CHEVIOT ESTATE (COPIES OF CORRESPONDENCE RELATING TO THE ACQUISITION OF THE, BY THE GOVERNMENT).

Appendix to the Journals of the House of Representatives, 1893 Session I, C-09

a—9

1893. NEW ZEALAND.

CHEVIOT ESTATE (COPIES OF CORRESPONDENCE RELATING TO THE ACQUISITION OF THE, BY THE GOVERNMENT).

Laid on the table of the House by the Hon. Mr. J. McKenzie, by leave.

No. 1. The Teustees of the Cheviot Estate to the Commissioner of Taxes. Sic,— Christchurch, 30th Septemher, 1892. We, as'trustees of the estate of the late Hon. W. Robinson, hereby give you notice— (1.) That we are dissatisfied with the amount at which that part of the lands of our trust estate, which lie within the County of Cheviot, is assessed : (2.) That we call upon you either reduce such assessment to the sum at which such land was valued in our return, or else to purchase such land at the said sum at which the same was valued in such return. We think that it will be admitted that by taking this course we offer the best proof in our power of our belief in the accuracy and sufficiency of our return. We have, &c, E. E. Eobinson. C. R. Campbell. Emily Campbell, by her attorney, Geo. G. Stead. Jos. Palmer. H. D. Bell. Eleanor Lance, by H. D. Bell. To the Commissioner of Taxes, Wellington.

No. 2. The Commissioner of Taxes to the Hon. the Colonial Treasurer. Wellington, 11th October, 1892. The trustees in the estate of the late Hon. W. Eobinson have called upon me to reduce the value of the Cheviot property from £304,826, the assessed value, to £260,220, the value entered in the owner's return, or else take over the property, &c. The area is 84,222 acres. The improvements are assessed at £54,300, and were returned at £60,150. I should be glad to have a report from an officer of the Survey Department, and suggest for your consideration that Mr. Marchant, Chief Surveyor, Christchurch, should be authorised to inspect the property, and report. C. M. Crombie, Hon. the Colonial Treasurer. Commissioner.

No. 3. Mr. J. A. Brown to the Commissioner of Taxes. Sir,— 14th October, 1892. Beport on Cheviot Hills Estate. I have the honour to report to you as to the quality and character of the land on this estate. I am of opinion that there are 20,000 acres of agricultural land fit for farming purposes, and about 20,000 acres of arable land suitable for growing turnips and English grasses. It is impossible for me to fix an exact area as the map does not show the base-line of the hills. The remaining 43,630 acres is purely pastoral land, of which 35,600 acres is of first-class quality. There is no large I—C. 9.

a—9

2

area of heavy deep land on the estate. The down land is good, and has a fair depth of soil with clay subsoil. On the crown of the spurs, on what is termed the Wart Block, the soil is very good indeed. The Seaward Eange is exceptionally good for surface-sown grass, the result being most favourable. The Benmore Block is not of the same quality as the Seaward Eange, but still is good pastoral land. This block is the highest portion of the estate. The land, as you enter the estate by Greta Eoad, is inferior to the larger portion of the property. Comparing the average of land on the Cheviot Hills with that on Greta Peaks, lam of opinion that the former has a higher unimproved value. The Greta Block was bought, as a whole, at £3 per acre, and subsequently 1,000 acres, an average in quality of the block, have been sold for £3 ss. per acre. This, I may state, is almost an unimproved value. The property is handicapped by being situated eighteen miles from a railway-station. On the Cheviot Hills Estate the average distance of the agricultural land to the shipping port (Port Eobinson) is from ten to twelve miles. The grades of the cuttings on the shortest road to the port are too steep to admit of full loads being taken. The distance to the Waipara Eailway-station from the southern end of the property is twenty-three miles. The climate is most favourable for the growth of grass and crops, and is not so dry as at Glenmark, or on the other side of the Lowry Peaks in Amuri. There are about 6,000 acres permanently laid down in English grasses, and about 20,000 acres surface sown. I consider that about 20,000 acres, which is agricultural land, would cut up into 100--or 200-acre farms. The greatest drawback attached to Cheviot Hills is the distance which fat stock have to be travelled to a market. In my opinion the estate is understocked with 86,000 sheep, which was returned in the live stock returns for May, 1892, and I think, with fair stocking, it would carry 100,000 sheep. In the year 1886 a return was made of 105,000 sheep. At the present time there are about 40,000 breeding ewes on the place, which would give a return of 30,000 lambs. The clip on the estate averages from 7|-lb. to 81b. per head on the sheep. Eoughly, the gross returns would be from £28,000 to £30,000 per annum. Cheviot Hills, I consider, is the finest estate in the Middle Island, not alone for pastoral purposes, but also for its agricultural value. I have, &c, J. A. Brown, The Commissioner of Taxes. Late Assessor for Amuri and Cheviot Counties.

No. 4. The Commissioner of Taxes to the Hon. the Colonial Treasurer. Land- and Income-tax Department, Wellington, 31st October, 1892. Attached is a telegram received from Mr. Marchant, Chief Surveyor, giving a short report on the Cheviot Estate. Mr. Marchant will report fully on his return to Christchurch; but it is not, I think, necessary to wait for that to take action in the matter. lam of opinion that Mr. Marchant has kept well within the mark in giving his values. A most thorough examination of the estate has been made by Mr. Marchant, and Mr. Smith, the District Surveyor of that part of Nelson, and I expect that the full report when received will prove to be most complete, and will give suggestions for subdividing the property and roading to the best advantage. It appears that there has never been any detailed survey of this land by the Government, but the owners have lately had a survey made, the plans of which are, however, not yet complete. This want of survey has proved a drawback, but Messrs. Marchant and Smith would be able to make an approximation to exact areas that would be correct for all present purposes. Mr. Marchant and I met Mr. Smith at Cheviot on Monday, the 17th instant, and I left on Wednesday, the 19th. Mr. Marchant was at Waiau on Saturday, returning to Christchurch. I saw enough of the property to confirm the information received that our assessment was not in any way excessive, and to enable me to say that there is no serious drawback to the settlement of this piece of country in areas running from small farms up to runs. The road to within a short distance of the Hurunui Bridge is a good one, and a proof of this is that a contract has been arranged for carrying grain from the Greta Estate, three miles south of the Hurunui, by a traction-engine. A good road can be made from the Hurunui Bridge to the Cheviot Home-station at a fair cost, the country being generally level and a part undulating, and shingle can be obtained at no great distance from the road-line. No heavy work will be necessary in any place, and roading the estate generally will not be a difficult matter. I mention this because it has been said that roading would be very costly, and would require a very heavy additional outlay. Mr. Marchant's report will, lam sure, be in the direction that roading will not be difficult. Expenditure will be required to improve the road to the shipping-place —but a good road can be made to it—Port Eobinson, which is distant about seven miles from the home-station. Draining-works will be required to provide a sufficient outlet for floodwater from the large and rich flat in front of the home-station, but this will not be too costly. The buildings are good but not in excess of the requirements. The house is no doubt larger than will be needed in the future, and an allowance of £1,000 might be made on this account. Woolsheds, store, manager's house, and stables would all come in well if the property were cut up. The home-station would not make a bad township-site, though it may be that Mr. Marchant will find a better. The property is assessed as follows : — Area, 84,222 acres; improved value, £304,826; improvements, £54,300; unimproved value, £250,526. It is returned by the owners as follows : Area, 84,000 acres; value, 260,220 ; improvements, £60,150; unimproved value, £200,070.

