TRUST LANDS TRUST.

Wairarapa Age, Volume XXX, Issue 8994, 3 December 1907, Page 5

TRUST LANDS TRUST.

THE BORROWING PROPOSAL.

PUBLIC MEETING. A public meeting of the Trust Lands Trust voters was held in the Town Hall, last evening, to consider the proposal of the trustees to borrow £IO,OOO for building on vacant trust sections. Mr T. B. Michell, chairman of the Trust Lands Trust, presided, and all the members of t:he trust were present, in addition to about, thirty voters. The chairman, in opening the proceedings, explained the object of the meeting, and contended that the proposal to borrow was a good one, as it was useless to go on in the old fashion and pay rates on vacant lands. He dwelt briefly on the class of buildings that it was proposed to erect, and finally moved—"That this meeing favours the proposal of the trustees to borrow £IO,OOO for building purposes." Mr J. Hessey, in seconding the motion,. considered the proposal a step in the right direction. The trust had always experienced some difficulty in letting their vacant lands situated right in the main streets, presumably because the popular demand was for the freehold, but he contended that if the buildings were erected for clients, they would be eagerly soueht after, and lands that were now unremunerative would pay handsomely. Mr T. G. Mason expressed himself as entirely opposed to the loan. It seemed to him a strange thing that business men in search of business premises had not, before this, snapped up the vacant trust sections, but undouotedly the leasehold principle was a deterring element. In this respect, he condemned the term of the trust leases (21 years), which he considered altogether too short. Mr D. Caselberg also opposed the proposal to borrow, and in doing so expressed the opinion that if the trustees raised the term of their leases to 42 years they would soon overcome the difficulty of having vacant sections on their hands. Mr W. H. Jackson also expressed himself as opposed to the proposal. He asked how was the £6OO interest on the loan going to be met. He went on to say that if there was any demand for buildings in the town there were always men who were ready to come forward and put the buildings up. The Trust had had this statement fully exemplified in recent transactions in their lands, and he considered that it would be sounder business for the trustees to let their lands for others to build on. He criticised the plans, which were exhibited at the meeting, showing the buildings the trustees proposed to erect if the loan were sanctioned, and stated that he had not seen them previously nor had they been passed by the trustees. He considered it was utterly absurd for the trustees to build for tenants without knowing the latter's needs, and he was opposed to launching out in any such wild scheme, as was proposed", especially in it* present form. ,■ He felt sure that the majority of the trust voters w«re of, the same opinion. Mr R. Krahagen, in supporting the trrust's proposals, said he was not in favour of erecting buildings promiscuously round the town, but if a suitable tenant came along, and asked the trust to build for him, they ought to be able to do so. The simply wanted funds to build when a suitable opportunity presented itself. Mr E. G. Eton said he was not strongly in favour of the loan, but still he saw some good points in the proposal. The trust wanted funds, and if the loan were carried it was not necessary that it should be spent as quickly as possible, but only when opportunities arose. If the voters gave their consent to the loan he assured them that there would be no reckless expenditure. He would not mention anything about the buildings to be erected, but there was no doubt that the trust were badly in need of suitable offices, as at present they had no accommodation or safe custody for their many valuable papers, which were liable to be destroyed by fire at any time. He would support the loan because in doing so he know that he would be helping the trustees to manage the affairs of the trust better. Mr J. M. Coradine said he saw no reason from the arguments adduced by previous speakers why the power to build should not be placed in the hands of the trust. They all knew that the trustees were business men, and were not going to build until they saw what revenue they would derive from so doing. He i considered it would be a step in the right direction to give the trustees power to build when they had applications from what they considered suitable tenants. MrH. C. Robinson said; the meeting was debating a subject that had been settled in 1905, when power which had the sanction of the voters had been given the trustees to borrow. The only question to be discussed at the present juncture was, whether the present proposal was on proper lines, and he submitted that it was not, because it was proposed to build for prospective tenants. The only scheme worthy of support was one that would assure from the moment it commenced that it would pay for itself, and not be a drag on the trust funds. In other words the trustees should only erect buildings for absolutely certain tenants. Mr Krahagen suggested that it would lessen the opposition if the trustees assured the voters that they would only build for suitable tenants. Mr Hessey said he thought that all should know by this that the trust only intended to build when they got a suitable opportunity. But in order *,o build for suitable tenants they must have money, and for that reason a loan was asked for. With regard to the plans exhibited, he only looked upon them as giving some idea of what class of building it was intended to erect. The chairman said it was not intended to erect any buildings at all unless applications were received from suitable tenants. The building that it was intended to erect first was a two-storey trust office, the top storey of which would be used for a museum. The exhibits in the museum belonged to the trust, and were now stored in the Borough Council chambers, but the borough authorities had given the trust notice to remove

