PROFITS FROM MOKAU.

Gisborne Times, Volume XXIX, Issue 3392, 6 December 1911, Page 2

PROFITS FROM MOKAU.

HOW THE PRICE INCREASED. WHAT THE SPECULATORS GOT. The transaction in the Mokau lands afford a striking illustration of the manner in which the price of land is increased by speculation. By the Order-in-Council issued in March by the Government Mr. Herman Lewis was authorised to purchase the block of -53,000 acres for £25,000 in cash. The company which came behind him supplemented that price by £2500 in shares and also gave £IOOO for expenses to the men who were interesting themselves in the transaction. Then keeping 7000 acres of the block for himself, Mr. Lewis sold 46,000 acres to Mr. Chambers for £71,000 in cash and £4OOO in shares. The latter sold again to the Mokau Company at a net profit of £IO,OOO, so, that the cost to the company of the 46,000 acres was £85,000.. The area of 7000 acres retained by Mr. Lewis is, according to evidence given during the Parliamentary inquiry, the best land in the Block. The attitude which is being maintained by tbo Government is that it clid not sell the land, because it has refused to give a title fot three years, during which the block is to be subdivided. The reply made by _ the leader of the Reform party to this is that the Government should have bought the block itself when it was offered to it for £22— 500. It refused to do so, and though it has not given a title to the land, it has empowered a company of speculators to exploit the settler’s who will take holdings in the block, in order to recoup itself.