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C O N F I D E N T I A L LIBRARY,
(THIS DOCUMENT I S
THE PROBERT
S.E C R E T .
CP.
107
(26).,
The p r o p Qs ed h a t 1 on a I i s a t i or. o f r-oja 11 i e s .
-
Memorandum b y S e c r e t a r y
The r e c o m m e n d a t i o n
property
working
day,
i n all c o a l
or n o t ,
and t h a t
should vest
subject
a deduction
later).
it
now known t o
present, workable
compensation.
refrain
for
from
trouble
in
and p a r t l y
the
exist,
or
lies
will
vest
in
is
out
In
valuation
The r o y a l t i e s
particular
or f o r
order
the
of
This
State
some o t h e r
is
total
estimated
anticipated
that,
a 5% b a s i s
the
profit
loss.
nor
coal
cost
of
if
the
transaction
to
than i s
the
r- r c h a s e
Stock
will
was
of
to
either
to
issued
the
goon
worth
retreat
buying,
In
case
anticipated.
Secretary
Is
at
Inserted
put
now
because
without
by a " C o a l
Involve
Is
coal
not
be
(e.g,
vrtiich w i l l
a line
t o be a d m i n i s t e r e d
will
State
of
reason i s
t o k e e p open
a p p o i n t e d b y and r e s p o n s i b l e
The
areas
of
value,
the S t a t e
might n o t . b e
pixrchasing
issue
b e l o w what
the
in
particular
deduction
provision
p r o v e d much h i g h e r
are
on a
market
to
the
whether
has no v a l u e
t o be g i v e n
altogether.
that
(This
5%.
that
(by the
their
that
purchasing
order
State
for
at
is
minerals,
coal
level)
and e x p e n s e
be w o r k e d
of
The
Power
a time o r
partly
in the
or A n n u i t i e s )
explained
not
Commission
they should be p a i d
Stock
Is
the
Mines.
and a s s o c i a t e d
Government
to
of
for
Commission"
for
Mines *
£ I C O , 0 0 0 , 0 0 0 . and
in
the
payment
State
In
is
it
on
neither
The c o n s i d e r a t i o n s
that
recommend n a t i o n a l i s a t i o n
l e n g t h on p a g e s
in
vhich t h i s
themselves
examined
policy
with
developed
is
a simple
for
Department.
It
memorandum
of
.
last
escaping
objections
about
arising
memorandum i n
a course.
Board o f
conclusion
that,
for
even
to
acquisition,
adopted
the
difficulties,
after
the
same
conclusion.
The p r o p o s a l s
from a l l
of
the
this
a
Mines
part
of
and
the
the
and
a
coal
of
(very
The
with
favour
Department
In
can be
the
the
present
is
simultaneous
to
of
the
policy
is
to
facing
up
to
policy
of
It
only
was
possible
reluctantly)
vary
t h a t h a v e been
to
d e v i s e d which
than
every
Commission
to
and c o n s u l t a t i o n
the
in
minerals".
of
either
such
confusion
all
purchase"
of
stated
sort
possibilltie
or b o t h .
Inclined
to
other
of
acquisition
sound a l t e r n a t i v e
schemes
into
a nationalisation
arrived
of
preferred".
scheme
forced
examination
Commission
of
be
detail
objections
acquisition
that
respect
form
this
"if
risks
a prolonged
of
confusion,
reasons
of
I s no
to
are
both
t o go
examination,
greater
and t h a t
there
simultaneous
in
gradual
the
not
content
of
attached
simple
Inland Revenue,
no scheme
be
of
"a
original
memorandum,
open
of
But f u r t h e r
manner
15 months a g o and c i r c u l a t e d
or t o undeveloped
its
Is
version
examining
out
at
exhaustively
Commission by t h e
expense,
a process
coal
a copy i s
out
they
purchase,
coal,
to
the
and " o n b a l a n c e
probably wish
the
set
out,
they have
scheme o f
July,
are
As t o
carried
a revised
from, the
by a p p l y i n g
developed
is
written
Cabinet
the
t o be
themselves,
before
Commission
the R e p o r t .
that
will
the
royalties
and t h e u n d e v e l o p e d
memorandum put
the
of
alternatives
t h e Government
question
of
saying
several
opinion that
As
77-79
led
in
a
alternative
at
one
the
important
considered
hitherto
It
has
always
justify
b e e n assumed t h a t
the n a t i o n a l i s a t i o n
grounds u n l e s s
existing
of
(subject
where
the
Otherwise
the
ownership
obviously
coal
already
Commission
to
leased,
(p.
