KARAMEA SPECIAL SETTLERS (REPORT BY MR. A. MACKAY ON THE PETITION OF).

Appendix to the Journals of the House of Representatives, 1877 Session I, D-07

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1877. NEW ZEALAND.

KARAMEA SPECIAL SETTLERS (REPORT BY MR. A. MACKAY ON THE PETITION OF).

Laid on the Table 12th November, and ordered to be printed.

No. 1. Mb. A. Mackay to the Undeb Seceetaey for Immigeation. Sic, — Government Buildings, Wellington, 20th October, 1877. In pursuance with a request contained in a memorandum by the Hon. the Minister for Immigration, that I should proceed to the Karamea Special Settlement to inquire into and report generally as to the accuracy or otherwise of certain charges made by the settlers in a memorial to the House of Representatives, dated 17th August last, against Mr. E. J. O'Conor, the Government Agent there, and also to report generally as to the progress and prospects of the settlement, I was directed by the Hon. the Native Minister to carry out the intention at the earliest possible opportunity. I accordingly proceeded there, and caused notices to be circulated amongst the settlers on my arrival, informing them that an inquiry would be held touching the aforesaid allegation, and appointed the 20th September to hear and receive evidence. The inquiry lasted four days, and the utmost latitude was given to every one to state his case at length, without reference to the rules of evidence. Of the 46 persons notified to attend the inquiry 37 attended, and were examined. On investigation it was found that, of the 39 persons who signed the memorial, 15 were composed of persons not classed as special settlers and persons who did not belong to the settlement. The number of special settlers who signed the memorial was 27, and 19 did not sign. The evidence of those who were examined will be found attached in Appendix B; and, after giving the matter full consideration, I beg to report that the allegations contained in the memorial are altogether unsupported. The evidence taken impresses me with the conviction that the charges against M*. O'Conor have been created by a feeliug of distrust on the part of the memorialists against him, combined with a feeling of jealousy and suspicion against each other, and that this combination of causes has led them to magnify suspicion into certainties, and to form conclusions in many instances altogether unwarrantable. In considering the whole question, it has to be borne in mind that numerous disadvantages have had to be encountered in founding a settlement in an inaccessible district like the Karamea, with a people entirely devoid of colonial experience ; and that the measures that had to be enforced to cause them to take an active share in the duties required of them, combined with the mistaken attitude said to have been assumed towards them by Mr. O'Conor, has probably excited popular feeling against him; otherwise it is difficult to realize why such a strong feeling should exist against one who has done them many individual acts of kindness, aud who has evidently striven his utmost, as far as laid in his power, to make the settlement a success. Very little progress has been made at the settlement up to the present time. The chief cause of this is attributable to the want of suitable land to locate the settlers on, and the difficulties attendant on settling a bush country in an inaccessible district without any facilities for getting on the land. One of the chief obstacles to the advancement of the settlement has been caused through all the best land having been alienated to private purchasers in 1867, not one of whom has settled on it or made any attempt to utilize it. The land alluded to is situated mostly on the north bank of the Karamea River, and near to the port; and had it been available for occupation, fewer difficulties would have had to have been encountered in locating the settlers at the outset. Owing to this land being unavailable for settlement, the Provincial Government were compelled to proclaim a block of 4,000 acres on the south bank, under the provisions of " The Nelson Special Settlements Act, 1872." It was upon this land that the first families who landed at Karamea at the latter end of November, 1874, were located. The selection proved to be a very unfortunate one, owing to the unsuitable character of the soil, and the settlers, after two years' fruitless labour, have been compelled to abandon it with all their improvements, and commence afresh on a block of land farther up the river. This compulsory abandonment of their first holdings, after just succeeding in making themselves comfortable, tended to dishearten them on making a second attempt; but fortunately the land where they are now located is much better adapted for agricultural operations, and has already yielded on the small patches that have been I—D. 7.

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tried a far more satisfactory return for the labour expended on it. This luis been the means of reviving the hopes of the occupants, and they confidently anticipate, with the aid of a little work from the Government for a time, to ultimately establish themselves in a comfortable position. On the north bank the settlers are much more comfortably housed, and more progress has been made in getting the land into cultivation; bat this is attributable to the circumstance of their being located on the land they occupy from the first; and, although some of it is not very suitable for the occupation of men whose living will have mainly to depend on the crops they can raise, this portion of the district has a more attractive appearance at present than the part situated on the south bank. I append a return by which it will be seen that the aggregate population of the settlement numbers 193, and of these, 91 are children for whom it is desirable that some arrangements should be made to place education within their reach ; but it is very difficult at the present time, owing to the absence of roads and other facilities of getting about, to devise a satisfactory plan that would answer the requirements of the settlers on each side of the river. As matters are now situated, there are 52 children on the North Karamea and 39 in the South, and the two districts are divided by a rapid and dangerous river, an obstacle that would deter the children from attending one common school. The only feasible plan that presents itself under the circumstances is to erect two schools for the purpose, and require the teacher to attend three days a week at each. The buildings need not be of an expensive character, so long as they are made snug and warm, and of sufficient dimensions to accommodate the children who attend. This is a matter that will no doubt receive the attention of the Education Board at Nelson; but it seemed desirable to draw attention to the necessities of the case, as the settlers are very anxious to obtain education for their children: moreover, it was one of the conditions of settlement that as soon as practicable a school should be established. Besides the special settlers included in the return, there are a few persons in the district engaged in mining pursuits, who, with their families, make a further addition of 25 to the population of the district, or a total of 218. The approximate number of acres in cultivation and in course of being cleared within the settlement is 181; this, however, does not include the land in the South Terrace, that has had to be abandoned. Tlie settlers own amongst them 228 head of cattle and 108 pigs, but of the former, 100 head belong to one person. Concerning the future prospects of the settlement, very little information can at present be afforded. One great obstacle to its success is, as far as is yet known, that it does not possess any resources of its own, consequently the settlers will have to rely entirely for a living on what they can raise off their land, or on extraneous aid, without a payable gold field should be discovered in the neighbourhood. The extent of the available land in the district has been variously estimated at from 20,000 to 60,000 acres, but at the time this estimate was made very little was known of the character of the soil. From information now received from the District Surveyor, it would seem that, out of a district originally computed to contain a large area of suitable land, there is only about 4,000 acres that come within that category, the bulk of the country being composed of poor terrace and sandy land, interspersed with impenetrable bogs and lagoons. The district, although a timbered one, contains very little timber fit for sawing, and none that would attract a person of capital to erect a mill. No minerals have as yet been discovered, with the exception of gold, and that only in small patches. Although the settlement, owing to the numerous drawbacks to be contended against, cannot be considered a success, one fact must not be lost sight of—that it has been the means of establishing a centre of population at a place which under ordinary circumstances would probably not have been peopled till a remote period ; and, though no immediate results have been attained, it will be the means of enabling miners and others to prospect the alluvial country believed to exist in the interior with less risk of starvation than they were formerly exposed to, and will no doubt also ultimately lead to the location of settlers at suitable places along other parts of the coast. The total cost of the settlement from the commencement to the 30th December, 1876, amounts to £11,199 Bs. Bd. I purposed analyzing tho expenditure under the several heads enumerated in Appendix D. 1, if time had permitted, but, owing to being unexpectedly required to come to Wellington immediately on my return to Nelson, I had not the opportunity of obtaining the necessary data to do so, but can supply the information in a supplementary report, should it be deemed desirable. A large proportion of the expenditure has been incurred in forming an inland track between Little Wanganui and Mokihinui to connect the settlement with Westport. The aggregate cost of this work, including survey and exploration, amounts to £7,500, aud the length of road formed is 18 miles. The completion of this track facilitates communication with Westport, and makes it possible, iv event of serious accident or illness, to obtain medical assistance more readily than by the track at present used along the coast. It will also enable the settlers in cases of emergency to obtain supplies from Mokihinui, or to drive their stock to market when their cattle increase. Before the track was formed the district was practically unapproachable by land from Mokihinui, the nearest place of communication with Westport, except by travelling along a difficult coast line of 16 miles at considerable risk and the exercise of a large amount of physical endurance, the track used being impracticable to any one but pedestrians, and those only of a class well inured to rough travelling. Besides rendering the Karamea and the country north of it accessible by land, the formation of the track afforded employment for the settlers, and enabled them to earn sufficient means to procure provisions and other necessaries while engaged in establishing their homes in a district where no other opportunities were available of obtaining a livelihood. A small expenditure is now required to make this track available for summer use in clearing the slips and repairing two or three culverts and boggy places. A sum of £00 or £100 would probably be sufficient. It is highly desirable, before the support accorded to the settlement by the Government is entirely withdrawn, that the assistance already afforded should be supplemented by a further expenditure for

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a time, to give the settlers a fair chance of establishing themselves ill a comparatively independent position. Owing to the circumstance of many of these people having to commence afresh in consequence of having had to abandon their first holdings through the unsuitable character of the soil, it has placed them in an unfortunate position ; and, if some assistance is not afforded them, they will be compelled in all probability to leave the district. There are others also in the settlement who need further assistance to establish themselves comfortably. An expenditure of a few hundred pounds in opening up some additional tracks in the district to facilitate the means of getting about, coupled with the amount that will have to be spent on surveys, will give the settlers a fair chance of getting over the difficulties that will have to be contended with before they can dispose of their present season's crops. The County Council also will probably expend the amount received from rates levied in the district, inclusive of the subsidy payable by the Government, which, in addition to the expenditure recommended above, will possibly suffice to tide the settlement over its present necessities. It is desirable also that a small sum should be devoted, out of the bonus proposed to be expended in aid of gold discoverers, to assist in prospecting the Karamea District. The principal drawback at the present time is the difficulty experienced by exploring parties in the want of facilities for getting about, which precludes the possibility of obtaining a stock of provisions to enable a continuous search being made. Many of the tributaries of the Karamea are known to be auriferous, especially the streams that culminate at that part of the river known as the Karamea basin. This part of the river is at present inaccessible, owing to the precipitous character of the country to the eastward of the portion now- occupied by the settlers. It would be impossible, from all accounts received of the character of the country, to make a track along this part of the river excepting at a great cost, and the stream is too rapid to admit of canoes being used for the transport of passengers and provisions. An idea prevails that it would be possible to reach the Upper Karamea by a route believed to exist to the southward of the range that forms the valley through which that river has its course, by starting from behind the land now occupied on the south bank and travelling in a south-easterly direction. A short exploration in that direction would soon determine this, and, if a road should be discovered, a special benefit will De conferred on the district in affording a means of ultimately connecting it with the settled districts on the eastern side of the Mount Arthur Range. An available track is known to exist from the Upper Karamea by way of the Wangapeka to the Waimeas, and it only requires an exploration in the direction indicated to determine whether it is possible to connect the remaining distance with the coast. The discovery of a payable gold field at the Karamea is the only thing that will give the place an impetus, and enable the settlers to dispose of their produce in a near market, in place of having to send it to Westport or elsewhere, with the risk of having to compete with other producers. As a means of enabling the settlers to dispose of their produce, and also to obtain supplies from either Nelson or Westport, it is highly important that a steamer should be subsidized, to call at least once a month, or once in six weeks at the furthest, from one of these places, to establish a communication between the settlement and other ports. AVestport is the nearest and most accessible port, and, apart from the difficulty of steamers from Nelson making regular trips there, the settlers would be able to dispose of their produce more advantageously in the Westport market than in Nelson. One point the settlers were very anxious to be assured on was the position they stood in with regard to the land they had taken up under the special-settlement scheme. According to the terms contained in the prospectus of the settlement, any person considered to be eligible as a special settler was to be allowed at least fifty acres of land at an annual rental of 2s. per acre for fourteen years, and at the expiration of that time, provided the rent was paid punctually, the leaseholder, without further payment, would be entitled to a Crown grant of the land. From information received from Mr. O'Conor, it would seem that applications have been lodged with the Waste Lands Board at Nelson on behalf of the settlers, under the 75th section of " The Nelson Waste Lands Act, 1874," which provides for the issue of grants to persons applying to occupy land in conformity with the provisions of this clause. I do not offer any suggestions for the future administration of the affairs of the settlement, as I presume it is the intention of the Government to hand it over to the control of the local authorities as soon as the settlers have fairly established themselves. Attached is a plan showing the original and present location of the settlers, the lines of road made, and those proposed to be made to give better facilities of communication to the settlers on each side of the river. Amongst the works needed is a drain along the Pakihi Road, which is impassable without one. A drain is also needed along the road line abutting sections 72 to 96. This work, if undertaken, will assist in draining a large swamp suitable for occupation, besides forming a line of communication between the Pakihi Road and the North Terrace Road. A road is also needed along sections 35 and 40, and by the dotted line across sections 54,1, 2, and 3to the next cross road, and from thence up to the river, to afford a means for the settlers in that locality and on the south bank to communicate with other parts of the settlement without interruption by floods. Should the Government decide upon making any further expenditure to assist the settlers to tide over their present difficulties, it would perhaps be desirable, to insure that every one received a fair share, to place the supervision of the work under a competent overseer, who should be intrusted to ascertain the names of such of the settlers who absolutely need pecuniary assistance, and divide the work amongst them respectively, according to their necessities. The following papers in connection with the inquiry are attached, viz.,— A. Commentary on the evidence taken at the inquiry. B. Notes of proceedings and evidence. C. Return of population. D. Returns of settlers employed on public works, &c, showing the amounts earned by each respectively. I have, &c, The Under Secretary for Immigration. Alexander Mackay, Commissioner.

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APPENDIX A. Commentaey on the Evidence taken at the Inquiry held at Karamea touching the allegations contained in the subjoined heads of a Petition from the Special Settlers there to the House of Representatives, dated 17th August, 1877. " That, as special settlers, we have been permitted to take up land at the Karamea on deferred payments. " That, in occupying land in such a remote locality, we were assured by the Nelson Provincial authorities—l. That we should be supplied with stores at moderate prices. 2. That work would bo given us whereby we might earn money sufficient to pay for such stores, and also to pay the instalments of money falling due on our land. 3. That a subsidized steamer would call at the port." According to the terms of the prospectus issued in November, 1874, under the scheme for founding a special settlement at Karamea, it was not intended to supply the families located there with provisions longer than seven months, but in a fresh prospectus issued iv February, 1875, greater latitude is given to the intention. In the latter prospectus it is notified that provisions and other necessaries would be supplied at cost price until the settlement had received a fair start. This arrangement, according to the evidence, has been adhered to, there being only a few dissentients, and their complaints had reference to other articles rather than to stores. Seven months' work is all that is promised in the prospectus, and no assurance was either given or implied that regular work would be given to enable the settlers to pay the instalments falling due on their land. On it being found that the settlers were not in a positioii to maintain themselves at so early a period owing to the many difficulties they had had to contend with in forming a home in an inaccessible district, and the liabilities they had contracted with the Government for stores, &c, while so occupied, additional work was given them to provide for their immediate wants, and to enable them also to pay off their liabilities. There was no positive understanding that a steamer should call regularly. The first arrangement was for six months, and afterwards extended without any promise of continuance. Considerable difficulty was subsequently experienced to induce Messrs. N. Edwards and Co., the proprietors of tho line of steamers plying on the coast, to send a boat to the place, owing to the heavy expenditure incurred by them in floating one of their steamers that got on shore while entering the river. "That for some time provisions were supplied us at moderate prices, in return for labour done on roads, but that we received little or no cash. —"Great complaint has been made by the settlers at not being paid in cash for labour done, and also against what is termed " the truck system " that prevailed at the Karamea while provisions, &c, were supplied them by the Government. The system complained of, however, was to a great extent unavoidable. At the commencement of the settlement, the settlers, having no means of their own to enable them to settle on the land, became indebted to the Government for the tents, tools, and other necessaries supplied them. The Government had also to establish a store to supply them with provisions. Owing to the inaptitude of the people for the life they were suddenly required without any previous experience to adopt, a long time elapsed before they gained the knowledge requisite for a bush life. This circumstance, coupled with the want of frugality, and the desire manifested by many to obtain as large a credit as possible at the store, augmented their liabilities to the Government; consequently it took a long time before they worked off their indebtedness. It is patent, therefore, while they were so engaged it was unreasonable to expect that money could be paid for work done, more especially as the chief motive for giving them employment was to enable them to get out of debt. The Provincial Government was averse to commencing a system of store-keeping, but no private individual would open a store at the settlement without a guarantee; the Government, therefore, had no option but to open a store to supply the settlers with provisions. " That, without notice to your petitioners, the Government store has been sold and its contents to the director of the settlement, or his trading partners, and that the price of provisions has been raised to an exorbitant degree."—The first part of this allegation is contradicted in evidence. Only five persons out of the number examined (thirty-six) supported the assertion. Ample notice was given of the intention to sell the store at a public meeting held at the settlement about the 15th February last. Efforts were made by Mr. O'Conor to dispose of the store to persons in Nelson and AVestport, without avail, and the building and stores were subsequently sold to Mr. Dolphin with the consent of the Government. The terms upon which the store was offered for sale were, that the building should be taken at a valuation, and the balance of stock at Nelson cost price, with freights added, without guarantee as to trade or tenure, and reserving a small store on the wharf for Government use, in case it was decided to send provisions to the settlers after the store was sold. Concerning the statement " that the price of provisions has been raised to an exorbitant degree " since the sale of the store, the arrangement with Mr. Dolphin on taking it was that he was to sell at AVestport prices. This, on comparing his tariff with the Westport prices, he appears to have done, with the exception of flour, which is Is. per 100 lbs. dearer than at Westport; in many other instances the prices are under. Flour had only been raised in price since the 19th July last, and that was in consequence of the stock running short. Mr. Dolphin offered every facility to examine his books, and was most desirous that it should be done, as insinuations had been made that his pricelist differed from the items charged in the settlers' accounts, an assertion that proved utterly fallacious on examination of his books. A comparative list of prices charged at Karamea, Westport, and Mokihinui is appended, by which it will be noted that there is little difference between Karamea and Westport, and any difference that exists is in favour of Karamea. It will have to be borne in mind, also, that Mr. Dolphin's is a retail business, on the credit system, in a district where the probability of being paid is very uncertain, and if further evidence is wanted to contradict the assertion "that provisions have been sold at exorbitant prices " since the store came into private hands, the fact that a small cargo of provisions brought to Karamea by a AVestport merchant last month was disposed of wholesale for cash at prices slightly under the cost of the same articles sold at the Karamea store on credit, may be accepted as a sufficient refutation. Subjoined is a list of the goods sold wholesale for cash:

