OTAGO SCHOOL COMMISSIONERS.

Otago Witness, Issue 1898, 19 June 1890, Page 29

OTAGO SCHOOL COMMISSIONERS.

The monthly meeting of the Otago School Commissioners was held ou Tuesday, and a .tteuded by Meaars J. P. Mainland (chaitman), T. D'enniston,, J. Walker Bain, Jas. Green, and the .Hon. W» H. Reynolds.

A letter was received from the Secretary of tho Education department stating, in reply to a former communication from the commissioners, that the Minister of Education was aware that the Selectors Land Revaluation Act did not apply jdo the School Commissioners, but he would like to know if there was any reason why the provisions of the act should not apply in the case of cash purchasers on terms. — The Secretary stated that lull information on the subject had been sent to the. Minister in the School Commissioners' annual report, and that he had subsequently received a telegram from the Minister, who intimated that he had received the report,, and did not require any further information about the matter.

A telegram was received from the Undersecretary of the Mines department stating that notwithstanding the opinion of the commissioners' solicitors the Minister was advised that section 34 of " The Mining Act 1886 " could not be excluded in respect to bringing the endowments in Waikaia under the Mining Act without restriction, and that it was therefore proposed to bring the endownments under the said act without restriction. — The commissioners regretted tho proposed action of the Government, being of opinion thac such action would form an obstruction to settlement

A number of applications for reductions of rent were dealt with, and several transfers of leases were also approved.

The usual monthly report was received from Mr J. L. McDonald. He reported on the valuation of fencing on run 193 a, and stated that it might be a question for the commissioners to consider as to whether they would give terms to purchasers for the payment of the said valuation. — It was resolved that the valuation of fencing on run 193 a must be paid m cash at the sale, along with the first half year's rent. He forwarded an application from Mr John Qreenlees for a small piece of land between section 4, block I, Mokoreta, and the bush, and recommended that the same be granted. — The matter was referred to the secretary to ascertain what the cost of a survey of the section in question, along with other unsurveyed lands in tbe neighbourhood, would amount to.

The Chaibman reported that he had arranged with Mr Spence, manager for Dalgety and Co., for the purchase of a road line on pre-emptive right run 193 a. Accounts amounting to £208 6s 6d were passed for payment.

It was decided to take steps to open up a block of 2000 acres of land on run 301b, Te Anau, for settlement. — The matter as to what steps should be taken was left in the hands of Messrs Bain and Denniston, to report to next meeting,

The following report to the Minister of Education for the year ending December 31, LBB9, was read and approved : —

I have to report that during the year the commissioners leased 44 agricultural leases, containing 3319 a<?rei, at £578 16s 2d per annum ; 25 suburban Bec-

tlons, containing 58 acres, at ,*3B lfo>? 56 town sec- j tionß, containing 1 rood eadh. at, £89 10s ; and 16 I pastoral sections, containing 213 aores, at £92 15s lOd. Nearly the whole of the agricultural and suburban sections had been, leased previously, aud the new ' rents in most cases show an increase. During the year the Land department, on behalf of the School Commissioners, issued perpetual leases of eight sections, containing 2380 aorea, at a total annual rental of £123 5s 6d. I am pleased to report that since the appointment of the inspector, who commenced his duties at thti beginning of the year, the commissioners have been able to take a more comprehensive management of the reserves in the Southland district, and they have succeeded in effecting a settlement on several long outstanding arrears of rent. They have also been able to deal with all descriptions of applications with a better knowledge of the merits of each case. Understanding that representations have been made to the Government that while the Land Boards have dealt fairly and liberally with deferred payment selectors and perpetual lessees in reduoing the prices of their lands, the School Commissioners have given no consideration to occupants of land under their control who have ourchased their sections for cash, but, on the contrary, have acted harshly and unfairly with them in refusing to reduce the capital values of their holdings, I now tak-i this opportunity of bringing the whole faots under your notice with the view of justifying the School Commissioners' management. As stated in the oornmissionera' report of their proceedings, during the year 1888 petitions were received from the mortgagoia of education leseives originally purchased for cull from the Land department for reductions on the unpaid balances, and in response to those petitions the School Commissioners offered certain concessions to the petitiouera in the Bhape of reducOions in the rate of interest, but the concessions referred to were not considered sufficiently liberal by the majority of the petitioners, and hence their complaints against the commissioners' management. In order to explain fnllv the position of the petitioners, it is necessary to inform you as to the exact terms upon which they held their lands from the commissioners. Theoe lands were originally part of the education endowment, and were sold to petitioners tor cash by fclie Crown Lands department, on behalf of the School Commissioners, in terms of the Land Acts of 1882 and 1885. A deposit of 25 per cent, was required to be paid at the sale. Ahebilnnce being payable within one month therefrom to the Receiver of Laud Revenue, the amount of purchase money, after deduction of 5s per acre for the coat of Burvey, salo, ,4c. , being then handed over to the School Commissioners i>y that officer, and the title issuing to the purohaser from the Commissioner of Crown Lands.

