The Timaru Herald SATURDAY, AUGUST 7, 1909. SPECTLATION IN LEASEHOLDS.

Timaru Herald, Volume XIIC, Issue 13974, 7 August 1909, Page 4

The Timaru Herald SATURDAY, AUGUST 7, 1909. SPECTLATION IN LEASEHOLDS.

lII'- ii'-u ('ommi-'-inner of Crortit Lands lor Canterbury, .Mr I". W. Flanagan, s«Tliis iiu li'ii tl t»* try mid put a Mop to transfers ot frown leaseholds nlirrfl tiie inducement seeim to tie. not tiie necr.vs.ity of tin- lessee !mt tin- temptation of a high price offered for the goodwill " by a iv>n;|iMw purchaser. As reported elsewhere in thi« isMte. he. objected to C'roHit making ( .Town leaseholds Hie subject of .".peculation. Mr Flanagan lets but recently been anjmin! <-d < 'oiniinvuoiu'r lor Canterbury. having previously farm in Nelson. \\ here very little has iwen done under tin- system; and lite prohnhility in Unit lie lias not yet fully mastered flic conditions th.it prr-v.-iil in Soiitli f:>ntrrliiiry. where tli* instances to «(licit he referred exist; ;uif! some of Jii.s remarks indicate that, that is till* case. It is nut tlie les<er<« ol IJo.Mewiil who jire tiie (■».«•- holds the Mihjei-t of «]K'eillatton. The nppliennts for transfers took tip the html years ago. prohahly itiji tlint tiie rentttls askeil for it tn-ro low. Since then -nlviinc v -s in prices linve inaili* tin' rrjitt lower still, in proportion to the v;tlne of the products: nncl this !ij»k creiitcf! a " will " in etteh holdiitj;. It not .scent to fiirnifv to Jie Hoar'l, «ir to the State the ltt:;ml represent.*, how often ;t iejt.sehfild hitllfl,", or \vh;it price e;teh stic-ceedinK le/imit p:tvs for "pnwlwilt." >«» lone »« ea<-|j rarries out the eoii'litioti.t of the lea**. Am! to ensure thi* the f'osini cuti .satisfy itself that the propose*! trntff-I'-rec the mentis rcrjt»i<tile to enahle hint to i!o this, sifter whatever sunt he may hnve Jiyreefl lo [>ay tlt»« transferor. The term " Ki«>»l«tll " is generally ttseil in art inetirrert swnse. The leases refptire a tcmutt to a eertnin amount of " improvement*." proiKirtioiiate to the vstltie of the tiofifait'l very many of them »fo Very iniich more than the lease* require. These improvements an- the truant's property; his to sell to any transferer; the value of these jmprovements has to he taken into account Uv IkiUi seller .and buyer; the halanee of the purchase money only is proj»er!y " j:<kkluilL" Mr Flnnatjati meiitionefl X'Hfll), .iKKMI, X'-HKK). as having been paid for " «n»>«hvill." We stmj»ert that th«» Inrjxer part of each sum repnsent«*<l immediate and prosjK-elive values. As landlord, tiie State dues not stand to i«i.se much. Of course if a matt pays a hijrh price for pure jioodnill, and has to luirrow the money to do so. he piaeticaliy increases his rent, ami if he pays too much he may cripple his means for prnjterly working the land. Htit that, we understand, is a matter within the potvers of the Land Hoard to cheek. They ean inqtiire into tiie liuaiu-ial .standing; of a proposed transferee as they do in tiie ease of j;u applicant at the original hullot. To adopt the attitude that transfer applications- are to l»e looked ii|>on with suspicion impjies n belief that the ballot always secures the liest possthlo tenant —which is absurd. The State, wo believe, is well secured against loss of rent. If a tenant fails to pay, ho can be promptly ejected, and the improvements that he must make under .similar penalty are available to secitro the payment of arrears. Ami no man is t<> pay •> la rye sum lor trno goodwill, and risk tin? loss of it by nejilectiuy to make the best of his holding. Whether he intended to keep it or to dispose of his interest in it ayain, he must maintain its "goodwill " value. It would be iuterestiuß and instructive, and a valuable guide to the Land Hoard in framing general rules lor dealing with applications for transfers, if a careful examination were made of all eases in wliieli transfers have: been made in tin; past—:i few years old, til course —and a report made as lo tiie cflect of the transter.s, in regard to the character ol tby new as compared with the original tenants, and in regard In tllTMr treatment ol the. law.