6
THE IILTJSTRA.TED BEE.
I'Vhntnry 21, 1001.
Call Landed Nabobs
Their Social Pests
fPopyriglit, 1901, by Frank 0. Carpenter.)
WELLINGTON, Now Zenlund, Jan. 12,
1 HOI . (Special Correspondence of The Hue.)
--Theso questions aro addressed to tho land
nabobs of tho United Stntcs, to corpora
tions and Individuals who own their thou
sands of acres, who control vast tracts of
pastures or who mnnago the bonanza farms
of the Brent northwest;
How would you like to have your lands r.t
the mercy of the government, to bu com
pelled to sell them at 10 per cent above the
valuation you enter thoin for taxes, and
to pay such taxes upon them that you will
hnvo to cultivate every part of thorn to
make them a paying Investment?
How would you like to havo your tnxes
Increased In proportion to tho extent of
our property, so that they will bo propor
tionately doublo or treblo thoso of tho small
holders about you, and If you live outside
tho statu In which tho lands are situated so
that you will havo to pay 20 per cent morn
than nny of the people who llvo on their
lands?
That Is tho way they aro doing things In
Now Zealand.
Hero nru soma questions for tho small
property holders, for farmers who own
lands worth Ichb than $7,500:
How would you Ilka to pay no taxos
wlmtover upon ono-thlrd of your proporty,
A "SOCIAL PEST" AND HIS
or, If the property Is valued at less than
$2,500, no taxes whatever?
How would you Ilka to have all your Im
provements deducted from tho usscsscd val
uation and tho tax merely laid on tho land
as It was when unimproved?
How would you llko to pay only on that
part of the land which you really own, tho
amount of your murtgnges bolng doductod
from tho tnx valuation to pay, In fact, uo
tnx upon anything outside the unimproved
land you have paid for and your Income,
and this In case the said income annually
amounts to more than $1,500?
That Is tho wny they do things In Now
Zealand.
How would you like to see tho big estates
of this country tnkcu possession of by tho
government nud redistributed in smull sec
tions to you nt cost on long tiiuo nt C pur
cunt Interest?
How would you llko to havo advances
made to you for building your liuuau nud
fencing your land and tho terms of pay
ment m ml e so easy that you could either
pay for the whole or have It on lease at
(his low Interest for D'J!) years, the rent not
doing raised, uo matter how much Improve
ments you put on tho land In tho way of
cultivation, fertilization and buildings?
That Is the way thuy aru doing somo
things In New Zealand.
CurloiiM l''cn( it i-i'n (if l.iuiil Sniiiii.
The above aru among tho curious features
of Now Zealand's land system. The Now
Zealauders do not believe In large land
holdings and they nru doing all that thuy
can to have their country divided up Into
small farms. Thuy call the hirgu laud
holder u "social post" nnd seruplo not to
tull him that thuy will bu glad to havu him
lenvu the country- They tax him In ovory
way possible to gut him to leave and If hu
Is nu absentee, living In Europu or else
where, thuy so pile on tho taxes that ho
has to sell.
At present absentee property owners nru
charged 20 pur cent more taxes than those
living In New Zealand and the taxes rise In
proportion to the amount of land ono man
owns.
Everything Is dono to encourage small
farmers. Thu man whoso Incomo Is less
than $1,500 n year goes scot-free, paying
no taxes. Hu whoso farm Is worth only
$2,500 is exempt nnd It his estate Is worth
$7,500 ho pays tnxes on only $5,000 of its
valuation. Tho tax is assessed on tho un
improved valuation. Tho man who tnkeB
n poor farm nud brings It up to a high
stnto of cultivation pays only on what tho
land was worth when ho first plowed It
and his buildings nud improvements nru
only tnxed through the Income which thoy
bring him when this Is over $1,500 per
annum.
