attention to the fall in prices received for farm produce and the burden of labour • costs, increased transport charges, noxious Aveeds and stock diseases. That the position of farmers generally was anything but. satisfactory Avas borne out by the various commissions that had been set up in recent years. In the Manawatu there were various types of country. There Avas the IcAv-lyiug swamp subject to serious flooding and the heavy swamp lands of the loAA’er Manawatu, light coastal and sandy country in the centre and clay lands at the northern end. The first ivitness Avas Walter E. Barber chairman of the County Coucil, who said he had been farming for 53 years in the Foxton district and had had experience of all classes of country. As far as Aloutoa district Avas concerned, in the early days the only linn land was at the edge of the river. Tides floived over if. Avliieh shoAved much of the area Avas beloiv high- avo ter mark. Even as recently as seven years ago a tide went: over the floodgates. The first settler Avas a man named Larkivorthy, avlio started to drain but Avas so unsuccessful he had to hand the property over to the Assets Board. The result- of the draining ivas the appearance of much flax, ivhich Avas burnt and grubbed out. The area Avas then soato and the draining continued. Later Stevens, Easton and Austin took over the land and had a sub-divisional sale Avhich was a failure. Nobody wanted to buy as the country had a reputation. In 1905 ivitness bought his present piece from Stevens, Easton and Austin. The land near the road Avas firm but about 230 to 302 acres Avas in such a condition that his horse sank in the hog. Hoivever, he had got it all dry noAV but had been impeded in the breaking in of the ground by repeated floodings from the river. The settlers had rated themselves for the .construction of large- drains Avith floodgates and had also dug private drains. As the country consolidated, stumps appeared to give further Avorry and the drains had to he deepened. The country ivas very hummocky, making ploughing difficult. Then .when the grass ivas eventually established, floods (silted the paddocks, necessitating resoiving. Stop-banks Avere erected along the river and they Avere effective till other banks Avere erected higher up the river. Mr Barber detailed the cost per acre of all his Avork. John Chrystall," Avith knoAvledge of the Moutoa for 38 years —38years too long he added —said he OAvned 697 acres. He had been a member of the Moutoa Drainage Board for 20 years (14 years chairman) and considered the flooding danger Avas greater to-day because of the banking systems in other localities. Those other banks Avere on an average 21 feet higher than the Moutoa bank. It Avas nof possible to raise the Moutoa hanks sufficiently high to keep out all the floods, but they Avere of great value in keeping out the smaller floods. Farmers, hoAvevev, couldn’t crojAvith any degree of safety. The majority of Moutoa farmers had had to purchase land outside the flood area so that milking Avould not he dislocated. Some 9500 acres in the centre of the Moutoa basin avoiv entirely unsuitable for the more remunerative types of farming. Mr Chrystall drew attention to AA-hat he described as the gross over-valuation of certain Moutoa land. Thirty-tAvo ratepayers OAvned 5055 acres Avhich surrounded 5983 acres OAA’ned by one estate on three

sides, but Avhereas the unimproved valuation of the 5055 acres averaged £27 16s an acre (£37 6s capital value) the unimproved value of the 5983 acres Avas only £l2 3s (capilal value £l4 7s 6d). Such a position Avas intolerable and AA’hat the general body of ratepayers wanted was a reduction.

Frederick Charles Burgess, of Rongotea, said he had been farming and contracting in that area for live years. It Avas principally swamp country and hush. After the drains were dug one Avas able to put cattle on for a feiv months of the summer. The swamp extended from the northern end of Ivopane through Kaimatarau to Rangiotu, With the sinking of the .ground under draining heavy timber came to the surface and the drains had to be deepened. He estimated that it had taken from 20 to 25 years to get the land into proper order. Henry John Fagan, of Sanson, gave evidence regarding the upper area of the country— the country that he remembered 50 years ago as carrying scrub, fern and cabbage trees. He laid particular evidence on the cabbage trees. The land Aims heavy and wet also. The first step was to grub the flax and scrub and dig out the cabbage trees. Tivo ploughings had been necessary for the laying of a permanent pasture and if the rushes came up thickly, a third ploughing ivas necessary. In recent years there had been good results from topdressing hut it took several years to build up an increased carrying capacity. That concluded the general evidence.

The next step Aims an inquiry from Mr Cooper as to what basis the Court ivas going to act uponproductive value or sales value. Mr Graham had emphasised the productive value but the Department Avorked on the sales value.

The chairman: Surely after the ups and downs of the last few years, productivity is the better basis. Years of sad experience shoiv that a Avilling purchaser will pay anything—and there are some who Avfil pay anything again. Mr Cooper said the Department had made its valuations on sale values. If the Court ivas going to uphold production value, the ivhole system ivoulcl have to be altered.

The chairman: The Court is not going to single out production value as the only criterion but ivill AA’rite the‘figure up or down according to extra demands for land, transport facilities, proximity to markets, etc. We are not out of step AA’ith the Act by refusing to consider ivhat the willing- purchaser is Avilling to pay because the Act says nothing about it. Mr Cooper pointed out that production depended on the fanner as a farmer.

The chairman: Of course ive ivant to know about the reasonably ; efficient man. Mr Duigan said the Court not overlook sales provided they had “meat on their skeletons.” Mr Graham said he only contended that production capacity ivas a criterion and not the sole condition on ivhich a valuation should be arrii’ed at. The first individual ease called ivas. that of J. C. Fagan ivhose 114 acres (with 1918 figures in parentheses) ivere valued as folloivs: Capital value £3830 (£3380), unimproi’ed value £2BOO (£2680), improvements £IO3O (£700). Mr O. Monrad, in evidence, said his revaluation ivas £3113 capital, £IBB7 unimproved, 1246 improvements. He considered he was justified in revaluing the property below the 1918 figure in vieiv of the existing economic situation. At that stage the Court adjourned.