THE RUN QUESTION IN OTAGO.

New Zealand Times, Volume XXXIII, Issue 5479, 18 October 1878, Page 3

THE RUN QUESTION IN OTAGO.

The following official correspondence on the subject of throwing open land for settlement, in Otago has been handed to us; we publish It in order that both aides may bo heard on a point of public interest:— . ■Wellington, October 1. Sir, —You are doubtless aware that considerable anxiety has been felt in the Provincial District of Otago in consequence of run bio. 309, belonging to Messrs Cargill and Anderson, as well as one leased to Messrs McLaren and Turnbull, having been cancelled under the provisions of the Mines Act of last year, and numerous telegrams have been forwarded to the Otago representatives setting forth that the above cancellations have caused a feeling of insecurity, and possibly a-financial crisis would follow if it. were thought that the provisions of this Act would be exercised to any great extent. In consequence of these telegrams a meeting of the Otago members was held yesterday, when it was decided that some expression of opinion should be obtained from you on the future intentions of the Government in this matter, and I am deputed to ask if you will be kind enough to explain the circumstances that have caused the Government to take advantage of the Act referred to, as It is very generally felt, and X have no doubt you are of the same mind, that the provisions of the Act were not intended to bo used except in cases of absolute DC I wislT you to distinctly understand that X do not desire to hamper the fair and legitimate action of the Government. Ibnt I think an expression of opinion from you os to the future intentions of Ministers would tend to allay the feeling that has resulted from the actions already taken. X shall feel much obliged by an early reply.— lam, Sc.. „ Henry Driver. The Hon. Hobart Stout, • Minister for Lands, Wellington. Government Buildings, Wellington, October IX, 1878, Sir,—l have the honor to acknowledge receipt of your letter of the 12th October Instant, and I am glad by it the .opportunity is afforded me of stating the policy the Government has pursued and Intends to pursue In providing for settlement in the Provincial District of Otago. ■ „ ~ . You are right in assuming that I am aware that some anxiety has been manifested by some persons and companies in Dnndln regarding the tenure of the pastoral holdings. A telegram has boon forwarded to some members of the Legislature, of which the following is a copy "Great consternation among mercantile, banking, and runholding interests hero on bearing the purpose of tho Government to cancel leases of runs, contrary to provisions of Land Act. by misuse of clauses of Mines Act. If this is done, the value of all leases Is reduced to simply the amount of compensation, and tho result can only bo disastrous, and may cause collapse of pastoral Interests, and possibly financial crisis, by foreclosing of securities over such property. Are there no men among our representatives to make a stand against so cruel and disastrous a course? (Signed) "The Australian Mortgage, Land, and ' Finance Company (Limited.) Cargill, Gibbs, and Co., agents. " The National Mortgage and Agency Company of New Zealand (Limited.) George G. Itussell, General Manager. . "John McNob, manager Bank of Australasia. ■ ; . “Colonial Bank of Now Zealand (Limited), Beale, manager. " Wright, Stephenson, and Co. "Georgo Miller, manager Bank of New South Wales, Dunedin. " William Dymoek, managorNational Bank of New Zealand (Limited.) "A. W. Morris, manager Otago and Southland Investment Cp. i In order that the position of pastoral tenants on goldfields may ho properly understood, I think It best to give a very brief historical resume of tho laws affecting runs. It Is well known that at tho suggestion of what was then known as the Otago Pastoral Association, of which, If I remember rightly,-Sir F, Dillon Bell was president, and Mr. F. D Main secretary, a proposal was made In 1885 In tho Otago Provincial Council to grant an extension of pastoral licenses to ton years beyond the terra of tbo then existing licenses. For this extension the pastoral tenants were to pay an Increased rent. The Otago Waste I-ands Act, 1808, carried this suggestion Into execution, and, under it, pastoral licensees wtro entitled to ten years beyond the term

