Cheap Homes For the People.

Taranaki Daily News, Volume XLVII, Issue 786, 31 March 1905, Page 2

Cheap Homes For the People.

SMALL SUBURBAN AREAS. <li< Fit AN K W. WATTS' SCHEME. FAVOURABLY RECEIVED BY GOVERNMENT. Plio problem oi sub-dividing la»d IUO smull suburban blocks and 1 roviding liomcß for the people on si sy terms, has been frej'i.uently dismissed, but, no addipiate proposals | being forthcoming the question has been no nearer solution. It has remained lor a local resident, Mr I'l'imk VV>. Watts, to formulate a practical scheme, which has been highly commended by members of l'arlinnient, pronvinont buslno«-s men, and representatives of all classes of the community, while Ihe I'remier and Sir Joseph Ward agree that th re are great possibilities ahead. So im"prcs»»a lias Mr Seddon been with the details of the scheme that he indicates that it will reCoive 'lie attention of tho Government, and that without doubt it will be worked jut in some form.

The scheme, which is now before 'he Government, is of a character that must appeal to one and all alike ns being the most generous, liberal, and enticing that has ever been suggested.. It is in the direction of assisting people to take up land in smaller areas as homestead blocks, at the same time providing means for building and oilier ima system of insuring the tenant's lift for a term, and also accepting the risk for accident and sicEness. together with fire insurance on the house and furniture. D't proposes that thfc holder shall have only one payment to make, providing for all these benefits, and that after a term of years his payments as rents will have purchased tho freehold of tho property, and provided him with a pension of from £35 to £65 per annum.

Mr Watts points out the exceptional opportunities the Government has of acquiring suitable areas, und making available Crown lands, and, as an insurance agent, also demonstrates how the insurance can be made a highly remunerative addition to the business of the Government Fire Insurance Office. He sets out his scheme as follows :

A siqh'emc for the purpose of settling land in simall areas ; providing homes for working people on the most liberal terms in connection with as follows

The Government of New Zealand at the present time arc the owners of many valuable properties bought on various occasions for the purpose of cutting into small allotments with a view to getting the working men under the heading of homes for working people Co settle thereon ; so far tih<j plan has not proved the success it was anticipated. Without attempting to show why, it is suliicient to soy that under no circumstances whatever can a man take up land to build thereon except under the leaseho-M system, a system repugnant to a large section of the general public. A man enters into possession of a house, say, of five rooms, and built on a quarter of an acre of land; lie has a rent, of about lis per week, the rates and tajxes Is fid, with fire and life insurance 4s, brings the total up to 16s (id ji»r week, and no matter how many years he occupies the property he can never get beyond that of a Crown tenant, and should he die early in life (no matter whal the value of his estate might 'bo), leaving a wifo an<l family behind;, he is denied the peace and comfort of mind which at such a time should rightly be his, in the knowledge that his fami'Jy will he required by the Government to give up their home. A man aged 25 years, desiring to buy a house and section of land valued at £IOO, borrows from a fund this amount, repayable iu 25 years; he then insures his life for £3OO under an endowment policy maturing in 25 years, and pays a weekly, monthly, or quarterly, instalment of * . Tiiis includes principal and interest, premium on life, accident or sickness assurance, and insurance on the house and furniture.; Now the position of the man at the end of the 25 years (provided he is alive) is as follows : The insurance policy, with the engagement to purchase the house ami land within a term, have now matured. The housv and land (free from all encumberances is the man's own, and 'he can draw on the insurance fund for a considerable sum, or, by mutual arrangement, apply the capital to the purchase of an annuity of nearly £4O per annum. In the event of the decease' of the uitin during the currency of the term, then (even though only a single weekly payment has been paid) the house and land would then and there become the property off the wife or heir-at-law. The premium under the insurance policy would cease, und the insurance policy become paid up, increasing in valuta from year to year liy the addition of the 'bonuses ; it would soon become a valuaiblo aseel, but it would not have any commercial value till the full term had expired, thereby securing the further provision against the possibility of future penury,;

Now in what other way could a man, with no capital, secure to himself, wife and family such a happy and prosperous condition of u flairs, <V«d in so short a time ? The payments he has been called on to uiak'o being all under one heading, he has known from the commencement what the maximum amount would be, with a reasonable expectancy of their becoming' less from time to time,, according tol how the Government accounts pan out. The family have had a roof over thoir heads, with the insurance on the house and furtiiture, while the man's I'llc has been well insuiwl from death, sicknesst or accident. It is further provided that when a tenant is totally disabled by sickness or accident that the Government shall grant immediate relief either by a tebiate of his-payments, an advance in .cash, or by medical treatment) free of charge,, it being suggested that as these settlements become Suflici»ntly <J!»sely p olmlat< , d an (U ._ rangement of this kind would matennlly add to the numerous beneiits of the schouie. Now, take w „ lan ]iving ' in a house of cfqiual value (say £400), U nd paving lent in a term of -.■ years, on a basis of 8 per cent., he iirtnn h " ls '""d'ord oven ,i ~ IS intc, ' esl in the house unci laud will be nil.