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Flour (Christchurch), 245. per 100 lbs.; tea, per box of 12 lbs., 345., 2s. 9d. per lb.; sugar (Company's) per bag, 6d. per lb. ; oatmeal, 245. per 100 lbs. The same goods are quoted at Westport as follows, namely : Flour per 100 lbs., 225. to 25s ; tea, per lb., 3s. to 3s. 6d.; sugar, per lb., sd. to 6d. ; oatmeal, per lb., 4d. The prices charged on retail for credit on the same goods at Karamea are—Flour, per 100 lbs., 225. to 265. ; tea, per lb., 3s. to 3s. 6d. ; sugar, per lb., 6d. to 6Jd. ; oatmeal, per lb., 4£d. The price charged by Mr. Dolphin for flour, on first taking the store, was 225., but latterly he rose it, first to 245. and then to 265. This was owing to the price rising in the market, and his stock running short. The price of tea was raised from 3s. to 3s. 6d., to cover the extra cost incurred in packing it from Westport, a distance of fifty miles. "That the distribution of labour has been made in a most capricious manner, many of your petitioners getting little or no work, while others have been fully employed." —This allegation is altogether disproved in evidence —only four out of the thirty-six persons examined supported this view of the matter. A perusal of the evidence will show that there is a close similarity in the majority of the statements made at the inquiry, which in itself is sufficient grounds for the supposition that the evidence given was the result of misrepresentation. In further disproof of the statement a return of the settlers employed is attached (Appendix D), by which it will be seen, by the amounts set down opposite the names of the persons enumerated therein, that, without any attempt at mathematical precision in allotting the work, a fair division of labour has been meted out to each. " That no steamer has called at the port for many months past, and that therefore your petitioners have been debarred from obtaining stores from a cheaper market, and also from getting rid of any produce they may have had for sale." —This allegation is to a certain extent contradictory in the face of the statement previously made, that the memorialists " had received little or no cash for work done." It was proved in evidence that, even if a steamer had called, the amount of produce for sale had been very small. A steamer called at the port in April last, on which occasion the majority of the settlers were supplied by the Government with three months' stock of provisions, and since that they have procured a further supply on credit at Dolphin's store. " That they have grave reasons for supposing and verily believe that large profits have been made by the present director of the settlement in trading transactions with your petitioners, in excess of any profits contemplated in tho original scheme of settlement." —No satisfactory evidence was adduced in support of this allegation; while, on the other hand, both Mr. Dolphin and Mr. O'Conor deny its anthenticity. Mr. Dolphin asserted positively that Mr. O'Conor was not in any way associated or interested with him in the store, or in anything pertaining to his business. The meaning of the latter part of the assertion is not altogether clear as to what is meant by the words " in excess of any profits contemplated in the original scheme of settlement," as no profits were expected to accrue under the arrangement for supplying the settlers with stores and other necessaries while the store was under the control of the Government, the sole object being to provide for their wants. But it is difficult to understand upon what principle the supposition is based that on the store coming into private hands the owner would not be entitled to make a reasonable profit on his venture ; more especially as the bulk of the consumable articles bought from the Government, which the settlers appear to imagine they ought to have obtained at cost price, have long since been disposed of. The assertion that Mr. O'Conor had secured a large quantity of land at the settlement, to the extent of monopolizing all the best of it, is incorrect. The only land owned by him is some freehold sections purchased by him from the Natives; the whole extent is only 200 acres, for which full value was given. The cattle running at the settlement in which it was currently rumoured that Mr. O'Conor had an interest belong, with the exception of five head, to Mr. Dolphin. The five animals alluded to are running on Mr. O'Conor's land at Maori Point. Another point that ought not to be lost sight of in considering the question raised by the aforesaid allegations is, that at the time Mr. Dolphin took the store the majority of the settlers had received three months' supplies, and on these provisions being consumed they have for the most part been supplied on credit by Mr. Dolphin—a circumstance that has operated very disadvantageously to his interest, as he has over £500 now due to him in that way, with every probability of having to wait a long time for his money. The following letter from Mr. Dolphin indicates some of the difficulties he has had to contend with :— " Karamea, 26th September, 1877. "Sic, —As you are now inquiring into certain charges made in a petition presented to the House of Representatives by some of the Karamea settlers, calculated to injure me, I beg leave to offer you the following information respecting my business, which you are at liberty to use as you may think proper: —- " As to the prices I have paid for Government stores, I have no cause for complaint, and as to the different articles that I bought from the Government since Mr. O'Conor commenced selling off the Government property, none have been sold to me at a low price as represented, while I consider the price of several things has been excessive. " My offer for the store and goods was accepted, and I have faithfully carried out my part of the agreement. " The prices that I have since charged at the store have been lower than Westport or Mokihinui, and I only kept articles of good quality, and charged the settlers on credit the same prices that others paid me for in cash on the counter. I have supplied them entirely upon credit without any security since the 27th March last. " The long delay in their payments caused me much inconvenience, but I was obliged to overlook it, as Mr. O'Conor represented to me that the Government had not made any arrangement for the payment of money due to the settlers. "About Ist August last my stock was getting low, and, wishing to renew it, I asked Mr. O'Conor to take some steps to have the men paid, or otherwise I should close the store. Shortly afterwards he paid me on sundry orders the sum of £199 ss. 6d., and later on a further sum of £197 18s., leaving a large balance of orders unpaid.

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" In consequence of the delay in this payment I put off getting in supplies until this month, when I sent an order for goods to Westport to be forwarded to me by the p.s. ' Result,' a boat subsidized by the County Council, but my goods were refused, and Mr. Bailie, the merchant at Westport, was told that no goods would be taken for me. " The goods brought here per ' Result' by Mr. Stitt were sold wholesale and for cash on the wharf at prices varying very little from mine. Some things were sold for the same price, others slightly cheaper, and others dearer, than I have been charging on a retail and long-credit system since last March. " A number of the poorer settlers whom I have trusted have been unable to obtain any supplies from Mr. Stitt, and care was taken that I should not obtain any by the boat to meet their wants. The greater number of the settlers having received large supplies by the ' Result,' they will not require much for the next three months. "I have, &c, " H. Dolphin." " That the subsidizing of a steamer to call periodically at the port, and the outlay of a moderate sum of money on public works within the Karamea District will make the settlement a success." — It is very important, in the interest of the place, that a steamer should be subsidized to call there periodically. At present, owing to the Karamea being a new and comparatively unknown port, combined with the want of inducement, owners of steamers are disinclined to send a boat there without a subsidy, and, unless an arrangement of this kind can be made, the settlers will be cut off from communication from other places. Moreover, Government, having established a settlement in so isolated a place, cannot in justice to the people located there relinquish their charge until the usual operations of trade induce private individuals to undertake to supply the want now r felt. I purpose recommending in my report that a small sum of money should be expended on public works. A. Mackay.

COMPARATIVE LIST of PRICES at KARAMEA, WESTPORT, and MOKIHINUI.

Karamea. Government Store. Dolphin's. AVestport. Mokihinui. Axes Axe-handles ... Bacon Butter Beef Candles Castor oil Cheese Coffee Currants Biscuits Flour Jam Hops Dried apples ... Kerosine Hams Maizena Matches Mustard Mutton Oatmeal Onions 9s. Is, 6d. Is. 6d. Is. 6d. 6d. Is. 3d. Is. Is. 3d. Is. 9d. 8d. 9s. Is. 6d. Is. Id. Is. 6d. 5d. to 6d. ... Is. 3d. Is. Is. Id. Is. 9d. 8d. 4d. per lb. ... 22s. to 26s. ... Is. per lb. ... 3s. Is. 4s. per gal. ... 8s. 6d. to 9s. Is. 6d. Is. Is. 6d. 7d. to 9d. ... Is. 3d. Is. Is. Is. 9d. 8d. 6d. to 9d. ... 22s. to 25s. ... Is. 2s. lOd. 3s. to 4s. Is. Is. 2d. to Is. 3d, Is. 6d. 8d. Is. 3d. Is. Is. 3d. Is. 9d. to 2s. 9d. 94 27:'. to 30s. Is. 21s. per 100 lbs. 3s. per lb. ... Is. 3d. per lb. 3s. per gal. ... Is. 6d. Is. 3d. per box ... Is. 3d. per tin 6d. per lb. ... 4Jd. „ ... 4d. „ ... 2s. Is. 3d.to4d. p. box Is. 9d. 5d. to 6d. ... 4id. 2d. 2s. 6s. per cwt. ... Is. Is. 6d. 2s. 9d. per lb. ... -id. „ ... 2d. „ Is. 2d. „ ... 6d. to 6|d- ... 3s. to 3s. 6d. 6s. 6d. per lb. ... Is. Is. 2s. 6d. 2s. 6d. per doz. 2s. 6d. to 8d. ... 4d. 3d. 2s. 6s. to 7s. ... Is. Is. 6d. Is. 6d. 9d. to lOd. ... 5d to 6d. ... 3d. per lb. ... Is. 4d. 5d. to 6d. ... 3s. to 3s. 6d. 5s. 6d. 6d. per lb. ... Is. Is. 4s. 3d. per gal. 4d. per box. 8d. 8s. per 25 lbs. Pepper Potatoes Pick-handles ... Painkiller Pills Raisins Rice Salt Is. 6d. Is. 6d. 2s. 9d. per lb. ... 4d. „ ' ... 2d. „ Is. per bar ... 4d. per lb. ... 6d. „ ... 3s. „ 5s. „ 6d. „ ... Is. a bottle ... Is. 2s. 5d. per lb. ... Is. 5d. 4d. Is. 6d. Soap Soda Sugar Tea Tobacco Treacle Vinegar Salad oil Steadman's powders Nails 6d. 3s. 6d. 6s. Is. Is. 4d. to 6d. ...

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Memo.—The Government store was sold to Mr. Dolphin on the 27th March, 1877. Flour at Dolphin's store was raised on the 20th June, to 245. per 100 lbs., and on the 19th July to 265. Tea was raised to 3s. 6d. on 2nd August. This was owing to it having to be packed from Westport, a distance of 50 miles.

Fibst Peospectus. Karamea Special Settlement. 1. That about 3,000 acres of land on the left bank of the Karamea be set aside in the first instance for a special settlement. 2. That a person be placed in charge, to whom be intrusted all stores and Government property, who will superintend all public works, and from whom the new immigrants may obtain advice and tuition in bush and road work, and in cultivating the land, &c. 3. That thirty families be the first settlers; the head of each family to be employed on public works for one month, at 6s. per day, full time, and for three days in each week for six months certain; afterwards at a wage of Bs. per working day, if desired. 4. That rations be served out to those requiring them for the seven months they are engaged on public works at cost price ; payment of same to be a first charge on the wages earned. 5. That an allotment of fifty acres of land, also an allotment of about five acres, be leased to each' head of a family for fourteen years, at an annual rental of 2s. per acre, and at the end of fourteen years a Crown grant to be given to each leaseholder without further payment. 6. That the land so allocated be chosen by lot. 7. That one of the settlers be appointed storekeeper, under the control of the overseer, on terms to be agreed upon. 8. That 5 cwt. of seed potatoes and 1 bushel of oats or rye seed be given to each family, to make provision for winter use. 9. That a tent-cover or tarpaulin be furnished to each family if required, the cost of which to be deducted in equal monthly instalments from the wages due to such family. 10. That tools be furnished to the settlers at cost prices, and payment be taken in equal amounts monthly. 11. That a boat be placed under the control of the overseer for the use of the settlement. The Waste Lands Board will be recommended not to grant leases to any persons of lands selected under these regulations, unless the persons selecting or applying to lease such lands shall personally occupy the same, and give sufficient evidence of their intention to become bond fide settlers thereon, by clearing and cultivating or otherwise improving a fair proportion of the land allotted to them. A fee of £1 will be payable to the Waste Lands Board upon every application for each separate block of land applied for, and also a deposit of 6d. an acre towards the expense of the survey for every acre of land applied for; but the amount so deposited for survey will be placed to the credit of the applicant towards the payment of his rent. AVm. Rout, Nelson, 20th November, 1874. For Provincial Secretary.

Second Peospectus. Nelson Special Settlements. 1. Special settlements will be formed in the Province of Nelson, on land especially reserved for that purpose, under arrangements with the General Government, and subject to regulations, of which the following are a general outline. 2. Persons deemed eligible will be allotted at least fifty acres of land per head of family, at an annual rental of 2s. per acre for fourteen years ; at the expiration of that term the leaseholder, without further payment, will be entitled to a Crown grant of the land. 3. The head of each family will, at his request, be employed on public works, such as roads and streets, in connection with the settlements; during the first month at 6s. per day full time, or at the option of Government on piece-work estimated at that rate of wage; afterwards he may obtain employment for half-time during the ensuing six months at the rate of Bs. per day, or at the option of the Government on piece-work estimated at that rate of wage. 4. Provisions and other necessaries will be supplied by the Government at cost price until the settlement has received a fair start. Payment for the goods thus supplied will constitute a first charge upon the money earned by parties obtaining them. 5. When necessary a person will be stationed at each settlement, from whom settlers may obtain advice and tuition in bush, road, or other work. 6. The primary object of forming the special settlements being to assist immigrants and others in making homes upon the land, to insure that result the Provincial Government reserve to themselves the absolute right to refuse both work and provisions to any disorderly persons, or to such persons as may neglect to clear or cultivate the land allotted to them. 7. As soon as practicable a public school will be established at each settlement. 8. Special regulations will be made in the interest of settlers to provide assistance in obtaining cattle, sheep, pigs, poultry, seeds, plants, fruit trees, &c, for such settlers as may require it. 9. The Waste Lands Board will be recommended not to grant leases of lands selected under these regulations unless the persons selecting or applying to lease such lands shall personally occupy the same, and give sufficient evidence of their intention to become bond fide settlers thereon, by clearing and cultivating or otherwise improving a fair proportion of the land allotted to them. 10. A fee of £1 will be payable to the AVaste Lands Board upon every application for each separate block of land applied for, and also a deposit of 6d. an acre towards the expense of the survey for every acre of land applied for, but the amount so deposited for survey will be placed to the credit of the applicant towards the payment of his rent.