82)
to
vary or
them f o r
to
their
It
point
proposals
is
at
general
the
present
scheme
for
pi-esumably,
This
is
a. p o i n t
a later
be
of
of
the
insuperable.
will
very
of
of
acceptance
need
leases
necessary
effect
into
this
Commission s
the
1
royalties
of
need
i t s every
careful
proposal
that
Inland
Revenue,
those
From t h e
There
will
right,
the
cost
of
without
The p r o p o s e d
money r e p r e s e n t s
if
the
are
have
detail,
consideration
the
oa"ling
the
of
liability
the
Treasiipv
Departments
view
great,
of
but
the
will­
Mines
cannot
be
additions
Comrni s s i on ' s f o r e c a s t
on t h e
deduction
of
affect
t o be h e a v y
administration
s h o u l d be i m p o s e d
to
point
difficulties
but e v e n t u a l l y ,
can be met f r o m
b% f r o m
the
which t h e
upon r o y a l t y
Miners' Welfare
to
is
the
taxpayer.
Fund;
purchase
Commission
owners
to
equivalent
annual
contributions
will
have
t o be made b y
out
the r o y a l t i e s
that
they
acquire .
of
of
The
giving
go f u r t h e r
Acceptance
t a k e n as
staff,
contribute
to
of
case
amalgamations.
this
advise.
Department,
consider
may be
purpose
furthering
stage.
it
it.
run.
existing
right
stage.
and t h e Board
royalties
the
as
a
State
in the
the n a t i o n a l i s a t i o n
that
0­' a s p e c t s
no doubt
far
perhaps unnecessary
not,
at
for
so
for
leases
that
cancel
and t o
claimed
as t h e
to
to
practical
required
obtained
contemplate
except
cancel
are
be
so l o n g
must be p r e s e r v e d
State
Interest
that
cannot
the
impossible
on any
compensation,
national
advantages
w o u l d be
royalties
pov-er was g i v e n t o
leases
appeal)
of
it
the
State
This, proposal
is
likely
t o be t h e
ground t h a t
it
may r e c e n t l y
the
vendor,
his
moral
subject
some c r i t i c i s m
unjust
when a p p l i e d
have
bought
coal
who i s
that
really
local
the
to aid
works h i s
and u n j u s t
to
of
is
obligation
population
value,
subject
in that
rates)
is
for
minerals"
Scotland
(where
treated
in
Commission w e r e n o t
Impressed
by
a principle
sound must n o t
adoption might
lead
In
be r e j e c t e d
t o a few h a r d
G. R .
Department,
March 1 0 t h , 1 9 2 6 .
this
"neglected
the
the
full
royalties
this
The
while
of
obtains
(where
essentially
who
well-being
and W a l e s
that
persons
who has
same way as E n g l a n d
holding
the
value,
the
criticism,
Mines
full
person
the
to
on
matter
they are
line
of
itself
because
cases.
LAKE-POX.
Its
are
In
not).
AHjtjSK TO, C P .
107
(26).
g k
STATE HJfiOHASJJS OF ROYALTIES .
SSNffiAL.
CoiriinoD f e a t u r e s
1.
The f o l l o w i n g
any p r o p o s a l
(l)
"are
for
of a l l
p o i n t s may he r e g a r d e d
the n a t i o n a l i s a t i o n
The m i n e r a l s t h a t
(a)
coal
Ironstone,
and
(b)
shale,
worked w i t h c o a l ,
(2)
The r i g h t s
(a)
are
damage)
or
capable,
that are
agreement
in
owner
(a),
coal
so f a r
severed coal
to
of
the r i g h t
enter' land
The a c q u i s i t i o n
and
to an o b l i g a t i o n
But
there
appeal)
is
(4)
in
to
Persons
to
(5)
"
compensation
Compensation
for
enjoyed by the
paid;
present
lease);
including
all
shaft-leaves;
search f o r
subject
leases
to
ooal
and p o w e r
existing
to working
leases,
proprietors.
t o compensation
grant
do
to
fresh
and
ones whore
so.
