THE SWITZERS LAND SALE.

Evening Star, Issue 3198, 21 May 1873, Page 2

THE SWITZERS LAND SALE.

The following report by Messrs Shepherd and Maitland, the commissioners appointed to inquire iuto the circumstances attending the above sale, was laid on the table of the Provincial Council on the last day of the session

Dunedin, April, 1873. Sir,—ln accordance 1 with the request contained in letters from the Provincial Secretary, that we should inquire into the circumstances connected with the sale of certain alleged auriferous land at Switzers, we have the honor to state that both at Switzers and at Dunedin we have taken all available evidence likely to throw any light upon the subject. This has been obtained from numerous witnesses at both places, from a careful personal examination of the ground, and an investigation of all records of the Waste Land Board bearing upon the matter. We have now to report as follows: The land in question is a block of fifty (501 acres originally in run No. 251b, and within the goldfields, and that William Acton app’ied to the Waste Land Board to purchase the same on 12th May, 1868, he having previously obtained the runholdor’s cqn? sent to the sale. This application came before the Board on 13th May, 1868, and appears iq the first place tq have been favorably enter* tajned by it, as the applicant was directed to deposit the amount of the oost of the survey. It does not appew that at this time there had been any official report on the land, it even • appears doubtful whether the Board knew that it was within a goldfield. On 2nd September, 1868, it appears that the Warden of the goldfield, Mr Wood, at Acton’s request, wrote to the Government asking that the survey might be proceeded with. We have not been able to obtain the letter, but the Chief Commissioner states that he gathered from it that the Warden was favorable to the sale. The survey was according proceeded with, and' Acton applied again, through Mr E.-de Carle, to purchase. This application came before the Board on the 14th October, 1868. When the report of the surveyor was read, and the map produced, which showed no gold workings within the boundary of application, but some in the immediate vicinity, the Board on this occasion deferred consideration. An application by Acton to purchase came again before the Board on 28th October, 1868, when the Board having found that the ground applied for was within a goldfield, considered at this time that it had no power to sell under such circumstances, although quite inclined otherwise to give favorable consideration to the application, Acton having made valuable improvements upon the land. Acton renewed his application on Hth November, 1868, and stated he made considerable improvements, of which a survey had been made. The Board again declined, on the ground of the application being within a goldfield. Mr Warden Wood states that whilst iq Dunedin, in October qr November, 1868, he stated, in conversation either to Mr Duncan (then a member of the Government), or to Mr Hughes (then a member of the Waste Land Board), that he should not recommend the sale of the fifty acres, as it might prove to be auriferous. We cannot find, however, that the possibly auriferous nature of the ground was ever considered by the Board. The death of Mr John Hughes has prevented us from obtaining any information from this gentleman, which might have proved of a valuable character, he having, whilst a member of the Waste Land Board, had special charge of all matters connected with the goldfields. Acton does not appear to have renewed his application after 11th November, 1868. It seems that his circumstances having become involved, he mortgaged his interest in the application, together with other properties, to R. C. Dods. These were, in March, 1869, sold by the mortgagee, and went into the hands of several different purchasers, Macdonald becoming eventually the purchaser of the surface rights and improvements on the fifty (50) acres. Macdonald, about February, 1871, sold nis interest in the fifty acres to Mr H. Bastings for the sura of L9OO, who thus at this date became possessed of all the surface interestdn the block, including an hotel, store, stable, pumps, &c., whilst at the same time he had, along with one Simon, all the waterrights running through the ground, and the immediately adjoining mining claim. This being the position of matters, it seems to have occurred to Macdonald that, having soli all his interest to Bastings—if he could obtain the freehold of the fifty acres—the value of the property would be considerably enhanced- Ana, some short time after the sale, he made a proposal to Bastings',’ asking him what sum he would give him if he) could get him the freehold. Bastings ultimately agreed to pay him the sum of L2OO in the event of his doing so. Accordingly, upon 4th May, 1871, Macdonald applied to the Waste Laqq Board to have “Section No- I, Weqdon District agreed tq bq sold to William Acton ” granted to him as transferee, * and the application was granted, subject to the tranfers being correct. It appears that Macdonald appeared personally before the Board, but, as far as we can learn, made no representation in connection with his application beyond tho statement contained in it. The Board afterwards appears to have been satisfied that the transfer of Acton’s interest toMacdonaldhad been duly made, and eventually completed the matter. M&donald immediately conveyed the land to Bastings, as had been agreed upon. Nearly three years had elapsed since Acton’s last application in connection with this land had been before the Board ; and its recollection of the manner in which that application had been dealt Mfith does not seem to have caused it to notice that Macdonald had made a misstatement in his application as to the laud having been agreed to be sold to Acton. We draw attention to Mr Thomson’s evidence on this point. No report upon the ground seems td nave been obtained up to this time, nor does the fact of its being possibly auriferous seem to t have even come under the consideration of the Board. The explanation of the grounds of the Boavd’s decisiofi itpon Macdonald’s as obtained by us from the present Chief Comj missioner, who also held this position wheqthu| application came before it, is—“ That the Board had, since the date of Acton’s application, come to a different opinion as to its iwwer or Billing laqd within a goldfield, and wflW MW