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11. Application from heads of families desirous of taking part in any special settlement in this province will be received at any of the Wardens' Offices upon the gold fields, or at the Provincial Secretary's Office, Nelson. E. J. O'Conob, Nelson, 12th February, 1875. Provincial Secretary.

APPENDIX B. Notes of Peoceedings and Evidence taken at the Kaeamea Inquiby before Alex. Mackay. Thuesday, 20th Septembeb, 1877. J. Carmody and J. Conor, special settlers, stated that they had no complaint to make; were satisfied with treatment and share of work. An application was made on behalf of the settlers that Mr. O'Conor should not be allowed to be present while the investigation was going on. This, it w-as explained, could not be acquiesced in, as certain charges were imputed against Mr. O'Conor which necessitated him being present to explain. His presence was also needful for the purpose of eliminating information on other points as well, during the course of the inquiry. Mr. O'Conor requested that witnesses should not be allowed to hear each other's statements prior to giving their own, and that the evidence should be taken on oath. Mr. Mackay explained that he was not empowered to take the evidence that might be tendered at the inquiry on oath, his instructions being merely to inquire into and report generally as to the accuracy or otherwise of tho charges made in the memorial to the House of Representatives by the Karamea special settlers, under date 17th August last; and in pursuance with these directions he was prepared to hear such statements from any of the settlers who desired to give their evidence as were pertinent to the subject under consideration. Andrew Jacobsen, old colonist, said he had signed the petition, and knew the nature of some portions of it. On first coming to the settlement, was shown copy of prospectus, the terms of which had not been fulfilled as far as supplying goods to settlers. Some of the prices charged had been doubled in the accounts rendered two years after the goods were delivered. The price-list exhibited in the store had not been adhered to. AVitness pointed out that there were discrepancies between the day-book and ledger, one item of 3s. 6d. in the former was posted as 9s. in the latter, another of 9s was posted as 15s. Mr. O'Conor explained that the day-book produced was kept by Mr. Naylor, who acted as storekeeper for awhile. He could not explain ihe discrepancy, but noticed that differences in items occurred in the accounts. On certain occasions the books of the settlement were sent to Nelson to be examined and adjusted. The ledger produced was prepared up there. Could not say what books the entries were posted from. Witness said the price-list now exhibited was never to be seen in the store, another list was posted there. On getting goods at the store a ticket was usually given, but frequently the prices were unmarked. The prices were afterwards filled in, but at much higher rates than witness was led to believe would be charged. Mr. O'Conor stated that Jacobson contracted to erect the store. He was a slow worker, and when offered general work would not do it. He neither took up land, built a house, nor had he any family at that time. There were other objections to him as a settler, but work was given to him to keep him in provisions. Subsequently he married one of the female settlers, and has since occupied some Maori land. He was a good builder and workman. Witness said that during the last three years he had earned £138 on Government work, and nothing from the survey. Mr. O'Conor stated that Jacobson first applied to take up land about October, 1876 —twelve acres on the mud flat. Ledger account against witness showed on credit side some entries, apparently in adjustment of account, covering allowances for overcharges. Witness explained that the entries alluded to represented wages earned and credited as a setoff against store account. Had not heard that the store would be sold to a private purchaser, but he had heard that after a certain date no more stores would be supplied by the Government. The work offered him had been at too great a distance from home, even while other work he was competent to do might have been given him nearer home. The last steamer that called at the port under Government subsidy was in March ; another boat came in April, under private arrangement. He would say nothing about present conduct of store. He owed nothing. Had been charged a penny each for ship biscuits, 3s. 6d. for tea, and 265. per 100 lbs. for Nelson flour. Daniel Scarlett, special settler, said he had taken up 83 acres, and his two sons 50 acres each— 183 acres 2 roods 6 perches. The Promised Land was first laid off in 5-acre sections, but Mr. O'Conor had promised to make application to get him an equal amount of land to the quantity he first held on the Terrace. Mr. O'Conor stated that he did not recollect making any such promise, it being outside his province. On the 26th August, 1876, he made application, and paid deposit, £6 155., for lease of land on the Terrace. Witness said he had since, on his own behalf, made application for the land he now occupied at the Promised Land, and paid the fees. He had never been asked for or paid any rent for land since coming to the settlement. While the Government had the store, goods were sold at moderate prices. In October, 1875, the settlers had petitioned the Colonial Secretary, showing that they were then paying £1 per 100 for flour then selling at 13s. in Nelson. The petitioners asked that the price-list exhibited in the store should be revised by instructions from the Government, and not at the option of the sforeman or overseer.

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Mr. O'Conor stated that the settlers at this time were in the habit of reading retail quotations in Nelson papers, which prices were often erroneous. Witness said he had on many occasions been denied the use of the Government boat for no apparent reason. Mr. O'Conor explained that there was only one boat, and the use of it was given to those who urgently needed it; but there being 60 families it was impossible that all could get it, and the settlers were recommended to build canoes for their own use. Witness said he had lost many days' work in waiting for the use of the boat. Concerning stores, witness said that on one occasion he bought 20 lbs. of meat at the store, 16 lbs. of which was knuckle bones ; put it in the pickle tub. Work had been given him, his son, and son-in-law, on the Mokihinui track; had earned perhaps over £567. Their joint earnings were put to his credit at the store, as Mr. O'Conor would not recognize them as three distinct settlers. He had received no work since June, 1876, except some very small jobs. Mr. O'Conor pointed out that Scarlett had done 3\ chains of road work in March last, and 18| days' work since. Witness explained that the work had been done by his son. The earnings of himself aud two sons for three years aggregated £600. His family comprised ten members. In July last he was indebted at Dolphin's store to the amount of £24, but his credit was not stopped till the 28th July. This was done to require him to pay the amount due, but this he could not do, as work had only been given to one of his family. Mr. O'Conor had not informed the settlers, at a meeting held in January last, that, from that date up to September, work sufficient only to keep families in bare necessaries would be given to heads of families. Mr, O'Conor explained that a meeting was hold in January, at which the settlers were informed, under instructions from the Government, that only bare necessaries could be given up to the ensuing month of September now current. Witness said that Mr. O'Conor had made repeated and fair-spoken promises to assist him with work to get out of debt, but he had not fulfilled them. Never heard him state that Government intended to close the store. Since the store had been in private hands the price of flour had been raised, and the weight had been short in some instances, owing to the bags being gnawn by rats. Had to take the flour as it was, being told "to take it or leave it." Two bottles of spirits had been given his family from the store, and afterwards a smaller quantity was given when his wife was ill. In the distribution of labour some had obtained more work than others. Declined to mention names. Daily earnings have been from 10s. to 15s. when at work. On some occasions he may have earned on the road contracts nearly 20s. per day, and his sons nearly as much ; but this was by working sixteen hours a day. Understood that a steamer would call every month ; never heard that this arrangement would cease after a time. Complained that postage stamps had not been obtainable regularly at the store, and even when stamps were in stock, the settlers could not get them without cash; this led to the despatch of letters being delayed sometimes two or three months. Had had a small quantity of produce for sale if a boat had called at the port. Cows have been sold at £13. His son had been offered cattle at the Moutere, near Nelson, for £5 and £6, quite equal to those sold at Karamea for £16. R. Johnson, jun., claimed to be a special settler, though his name was not on the original list. Had earned £60 on survey work, and had passed it to the credit of his father's account at the store, besides other small sums. Had given notice that such arrangement had since ceased. AVas now a holder of land, and had a house of his own, though not the head of a family at the time the arrangement w ras made by the Government, under which his father and others came as special settlers to the Karamea. Concerning the price of stores — two years ago, flour selling at £13 10s. per ton in Nelson was charged here at £20 per ton. The settlers were informed by Mr. O'Conor, when the Government store was closed, that any surplus profits made over cost of goods would be divided among them, and that if the store was closed before September, flour, tea, and sugar would be sold them on the wharf from the steamer, and for other stores they would have to deal with Dolphin. Mr. O'Conor stated, with reference to Johnson's assertion re stores, that no promise of the kind was made. A suggestion of the kind by him was overruled by the Government. Just before the store was sold the settlers were supplied with three months' provisions. Witness said that the goods were sent down at Government expense, part only sold to the settlers, and the rest to Dolphin at cost price, and he retailed the goods afterwards at a much higher price. These goods were brought down by the " AVallace." Was present at a meeting when Mr. O'Conor intimated that the store would be sold, but the time of sale and price expected was not mentioned. Mr. O'Conor explained that the little store on the wharf was kept for the purpose of storing goods, flour, tea, and sugar, in case any were sent down by the Government. Witness said that a 7-foot saw sold him at the store two years ago was charged at 325. 6d.; the price on the store list were 255. and 275. 6d. At the opening of the settlement the settlers were promised potatoes, oats, and rye-grass seed should be given each head of family. They received these things, but were charged for them. Mr. O'Conor stated that each settler got gratuitous assistance to put up his house, but no instructions were given him to distribute parcels of seeds gratuitously. Witness said that himself, father, aud brother had earned together about £400 since the opening of the settlement. Had also had work on the survey, aud earned £4. Himself and brother had earned £16 from Mr. Marchant, tho geodesical surveyor. His brother purchased clothes with his share of the money. He claimed tho privileges of a special settler, and complained that such claim had not beeu recognized. His father now owned five head of cattle (cows and calves). Had half an acre ready for crops and 1J acres newly felled. Could testify that work at the track had been given regularly to men there, but when witness and his father asked for some they were refused. AVitness had at that time been earning money on the survey. Had earned £23 10s. in that way since May last. 2—D. 7.

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If steamers ran regularly between here and Westport we could get goods cheaper and also dispose of our produce. Witness irfquired how certain cattle were purchased by Mr. O'Conor and brought here. Mr. O'Conor explained that some cattle were brought to be killed. Some of these were killed. The working bullocks brought at the same time were used, aud the remainder were sold at cost price. Government paid the freight of these cattle. Witness asked who paid Meyrich Jones when employed —the Government or Dolphin ? Mr. O'Conor stated the books would show who paid Jones. Every facility would be given to furnish information on that or any other point. Concerning the subsidy paid to the steamer, Mr. O'Conor explained that, under the first arrangement with Messrs. Edwards and Co., the Government guaranteed £100 freight; after this another arrangement was entered into, the nature of it being that the owners should be paid £25 and all freights besides. Cost of carriage from Nelson here had been £3 per ton. The work done on Sabbath-day was very pressing ; the occasion referred to happened at the commencement of the settlement, and was caused by a desire on his part to place the people on the land as early as possible. Volunteers were called for to assist in finding the lines, in order that the survey could be started. H. Jordan claimed to be a special settler. Had not been classed as such for some time, not having built a house or complied with conditions of settlement. Had been debarred from getting work, while O'Conor's nephew had been employed constantly. Considered that the prices charged for some things to bo very high. Mr. O'Conor declined to give Jordan reasons why he declined to receive him as a settler after his dissolution with Black, his former partner. Dolphin had been paid at the rate of 30s. per week. Witness stated that he had held land at Granity Creek, but Mr. O'Conor would not make a track to it. The track would have opened up other land. There was another settler living there (H. Enright) at the time. The cost of making a track would have been at least a week's work. Mr. O'Conor stated, in answer to a question from Jordan, that the Government paid freight on cattle for Dolphin on one occasion, but that he had to repay it. Henry Halves: Had seen a copy of the original prospectus of settlement, dated September, 1874. When the settlement was first started, there was an abundance of stores at moderate prices. Wages were then 6s. per day. The stock of goods was soon limited and the prices raised. Day labour was also raised to Bs. per day. Have earned about £173 iv three years, and on this my family (six) have lived, with the addition of some survey work. We earned £23 10s. and some other small sums in that way, but not enough, on the whole, to keep me out of debt, however careful I might be. I have had to wait four days at the store to get supplied with goods, because of the uncertain way in which the goods were served out; at times there was quite a scramble for goods. Consider I have not had a fair share of work in proportion to the cost of keeping my family. For nearly eight weeks at a stretch my family have lived on bare bread. Was refused goods at the store on one occasion even when there was £3 odd to my credit. I had previously refused to work on the Mokihinui track, because Mr. Rawson, the overseer, had dealt unfairly in refusing to pass the work done. My credit at the store was not stopped for that reason —the stoppage alluded to happened some time before. Mr. Rawson gave me notice to stop work on the track, because I earned too much money. I was aware that Mr. O'Conor had stated that the store would be closed and the settlement wound up ; but he also said every man should have six months' provisions. AVhenever a man has earned a pound by chance work, Mr. O'Conor has made them pay the money over to him. With reference to unequal division of work, am of opinion that those who run after Mr. O'Conor and wait on him, get a better share of work than those who do not do this. Have about an acre of land cleared and about four acres underscrubbed. I own two cows and two calves, purchased with money I brought from England; have also one pig. Have not purchased stock from the Government. Have not had any produce for saleGoods supplied since the closing of the Government store have been dearer than before. As a general thing the goods right through the store have been raised in price. C. Glidwell said he had received goods from the store, but could never get an account. Never knew how he stood at the store, or the amount earned from the Government. Had earned £3 at the survey, but could not say how much he earned otherwise. Had not attempted to keep a personal account, because he noticed, when others made the attempt, the accounts never tallied with the store books, consequently they were always in trouble. Mr. O'Conor had promised to get him a cow out of money coming to him, but was told afterwards that he must purchase one from Dolphin. Was charged £15 for a beast only worth £5. At least he had been compelled to kill her, and that was all he had realized. The animal's weight was only 5 cwt. Had bought another cow since for £16. The first cow had a calf with her when he bought her. Supplied certain settlers with butter through the store, and took goods in lieu. This arrangement was stopped after a time, and some of the butter supplied was not settled for. Nothing further to say. Inquiry adjourned to 9 a.m. on the 21st September.

