MORTGAGE RELIEF

New Zealand Herald, Volume LXXV, Issue 23222, 16 December 1938, Page 14

MORTGAGE RELIEF

RURAL COMMISSIONS COMPLETION OF WORK TOTAL OF 940 ORDERS AUCKLAND DISTRICT CASES The two rural adjustment commissions which have been working in tin* city under the Mortgagors and Lessees' Rehabilitation Act, 1935. have now completed their public sittings and are going into recess. The No. 1 commission, comprising Messrs. M. Aldrcd (chairman), J. S. Montgomcrie and H. M. Eraser, has yet to make some orders 011 which evidence has been heard, but will finish these within a few days. Tho work of the No. 2 commission, which consists of Messrs. E. IT. Burton (chairman') and IT. E. Mellsop, has dccu practically completed. Three city adjustment commissions finished their public sittings by the end of November. A certain amount of work has had to be done since then, and to-day they are vacating their offices in High Street. The three city commissions made a total of about 3150 orders under the legislation. A Heavy Task When tho No. 1 rural adjustment commission opened its sittings in January, 1937, it was faced with .a total of 3497 applications for relief, affecting farm properties. The necessity for making inspections of many farms affected retarded the work, and in July, 1938, it was given assistance by tho creation of the No. 2 commission. The two commissions liavo made 940 orders, No. 1 commission being responsible for 662, and No. 2 commission for 278. Tho balance of 2557 applications were either withdrawn or settled without tho necessity for tho commissions to make orders. Discussing the operations of the commissions, the secretary, Mr. C. Butcher, said tho powers given by the legislation had been of the utmost value. From the viewpoint of the mortgagee, the chief complaint, was that alter January 1, 1911, a mortgagor whose mortgage or interest had been reduced was entitled to sell his property and take advantage of any profit. In the event of a sale before that time, tho transaction would come before the Court of Review, which could allocate such part of the equity as it deemed fit to the mortgagee against the amount of any reduction that had been made by tho commission. Varying Ability of Farmers In making reductions, the commission assessed a farm property at what it considered to be the true productive value at the time. The sale value was a very different thing, and it might be ascertained to be in practical application well beyond the amount fixed by a commission as the productive value. The legislation recognised the fairness of making some recompense to the mortgagee or lessor within the period mentioned if a sale value was found to be in excess of the productive value. It might be argued that, if the principle were fair, the period fixed by the legislation within which it operated was rather short. Based on the hundreds of case* dealt with by the commissions Mr. Butcher's experience was that there was a marked variation in the farming ability of many applicants. That was in it-self a great difficulty faced by the commissions. A good farmer who received the active co-operation of his family, both in the work 011 the farm and in economies of living, might, as a result of the development and improvements effected on his property, be entitled to very much less relief, or none at all, under the legislation, than the indifferent farmer.