3

C—9

Our improved value is £44,606 higher than the owners, and they call on me to take it over at their value. In considering this matter it must be remembered that the estate is now assessed to pay the following taxation : Land-tax £1,257, and graduated tax £1,826, making a total of £3,083. This is equal to 5 per cent, on a capital value of £61,660. The graduated tax alone is equal to 5 per cent, on a capital value of £36,520 ; and it may be said that the graduated tax dimishes the value of the estate as a whole by £36,520 as long as it is held as one property. The owners of the estate, if cut up, would escape nearly the whole of this taxation, and it must be borne in mind that the State would lose so much taxation. This, however, is what was contemplated when the graduated tax was imposed, and the increased returns to the State consequent upon greater settlement were held to be adequate compensation for loss of land-tax. Although the land is in the Nelson Provincial District, it really belongs to Canterbury, and settling a population there would be of the greatest advantage to a part of the colony where it is exceedingly difficult to find any land available for settlement. The sale of the Greta Estate, and dividing Greta Peaks Block into small runs, will cause a considerable improvement in the north of Canterbury, this land going down to the banks of the Hurunui. Erom the Chief Surveyor's figures it appears that, in an area of 84,613 acres, there are only 11,450 worth less than £2 an acre, and this area is valued at £1 10s an acre. As an area of 21,420 acres has been taken as the best land at £6 an acre, it is certain that some of the richest blocks will reach a greater value than £6, and some will go considerably higher. The distance from Christchurch is forty-one miles by rail to the Waipara Station, and then about twenty-three miles by road to the Hurunui Bridge, the Hurunui being the southern boundary, while the Waiau is the northern boundary, and the sea the eastern. The distance by sea from the shipping-place to Lyttelton is sixty.five miles. Being convinced that the land is not overvalued, and believing that it would be largely to the advantage of the colony to acquire the property at the owners' value, I recommend that the matter be referred to the Solicitor-General to advise on the legal position, and also to the Secretary of the Treasury as to the matter of providing funds for payment. There may be some difficulty as to funds, but none that cannot be overcome. Eepresentatives of the owners assert that they would make a good sale at their value, but the evidence goes to prove that our value is fair; and there may be reasons, owing to the manner in which the property is held, that make the proprietors willing to part with the estate by conveying to the Crown under the provisions of the Land and Income Assessment Act. Surveyor-General, Wellington. C. M. Crombie, Commissioner.

(Telegram) 29th October, 1892. According instructions P. S. Smith and self have inspected Cheviot Estate. About 70,000 acres are of limestone and papa (marl) formation; the soil and pasturage of superior quality. The remaining 14,000 acres of sandstone, but good sheep-country. Through centre of estate from the Waiau to the Hurunui extends a splendid tract of agricultural land, amounting to 20,420 acres, worth £6 an acre. On either side about 9,900 acres, worth about £4 an acre. In western part of estate the Wart and Tormore Blocks comprise 21,219 acres of rolling hills, with flat tops and easy faces, splendidly grassed, worth £2 10s. an acre. On the south-west Benmore Block, of good hills and excellent down country, comprising 12,450 acres; worth £2 ss. an acre. The north-eastern or Seaward Eange comprises fair hilly sheep-country, 11,450 acres, worth £1 10s. an acre; and the south-eastern or Port Hills comprise 8,174 acres of good hills, flats, and downs, worth £2 10s. an acre. The total value of the land is £280,767, to which must be added value of constructive and other improvements, including slips, roads, bridges, fencing, and plantations, which can be utilised, and may be valued at £20,000. The slip and port appear sufficient for requirements of district. The estate is admirably suited for cutting up into town, suburban, village-homestead, agricultural, and pastoral holdings. A State farm.would utilise the large and expensive buildings, unless owners would retain them. We should expend £20,000 to £30,000 on roads, draining, &c, but this would but enhance value of land, find employment for labour. Looking at whole circumstances, I recommend, in interests of Government, public, and Land-tax Department, that the estate be taken over. Arrangements should be made to give time for survey, roading, and removal of stock; and everything should be handed over in good order and repair. On my way to Christchurch, and will report fully. In absence of survey of Cheviot my figures are only approximate. J. Marchant, Chief Surveyor, Waiau.

No. 5. J. W. A. Marchant, Chief Surveyor, Canterbury, to S. Percy Smith, Surveyor-General, Wellington. Sir,— Survey Office, Christchurch, 31st October, 1892. I have the honour to report that, in compliance with your instructions of the 11th instant, I have inspected the Cheviot Estate, and now submit the attached report for the information and consideration of C. M. Crombie, Esq., Commissioner of Taxes. I have, &c, J. W. A. Marchant, Chief Surveyor. S. Percy Smith, Esq., E.E.G.S., Surveyor-General, &c, Wellington.