Friday, 21st Septembeb, 1877. J. Sinclair, special settler (wife and two children) : Considered that the prices charged for some of the articles obtained from the Government store were too high. Sugar of an inferior quality was charged at 6d., should only have cost 3d. During the last two months in 1875 my store account, with a family of two adults and two children, was over £20. This was while I was employed on the track, between Wanganui and Mokihinui. My average expenses after were about £5 a month. Was refused articles at Dolphin's store in March last. This was because my credit was stopped. AVas not aware that the store was about to be sold. Was employed on the track for six months, at first on daywork at 10s., and afterwards at piece-work. My average earnings would be about 15s. a day. Cannot say whether the sum of £235 set down as the amount of my earnings is correct, as particulars of the work done were not furnished. Have earned £4 on the survey since January last. Cannot say

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whether, if steamer had called regularly, settlers could have sold their produce. Have none of my own for sale. Have no knowledge whether large profits have been made in trading transactions. B. Brown, special settler (wife and one child) : Was promised on arrival here that goods would be supplied at Westport prices; cannot say whether that was carried out or not, as I did not get tickets with goods. Sometimes it would be several weeks after delivery before tickets were given out. Only signed for the goods on receipt of the tickets. Mr. Simpson, the storekeeper, said that he had no time to make the tickets out at the time Have no complaint to make concerning the insufficiency of work. Have been employed sufficiently to maintain myself comfortably. Some articles have been exceedingly high in Dolphin's store —flour, for instance, has been charged for at 265. per 100 lbs. Have not purchased any cattle, and have no knowledge of transactions in which others have been concerned. Cannot say whether settlers have suffered inconvenience for want of steamer calling lately. B. Line, special settler (two children) ; Came here from Westport. Have had a fair share of work since arrival. No complaint to make concerning the price of stores. Live with Brown, and get my supplies with him. Have earned £193. Cannot say whether if a steamer had run regularly that produce could have been sold ; it might have enabled us to obtain stores cheaper. Heard that the Government store was about to be sold. Mr. O'Conor explained that no public notice was given that the store was to be sold, simply that the store would be sold at an indefinite date. Have no knowledge of trading transactions. J. Heally (no wife or child) ; Was not an original settler, but was admitted a special settler. Made application for 100 acres of land on north side of the river, and paid deposit. John Cooper has now got the land. Had made arrangement with brother to come out to occupy jointly with myself. Cannot get another piece of laud as good elsewhere. Have not received notice from Waste Lands Board, but have heard it rumoured here that I could not have the land. Have no statement to make in particular concerning the memorial. Have no knowledge of the prices charged elsewhere for stores. Have not received much work, but do not complain about that. Cannot complain about the price of stores, nor cannot say whether large profits have been made. Have not been brought here by either Mr. O'Conor or Mr. Dolphin. Came out as an assisted immigrant, and was sent here by Mr. Elliott, the Immigration Officer at Nelson. J. Curtin (wife and four children) : Am an old colonist, but have been admitted as a special settler. Consider I have the same privileges as others. AVas charged for passage of wife and family here, also freight of cows. Consider that the charge should be remitted, as all other settlers have been assisted here. Mr. O'Conor explained that Curtin was not an immigrant, and the Provincial Government did not consider that free passages should be given to others but immigrants. This rule, however, has not been enforced, as some of the settlers of Curtin's class came unknown to Government, and their passages were paid. No attempt has been made to recover the expenditure from them. Witness: Have no complaint to make about the work or concerning the store. Purchased two cows here ; consider the price (£2O) I gave for them very high. Am anxious that a school should be established. A. Lineham, special settler (wife and three children, also one brother, aged 20): Consider that the price paid for some of the goods at the Government store was excessive. Have received tickets of the stores on delivery, but frequently without prices. AVould like to have the accounts looked into. Have all the bills, but left them at home. Could not cross the river frequently to the store, owing to the want of a ferry; the settlers had wasted a great deal of time in consequence of this. Was not consulted about choosing the land for settlement; the selection was made by Mr. Rawson, the surveyor. The land we now occupy was opened up about a twelvemonth ago last August. Have received a fair share of work. Self and brother have earned £355, and £26 10s. on the survey since last January. Would prefer to receive payment in cash in place of goods for work done ; consider the latter plan very unsatisfactory. Have applied for the land in my occupation, and would like to be assured of the title. Did not hear of sale of store. Think that some articles have been charged very high—for instance, matches, flour, and sugar. Consider that drapery has been high; stockings have been charged 6d. a pair to me higher than to others. Have bought stores recently from Mr. Stitt, of Westport, at the undermentioned rates: Flour (Christchurch), 245. per 100 lbs.; tea, per box of 12 lbs , 345., 2s. 9d. per lb.; sugar (Company's), per bag, 6d. per lb. No complaint to make concerning share of labour. If a steamer had called, could have sold some produce. Have some potatoes for sale, but cannot get them down for want of a road. Sold some on the ground at 6s. per bag of 200 lbs. AVould occupy three men two days to deliver a ton at the wharf, to bring them by the river. This would add fully 30s. per ton to the cost. If arrangements could be made for regular calling of the steamer, it would confer a great boon on the settlers. Have no remarks to make concerning trading transactions. J. Black (wife and two children) : Am an old colonist, but have been admitted as a special settler. Was engaged up the Karamea River, mining, several years before the settlement was established. After the settlers arrived, Mr. O'Conor employed self and mate (D. Graynay) to saw timber, and instruct the settlers how to put up their houses and do other work. Consider that articles of consumption in the Government store were not unreasonable. Tools were rather high, in some cases. Tickets for the stores received were not issued regularly; sometimes two or three would be received together; in many instances the prices of the goods were not filled in. Consider that, if a steamer had called regularly, it would have proved beneficial to settlers, and enable them to procure provisions at cheaper rates. Heard that the store was about to be sold. Provisions have been much higher since; flour has been dear, also kerosene, and many other things. Believe that large profits have been made. Consider that I have cause for dissatisfaction concerning the purchase of two cows bought from Mr. Dolphin. At the time Mr. Scanlon, the overseer, left, his partner (H. Jordan) had £23 to my credit, with which I was desirous to purchase some cows, but, owing to not being able to get the money, was compelled to deal with Dolphin through the store, because £9 of the amount was in Mr. O'Conor's hands, and I could only obtain it through the store; at least that was my impression, and for that reason I did not make application for the amount. Remember a conversation that took

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place between Mr. O'Conor and Mr. Mathews concerning the sale of the store. On that occasion Mr. O'Conor informed Mr. Mathews that Government would not guarantee any person. It was also stated that the building would be sold separately, and the goods at cost price. Heard that a horse, dray, and harness had been sold to Dolphin for £15, while others would have given more had they known it. Consider that the settlers have a grievance, because Mr. Dolphin, who was supposed to have money, had received employment from the Government. A grindstone that had been sent down for the use of the settlers was sold to Dolphin, and he had removed the handle. A rata tree, said to have been on Mr. O'Conor's land, was cleared off at the Government expense. Mr. O'Conor explained that the rata tree stood on the road, and was felled and cleared at the expense of the Government. Witness : Could not have bought the cows excepting through the store, as everything was supposed to be done through Mr. O'Conor. Remember Mr. Mathews being refused the privilege of passing a few pounds of butter through the store for a few sick women in the settlement. Cautioned Jordan not to speculate, because the future of tho settlement was uncertain. Have received a fair share of work. Earnings on Government works amount to £260, and survey work since January to £75. Adjourned to 9 a.m. on the 22nd September.

Saturday, 22nd September, 1877. 0. Mathews: Came to Karamea as a special settler from Nelson. Have no complaint to make concerning the price of stores while it was in the hands of the Government. Have no complaint to make respecting the quantity of work received. Was allowed to pass some butter through the store on one occasion, but the price received was much lower than paid by the settlers. The potatoes put through the store was while Mr. Simpson had charge. Could never get an account of the work done, or of the position I stood with regard to the store. Mr. O'Conor explained that every facility wss given to every one (who was desirous of so doing) to ascertain the position of their accounts. Persons were sent down by the Provincial Government to audit the accounts, and any person could have seen the state of their accounts. Witness .- I went over the books once with Mr. Rawson, and on that occasion was satisfied; but afterwards Mr. O'Conor made my account £1 3s. iv debt more than Mr. Rawson. Received a cheque of £8 10s. from Mr. Jennings, the surveyor, for work dene, which I forwarded to Nelson, to Mr. Greenfield, the Commissioner of Crown Lands, to defray the cost of my land. On Mr. O'Conor's arrival he demanded this cheque, and called mo a scoundrel. I offered to settle the balance of my account in cash if he would let me have 200 lbs. of flour. Did hear of a meeting at which it was announced by Mr. O'Conor that the Government store was to be sold. Heard Mr. O'Conor say that Government would sell the store. The building to be sold separately, and goods at Nelson cost price. The conversation alluded to took place between Mr. O'Conor and Mr. Dolphin. Believe that Mr. O'Conor has an interest in the store, as he always makes up the books. Asked Mr. O'Conor if Government would guarantee, and was informed that no security would be given for stores sold to the settlers, and that Government would not be responsible. Heard afterwards that the building was sold to Dolphin for £50. On the terms that the store has been worked since, I would have given £100 to £150 for it, every one having to give an authority to the storekeeper to receive the money coming to him. Heard that Mr. O'Conor had become responsible for £900 for Dolphin, and that he had stated he would see that he was paid for the stores. A medicine-chest sent down for the use of the settlers was sold with the store; also a pack-saddle, harness, grindstone, aud forge. It has been rumoured that the forge was sold to Dolphin. Believe that more money has been placed to my credit than I have earned, and that the store account has been made up to correspond with it. lam of opinion that large profits have been made in the store. Judging by Mr. O'Conor's actions, the store appears to belong to him. I have bought cattle from Mr. O'Conor. I purchased one cow for £12 ; the same animal in Nelson, in the condition she was when I got her, would only have fetched about £4. I bought the animal for a friend, because there was no one else to buy from but Mr. O'Conor. I have since purchased Hammond's share for £6, sold her again with her calf to Hammond for £8 and eight days' work —£12. I arranged to buy another cow for £16 from Dolphin, but, after seeing Mr. O'Conor, he said he could not sell under £20; took the animal at the price because it was " Hobson's choice." Mr. O'Conor seemed to throw obstacles in the way of other people bringing cattle to the settlement. A person named Cooper desired to bring twenty head, and was promised that they should come by the steamer, but no opportunity occurred, because the steamer was always occupied in bringing cattle for Mr. Dolphin. I sold a heifer to D. Graynay for £16 ; this was his own offer. Have arranged to sell four others with their calves ; the purchasers to fell bush for me for £7 10s per acre. The arrangement is with two men, and tho quantity to be felled is eight acres (equal to £15 each). These same animals were sold at auction, by Sharp and Pickering, for £7 10s. each; I consider that the cost of driving them overland has added £3 to their value. Two cows, the property of the Government, were sold to Dolphin for £24, and shortly after by him for £32 to Black and Jordan. It was not publicly known that the animals were for sale when Dolphin bought them. A strawberry bull (Government property), that cost in Nelson £15, was sold to Dolphin for £8. A small red bull, that cost £12, was sold here for £9. A number of cattle were sold by Mr. O'Conor on a Sunday for various prices, ranging from £14 to £16; were supposed to be Government property, but after the cattle were sold it was found they were Dolphin's. On one occasion I received a ticket from the store, which afterwards did not agree with the books. I was charged 4s. too much ; was promised that the mistake should be rectified, but cannot say whether it was done. Believe that a feeling prevails that the work has not been distributed fairly. Have no complaint personally. During the last three months a great deal of partiality is said to have been shown, especially since the election. The persons who voted for Mr. O'Conor have been favoured above others—namely, Connor, Carmody, Hill, Curtin, and Graynay. Have been informed that all the Promised Laud settlers have been refused work. Could have obtained

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many articles much cheaper if the steamer had called regularly. Consider that flour, tea, and sugar, have been very high since sale of store. There has not been much produce available for disposal. One person had about eight tons of potatoes for sale, but could not get rid of them. Have been put to a good deal of inconvenience aud expense by not getting two pigs by the steamer, that were not allowed to come by Mr. O'Conor's orders. My cattle at first were ordered off the steamer, and ultimately I was compelled to sell one animal to pay the freight. Believe Mr. O'Conor refused to let my cattle come because ho did not wish other people to have cattle in the place. Sold one cow for £6 to pay the freight of the others. The same beast was afterwards killed and sold out to the settlers for £15. One plea made for raising the price of goods was that the subsidy for the steamer had been stopped. AVas informed to the contrary by owners, and also by Mr. Curtis, that £25 was paid for the last boat. 0. Remnant, special settler (wife and three children) : Consider that stores have not been supplied at reasonable prices. According to the papers, the rate for flour at Nelson was £15 per ton, while at Karamea it was sold at £20. Tea and sugar were also dear; dark sugar of an inferior kind was sold at 6d. per lb., and tea at 3s. Cannot say anything about clothing. I have been charged 2s. 6d. for Steadman's powders, sold at Is. 6d. a packet in Nelson. Have had a fair share of work up to January last; have earned about £254 to that time. In October, 1876, I was notified that no more goods were supplied on credit. AVas in debt to the store at that time, but so were others. Got a few goods afterwards, amounting to £7, notwithstanding notice. Mr. O'Conor explained that the reason notice was given was because Remnant and some others were unwilling to go to work on the track, and this course was adopted to compel them. Witness: The only provisions I received after that was 100 lbs. flour. On the 3rd December and up to the 13th March last, self and family had to live on that and other 50 lbs. flour. The last lot was unfit to cat, being the sweepings of the store. Have had some meat since, but no butter for twelve months. I have no cattle, but own three pigs. Was present at a meeting, and heard that store would be sold. Since Mr. Dolphin has had the store, the price of stores have been very high, flour especially, also tea ; the former was charged at 265. per 100 lbs., and the latter at 3s. 6d. and 4s. per lb. I have purchased recently from Mr. Stitt, of Westport, stores at the following rates : Flour, 255. per 100 lbs.; tea, 2s. lOd. per lb.; oatmeal, 25 lbs., 75.; sugar, 6d. per lb. Consider that the prices given according to the quality of the goods are far more reasonable than at Dolphin's store. Consider that work has not been fairly apportioned since last January. A great many of the settlers have been able to obtain work, while I was refused. Am under the impression that this was done to get rid of me. Have been informed that O'Conor said that he would endeavour to drive another batch out of the settlement. Mr. O'Conor has employed me lately to burn some bush at £2 10s. per acre. The price was afterwards raised to £3 10s., owing to it being a difficult job. When Dolphin's store was first opened, I could get extensive credit. Mr. O'Conor paid for the stores out of money due to me for clearing his land. I had intended that this money should have been expended in buying a cow. Could never get a regular account as to how I stood with the store, or of the quantity of work done. Have applied frequently for a statement of account. I have no knowledge whether large profits have been made at the store. J. Hart, special settler (wife and three children) : Have no complaint to make in particular against the prices charged in the Government store. A few things were dear. Have had a fair share of work. Heard that the Government store had to be sold. Consider that some things have been high since the store came into private hands, especially flour and tea; the high charge for the latter was probably caused by it having to be packed from Mokihinui. Cannot say anything about clothing. Have no knowledge whether large profits have been made in the store, but have heard so. One complaint I have to make is that I was refused some flour at the store when I had money to pay for it; at least I had the amount less 4s. 6d. Another is, that a clock priced in Nelson at 255. was charged for here at 355. J. Cooper, special settler (wife and child) : Have no complaint to make ; have received a fair sharo of work. Know nothing of profits being made in the store or otherwise. Tea has been high lately, but that was owing to it having to be packed here. Remember a mob of cattle coming by the steamer, and Mr. O'Conor fixing the price—the first pick at £14, the second at £13, and the third at £12. Mathews got one at that time; Hammond bought it since for £14. J. Elford, special settler (wife and two children) : Have no complaint to make about the price of stores while in the hands of Government; have not been able to obtain any since. Have had a fair share of work ; have earned sbout £229 during the past three years. Know nothing of profits made in the store. Bought a cow from Mr. Dolphin for £15. Had a contract to clear a rata tree for £5 ; about one-third was on the road, and the remainder on Mr. O'Conor's land; the tree grew on the road line, and was felled by W. Harry, while making the road ; the tops were used to burn the butt. Have made application to the Waste Lands Board for the land I occupy, but have not received deposit receipt. S. Hill (wife aud two children) : Am an old colonist, but have been admitted as a special settler. Consider that stores were reasonable while in the hands of Government. Agreed to buy a cow from Mr. Dolphin for £14 if Government would allow me to work it out. Had one-third of the value to my credit, but have not been allowed work to pay off the balance. Heard of meeting at which Mr. O'Conor notified that the store would be sold ; about two-thirds of the settlers attended it. Price of stores since then have been very high: flour, 265. per 100 lbs. ; sugar, inferior, 6d. per lb. ; tea, 4s. per lb.. This was caused by the extra cost of packing it by track from Westport. Cannot say whether oatmeal was dear, as I have not received my account. Am of opinion that stores were high in comparison with prices elsewhere under the circumstances. Have bought stores recently from Mr. Stitt, of AVestport —viz., flour, 255. per 100 lbs.; Company's sugar, 6d. per lb.; tea, 2s. lOd. per lb.; oatmeal, 7s. per 25 lbs. These stores were purchased wholesale, and paid for in cash. Cannot say anything about drapery. The settlers have been inconvenienced for want of steamers calling regularly ; provisions could have been obtained cheaper, and produce disposed of. Some of the settlers had produce to sell. The charges for provisions at the store have been too high; at first flour was sold at 225., and then raised to 245., and afterwards to 265. The settlers were of opinion that the stores should have been sold at cost price, as the goods were sent down at the expense of the Government,

