AN ALLEGED GIFT.

Dominion, Volume 6, Issue 1663, 1 February 1913, Page 6

AN ALLEGED GIFT.

MINERALS ON CROWN LEASEHOLDS.

FACTS OP THE CASE,

STATE INTERESTS SAFEGUARDED.

Under suoh headings ns "Alleged Groat Coal Gift," somo Opposition papers lately published special telegrams from Invercargill stating that tho Land Act of last session had enabled a Southland lessec-in-perpotuity to purchaso tho.freehold of his leaso, including mineral rights, and that by this means tho Stato had sold for" JMG Ids. ono hundred,and soventy-tlireo acres of land and minerals (coal), valued at from J!10,000 to .015,000.

Since tho publication of tho message, ft number of Opposition papers havo enlarged upon tho alleged failuro of tho Gov- I ornmont to protect the interests of tho Slftio. ,! Wl)on tlio mattor was referred to tho I'l'lmo Minister last evening by a Dominion representative, Mr. Massey said that Jio had referred to the Crown Law Officers' tho question as to whether thero was any foundation for tho assertions wliich up to tho present had interested, and, ho might add, amused him very much to read. For himself ho could not Bjioalt ns ft lawyer; but only as a layman with ordinary common senso. '"I'lieso leases," ho continued, referring to tho Southland loase-in-perpetuity which has givon riso to so much discussion, "aro in express terms leases of the surface rights only. There is a covenant in tho leases to that effect. I know that coal is technically not a mineral within tho moaning of tho present-Mining Act, but that is a result of a definition mado since tlieso leases wore entered into as .between tho lessees and tho Crown, and they aro in no way affected by what has happened einco thon. I am quite satisfied that tho Crown has ■ a right ,to resumo at surface value."

In further explanation, Mr. Massey that thero wero at least two ■variotics of lease in perpetuity.) Under tho tenure (that of tho much-discussed Southland lease) the mineral rights aro reserved to tho Stato. Under the other leaso in perpetuity "land" apparently included everything (minerals included) without exemption or exceptions unless tho Mining Act or the Coal Mines Act intervened. - -

Section 31' of tho Land Laws Amendment Aot of 1912 empowers tho owner of a leaso in perpetuity to purchase tho.fee-, simple "of the land comprised in tho lease.", It does not empower a tenant to puQcliaso mineral rights not covered by nis lease.' ■

'Tho Prim© Minister stated that tho ( whole position in regard to mineral rights in connection with leases would be made clear by legislation next session. , This (lie added) aid not mean that the Stato had parted with any mineral rights in the manner suggested in tho,message from Southland or that existing statutory provisions wero , insufficient to proteot tho State's interest in minoral but simply that it was desirable to assemble these statutory provisions in.a clear and readily accessible form. .

: In this connection it may be mentioned that a high, authority has expressed the opinion that tho clause in the Land Laws Amendment Act of 1907. (consolidate in the following year),, providing that a Crown lesseo may bo given the right to extract minerals from his holding in consideration. of certain payments, was .'not only unnecessary, but actually clashed with statutory provisions already existing, which fully protected the State's interest in mineral deposits. However, this and other points will soon be fully cleared up : by the Crown Law Officers. ' Ono particularly amusing incident has arisen out of tho baseless outcry abo.ut the Southland leases. V The ,"Southland' Daily News", .recently!, reported ,'that,' tho owner <if tho property in question—a Socialist—intendod 'to shoiv his disapproval of tho legislative (action which threatened to mate him- rich. Ho had Wold his property ,of 173 acres, valued (if tho minerals',are .included), atj roughly, between .£IO,OOO and to'a syndicate for ; .CSOO. Tho property, the "News" stated, contained a seam of coal with a 17ft. face. It is to ba remembered that the property was acquired by its Socialist 'purchaser for w£4G 16s. In view of tho explanation of the position furnished by the, Prime Minister, it would seem that • the syndicato will be left lamenting, and tliat the. lucky Socialist haa made a tolerably good bargain.