Eeport on the Cheviot Estate. On the 17th instant Mr. C. M. Crombie and I proceeded to Cheviot and saw Mr. C. R. Campbell the resident proprietor, who courteously furnished information regarding the valuations placed on

C—9

4

the improvements and lands comprised in the estate. Subsequently Mr. Campbell afforded me every facility for the examination of the property. The following day, Mr. P. Stephenson Smith, District Surveyor of Amuri, having joined me, we devoted our attention from that date to the 29th to an examination of the run, the objects in view being: first, to estimate the value of the run as a whole ; secondly, to ascertain whether it was suitable for subdivision and settlement in the event of the Land-tax Department taking it over. This report is framed with due regard to these two essentials. Boundaries and Situation. —The Cheviot Estate has an estimated area of 83,604 acres, apparently taken from old maps; but these figures are open to question in consequence of palpable discrepancies between the present courses of the Waiau and Hurunui and those shown on the plans. Situation. —The run is situated on the south-east corner of the Nelson Land District, and is bounded on the north by the Waiau Eiver; on the east by the sea; on the south by the Hurunui River ; and on the west by the Kaiwara Stream, and a right line to the Waiau. Beyond the western boundary are the Mount Palm, St. Leonard's, and Kaiwara Estates; through which extends from north to south the Lowry Peaks Eange. Access. —The run is about twelve miles square, very compact, and comparatively isolated, being only accessible from the north and west by fords on the formidable Waiau, or on horseback, over the pass of the Lowry Peaks Range. On the south, however, the access is by a fairly-good road from Waipara Railway-station to a bridge over the Hurunui, a distance of about twenty-three miles; thence to the homestead on the Jed Stream is about eleven miles, or thirty-four miles in all. Sea carriage has hitherto been the chief means of communication. Port Robinson. —The estate posseses in Port Robinson a small natural port, well sheltered except from north-east and easterly winds and seas. This arises from Ithe fact that a headland and two reefs project into the sea, so as to partly enclose and form the port. Here have been erected a slip, a large and well-built storing.shed, and a cottage. The port is well equipped with three boats, including a large iron cargo-boat (capable of carrying 60 bales of wool, or 10 tons), worked by a cable and an 18-horse-power engine. The whole export and import trade of the estate is thus amply and efficiently provided for. It is alleged that as many as 1,000 bales of wool have been shipped in one day. The " Wakatu "and similar steamers are said to be best adapted for the trade. No difficulty is usually experienced in obtaining the attendance of steamers, as Cheviot has telegraphic communication. There is reason to believe that the competition between oceangoing vessels has on occasions lowered the freight on large shipments of wool from Cheviot to Europe to the same rate as from Lyttelton. Barring the usual drawbacks and uncertainties attending the transmission of goods and produce by cargo boats, Port Robinson provides effectually and economically for the requirements of Cheviot district. Boads and Tracks. —The roads and tracts on the estate comprise— (1.) That from the Hurunui Bridge to the homestead, eleven miles, and thence onward to the Waiau River a further distance of seven miles; (2.) The road from the homestead via the Jed Valley, about seven miles, or, vid the Hurunui Elats, eleven miles. These roads have only been formed in places, but slightly metalled here and there, and consequently are only suitable for summer use. The cost of metalling roads to some of the flats and downs will be enhanced from the fact that shingle is not generally available; nevertheless the difficulties on this score are not exceptional. Owing to the level character of the lands and easy slopes of the hills, unusual facilities are presented for carriage by bullock- and horse-drays over the greater part of the estate—an advantage which tends to saving of time and expense in the erection of fences, and in carrying out other general farmwork. The distance of the several divisions of the run from the port and railway lines is an important element in considering the capabilities and value of the blocks. The following table affords some information on the subject:— Waipara Railway-station to the Hurunui Bridge ... ... about 23 miles. „ „ „ Hurunui Flats ... ... „ 7 „ „ „ „ Homestead flats ... ... „ 34 „ „ „ „ Waiau flats ... ... „ 39 „ Port Robinson to the Homestead ... ... ... „ 7 „ „ „ Homestead flats ... ... ... „ 9 „ „ „ Waiau flats ... ... ... „ 12 „ „ „ Hurunui flats ... ... ... „ 7 „ „ „ Hurunui Bridge ... ... ... „ 14 „ The telegraph-line runs along the track from near to the Hurunui Bridge to the post-office and Cheviot homestead. A Postmaster and lineman reside at the station. Proposed Bailway. —Mr. T. M. Eoy, of the Public Works Department, explored the country for a railway-route from North Canterbury to Blenheim, and reported on the 2nd June, 1876 (vide Appendix to Journals), that the line would start from Waipara, pass through the Omihi flats, over a saddle, into the Waikari, and down that valley to the Hurunui, crossing the last-named river and following it down about nine miles; then turning northerly over a very low saddle the line would pass centrally through Cheviot Estate, crossing the Waiau one mile west of the mouth of the Leader. But for the bridging of the Hurunui the proposed line should not be costly. As the subdivision of the intervening country proceeds year by year, it is reasonable to anticipate that a light branch-railway will be projected towards Cheviot. It would only require to be taken as far as the Homestead flats, and would tap and serve the whole of the estate most admirably.