Thu rich man pays Increased taxes on his
land, on his Incomo, on everything. Take
tho land. His tnx is levied on its unim
proved valuation and this tax Is Increased
according to Its vnluo. If his farm Is worth
more than $12,500 hu gets no exemption
whatever. After It reaches tho valuo of
$25,000 thero Is no deduction of tho mort
gages upon It nnd from then on It Increases
nt tho rate of an eighth of n penny In the
pound until It renches n maximum taxation
of twopence per pound, which Is payable
only when tho value Is a million dollars or
more. Ho pays an Increased tax on his
Income. Tho man who has only $1,500 n
year pays no tnxes whatever, but tho man
who has up to $3,000 nbovo this pays six
penco to tho pound, or 2 per cent, and a
man whoso taxnblo Income Is more than
$5,000 pays 5 per cent. This does not seem
a great deal without you figure It up.
Supposo your Incomo was that of a con
gressmon, you would pay 2' per cent on
$5,000, Icbs $1,500, or $87 Incomo tnx. If
you wcro ono of tho Justices of tho supremo
court nnd got $10,000, you would havo to
pay 5 per cent on tho extra $5,000, making
your taxes $327, and If you were ono of our
big trust magnates with an Incomo of
$1,000,000 n year, your taxos would closely
approximate $50,000, and If you lived In
Now Zcnland you would havo to pay them.
It Is snfo to say that such men In the
United Stntes do not pay half as much. In
Now Zealand they would probably be
ranked as social pests.
HlINN SlMlllOII Oil .Cllllllllt'ft 1.1111(1.
I had a talk with Mr. Itlchard Seddon,
UNDEVELOPED PA KM.
tho premier of Now Zealand, ns to tho pol
icy of tho government ns to Its public
lands. Ho Is In perfect nccord with the
system of cult lug up tho big estates, and
Bays that all such experiments undertaken
by tho government hnvo proved successful.
Horo aro his own words:
"Tho Ideal condition would bo ono In
which tho stnto owned nil tho land and
leased It out to tho people on n low rate
of Interest on certain conditions. Such a
system might bo Introduced Into a now
country, but here In New Zcnland we hnvo
property rights which have grown up
through tho past half century, which pre
vont our adopting such radical measures,
Wo had here, up until 187C, a sort of a
federation of states. Each stato controlled
Its own public lands and Its own railways,
THE (10VEUNMENT PAYS THE UNEMPLOYED TO CLEAR ITS POIIESTS FOU
NEW SETTLEMENTS,
As tho various governments wanted money
they sold their land, aud that in largo
tracts at prices which were ridiculously
low. Much of them wcro bought by absentee
capitalists at ten shillings or thereabouts
per aero. I know ono man who paid ten
shillings ($2.50) por ncro for 50,000 ncres.
That land Is now worth $50 an acre. Other
men bought tracts of 20,000 acres, 50,000
acres and somo of 200,000 acres. This land
they hold, lying back nnd waiting for It to
increnso In valuo. In Borne cases they used
It for grazing shcop, with perhaps hnlf a
dozon shephords on n principality which
should support sevoral thousand tnrmors.
"At thnt time," Premier Seddon wont on,
"them seemed a crazo for largo farni3,
Tho umnll holders wero bought out by theso
large ones. Corporations woro formod In
England to got control of tho Now Zcnland
lands.
"Tho Innds wore managed for syndicates
and tho tenants wero squeezed In overy pos-
slblo way to Increase tho dividends, In
Parliament hero It was asserted that the
manager of ono of theso absentees land
companies had mado n speech in tho dl
icctora' meeting in London apologizing bo
causo he could only declnro a dividend nnd
n bonus of 15 per cent at that time, and
stating that tho shareholders must not look
for higher dividends until tho wages in
Now' Zenland woro reduced. Tho tennnts
woro charged such high rents that thero
was no monoy in farming. The small
holdings woro mortgnged, so that the farm
owners paid as much as tho routers, and In
thu meantime tho most of tho 'money was
going to England. Times became hard
and our population began to fall off. This
showed us that wo must change the sys
tem, aud we ndoptcd tho present methods
to get back tho lands nnd put them In
tht' hands of tho people."
"Aro there many lnrgu farms left?"