In order to enable intending purchasers to pay for the lands, as well as to secure investment for the proceeds, 'ol sales, the School Commissioners, prior to the sale of the land,, advertised that they were prepared tci advance two-thirds of the purchase money on mortgage, at 6 pey cent, interest, for a term of five years. Th« vsdtitlonors elected to take advantage 'of this fififer-T and they paid to the Receiver of Land Revenue the difference between their deposit (oo e-fourth of the purchase money) which they paid at the sale and the margin of one-third required by t'be commissioners. The e'ehool Commissioners thereupon paid the other two-thirds to the receiver, and took mortgages from the purchasers to secure its repayment. It will thus be seen that the petitiouers are in quito a different position from the deferred pm merit selectors or porpetual lessees— in fact, that they are the same as ordinary borrowers. 'i-'ho cash Bectious'we interspersed with perpetual leases and deferred payment sections (also part of educy jtion endowment) which were sold by the Land deps rtment afc the same time, on behalf of the Sob 00l Commissioners. T he Land department, as in terms of " The Selector a Land Revaluation Act 1889," made large reductir >ns in the price of its deferred payment nud y erpetual lease secti* ns, and the petitioners natur.ally felt aggrieved that their neighbours should obtain their land on better terms than themselves.

The School Commissioners, as already stated, having received a petition from cash purchasers for a reduction in the price of their sections, and being ' of opinion that in the majority of cises there was a certain amount of hardship in one class of occupiers having to pay more than others, deoided to reduce the rate of interest on the mortgages to ail cash purchases from 6 to 4 per cent, from the commencement of their loans, and also renewing the loans at' the end, of five years for the additional term of seven years at the same low rate — this being quite equal to cash reductions of about one fourth of the purchase money. It was considered unwise, in view of the fact that a number of the cash purchasers had paid the whole of the purchase money on the date of sale, to make any reduction in price to those who had not completed their purchase, and the reduction of i 'terest to bucli a low rate as 4 por cent, was considered a very fair concession and relief.

Those of the petitioners whose interest had been paid regularly were entitled to receive credit for a considerable time in advance, on acoount of the 2 per cent, reduction ; but others were so far in arresr that the reduction did not nearly clear off their arrears of interest. The commissioners have reason to believe that most of the petitioners would have been satisfied -with the concession offered them had not one or two agitators induced them to take concerted action with the view of obtaining a reduotiou in the price of land. The result of thin agitation was that a petition was sent tothp School Commissioners asking for n revaluation of the land. In order to satisfy themselves as to its real value and to have the matter definitely settled tbe School Commipsioners appointed two of their number— viz , Jas. Walker Bain and James Green— a committee to personally inspect each holding. Both of these gentlemen have a practical knowledge of the value and capabilities of land, and they were accompanied by Mr J. L. M'Donald, the commissioners' agent for Southland, ' who ib also an experienced valuer. The committee ! speut nearly » week during December last in visiting the petitioners' sections, and investigating tin, circumstances of each case. The following figures give the result of the valuations of the sections over which the School Commissioners held mortgages :—

After careful consideration of this report, which wm ntosh exhaustive, the commissioners decided to offer the mortgagors a reduction on the basis of the foregoing valuation ; the existing mortgages of those who should ele.ct to take advantage of the reduction to be cancelled and new mortgage deeds to be signed for the reduced amounts, the term of the new lease being for a period of seven years, and the rate of interest 6 per cent. ; the interest to be charged to be 6 per cent, on the original mortgage amount until theexchange shall be completed. The amountof the new loans would thus lie the price of the land at the reduced rate, less payments already made. The cost of the new mortgages was fixed atthe low figure of £1 Us 6d each, exclusive of charges, such as registration, .'.a. A circular was saht to ea^h cash purchaser or mortgagor w h. se section was valued under cost price, giving him the option of determining whether be would accept a reduction of the amount of mortgage or remain under the existing arrangement, paying i per cent, interest on the original amount ; but so far only two have accepted the offer. A number of the mortgagors no doubt find on calculation that the reduction in their interest is a greater concession than the reduction of the prlnoipal, while the interest of others is bo much in arrear that we had raised to the rate of 6 per cent., that it would be impossible for them to take advantage of the reduced amount of principal by paying up interest to date. The School Commissioners have devoted a great deal of time and trouble to the consideration of the '