5

C—9

Tramway to the Port. —ln the event of Port Eobinson sufficing for any possible development of the trade of the district, a tramway might be constructed from the Port to the centre of the estate. Character of Country — Seaivard Range. —The north-eastern portion of the estate consists of a chain of hills known as the Seaward Range, comprising about 11,450 acres, which extend from the Waiau to the Jed Stream. This chain of hills varies in height from 500 ft. to 1,400 ft. above sealevel : the tops are fairly broad and even; the western slopes are steep ; towards the eastward the spurs descend and terminate in abrupt faces on the sea-shore, being separated by deep and, in some cases, rough gullies. The formation is sandstone and slate, with a strip of argillaceous limestone. As a rule there is a fair depth of soil on the ridges, but the slopes are more or less rocky or stony. The vegetation consists of tussock and other native grasses, with an occasional admixture of English grasses, with scrub and fern in the gullies, and some bush in the watercourses, but constituting fair and healthy sheep-country. The block is evidently well watered. Port Hills. —ln the south-eastern part of the estate are the Port Hills, which front the Jed, the sea, and the Hurunui. The block comprises about 8,174 acres of low hills and downs, ranging from 500 ft. to 800 ft. above sea-level. The formation is principally limestone and blue clay, with sandstone in places. The tops of the ridges and spurs are mostly flat or rounded, but are stony on the central area, which is intersected by deep valleys and gullies at the head of the stream which debouches near the mouth of the Jed. Along the sea, Hurunui, and Jed are numerous flats and table-lands, generally of excellent quality, carrying a splendid growth of English and native grasses; affording good sites for homesteads, and every facility for subdivision and settlement. The central hills comprise fair and good soil, carrying native and English grasses, with fern and scrub in the gullies. The block as a whole is fairly well watered, is well suited in some parts for grazing cattle, and a considerable portion of it could be ploughed : indeed, much has already been done in this respect, and in the laying-down of excellent English grass paddocks. Benmore Block. —The south-western part of the run comprises the Benmore Hills and spurs. The area is about 12,450 acres, the general elevation above the sea-level varies from 400 ft. to about 1,600 ft. The hills fall rapidly from the vicinity of Benmore, and merge as a rule into easy slopes or flat and round-topped hills towards the east and north; but fall more rapidly by rocky and stony faces into small flats of good quality on the Hurunui and Kaiwara Streams. With the exception of a few narrow spurs and steep and rocky gullies of sandstone and slate formations, not exceeding probably 3,000 acres in area, the block is of limestone or papa formation, the soil deep and of good quality, and the pasturage of native and English grasses is generally superior. The Hurunui flats and downs are also generally of good quality and well grassed. Some of the rougher gullies are scrubby in the bottoms and on the sides, and fern grows on the southern faces of the hills. A large percentage of the whole area is capable of being ploughed. The block is apparently fairly well watered. The block could be subdivided into large and small farms fronting on the Kaiwara and Hurunui, and on a proposed road along the northern boundary, so as to provide ample homestead sites. Wart and Tormore Blocks. —The whole of the country to the northward of Benmore along the western boundary is comprised in the Wart and Tormore Blocks. The area is about 21,200 acres, and consists of low hills and downs, separated generally by easy-faced gullies or valleys. The Gower and two other large streams, however, divide the table-lands, with the advantage that permanent water will in all probability be retained therein. The formation, with the exception of a small area of sandstone and slate, is of limestone and blue clay (papa). The soil is deep and rich, a large extent being ploughable, and the growth of native and English grasses excellent. The whole area is well adapted for subdivision and occupation by farmers and graziers. Central Plains. —Between the foregoing hill-blocks are situated the Waiau, Homestead, and Hurunui Plats and contiguous downs, comprising in all about 30,000 acres of arable and semiagricultural lands, standing about 200 ft. above sea-level, and already splendidly grassed. The formation consists partly of blue and sandy clay and yellow sandstone, but principally of shelly limestone. This magnificent tract of country is made up in part of alluvial areas, which were formerly swamps impregnated with washings from the limestone and papa formations. In others the soil appears to be of superior character, resting on a good clay subsoil, whilst over a limited area it is of a more clayey nature, but apparently only requiring to be judiciously worked to prove good cropping-land. There are also small areas of stony flats and slopes, which, nevertheless, will work in advantageously with the wetter and low-lying lands. An estimated area of about 6,000 acres in the Homestead Block has been laid down in English grasses, furnishing proof, notwithstanding the lack of evidently much-needed drainage, of the splendid qualities and capabilities of that portion of the estate. Some of the downs and easy slopes towards the Hurunui have produced turnip-crops with alleged satisfactory results. Cropping. —Twelve hundred acres of the Hurunui Plats, low-lying wet land, were under wheatcrops last season, yielding 21 if not 25 bushels to the acre. The terms made with the contractor indicate the high estimation in which the land is held by both him and the proprietor. This particular land is unfit for cropping until it has been at least partly drained, and would then most probably give good returns. The contractor has the same land and a paddock in the Homestead Plats under crop again this season. There appears to be no difficulty, save the present bad state of the road, in transporting the wheat to market by way of Port Robinson.

C—9

6

Judging by appearances, and from experience, I am of opinion that these 30,000 acres are not inferior, class for class, to the low-lying lands and downs in the vicinity of Waimate and Timaru ; that the lands would grow good grain- and root-crops, and even better pasturage than at present both for sheep and cattle, and be found favourable for dairy-farming, and for the cultivation of fruit and garden-produce. Water. —The whole area is at present well watered, but in the event of subdivision into small areas it would be necessary in many parts to obtain water by artificial means. As to the estate as a whole, subdivision for settlement purposes raises the question of the tapping of existing streams and lagoons for stock and household purposes. At present there appears to be an abundance of water, but in dry seasons it is but reasonable to assume that parts of the several blocks would be destitute of running streams. In this respect the property is not in a worse position than most of the large estates in Canterbury. By a judicious apportionment of the water frontages, and by resort to well-sinking, and waterraces connecting with the Waiau, Hurunui, and other permanent streams, all necessary wants should be met. Climate. —From inquiries I apprehend that the climate is mild, the rainfall more copious than in the country in North Canterbury; that falls of snow are light, even on the highest hills. No doubt contiguity to the sea proves beneficial to both stock and pasturage. Timber and Coal. —-The most serious drawback to the establishment of settlement, except the isolation of the estate, is the absence of local building-timber, firewood, or coal. The patches of bush and scrub on the estate are, as a rule, very inaccessible ; the bulk of it is in the north-eastern corner, or across the Waiau, on Section 7, Block V., Cheviot Survey District. Drift-wood can be procured on the beach at Gore Bay, and in the Hurunui and Waiau river-beds. No doubt the wants of settlers would soon be satisfied by private enterprise. Carrying capacity. —By the official returns Cheviot Hills carried 86,000 sheep last April, besides cattle. The Assessor assures me that there were 40,000 breeding ewes. The appearance of the pasturage and stock indicate that the run has not been overstocked. The percentage of lambs is stated to be from 70 to 80. The export of wool last season was given by the manager as 2,209 bales. This is now said to have included the wool from Happy Valley Run. The number of sheep sold off the run annually is given as 20,000, and in all probability the number might be largely increased. Babbits. —The estate is protected on the west and north by durable and well-constructed wirenetted fences, and on other sides by the sea and Hurunui River. There appear to be no rabbits on the run, and every precaution is being taken to prevent their incursion. Improvements. —Being unable to procure particulars of the accepted items and values of improvements, I have culled the following from the manager's evidence before the Assessment Court: — £ £ Buildings ... ... ... ... ... ... 14,952 Seven Bridges ... ... ... ... ... 340 Roads, 30 miles ... ... ... ... ... 2,000 Slip ... ... ... ... ... ... 3,800 Sheep- and cattle-yards ... ... ... ... 908 Fencing, 140 miles ... ... ... ... ... 8,105 Orchard, 10 acres, at £10 ... ... ... ... 100 Plantations, 163 acres, at £50 ... ... ... 8,150 38,355 6,000 acres laid down in English grasses at £1 ss. . . 7,500 20,000 acres surface-sowing, at 10s. ... ... ... 10,000 Wheat crop, 12,000 acres, at £1 ... ... ... 1,200 Reclaiming swamps, 1,000 acres, at £3 ... ... 3,000 21,700 Total... ... ... 60,055 Excising the wheat crop, which should not be allowed for, the sum of £20,500 claimed for the grassing and reclamation can be thrown in with the land values, thus leaving only £38,355 to be dealt with. Though these improvements may possess for the estate the value asserted, we have to consider whether they could be utilised in the event of the estate being taken over. The valuations on the orchard and roads and bridges may be admitted for present purposes. The value put on the plantations appears to me excessive ; to utilise them would involve their total or partial destruction. By the sworn evidence the slip is valued at £3,800. The buildings, which include £8,000 for the mansion; £1,368 for the woolshed; £1,400 for a store and stable; £1,000 for the manager's house, and £908 for cattle- and sheep-yards, would be difficult to utilise. Most of them are old, and grouped together near the homestead. The fences might be generally utilised at reduced values. As I found that the landed estate appeared sufficiently valuable to cover the proprietor's whole valuation, and being pressed for time, I did not make a minute examination of the buildings. On consideration of the whole of the circumstances, and difficulties attending the disposal and utilisation of the improvements, valued above at £38,355, it appears to me that it would not be safe to set them down as worth more than £20,000, and then the principal buildings would have to be treated in a special manner as hereafter suggested. Conclusions. —It will be gathered from the foregoing remarks that I have formed the opinion that the Cheviot Hills Estate is an exceptionally fine property.

