The Timaru Herald SATURDAY, OCTOBER 30, 1909. THE NEW LAND SCHEME.

Timaru Herald, Volume XIIC, Issue 14044, 30 October 1909, Page 4

The Timaru Herald SATURDAY, OCTOBER 30, 1909. THE NEW LAND SCHEME.

A copy of Sir Joseph Ward's "Land Settlement Finance Bill" is now before us, and a perusal of its contents —or rather of a. very small portion of them —confirms the opinion expressed in this column npon seeing a copy of the sliorfc explanatory '.'memorandum " which serves as preface-to the Bill, that opinion being that it is an utterly impracticable measure. It provides that any five or more persons may form an association to purchase an estate. Supposing a number of men are ±o be found in any neighbourhood able and willing to co-operato in such an enterprise, they have first to look about for an estate that would suit them when cut up into allotments of not loss than 50 nor more than 200 acres each. Then they must get tho

owner to agree to sell, completion of tho purchase to bo dependent upon approval of it by a third party, the Land Purchase Board, and by a fourth party, the Finance Minister. Next they must prepare a scheme for tho subdivision 'of the estate among them,' making provision for any necessary mads. Tho Bill, docs not say how disputed ehriico of sections is to Vbo settled. • The roads aro to be 66 foot wide, and tho agreement must providfl for tho payment at onco of whatever sum the Land Purchase Board may determine to be necessary to form and metal them, and build any bridges or culverts required. Tho members of the Association are to decide among themselves the proportion each should pay towards tho cost of roading—another source of dispute, as this money must bo paid down. Besides agreeing upon tho subdivision, tho' members of tho association have to agree upon ; tbe prico to be put upon tho different allotments—another probable source of dispute. The co-operators then, buying as an association, agreo'-to sell to the members the several sub^Visions: as' may havo been agreed upon. All this work has to bo done, but it is' to bo of no effect unless the agreement in ail its details is confirmed by an Ordcr-in-Council within six months, of its making; in default of this tho wliolc thing is to becomo'null, and Void, except—an important but inevitable exception—that a, part of the agreement requiring the- association to pay all costs and expenses incurred is, to remain in force. When would-bo settlers havo agreed to pull together as -.neighbours-', and co-operators, and havo found an estate that would suit them, and have entered into an agreement to purchase it, their arrangement has to be criticised on various points by the Land Purchase Board. This Board has to say whether the laiuTis fit for subdivision as; proposed; .AylieV ther the price to be paid for it is reasonable; whether the prices to bo charged to tho several members, and the proportion of the roading money ; to be charged to each, are fair and reasonable; whether the arrangement generally is satisfactory; and lastly, what sum is required for; forming and metalling now roads. Modifications of tho original agreement suggested by tho Board may bo adopted by tho association. Theft, if the Board reports favourably, ;tho Governor (i.0., tho ' Government) '' may, if ho thinks .fit,'' by Order-in-Couhcil'confirm the, agree-, - ; ment, (which embodies tthe-whole scheme. «.' By that Order the association' becomes a legally constituted body; and by tho same Order becomes liable for—" a pig in a poko"—the amount of roading money determined by l the; -report of tho Board* When,,all; this preliminary, work has been successfully. Jdone,. tho Public Trustee comes in to do tho rest of the work required, .including the • most important of all, .the raising of money to pay for tho- esfcatoby melius' of Stato guaranteed debentures: These are to bo repayable by tho'association within 21 years, and bear not more than 5 per cent, interest. The-amount to bo paid down by each member is such a sum as he thinks fit, but hot i loss than 4 per cent, of tho total price of his allotment; and each is-to pay interest on his balance owing'at a fourth per cent, higher than tin?: rate , payable on- the 'debentures. L 'What may .happen?-or what must be done after a purchase is concluded:does not concern us. now. What does 'concern us is the clumsiness of this new scheme for assisting in the closer settlement of the land,/.;• :Parties t.f men, who are to bo presumed: to Jo iguorant of legal proceedings, are .t'o bo invited ,to undertake a. task /..which'.is clearly beyond the • capacity -of' tlie j'verago settlor, in forming associations, finding suitable estates, making provisional agreements to buy, and propit;ing plans of subdivision. .It will nie.in, if anything at all comes, of it, a, new branch of business '■:.:>lpt'% skilfultliwl agents, who when they hear of.. fa'rnii for sale Vili hunt up pooplo to form.. " associations " to buy,:them. It is imaginable that thisi might for a tim.? x become a highly, remunerative appliu'i* . tion of their calling,- for' of..'course would not'bo dono^fornbtliing^tJiou!^ l the. Land Board migli-ti dotdrmino thai,' for this, that, or the other reason,/it / had been clone.' uselessly:; . /Tho.;ilhea- ( sure seems to bo ii device ; ' ; for' rising the public credit: without apparently . the public debt, as. the debt for the debentures wii'Li Ik*; attributed ti» the associations;- Thepreliminary, steps to o. purchaser are, howevory'so difficult, aitd/tho results so uncertain, ; that it. inay bo safely anticipated - that tlio Bill, :ovcii if it'Jis passed; by/the Lcgisla'turV, ; :wni--:prbvo letter.