THE Western Star AND WALLACE COUNTY GAZETTE. Established 1868. Vincit Amor Patriae. FRIDAY, JULY 1, 1898.

Western Star, Issue 2218, 1 July 1898, Page 2

THE Western Star AND WALLACE COUNTY GAZETTE. Established 1868. Vincit Amor Patriae. FRIDAY, JULY 1, 1898.

During the course of his pre sessional address the member for Invercargill (Mr J. W. Kelly) dealt with the purchase of the Otahu estate, which he condemned. In giving the history of the estate, he said : “ Sixteen years ago the property was owned and occupied by a gentleman who was now a wellknown resident in town, but who was compelled to ask the mortgages to foreclose. It was then leased to another party with a purchasing clause, but the lessee, having found put its true value, declined to exercise his right of purchase. It was afterwarks tiiken over by a private individual as an investment, with the result that when the property was sold to Mess's Batger and Menxies the unfortunate mortgagee lost nearly £3500 upon this magniliment investment. The late owners were the only ones who ever touched Otahu without coming out poorer, sadder and wiser men, and they were fortunate enough to make £3OOO out the transaction, less the money spent fay them on improvements. When the G-overnment subdivided the Merriyale estate, the land adjoining Otahu was valued at 12s Gd per acre, upon which 22s per acre had been spent laying it down in grass, while land in its natural state on the Otahu side of the fence was valued and paid for at 25s per acre, a coincidence that seemed strange indeed, when they came to consider that a few years ago the Land Department offered a block of land in Otahu at 10s per acre. Since purchasing the property the Department bad spent £220 on an outtall drain, and a large number of rabbittors had boon constantly employed on it attempting to keep down the pest which must have added considerably to its cost.. If Mr McKerrow did of his own free will recommend the purchase, for subdivision, at 25s per acre, it was the best possible argument for saying that the time had arrived when he should be relieved of his duties, as this act in itself proved that he was not possessed of that intimate knowledge of land for settlement which was absolutely necessary for one in his position as chairman <>f the Land Purchase Board.” At the conclusion of Ms address, Mr A Kinross said no doubt Mr Kelly was aware that Messrs McKerrow, Smith and Barron were appointed members of the f and Purchase Board by Act of parliament Did he think that these gentlemen would be led by anything but proper motives in recommending the purchase of the Otahu

estate I —Mr Kelly replied that the question was a very fair due. What he said about Mr McKerrow he would say about the others, that after inspecting Otahu and recommending its purchase at 25s per acre, in the interests of the State that gentleman should be relieved of his dnties, as he had not the necessary knowledge of land for his position of chairman. To this Mr Kinross said he wished to share the responsibility with the Land Purchase Board. He had gone over the land and had formed the opinion that it was worth 25s an acre, and subsequently in a letter to the Southland Times, he said “ He considered that the tenant who recently leased the homestead section had got a bargain, and had a well sheltered, picturesque, and fertile property, capable of being made a most desirable home. No doubt the operation of the graduated land tax helped to cause the sale of Otahu and other large properties. So many estates near to railways and markets have been sub-divided and sold recently as to retard settlement on Otahu, but I feel assured it will all be taken up, in spite of the effort to disparage it. Owing to its dry, warm soil rabbits were very numerous, tut farmers do not now consider them a serious trouble. Great differences of opinion exist as to land values, and the professional valuer appointed to value Otahu placed a much higher value on it than was paid for it. There are scores of practical men in Southland who are convinced that they agreed to pay too high rents, even when they had opportunities of thoroughly examining their allotments. Mr McKerrow has to examine estates in all parts of the colony in a hurried manner; even if he has committed an error of judgment as to the value of Otahu, 1 am surprised that Mr Kelly should say he should be relieved of bis duties.” From the admission here made, that “ Mr McKerrow has to examine estates in all parts of the colony in a hurried manner,” it is evident that a change in the mode of purchasing estates is necessary in the interests of the colony. The Hon J G Ward has asked for a committee of the House to be set up to enquire into the purchase of Otahu, and to save this kind of prolonged agony in the future, the Land Purchase Board should be abolished, and a Land Purchase Recommendation Board set up, who should report to Parliament. The question, then, as to the adoption or rejection of the recommendations of the Board would be discussed in the House, the same as when the Cheviot Estate was purchased, and a decision taken which would prevent the slightest suspicion that estates worthless for the purposes of close settlement were being foisted on the country.