l °. fimc ' a * u « founil possible, reductions might be made 'onlv*nftpr an «'h S pn, " ,ncnfs ' this onlj aftei throe annual payments have been made. i«y minis

Now, to provide the men rinancialprivate '"and"™ G?, WUh W'?»» s™ 8 ° of e tv kS"!? 1 injj, h .sl'l-vcty ing ° o'tc'"'' pmSe'o^ h^r h c' F* ■ * awL-? er reasons.' ° f l '' 1 " 1 ' l,ml olh - 1

\trdS ;l° UlcU, " e f 3 dissipation, ,e- ---* th « from his wife, will (.luiu undoubtedly cease to exist From, this •department wo luighL 1(l o look for a grant of monev. As also the old ago 'fund will probably fo „ ow « • a loners will be enjoying the imm • ♦ hj!« UmiC '' thiS ■ Sdll -'IK>, ,vit'h this difference, these privileges have worked for, and in n 0 way savour of charity. i, u , Ulcl . ' J whereas thp Old Ago Pension \et does not encourage thrift, this rewards.

Now to /iniah up. We wnnM havo tho tenant paying so much ix-r a»v iT' V: , übout 8s >*'' *«-* to charges! ' thte WOuH COVw 011

Iho capitation fee, the men paying , an< j U>o women £2 lite, the one and only payment during life. A gr'ant of money from the Charitable Aid Department, and also I "'* t . l ?° ow Age I'enfiion Fund ?i ,V xv ? vki "X °"t of existence both these departments, and what is nioro than probable special donalions trom outside sources " I'ho originator candidly admits the scheme may havo many defects In its crude shapa. but these are! matters that can bt adjusted when the details are discussud. The *iue»tion of finance must, of course, be the principal factor. In addition 1o VJw sohiw sf rovsuus msaUoavd tic

Walt's original idea was something on the lines of the following:—"AH men and women between the ages of twelve and forty-five shall contrite uto twenty shillings and ten shillings< These payments to bo made every three years, either on the day of the general election or on the night of the taking of the census. IPhe payments shall be contributed till the men have paid £!>, and the women £2 10s. There is no doubt that numbers will make one payment. To those I would allow a Small discount, and by this means u capital would be created at once." •There were, however, several polp- ; able Abjections to this procedure, and other proposals are now under consideration.

Suburban lands would be more especially adaptable to the scheme propounded, and Sir Watts holds the opinion that there is abundance of suitable sites "anywhere and everywhere." In cases of necessity, he believes a system of transfers could lie originated, and whtre a holder dosired to leave tho district altogether that tho Government-could with ad vantage buy up his improvements at a certain rate, and put in other applicants. His argument is that as generous assistance is alwavs forthcoming- for tho agricultural community from the Government, other clusffcs should also be assisted to make adequate provision for their old age. Such settlements could, ho considers, be cstablis'hod around at least twenty good towns', and would prove an unqualified success once the scheme was on a proper footing. Provision for different sized houses and areas, ranging from a quarter acre to an acre and a half, to suit the holders, could bo arranged. The class that at present had money to deposit with a building society would not need assistance from tbc Government in this way, but how many of tho community were ablo to plank down £IOO or £l5O to provide themselves with a home 7

A petition for presentation io the Government has already been signed by about 300 persons representative of the community in the town and district, who on the document in question express adherence to the belief that tho scheme was quite practical and likely to be availed of by all classes. Mr Watts has been in communication with the Government for some time, and Messrs Jennings and Smith, Sl.H.n.'s. are understood to take a lively interest in the (Question.

In one letter Sir Joseph Ward remarked that "tho scheme would receive the consideration of the Government.

The cheap manner In which" <he Government could erect substantial brick dwellings was also a great factor in favour o4 the State taking the matter up. The Premier, in different letters on tho subject, remarks : "Mr F. W. Watts has a scheme full of possibilities and worthy of great consideration. Sir Joseph Ward fully agrees with me that it should be put on trial at Spotswood. Wo have Hod this under consideration for tho previous three weeks, and Mr Walls has been made aware of our intentions." Tn a further communication Mr Soddon says : "The proposals made by Mr Frank Watts have been liefore us a considerable tirtie. His scheme is really good, and 1 would bb in favour of giving it a trial at Spotswood. Sir Joseph Ward writes to mo much in the same opinion, but Mr Watts contends that it could only be taken up (on actuarial figures) to be worked as a State affair with success. Wo Have boon in correspondence with Mr Watts, Mr Richard Cock. and Mr Jennings. The latter Is most emphatic. He will pilot Mr Watts' scheme through, (as Mr Wa'tts* health will not permit of his doing so. You shall be made acquainted with the various stages of tho matter, and I can promise that without doubt it will 1* worked oul in some form."

A definite announcement has not yet been received from the Government.: