E.—l

99

per cent, from the commencement of their loans, and also to renew the loans at the end of the five years for an additional term of seven years at the same low rate, this being equal to a cash reduction of about one-fourth of the purchase-money. It was considered unwise, in view of the fact that a number of cash purchasers had paid the whole of the purchase-money on the date of sale, to make any reduction in price to those who had not completed their purchases, and the reduction of interest_to such a low rate as 4 per cent, was considered a very fair concession and relief. Those of the petitioners whose interest had been paid regularly were entitled to and received credit for a considerable time in advance on account of the 2-per-cent. reduction; but others were so far in arrear that the reduction did not nearly clear off their arrears of interest. The Commissioners have reason to believe that the most of the petitioners would have been satisfied with the concession offered had not one or two agitators induced them to take concerted action with a view of obtaining a reduction in the price of the land. The result of this agitation was that a petition was sent to the School Commissioners asking for a revaluation of the land. In order to satisfy themselves as to its actual value, and to have the matter definitely settled, the School Commissioners appointed two of their number—viz., Messrs. J. Walker Bain and James Green —a committee to personally inspect each holding. Both of those gentlemen have a practical knowledge of the value and capabilities of land, and they were accompanied by Mr. J. L. McDonald, the Commissioners' agent for Southland, who is also an experienced valuer. The committee spent nearly a week during December last in visiting the petitioners' sections and investigating the circumstances of each case. The following figures give the result of the committee's valuations of the sections over which the School Commissioners hold mortgages :—

After a careful consideration of the committee's report, which was most exhaustive and comprehensive, the Commissioners decided to offer the mortgagors a reduction on the basis of the foregoing valuation, the existing mortgages of those who should elect to take advantage of the reduction to be cancelled, and new mortgage-deeds to be signed for the reduced amounts, the term of the new loans being for a period of seven years, and the rate of interest 6 per cent.; interest to be charged at 6 per cent, on the original mortgage amount until the exchange shall be completed. The amount of the new loans would thus be the price of the land at the reduced rate, less payments already made. The cost of the new mortgages was fixed at the low figure of £1 11s. 6d. each, exclusive of charges such as registration, &c. A circular was sent to each cash purchaser or mortgagor whose section was valued under cost-price, giving him the option of determining whether he would accept the reduction in the amount of mortgage or remain under the existing arrangement of paying 4 per cent, interest on original amount; but so far only two have accepted the offer. A number of the mortgagors no doubt find, on calculation, that the reduction in interest is a greater concession than the reduction of principal, while the interest of others is so much in arrear that were it raised to the rate of 6 per cent, it would be impossible for them to take advantage of the reduced amount of principal by paying up interest to date. The School Commissioners have devoted a great deal of time and trouble to the consideration of the circumstances of the cash purchasers on terms, or, more correctly speaking, mortgagors, and have been actuated throughout by a desire to assist them as much as possible. At the same time they consider that they would not be justified in reducing the price of the land to a lower figure than what they now value it at. In dealing with this question they have always felt a difficulty in regard to those who have paid up their purchase-money in full, and who may possibly make a claim for the refund of part of what they have paid, even though the School Commissioners have no power to make such a refund. In adopting the before-mentioned resolution, the School Commissioners

Name of Purchaser or Borrower. Area. Original Price per Acre. Amounts of Committee's Valuation per Acre. M. A. A. Maher J. Henderson E. Walker ... James Watt H. Jones H. McGregor A. Eoy G. Aitken ... Barclay Brothers James White Emma Cross John Keown George Stuart D. L. Fraser J. D. Hoops F. Days M. Miles ... F. Collins ... J. Butel ... J. H. Wilson James Blaikie 274 276 246 219 183 216 363 299 252 217 154 110 197 245 268 183 294 200 195 234 281 B. P. 0 22 2 28 1 11 2 23 1 21 0 35 2 18 1 23 2 4 3 11 2 33 2 0 3 2 1 18 2 28 0 27 2 1 0 0 2 16 2 8 0 0 s s. a. 2 0 0 1 10 0 2 5 0 3 5 0 2 10 0 2 10 0 1 15 0 2 0 0 4 7 3 2 7 6 2 2 6 5 2 6 2 10 0 2 0 0 1 15 0 2 0 0 1 10 0 2 10 0 3 15 0 2 0 0 1 15 0 £ s. a. 2 0 0 1 5 0 2 0 0 3 5 0 2 0 0 2 5 0 1 10 0 1 10 0 3 10 0 2 0 0 2 0 0 5 0 0 3 10 0 2 0 0 1 12 6 1 15 0 1 15 0 2 5 0 3 0 0 1 10 0 1 10 0