7

C—9

I have endeavoured to indicate that it possesses many advantages, amongst which may be mentioned:— 1. A geological formation favourable to the best configuration of country and quality of soil. 2. Compactness of form ; low elevation; a favourable and genial climate. 3. Natural facilities for internal communication; and a port sufficient for trade requirements. 4. A large proportion of arable and semi-agricultural land of superior quality, well grassed, and well adapted for cropping and grazing. 5. Good blocks of hilly lands of superior quality, well grassed, and well adapted for pastoral purposes; about 14,000 acres are excepted from this description. 6. Capability of the estate for carrying a large amount of stock, for expansion of the present output in wool, and for the production of crops. 7. The suitableness of the property for subdivision and disposal under varied systems of settlement, and consequently its enhanced value over and above a value based upon the returns obtainable from the present method of utilising and working the estate as one. There is no good topographical map of the estate, and consequently only rough approximate areas can be given of the different blocks and classes of land. Estimate of Value. —The following is a rough estimate of the areas and values of the several blocks. £ s . a. Wart and Tormore Blocks ... 21,210 acres at £2 10s. per acre : 53,025 0 0 Benmore... ... ... 12,450 „ £2 ss. „ 28,012 10 0 Seaward Eange ... ... 11,450 „ £1 10s. „ 17,175 0 0 Port Hills 8,174 „ £2 10s. „ 20,435 0 0 53,284 118,647 10 0 Arable land ... ... 20,420 „ £6 „ 122,520 0 0 Semi-agricultural ... ... 9,900 „ £4 „ 39,600 0 0 83,604 £280,767 10 0 It follows therefore that the landed estate, the buildings, and other constructions may be set down as worth £300,000 to the Government for purposes of settlement. Consideration of Whole Question. —Taking the estate at the proprietor's valuation of £260,220 for, say, 84,000 acres, the question is, would it be safe for the .Land-tax Department to take it over with a view to realising the above sum and contingent expenses ? It is very questionable whether the department could expect to quit the estate as a whole, or even if subdivided into several large blocks, without considerable risk and after much delay. It is needless to enlarge upon the self-evident difficulties, dangers, and drawbacks which would beset the department in carrying out so novel and large an undertaking. Under such circumstances I could not advise that the estate be taken over. But if the matter be considered on the broad ground of public policy, and the welfare of the colony, I think it can be demonstrated that the property should be acquired. It is assumed, — 1. That the policy and future successful administration of the Land-tax Department require that the property be taken over. 2. That the Government would cordially co-operate and seize the opportunity of carrying out a comprehensive system of settlement on a large scale, and consider that it would be justifiable to accept the responsibility and risk ; and, if necessary, recoup the Land-tax Department any possible loss. It appears to me that, to initiate the sound policy of subdivision and close settlement on large estates would do more to advance the material welfare of the community than any other conceivable step. If this can be accomplished with the concurrence, as in this case, of the present proprietors on terms advantageous to them and the future settlers, so much the better. The principle is already generally accepted in older communities that growth of population, the necessities of the people, and the welfare of the nation demand that vast estates should no longer remain parks or runs, but should be converted into holdings suitable to the position and character of the lands and the requirements of the people. The manifest gain in establishing numerous families on the lands of the colony ; the additional scope afforded for employment of labour on public and private works; the great increase that would take place in revenue, in trade and production, render this question one worthy the best consideration of the Government. It is of such magnitude, capable of such expansion and application, and fraught with such far-reaching effect upon the future of the colony, that it seems to me the Government may well take the responsibility and risk connected with the undertaking, and open the country for settlement under "The Land Act, 1892." Before doing so the Government might obtain the opinion of a practical agriculturist, such as Mr. David McMillan, on the question. Suggestions. —ln this view of the case I have to repeat my recommendations of the 29th ultimo, that the proprietors' offer be accepted, and the whole estate taken over at £260,220, which is equivalent to about £3 2s. an acre. Assuming that the Land-tax Department decide to adopt this course, the following suggestions are submitted for consideration: — The estate and appurtenances should be handed over in thorough order and repair. A sufficient lapse of time should be allowed for completing surveys and sale-plans to enable the estate to be offered under " The Land Act, 1892." A large sum, possibly £30,000, would require to be spent on surveys, improving existing tracks, the slip, and in constructing new main roads to open up the country. The proprietors might be induced to retain Cheviot House and some of the surrounding buildings, otherwise these structures might be utilised for the establishment of one of the industrial farms in connection with the Labour Bureau operations.

0.-9.