are'to
be u n d e r
o r d e r ' to. e s t a b l i s h
in
coal
the market v a l u e
of
Is
let
for
the
a
right
or
being
on the
basis
compensation.
worked by t h e p r o p r i e t o r
of
to
is
own c o a l
t o make c l a i m s
(subject
before
and
interest
to
ownership
by
(subject
leases
claiming
coal.'
purpose.
to grant
terminate
are
are:
underground,
t o be
t o be a power
the n a t i o n a l
obligation
is
worked W i t h
w a y l s a v s s and
this
as they
t h i s may be w a i v e d ,
b o r e and
for
stratified
compensation
the r i g h t s
access
to
(3)
is
of
t o any e x i s t i n g
the r i g h t
acquisition
w i t h the r i g h t
together
as
of
(evg.
the a b s o l u t e
or a r b i t r a t i o n
(subject
being
(on payment
e x i s t i n g underground
(d)
of
t o be a c q u i r e d
lease)
surface
except
subject
i n so f a r
etc.)
in
royalties'.
t o be the
fireclay
to any e x i s t i n g
down t h e
of
fundamental
as
associated minerals
in unsevered
(b)
o f n a t i p rial l a a t i o n .
schemes
at present
in l e a s e
to be assessed
the r i g h t s
' -1­
t o be
acquired.
it
(6)
Compensation
is
to
be p a i d
by t h e
issue
of
Government
securities.
On t h i s
groundwork
alternative
2.
schemes,
Simultaneous
contemplates
and. a s s o c i a t e d
will
vest
that
at
present
current
Crown;
being
(if
not
of
Objections
difficulties
country
are
of
the
to
n
are
it
would
of
land-owners,
or w r o n g l y ,
of
land,
changes
great,
a
mining
large
there
frosh
The huge
individuals
political
of
lease
for
the
at
as
his
all
with
its
State
will
every
the l e s s o r ' s
ownership of
scheme.
n
and
all
The
the
rights
the
­
in a limited
the claims
small,
was c o a l
to
debt
task..
is
sums t h a t
would
would
of
have
numbers
rightly
small
to
plots
some
be
undertaken
to be paid
furnish
for
involving
vast
To c r e a t e
not a course
The n e c e s s i t y
in the country,
their
the
public
time,
of
in
insuperable,.
who t h o u g h t ,
under
administrative
coal
from p r i v a t e
of
in compensation
attack.
equally
t h o u g h no d o u b t n o t
examination
that
in
undeveloped,
coal,
that
so f a r
simultaneous
would be a g i g a n t i c
£100,000,000
lightly
the
policy
e x i s t i n g l e s s o r "in
from
To make a c o m p l e t e v a l u a t i o n
as
and
be p a i d
a n y scheme i n w h i c h
very
This
surface K
simultaneously
ownership
several
day t h e p r o p e r t y
will
the
up
detail.
unworked
(in
derived
in
all, opal.
a n y ) ^ and
for
to b uild
developed
worked,
c o a l mining l e a s e
minerals,
of
that
be s u b s t i t u t e d
and o b l i g a t i o n s
3"
differing
minerals,
market v a l u e
forthwith
possible
on an a p p o i n t e d
coal
in the
is
acquisition
that
present
it
a ground
examining
s e p a r a t i n g what
to
some
for
every
coal
relates
T h i s o f c o u r s e means t h a t c o a l w h i c h i s n o t now
known t o e x i s t w i l l b e a c q u i r e d f o r n o t h i n g .
to
the m i n e r a l s
an
easy
task.)
tionship
from
of
between
what r e l a t e s
adjusting
the l e s s e e ,
the
ex-royalty
owner
the
conditions
under which
held
by t h e
problem
owner'the
of
t h a t would
be
4.
all
first
the
magnitude.
and
of
always
an
staffs
rela­
lessor,
and
ascertaining
of.severed
coal
is
administrative
The l a r g e
would n o t
of
temporary
the
Inland
additions ,
Revenue
commend t h e m s e l v e s
to
opinion.
of
gradual
nationalisation.
a n y scheme o f
nationalisation
process
be
would
that
arise
undeveloped
are
(not
State as mineral
presents
to the
surface
t h e new t r i p a r t i t e
each p a r c e l
this
necessary
Possibility
tions
each
as S u r f a c e l e s s o r ,
and t h e M i n e s D e p a r t m e n t
public
in
t o "the
free
in
and
these
an a t t e m p t
minerals
different,
from
that
is
to apply
to
a
The
this
now b e i n g
necessary
there,
substituting
objections.
and m i n e r a l s
it
by
Is
gradual
considera­
principle
worked
examine
the
then,
to
respectively
two
separately.