donald’s application was considered, believed that it had the power of dealing with such land under clauses 83 and 123 of the ‘ Otago Waste Lands Act, 1866.’ That, holding that opinion, and believing that Acton’s application had been declined entirely upon the grounds of the Board not having the power to sell, although otherwise favorable to the sale on the ground of the extensive improvements which Acton had put upon the land, and the general desirability of seeming settlement on the goldfields. The Board knowing of ro objection, did not hesitate, but granted Macdonald’s application. It appears as a matter of practice that the Waste Land Board does not call for reports upon applications to purchase land within a goldfield, but that it has been the practice that such reports, when required, have been obtained by the Goldfields Secretary as a matter lying within his department ; and in the event of his making no objection to such sale, the Board takes forgranted there are none. That the Chief Commissioner’s duty has been confined to directing the Board to the legality or otherwise of any matter before it, leaving the question of policy or propriety entirely to the Government, as represented at that Board, by whose recommendation it has been entirely guided. That carrying out this practice in considering Macdonalds application, no objection coming from the the Goldfields Secretary or other member of the Government, the Board, believing that none existed, and that it had legally the power to sell, sold the land. From an inspection of the ground, and from statements by Messrs Bastings and Simson, we find that since the sale of the freehold of the fifty acres they have gone to very considerable outlay in mining upon it. Mr Bastings states that ho has, up to the present time, expended a large sum—beyond the value of any gold obtained from the ground. There are indications of a lead of gold running through the ground. We come to the following conclusion That the fifty acres of land originally applied for by Acton, and eventually sold to Macdonald, are undoubtedly auriferous; that Acton’s application, after having been before the Board on several occasions, was finally refused ; that although there were, at the time of Macdonald’s application, no gold workings actually upon the ground, there had been for years, and even at the time, workings in the immediate vicinity, and in one claim from which a great deal of gold had been taken, and had been carried on close to the boundary of the fifty acres; that this being the case when the application to purchase was made, an oversight occurred and a departure from the usual practice in not calling upon the Warden for a report upon the ground. This omission seems, as far as we can discover from the practice in force withregardtosuohapplications, tohave occurred in the Goldfields Secretary’s office. That had the Warden been called upon at any time from 1868 to report, he would have reported against the sale, and the sale in consequence would in all probability not have taken place. That Macdonald misled the Board by stating in his application that the land had been • previously agreed to be sold to Acton, whereas, in fact, the sale of it had been refused. That Macdonald made the application to purchase under an arrangement with Bastings—namely, to convey , the freehold to him, if obtained, for the sum of two hundred pounds beyond thef purchase money, which was given effect to. Finally—We recommend a strict adherence to the practice of calling for a report from the Warden, or other suitable person, before dealing with any applications for the purchase of land within goldfields, as the omission of this in this case was the main cause of a block of auriferous land passing into the hands of one person, which experienced miners believe might nave been profitably worked by a considerable number of men in ordinary claims.