AUCKLAND'S PASTORAL COUNTRY,

New Zealand Herald, Volume XXXIX, Issue 12003, 27 June 1902, Page 7

AUCKLAND'S PASTORAL COUNTRY,

WAIKATO ESTATES. THE ASSETS REALISATION BOARD'S POLICY. No. VIII. , [BT OUR SPECIAL REPORTER.] The great question affecting the whole future of the Waikato district, and, therefore, the Auckland province, is the action or inaction of the Bank of New Zealand Assets Realisation Board. This Board Las under its control vast areas of land in the North Island, the bulk of which is in the Waikato. It is keeping this land in large blocks, using as little labour as possible, and is earning a very fair rate of interest on the capital value. It is keeping this land practically locked up from settlement, and as the ruling heads of the Board reside in Wellington it is governed almost entirely without regard for the real interests of Auckland. The Assets Realisation Board was formed seven years ago for the distinct purpose of realising, as quickly as possible, (as its name signifies), the assets of the Bank of New Zealand, then transferred to it.

Nearly everyone in this country will remember that period of financial depression when the leading banking institution and its satellites, the. Estates Company and the Auckland Agricultural Company, were in financial difficulties, and the Government, in order to prevent widespread disaster, pledged itself to support the parent institution to the extent of over live million pounds, on condition that the whole system under which the bank was working was altered. Most people will remember that the main feature of the reconstruction scheme was the separation of the land assets (which the bank owned and worked) from the bank, as a purely banking institution, and the Placing of these assets under a Board specially conj structed for the purpose of realising "them. The bulk of New Zealnnders had seen the injury done to the country by the great* est of their banks owning and running landed estates farms, factories, commercial undertakings, ahd trading concerns of every kind. and the country was largely influenced to advance the five million pounds by the argument that the bank would rid 'itself quickly of these assets, which Were conflicting with private enterprise, and attend to its legitimate business. It was stated openly that the Board would be able to Ret rid of its sheep runs, its farms, and its numberless other undertakings within two years. It was confidently expected that the 'bank, freed from these encumbrances, would prosper, and that the many properties and Businesses turned over to private owners would flourish. The first part of the expectation has been abundantly realised. The bank itself has prospered, and has realised its properties and trading concerns, but the realisation of the assets in the hands of the Board is still unaccomplished, though seven years instead of two have passed. Public indignation and public pressure in the South Island compelled the- Board to get rid of many of the assets there, but public indignation and public pressure has never been used to compel the Board to sell its trist properties in the Auckland province. Under practical management the Waikato estates have been worked for years at a profit, which suggests that private ownership would be equally successful. The general manager of the Board, Mr. W. 0. Foster, in his 1901 report, says:—"lt is especially satisfactory to note that the Waiknto properties have, since 1895, provided a considerable, steadily-increasing proportion of the station profits." Why then should riot these estates be realised according to promise? Why should they be still held and managed by a Board which wa<? only instituted for the purpose of getting rid of stich estates? Since 1895 there has been a steady demand, for land in the Waikato. Since 1895 land there has steadily risen in Value, and at the present time there would be no difficulty in selling nearly every acre of land now held by the Board. Otie need have no hesitation in saying that if the Board acted for the best interests of the country, and for the Waikato, there would soon be hundreds of farmers on each big estate instead of tens of shepherds and.rouseabouts. Much of the country controlled by the Board is admirably adapted for dairy farming and stock-raising, and if Matamata, Waitoa, Okoroire, ahd the dozen other great estates were cut up and properly advertised they would attract purchasers from all parts of the world. It does not take much imagination to understand what the advent of hundreds of enterprising fanners into the Waikato would mean, and there would be such an advent if the lands were offered at a reasonable price. The members of the Assets Realisation Board are certainly in no hurry to fulfil their real business mission. They are enjoying comfortable salaries and a large amount of patronage, and these good tilings would be lost if the properties were all sold. The Board, however, was not instituted to provide offices for a few men,, excellent managers though they be. The Board is in a position to advertise its lands all over the world, and it should be doing this of its own accord. If private individuals or business firms wish to sell landed properties they make the fact as widely known as possible, and they do all in their power to a.ttract buyers. The Assets Realisation Board, though elected to do this and paid to do this, is, it seems, doing the very opposite. At any rate it is taking no steps in the direction of making its properties advantageously known. By this inactivity it is keeping vast areas of country practically closed to settlement, and it is just about time that the power to hold was takert from it. The Bank of New Zealand agreed to pay the Realisation Board £50,000 annually, and has paid this sum regularly. It has also acnreed to pay another £100.000 to provide for all ascertained deficiencies up to the present time. If, therefore, the Board has failed in its mission it would be a wise thing if the bank would force its hands, and either take over the assets and sell them quickly or put them into the hands of various business firms throughout the world to sell on a good commission. It would be interesting to see the difference between the action of a Board practically paid to hold land and the action of business firms liberally paid to sell the same land. It would Be instructive also. The only argument that the Board has in favour of its present action is that it wishes to obtain as much money as possible for the land, but whilst this argument seems good to them it is very bad for the country. In 1895 Mr. Foster the general manager of the Board, estimated that the area of land held by the Board in the North Island was 293,722 acres. Of this 187,463 acres was improved land, and carried all the stock. The value of land and the stock on it he estimated at £1,442,564. There is no doubt that this land and stock would sell easily now for a much larger average price than was ever contemplated by its most sanguine members when they first undertook their duties. It is to be hoped that an earnest appeal will be made to Parliament this year by members generally to wind up the Assets Realisation %oard, and that the necessary legislation will be passed. The Waikato must be settled. It is bad national policy to permit such a fine stretch of country to be" sparsely populated. There need be no difficulty in altering the present state of affairs. The natural advantages of the district are so great that they have onlv to be made widely known to attract settlers. If all the estates now held by the Assets Realisation Board were cut up into farms and sold there Would be such an increase of population and production as would materially affect the status of Auckland and the importance of rew Zealand.