UND aVELOPBjJ MIN.SRALS
5.
Time
of a c n u l s i 1 1 pn,..o,f undeveloped..minerals,.
None
of
sight
-
t h e arguments
t o make i t
the p r o p e r t y
t h e y should
There
necessary
in a l l
be a c q u i r e d
a lease
fied
the p r o p o s e d
that
of
the
State
It
when t h e y a r e a b o u t
simplicity
of
lay-out
as i t
for
the minerals,
area.
to be
fit.
would
It
to
acquire
that
developed.
this
sort.
apply
if
would
WOTIIO. a t
compensation
t o be made w i t h i n
of
one,
first
enough
The S t a t e ,
was a p r o p e r
for
is
about a p l a n
thought
claims
seems a t
immediately
minerals.
a particular
on such t e r m s
same t i m e a d v e r t i s e
owners
for
a n y o n e who w i s h e d t o w o r k a n y c o a l
State for
a lease
nationalisation
undeveloped
i s an a t t r a c t i v e
Under i t
for
from
to
the
satis­
grant
the
the
a certain date,
and
fT
pay them i n G o v e r n m e n t
their
currency,
b e met
(6)
out
of
(guaranteed
the
State
of
the i n t e r e s t
course
by t h e
:
petuate
to
do
private
acquired
nothing
for
suggested
-
value
is
effect,
if
those
to
The ,"poe 1 and
undeveloped
of
of
acquires
State
whose c o a l
do n o t
during
would
it
of
undeveloped
their
device for
overcoming
worth
quoting
full.
0oal
the
Their
to
per­
to
no a p p r e c i a b l e
(very
probably)
get
may b e r e q u i r e d
in
the
is
for
at
h a v e any -
t h e t i m e when
that
he c a n o n l y
lease
be
value,
the
way
will
its
realise
it.
acquiring.undeveloced
and P o w e r "
minerals
but
in
he must n o t
n
minerals.
gradually
just
change
n
c o a l were
know t h a t t h e y
Powor". p r o p o s a l
acquisition
is
the
it;
The a u t h o r s
to destroy
would
The o n l y
miners I s o
in
all
value for
by s e l l i n g
Exchequer)
undeveloped
have any,
who
full
If
not
whose c o a l
everyone
greatest.
that value
(7 )
But
above,
even
in
those
know t h e y
iti
entitled
is,
ownership^
outright,
or who do n o t
future
this
on w h i c h ,
royalties.
Sffpot,,, o f . d e f e r r i n g . h o . h u i s i t i p n . ; o f
But
be
securities,
m
favoured
on g r o u n d s
difficulty
of
economy,
referred
recommendations
gradual
and
t o above
were as
is
follows:­
"Vve p r o p o s e ( i ) t h a t a l l l a n d - o w n e r s e h o b e l i e v e t h a t
m i n e r a l s l i e u n d e r t h e i r l a n d s h o u l d be e n t i t l e d ,
for
a p e r i o d , s a y , o f f i v e y e a r s , t o make b y way o f
a n t i c i p a t i o n a c l a i m f o r c o m p e n s a t i o n , t o become
e f f e c t i v e i n the event o f the m i n e r a l s b e i n g taken
over;
( i i ) t h a t i f no c l a i m be l o d g e d w i t h i n t h e s t i p u l a t e d
p e r i o d t h e r i g h t t o make a c l a i m f o r c o m p e n s a t i o n
should l a p s e ;
( i i i ) t h a t a l l such c l a i m a n t s s h o u l d b e r e q u i r e d t o
a s s e s s t h e v a l u e o f t h e i r own m i n e r a l r i g h t s , w h i c h
a s s e s s m e n t s should b e r e c o r d e d w i t h t h e I n l a n d Hevenue
D e p a r t m e n t f o r t h e p u r p o s e of e s t i m a t i n g t h e death,
d u t i e s and o t h e r t a x a t i o n due from the e s t a t e s to
which they r e f e r ;
( i v ) t h a t t h e S t a t e s h o u l d bo empowered t o t a k e o v e r
t h e m i n e r a l s c o n c e r n e d , o r any p a r t o f them, a t a n y
t i m e , a t t h e v a l u a t i o n p l a c e d on them by t h e l a n d ­
at a valuation
o w n e r , o r , a t t h e o p t i o n o f the S t a t e
t o be d e t e r m i n e d by a r b i t r a t i o n .
