SPECULATING IN LAND.

New Zealand Herald, Volume XLVI, Issue 14132, 6 August 1909, Page 6

SPECULATING IN LAND.

PROFITS IN CROWN LEASES. SELLING THE GOODWILL. DEFEATING THE BALLOT. [BY TEUEGIUrH.— ASSOCIATION.] Chbistchttrch, Thursday. A bbcxtssiojt, initiated by the Commissioner for Crown Lands (Mr. F. W. Flanagan) took place at a meeting of the Canterbury Land Board to-day, with regard to speculation in Crown leaseholds. The Commissioner drew the attention of the Board to the fact that there were no fewer than five different applications from

Crown tenants on the Roseville settlement to transfer their holdings. Of course, the Board had no desire to stop transfers of land, but he thought there was a duty imposed on the Board to inquire into transfers before they went through. There was just as great facility for land speculations in the transfer of Crown leaseholds, as there was in the case of private property, and the Board, knowing that the duty devolved on it, should subject every case to close scrutiny before a transfer took place. This duty was demanded of the Board because on it the successful administration of Crown estates largely depended. The unimproved value of some of these properties was raised from 50 to 60 per cent. Settlers, as far as he was aware, were quite satisfied with their holdings, which were payable, but when they could obtain considerations of about £100 to sell out they could not overcome the temptation to do so. There were two important effects in these transactions. One was that the man. coming in had to pay a far higher rental than the one going out, and if he was not in a good financial position the Board would have some trouble in recovering rents. It was only human nature that if a man got from £300 to £10,000 for a goodwill he would sell out, but it had come to his knowledge that some men who had sold out were travelling round the country swelling the chorus of those who told the Government that there was no land to acquire. The ballot system had been designed for the purpose of relieving the man of small means from having to go to public auction to acquire his land, and thus put him on property the. rental of which would be fixed at a fair value. The operation of transfer was to enable a man to sell out at a very high consideration, and thereby defeat the very object which was in view when the Government decided on the ballot system. The system was subject to hostile criticism at present which would be justified if a man could in five or six years sell! out at a high figure, especially as he was. in no sense entitled to that goodwill. The lessee obtained the land by ballot for the purpose of providing himself and his family with a homestead. He (the speaker) did not know what idea the Board had on the matter, but the conclusion he had come to was that the Board would require to be very watchful—and more watch:lul now that good land was getting scarce—in seeing that every transfer could be justified by the facts and circumstances of the case. * The Board should discourage Crowii lessees from making their Crown leaseholds the subject of speculation. That Was the cause of unrest in South Canterbury at the present time.

Mr. J. Qiwion said that he agreed very largely with what the Commissioner had said, said the point raised was worthy of serious attention.; The Board required to act carefully in each case, and ascertain the reason for transfers. He quite agreed with the Commissioner in regard to speculation, which soemed to be a growing thing. Men were' taking" up Crown sections and holding .them with the distinct view of selling Again. If there was good reason for a li«see. ; wanting to sell, the Board would be right in" giving him the oppor-

tunity,, but if it',was- a case of speculation it wat right against the spirit of the Act.

Mr J Ssaley thought that the lessee who aid < lit for speculative purposes should be rohibited from' taking part in a ballot gain. - - ■•

This Commissioner said that he was already prohibited for 12 months. Mr. Sealey: That; is not long enough. He should be debarred for five years at least from going into competition against men uho have never held kind; he has had land and has sold at a profit. 'The Commissioner said that another thing the Board wanted to exercise care in dealing with transfers was the tendency towards the aggregation of estates. He did not think that the Board should agree, except under exceptional circumstances, to allow a man with a family of three or four children to go out and another man to come in, besides holding a section alongside the ono subject to the transfer. The settlements were cut up into holdings of such a size that a man and bis family could make a living on. One tendency was towards aggregation, and it sometimes took place in spite of the Board. Mr. Gibson said that some settlements had been cut up into sections which were not large enough for a man to make a living on. The Board would have to use its discretion. The Commissioner: Every case should be taken on its merits. Those who have a tendency towards speculation will now see that they are not going to get any consideration from the Board. I recommend that these five applications be held over till next meeting, and in the meantime I shall have searching inquiries made. The applications were accordingly held over.