A QUESTION OF PRINCIPLE.
MU. L. B. WEBSTER AND Till-: .SCHOOL COMMISSIONERS. A special meeting oi' tin* School Com-miar-ionors was held yesterday morning Every member was present. Mr -las. Wade presiding. The meeting had been called I'ov Ihc purpose of considering a letter from Mr \j. B. Webster in which he alleged irregularities in connection with the recent auction sale of the Board's leases; a noiii-e of motion by Mr Simpson that the Board's fee uf ten shillings on transfers of leases hi' abolished; ami to discuss a proposal to reduce tho cunt of the Board's leases. It was decided to take the discussion of Mr "Webster's complaint ill open Board. ■Mr Webster was admitted, upon the motion of Mr Jennings, and accommodated with a seat upon a tail office stool.
Tin l secretary read tlio loiter, already published in this journal, in which Air Webster complained that in the auction oF the-Hoard's leasehold section* on Standish ilill the auctioneer had departed from the advertised order of the sale, which, by exercise of an option which lie said was illegal, prevented himself and other* from obtaining a chance to bid for the sections they desired. The buyer of a certain lot had the right to take any number of adjacent sections at the same price, ami that option was exercised by the secretary acting as agent for Air John*. lie contended that the Hoard had no power to dispose of its sections in this way, but should put up each section separately and in the order advertised. The chairman said he had an explanation to make, for the letter was the outcome of action taken by him. On the morning of the sale the secretary came to him and said, he doubted whe- . tlier it was wise to follow the advertised order of the, sale, because the sections abutting on the town were more valuable than the others. If the. remote and low-priced lots were put up first a buyer could exercise his option and tane all the other sections at a low figure. That would not' be in the interests of the Hoard, and therefore not in the best interests of the public. He (Mr Wade) had turned to the solicitor and asked if there were auything to prevent changing tlie order, and Mr Qnilliam replied oll'-hand that there was not. He had since looked into the tpiestion, and was rtill of the same opinion. So instead of starting at number one the first section put up was lot IS*, with the intention. ol working backward to Jot one. \\hat happened was just what the secretary had suggested. The buyer of the liicst lot secured his pick at the price obtained for the Jirst lot. The leases
muu wen, and me result or tne sale was that the Hoard would receive over ,L'M per year mow than they would have done under the other system, or ;C 184 011 the whole 21 yeans' lease. He considered his action had been fully justified by the results, la reply to Mr Webster, the chairman
said lie had not known of the existence of tlie letter to the secretary from Mr Johiw, asking him to buy curtain lots fur him. it would not have altered the case at all even had he known. Mr Webster said it was merely assumption to say the leases .sold better than they would have done if sold in the advertised order. Didn't it strike the chairman that his arrangement of the Kile gave undue prelercnce to one individual? The chairman answered in the negative.
-Mr Faull said the Hoard had nothing ' to do with any letter received by Air Corkill in his capacity of commission i agent. There was undoubtedly an t evil in the secretary to the CommissionI era being a land agent as well, but the - Hoard could not remedy that, t -Mi' .Major: Oh, easily. In answer to Air Webster, the secrei tary said Mr 'John's letter was addresai ed to Him privately, as a friend. Mr 3 Johns had arunged with Mr Kelsey to 3 attend the sale and bid for him, but ; either on the day of the sale or the day - betore Mr Johns came to him (Air (Jorkill) and asked him to act, Air Kelsey ! finding it impossible to attend. Mr i C'orkill asked for and obtained authority . in writing. Jt was not a commission . matter at all. lie had often acted for . country clients in a similar capacity at i the Board's sales, and Had never charged » <> r received any lee. Knowing Air Webster going in tor the same sections as Air Johns he saw the former and told him of his authority from Air Johns. At auction, he was the highest bidder, and when the section was knocked down he gave Air John's name as the purchaser. in answer to Air Corkill, Air Webster admitted having discussed with Air Clark the question of securing the .whole block and dividing it between them; but nothing came of the conversation, and he and Air Clark attended the sale each on his own account. 'ihe secretary then informed the Hoard that he had reason to believe that if the sections were put up in the order advertised, Air Clark would be a bidder at the upset lor the lirst section. There would probably be no other bidder, and he would take the block. Knowing they could expect competition for the other lots at the bitter end, he had proposed the varying of the order of oilVring the sections, and this jiad been done, ; witli excellent results--a net gain to the ; Hoard of XISI bs Ud for the full term | ol the lease. It had been quite open [ lur Webster to have outbid Air Johns. t Air Webster: Yes, if i had wanted t that piece, but 1 didn't. Ihe chairman said it appeared to him ; to resolve itself into a question of whether his action had been justilicd. Air .guilliam said he had been asked i merely as to the power of the Hoard to oiler Lhe luts out of the order of the adwutisenicnt. "I said 'no J then, and 1 say 'Jio' now. Anyone who savs otherwise knows nothing about it." Suppose a man to be selling furniture, and when the auctioneer had reached lot 20) on the printed catalogue, could he not sell lot 4U, the piano, to suit the con- \ enionce ol the buyer / -Ur Webster: Of course, but lie wonldut have an option over the sofa. .There s 110 option i u furniture sales. -\lr (juiUiiuu said lliat for years past Commissioners hud followed the same practice as had been adopted at this sale. * -Ur Corkill endorsed this, and said the option system hud been adopted under the guidance ol All- Samuel as the Hoard's solicitor. •Ur Jennings: Have ,ve varied the order ol the sale before? Air Corkill: 1 couldn't say. Air Jennings: That's the whole point wnli inc. j'll be guided bv ol -Mr Simpson \mv, the Crown Lauds Commissioner. Would you. Ajr Siniijsun, be allowed to varv the term* of sale or the order at a'sale or ballot? 11l tins case a certain section, 10 oil the list, had been put up lirst. -Mr Corkill: Only in regard to tlmt ' block.
