Leasehold versus Freehold—A Practical Illustration.

Wanganui Herald, Volume XXXXIV, Issue 12941, 4 December 1909, Page 3

Leasehold versus Freehold— A Practical Illustration.

TO TUX EDITOR. Si r —The gravest question at present in practical politics here Mhat -hich arises in connection »ith the land oi New Zealand that remains still in the possession of the people, whether it should be sold outright, and so p^s into private pxoper, or remain, through a &ystew qt leasehold, a national e»tate. If l/ie citizen's of of Wanganui choose to look, ffliey have m the case of the Industrial Sehoo l.^tat€ • a practical illustration which «i:l help them to decide wliic-li i» more advantageous bo the country, to part with f»e. llpeh 2f «! their present property W land or to let it out on some equitable learfloW ■system. We view with pardonable pude the V anganui Collegiate School, which within living memory, has grown into*a- grtat msvitution of more than local usejuluess, and we are pleased" to think that it will soon be housed in buildings worthy of its splendid importance. These buildings will cost in the vicinity of .£35,00!), and the tact that the capable and intelligent "trustee*. of the Industrial School EataWliave seen their way clear to financing se iconsiderao.c a-n expenditure reflects credit on their past management of the estate, and suggests that they have confidence in its financial future. Now, the income of the Industrial School Estate is derived from laud let on lease, and it is reasonable to ask if, supposing the trustees had held and exercised, when the citato was first vested in them, the power to sell the land outright, what would their income be at this date?' Would there be any question to-day of erecting magnificent building* for one of the greatest scholastic institutions in the country? Would there even have been any Wanganui College?.. IhHliose early days the value of agricultural kirfd was a mere bagatelle compaied witji what it is to-day, and the Estate would have already lost all the increase in the Tjaluc of agiicultural land which has arisen* from a iv cause within that peri d, i lo^- v l '< '> 'I would Ik 1 easy to pio\ i v, it > : . ■ But the Industrial School i>-tau 1.. :<i >• benefited from the growth 1 of the town oi Wanganui. Land required for'residentin' or business purposes in a town ht once becomes many times more valuable than agricultural land, and its value incioasc-,. it may almost : be said," iv geometrical proportion to the increase in the population of the town. All this unearned increment has accrued, or will accrue, 'to the Industrial School K-tr.fe, because they have not parted with the freehold oi their land, but have dimply leaded it, gctttin£. more for their later leaser than, ior their car'iei ones, and thus gradually and emit iuiuiliy improving their h'naii'cial position. Tl ' unearned increment in ]:\nd values will eventually make them a wu-lthy corporation. With the national estate -exactly tie same result would follow. In de.ilipo- with this question ol iieehold versus lea^i-h01.3 it ought never i<> be forgo' toil Hut -\<>w Zealand is .still a new country, "H pable of almost unlimited expansion in wealth ay.d population. It is theielure a country ii: Which there mu-t lie tnoimous incioment-. in loud values a-~ eompi-ivd with those at present prevailing. Tiie lval question at issue i.s, who is to obtain the benefit ot the incerased value? Is it to go to the people, or is it to be bestowed fortuitously on a favoured few? Why, indeed, one" might well ask, should New Zealand, the possessor of an ctnie of vast potential value, jiart v ith that t state at it-, pi^c-.| H<»m!nal value- In selling in-, biithn<;]it for a mes-, of pott; g?. h-au at le.K "j'jtlhed an urgent appetite,. \t the coiuffj-'V to part with the lemanftleiv oi ift Ij^ci the people havr a right to.be ii'iowßo.l v. hat clamant ncccs-.ity has given use to -o nnprovident a policy. It i- an insult to oui common intelligence to suppose tli.it tho people of Xow Zealand can be hoodwinked, into believing that it is wi-,c, provident, or statesmanlike to part with ii><-alcuinbk' potential g.iin miles-, at the dictate oi dire necessity.— l am, etc, LEASEHOLDER.