LAW REPORTS

Dominion, Volume 4, Issue 938, 4 October 1910, Page 3

LAW REPORTS

COURT OF APPEAL. ; A VALUABLE PUBLIC ESTATE. PROVINCIAL OR NATIONAL? , Informally, the case which occupied the Court, of Appeal all day yesterday might be' called "Auckland versus . New Zealand." A valuable piece'of public estate in;;Auckland ■'city was the cause'of dispute, and the main question was.whether this land should -be-treated as an endowment of the Auckland Education Board, or an educational ■• endowment for the whole -Dominion. .'.'■ ■ -.::,..'. ;: :: The I ',Chief Justice (Sir; Robert: Stout) and Justices Williams, Edwards', Cooper, and Chapman we're on the Bench'. 1 ■ '.;':.' : - An Interesting H.istory. :■■.-The'. land in question, is' aboiit an'acre .in' extent and is situa- >d in' the heart of Auckland city: at the oorner of. Queen Street and Tiotoria Street, being bounded on-the other sides by Elliott and''Derby; .Streets. ■■ This square piece of;land.is covered with buildings, including • Messrs, Macky, ..Logan, and. Co'.'s warehouse, "a large tmildijig; which was. ■ formerly:', the l'heatre Epyai,.and the City Chambers." Many years ago the building" of■ the. S,Ur preme Court,, the Resident' Magistrate's .'Court,','arid the,.gaol stood oil' the site.: Later', on ; it became a: market, but .five' or■'■ six...graves: 'of-men who', had been hanged ; in\the : gaol yard ; and .buried there... were'still, pointed'out, to/visitors.' The; Auckland Provincial ..Government: bought :the.land.from the general 'Government/in the,-. year . 1864',' for - the sum.."' of. ,£25,000,; ,Tho-Public ; Buildings Act,;passed by,' the Auckland Provincial; Council in 1875 a'u-: thorised; the raising- of' a..loan: of '.£50,000' by debentures charged oh this land, but the amount was reduced to >E25,000 by the. Auckland. Buildings Act, passed .in the following: year 'by the General Assembly. It.was directed by the latter'. Statute: that .the Auckland Board of Education should ; receive £3000 of this money: andjthat the .remainder should be used for. erecting ad-; ditions to thevAucklarid Provincial. Hpspital.:: The- Auckland Hospital- Reserves Act, 1883,-vested- the- endowment! ; in.the 'Public,,.Trustee,':and -authorised t him to grant leases' of: land and to' pay J interest .- and sinking fund out of...the income. , !-, A clause in the' Special Powers and Contracts 'Act; ; 1886,' authorised the 1 ;- , Publi- Trustee'to • pay:, the - surplus income,- remaining af-. ;ter' providing, v- for ■"■payment, of . interest. '.and- sinking 'fu'nd, :i to ■ the Auckland■. Hospital . and■ the' money has ;,been/ paid ..accordingly, : In June' of this, year 'the..loan moneys;raised : in ,1876;wefe.nn-:-ally j paid:, off,'and ..the. Auckland tiorii: Board; ; thereupon, claimed., frpin.'-tfie". iP.ublic/'Triistee -the benefit of .''theVwhple ■endowment.;'. The'; Public TrusteeVrepliedthat the.. legal position';w6u!d. have, to be. 'investigated, ',:.The:board then.'applied.-to :.the:Supreme; Court'for a declaratory or-'. •de'r-jdetermining:';.tlie.'.. : question of. wKat. ;'-rjght,:rtitled , :or. /interest, .the, boa'^d/ has' ; to. the .income: from the laud!: : ■■■■;'; ■';.;.,'' '.^The'case, came; before; the Supreme Court afc-Aucfcland, and was removed, to the Court.',of- Appeal.:.., /, . ' -.-,:• -; :.,.•„.■.;-■ '■"■' ; '.■;Sln : .( yesterday's, .proceedings,';. Mr.'-. J.v R.; Ee'M ;(Aucklanaj:.appeared, for. the:- Auek-' ! land Bdμcation Board] Mr. J; W. Salmbn'd '(Solicit9r.-General) , .for,.the',:Minister .of; Mr. 8.. P.: Richmond for.