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C. Lawrence i Am an old colonist; have been admitted as a special settler. Am satisfied with price of provisions, and also with share of work. The only complaint I have to make is concerning employment upon the survey. I understood the work was to be carried on in conjunction with other work in connection with the settlement. Did not hear that the work done by me on the track had been first offered to Scarlett and Hill. Am not aware that skilled hands are required for survey work ; was informed that heads of families were to be employed on it. Do not consider that stores had been so high here ; have paid 265. per 100 lbs. for flour, but it has been sold at Mokihinui for 30s. Regular steam communication is much needed for the place. Am perfectly satisfied with the management of the settlement. Mr. O'Conor has devoted a great deal of time and attention to the place. I have heard him traduced by a good many persons without cause. Mr. Jennings is one who has stated that the way the place and the store were managed was a wholesale system of robbery, and that an exorbitant price was paid for things. Could not say why Mr. Jennings offered me work. AVas informed when work was shifted to this side of the river that I should get employment. My reason for making complaint is on behalf of the settlers, because a few have been monopolizing the whole of the survey work to the detriment of others. J. Blackburn, an old colonist (wife and six children) : Came from Mokihinui. Have been admitted as a special settler. AVas not asked to sign the memorial. Have no complaint to make about stores, but had to pay higher in Mokihinui for stores than here. Kept a store for some time myself. Consider that prices are not unreasonable in comparison with what I have paid elsewhere. Am satisfied with share of work received. Bought two cows from Mr. O'Conor for £23 ;am satisfied with bargain. Hope in regard to survey work that partiality will not be shown, because I am considered to belong to the opposition party. A good deal of dissension prevails at present amongst the settlers as to the manner in which the work has been given out. Know nothing of trading transactions. B. Graynay, old colonist, admitted as a special settler: Was asked to sign a petition but declined. Am perfectly satisfied with the price of the stores, and the manner in which the settlement has been managed. When I first came to the settlement self and mate (J. Black) were employed in assisting the settlers in building their houses. Three days were given to each family, and six days to the Johnson family, because they were more numerous. Bought two cows, one from Dolphin at £15, and the other from Mathews at £16. Would like to have bought the last one cheaper, but Mathews would not sell her for less. Consider that Mr. O'Conor has acted fairly towards everybody as far as my experience goes. Have been in the colonies for twenty-eight years. Am of opinion that no one could have done better, and consider that those who complain have no right to do so. E. Merchent, special settler (wife and two children) : Was one of the first who arrived. Was promised 5 acres to form a township, also 5 cwt. of potatoes, a bushel of rye-grass, and one of oats. These promises have not been fulfilled. An overseer was sent down to instruct the settlers, but he did not appear capable. Consider that stores have been too high from the first. Have never had proper accounts of the stores received or of the work done. Do not think that I received a fair share of work. May have earned £212, but cannot say. Never made any difficulty about going to work. Was refused provisions before the Government store was closed, although I had a credit. Since Dolphin has had the store prices have been very high —flour and tea especially. Consider that labour has not been fairly apportioned. If steamer had called and settlers had money to spend, they could have bought provisions much cheaper. There has been very little produce for sale; Lineham had a few potatoes. E. King, special settler (wife and one child): Consider that provisions were not supplied at moderate prices; other things were high also. AVas charged £2 15s. for a gun; tools were also dear. The cost of provisions was moderate at first until a fresh storekeeper came. Fowls, soiii:;g at 3s. each in Nelson, were sold here at ss. Purchased a goat for 205., which died shortly after. A number of other settlers also bought goats, and they all died, owing to the poor character of the soil. May possibly have been poisoned by some shrub. The rate of wages paid in the first place was insufficient to provide for food and procure tools and other necessaries. Many of the tools we got were quite useless. Mr. O'Conor explained that the Government had assisted all the settlers at the outset by allowing them credit for necessaries supplied, and that King had been allowed £50 in that way. Witness: Applied to Mr. O'Conor to obtain two cows. Wanted two heifers in place of full-sized animals. Was present on arrival of a mob of cattle by steamer. Mr. O'Conor separated them as they landed. Dolphin's cattle were put in the stockyard; this was on a Saturday. On coming down on Monday, found cattle had been sold on Sunday. Was offered two heifers by Dolphin for £13 each. Requested to sign a voucher to pay for them. Consider that I was not fairly treated in this matter; in this way, that I could get money to purchase cattle, but when I had money to my credit and wanted it to hand to my brother, who was going home to fetch his sister, I could not get it. Mr. O'Conor explained that the reason for refusing to give King money on that occasion was that the purpose he required it for was not contemplated in the scheme of settlement; that work was not given to settlers to enable them to acquire money to expend outside the objects for which the settlement had been founded. Witness : Settlers were promised that a steamer should call monthly, but this had not been carried out. Consider that provisions could be procured much cheaper if steamer ran regularly, besides allowing opportunity of selling produce. Adjourned to 9 a.m. on the 24th instaut.

Monday, 24th Septembee, 1877. J. Moffat (wife and five children) :Am a special settler. Have nothing much to say concerning the price of provisions; only know from what other people told me. Do not consider that I have had a fair share of work; have always been willing to do work, and have frequently asked to be employed. Cannot say whether partiality has been shown ; some of the settlers got more than others, but do not know the reason, perhaps it was because they were heaviest in debt. Am very desirous that a school

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should be established. Would be very advantageous to settlers if steamer called regularly. Know nothing of trading transactions. W. Harry, special settler (wife and no family) ; Have no complaint to make in particular. Stores have been high lately. Have no knowledge of prices elsewhere. The rata tree Mr. Mathews stated had been felled and cleared at Government expense stood on the road. I had a contract to form the road, and in cutting down the tree it fell on Mr. O'Conor's land. My contract included the felling and burning of the tree. Got delayed in the work by bad weather, and afterwards by an accident to my cow-. Asked to be released from completing it, and Mr. O'Conor paid me for what I had done. Worked thirteen days at it, and received £6 10s. The work was afterwards completed by Simpkin and Elford at £1 7s. 6d. per chain. Brought two cows by steamer from Nelson. Found no difficulty in bringing them: Mr. O'Conor assisted my wife to put them on board. The animals landed here cost me £26. J. Simpkin, special settler (wife and two children) : The price of stores was moderate at first. Some articles were not to be had. Sent for some boots for my wife aud child, but could not get them. Had a credit of £29 at the time. The time I allude to is before the last steamer arrived. Have received things from Nelson, but was a long time persuading Mr. O'Conor to let me have them. Have earned about £208 from Government. Have been workiug for Mathews and Dolphin since February last. Cannot say whether partiality has been displayed in giving out the work. Some men had more payable jobs than others. Where I made £1, others made 30s. Mr. O'Conor offered me work about the commencement of the year, but I was busy at the time. Did not see him again for three mouths. Self and Elford got work on his return. Asked for work while Mr. O'Conor was absent, but was informed there was none. Made application for some laud near the Native reserve on the 19th March last. Afterwards saw Dolphin, who ascertained the date, and then remarked that Healy was too late. Afterwards learnt that Healy had applied for the same land, and that his application had been dated back. Mr. Jennings made out my application, and placed me on the land. Know nothing of trading transactions. F. Large, special settler (wife and three children): Have no complaint to make concerning the price of stores. Would have liked to have been paid in cash for labour done, in place of provisions, as I could have lived much cheaper. Have had a fair share of work, but am under the impression that partiality has been shown to some in getting work near at home, while I have had to go to a distance. Have earned good wages, but ready cash would have been more beneficial. Was offered Government work at £2 ss. per chain nearer home, but did not commence it, although I promised to do so. The same work was afterwards let to some one else. At the end of September, 1876, Mr. Scanlon informed me that I had £11 to my credit, and after Mr. O'Conor came he made me out to be £1 in debt. AVould like to see the truck system done away with, and ready cash paid, as the settlers could do better even if wages were lower. I hope to be in a position to send away several tons of potatoes next season. If I can realize a fair price for produce, I have no fear of succeeding. Would have been much better off now if I had been placed on good land at first. Have nothing further to state. J. Connor, special settler (wife and two children) : Remember being present with F. Large in the store when Mr. Scanlon, the overseer, made up the accounts in September, 1876. A statement was furnished us at the time showing the state of our accounts, the object of this was to show the position that each person stood at the store. Desire to make a few remarks concerning a statement made that no one but an Irishman could get stores. This statement is incorrect. At the time it was made I had been refused credit for some flour, because I had not sufficient money to pay for it. I afterwards earned some money and went to pay for the flour, and while I was there Hawes came for some, but, as he was in debt, he was refused. This is an explanation of the circumstance that led to the statement being made that Irishmen alone were favoured. Mathews and Black were allowed to remain at home, while others went to work at the track. Mathews had cows in milk and could not leave ; he earned fully £1 per day at contract work during the time. Was present at a meeting at which it was announced by Mr. O'Conor that the store would be sold. Understood then that the Government would cease keeping the store, and that the affairs of the settlement were to be wound up in six months from that time. Declined to sign the memorial, although I was pressed to do so. W. Castles, special settler (wife and three children) : Did not sign the petition. Have no complaint to make. Have had a fair share of work. Hope the Government will spend more money in the district, to give the settlers a chance. A drain is much wanted along the Pakihi Road, to give access to the sections along it; at present it is almost impassable in places. Have nothing further to say. J. Hammond, special settler (wife and three children) : Have no complaint to make about the store while it was in the hands of the Government. Have had a fair share of labour. The only complaint I have to make is that when I asked Mr. O'Conor for work, to enable me to clear off my debt at the store, he refused to give me any; the reason he assigned being that the amount was small. Was anxious to purchase a cow last January, and believed I had a credit of £9; but Mr. O'Conor would not give me any work to do. Mr. O'Conor offered me some work; but I was not in a position to accept it, as I had no credit at the store, or boots to wear. Cannot say that labour has been distributed in a capricious manner. I was contented, so long as I could earn sufficient to keep me out of debt. If steamers had called, the settlers were not in a position to obtain provisions at a cheaper rate. There has been no produce for sale. Provisions have been high since the store came into Dolphin's hands. Flour, 265. per 100 lbs.; at first it was 225., and then it rose to 245.; oatmeal, 6s. per 25 lbs.; tea has been as high as 45., but 3s. 6d. was the price at first. Heard it was raised owing to the expense incurred in packing it from AVestport. Know nothing of trading transactions. J. Simpson, old colonist (wife and six children) : Was acting as storekeeper here for the Government. Cannot say why some of the settlers complained they could not send their letters for want of postage stamps. The custom at the time was to forward the settlers' letters to Nelson, to be posted by every available opportunity. There were none delayed to my knowledge for want of stamps. Concerning the complaint made relative to the non-issue of tickets to persons receiving stores, it often happened

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that a number would come together about the arrival of a steamer, when every one was busy, and it was owing to this that the prices were not always filled in ; but the settlers could have obtained the information afterwards, had they expressed a wish to do so. There was a little dissatisfaction at first about the price of stores, but I do not consider it was justified, as the prices were moderate. Have earned £287 Os. 6d. for boots supplied to the settlers through the store, but out of that I had to pay for freight and leather £177, aud £40 for wages. Arrived here in April, 1875, and was allowed provisions at the Government expense to March, 1876. Had to cook for all the Government officers staying with me during the first year. Have since charged for persons staying in the house. Was paid at the rate of £2 per week for keeping the store. My receipts from that source amount to £204. Have taken up land in the usual way as a special settler. Before the store was sold I took stock of the contents, and afterwards, with Mr. O'Conor, fixed the prices after comparing the cost of the articles with the invoices. The rule observed in determining the value was to ascertain the cost price of each description of goods, and to that add the cost of freight and other charges. The only articles sold under cost price were some shovels that were rusty and unsaleable. I believe the aggregate value of the stock was charged in full to Mr. Dolphin. Some of the stores since Mr. Dolphin has had the store have been high. Flour, for which he gave 18s., has been sold at 265. Mr. Dolphin has bought a fresh stock of flour since taking the store. The first price that ruled for flour was 225., then it rose to 245., and latterly to 265.; that was owing to the supply having run short. Have bought flour lately for cash at 245. per 100 lbs. ; oatmeal, 245. per 100 lbs.; tea per box 12 lbs., 345. ; Company's sugar per bag, Gd. per lb. Am aware that Mr. Dolphin has had to pack some of his stores from AVestport lately. The price of rice per bag has been high. Dolphin charged 21s. for what the Government formerly sold at 16s. per bag. Have heard complaints that partiality has been displayed in allotting work to the settlers, but cannot say anything of my own knowledge. Consider that the want of regular steam communication has been a great drawback to the place. Settlers who were in a position could have obtained cheaper supplies, and also disposed of their produce. Concerning the price of cattle sold here, a good cow in Westport would be worth £18, but I do not consider that many of the animals sold here could be rated as first-class. Some of the prices obtained have been very high. The average value, in my opinion, of the cows sold here would be about £12. Two cows belonging to the Government were sold to Dolphin for £28. The animals were in calf, and Dolphin resold them to Black and Jordan for £32. The two bulls belonging to Government were killed for meat for the settlers. Jones charged for killing them. AVas informed that Government proposed disposing of the store, and afterwards received a notice that my services would not be needed. Heard Mr. O'Conor frequently state that the store would be sold, and with that view the stock was kept purposely low, the intention being to only grant bare rations, and that if settlers wanted other requisites they would have to go elsewhere and seek employment. A large number of the settlers attended the meeting at which it was announced that the store would be sold. Have heard from Mr. O'Conor that he had charge of the settlement to the end of September, and that there would be no employment excepting for heads of families; the single men were not to get work. This rule, however, has not been adhered to. Many persoSs were refused credit at the store, and very necessarily so, as they were never contented. J. Symonds, special settler (wife and three children) : Stores were reasonable while under control of the Government, but have been dear since. Heard of intention to sell the store. Have had a fair share of work. Consider that it has been a great drawback steamer not calling regularly. Have had no produce for sale. R. Avery, special settler (wife and six children) : Have nothing particular to say. Am very badly situated at present for want of work. The chief complaint I have to make is that I could not get work to pay off my store account. Applied to Mr. O'Conor, but ho could not give me any Government work. He employed me privately to burn some bush for him for £18 ; the price was ultimately raised to £25, owing to it turning out such a difficult job. Have nothing further to state. H. Dolphin : I own the store that formerly belonged to Government. Bought the building for £50 and the stores for £105. The sale took place on the 27th March last. Mr. O'Conor bound ma down to sell at AVestport prices, but some things I have sold much lower. It was also understood that I was not to sell liquor of any kind. The recent high prices were caused by scarcity of supplies. Flour was rising in the market, and I had, owing to the settlers not receiving jiaymenf for work done for Government, to wait a long time for my money. Requested Mr. O'Conor to allow me to raise the price of oatmeal, molasses, and various other stores in consequence of the scarcity, but he only consented to my raising the price of flour. Sold flour at first at 225. per 100 lbs., and afterwards raised it on two occasions 2s. each time. No guarantee was given me that I should be paid for supplying the settlers. Undertook to do so at my own risk. There was very little prospect when I took the store of making it pay, as there was a possibility that the Government would still continue to supply the settlers with flour, tea, and sugar. Mr. O'Conor intimated as much to me at the time. Another disadvantage I had to contend with was that prior to my taking the store the settlers were supplied with three months' stores by the Government. Mr. O'Conor has no interest with me in the business, nor in anything else. His brother, Mr. A. O'Conor, is in my employ at £2 per week to manage the store. Commenced with about 160 head of cattle —100 large cattle and 60 small—from one to two years old, but of these I have lost 10 large animals and 10 calves. The value of the large cattle landed here would be £12 each. I purchased a horse from the Government for £15; it died about a month afterwards. A pair of bullocks, dray, and harness were sold to me for £35. These things were sold to me cheap on the understanding that I was to make no claim on the Government for the time I had been employed packing stores for the men working on the track. The dray is too heavy to be useful, and I have been compelled in consequence to incur a further expense to procure a light body for it from Nelson. I purchased the anvil, vice, and grindstone from the Government, but not the forge. Agreed when I bought these things that the settlers should have the use of them, and I have never denied them. The handle of the grindstone is kept in the store, but any one can get it on application. lam neither related nor connected with Mr. O'Conor; was under the impression at first that such was the case, but have since ascertained that we are not related. When I first arrived at the settlement I was