i
OP,1,6,0lop3
8o
proposal
for
is,'
in
fit
to
time,
it;
should
but
at
minerals
is
to
(37-
before
find
the
the
l\
length
for
z years.
value
that
immediately
years
for
Thus c o a l
adopt
the
price
of
9.
payable
elapse
to
working
(z
years)
and
an a n n u i t y
cf
In
the
( o n a 10p
would
is
have
divided
is
£x f o r
if
by
it
two
likely
then
y
basis)
were
for
about
every
t o be
deferred.
value
is
is
likely
cento
But
value
at
not
of
what
to
be worked
i n terms
a deferred,
a future
time
as
is
will
for
value
of
unless
payment.
benefit
some f u t u r e
interest
years
the present
a contradiction
an i m m e d i a t e ,
that b e n e f i t
not
of
to
years
its
t h e v e n d o r w i t h compound
never
be
likely
result
the
to
of
than 1 per
present
(fix),
cent
which
implies
likely
value
SO p e r
and
it
royalty
£ 0
then,
annuity
full
undeveloped
for
be
deferred
valuing
t o be worked
than
a
of
years
likely
now l e s s
less
many
possibly
that
not
worth
coal
-
is
working
is
50 y e a r s ,
of
worked
is
compensation,
that
coal
which the
which
time
it
thinks
not at
is
paid
that
the p a r c e l
probable
This
be
State
come i n t o w o r k i n g
of
value
the
of
method
royalty
commencement
the present
t o be
the
should
(provided
time
of
date
the
when t h e y
the present
deferred
value
recognised
during whith
years)
acquired
t h e amount
estimate
the minerals
period
that
seme p r e v i o u s
New t h e
compensation
at whatever
he t h e
before,.
of
that
minerals
registered)
acquire
however,
of
Power",; p r o p o s a l .
w
effect,
each p a r c e l
has t e e n
t h e - O - o g l and
to
To
the
to
purchase
credit
on a sum t h a t
he
has
received,
Deferred, c o n f i s c a t i o n
same o b j e c t i o n
coal at
*value a t
is
a. f u t u r e
that
of undeveloped
applicable
date a t
date.
Ail
to
any scheme
something l e s s
such schemes
minerals.
for
than
amount
acquiring
its
in
The
market
effect
to
deferred
confiscation.
confiscation
to
adopt
period
it
and t o
50 y e a r s )
w i t h o u t c c-^pensatiun
and
reduction
market v a l u e
The o n l y e s s e n t i a l
10.
A register
is
to
market v a l u e
at
the
basis the
perpetuating
require
after
owners t o
the p a s s i n g
when t h e i r
istered
ensuring
is
that
acquired
exist,
of
coal
coal.
or
suspicion
would b e p a i d
of
he r u l e d
time
the State
a
progressive­
this
and
cut,
If
register
of
of
coal
private
of
to
is
but
and c o o l
in
full.would
This
in
fact
it
have t o ' b o
a penalty
any
"Cos 1 and
Or. b y b o t h .
costs
Power")
coal
The ' com'pi l a t i o n
and
unreg­
of
present
by
for
State
whether
commodity
against
taking
as a basis
of
value,
system
giving- the
question
t o award
if
grounds
under
the
time
a market
po.ssb.qs a m a r k e t a b l e
suggested.in
at
to
known-to
there are
m i g h t b e d o n e by
is
for
Obviously,
to a r b i t r a t i o n
prevented
full
to e x i s t
to give
scheme
r e a d y way
which i s
of which
full
a certain
t o pay n o t h i n g
n o t known
strong
can be
p a y them i n
­
accepted.
ownership
claims within
the Act,
"Goal
then, d e f e r r e d
the a l t e r n a t i v e
of undeveloped
system
follow.
the
i n which a
the
would
disguise.
put by t h e c l a i m a n t . on. h i s
death d u t i e s .
