EXCHANGE OF SITES.

Wairarapa Age, Volume XXXI, Issue 3066, 10 December 1908, Page 5

EXCHANGE OF SITES.

FINALITY IN SIGHT. MINISTER FOR JUSTICE MEETS TRUST LANDS TRUST.

MATTER OF EXCHANGE FREE LY DISCUSSED.

MINISTER CONCILIATORY.

TWO TRUST SITES AND £IOO TO BE OFFERED.

An informal but important meeting of the Masterton Trust Lands Trustees was held yesterday afternoon at 2 o'clock, when the Hon. J. McGowan (Minister for Justice) met the Trustees in regard to the question of the proposed exchange of sites. The Trustees present were —Messrs C. E. Daniell (in the chair), R. Krahagen, T. Wagg, H. C. Robinson, E. G. Eton, W. H. Jackson, and 0. Pragnell. Mr A. W. Hogg, M.P., and the Minister's private secretary (Mr C. E. Matthews) were also in attendance.

At the commencement of the proceedings, Mr Robinson said he had heard that Mr McGowan had with him the papers regarding the exchange of sites, and he (Mr Robinson) thought a proper and advisable course to adopt was to call an informal meeting, and thus have Mr Hogg, the Minister, and the Trustees together. The Chairman (Mr T. B. Michell) was a good way out on the Upper Plain, and Mr D. Caselberg was also away, but even such a meeting as was then present could do more than might be accomplished by the methods adopted in the past.

The Chairman expressed the hearty appreciation of the Trustees at Mr McGowan's courtesy in so conforming to the desire of the Trustees, and giving them an opportunity to discuss the matter with him in such a convenient way. Mr Daniel] said

it had been assumed that he was opposed to the exchange, but such was not so. He was only against an excessive price being paid ; by the Trust and wished to preserve the interest of the Trust as an educationa body, conserved to the uttermost. He hoped when the Government had completed negotiations with the Trust, and buildings were to be erected by the Government in Masterton, such buildings would be of a comprehensive character and make for the convenience of the public and the various departments concerned. Mr Daniell asked the Minister if the meeting could discuss the question ?f exchange freely on its merits. Mr McGowan replied in tie affirmative, but qualified his reply with the remark that he was in such a position now that the present position between the Trust and the Department could not be altared by the Minister himself until any new proposal was submitted to and approved by Cabinet. .There had, continued the Minister, been negotiations conducted in the past which had fallen through, and he felt that the Trustees would recognise that he himself was virtually a Trustee too. and he hoped the discussion would be free from partiality. Mr McGowan then read a letter which he forwarded to Mr Hogg on October 9th, which expressed the Government's willingness to exchange the Queen Street site for the Chapel Street site and the Dixon Street site, provided the Trust would pay £SOO in addition for the difference in value, the actual difference, on a re-valuation being £1,476. The j three sites concerned had been freshly valued, and the values were found to be—Department's site, £5,016; Chapel-Hall Streets site, £2,634; Dixon Street site, £906. Later the Minister had, he said, written to Mr Hogg, about December 4th,- to request a statement as to what the Trust intended to do in regards to his offer. Several Trustees stated that they knew nothing of such an offjer, and the Minister's remarks were news to them.

Mr Hogg explained, at a later stage, that he had intended bringing the letter personally before the Trustees at last meeting, but it had been inconvenient for him to attend that meeting, and he had purposed submitting the letter at t*ie meeting of the Trust to be held on Friday.

Mr McGowan, continuing, said that the whole question so far as he was concerned, was perfectly simple. He had the values to guide him, and by these, of course, he would act. If the conditions he had just outlined were agreed to, he believed he could say there and then that the whole matter was settled, but any fresh proposals would have to be placed before the Cabinet. Mr Jackson asked the Minister if the first offer submitted by the Department, for an exchange of the Hall Street site only, on the basis of a payment of £I,OOO by the Trust as difference in value, was not withdrawn. Mr Jackson explained that the Trust had not really rejected the offer, but had submitted a counter offer to exchange two sites. The Minister replied that he thought tha present offer much more favourable than the first. Mr Jackson: But will you repeat the original offer of the £I,OOO inequality payment? Mr Robinson here read the minutes of the deputation to the Minister at which thejproposal was^madejco^pay

—if the offer was accepted—the £I,OOO by ten annual payments of £IOO. Mr Daniell pointed out to the Minister that in the first place the Trust had not seen where it could get the money. The Minister said, as regarded that, there should not be any difficulty about the payment of the difference.

Mr Daniell; But we have to find it out of ordinary revenue, as we have no power to mortgage. Mr Prangell said he understood that the offering of the Dixon Street site was intended by the Trustees to liquidate as far as it would the £I,OOO asked in addition to the Chapel Street site, not to be lumped together with the latter site, and the combined values to be set against the value of the Department's site. On such an understanding, on the Minister's figures, there was only a difference of £94 in favour of the Department. Other Trustees contended that what Mr Pragnell stated was what the Trustees intended should ba the ba3is of the new offer. The Minister read the minutes of the deputation to himself touching upon the point mentioned by Mr Pragnell, the latter's view being clearly borne out. Mr Hogg said the whole position seemed pretty clear to him. Taking the Minister's own re-valuations, the Government submitted a site valued at £5,016. The value of the original Trust site offered was £2,634, Laving a balance of £2,382. The Government offered to make, in the first place a concession of £1,382, as they only asked £I.OOO difference in value. Iristaad of giving this £I,OOO, the Trustees proposed to cgive a site valued at £906. Therefore, the actual amount outstanding on the offers was now £94 as stated by Mr Pragnell.

Mr Robinson wished to know if the Minister was still open to accept the £I,OOO and the one site, slating that it was now clear that the Trust deputation had never lefused to give the £I,OOO.

The Minister: That's all very well now you have seen the new valuations.

Mr Daniell questioned the accuracy of the Minister's valuations in face of the reaction in the property market. Mr Robinson presspd his question as to whether the Minister would still accept the £I,OOO and the Chapel Street site.

The Minister: T he new values have altered matters, it shows you the folly of not striking while thf iron is hot. Mr McGo.van suggested that the Trustees go into the whole matter again and s.ibrpil; a frosh proposal. Mr Daniel! wished to have the whole thing settled there and then.

The Minister said any fresh offer must be submitted to Cabinet.

Mr Hogg suggested that as the real difference in the values was £94, the Trustees should offer a compromise of'£loo and the two sites. Mr Daniell: But wduUl a proposal be considered? Mr McGowan: Yes, I think I can say it would be. We are not after money, and I mtfst say that the Trustees 'are doing good work with their funds.

The Minister continued that if a proposal such as Mr Mogg had suggested were made to Cabinet he would recommend his colleagues to give the proposal their favourable consideration.

Mr Krahagen remarked that'the Department should remember that the Trust had helped to make its own site valuable.

The Minister replied that he did not overlook this fact. Mr Jackson then moved, and Mr Robinson seconded, that the Trustees offer the Government the Dixon and Chapel Street sites and £IOO in cash in exchange for the Queen Street site.

Mr Daniell (to the Minister): Does that meet your wish? Mr McGowan: You have the whole position. Mr Daniell then moved a hearty vote of thanks'to the Minister for his courtesy in attending the meeting, and for the favourable manner in which he had viewed the Trustees' proposals. This was carried amid applause. The meeting also passed a hearty vote of thanks to Mr Hogg for being present, and for the trouble he had gone to on the Trustees' behalf. The meeting then adjourned.