them, so it was necessary to find a suitable place in which to show them. Mr Jackson said that if the plans were only to give any idea of what kind of buildings were to be erected, they were not in accordance with the clause of the Empowering Act, which distinctly stated that plans of the particular buildings and estimates of their cost must be laid before the voters before the poll to borrow was taken. The voters wanted facts, so that they could discuss the matter fairly and squarely; they did not want "bogus plans." The chairman denied that the plans were bogus: they had been properly prepared. Mr C. A. Pownall said there was rather a tendency on the part of the speakers to miss the broad principle of the matter which was that the present vacant sections of the trust were not an ornament; to the town. There did not seem to be any great demand for trust leases, and what he thought was wanted was a vigorous borrowing policy in order that the trustees might build and thereby increase their revenue. There seemed to him to be no other option. Some of the speakers seemed to lose sight of the fact that when the proposed buildings were completed the revenue of the trust would be largely increased. The town was progressive enough to warrant the erection of buildings by the trust, and he felt sure that all office accommodation provided would quickly let. Mr C. E. Daniel! said that during his absence in England the trust seemed to have been vigorously fighting out the exchange of sites question, and he was pleased to see the stand that had been taken. He would like at this stage to deny the statement that he and Mr J. A. Reriall had gone to Wellington and offered the Minister of Justice £B9O to effect the exchange of sites. • They had simply promised to exchange a suitable site with the Government to allow of a new courthouse beine built. As to the desirability of building on vacant trust lands the speaker said it was their duty to do the best they could for their children. Were thay doing that when they let the sections at a peppercorn rental to enable certain people to make 10 per cent, and 12 per cent, on their money? It was only intended to dpend £3,000 of the borrowed money per annum, and he asked the voters to place some confidence in the men they had elected to the trust. He urged them to carry the poll, aad let the trustees make the best deals they could. Referring to the plans he said they would undoubtedly have to be altered. Mr Eton explained that the reason why the trust .wanted the loan was to avoid a bank overdraft, since it was absolutely illegal in the constitution of the trust to have an overdraft. Mr A. W. Hogg, M.P., considered that if it were proposed to erect buildings there should be definite plans before the meeting.according to the terms of the Empowering Act. i The trustees ought to have seen that in supplying sketch plans they were not complying with the Act, but making :i clean attempt at evading it. He thought the question of building ought to be deferred for a while, as he was of opinion that the courthouse question ought to be settled before anything else. He had done his best to get a new courthouse for Mas terton, and it was a pity to see such a valuable site as that belonging to the trust in Hall street lying _ idle. The trustees were, in iiis opinion, standing in the way of having a fine new courthouse built in the town with the attendant probability of having regular sittings of theSapreme Court held here. Th 3 trustees ought to come out and "face the music," and he urged them not to bfe obstinate, and stop the erection of a new courthouse. This remark was received with cries of "Yes!" and "No!" and general uproar, jn the midst of which Mr Hessey rose and said "that it was just like Mr Hogg's cheek to make such a remark,"' and lie, as a trustee, objected to such a statement.. Mr Hogg replied that "he had no more cheek than Mr Hessey, and he was perfectly in order in referring to the trustees' obstinacy." Continuing, the speaker urged the trust not to let the ' exchange question stand in abeyance any longer, but to clear the course and let the Minister erect a new courthouse which was badly wanted. Mr Jackson commenced to urge on the meeting the desirability of effecting the exchange with the Government, but Mr Pownall interjected: "This is not a Trust meeting." Mr Coradine considered, with all j due respect to Mr Hogg, that the courthouse question should not have been discussed at the meeting. It was not the matter of a site that was preventing the Government from building s a new courthouse, because they had' plenty of suitable land of their own, as, for instance, the present courthouse site, dr the section on which the old County Council chambers and Technical School stood. Mr Hogg said the exchange of sites question had been sanctioned by the people, and had not been carried into effect. This was treating the question and the people rather lightly. If the trustees could not agree as to the exchange, why not take another poll on the matter? Surely the trust were not afraid of public opinion. The chairman remarked that if the Government wanted the corner site in Hall Street for a new courthouse, they would have to hurry up, because if the poll were carried there would be a trust building on the corner within three months. Mr D. K. Logan considered that the trustees had sat like logs,and had not acted in a business-like manner at all over the exchange question. Mr Daniell said it- appeared that the same people who were opposed to the building loan were prepared to mortgage the trust property for £I.OOO for a new courthouse. As private business men, he argued that they would not exchange with the Government even on level terms. The chairman was about to put the motion, when Mr Jackson asked: "Will you indemnify the trustees against the legal charges in connection with the poll?" The Chairman: "Not you at any rate, Mr Jackson." As the chairman was again about to put the motion, Mr Pownall rose and moved an amendment to the effect that no poll be taken on the building proposals until the Government's offer in connection with the exchange of sites is put before the people.

Mr Hogg seconded the amendment. The chairman put the motion, and amid cries of "Yes!" and "No!" declared it carried. , Several asked for a show of hands on the motion, hut the chairman declared the meeting adjourned.