"Yes, a great many," replied Premier
Seddon. "You see, our now system has
boon recently ndoptcd and It Is one which
Is noccssarlly slow. We have in New Zea
land nil told about 34,000,000 acres occupied
as farms or ranches. They' nru In the
hands of C2.000 persons. Of these 103 own
fO.OOO acres or more each, and nearly -100
own between 10,000 and 50,00 acres each.
In all tho holdings 82 per cent nru under
320 acres and 5S per cent nre of 100 acres
or less.
Itu)' I'l'lvntv IXiiten.
"Wo have already spent more than
1,000,000 buying up prlvnto estates aud
throwing them open to the people Wo
havo bought about seventy estates, having
an area of something llko 323,000 acres.
Tho lands are not bought directly out of
tho government funds, but tho money for
them is raised In England at 3 per cent
Interest on long time. Tho government
guarantees the payment of the notes nnd
this Is also secured by a mortgage on the
land. The government charges 4 per cont
to purchasers on long-tlmo leases. It
charges 5 per cent on the lenso with tho
advances for Improvements added, but as
this Is on tho actual cost price of the un
improved land It makes n very low rentnl.
Of the money received 3 per cent goes to
thu paying of tho lntorcst, 1 per cent pays
tho expenses of tho administration, etc.,
and tho other 1 por cent is put into a
sinking fund which will eventually pay off
tho purchaso notes and vest tho land In
tho government. I refer, of courso. to land
loosed."
"On what conditions nro tho lands glvon
to bottlers?"
"Wu hnvu different mothods of division
and payment," replied tho promlor. "Tho
people can buy tho lands outright or they
can leaso thorn with tho purchasing clause,
or thoy can lenso thorn for 099 yenrs, or
practically In pcrpotulty. This Is at tho
option of the settler. If tho man wants to
buy for cash ho pays one-fourth of tho
purchaso money down and tho rest within
thirty days. If ho wishes to purchaso and
has not tho money ho can lease tho land,
paying 5 per cent annually on Us cost to
the government. Such a leaso runB for
twenty-five years, with the right of pur
A FAUM SETTLEMENT IN NEW ZEALAND.
chase at tho first pr.cu at any time after
ten years, or ho cau leaso it on 1 per cent
of Its cost for 999 years,
"Tho government buys tho land and aids
thu Eottlcr In making his Improvements,
ndvnnclng tho money to build his house
nnd fences, etc. Wo rcquiro tho settlers
to llvo upon tho land. They must make
Improvements to tho amount of $3 por acre
and must cultivate a certain portion of it.
We Ilnd that tho people llko tho plan, anil
that thoy are taking advantage of It.
Nearly every cstato that wo havo taken up
Is settled. Land which has been used for
raising sheep Is now raising men, and we
havo n prosperous farming community In
n score of places which were formerly oc
cupied by but a few shephords."
Mow Kniiiicm Arc Condemned.
"llut supposo tho men who own the cs
tates do not care to sell, Mr. Seddon. How
does tho government do In such a case?"
"That is a very easy matter," lepllcd the
premier of Now Zealand. "We llx the
valuo of tho land and tnko It, paying thu
man for It In bonds or cash as hu desires."
"Hut how can you llx tho valuo?"
"That is part of the law," said Mr.
Seddon. "Our lands nre taxed on their un
improved vnluo and the amount upon which
tnxatlon Is levied Is given In by the owner
of tho land. Hu assesses himself as It
were, but It is with this understanding that
In case the government wants the land It
shall havo tho right to tako It at tho val
uation ho has put upon It for taxes with
an addltlcnal 10 per cent of that value.
This gives us a better tax valuation and at
tho samo time It provides nn easy way for
the government possession of thu land."
"That is rather hard on the tnxpaycrs It
seems to me," said I.
"Yes, It may seem so, but remember wo
do not tako possession of estates unless It
Is for tho undoubted good of tho people.
So fnr wo havo taken very little land by
forced sale. Wo havo moro estates offered
to us than wo want. Last year fifty-seven
properties, amounting In nil to 380,000 acres,
wcro offered to tho government. Of these
nbout half have been declined or withdrawn,
and of tho remaining 190,000 acres under
consideration Just nbout 100,000 havo been
recommended for purchase."
