AMAZING LAND DEAL

Taranaki Daily News, 6 August 1929, Page 12

AMAZING LAND DEAL

NATIVES RECEIVE £5500 SPECULATOR WANTS £lBO,OOO. MAY COME BEFORE COURTS. Wellington, Aug. 4. Reported litigation in connection with a land transaction between Dr. F. J. Rayner of Auckland, and the Government is causing a good deal of comment in political circles, and questions will probably be asked in the House regarding the matter at an early date (states the Parliamentary correspondent of the Auckland Sun). The land concerned is situated in the Rotorua district, and comprises some 5400 acres, the timber rights over which are alleged to be valued for the purposes of the deal at about £lBO,OOO. Whatever the value of the timber today, the extraordinary feature of the transaction is that the areas concerned were acquired from the natives about ten ears ago or a comparatively small sum.

Members are asking how it comes about that authorities created by statute to protect the interests of the natives should allow them to part with such- valuable properties for a mere song. At any rate the present owner is alleged to have concluded an agreement with the Government under which the latter has obtained an option to purchase. The agreement provides that the sum of £35,000 should be paid for an option to purchase the timber estimated by H. Knutzen to amount to 351,000,000 feet. Notice to exercise the option to purchase was to be given by the Commissioner of State Forests on or before December 10, 1928. Should the option be exercised the price for the land was to be Is OJd a 100 superficial feet of log measurement.

The Commissioner of State Forests, on execution of the agreement, was to appoint a representative to act with Knutzen and Rayner’s representative for checking the figures on the manner and plan adopted by Knutzen. The balance of the purchase money was payable on April 21, 1929. The lands described in the agreement comprise the lands known as the Tutukau West B, having an area of 2073 acres, and the Tauri No. 7, comprising an area of 2174 acres, of which 1000 acres was subject to an agreement made between Rayner and _ a native named Rangimatini under which it was to be re-transferred to the latter after the timber had been removed. Two additional areas of 33 acres and 320 acres were also included in the transaction.

The agreement was signed by Frederick John Rayner, by his agent and solicitor, A. Hall Skelton, and K. S. Williams, for the Commissioner of State Forests.

Search of the records reveals the fact that Tauri No. 1, consisting of 320 acres 1 rood 22 perches, was purchased from the natives on November 4, 1919, for £350; Tauri No. 3c, of 3014 acres, on October 19, 1918, for £3036; Tauri No. 4, of 33 acres or. August 1, 1919, for £6O; and Tutukau West B, 2073 acres, for £2065. Total purchase money £5511. Lobby gossip alleges that payment for the option was about to be made when the late Government went out of office, but that the new Government, ..io; being satisfied with the transaction, held the matter up and is disinclined to complete.