THE PROPOSED OTAGO WOOLGROWERS COMPANY.

Otago Daily Times, Issue 7542, 20 April 1886, Page 4

THE PROPOSED OTAGO WOOLGROWERS COMPANY.

TO THE EDITOR. Sin,—As a good many inquiries have been made as to the probable value of the properties and stock proposed to be transferred to this company, and as I am fairly well acquainted with the value of station properties in this province, and having a general knowledge of the district in which the runs in question are situated, I desire to place my views before your readers. Besides, I have also obtained opinions from others who can be depended upon, and who have a more intimate knowledge of the country in question than I have got. If these valuations, however, are erroneous in any particular, doubtless the vendors will give your readers the benefit of their views on this matter. Item No. 1 of the proposed sale is 243 000 acres of pastoral country. Your readers know from what has already appeared in your columns what runs are comprised in this, and that they were all recently purchased at the Government upset rental without competition. It may therefore fairly be claimed that the market value of the same is nil, as no practical sheepfarmer was game to take them up even at the very low upsets.

Item No. 2.—3093 acres freehold. I understand about 2000 acres of this is situated on the Mataura River, below Gore (about 100 miles from the leasehold property), and which cannot be valued as being worth more than £3 10s per acre. The balance of the freehold (1093 acres) is composed of several detached blocks (preemptions, and such like) on the leasehold country, and, with improvements, may be put down as worth (say) £2 10s per acre Item No. 3.—25,000 sheep. It is stated that about 5000 sheep were shorn at last shearing, and this is confirmed by the sheep returns macfe to the Government; but (say) with increase, 6000 sheep. Presuming that these are an average of the district, they cannot be put down as worth more than 6s. Regarding the balance required to make up the 25,000,1 understand that the vendors intended to purchase ewes, and it is currently reported in town that they have been negotiating for several lots at Is 6d per head. We may take this as the price that would be paid for the ] 9,000.

Item No. 4.—750 head cattle. It is rather doubtful how many of these are on the run now, but I will grant that the full number is there, and they should be worth £2 10s per head. Item No. 5.—30 horses, worth £10 each". Item No. 6.—"60 miles fencing, dwellinghouses, woolshed, stock yards, sheep yards, mill, wharf, agricultural implements, carts, harness, furniture, and other loose property." The fencing on the freehold has been allowed for in the value put against the land, and the fencing on the leasehold, I understand, was on the ground, and was surrendered by the old leaseholders and.-cost the new tenants nothing. With regard to the other items, dwelling-houses, woolshed, stock yards, and sheep yards, as the leasehold country has already been proved to be not worth occupying, any improvement's of this nature existing on it are really worthless; and I further believe that the improvements are poor and in very bad repair. As for the movables, I presume the matter of £200 would be ample allowance to make for them, as I am advised that the present occupiers have been especially eaohomical in then? expenditure, since they came into possession. I had almost overlooked the wharf; but as many of your readers who have sailed up Lake Wakatipu must have observed a few rough posts and planks standing on the side of the lake near one of the homesteads, I leave them to put a value against this item.

I Now to summarise: Item No. I—Leasehold ... ... Nil 9 f 2,000 acres, at 50s £7,000 " " (. 1,093 „ 403 2,186 £9,186 of 6,ooosheep,at6s 1,800 " " ° 119,000 „ Is6d 1,425 i 3,225 „ „ 4— 750 cattle, at 50s ... 1,875 „ „ 5— 20 horses, at £10 ... 200 (■Fencing ... Nil „ „ 6-; Houses, &c. ... Nil (Moveables ... £200 200 Total ... ... ...£14,656 The outside value seems to be (say) £15,000, and 1 doubt much if it could be sold for 25 per cent, less than this to-day. It will therefore appear that the vendors seek to sell for £65,000 what is probably not worth £15,000. What a grand turnover, and how much better than selling pickles in these dull and depressed times ! — I am, &c, An Old Squatter. April 17.