Wairarapa Daily Times [Established Third of A Century.] TUESDAY, MARCH 17, 1908. A FINANCIAL ASPECT OF THE SOLWAY PROPOSAL.

Wairarapa Daily Times, Volume LVIII, Issue 9017, 17 March 1908, Page 4

Wairarapa Daily Times [Established Third of A Century.] TUESDAY, MARCH 17, 1908. A FINANCIAL ASPECT OF THE SOLWAY PROPOSAL.

There are members of the Mastertou Agricultural and Pastoral Association, men of judgment, integrity, aud loyalty, for whose opinion we have a great respect. If we cauuot go as far as some of those members iv advocating the Solway proposal, it is simply because the question cau be looked at from more than oue standpoint. To enable the questiou to be determined upon its merits, it is desirable that all aspects of it should be placed before members. In our present remarks we restrict ourselves to oue only, a financial aspect of some importance. If we take from the figures, supplied by the Association itself, the present finaucial position of its property we get the following return :— Assets. Liabilities. £ £ Land, 5100 Mortgage, 2735 Improvements, 2000 Bauk, S3O balance, 3535 £7100 £7100 This return indicates that the Association, at the preseut time, possesses a surplus of over three thousand five hundred pounds. This is certainly a very creditable capital, which it lias taken oue aud twenty years to accumulate. If we now estimate the position after Solway has beeu acquired in terms of the proposal to be submitted, we fiud that the whole of this accumulation of oue aud twenty years, the entire capital of £3535, disappears. Our estimate of the position "after the exchange of sites is effected" is as follows:— Assets. Liabilities. £. £. 70 acres, 2100 Guarantors, (5625 5 acres, 700 Improvements, 3500 Profit on 15 acres, 325 £6625 £6625 It will be noticed that we estimate the 70 acres at £30 an acre, because this is really the market value of the land, as indicated by Mr Fraser's valuation, which was not exceeded when the property recently changed hands. The 70 acres may- eventually be worth more to the Association, be-, cause it has great expectations., of future developments, but no business man would set dow T n a speculative value in estimating the assets of the Association. If a banker,' or nyp».y lender, were asked to lend money on the security of theso 70 acres, it is doubtful whether a larger amount than £20 an acre could be borrowed. We are aware that the Solway proposal appeals to the imagination of many members of the Association as a promising enterprise, but we are looking at it from a business standpoint only,:, as an investment for its present capital of three thousand five hundred pounds,

aud we fiud that the said capital would simply disappear. It is another illustration of the old sayiug that "a bird in the hand is worth two in the bush." The bird in baud, iv this instance, is a very valuable bird, and the two in the bush are exceedingly speculative. If the Association chooses to throw away all its capital to obtain a foothold on Solway. let it do so with its eyes open. Wo do not say that its geueral expectations may not bo realised—but wo do say that it is taking a big risk.