CO129-534-10 Sale of Marine Lot leases 16-4-1931 - 17-11-1931 — Page 13

2.

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(3) The Crown leases are silent on the question of whether

compensation should be paid when the land reverts to

50 44706/14.

the Crown on the expiration of the term, but it is clear that no claim for compensation could be upheld. But though on the final expiration of a leasehold term the

title of the tenant to demand renewal is not admitted, it is recognized that the principle of auctioning the

lands, with the buildings erected by the tenant, is not applicable, and in practice a further term is granted to the former tenant at a re-assessed Crown rent on

payment of a reasonable premium, which takes into

consideration the present day value of the land. In

this connection please see Mr. (afterwards Viscount)

Harcourt's despatch No.12 of 14th January, 1915. It

is not considered necessary or desirable to add to the

Crown leases any stipulation that on the expiration of

the term the land shall revert to the Crown without

compensation. It does so revert without express

stipulation and, if such a stipulation were now inserted,

it might create an impression that there was at least

some doubt as to the position under leases in which no

such stipulation occurred.

2. As Mr. Ruttonjee made his application several

months ago, I should be glad if I might have your approval of

the issue of the lease to him by telegraph.

I have the honour to be,

Sir,

Your most obedient, humble servant,

Live

Govemor, &c.