-theJ Auckland. Grammar - School Board i. ; and ,Mr..C. P. Skerrett, K.C.,- Xyith .him ,Mr. R.:M f yeagh (Auckland), -for the ..Auckland Hospital: and ' Aidrßoard;-.,;•';•■■ : rTho ; Solicitor-General also, appeared for. .the,; Public Trustee,' who, :;he..;intimated,' ;would , merely, leave the .case: to the Court. ;y? : ' : ;::;i'',;.. Auckland's. Xlajm. 1 : ;j..';:'; ; i:h-:.-';; '■Mrf'Eeek':'argued! that'the endowment; was'riot 'one'; that; vested by, various' statJ u'tes'in'-.the School Commissioners,-; and' '.that'.' therefore the income ; :fromVit.; could not ; be • deducted/' by the general;: Govern-. , meiit.:frbm.,the grantsiu-aid of:education basetl'cbn.: the:.'capitation';allowance, ;He contended ' that-under 'the . Abolition :;of *Pro'vinces ; Act, r :;tlie : land was. vested : in the':Cr'oTO,' and 'that it,was' not .affected. '■by' the Education Reseryes : ' Act, , :1877.. "Th'e reason why '-we* are contending that this'land'did -not ibeconie ,'anV. education reserve within' the ; meiming .'of: tberEduca-: :tion'Reser.ves'A'ct.-'isaid-counsel;'' is tnat. if it -whole- of .-the.-' moneys ;>vould go to benefit- the..colony,, and;not. "the; Auckland province'afall. , '- iV' ■ '"'V-->-i iThe-.tChiefvJ.ustic'e:: I don't, know,, that ■youican'say : that.; f '; : Aucklan2;lias ; ',a large population, .and would-get-.;its! share , ..'". • 'It: W as - further' pointed: out-:.from .the, Bench that, iinde'r the Education'- Reserves. j'Act 'the money , for ."secondary; education—' i one-fourth of -theUotal income 1 -wbuld..go to the .district,-and v the remaining, threefourths: to ."primary eduoatiori'. .;for- v New Zealand • as'a-whble. - : ;"■'■ :•';'i; ;-'•':'j ' .-'■' : ':Mf./Eced':. I contend that'this, is: a special and that the;.' Auckland- district '-• should: get the' benefit:',.'Tf • not, , Auckland .'will-.not.benefit: one:iota' from, the- •education : pbrtibnV' • :That will be deducted from'.the capitation,, and the 'general'. Government will; get- the: bener' fit": ■„ C'ounser added : that : the "endowment in- question ; .in ! that land was purchased; other educatioa reserves'were: waste lands':set'aside.' The' Auckland' Hospital •: Reserves. < Act,-. 1883;-ehowed- that the Legislature'adopted: tEe.yiew that.this land.was;outside":.the ordinary '.education: reserves. :..':That Act '.diverted the' land'from-education, to,hospital'purposes, but'pipvided.th'at':as;soon' ■as 'the hospitalVlban, ■ which was! secure* upon : it;,was'.pajd,;offj. l the- land .should again become a reserve for < educationalpurposes, held by. the'.'.Public- -..Trustee.The Special:'. Powers:; and- - Contracts :■ Act, 1886, contained : a:, clause ..authorißing. the •Public■ Trustee.'to. pay! over the.surplus moneys from '.this, endowment, to ...the' ■Auckland .Hospital-, and .Charitable .Aid Board, and this'also indiqated.: ; the Legislature did not regard.;this as -an 'or-: dinary, : feducation .Teserve.;;-:. Other. .legis- ; lation dealing .with .education; preserves; was : referred' to .'-by, counseU, in,-.enpporV;l)t ■ this"contention. ; ■'■-'■;.';: : ;"■'.■-'' ' : ::jyV; : . i-: fw ■'■: v',; Has Hawice's ißay f a ;Claim?;V'. ; x 'it" was: pointed ■■ but -.that by;- , the- Educa-; tion- 'Act; MB77i 'tner district'had :.been divided, ■ the'.countiee' of Cook and ..Wairba' being takenV-'fjpm; ; - it aid.added to;:the; Hawke's--Bay.education , ' district. ••■ : ■ '■■"■' : /■'•'..■■'■ .;■:'.'• : . ;'--;'^'' :;V . : ::. • ■Mr. Reed'.eaiid-.he' had -not.'been. aware of <:■'■-. ■"■:-■/■ > -:-',;-■■ ;•,.'