they then held, they - paying at onco an increased rental. There were two provisions, however, that were believed to provide for settlement—First,the Superintendent had arap!4 pow«>r (see section 69) to refuse to grant the leases for the ton years' extension; and, secondly, there was a full and ample power to declare tho land open to settlement by proclaiming hundreds. For such practical cancellation of their le iges, as declaration of .hundreds implies, tho pastoral tenants were entitled to compensation for improvements, but the amount was not to exceed at the rate' of throe years’ rental, and was payable ouly if the proclamation of hundreds was made after the expiry’ of the tenure of tho original licenses. This limit of the amount three years’ rental practically meant that m no case could. the compensation exceed, say. Is. per acre, and, as an average, it would not amount to Oct. or 7cl.—that is, provided improvements had been made. This was understood to ba the law affecting runs. In the same session of the Assembly, however, in which the Otago Waste Lands Act, 1866, was passed, another statute was enacted, viz., the Goldfields Act, 1860, a statute that was not confined to Otago. By it new provisions were made, as follows ■ Ist. A pastoral lease could bo cancelled under section 10 if a goldfield was or had been discovered or proclaimed, without declaring the lands into hundreds. 2nd. Blocks of lands in any runs could be taken for settlement on the agricultural lease system. (See section 33). In both such cases it was provided that tho pastbral tenants should have full compensation, that is compensation not only for improvements, but also for goodwill. This Act waspassed, and instead of tho Provincial Government, when land was needed for settlement, withdrawing it from the goldfields, and then proclaiming It as hundreds. a misuse was made of the provisions of the Goldfields Act, 1860, and enormous sums, ranging up to Cs. per acre (more than all the rent and .interest thereon) were paid to pastoral tenants. Against this misuse of tho provisions of tho Goldfields Act, 1860, and against this breach of understanding between the pastoral tenants and tho Government, ratified by the Otago Waste Lands Act, 1866. none of tho signatories to the telegram raised their voices. The result of this “ misuse ” of the Goldfields Act, 1866, was that no settlement of any account took place in the goldfields, and men anxious to settle-‘desirous of acquiring land--had, with their money in their pockets, to leave Otago. There was also another “ cruel and disastrous course ” carried out, which was also a “ misuse” of the provisions ol the Goldfields Act, 3866, and against which only a few protested. Largo blocks of land were improperly sold ; I mention tho Moa Flat block to Mr. Clarke, the Marawhenua block to tho Hon. R. Campbell, and the large blocks to Messrs. Cargill and Anderson. The difficulty in acquiring land became greater, and the pressure of those anxious to settle could not long be resisted : henca was introduced the Hundreds Act of 1860. This gave to pastoral tenants the following advantages they had not bargained for in their leases : 1. No hundred could be proclaimed unless one-half was declared to be fit for agricultu.al purposes. 2. No hundred was to exceed 15,000 acres in extent. 3. Officers were to determine, instead of the Government, if a hundred was necessary. 4. No limit was fixed to tho amount payable for compensation for certain improvements, such as fencing, and laying down in grass. . 5. 2s. 6d. per acre was fixed as the maximum compensation fox goodwill. Against this Act the then Provincial Executive, or rather a majority of them, protested, and tho result of an agitation that was carried on in Otago was that an amendiug Act passed in 1870, and the 1860 Act was modified as follows 1. One-third instead of one-half of a hundred must be fit for agricultural purposes. 2. The hundred was not to exceed 20,000 acres, instead of 16,000 acres. 5. No compensation was paid for any improvements save fencing. 4. Tho maximum compensation, 2s. 6d- per acre for goodwill, was kept. 5. A pre-emptive right of 640 acres, at £1 per acre, was granted to pastoral tenants. ' _ These provisions were to apply to runs within goldfields, and in so far as the Act iu that respect affected the goldfields, less compensation was payable than under the Goldfields’ Act, ISG6. Of course the Government could always have taken land out of tho goldfields by a simple proclamation. The pastoral tenants always, however, resisted this course, and declared that it would bo a breach of faith to them to do so, a position which, ia my opinion, was utterly untenable. The Otago Waste Lands Act, 1872, consolidated the law existing, but made provision for opening land on deferred payments. The Land Act, 1877, was also a consolidating measure, but it created a newmode of disposing of pastoral land; that was by selling it on deferred payments. Postoial lauds may now bo sold on deferred payments: 1. If no pastoral license or lease over tho land exists. 2. Twelve months befoie tho expiry of an existing license or lease.

