Added Value Claimed if Land Used for Dredging

Grey River Argus, 13 April 1948, Page 2

Added Value Claimed if Land Used for Dredging

The Westland Land Sales Committee was presented with a rare problem yesterday when considering the application of Mrs Daisy Craig (Mr A. M. Jamieson) to sell a farm property at Matai, comprising 240 acres of Maori leasehold to Basil G. Wareing (Mr T. E. Coates) The price sought was £l4OO. Gold boring operation commenced in the vicinity of the farm recently. The problem facing the committee was whether the framework of the Act allowed the vendor to claim half of any profit which may result from future sale of the property for gold dredge ing purposes. . The Crown representative (Mr Wogan) asked the committee to reject the application, stating that there were two difficult clauses in it. The first was the one which declared that in the event of a sale within the next ten years, the purchaser must share equally any additional profit with the vendor, and the second, proposing that any future revenue from possible mining activities, should also be shared equally with the vendor.

Continuing, Mr Wogan said that another matter for the committee to consider was as to whether the property in question was suitable for soldier settlement. This .objection was met by the granting of Mr Jamieson’s further application to amend the application by including a brother, Phillip B. Wareing, a returned serviceman as co-purchaser. Mr Wogan mentioned also that the Wareing family held a considerable amount of property and the problem of aggregation had to be faced. APPLICANT’S CASE Mr Jamieson, supporting his client’? application, said: “The Ngahere dredge or some other big concern made representations to the vendor some time ago for land for dredging, and boring is now being conducted near the property. Under the circumstances, if some substantial sum is to be paid for the right to take gold from this property, it is reasonable to presume that the vendor, who is not over-anxious to sell the farm, should receive a share,’’ he added, stating that the clauses were not aimed at defeating to sell the property as a farm, but the position would be altered if gold were discovered there. “You know what prices were paid in the Grey Valley for land used by dredges, Mr Jamieson continued, stating that £135 an acre, paid in some cases for land worth between £3O and £5O. “If these men buy this land to-day and sell it tomorrow at a considerable profit by reason of the gold underneath, then Mrs Craig is entitled to half of that profit,” he concluded, emphasising that the land was not being bought for speculative purposes. “It raises also the question of economic usage of the land, which the committee has to investigate,” said the chairman, going on to state that ‘the committee had not yet dealt with an application to buy land for dredging purposes. “It is a grave risk which Mrs Craig would be taking to sell now without some protection. The land could be sold for a high price and Mrs Craig left lamenting,” said Mr Jamieson. Mr J. Mulcare said that when the Act was framed a case similar to the one before the committee was obviously not thought of. Mr M. Wallace (the chairman) commented that the price sought, £l4OO, did not differ widelv from the Crown valuation of £1393 and that in normal circumstances there would have been no objection to the transaction.

Purchaser’s Suggestion Harold Wareing gave evidence that he had under his control 500 acres of land but added that he had no interest financially in the property which adjoined his farm and was being brought for his sons. He said that he recognised that there might be gold in the land, and it was he who suggested to Mrs Craig that she add the two clauses in dispute. He did not think there would be any dredging in the district, for many years. After the hearing of evidence from Basil Wareing, one of the prospective buyers, the chairman remarked: “We have to decide whether this is an attempt to overcome a difficulty in the Act or if it is a genuine effort to get two boys on to the land where they can enjoy the benefits and profits from it and improve on its present use. We must, be sure that the two purchasers really intend 'to farm this land as partners. Frankly, I am at a loss at the moment as to what should be done with this application,” he concluded, announcing that the committee would reserve its decision. “I agree that it would be fair for Mrs Craig to get half of the profit from a sale to a dredge, but how can you reconcile these clauses with the terms of the Act?” OTHER APPLICATIONS Other applications dealt with were:— H. S. Dowling to H. Bailey, dwelling at Kaiata.—Approval given to the sale at £ll5O. Parkinson to West Coast Motor Bodies Ltd. After a hearing the committee indicated that it was prepared to grant the transfer at the reduced price of £760. The price sought was £B5O. However the committee left the way open for the vendor to submit an objection based on the question of special value owing to purchasers’ interest, in adjoining property. The section is one next to the purchasers’ present site in Tarapuhi Street.