8

The large woolshed and dip might, as has been suggested by Mr. F. S. Smith, be reserved for the common use of the settlers. The roads and bridges, some of the plantations, the slip and its accessories, and the rabbit-fencing on the western boundary, should be treated as a liability common to the settlers as a body. It is proposed that the estate should be subdivided so as to insure the establishment of settlement in all its phases, and as best adapted to the situation, character of the country, and policy of the Government. Townships would probably be required near the port, and in a central position, such as the homestead site. The arable and semi-agricultural lands, comprising 30,320 acres, after provision has been made for the projected railway, roads, and reserves for all necessary public purposes, would be cut up into town, suburban, village, and small-farm settlements, and agricultural farms. The hill lands, east and west, would be laid off in comparatively large areas so as to establish a number of holders with the necessary capital to enable them to profitably work lands of that class, and to afford employment to the small holders. Attention should be given to securing the settlement of bodies of men who would give their attention to dairy-farming, fruit-culture, and other special lines of production which may be considered by experts to hold out reasonable inducements and prospects of success. The settlement of the whole area in the ordinary manner might be effected somewhat as follows:— Seaward Eange ... 11,450 acres, might be subdivided into 10 holdings of 500 to 2,000 acres. Port Hills ... 8,174 „ „ 20 „ 365 acres. Town ... ... ... ... 100 „ Village lots ... 10 holdings of 50 „ Watt and Tormore 21,210 acres, might be divided into 20 „ 500 to 2,000 acres. Benmore ... 12,450 „ „ 20 „ 400 „ 2,000 „ Town ... ... ... ... 250 acres. Central Plain ... 30,320 acres: Small Farms ... 50 holdings of 100 „ Village settlements 25 „ 100 „ Agricultural farms 110 „ 200 „ Total number of holdings ... ... 265 Exclusive of residents on the proposed townships at the Port and the Homestead Flats, about 265 settlers, say, 1,000 souls, might be located under the above scheme. If the industrial farm is inaugurated the number would be much larger. , Much thought and attention would have to be given to the method of settlement most likely to be conducive to prosperity and success. A large number of small holders might be crowded upon the lands with the contingency that they would not succeed. If, on the other hand, men of means, labourers, and experts in particular lines of farming and culture, are located on areas and classes of land favourable to their special requirements, there should be no fear as to the result. It is manifest that prosperous settlement cannot be secured unless reasonable facilities are afforded for transport of material and produce. The principal or main and district roads alone would cost about £26,000, and the surveys about £4,000. A large margin must be provided for contingent expenses and interest on the capital value, items which cannot he examined until the necessary conditions have been determined. Attached is a plan to illustrate this report. I have to record my obligations to Mr. F. Stephenson Smith, who accompanied me throughout, and with whom I discussed the varied aspects of the case. J. W. A. Marchant, Commissioner of Crown Lands and Chief Surveyor, Christchurch.

No. 6. The Commissioner of Taxes to the Surveyor-General. Wellington, 18th November, 1892. Will you have the goodness to ask Mr. Smith, District Surveyor, to forward, by telegram, a short report on the Cheviot Hills Estate, giving his opinion as to its value, and also as to the correctness, or otherwise, of our assessment, which is £304,826 for the whole property, including the value of all improvements. The Surveyor-General. C. M. Crombie, Commissioner.

No. 7. The Commissioner of Taxes to Mr. J. W. A. Marchant. (Telegram.) 18th November, 1892. I learn that the Premier considers your report hostile to the assessment of the Cheviot Hills Estate, and that valuation should be reduced. Please telegraph to me stating whether this is the correct interpretation of your report. You appear to me to have made your report somewhat ambiguous by the sentences on the sixth page, commencing, " It is, however, questionable," and " It is needless to enlarge upon self-evident difficulties," &c. You seem under the belief that the property, if taken over, would be taken over by the Land-tax Department and sold by it. Of course, you are mistaken in this. The Act clearly lays down that the property is to be taken over by the Government, and conveyed to Her Majesty, and sold and disposed of in such a manner as the Governor in Council may direct. I should be glad to have a clear and definite reply, stating, without ambiguity—First, whether you consider the assessment a fair one, and that the property is

9

C—9

worth the assessed value; secondly, whether, considering all circumstances, you would recommend the Government to purchase the. property and dispose of it as might be determined by the Governor in Council, or to reduce the assessment. C. M. Crombie, Commissioner. J. W. A. Marchant, Esq., Chief Surveyor, Christchurch.

No. 8. Mr. F. Stephenson Smith to the Surveyor-General. (Telegram.) Waiau, 18th November, 1892. Quite agree with Mr. Marchant's report, but think his estimate rather low. After making full allowance for the time of year I saw it, and the fact of my coming from a poor back country, I believe it worth fully £285,000 as an upset price on the land alone. Think it would fetch £290,000 if cut up into suitable, not too small, blocks in open market. Never saw so even, easily worked country. No waste. Upon which an immediate return could be made. I understand 10 per cent, allowance was made when the land was sold. This, with the usual good measure given in those days, should give 90,000 acres, notwithstanding loss by rivers. The chief drawback is three miles difficult road to port. Cost probably £2,000 a mile. Level all over estate ; too good for roads. Mansion and big stable only improvements cannot be utilised. Dip, woolshed, and yards, sufficient for whole estates; same as shearing reserves and sheds, Marlborough. Port quite up to requirements. Water might be a difficulty if cut up into small holdings. Rainfall said to be much greater than Amuri. The Surveyor-General, Wellington. F. Stephenson Smith, District Surveyor.

No. 9. The Surveyor-General to Mr. F. Stephenson Smith. (Telegram.) Your valuation at £290,000 is that of land alone; what would you add for improvements ? You can, of course, only give approximation. F. Stephenson Smith, District Surveyor, Waiau. S. Percy Smith.

No. 10. Mr. J. W. A. Marchant to the Land-tax Commissioner. 21st November, 1892. Sir, — Ec Cheviot Hills Estate. I have the honour to inform you that your telegram of the 18th instant only reached me on Saturday night, and I hasten to reply by to-day's mail. You imply,— (1.) That my report is hostile to the assessment; (2.) That I suggest the valuation should be reduced ; (3.) That my report is ambiguous ; (4.) That I am mistaken as to the power under the Act for disposing of the estate in the event of its being taken over. Allow me, in the first place, to state that, as no rules or principles were laid down for my guidance in framing my report, I necessarily had to define the lines on which to proceed. My replies, shortly, are— 1. I am unconscious of any feeling of hostility towards the assessments or anyone connected with it. On the contrary, I entered on the business cordially and in a friendly but independent spirit. 2. I cannot find any suggestion in my report to reduce the valuation as a whole, though I have questioned items, such as £50 per acre for plantations, and as to how far we could utilise the improvements. 3. Ido not think that you are justified in the charge of ambiguity; Ido not see how to make the report clearer, though I shall be happy to afford you the fullest information on any point you require. 4. As neither your department nor the Government have yet notified the manner in which the estate, if taken over, would be dealt with, I had to consider the question from the two points of view set forth in my report. I fail to see any error in the course adopted. In reference to your request for clear and definite replies as to the assessment and as to taking the estate over, I have to inform you — (1.) The assessment of £303,318 is, in my opinion, fair; and the estate is worth that sum. (2.) As to your request that I shall state, " without ambiguity, whether, considering all the circumstances, you would recommend the Government to purchase the property and dispose of it as might be determined by the Governor in Council, or to reduce the assessment," I have to point out that my report (page 6) answers these questions as plainly as the circumstances permit. You must admit that to obtain an opinion worth consideration it is imperative that the necessary conditions governing the acquisition of and the disposal of the estate should be stated. In the meantime I must stand by the opinions on this subject expressed on page 6 of my report. I have, &c, J. W. A. Marchant, Commissioner of Crown Lands. C. M. Crombie, Esq., Land-tax Commissioner, Wellington. 2—C. 9.