State­
automatically
between
the a r b i t r a t o r , power
Or ( a s
the value
did
the
11 ar p e a r s,
there
to take
certain
o n l y way,
sufficiently
the r i g h t
a
must be
the existence
for
in
simpler
acquisition
nothing,
claims..
him..
then
of
deferred
of
c o a l which
frivolous
and g i v i n g
rest
T h a t w o u l d b e a r o u g h and
registration
the claimant
would
is acquired,
for
for
would
after
market v a l u e ;
absence
gradual a c q u i s i t i o n
from
that
-
is
of
at
of
w o u l d h e much
of undevelpned...coal.
confiscation
On t h a t
coal
difference
scheme
it
i n t h e meantime
it
in
wanted
principle
announce
all
buy any c o a l
and P o w e r "
the
i s - t o be a d o p t e d ,
openly
(say
If
for
a. r e g i s t e r
o.f u n d e v e l o p e d
provided' that
not
coal
the
undertaken
But
by
would b e
troublesome
but
initiative
was I m p o s e d
on t h o
pointed
11.
Time
plan
out i n
of
is
open
the nest
acquisition
to
sorious
of
of
acquisition
as
to undeveloped
to cheese
o f making t h e
between
register,
title
either
and
In
with
of
the
practical
the
terms
but
it
of
ease
coal
could
coal
nay,
t o pay
tions
a lease
coal with
the
l e a s e but
of
(b)
favour
the
whether
for
the
and/
the
State
it
not
of
and
then,
The
gradual
be
summed
little,
lies
looking
if
in
into
the
A policy
the
State
would
justified
those
need
itself
carrying
equity,
--
out
to
would
terms
knew
be
applica­
of
the
of
the
H e r e a l s o -the b a l a n c e
The " g r a d u a l "
First
State,
the
it
from b o g u s
the
settle
in buying
it
to
money,
acquisition.
the
of
lead
terms u n t i l
Moreover,
in
advantage
c o l l u s i o n w i t h t he owner
cf
making
T h i s must be done
d e v e l o p m e n t would
was
anything,
questions
for
t h e pur-chase
of
administrative
policy.
protect
on two g r o u n d s . .
mercy
is
working
ooah
to
made i n
simultaneous
at
that
before
securing
open t o a t t a c k
coal
ultimate
when r i p e
object
In point
of
claims,
compensation.
of
the
difficulty
not w i s e l y - s e t t l e
for
for
The
the
difficulty
difficult
the
-- sunimar.y.
acquisition
In
there
the- " s i m u l t a n e o u s "
a lease
had
change
two,
assessing
acquisition
coal,
the
examining
ease,
clearly
what
simultaneous
Ig.,.,PQiat^fif ; Q o n y e n i e n q e -
difficulty
is
that
follows:
(a)
of
applied
objections
undevelopefl.. c o a l
advantages
the
claimant,
paragraph.
comparative
up a s
practicable,,
the- S t a t e - . .
even t h i s
are
quite
it
places
who can
the
is
in
policy
is
owner
of
determine
when c o a l
is
t o be w o r k e d ,
geographical
of
policy
of
some o w n e r s and a d v e r s e l y
unregistered
owners.
the Pinance
utmost
give
disfavour
relief
if
( )
shows t h a t
the
can f i n d
in
the
long
markets
But
the
a liability
t o meet
it.
Power"
gave
policy
is
proposed
This
for
to
in
the
be a p p l i e d
policy
to
royalties
to
for
the
for
i n payment
for
administrative
is
of
both developed
as
always
so.
policy
is
some
coal
the
cheaper
than
top
authors
of
too.
coal
is
of
the
that
from i t
whole
"Coal
and
a
:But" i f
(as
be
"gradual
acquired
by t h e S t a t e
of
the
and u n d e v e l o p e d
it
revenue
one i f
to
to
everything
any c o r r e s p o n d i n g
coal
the
the
theoretically
a strong
received
service
expenses
doing
each at
developed
the
issued
for
acquires
the
developed
"simultaneously"
be s u f f i c i e n t
and w i l l
has t h e d i s a d v a n t a g e
and i t
and P o w e r " )
and
look with
although
State without
it,
glaring
probably prove
reason that
rejecting
"Coal
it
would
Courts
sort,
for,
favour
administration
simultaneous
transactions,
on t h e
is
The
in
registered
t o buy s o m e t h i n g l e s s
simultaneous
imposes
run,
it
than
piecemeal
this
(since
in practice
outright
of
the
any l o o p h o l e
expense.
