AFTERMATH OF LAND BOOM.

Taranaki Daily News, 1 September 1922, Page 4

AFTERMATH OF LAND BOOM.

The views which Mr. Justice Chapman expressed, when summing up a case of alleged fraudulent misrepresentation at yesterday’s sitting of the Supreme Court at New Plymouth, are such as -will be endorsed by the majority of the public. His Honor has had the unique experience of hearing three of these cases at the present sittings, and he considered they all arose out of the recent land boom and the slump that followed on the reduction in the price of butter-fat. It is a matter of certainty that had there been no drop in produce values there would have been no litigation over alleged misrepresentation of the producing power of land sold at high prices, just as it is equally sure that, had but ter-fat prices risen and purchasers of land had found they were making greater profits than they expected, they would not have considered it their duty to pay the vendors, out of those profits, a premium in addition to the purchase money. While in some cases transactions in land were genuine business ventures, in many others speculation was the lure. Prices of produce had been rising since the war commenced, and had the process continued, or even stood at the peak point, land purchasers would have done well for themselves. It was all speculation as to prices, and -some of those who were caught by the slump have gone to the law courts for relief- Each case, of course, stands or falls on its merits, hut it Is significant that in the two cases referred to by the Judge, the verdict of the jury was adverse to the claimants. Time and again warnings of what would probably happen were voiced, but these fell on deaf ears. In this way history repeats itself, and the pertinent remarks made by Mr. Justice Chapman should have a salutary effect.