. :: ; .'!/.' ." The Chief -, Justice: If- : this-.is .not .the same now under;.th'e Aucki land; Education. Board,, must:\ : ,you',not have' a., scheme'of division;" to.; have ..the ! tiust' carried out:..properly?-.-There is 'no' statutory: provision.. for. that,,' is; there? No,: your Honour.': !-; '■'■/-■■"/■■• ; Mr. ; -Justice v :.Cobperr- 1 You,- mightvhave; to" give; a. special-,.share .to ..the- HawkVs, Bay Education Board.;.'•': .■:.':'-'ii'o;^. :. : The ; Chief Justice:. And: it wonld have to be 'reserved for. the .Copt; and..Wairba -Counties. ■■■'•.''j'•-.-'. ;■■-..■ .■:-...-. :-■ ■■,-'-.:. i : -,' '.-■ ;-: : : Mr. Justice Williamsi-Srippose-thei prof, perty;.had'been, left .by a, private'person ~tp the'.Education 'Board:. 1 It would, theni be: a 'valid .charitable bequest; and-would' you'.not have".to .'come-'..to'the" Court for' a".special;schemi, because-you -could not icarry'but' the trust '.'literally;; ,'Doea 'the fact that the rland was vested; by':statute alter, the. position. ;i; do not; know-whether it'does or not; : ■■, ~■.'-...'■'.'■. •,': ■ ; -Mr.' Reed': -I: don't ;want ; to ■; appear greedy 'on behalf,. of ,the : board,, .but I submit, that the Act of' 1883 seems. to have been..referring;to.the,Education:District;:as it;'was then; ; and it;is .still- the same. , - .' ..■'■- ; ■•:•';' ■'■ '■.' ■; ■'/■"■■ .\ ■:■■ ■'. -The Case for the ■ Minister. •■„,;,.•,. • The Solicitor-General eaid'- he .'would ask the Court to. hold: "(1), That:the land is an : educational endowment;, for; the provincial district of.• Auckland; :(2) that ;it "is vested.in the■ Public'; Trustee, and that the -trust - is to be administered-by, him;- (3) -that; the- Auckland: Education Board, .has no .right to demand the; r.eceiptiof the: revenues from ■': the. land or the administration of the trust;.'(4 and:, last) that as to the mode of administer; ing the ; trust there are various possible alternatives. The first, of these alternatives is that the. Public .Trustee should administer as if the land were an. educational reserve under the Education. Reserve Act; the sepond alterriative is, that the administration may be within the discretion of the Crown through its servant, the .Public-Trustee; and Uic third and last alternative is that .by change of .circumstances the-.trust may have become so indefinite, that recourse must: be had to the Leprislatnre.to define the-trust or to this Court .to execute tho. trust "cy pres.", • '■_'■) Boundary Question Again. The.; alterations in the' boundaries, of the education, districts. came . up .again in Mr. Salm'ond's argument* ■ He cointed

out-that by the Education Act, 1877,.the Auckland Education District (which was previously co-terminous with the provincial, district) not only'lost the counties of Cook and Wairoa,. but also gained East and West Taupo from the Wellington and Taranaki districts. From these facts, ho. argued Mint-it could not have been intended that an educational endowment of the Auckland Provincial District should pass to the present Auckland Education Board. The board was not the proper body to administer such a. trust,, because it was not the heir of tho, old board of the provincial days. Such a claim was on tlio level of the claim; of Arthur Orton to ■ the Tichborne Estates. (Laughter on the bench.). A precisely similar claim ■ could be made, not-more unreasonably, by tho : Hawke's Bay Education Board. ■'Iho hearing had not concluded when the Court rose. '