circumstances of oath purchasers on terms— or, more correctly speaking, mortgagors— and have been actuated throughout by a desire to assist them as much as possible. At the same time, they consider they would not be justified in reduoing the price of the land at a lower figure than what they now value it at. In dealing with this question, they have always felt a difficulty in regard to those who evade paying up their purchase money in full, and whi> may possibly make a claim for a refund on what they have paid, even though the School Commissioners have no power to make such a refund. In adopting the before-mentioned resolutions, the School Commissioners resolved thatiu their decision on the lubject of reducing the amounts owing by cash purchasers on terms should be final, and they have accordingly declined to consider any further applications for reductions. The foregoing explanation is perhaps somewhat long, but as the charge of dealing harshly with tho settlers has been brought against the School Commissioners, it Is desirable that the whole matter Bhould be fully explained to the Government. In June 1889, the commissioners having satisfiedl themselves that there was a demahd for land in th<i> district, deoided to determine the lease of run 10.fx, Wendon, containing 10,000 acres, and to Bubdivide it into farms of about. 500 acres each, suitable for mixed farming. They accordingly gave the lessee 12 months' notice, as provided for i.n, h\n le ise, and they since had the land subdivided fj|to.'ii^p{-,jo,iiß with the view of offering it for 14 yearn' lease in nine next.

Of the sum of £6075 0s" 4d shown In the statement of receipts and expenditure, as rmfc, &c. in arrcar on December 31, 1889, £1793 0s tid had been paid during the firat quarter of the present year. As 1 have explained in former reports, all the rents are debited in advance, and a number of them only fall due in December.

In connection with the sum of £1479 ll&ihown in the statement of receiptsand expenditure fia expenses of management, I might explain that £235 is 6d was paid to the Government for railway faies, rabbit destruction, Crown grant fees, stamps, &c, and that £191 3a 8d was paid for rates to county councils, boroughs, and river boards. I might also Bay that £78 7s 3d waß received during the year fw prior rents, which sum might fairly be deducted from. the cost of management.

Tho balance sheet and statement of reoeipta and, expenditure, which are certified to by the Controller and Auditor-general, was forwaided to the Education department on the 9th ult.— l have, &c, J. P. Maitland, Chairman.

Use Sunlight Soap ; recommended for bathing ohildren — [Advt ]

Advices have been received by the last English mail that Arthur Koox Moloney, formerly a miner of Otago, who proceeded to Ireland some two years ago to claim some valuable family estates, has been successful.

Name of PurChaser or Borrower. Area ft. r. p M. A. A. Maher ... 274 0 22 J. Henderson ... 276 2 28 R. Walker ... 248 1 11 J. Watt ... 219 2 23 M. Jonps ... 183 1 21 H. M Gregor ... 2 6 035 A.Roy... ... 363 2 18 a. Aitken ... 299 1 23 Barclay Bros. ... 252 2 4 James' White ... 217 3 U Bminn Cross ... 154 233 John Keovm ... 110 2 0 George Stuart ... 197 3 2 D. L. Fraaer ... 245 1 18 J. D. Hoops ... 268 228 F. Davys ... 183 027 M. Miles ... 294 2 1 F. Colitis ... 200 0 0 J. Butel ... 195 2 16 J. H. Wilson ... 234 2 8 James Blaikie ... 281 0 0 Original Price per Acre. & s. d. 2 0 0 1 10 0 3 5 0 3 5 0 2 10 0 2 10 0 1 15 0 2 0 0 4 7 3 2 7 6 2 2 6 5 2 6 2 10 0 a 0 0 1 15 0 2 0 0 1 10 0 2 10 0 3 15 0 2 0 0 1 15 0 O d D O fe n 4 - « £ a. d. 2 0 0 1 5 0 2 0 0 3 5 0 2 0 0 2 5 0 1 !0 0 1 ID 0 3 10 0 2 0 0 2 0 0 5 8 0 3 10 0 2 0 0 1 12 6 1 15 0 1 15 0 2 5 0 3 0 0 1 10 0 1 10 0