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engaged ferrying the settlers over the river, and also packing goods for them up to their houses. I had to attend to both crossings, and it was very difficult to please all parties. I had also to boat the goods up Baker's Creek. AVhen a steamer came in the settlers used to flock down to get stores, so long as any remained on hand. Experienced a great deal of trouble with them on those occasions. Since buying the store I have purchased a fresh stock of flour and other articles of consumption, also drapery. A parcel of drapery and some tea had to be packed from AVestport. Charged 4s. per lb. for tea to cover cost of packing it. Mr. O'Conor made me reduce the price to 3s. 6d. per lb. ; before this I only charged 3s. per lb. I never sold any musty flour. On one occasion I did mix some Nelson and Californian flour. The Nelson flour was guaranteed, and the other flour was an excellent sample. I bought the medicine-chest amongst other things, and paid £4 for it. I consider that I have a grievance, if any one has, considering the prices I paid for the store and the difficulties I had to contend with besides in getting paid. Mr. O'Conor has nothing to do with my books. Have been admitted as a special settler, and have taken up 200 acres under lease, besides buying a 10-acre section at £2 an acre. Reckon that I have spent over £300 in clearing and improving my land. Will supply a list of prices charged at the store. M. Jones : Came here from Charleston to show the settlers how to fish with nets. Have the largest family at Karamea, who are solely dependent upon my work. lam a butcher by trade. Have killed cattle for the Government, amongst others a white bull, which weighed 7-g cwts. I killed another bull also for Government, white, with red neck ; this one weighed about 800 lbs. Both carcasses were sold in the usual way by the storekeeper, Mr. Simpson. Have killed cattle for Mr. Dolphin, for which he has paid me. I have done no work for Mr. Dolphin for which Government has paid me. I render my accounts to the Government and to Dolphin, each, for the w-ork Ido for them. I have never done any work privately for Mr. O'Conor for which Government has paid me. I held a chain for Mr. O'Conor for about half an hour on one occasion, but I did it to oblige him, and would accept no payment for it. Am indebted to him for many kind actions. On the 23rd August last, Mr. O'Conor sent me to Mr. Simpson, the Postmaster, to ascertain when the next mail would leave, and was informed that there would be none for several days. On returning with Mr. O'Conor from the flagstaff, about an hour afterwards, we learnt that H. Jordan had been sent hurriedly away with a mail. Previous to that, I was engaged jointly by Mr. O'Conor and Mr. Marchant, of the Geodesical Survey, to carry some letters and telegrams to Westport; this was about the 17th July. I had the mail in my possession, but was delayed by Mr. O'Conor for part of a day, and in the meanwhile Mr. Jennings prevailed on Mr. Marchant to send R. Johnson, jun., in my place. I have packed up the tools and forge belonging to Government from the Mokihinui track ; they are now in the store. Mr. Jennings, District Surveyor : With reference to a statement concerning certain applications made for land adjacent to the Native Reserve, Simpkin's application was made on the 19th March, and Elford's on the 13th March last. I did not keep any record of the dates at first, but have done so of late owing to the information being useful to the Commissioner of Crown Lands. About a fortnight after Simpkins and Elford had applied, Healy came to me to inquire about land in the same locality, and expressed a wish to take up the next vacant allotment above the land last applied for. Had good reason to believe that Healy was aware that his application was subject to Simpkins and Elford's. Concerning the mode of employing survey labour, I understood from Mr. O'Conor that the men to be employed were those who were detained at home by family matters. I found this arrangement very inconvenient, as it necessitated my employing men who were incapable of doing the work through want of experience, Of late I have used my own judgment in the matter, keeping in mind as far as possible the necessity for employing men who were most in need of assistance. Was informed by Mr. O'Conor that it was essential that those who stood in need of assistance should be first considered, and have always endeavoured to give effect to the intention. Many of the settlers have had reason lately to consider that the Government work has not been distributed fairly. lam aware that work has been offered to nearly all who are discontented, but these men were not in a position to accept it, because they were in debt at the store, and had no means to procure provisions otherwise. The men I allude to are Hammond, Sinclair, Scarlett, Merchent, Remnant, Brown, Line, Laurenson, and Martin. Am convinced that, if a steamer had called regularly, provisions could have been obtained much cheaper, and an opportunity afforded to the settlers to have disposed of their produce. Consider that large profits have been made in the store since March, and that the stores were sufficiently high while the matter was under the control of the Government. This brought the inquiry, with tho exception of the evidence of Messrs. O'Conor, Rawson, and Scanlon, to a close.

APPENDIX B. 1. The following copy of a memorial forwarded by the Karamea settlers to the House of Representatives is referred to Mr. O'Conor, to be good enough to furnish replies to the allegations contained therein. A. Mackay. " To the Honorable the Speaker aud the Honorable the Members of the House of Representatives of New Zealand, in Parliament assembled. " The petition of the undersigned special settlers, resident at the Karamea, Buller County, in the Colony of New Zealand, showeth, — " That, as special settlers, we have been permitted to take up land at the Karamea on deferred payments. " That, in occupying land in such a remote locality, we were assured by the Nelson provincial authorities —1. That we should be supplied with stores at moderate prices. 2. That work would be given us whereby we might earn money sufficient to pay for such stores, and also to pay the instalments of money falling due on our land. 3. That a subsidized steamer would call at the port. 3-D. 7.

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" That for some time provisions were supplied us at moderate prices, in return for labour done on roads, but that we received little or no cash. " That, without notice to your petitioners, the Government store has been sold and its contents to the director of the settlement, or his trading partners, and that the price of provisions has been raised to an exorbitant degree. " That the distribution of labour has been made in a most capricious manner, many of your petitioners getting little or no work while others have been fully employed. " That no steamer has called at the port for many months past, and that therefore your petitioners have been debarred from obtaining stores from a cheaper market, and also from getting rid of any produce they may have had for sale. " That they have grave reasons for supposing and verily believe that large profits have been made by the present director of the settlement in trading transactions with your petitioners, in excess of any profits contemplated in the original scheme of settlement. " That they believe it would conduce to the progress of the settlement if the present director were relieved from his charge thereof, and that any further expenditure of public money on the Karamea Settlement should be under the control of the Buller County Council. " That the subsidizing of a steamer to call periodically at the port, and the outlay of a moderate sum of money on public works within the Karamea District, will make the settlement a success. "Tour petitioners therefore pray that your honorable House will investigate the matters complained of, and that such relief be granted to your petitioners as may seem just. " And your petitioners, as in duty bound, will ever pray, &c. " Dated 17th August, 1877." (Here follow 39 signatures.) " That, as special settlers, we have been permitted to take up land at the Karamea on deferred payments. " That, in occupying land in such a remote locality, we were assured by the Nelson provincial authorities —(1.) That we should be supplied with stores at moderate prices. (2.) That work would be given us whereby we might earn money sufficient to pay for such stores, and also to pay the instalments of money falling due on our land. (3.) That a subsidized steamer would call at the port." A. —The settlers were permitted to take up land in quantity in every instance in excess of what was promised, and have had possession for nearly three years without having been asked to pay a shilling of rent upon it. No assurance was given the settlers concerning stores except what was conveyed through the regulations (copy annexed), in which it will be noted that the conditions pertaining to provisions were made merely as a preliminary arrangement to start with, it being plainly intimated therein that seven months was the limit. A liberal interpretation, however, has been put upon the aforesaid condition, and the Government for the last two and a half years has supplied them with provisions and other necessaries at cost price— i.e., at a price calculated to cover the cost of the stores, inclusive of freight, storekeeping, and other incidental charges. Considering that this has been done, and that in addition work has been taken in payment for the provisions, &c, at prices much higher than the settlers were ever led to expect, and as high as could be obtained in any part of the southern hemisphere, I am at a loss to know how they can entertain any other feelings in return for such liberal treatment except gratitude. No promise whatever was given, to my knowledge, by the Provincial Government, to the effect that work would be given to pay for the instalments due upon the land in their occupation. The arrangement concerning the steamer was limited to six months, and afterwards extended without any promise of continuance. I beg to draw attention to the fact that the memorial has been signed by fifteen persons who are not entitled to style themselves special settlers. Subjoined is a list of the names objected to. The first eight are not classed as special settlers, the remaining seven are miners on the beach, and the last man (Mr. Harvy) stated at the inquiry that he did not sign the memorial, but believed that his wife had signed a paper in his name. List of Persons objected to. —J. Simpson, R. Johnson, jun., A. Lineham, C. Scarlett, A. Jacobsen, H. Jordan, G. Allen, F. Large, W. Hopley, C. Noggins, H. Laster, J. Cooper, J. McHarvy, H. Abbott, A. McDonald, AY. Harvy. "That for some time provisions were supplied us at moderate prices in return for labour done on roads, but that we received little or no cash." A. —Provisions have been supplied at moderate prices up to the present time, for which many of the settlers are still in debt, notwithstanding that payment has been taken from them at as high rate of wages as obtains in any part of the colony. Latterly, all payments have been made in cash either to the settlers or to their agents, and survey work has been distributed among them since last January amounting to about £300, which has also been paid for in cash. Within the last few days the p.s. "Result" arrived at Karamea from Westport with a cargo of provisions valued at about £400, sufficient to supply the settlement for nearly three months, and this was almost all sold for cash in two days. AVhere did the money come from? "That the distribution of labour has been made in a most capricious manner, many of your petitioners getting little or no work, while others have been fully employed." A. —This is also false ; the books of the settlement would show it to be so, even if every settler on the Karamea affirmed the contrary. A great deal of jealousy prevails among the settlers themselves, which it is very hard to guard against; but, upon examination, it will be seen that all have had sufficient work to provide for their needs. " That, without notice to your petitioners, the Government store has been sold and its contents to the director of the settlement or his trading partners, and that the price of provisions has been raised to an exorbitant degree."

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A. —From first to last a pure fabrication. Notice was given to the petitioners publicly, at a meeting held about the 15th of February last, in which fully three-fourths of the settlers were present, " that the store would be sold as soon as possible." The probable terms of the sale were also mentioned. The store was sold by me, under instructions, to Mr. Dolphin, whose offer was accepted by Government, and afterwards modified by me in the interest of settlers. No exorbitant prices have ever been charged at, Karamea, but these ideas have been engrafted in the minds of settlers by persons who well knew their inexperience, and who have succeeded in creating much discontent by false statements. This memorial was worded by Mr. Ings, of Westport, and forwarded to a person at Karamea, who spared no statement to mislead persons into signing a document which they must have all known to be full of calumny and falsehood, having only a thin shade of truth running through—just enough to mislead the unwary. " That no steamer has called at the port for many months past, and that therefore your petitioners have been debarred from obtaining stores from a cheaper market, and also of getting rid of any produce they may have had for sale." A. —No steamer has called at the port since April last. At that time all the settlers were stocked with provisions, which supplied most of them for three months. Since then they have been supplied on credit by Mr. Dolphin, in a most liberal way. If a steamer had called, she would probably have come and gone almost empty, as there were no goods that I am aware of waiting shipment, aud certainly there was nothing for sale or for shipment at Karamea ; and, in the absence of any inducement to call, steamboat proprietors would not send their boats on a speculative trip to a place out of the usual track, with the risk of encountering delay and other difficulties. " That they have grave reasons for supposing and verily believe that large profits have been made by the present director of the settlement in trading transactions with your petitioners, in excess of any profits contemplated in the original scheme of settlement." A. —lt is astonishing how any body of men could be induced to subscribe their names to such an unfounded assertion against one who has endeavoured to do his utmost for their advantage. But Ido not blame the settlers, who were duped, so much as the want of principle on the part of those who promulgated such ideas amongst them, with the full knowledge that such statements were false. No public man is safe against slander such as this. No profits whatever have been made by the storekeeping, which was conducted in a most plain and open manner. All the settlers were required to sign for goods upon their receipt, and a price-list was kept constantly suspended in the store. " That they believe it would conduce to the progress of the settlement if the present director were relieved from his charge thereof, aud that any further expenditure of public money on the Karamea Settlement should be under the control of the Buller County Council." A. —Now comes the object of the petition. The Buller County Council are evidently desirous to obtain control of any further expenditure, but if they do not make better use of it than they are now doing with the county funds, it will prove of little service to the district or to the settlers. In accordance with my instructions, I have made it known that the Colonial Government would limit the expenditure to the vote of last session, and that my connection with the settlement would, in all probability, end in October, 1877, as by that time the vote would be exhausted. The settlers have been persuaded that my services were then to be dispensed with, but that £1,000 would be spent by the Government through the County Council. In this way some of the settlers, with an eye to the future, have curried favour with those who were supposed to be my successors. If the Government determine upon expending any further sums upon the Karamea Settlement, the expenditure should, in my opinion, be under the control of some officer responsible to them, as I believe that, if done in that way, it will be more fairly and advantageously distributed. "That the subsidizing of a steamer to call periodically at the port, and the outlay of a moderate sum of money on public works within the Karamea District, will make the settlement a success." A. —l have previously recommended that a steamer should be subsidized to call at Karamea regularly after the Ist January next (vide my report of 13th April, 1877). The Karamea will never be a success while the settlers' minds are disturbed by persons seeking only selfish objects, regardless of the interests of the community. A very little assistance, if judiciously given, will be sufficient to help many to a comfortable and independent position. I propose giving my views to the Government, if required, in as full a manner as possible with regard to future management. Eugene O'Conob, Government Agent, Karamea.

APPENDIX B. 2. The following questions in connection with the administration of the Karamea Special Settlement are referred to Mr. Scanlon, to be good enough to furnish replies:— 11th October, 1877. A. Mackay. 1. Please explain your position and duties while in the Government service at Karamea, and furnish the date you were first engaged? 2. Is there any truth in the statement that the settlers were unable to ascertain the date of their accounts, as to the amount earned for labour done, and the amount due for provisions, &c, supplied them ? 3. Was any difficulty experienced in getting the settlers to work when indebted to the Government?

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4. Please explain the system followed with regard to the issue of provisions from the store, and the principle upon which employment was given ? 5. Was the Government store kept fully supplied with provisions at all times ; if not, please explain circumstances under which the stock ran short, also if any serious distress prevailed in consequence ? 6. Were the provisions sold at moderate prices? 7. Were provisions refused at any time to settlers; and, if so, for what reason ? 8. What restrictions were placed upon the issue of supplies, or extent of credit allowed to settlers ? 9. Please explain the circumstance under which dairy cattle were sold to the settlers, and the part that Mr. O'Conor took on such sales ? 10. Were you aware at any time of settlers or others being unable to bring cattle by the steamer to Karamea ; if so, please explain under what circumstances ? 11. Under what circumstances did you leave the Government service at Karamea ? 12. At the time of your leaving, was it generally understood that the affairs of the settlement were to be wound up ?

