TARANAKI LAND VALUES

Taranaki Daily News, Volume LIV, Issue 286, 30 May 1912, Page 7

TARANAKI LAND VALUES

ARE THEY TOO HIGH? A CHALLENGE. Mr. \y. D. Powdrell returns to the charge in the Hawera Star on the subject of land values. Inter alia, he states:— 1 have handed the Star returns for every month for a period of five years commencing on July 1, 1905, showing price of butter-fat for that period averaged 10% d, and showing grogs returns oil" 121 acres at Manaia to be £llO3 }'*s*&> ali( i *t a period when most of the calves were killed owing to low prices.

Although the last three years at Kaupokonui butter-fat will average Is Id at least, 1 will only use the previous five years at 10y 8 d to prove roughly what land is worth.

These figures show that '£465 would be earned by the family on this farm, and putting the land at £IOO per aere, or £5 rent per acre, or £605 rent per year, it would leave about £93 for interest at 5 per cent., depreciation, etc., and, mark vou, this is at lO'/jjd butterfat.

"Anti-Speculation' ' quibbles on my mentioning house rent free. I mentioned an excessive value of £BO and £IOO in making my calculations, and I presume the best of land can be bought at present with buildings on, but my friend would like to add on cost of buildings again to try to rebut my figures. "Anti-Speculation" wishes to remind me that butter-fat was once 7V 3 d and 8d; he may have gone further back and eaid 4d; and then he asks: "Tf I have any guarantee of future high prices." I am afraid my friend is one who is ever looking backward instead of forward.

In my opinion butter-fat will fluctuate lightly, but the days of 8d and 9d are past; now most factories have dual i plants. "Croaker" tries to prove a herd giving 2401bs of butter-fat would cost £l2 j per head, interest on same 10 per cent., \ depreciation on same 15 per cent. It; is j apparent to any person that he not onlj, a croaker, but a muddler, who buys his cows at £l2, when he can purchase at £3 10s less, pays interest at 10 per cent., whereas if he had any knowledge, or standing he could procure his money at 5 per cent., and besides this he evidently has no judgment to buy cows that depreciate 15 per cent, yearly, and his opinion on dairy matters to my mind is valueless. Why should "Croaker" allow 10 per cent interest on cows when many farmers do not borrow any money on cows? Five per cent, should be a fair interest to allow. Most practical farmers on £IOO per acre land should sell their cull cows either fat or forward, and replace the poor yielding cows with good heifers, and thus save nearly all depreciation. "Anti-Speculator" and his brother' "Croaker" would see that public opinion was against them at the land sale held on Saturday last, in spite of their balance-sheets, as small areas in some cases not even ring-fenced and without buildings, made '£6B, £64 10s, £69. £6B, £67 10s. In most cases the purchasers were practical farmers, and had land, adjoining these properties, so that they should know their business better than "Croaker" and "Anti-Speculation." If "Anti-Speculation" will try to find brother "Croaker" and between them or their friends deposit £SO at the Star office, I will do the same; T undertaking to prove from past balance-sheets that £IOO per acre can be given for our best lands after allowing ampl<l for • all rent, labor, interest, depreciation, etc., thev to prove to the contrary; a practical committee to decide, and "the loser to forfeit his £SO to the Hawera Hospital. If they are not men cnousrh to sign their names or accept my "challenge, then they should for henceforth hold their peace -and not disclose their ignorance on land value?.