Page:Life·of·Seddon•James·Drummond•1907.pdf/314

 Government, there was a clause, since repealed, providing that if a land owner objected to the valuation placed on his land for taxing purposes, he could compel the Government to reduce the assessment or take over the property at his valuation. The Government’s assessors valued the estate for taxation purposes at £304,826; the trustees valued it at £260,220, a difference of £44,606. The trustees objected to the assessed value. The Commissioner of Taxes disallowed the objection. He was upheld by the Board of Reviewers. The Commissioner then received a letter from the trustees demanding that he should reduce the valuation to their figure, or take the land at their price.

It was a critical moment for the new Ministry. Its taxation scheme was under trial, and it saw in the demand of the trustees of Cheviot a menace which, if not met by a bold face, might seriously damage the land tax and embarrass the finances. It was not a matter of Cheviot alone; there were many other large estates in the same position in regard to the assessed values, and if the Government allowed the value of Cheviot to be reduced there would be reductions in all parts of the colony.

The Government considered the position in all its bearings. It had to take one of two courses, and both called for serious consideration. It could not allow a deadly blow to be struck at the system of taxation for which the party had been fighting for more than thirteen years, and it was much inclined to take the course, which its opponents never thought it would be courageous enough to follow, of purchasing the estate. The fact that the compulsory clauses had been struck out of the Land Act was additional incentive to the Government to come out boldly and say that it would maintain its system of taxation and take Cheviot. It was looking about for land for settlement purposes at the time, in order to carry out the promises made to the people. Sir John McKenzie had been able to do hardly anything in the way of close settlement. Here, then, was his opportunity. Cheviot was admirably adapted to his purposes. Most of it was good land, and it could be cut into suitable areas for agricultural and pastoral settlement. In view of the results that might ensue, the Government acted with great caution.