Mr. Scanlon to Mr. A. Mackay. Sib,— Cuba Street, Wellington, 12th October, 1877. I have the honor to forward you herewith, annexed to your memorandum, the following statement relative to the Karamea Special Settlement, and the position which I held under the Provincial Government. 1. I held the position of overseer and local officer in charge of the settlement under the Nelson Provincial Government. I was engaged and entered upon my duties on the 19th of April, 1875 ; left the settlement on the Bth of October, 1876; but remained in Nelson in the service of the General Government until the 16th of January, 1877. 2. No ; the settlers had ample facilities of ascertaining the state of their accounts, for not only was the storekeeper supplied with a list showing their balances monthly, but, on every occasion when they required me to do so, I went over every item of their accounts with them, in order to explain exactly how their accounts stood. This was not a very easy task, as some of them can neither read nor write, and besides are very suspicious. 3. Yes; many of them gave great trouble in that way. Not only was it found difficult to get some of them to work, but when at work, particularly when on the Little Wanganui track ; it was equally found difficult to keep them at work when there, notwithstanding that they were allowed very high prices. Almost every week, on one pretext or another, they would leave the work and return to Karamea, until at last recourse was had to stringent measures, and notice was served on those who were the worst that their credit at the store would be stopped unless they remained at work; and then a regulation was made that settlers in debt would not be allowed to receive from the store goods for more than half their earnings until the debt was paid. Nearly all the settlers could have been in a much better position than they now are had they chosen to keep steadily to work. 4. In the first place stores were issued from the store with but slight check, in order to give settlers everything they wanted to start with ; afterwards, when the characters of the settlers became known, some who were inclined to extravagance were limited. In a few cases of settlers who were looked upon as deficient in principle a close watch was kept, and stores limited to actual necessaries. The stores were issued by the storekeeper, who took a receipt upon delivery. From this receipt I formed my day-book; a duplicate of the receipt was handed to the settler, and the receipt forwarded to Nelson. Employment was given in the most free and unnestricted way to most of the settlers, nor was it ever refused except to some who had accumulated balances to their credit in advance of their requirements. The principal difficulty was found in getting settlers to work. 5. Yes ; the Government store was always fully supplied during my time with necessaries ; other articles would sometimes run out, but no notable inconvenience was ever suffered in consequence. 6. Provisions were at very moderate prices notwithstanding the extra expense. The prices of leading articles were mostly under Westport prices, and no charge made for delivery, which, in some cases, incurred much expense. 7. Provisions were never refused to any of the settlers, although sometimes notified that they would be, in order to get them to work. 8. At first, none. Afterwards credit was limited to suit different cases, the lowest limit of credit being £20, the highest about £60. A few were as high as £75. 9. Dairy cattle were supplied to the settlers on private arrangements by Mr. Dolphin, and if they had not the money to pay for them they were entered through the Government books upon Mr. O'Conor's approval of the price charged. When Mr. O'Conor thought the price too high, Mr. Dolphin had to reduce. In other instances Mr. O'Conor bought cattle for settlers, and brought them down in the steamers. 10. No. lam aware that persons in and outside the settlement had every facility to bring down cattle to Karamea. 11. I left the Government service in consequence of being informed by Mr. O'Conor that I was required in Nelson, and also the settlement being about to close, the services of an overseer would not be required. 12. Yes. Mr. O'Conor informed the people at Karamea that the balance of the money to be expended was almost exhausted, and that he was instructed to wind up the affairs. I have, &c, A. Mackay, Esq., Government Buildings. P. Scanlon.

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APPENDIX B. 3. Particulars of questions submitted to Mr. O'Conor in re administration of the Karamea Settlement, with his replies : — 1. Please explain the nature of your present position in regard to the Karamea Settlement, the amount of remuneration you receive from the Government, and whether it was not understood that you were at liberty to attend to your own private affairs while engaged in winding up the settlement ? —I occupy the position of an Agent for the Government at Karamea, for the purpose of winding up the affairs of the settlement, with a view to carrying out the intentions of the Government, as expressed to me by the Hon. the Premier and the late Executive Officer for the Nelson Provincial District— i.e., to expend the balance of the sum appropriated for the purpose of establishing the settlement in the most advantageous way possible, and to realize the assets with the distinct understanding that the expenditure was not to exceed the vote and proceeds of the sale of assets. The salary I receive is only £15 per month, with a travelling allowance of 10s. per day. The only condition affixed to my appointment is that I should visit the settlement once each month. lam quite free to enter into any trading or other transactions upon my own account; my engagement being only to do certain specific work. 2. Was there anything in your arrangements with the Government for winding up the affairs of the settlement that debarred you from taking part in trading transactions there, should you deem it advisable to do so ? —Nothing whatever; indeed it was understood that I was about doing so when the appointment was made. 3. Is there any truth in the assertion made by the memorialists that you have an interest with Mr. Dolphin in the store ?—The assertion is a deliberate falsehood. 4. Can you explain the reason why Mr. Dolphin, on being requested by the settlers to supply them with stores, or sell them cattle, stated he must first consult you ?—Mr. Dolphin could perhaps answer the question better than myself; but I believe that on some occasions he may have made the statement to avoid refusal in more direct terms, and on other occasions in order that he might ask me how the applicant stood upon the books, as I generally refused to pass to Mr. Dolphin's credit the amount of sales made of cattle by him to settlers unless the settlers in question had earned the money. 5. Do you own any of the cattle now running at the settlement, or have you any interest in them ?—I own no cattle running at the settlement. I have five head of cattle running on my own property at Maori Point, and about forty up the AVanganui River, twelve miles from the settlement. I had no cattle at all in the district until towards the end of last July. 6. What was the motive for paying the settlers employed on public works with provisions in place of cash ?—The question may be answered by saying that the payment for goods was for the most part made in labour. AVhen the settlement was first formed the settlers had to be provided with clothes, food, cooking utensils, and tools upon credit, and their wives and families maintained iv the depot at Nelson until the settlers had built houses for their accommodation. There was no store at Karamea, consequently the Provincial Government, under whose charge the settlement was formed, were compelled to establish a store to insure provisions and other necessaries to settlers. Afterwards, when the settlers were found to be in debt for their outfit, it was necessary to provide them with provisions until they worked off the old score, and so it went on. The Provincial Government were averse to keeping the store, but no private persons would take it without a guarantee, which the Provincial Government were not in a position to give, as the business of the store was principally in supplying settlers on credit, in order by degrees to work off their debts. Little or no cash was paid for work, as the settlement was formed to assist emigrants in making homes upon the land The store was supplied with necessaries at a reasonable price, and no more work given than secured the object in view. When cash was paid it was either for some urgent matter that could not be otherwise provided for, or in consequence of the party claiming it leaving the settlement and withdrawing his balance. It is only very lately that any of the settlers ever applied for cash for their work, and then the applicants were indebted to the Government, and evidently wanted the money to avoid settling their accounts. 7. Was the Government store offered to any person outside the settlement, or to any one else within the settlement, besides Mr. Dolphin; if not, please explain the reason ? —The Government store was offered by me to a great many persons both at Karamea and outside, but the terms of sale seemed to prevent the persons I asked from entering into the speculation. The terms upon which I offered the store were that the building should be taken at a valuation, and the balance of stock at Nelson cost, with freight added, offering no guarantee as to trade or tenure, and reserving a small store upon the wharf for Government use in case it was decided to send provisions to the settlers after the store would be sold. 8. Was stock taken of the goods before the store was sold, and what was the gross value of it?— Stock was taken of the goods in store before the store was sold; the gross value estimated at £150. 9. Upon what principle were the several values fixed ? —The value was fixed upon the basis of cost, allowing for deterioration where any existed, or for wear and tear. 10. What amount did the building and store realize, and was the sale hampered with any conditions that would deter persons generally from purchasing it? —Air. Dolphin made alternative offers to me, which I submitted to Government. One was for a certain price, with rental for the ground upon which the store stood; the other was the offer which I was instructed to accept—namely, £50 for the building, and balance of stock at Nelson cost prices. After the authority had been received, I improved upon the price by obtaining Nelson cost and freight as well. Previous to the sale, Mr. Dolphin undertook to sell at moderate prices, and to refrain from selling fermented and spirituous liquors; he is also subject to six months' notice, under which he is compelled to move the store. Mr. Dolphin was made aware that the Government sold no good-will, nor gave him any guarantee as to trade; on the contrary, I explained to him that probably the Government would send down provisions as heretofore in payment for work to settlers. He bought the store to use as a butcher's shop, with the intention of keeping stores for persons outside the settlement. 11. Was Government apprised of Mr. Dolphin's offer, and was it approved ?—Mr. Dolphin's offer was submitted to Government and accepted.

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12. Was it necessary, in the interest of the settlement, to select a purchaser that would carry out the intention of the Government in regard to the disposal of the stores to the settlers, and the non-sale of spirituous liquor?—lt was very necessary, in the disposal of the store, to secure a purchaser who would conduct business upon a respectable footing ; and I made conditions, outside the offer of Mr. Dolphin, to secure the settlers from the sale of spirituous liquors, well knowing that many of them would, in all probability, relapse into old and vicious habits if temptation was thrown in their way. 13. Was there anything else besides the building and stores included in the sale to Mr. Dolphin ? —Nothing, except an implied permission to occupy one acre of the reserve. 14. It has been stated that a horse, dray, and harness, belonging to the Government, was sold to Mr. Dolphin under the cost price, while at the same time other persons would have given a higher price for it. Was that the case? —The statement, like others of the same character, is a deliberate falsehood ; the books show it to be so. No person but Mr. Dolphin would have given the price. The Governmemt has not lost one shilling by either stock or implements sold at Karamea. The only loss has occurred where I was compelled to send a few articles back to Nelson, and take for them an abatement upon cost price. The only article which now occurs to me as having been thus sent back was a chaff-cutter bought from Buxton and Co., and returned after using it. 15. AVhat arrangements were made by Ihe Government with Messrs. N. Edwards and Co. to run a steamer regularly to the settlement ?—At first, N. Edwards and Co. required a guarantee of £100 for every vessel that visited Karamea, freight at the same rate as between Nelson and Westport; afterwards, when it was found that the freight could not reach that sum, an agreement was made that a steamer would call at any time for a subsidy of £25 —freight at AVestport rates —Government to give notice when a steamer was required, and whenever any freight offered notice was given. 16. Has such arrangement been adhered to; if not, please explain the cause that led to a departure ? —Some delay occurred occasionally, owing to bad weather or causes connected with other engagements of the steamers. 17. AVhen did the last subsidized boat call, and has there been one since; if so, did it come under private arrangement?— The last steamer subsidized by Government visited the settlement in April. This month a steamer visited the settlement under subsidy from the Buller County Council, but goods for Mr. Dolphin were refused by her. 18. AVhat understanding was there with the settlers respecting the prices to be charged for stores in excess of the original cost, and has it been adhered to ?—For the first six months the settlement was conducted upon the basis of regulations issued by the Provincial Government. The regulations were signed by myself, and issued so as to supersede regulations issued previously. Since that time the understanding with the settlers, and the wish of the Provincial Government, was, that a price should be charged sufficient to cover the cost of goods, freights, store-keeping, and all other charges incidental thereto. That has been adhered to, the articles of common use being frequently sold at a loss, but the loss being made up in the sale of other things. For instance, in the sale of meat the price was uniformly kept at sd. and 6d. per lb., but it often happened that, with first cost, losses, freight, and other expenses, the meat really stood in double that sum, still no higher charge was made. The adjustment of prices was generally left to the overseer, who had previously been a storekeeper, and the Government storekeeper, who also had some experience in that line. It sometimes happened that, upon my attention being draw-n to some item, I instructed the storekeeper to make a reduction. A price-list was by my instructions kept suspended in the public portion of the store. 19. Did you promise that the settlers should be supplied with rations till the end of September?— On the contrary,! called a meeting of the settlers on the 14th and 15th of last February, and informed them that the balance of the money available for expenditure at Karamea would not do more than supply them with bare necessaries until about September next (the present month) ; that the Government store was for sale, and would in all probability soon be closed ; and, in fact, going exactly into their position, according to my own instructions. I wound up by recommending the settlers who had grown-up sons to send them away to earn some money, and also recommended those who had made a bad use of their time and opportunities to leave the settlement, as henceforth it would be no place for them. I also gave notice that, as the money available was so small, I would be compelled to limit employment to heads of families. 20. Were the settlers supplied with a stock of provisions before the store was sold?— Previous to the store being sold all the settlers received a large stock of provisions, as the books show. In most instances the stock then received lasted three months, and in some in excess of that time. 21. Was there anything in the arrangement for supplying the settlers with stores that would prevent the Government from closing the store at any time ? —I consider that, as the Government kept the only store at Karamea, there existed a moral obligation resting upon them to see, before closing their store, that the people had fair notice, so that they could provide themselves with necessaries elsewhere. Beyond that; there was no obligation that lam aware of. 22. AVere the settlers justified in supposing that they were entitled to receive the stores brought to the place at the expense of the Government at the same price after the store was sold to a private person as heretofore ? —Certainly not. The Government sold their stores, the settlers having nothing whatever to do with them. But an obligation under an arrangement with myself existed binding Dolphin to sell at reasonable prices, which he did. He submitted the prices of provisions to me previous to commencing business, and on the part of the Government I approved of them. His pricelist was almost identical with the Government price-list. If he has done anything wrong in respect to the prices the blame is mine, as I consented to his price-list, which appeared to me extremely liberal, and to my knowledge much less in leading articles than ordinary AVestport prices. 23. Please explain concerning a rata tree said to have been cleared off your land at Government expense ?—On the main road through the island, at Karamea, a settler, named W. Harry, took a contract to clear about seven chains of road, at a stipulated price per chain, an allowance being made him of £2 10s. or £3 in consideration of his felling and burning off a large rata tree which stood about

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the centre of the road. W. Harry did a portion of the work and felled the rata, the tops of which, with a portion of the trunk, fell upon some cleared land of mine (section 6). Some time after, Harry came to me saying that he could not complete the contract as his cow had broken her leg and required constant attendance. Under the circumstances, I gave Harry credit for day wages for the time he had already spent on the contract, and relet the work to settlers named Elford and Simpkin, including the burning off of the rata tree. The great difficulty was to get rid of the butt, as when the tree fell it came down roots and all, completely blocking up the road. I was at the time detained at Karamea by bad weather, and after Elford and Simpkin lit the fires on the first day of their commencing work they left it, and for three days I kept the fire going myself. It is probable that, had I not let the contract in the first instance to burn away the tree, and had the top of the tree not been required to burn the stump, I would, from motives of delicacy, have cleared away the top of the tree at my own expense. Several other trees which you have seen have been felled by road contractors upon my property, and, were I not acting for Government, I would undoubtedly insist upon their removal. As it is, Ido not propose ordering their removal at Government expense, but I shall ask for instruction concerning them. 24. How many settlers were originally located at Karamea, and how many now remain ?—Original number fifty-four, now reduced to forty-four—of the latter number, four are newcomers. 25. How many families were located on the South Terrace, and what was the extent of land cleared and brought into cultivation by them ? —Twenty-five families—about thirty-five acres. 26. How many families were located on the North Terrace, and what was the extent of the land cleared and brought into cultivation by them ?—On the north side of the Karamea River there are thirty-one families, including that of the late storekeeper, and S. Castles, who is not a settler, but works as a cabinet-maker upon his own land. 27. How many settlers are located on each side of the river at the present time, and what is the number of children in each locality ? —On the northern side ofthe river thirty-one families, on the southern side, all living on the Promised Land, except the family of Meyrick Jones, which is located at the mouth of the river—fifteen. The number of children on the north side is fifty-two, on the south thirty-nine. 28. Which is the best plan, in your opinion, for supplying education for the children in the district ? —I think that, in the first instance, a school should be provided upon the Education Reserve (section 18), and, if the attendance of children from the Promised Land cannot be secured in any other way, the master should divide his attendance, according to the necessities of the case, between the main school and a branch establishment upon the Promised Land. 29. AVhen the store was sold, was there any understanding with Mr. Dolphin that the debts incurred by the settlers at the store would be guaranteed by you by obtaining orders from them on the Government for work done ?—No understanding whatever existed with Mr. Dolphin with regard to the debts of settlers, nor did I know until last July how payment would be made to settlers for work done. He gave them credit at his own risk, except in two cases where the settlers were in debt to the Government. Upon his refusing to supply them with provisions, I promised that I would recommend, if their earnings were not sufficient to pay the debt to Government and to him, that, if he supplied the provisions they required, the earnings should be divided equally between the two accounts. 30. Please explain the position you occupied as regards the settlers and Mr. Dolphin in connection with the store, and, if orders were given by them, were they given voluntarily to pay for stores supplied? —The position I occupied between Dolphin and the settlers was that of a mediator. Whenever any question of disputed accounts occurred, I took the part of the settler, and investigated the matter on his behalf. On several occasions when Mr. Dolphin refused to extend credit to particular settlers, I interfered and prevailed upon him to do so, sometimes becoming personally liable for the payment of the debt. The orders were given voluntarily. 31. Have you at any time, when the settlers were out of employment and in want of provisions, given them work at your own expense; if so, how much have you expended in that way ?—Tes; I found that, in my desire to complete the work of settlement, I was impeded by the smallness of the means at my disposal. I have supplemented those means by private expenditure, and in that way I have expended most unprofitably about £250. Further particulars upon that head may be seen in the schedule to my report dated April 13, 1877. 32. Please explain the principle observed in distributing labour amongst the settlers ?—Labour was never refused to any settler who had not a credit upon the store books. When a settler had a credit, he was then requested to employ himself at home upon his land, all his wants being provided for. All settlers received employment on requiring it, unless they were in credit. The plan adopted was to give employment in order to help the settler to get necessaries, always taking care to leave him sufficient time to clear and cultivate his own holding. 33. What led the Government to commence a system of store-keeping ?—The store-keeping on the part of the Government was a necessity; no other means of providing for the settlers existed. The Provincial Government would at any time have been glad to have been relieved of the trouble and toil connected with the store, which mostly fell upon myself. 34. Have you at any time received a discount when purchasing stores, <fee., for the Karamea store? —Never, directly or indirectly, have I received any payment or allowance whatever, and I shall be much obliged if you will confirm this by reference to the merchants and tradesmen with whom I have done business on behalf ofthe Provincial or General Government for the last three years. I ask this particularly, because it has been insinuated that I have been paid in that way for my services to the Karamea Special Settlement; and I affirm that all the work I have done and all the hardships I have endured since my connection with the place until the first January last have been entirely unrequited. AVhen in office as Provincial Secretary of the Nelson Province I received the salary attached to that office, and I think it will be generally acknowledged that the extra work, anxiety, and hardships endured by me in connection with the special settlement were such that very few men in my position would have undertaken, nor could it be considered as strictly pertaining to the office held by me. The work which I have performed since the Ist of this year is also out of comparison with the