a—9

10

No. 11. The Land-tax Commissioner to Mr. J. W. A. Marchant, Chief Surveyor, Canterbury. (Telegram.) Wellington, 23rd November, 1892. Eeceived your letter of 21st. My telegram of 18th reads: "I learn that the Premier considers your report hostile to the assessment of the Cheviot Hills Estate, and that valuation should be reduced." I entirely fail to understand how you can imagine the use of word "hostile " implied existence of any feeling of hostility as you put it. You say you entered on the business cordially, and in a friendly but independent spirit. Permit me to say that any one who knows you would be sure of this. It goes without saying. I made no charge of ambiguity, but I must also say that Ido not know whether you recommend that the property be taken over or not. The latter part of your report appears to me to contradict the paragraphs on page 6 I referred to. C. M. Crombie, Commissioner. J. W. A. Marchant, Esq., Chief Surveyor, Christchurch.

No. 12. The District Surveyor, Waiau, to the Surveyor-General, Wellington. (Telegram.) 23rd November, 1892. As I had no opportunity of going into the question of improvements at Cheviot, my estimate is a very rough one. I think, for purposes of cutting up the estate, buildings are worth five thousand. Do not include mansion, as it is of little value for cutting up; bridge, five hundred; roads, two thousand; slip, four thousand; yards, five thousand; fencing, between seven and eight thousand (probably another thousand worth has been put up since valuation for tax—have not included this); plantations and orchards, six or seven thousand; drainage, grass, sowing, &c, probably fifteen thousand pounds, but half the last item would be taken off the value of the land; in all about forty-one thousand pounds, or, added to land value, less half grass, say three hundred and twentythree thousand pounds. The Surveyor-General, Wellington. F. Stephenson Smith.

No. 13 J. W. A. Marchant, Commissioner of Crown Lands, Christchurch, to Land-tax Commissioner, Wellington. (Telegram.) Christchurch, 24th November, 1892. Am much obliged and relieved by your explanation. I still think my report (page 6) clearly shows that the question of taking over the estate is considered in two ways—first, by your department with the object of selling it as a whole or in a few large estates for cash. As to this, I stated : " Under such conditions I could not advise that the estate be taken over." It seems to me that I could not have given my opinion plainer. Then, from the second point of view, in which it is assumed that the Government would indemnify your department taking all risks and responsibility so as to open the estate for settlement under " The Land Act, 1892." This course I strongly advocated and recommended, and that the estate be taken over accordingly. My letter of the 21st was written in great hurry to catch morning mail, and last paragraph might have been clearer. What I intended to convey was that, having already given as plainly as I could my opinion on assumption that you would require promptly to realise the cash price, I could not give a further opinion on the question until you stated clearly terms and conditions of sale, which you said would be fixed by Order in Council. To sum up; I claim that my report plainly deprecates your taking the estate in expectation of finding a cash purchaser or purchasers ; but, on the other hand, that I advocated the acquisition on certain definite lines set forth on page 6, and I venture to think my views on the subject are correct. It is one thing to demonstrate that the property is worth assessment, and another to dispose of it so that your department should not suffer loss. In any case my recommendations are the outcome of much anxious thought and consideration of the subject with a knowledge of the responsibility, having regard to the magnitude and importance of the question at issue, and especially as it affected your department. J. W. A. Marchant, Commissioner of Crown Lands. J. M. Crombie, Land-tax Commissioner, Wellington.

No. 14. D. McMillan, Valuer, to the Commissioner of Taxes, Wellington. (Telegram.) Culverden, 30th November, 1892. Finished inspecting Cheviot yesterday. Good agricultural land, about 21,000 acres, value twothirds of that at £5, and one-third at £7 ss. per acre. Semi-agricultural, about 9,000 acres, value £4; best pastoral land, at £3 10s.; second ditto, at £3 ; hill country, at £1 17s. 6d. and £1 15s. : total value of estate, £295,998. I have to check my figures over yet, but think they are right. Written report to follow first mail. David McMillan. C. M. Crombie, Esq., Commissioner of Taxes, Wellington.

11

C—9

No. 15. D. McMillan, Valuer, to the Commissioner of Taxes, Wellington. Report and Valuation op Cheviot Hills Estate. 30th November, 1892. To enable me to get a correct idea of the acreage of the various qualities of land, Mr. Marchant kindly furnished me with a map showing the areas of the different blocks of land as the estate is at present worked, also showing approximately the areas of the agricultural and semi-agricul-tural land. The agricultural land is 21,420 acres, and is nearly all of very good quality for farming purposes. It is on limestone formation. The best land lying in the basins require draining, and great care and skill will require to be exercised to work it profitably, for if wrought too wet it will produce more weeds than crop. Taken as a whole it is a grand block of land for producing either grain, roots, or grass. For grain-growing there are serious disadvantages in the absence of made roads and the distance from market. The roads will be costly to make, and will not carry winter traffic unless thoroughly drained, formed, and metalled, and in many places there will be difficulty in getting shingle, and long distances to cart it. The best of land for grain-growing is on the flat near the Waiau River, a long distance from the port of shipment. x The boat harbour is fairly well equipped for shipping purposes, and could be improved as traffic increases. The roads leading to it are badly graded, but that also could be improved. The property is fairly well watered, but if cut up into small farms I think that in the summer and autumn there will not be sufficient water for some of them. The scarcity of timber on the property for building, fencing, firewood, &c, will be much felt; there is a bush section on the north side of the Waiau, with a fair amount of timber on it, but it is difficult to get at. The buildings and improvements are ample for working the property as a whole, except that roads and drainage have been sadly neglected; had that work received more attention, it would have been of benefit to the whole property when cut up; whereas the buildings, plantations, &c, are far in excess of what is required for cutting-up purposes, owing to their being concentrated on one part of the property. Though the land is of excellent quality, these drawbacks that I have pointed out keep the value down, and I think, with the present low price of grain, and the difficulty of getting it to market, it would pay better to grow turnips, rape, cape barley, &c, to be fed off on the ground with sheep, and thereby confine the produce principally to wool and mutton. In addition to that, the produce of a dairy factory could be got to market far cheaper than grain; but some years must elapse before a factory could be profitably started. The improved agricultural land, which comprises the homestead paddocks and the good land under cultivation in that neighbourhood, and also being nearer to the boat harbour, I value at £7 ss. per acre ; the area of that is, I think, approximately, one-third of the 21,420 acres—viz., 7,140 acres at £7 55., £51,765. The rest of the agricultural land lies chiefly on the Waiau flats, is a longer distance from the boat harbour and not fenced into paddocks, and comprises 14,280 acres at £5, £71,400, making an average of about £5 15s. per acre for the agricultural land. Semi-agricultural land surrounds and intersects the agricultural land, and though broken, lumpy, and hilly, about two-thirds of it can be ploughed and cropped. Area, 8,900 acres, at £4 per acre, £35,600. Pastoral land : The best is known as the Wart Block, it lies furthest away from the harbour, and comprises good grassy low hills, the English grass spreading well over it, and about one-fourth of it could be ploughed to renew the grasses. Area, 11,650 acres, at £3 10s. per acre, £40,775. Tormore Block is also good pastoral country, but higher, more broken, and not so well grassed as the Wart Block. Some of the spurs and easy slopes can be ploughed. Area, 9,560 acres, at £3 per acre, £28,680. Port Hills are low, rough, broken hills near the harbour; very little of them can be ploughed. Area, 8,174 acres, at £3 per acre, £24,522. All the above described pastoral country is fit to carry half-bred sheep. Seaward Eange: high broken country, not well grassed, but sweet healthy hills for merino sheep. Area, 11,450 acres, at £1 17s. 6d. per acre, £21,468 15s. Benmore Block is also high broken conntry, fit for merino sheep. There is little or no limestone on this block, and a good deal of cold sour fern-land with rough gullies. Area, 12,450 acres, at £1 15s. per acre, £21,787 10s. In arriving at these values I carefully estimated the carrying capacity of each block, and considered how much the carrying capacity could be improved, and at what cost, and worked it out so that the net returns show 6 per cent, on the total value. Improvements : The buildings, slip at the harbour, and roads leading to it are no more than is required for a property of this size, and are all necessary for earning the estimated return. The slip increases the value of the whole property, whether cut up or not; but in the case of the buildings, plantations, garden, &c, they would only affect the value of the block in which they were situated if cut up. The fences are good and in thorough order, with good gates well hung, and there is a rabbitfence extending all along the north and the west boundaries. The average value per acre on the agricultural land is £5 15s. per acre ; the semi-agricultural land is £4 per acre; the pastoral land is £2 lis. 6d, per acre; and the average of the whole property is about £3 10s. lOd. per acre.