s h o u l d be more e x p e n s i v e
subsequent
as b e t w e e n
1909-IO
upon a n o m a l i e s
cheapest
"buy e v e r y t h i n g
arise
particular
Secondly,
of
they
unnecessarily),
in
to
others. '
experience
1
probably
to
a
can change v a l u e s
The
££Jri .- o f
c
it
Act
by pursuing
development,
a n o m a l i e s w o u l d be l i k e l y
of
arid,
ought
securities
coal,
and
well,
DEVELOPED COAL,
1
2e
, It
eous"
of
Developed
is
here
extreme
merely
wants
that
acquisition
a "gradual"
coal
the
are
of
administrative
most
serious,
a-fter
to work the
the
all
and t h e
existing
expiry
remaining
of
coal
gradual
"simultan­
therefore
Such a scheme i n
leases
if
it
the
to
of
advantages
a lease,
is
aoqvfcLsition .
difficulties
scheme w o u l d be g r e a t e s t .
form would l e a v e
that,
- possibility
alone
and
and when
its
provide
anyone
Crown, t h a t
application
minerals
owners
far
of
become
are
faulty
the
- ade ;
to
to
satisfy
inefficient
to
by t h e i r
the u t i l i t a r i a n
also
provide
particular
expire,
minerals
with
a view
fresh
one,
13.
Advantages
that
advantages
are
inherent
that
view.,
since,
minerals
present
value
vast
of
cancelling
without
that
the
the h a s t e
point
hands.
would not have
principal
nothing
of
or more.
as
of
the
the r o y a l t i e s
compared
o n l y be b a s e d on b e l i e f
in
of
the
for
time;
no
to
great
no d J- s t r i bu t i on
existing
required
developed
that
case.
paid might
Scott"
s t r e n g t h of
of
to
the
small.
does
substantial
continue
the
rights
coal.
It
A
policy,
the
the
the
comparatively
course,
of
of
e x a m i n e d and t h e i r
in favour
"Leslie
- a
point
part
royalties;
additions
now b e i n g
with the
avoided
scheme
remain
time;
w o u l d be
to
coal.
w o u l d be
a limited
"political"
a verdict
lease
developed
g r a d u a l a c g . u i s i t i o n jpf
t o meet
the
utilitarian
any one
;
forth.
necessary
w o u l d be no n e c e s s i t y
is
of
and g r a n t i n g a
as w e l l
the
disadvantage
Since
for
a -oery l a r g e
to be a l l
Departments
of
the
drawing
re-distributed;
Government
proportion
already
enable
and s o
would be
lease
view,
within
part
absorption
a simultaneous
just
is
would
neighbours,
waiting
frcm
at
the
difficulties
There
debt
It
go
any t i m e b u y up any
the
of
of
minerals
persons
Disadvantages
policy,
to
to the n a t i o n a l
practically
years
lease
unnecessary
developed
and o b l i g a t i o n s
The
may a t
previous
case.
it
the
does not
minerals
therefore,
State
granted
and t h e
facilitate
in
from t h a t
leases
staffs
the
are
quite
sums t o
of
more e f f i c i e n t
case,
is
But t h i s
gradual^ a c q u i s i t i o n
in
in. p r i v a t e
all
mining
is
Crown,,
ownership
now b e i n g w o r k e d m i g h t
addition
14.
of
The
haste
of
that
the
corrected,
To meet
to
of
the u t i l i t a r i a n
State
be
so.: n a s a l e a s e
compensation.
even
c a s e t h a t 'the
lay-outs
as
the p r o p e r t y
entitled
enough
that
must be
for
50
nationalisation
can
"political"
argument,
t.is
is
a . e o r i cus
d i a s. d v a h t a g 3 s ,
but
it
has
the
great
and
for
all
tion
will
The
merit
in
that,
the
Is
"gradual"
scheme'a
concerned
for
that
every
Grown on
known;
reversionary
gradual
is
buying
it
ought
at
the
to
of
in
of
lease.
the
at
the
dealing
the
and t h e
during
the
Practically,
of
at
the
is
to
lease
or
in
latter
State,
open,
the
whether
everyone
lessor,
as
would
too,
like
objection
that
the market.
all
full
necessity
with the
existing
mine p l a n t
the
State'a
would hang o v e r
The p o l i c y
top
compensa­
Under a
Moreover
with
once
for
finished.