Story of n Xcw .ciiliinil Kniiiic.
In talking with ono of tho olllclals about
tho now land settlements I was told how
thu government acquired ono of thu largest
of Its now estates. The land belonged to
a man named Heady Money Hobtnson. He
had bought a largo part of It moro than
half a century ago, paying a little moro
than $1 an acru for It. There wore alto
gether about 80,000 acres In tho tract, com
prising somo very rich agricultural terri
tory which was at tho tlmo devoted to sheep
raising. Tho assessed valuo of tho land
was equal to $1,500,000, which was Just
$200,000 moro than the owner thought it
ought to bo tnxed. Ho objected nnd tho
government thereupon took possession of
tho land upon his valuation, with 10 por
cent added, Tho land olllclals resurveyed
tho estate and divided It up Into farms of
from llfty to 100 acres each and of pastoral
ranches of from 600 to 3,000 ncres. They
laid out a town site nnd throo vlllago sites
and then built n railroad through the es
tate. Altogether they spent about $300,000
In opening It up nnd then offered tho lands
to tho people. Thoy woro rapidly taken up
upon tho usual government terms, nnd nt
tho end of six years tho government wns
rccolvlng 5 per cent on Its expenditures.
Instead of a big sheep ranch tho istnto was
made up of small farms. Land used for
grazing wns yielding forty-five bushels of
wheat to tho aero and thore woru 11,000
ncres of It In English grass. Aside from
the agricultural development moro wool
nnd mutton wcro being shipped from tho cs
tnto than when It wns nil devoted to sheep.
In tho neighborhood of 50,000 sheep nnd
lambs are still exported from It every year.
When tho govornment took thnt estate the
ujijiiuji;o wiuti ti limn uui aiiiwui 11 lllfe
a scoro. It supports now more than 1,200 j
peoplo nnd it Is spotted with pretty farm I
homes, with school houses hero and there.
I'lilillc I.iiiiiIh a Public i'rimt.
In a chat with Mr. Edward Tregear I
asked him how ho could reconcile tho ac
tion of thu government In forcing tho cs
tato owners to give up their lands with the
rights of property. Ho replied: j
"We do not look upon land as upon other
property Lund should belong to tho state.
It Is given to it by the Lord, to bu held In
trust fur thu people. It Is nil right for a
ir.nn to own tho Improvements ho makes
upon tho land nnd to be allowed to sell them
or to leavo them to his descendants; but as
to the land Itself, I don't think Cod over
Intended any ono man to own vast tracts
for all time, nor to nllow him to sny this
land shall bo tho property of his children
nnd grandchildren to tho tenth generation.
"Tnko for Instanco a man like Admlr.il
Dewey. Ho did a great thing when hu du
feated tho Spanish In tho bay of Manila,
and your government ought to feel grateful
to him. I should think It nil right It It
expressed Its gratitude In honors nnd pres
ents. Supposo It gave him $1,000,000 as n
reward fnr his services. That would bo all
right, but It would not be right for It to
grant him nnd his descendants 100,000 acres
of laud. Thin would equal to a pension of
$100,000 a year to his descendants for all
tlmo to come. It would bo mortgaging thu
property of future generations. It would bo
robbing posterity of Its rights. I don't
think tho government hns any moro right to
sell lnrgu tracts of land than It has to
glvu them away. Tho Ideal method would
bo for tho government to own tho land
nnd lease It, nnd that Is what wo somo day
hopo to accomplish here. As It Is now, I
think wo havo dissipated the hopes of thoso
who wish to build up great estates ns family
Inheritances. No one dreams of that now,
for tho people know that the government
will oventunlly divides them."
I t'llnl- Mr. Tregear Is right. New Zea
land will eventually becomo n land of small
fnrms, although It may tako years to make
It so. By the present laws no man who ri
has moro thnn CIO ncres of lnnd enn ob
tain nny of tho public lands.
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