The provisions of the Land Act, 1877, so far as refers to the proclamations of hundreds where a pastoral lease or license exists are—(l.) That one-third of the hundred be fit for agricultural purposes, and this be certified by the Commissioner of Crown Lands and the chief surveyor; (2) compensation not exceeding 2s. 6d. per acre for determination of lease, and full compensation for fences. There is no other limit, and once the lease is cancelled the land may be sold in any manner, by deferred payment or as special value land, or, if pastoral land, by deferred payments; and. in fact, as two-thirds of a hundred may be pastoral land, it may be assumed that the Legislature intended part of it to be disposed of in this way. The Mines Act, 1877, gives power to tho Government to cancel pastoral leases without any limitation. Provision is. however, made for the same compensation as is granted by the Land Act, 1877, viz, a.maximum sum of 2s. 6d. per acre for determination of lease, and full payment for the value of all fences. The only difference, therefore, between the Land Ace, 1877, and the Mines Act, 1877, in this respect is, that before a proclamation of a hundred one-third must be certified by the Commissioner of Crown Lands and the chief surveyor as fit for agricultural purposes, whilst in the Mines Act the land may be wholly unfit for agricultural purposes, and yet the lease may bo conceited. Once tho lease is cancelled under the Mines Act, the land may be sold as tho Government may determine. I may state, however, that no lease will be cancelled under the Mines Act that has not at least one-third of agricultural land. There is therefore neither any expressed or implied prohibition that any land proclaimed a hundred, or over which a pastoral lease under the Mines Act has been cancelled, should not be sold as pastoral land on deferred payments. And after much consideration lamat a loss to understand what those who have signed the telegram mean by saying that the Government have mis-, used the provisions of the Mines Act, 1877. Do they mean to say that before any. land is opened on goldfields there mast first issue a proclamation taking the land out of goldfields, and that then a hundred must be proclaimed 7 If this is meant, it is wonderful that this method of procedure was not pointed out before the Hundreds Regulation Act, 1860, was passed. , I would desire to know how the pastoral tenants would | have liked their runs in goldfields to be proclaimed hundreds, and no compensation whatever paid them. It is not necessary to pursue such an Inquiry. I have shown, I think, that the legislation since the granting of the leases of 1860 hns been very much in favor of the pastoral tenants. Let mo now state what I think the Government should do. First, I believe it is absolutely necessary that land should bo opened for settlement in ibe interior of Otago. Secondly, I believe the lands should not bo all opened, as the construction of railways will enhance its value, and the public should reap some share of the enhanced value. Third, I also believe that nothing should be done to wantonly or improperly destroy the tenure of th# pastoral tenants. Guided by these principles, I, as Minister o! Lands, at the urgent solicitation of people anxious to settle, determined to open lands at Teviot and near Clyde, and also in some other localities in tho goldfields. I found there was a great danger to be avoided, and it was this—lf the level lands skirting tho hills were sold, the high back lands became the property of those who had purchased the low lands. In the interests of tho public estate I was convinced that the high and low should be sold together, and this could only bo done by selling part as pastoral land on deferred payments or in large blocks. Tho latter alternative could not be considered by me for one moment, and hence to save the estate of the country I determined to so arrange tho lands for sale that part should bo sold on deferred payments, part on agricultural leases, part as of special value, part en immediate payment, and part as pastoral land on deferred payments. Why this should cause anxiety 1 am at a loss to imagine. Certainly I have no desire to at once see all pastoral leases cancelled. Nor do I believe anyone desires to see the pastoral tenants injured. No one charged with the admsnlstration of waste lauds can, however, refuse to proclaim lands open for settlement where there is none open, and people are anxious to settle. Z believe the leases which the Government have proposed to cancel should have been cancelled long ago, for the demands for land have in these localities been urgent for years, and I cannot see how-the pastoral estate of the country can be injured by yielding to the reasonable requests of intending settlers. I have dealt fully with pastoral tenure to prove that in the past the Legislature and Government nave, instead of doing anything that would injure pastoral tenants, rather gone in an opposite direction. lam in hopes that this communication will allay any feelings of anxiety that may have been aroused. And I may, in conclusion, add that as no communication bos been held with the Government by any of tho signatories of the telegram, I must assume that in sending It to tho members of tho Legislature it was intended os a political manifesto. I believe that my explanations will dispel the anxiety that has been created, and will tend to show that the Government can. whilst they are making due provision for settlement, not do anything that would be “cruel and disastrous" to any class of the community.—l have., &c., Robert Stout. Henry Driver, Esq., M.H.R., Wellington.

Wellington. 10th October, 1878. cancellation of runs in Otago, I have the honor to acknowledge the receipt of your letter of 14th instant, and to-day laid it before & meeting of the Otago members, and I have much pleasure in conveying to you tho information that the following resolution was unanimously agreed to, viz.,—That this meeting thanks Mr. Stout for his very full statement of the Government’s views; and for the assurance expressed therein. On ray own part, allow mo to thank you for your prompt and frank acting in this matter, particularly as 1 thought it desirable to advise ray friends in Dunedin to decline to join In the telegram referred to because I did not anticipate the “disastrous' results” of any action likely to be taken by tho Government; and, secondly, I did not sympatliiso with the wording of telegram, or tho way it was brought under tho notice of members of have, &c-, Henry Driver. Hon. Robert Stout, Minister for Lands, Wellington. Wellington, October 17,1878. Sir,—Re cancellation of runs in Otago, I have the honor to acknowledge the receipt of your letter of the 10th October, convoying a resolution passed unanimously at a meeting of the Otago members approving of the action I have taken and intend to take In providing lands for settlement in the interior of Otago. I can assure ycu that I am glad to find that In this matter tho Otago members are so unanimous in the support of tho Government’s action.—l am, &e., Robert Stout, Minister of Lands. Homy Driver, Esq., M.XT.E;, Wellington.