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payment. Ido not state this with a view of making any claim for further payment, but in answer to the contemptible assertions made by persons who see no other motive of action or ambition except money. 35. Have you at any time, to prevent inconvenience and delay to the settlers who have done labour for the Government, advanced the amounts due them out of your own private means, and to what amount? —Yes; besides small sums advanced to different settlers (of course without charge) at various times to assist them in their struggles, last July I advanced nearly £200, and in August £200 more. At the present time I hold vouchers for £223 for money advanced. In each case the money has been paid by me in order to save private persons the inconvenience arising through the irregular postal communication with Karamea, or the delays in the Colonial Treasury. 36. Did you at any time endeavour to induce any person in Nelson or elsewhere to open a store at the Karamea; if so, please state their views on the subject, and why they declined to do so ? —-Yes; both in Nelson and Westport the views of parties with whom I communicated were generally that it would be a very bad speculation; all insisted upon some guarantee from Government, and most were prejudiced by the constant repetition in newspapers of the tale that the " Karamea was a failure." 37. Please explain the reason why flour was charged at 20s. per 100 lbs. at the Government store, while at the same time it is asserted that it was quoted in Nelson at 13s. ?—I am not aware that such is the fact, but if so it may have been an error in the quotation, or that the flour was purchased at a higher price. From the delivery of goods on board to the landing at the Karamea store, the cost would be enhanced about £3 ss. per ton, made up in this way: AVharfage, 2s. 6d.; freight, £1 10s.; proportion of subsidy, £1 ss. ; landing and storing, 7s. 6d.: total, £3 ss. To this must be added storekeeping and other incidental charges—for instance, when all the settlers were working on the track between Little Wanganui and Mokihinui, their provisions and tools were carried to them at the works at a very heavy expense, but no extra charge was made. 38. State the reason why some of the settlers appear to have received more work than others ?— The reasons are various, each particular case having its own. For instance, take Scarlett's and Johnson's—they are the two highest—their families were much larger and better able to work. Some again have small earnings because they did not need so much employment as others; but it will be found that all had sufficient to keep them free of debt, and that, when they did not keep so, it was either in consequence of their unwillingness or inability to work. 39. Is there any truth in the assertion that after the County Council election you refused work to persons who were supposed to vote against yourself?— The day after the election I laid out work, as the books of the settlement will show, and all, without distinction, who were in need of employment received work either by the day or under contract. 40. Is there any truth in the statement made that you gave work to J. Hammond, L. Laurenson, D. Scarlett, J. Sinclair, E. Merchent, C. Martin, W. Remnant, and A. Lineham, but that they were unable to do the work for want of provisions ?■ —There is not a particle of truth in this statement. You will find, by the statement of J. Hammond at the inquiry, that a contract was given to him, and that he had means at his disposal to purchase provisions, and that he had also received credit for provisions from the storekeeper, Mr. Dolphin. AVith regard to the others it will be sufficient to refer you to the books, where you will find that all the persons named, except J. Sinclair, were fully employed on day-work under Benjamin Brown (overseer) from the day after the election to the end of August, at which time all work was discontinued, except such as was then under contract. J. Sinclair completed a contract, in company with J. Moffat, which put them both in credit; neither received any work since, nor did they apply for any. It is needless for me to enlarge on this subject, as each of the parties contradict the assertion in the statements made at the inquiry. 41. Please explain the circumstances under which you discontinued importing cattle or sheep, either for the supply of fresh meat or dairy cattle to settlers ?—I discontinued importing cattle for the purpose of butchering in consequence of my realizing the fact that, what between the price paid for the stock, the freight, cost of looking after the stock when at Karamea, losses by death, and other causes, as well as the expenses connected with butchering, the meat became very expensive indeed, I calculated that lOd. per lb. would not cover cost. Under those circumstances, I arranged with Mr. Dolphin for the supply of fresh meat to settlers at 6d. per lb., aud by the arrangement secured to the settlement a constant supply of fresh meat at a much more reasonable price than the Government could supply it without loss. AVith regard to dairy cattle, I discontinued bringing them down, first, because when settlers wanted dairy cattle they wanted them either on the point of calving or in full profit, and I found that, if I succeeded in purchasing cows suitable as springers, the price was generally high, and the risk of shipping cows in full milk, if brought down to Karamea, owing to the want of pasture and shipping, were generally worthless when they arrived, and, besides, I found a great mortality prevailed among cattle during the first six months after their arrival. If I had undertaken to bring down dairy cattle for settlers, they would have taken such as suited them, the balance would have been left on hand, and the losses through death or otherwise would have fallen upon the Government. Mr. Dolphin was at this time importing a large number of cattle of all kinds, and offered to supply settlers with any animals they wanted, at reasonable prices, and to give them a choice from his lot. Under the circumstances, I discontinued importing stock on Government account —in the first place, because I did not think it would be fair to Mr. Dolphin, whom I had induced to settle at Karamea, and, secondly, because I concluded that the settlers would, through him, get cattle with less risk, in consequence of their being acclimatized, as they wanted them, and at such prices as would not be too high. Previous to Mr. Dolphin receiving credit for cows sold to settlers, I generally satisfied myself that the price was not too high. If it was found that the price was excessive a reduction was insisted on. On one occasion a cow and a calf were bought, I think, by E. Hall for £20. I thought this too much and refused to pass the amount to Mr. Dolphin's credit, insisting upon a reduction of £4, which was agreed to. On another occasion I found fault with the prices he proposed charging for some cattle which were yarded for sale, and Mr. Dolphin agreed to allow me to value them; I did so, my value being nearly £2 per head less than his. They were sold at my valuation.

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42. Is there any truth in the assertion made that you have acquired a large quantity of land at Karamea, to the extent of monopolizing all the rest of it? —The only land I have acquired are some freehold sections purchased from the Natives. The whole extent is under 200 acres, and upon that property I have expended money in clearing, grassing, fencing, &c, for the benefit of the settlers up to the present time, the settlers' cattle having had full enjoyment of my improvements. 43. Are you aware of any settlers or others finding any difficulty in bringing cattle to Karamea ; if so, under what circumstances did such difficulties arise? —Nearly every steamer which left Nelson for Karamea had vacant space. The owners of the vessels were allowed to take whatever cargo they thought fit for their own benefit. No cattle were ever refused shipment to my knowledge ;in fact, the only refusal ever made, either for cattle or freight that I can remember, was at my request. On the occasion of one of the steamers being just about to leave, two or three large pigs were brought down, when it was proposed to take them on board and turn them loose amongst some sheep. I objected to their being taken in that way, insisting that if they were taken on board they should be penned off in the usual manner. There was it appears no time for that, and they were left behind. 44. Referring to clause 2 and 9 of the prospectus of February, 1875, respecting the principle on which the special settlers were to acquire land at Karamea, please explain the mode adopted hitherto to carry out the conditions of clause 2, and in what position the settlers now stand in regard to the land they occupy ; also, whether they will receive a grant of such land in pursuance with the terms of the aforesaid clause, provided the occupants conform with the conditions ? —The clause has been drawn in accordance with clause 75 of " The Nelson Waste Lands Act, 1874;" therefore, in order to bring the special settlers under the operation of the said Act, all that was necessary was to insure that settlers complied with the provisions of the Act by making their application in due form for their land, and paying the necessary fees and deposit in the first instance, and by the subsequent payments of the rents when due, and also to insure that the Waste Lands Board did not assess the special settlement lands at more than £1 per acre. The applications have been made, and all preliminary fees and deposits paid. I have been informed, both by the late Superintendent of the Nelson Province, Mr. Curtis, and by the present Commissioner of Crown Lands at Nelson, that the Karamea Special Settlement lands have been assessed at the uniform rate of £1 per acre. No leases have yet been issued, consequently none of the settlers are as yet liable to pay rent. According to section 75 of "The Nelson Waste Lands Act, 1874," settlers will be entitled to Crown grants of their lands if they comply with the conditions set aside in clause 2 of the prospectus. 45. Were the terms set forth in clause 2 of the prospectus made with the cognizance of the Waste Lands Board, and has any record been made thereon ?—Yes ; but I know nothing of the record. 46. Please explain why the prospectus of February, 1875, was substituted for the former one issued in November, 1874 ?—To remedy certain discrepancies, and to make regulations generally applicable to Nelson special settlements. 47. Can you state the approximate cost of the tract from Little AVanganui to Mokihinui, also the length of road made ?—About £7,500, including survey and exploration ; the length is something under eighteen miles. 48. Does the track in question open up any land available for occupation; if so, please state approximate area?— Besides rendering the Karamea and the country north of it accessible, the track also traverses between Mokihinui and Little Wanganui some good land, and, although much of it is hilly, yet I believe that in course of time it will all be taken up by settlers ; at present it is locked up, and settlement upon part of it precluded, in consequence of its forming a portion of the Mount Rochfort Coalfield Reserve. I cannot hazard an opinion with regard to the amount of available land intersected by the road, for, although I have travelled it frequently, I have not had an opportunity of exploring the country on either side ; and, as the whole is densely wooded, my observations have been only of a superficial character. 49. Would it be advisable to expend a further sum in improving the track; if so, name the approximate amount in your opinion required to make it passable?—By clearing the slips and reparing two or three culverts and boggy places the track will be rendered available for summer use, either for horses or pedestrians. The cost would be about £60. But to render this track good in winter would enter entail a much larger expenditure, owing to the scarcity of road-metal along the line. It would be very advisable to keep the track in repair ; but I think that the expenditure above indicated should suffice for the present.

APPENDIX C. RETURN of POPULATION, STOCK, and AREA of CLEARED LAND, &c.

Locality. Males. Females. Children. Total. Houses. No. of Acres Cleared, including Bush newly felled. Stock. Horses. Cattle. Pigs. iramea South iramea North 20 33 20 23 39 52 85 108 20 30 55f 126 "a 28 200 43 66 59 43 91 193 50 181f 228 108 4—D. 7.

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APPENDIX D. RETURN of SETTLERS EMPLOYED on PUBLIC WORKS and other Labour, showing the Amounts earned by each respectively since the Commencement of the Settlement.

Total No. of Family, including all Members. Amount earned al Public Works, &c. Amount earned on Survey since January 1, 1877. Total Earnings. Remarks. Names. 1. Johnson, sen., R. 8 £ s. d. 460 0 0 £ a. d. 4 0 0 £ s. d. 464 0 0 An early settler. There are two adult males in this family. Early settler. Three adult males in the family. Early settler. Three adult males in the family. Early settler. Two adult males in the family. Early settler. 2. Scarlett, D. 10 567 0 0 29 10 0 596 10 0 3. King, E. 3 345 0 0 29 0 0 374 0 0 4. Liheham, A. 6 355 0 0 26 10 0 381 10 0 5. Moffat, J. 6. Merchant, E. ... 7. Kemnant, W. ... 8. Martin, C. 9. Hart, J. 10. Sinclair, J. 11. Laurenson, L. ... 12. Brown, B. 13. Line, D. 14. Coots, M. 15. Lawrence, C. 16. Cooper, J. 17. Castles, W. 18. Blackburn, J. ... 19. Gaynor, J. 20. Hill, S. 21. Curtin, J. 22. Jones, M. 23. Gravnay, D. 24. Healey, J. 6 4 8 5 5 4 6 3 3 4 1 3 5 8 3 4 6 9 1 1 286 0 0 212 0 0 254 0 0 239 0 0 258 0 0 235 0 0 194 0 0 208 0 0 193 0 0 194 0 0 220 0 0 191 0 0 232 0 0 264 0 0 239 0 0 211 0 0 226 0 0 130 0 0 148 0 0 12 0 0 4 0 0 29 0 0 286 O 0 212 0 0 254 0 0 239 O 0 258 0 0 239 0 0 194 0 0 208 0 0 193 0 0 194 O 0 220 0 0 220 0 0 232 0 0 264 0 0 258 0 0 211 0 0 232 0 0 130 0 0 148 0 0 12 0 0 n it ii jj )» „ a weakly man. 5, 11 Head of family drowned last April. This settler is an expert, and was the only person, except S. Hill, who would undertake rock-blasting, consequently he received more work than would otherwise fall to his share. Same remarks as No. 15. 19 0 0 6 0 0 25. Dolphin, H. 1 141 0 0 141 0 0 This settler only received sufficient work to clear off his debts to Government, and a small balance due to the local storekeeper. Remained for some time to accommodate the Government after he had taken up his land, as he was the only trustworthy person available to do packing. Received work until it became quite evident he had no intention of becoming a settler. He was then struck off the books. 26. Jordan, H. 1 78 0 0 78 0 0 27. Adams, J. 28. Large, F. 1 5 160 0 0 158 0 0 160 0 0 158 0 0 He has not cultivated his land, and has refused to work off a debt which he owes to Government; is not considered now as a settler, and is working for a private individual. Was engaged as an expert to erect the Government store and other buildings. He also received other work from time to time. Has only taken up land lately. 29. Jacohsen, A. 30. Svmonds, J. 31. Avery, R. 32. Mathews, C. 33. Black, J. 34. Cannody, J. 35. Conor, J. 36. Hawes, H. 37. Glidwell, C. 38. Simpkin, J. 39. Elford, J. 40. Hammond, J. ... 41. Day, J. ' ... 42. Harry, W. 43. Graham, E. 44. Allen, M. 45. Browne, S. 1 5 8 1 5 3 4 G 2 4 4 5 4 2 5 1 1 138 0 0 193 0 0 217 0 0 126 0 0 260 0 0 193 0 0 230 0 0 173 O 0 177 0 0 208 0 0 229 0 0 225 0 0 177 0 0 113 0 0 98 0 0 82 O 0 131 0 0 9 10 0 75 0 0 10 0 0 39 10 0 3 0 0 138 O O 193 0 0 217 0 0 135 10 0 335 0 0 193 0 0 240 0 0 212 10 0 180 0 0 208 0 0 229 0 0 239 10 0 177 0 0 113 0 0 98 0 0 82 0 0 131 0 0 14 10 0 Totals 9,380 0 0 298 10 0 9,678 10 0 Total of aj Average e Average e Total nu_ ggregate eai jarnings eac' earnings eacl iber employ nings i over a peri' per annum id, 45. id of three ears £9,678 10 215 0 71 0 O 0 0

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APPENDIX D 1. Proposed Analysis of Expenditure on the Karamea Special Settlement. Buildings. Freight of goods, &c. Sundries. Cost of surveys. Boat, horse, &c. Cost of management, including necessary tools, &c. Provisions. Expenditure on public works, including amounts paid to settlers for labour done. By Authority: Geoege Didsbuey, Grovernment Printer, Wellington.—lB77. Price Is. 3d.]