undeveloped, c o a l ,
l^ase
reversion
p r o v e more
as
make no d i f f e r e n c e
end o f
is
the
acute
scheme
vests
claims
period;
of
cumbrous.
piecemeal
bought
the
aa w e l l
impossibly
coal
day,
period.
w o u l d be u n d e r
be l e s s
1
uncertainty
an . i n d e f i n i t e
"wner,
will
all
and t h e t h i n g
acquisition
it
it,
other
"simultaneous '
The
a certain
of
has
transition
a certain
state
lessee
almost
of
under
-mrst be made w i t h i n
.I t
:
be m o p r o l o n g e d .
liability
be
agony
ma t e r . ,
Theoretically
the
coal
unworked
and e q u i p m e n t
are
possession
the
would
be
at
likelv
end
to
expensive.
CONCLUSION.
15.
that
it
is
was n o t
by
the
a pity
It
that
would
the
reassex-ted by the
Judicature
problem
extent
Conclusion.
in t h a t
the
tionate
position
trouble,
claim
ago.,
now he
we s h a l l
The
of
being
quite
3-:u1t recaptured
by
their
acquisition
moment
e shall,
trying
to
will
on t r-i rh t..
probably
recapture
we
be
cannot
tin
royalties
exists,
practical
good b y t r a n s f e r r i n g
generally
Crown
to
the
shall
that
position
it,
minerals
disallowed
seeing
without
come t o t h e
to
what
dispropcr­
is
capable
undeveloped,
then
turn
I t is no u s e
here.
we s h a l l
royalties
the
following
position
as r e g a r d s
the
was
admitted
we a p p r o a c h
view
that
sa?
to a l l
when i t
recaptured
he
stop
be
And I f
probably
conclusions.
minerals.
the
with a single
could
first
of
Legislature
350 y e a r s
spirit,
probably
to
for
The
not
do
minerals
developed
the
system
of
any
from p r i v a t e
hard.s
to
the
Crown,
run i t s e l f
extent;
and t h e
out,
that
?;e
only thing
the
we a r e
thus f o r e g o i n g
have
to
that
interest,
to
this
in
leasing
as r e g a r d s
lease,
those
doing
the
reply
that
the
system
the . p o s i t i o n
expired.
that
leases
If
the
that
it
to
Scott"
remedy
that
ought
power,
regard
recaptured,
persons
and. t h a t
will
to
national
c e r t a i n l y have
allowed private
that
this
objected
with the
we h a v e
foregone
is
State
accord
we s h a l l
the minerals
"Leslie
therefore
of
in
leases
lease
as
ambition
by
to
fall
for
do i t
all
but,
to
if
well
anything
enough
lessees
with
that
In
acquisition
adopting,
or
we a r e
alternative
contemplates
to
policy
of
the
undeveloped
facing
is
to
to
the
the
up t o t h e
"simultaneous"
the
without
R.
of
there
acquisition
is
is
of
private
if
no
risks
of
LANE-FOX.
of
either
that,
difficulties,
C.
hands,
principle
conclusion
while
to^ t h e m .
principle
adopted,
pointed
no r e v e n u e ,
private
an
spending
impossibility
coal
extent,
be
in
coal
or
t h e n be
commend i t s e l f
practical
less
will
producing
perpetuating
policy
of
to
of
a grievance,
a polic^r that
minerals
is
machinery
It
forced, back
nationalisation
the
of
t o a greater or
confiscation,
rights,
of
Scott"
neighbours -
on m i n e r a l s
view
policy
acquisition
private
can be e x p e c t e d
And s o ,
outright,
"Leslie
revenue-producing
one t h a t
gradual
coal
the r i g h t
and t h e
absorb t h e i r
the T r e a s u r y
that
in,
a good many m i l l i o n s
leaving
decided
undeveloped
i n t h e meant'me
of
of
let
Crown any m i n e r a l s
power
w h i c h we h a v e
acquisition
not
the
to
stop-gap.
We s h a l l
out
the
terms
we h a v e a l r e a d y
needs
as a
the
we s h a l l
to
l e a s e s have
that
see
do i s
can. o n l y r e c a p t u r e
we can r e s t o r e
may r e m a i n a f t e r
to
all
a
sound
and
confusion
minerals.