CROWN LEASEHOLDS.

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

CROWN LEASEHOLDS.

SPECULATION IN GOODWILLS

(Cbristchurch " Press."!

A . discussion,' initiated by . the .Commissioner for Crown- Lands (.Mr F. W. Flanagan) took, place.'at the meeting of the Canterbury Laud JJoanJ oil Thursday, in regard- to speculation in Crown leaseholds. The Commissioner drew the attention of the liolird to the fact that there were no fewer than five different applications from Crown tenants on, the 'lioscwill Settlement to transfer their holdings, lie thought that this was significant., and worthy of some comment. The nature of the nnrest on the settlement \yas not* known, but he had. a* shrewu suspicion.; It- could not be that the land was of no. value, because the considerations went as high as £SOOO. Of course the Board had no desire to stop transfers ot" land, but lie thought, there was a duty 'imposed on the Board to enquire into the transfers before tliej went through. There was • just us great facility for laud speculation in the transfer of" Crown leaseholds as there was in the case of private property, and the Board, knowing that the duty devolved on it, should subject every case to close scrutiny before, a transfer took place. This'duty was demanded of the Board, because on it the successful administration ol the Crown estates largely depended. The unimproved value of some of these properties was raised from 50 to 60 per cen;. The settlers, as far as he was aware, were quito satisfied with their holdings, which were payable. But when they could obtain considerations of about £IOOO to sell out, they could not overcome the temptation to do so. There were two important effects in these transactions. One was that the man coming in had to pay a far higher rental than the man going out, and if he was not in a good financial position the Board would have somo trouble in recovering rents. It was only human nature that if a man got £3OO to £IOOO goodwill, he would sell out. , But it had come to his knowledge that "some men who had sold out were travelling round the country, swelling the chorus of those who told the Government that there was no laud to acquire. The ballot system had been designed for the purpose of relieving a man of small means from having to go to public auction to ■ acquire his land, and thus , put him on a property the rental of

which, would bo fixed at a. fair value,- Tho operation of tho transfer | was to enablo the man to sell out at a very high consideration, and thereby defeat tho very object which was iu view when tho Government decided 011 the ballot system. The system was subject tu hostile criticism at present, which would bo justified if a man could in five or six years sell out at a high figure, especially as lie was in no sense entitled to that goodwill. The lessee obtained tho laud by ballot, for tho purpose of providing himself and liis family with a homestead. Ho (the speaker) did not know what idea tho Board had on the matter, but the conclusion lie had come to was that the Board would require to be very watchful —and more watchful now that land was getting scarcein seeing that every transfer could be justified by the facts and circumstances of tl\o case. The Board should discourage Crown lessees making their. Crown leaseholds tho subject of speculation. That was the cause of the unrest in South Canterbury at the present time. Mr J. Gibson said that he agreed very largely witli what the Commissioner had said, , and the point raised was worthy of being seriously dealt with'. The Board required to act very carefully in each case and ascertain the reason for transfers. He quite agreed with the Commissioner ill regard to speculation, which seemed to be a growing thing. Men were taking up Crown sections and holding them with a distinct view of selling again. If thero was a good reason for lessees wishing to sell the Board would be perfectly right in giving them the opportunity, but if it was a case of speculation it was right against the spirit of the Act. Mr Sealy thought that a lessee who sold out for speculative purposes should bo prohibited from taking part in a ballot agaiii. The Commissioner said that he was already prohibited for twelve months. Mr Sealy: That is not long enough. He should be debarred for five years at least from going into competition against men who have never held land. He has had land, and lias sold at a. profit. ■ ; . , The Commissioner said that another thing that the Board Wanted to exercise care in in dealing with transfers was the tendency towards tlie aggregation of estates. lie did not , think that tlie Board should agree, . except under ''exceptional circumstances, to allow a man with ; a family of three or four- children to 'go out, and another hiau to come in, besides holding the section albngside the one subject to the transfer. The settlements were cut up into -holdings of suqh a size that a man and his-family could make.-'a living on one. The tendency was towards aggregation, and it sometimes took place in spite of the Board.

Mr Gibson said that some settlements had been cut up' into sections which were not large enough for a. mai} to make a living 011. The Board would ■ have to use discretion.

The Commissioner: Jsvery case should be taken .011 its merits.. If this becomes publicly known it will be a hint to those *wlio have a tendency towards speculation, that they, are not going to get any consideration from this Board. 1 recommend that these five applications be held over, till next meeting, and in the meantime I will have searching enquiries made. . • The applications wero accordingly held over.