, - Ur Simpson said the custom at the Crown lands safe «-as to take them in the older scheduhd. He always underSlood thut he euukl vary the order if he thought lit. JJr Joinings: Would that give power lor JSrowii, Jones, and Kobinson to buy up a section and snap up the rest? Mr Simpson What? An option? Uli dear, 110. Tliere's no option.' lint we don't advertise an order 0! <ale 1 Sir Jennings said he had oh.-.ined an ' opinion from one of the host i \wers ' ni the Dominion that Ihe reer- ; ' .1]- j 1 was quite ultra Tires, for there was I * not a line in any land laws providing for an option. | 1
■'! he secretary said the lion. Mr Samuel had (old him quite recently thai there was no doubt about the power of (lie Hoard to give an option. Mr Simpson was unfavorable to the giving such options. •Mr Jennings said the public had to be considered. This system otl'ered facility tor the man with the monev to sw.iinp up a whole street.
The chairman saiil it was to the I Hoard's advantage to have all the sections held as a good luxurious suburban residence by one mmi. Mi Major said tliis matter had exercised the public mind a good deal, and uo doubt Mr Webster was firmly convinced that he was in the right.' But the hoard must be allowed some discretionary power with regard to the order of sale. All the prospective purchasers M'enied to have an idea of faking more than one section, an<l lie thought the f chairman had acted entirely in the Hoards interests. The option was in every way proper, and Mr Corkill had every right, to acl as Mr John's agent. The whole question seemed tint, illere w-as a complaint that the public had no cbauce of bidding for certain sections. That was incorrect. They all had a chance, by outbidding Sir' Johns. Tf Mr Ttahy had. as Mr Webster said, ■wanted lots 11, 12 and 10, he should li:ive bought lot 10. From a commonsense standpoint the system of allowing a purchaser an option was the proper thing. A lean buying a block of seewas generally in a position to erect a good residence, whereas the Hoard might otherwise lmye to pn{ up with a lot of shanties on its reserves. Mr Webster -withdrew the sentence in the letter referring to the seoreta'ryi !
llaving acted as ilgent, accepting Jlr C uikill s assurance that he had not done it as a eoni'mission agent. ami thai, it was a regular practice with him.
Mr Jennings said he dill'ered from Air ■Major, but was in ihc niinuiilv, as usual. This Air Itabv had wanted a section Jo build on, but owing to the principle adopted by the Hoard he had been debarred from getting it. Public teeling was that a mnn had been prevented from obtaining a section by a system that gave llie advantage to'the man with tile most inonev. That was not the spirit of our land laws, and never was intended when eduction leases were thought of. •Mr Wiule: You knew of these con(lit n»ns.
Mr Jennings: T'm willing to take my Share of the blame. I'm' not shirkin'rr it. But 1 say the whole system is wrong, and it ought to be altered. Mr l«aull saw 110 "harm in tho options, for public notice of tile system had been given. There was just as mueli right to alter Ihe order of sale as for an auctioneer to put up one pen of cattle before another.
Mr Simpson agreed that the chairmans action hail been quite proper. But lie, should not have been pliced in that position. Tt was the option business that, was at the bottom of the trouble, and the more he thought about it the less lie liked it. They should do ai\ ay with it. There was not much in Mr Major's reference to the erection of •shanties," for the (dans of all buildings bad to be submitted to the Board. Mr Quilliam said Mr ?>aby had informed him he had no grievance. Ml' Webster: TJc was pretty much grieved when he was talking to' me Mr Quilliam also stated that neither he nor Mr Wade had any idea of who was going to bid at tile sale
Replying to Mr Simpson,' Mr Major sud that gentleman had lost sight' of the fact that the Board would get more from the man with the big house than fiom a number of poor town tenants. Mr Corkill said that when this block had been previously offered in three lots there, had heen no bid. That showed the present system was the better.
Mr Jennings said that was no criterion. 1 hey had to allow something for the growth of New Plymouth, He objected to reserving the Board's sections for the "man with all the money;" Mr J'aull believed in getting as many people as possible on the land. He said the Board had nothing to prove that the sections had brought more than if oliered as advertised, or if offered singly. Mr Major proposed and Mr Faull sej co'uled, that Mr Webster's contention
contained in liis letter bf: not upheld. |-for tlio reason Unit tlio system and not any action of the Hoard or its oilicers was responsible for the cause of his coniplajpt. Mr .'Jennings moved ail amendment flint the letter of Mr Webster's was justified, as it lias pointed out. that an alteration was necessary in the method of carrying out. sales of leases by the Board. Mr Simpson favored the amendment. Ijc jiuinted out that tile system was the outcome'of the Board's action.^ Jlr Major thought otherwise. Tlio action avus the outcome of the system. Mr Simpson: But the Board made the system. Mr Gorki!]: Mr Samuel approved of it. Ml" Major didn't believe in cat-ting the blame on the Board. Mr Jennings said he wasn't easting blame. A member of the public had pointed out that the svtcm was w'rong, and every member of the Bo,ml agreed with him. ■ ' v; , There was no seconder for the amendment, and the motion was carried, Mr Jennings' vote being recorded against it.. Mr Major then moved that the question of the system of options or sale in order as advertised lie agreed upon hefore any future sale of the Board's lands. ! Mr Fanll: That tlie same thing as Mr Jennings'. Mr Jennings:! Ekeept that it is whitewashed. Seconded by Mr Simpson and carried.
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Taranaki Daily News, Volume L, Issue 301, 21 December 1907, Page 2
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2,309A QUESTION OF PRINCIPLE. Taranaki Daily News, Volume L, Issue 301, 21 December 1907, Page 2
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