HIGH BIDDING

New Zealand Herald, Volume 82, Issue 25181, 19 April 1945, Page 4

HIGH BIDDING

AUCTIONS OF PROPERTY TWO REMEDIES SUGGESTED Comments on the tendency toward reckless bidding for property at auction sales and suggestions for its remedy were made by the deputy-chairman of the Auckland Urban Land Sales Committee, Mr K. Aimer, when giving a reserved decision yesterday. The case was one in which the committee's consent was sought for the sale of a sevenroomed villa at 13 View Road, Mount Eden, for the sum of £2850, the figure for which ifc was knocked down at an auction sale. The property was valued for the Crown by two different valuers at* £2260 and £2380 and for the parties to the jsaie at £2320 and £2350; Vendors were the trustees in the estate of the late Mrs Elizabeth Young (Mr Martin and Mr Prime) and the purchaser was William Evans Young, (Mr Reid). Ettect on Genuine Bidders "The committee fully realises the possibility of a purchaser at a property auction sale raising his bid to an unduly reckless figure to ensure his name will appear on the purchase agreement," stated Mr Aimer. "Presumably such a bidder would rely on the committee fixing a basic value on the evidence that would, be placed before it as to the true value of the property." Such procedure was contrary to the purpose of the Land Sales Act and would react most unfairly on genuine bidders and on the property market generally, he continued. To protect the reckless bidder from the result of his action by fixing a basic value in accordance with the true value of the property would be most improper and would be likely to undermine the whole basis of property auctions. The legal profession and the auctioneers could surely devise t some adjustment that would combat the difficulty. Question of Balloting

Mr Aimer said two remedies suggested to the committee had been either that a system of tendering might be devised, whereby a purchaser would be determined by ballot from among those whose prices exceeded the basic value of a property, or that all bidders at an auction who considered they had bid up to the full value* of the property might be invited to leave their names and the amounts with the auctioneer. Then, if the basic value was fixed at a specified percentage below the amount of the highest bid, the purchaser might be determined by ballot from among those who had submitted their names and whose bids were above the basic value.

Dealing with the case before the committee, Mr Aimer said the purchaser's own evidence indicated that the apparent recklessness of his bid was due rather to his desperate urgency and possibly to misleading or misunderstood advice from an expert employed by him to value the property. The committee was not satisfied that unduly reckless bidding had been proved and had decided in this instance to treat the transaction as a bona fide sale. As agreed during the hearing, it would fix the basic value at £2350, which was nearly the average of the four valuations it had before it. PROPERTY AT REMUERA CONSENT TO SALE SOUGHT Consent to the sale of a property which included a two-storey residence, at 234 Remuera .Road, Remuera, for the sum of £6300 was sought at yesterday's sitting of the Auckland Urban Land Sales Committee. The vendor was Frank Douglas Mill (Mr M. R. Reed) and the purchasers were Samuel Barry, Arthur Tucker, Keith Rimmer, Blvth Harper and Bruce Scott (Mr Scott). The property was valued at £6440 by Mr F. Jarrett for the vendor and at £6060 by Mr G. B. Osmond for the purchaser. For the Crown, Mr W. Chilcott's valuation was £5205. It was stated the house was required by a religious body as a rest home for missionaries. The main point of argument was the obsolescence of the house, which was raised by the Crown representative, Mr J. E. Aubin. For the vendor it was stated the place contained four bathrooms and that the sum of £2OOO had j recently been spent on additions and improvements. Decision was reserved. BISCUITS FOR PIGS SURPLUS REQUIREMENTS MR . NASH'S EXPLANATION (P.A.) WELLINGTON, Wednesday Comments in the press regarding the crushing of biscuits made in New Zealand for the armed forces called for a setting out of the facts said the acting-Prime Minister, Mr Nash, today. The biscuits were made in New Zealand for the United States Joint Purchasing Board, he said, and were shipped in special containers to the Pacific for use by troops in forward areas. It was found that the biscuits were surplus to requirements owing to the fact that some of the troops had moved forward.

After lying about the islands for some time in exposed positions, the biscuits were brought back to New Zealand by the American authorities for disposal to the best advantage. The consignment was examined by the Department of Health and declared unfit for human consumption. The U.S.J.P.B. then agreed that the biscuits be disposed of as st-ock and poultry food, and they were sold through the War Assets Realisation Board. It was probable that some of th> biscuits were in good condition, but it was decided that it was better to use the lot for stock rather than sort and repack those which were in good condition. Mr Nash added that he was satisfied what had been done had made the best economic use of the biscuits. RUAPEHU AGAIN ACTIVE ISOLATED ERUPTION (0.c.) TATJPO, Wednesday Mount Ruapehu again became suddenly active today after being quiet since Sunday. At 10.30 o'clock this morning a sudden and isolated eruption of steam rose to a height of over 8000 ft, since which the mountain has shown no further signs of activity. PROPOSAL TO RESIGN MANGONUI COUNTY COUNCIL (0.C.) KAITAIA, Wednesday Unless financial assistance was forthcoming from the Government, the Mangonui County Council decided at a meeting today "it would resign in a body, provided an assurance was given by the Government that an election for a new council would immediately be held. It was. considered by members that under the present financial position it was not possible for the council to carry on without Government assistance. At the beginning of last financial year the council had a credit of £3500, and now the new year was commenced with a credit of £7OO, although there had been a drastic reduction in all works in the county during the past six months. It was considered by the council that the adverse financial position was due largely to the heavy cost of bridge repairs and replacement, as well as road maintenance. A contributing factor was the diversion of Government subsidies-to the Mangonui Hospital Board on account of the county council's decision not to collect a hospital rate for the past year. The council authorised the chairman, Mr C. J. E. Barriball, and a member, Mr W. J. Steed, to personally approach the Minister of Finance, Mr Nash, for assistance^