C—9.

Summary of Values. £ s. d. Improved land near homestead... 7,340 acres at £7 ss. ... 51,765 0 0 Waiau Flats ... ... 14,280 „ £5 ... 71,400 0 0 Semi-agricultural land ... 8,900 „ £4 ... 35,600 0 0 Wart 810ck... ... ... 11,650 „ £3 10s. ... 40,775 0 0 Tormore Block ... ... 9,560 „ £3 ... 28,680 0 0 Port Hills ... ... ... 8,174 „ £3 ... 24,522 0 0 Seaward Range ... 11,450 „ £1 17s. 6d. 21,468 15 0 Benmore ... ... ... 12,450 „ £1 15s. ... 21,787 10 0 83,604 £295,998 5 0 The above is my value of the Cheviot Hills Estate. David McMillan. C. M. Crombie, Esq., Commissioner of Taxes, Wellington.

No. 16. The Commissioner of Taxes to the Hon. the Colonial Treasurer. Wellington, 7th December, 1892. I beg to submit papers in the matter of the assessment of the Cheviot Hills property belonging to the estate of the late Hon. William Eobinson. May I refer you to my report (printed) of the 31st October. lam still of opinion that the assessment is a fair one, that it should not be reduced; and I therefore respectfully request that the approval of the Governor in Council be obtained, and the property be purchased at the value specified in the owner's return —£260,220. Eeports are attached from Mr. J. W. A. Marchant, Chief Surveyor, Christchurch; Mr. J. A. Brown, Assessor ; Mr. F. Stephenson Smith, District Surveyor, Waiau; and from Mr. D. McMillan, who recently visited the land and made a special valuation. C. M. Crombie, The Hon. the Colonial Treasurer, Commissioner of Taxes.

No. 17. The Commissioner of Taxes to H. D. Bell, Esq., Wellington. Sir,— Wellington, 22nd December, 1892. Eeferring to the notice of the owners of the Cheviot Hills Estate, calling upon me under the provisions of "The Land and Income Assessment Act, 1891," to reduce the assessed value of the above-mentioned land or estate, I have now to inform you that it has been determined to acquire the said land under the provision of the said Act, and its amendment. The necessary formal notice to this effect will be served upon the owners as soon as possible, unless you will undertake to receive same on their behalf. I therefore shall be glad to see you as soon as may be convenient to arrange as to terms, &c. Yours &c, C. M. Crombie, H. D. Bell, Esq., Wellington. Commissioner.

No. 18. Order in Council authorising Purchase of Cheviot Estate. Glasgow, Governor. ORDER IN COUNCIL. At the Government House, at Wellington, this 29th day of December, 1892. Present: His Excellency the Governor in Council. Whereas under the provisions of " The Land and Income Assessment Act, 1891," the trustees of the estate of the late Hon. William Robinson, of Christchurch, in New Zealand, deceased, as owners of the lands lying within the County of Cheviot, in New Zealand, called or known as " The Cheviot Hills Estate," on or about the 21st day of December, 3891, furnished a return to the Commissioner of Taxes wherein the Value of the said lands for the purposes of the said Act was stated to be £260,220: And whereas in virtue of the powers vested in him under the said Act the said Commissioner assessed the value of the said lands at the sum of £304,826 ; and whereas on or about the 10th day of October last the said trustees gave notice in writing to the said Commissioner to the effect that they were dissatisfied with the amount at which the said lands were assessed, and called upon him to reduce such assessment to the sum at which such lands had been valued in the return so made by the said trustees, or else to purchase such lands at such sum : And whereas the Commissioner has determined not to reduce the assessment so made by him, but to purchase or acquire the said lands subject to the approval hereinafter mentioned : Now, therefore, His Excellency the Governor of the Colony of New Zealand, in exercise and pursuance of all powers and authorities enabling him under " The Land and Income Assessment Act, 1891," and " The Land and Income Assessment Act Amendment Act, 1892," and by and with the advice and consent of the Executive Council of the said colony, doth hereby consent to and approve of the purchase or acquisition from the said trustees by the said Commissioner, on behalf

12

13

a—9

of Her Majesty the Queen, of all the lands lying in the County of Cheviot aforesaid, called or known as " The Cheviot Hills Estate," at or for the price or sum of £260,220, being the value of such lands as specified in the return furnished by the said trustees as aforesaid. Alex. Willis, Clerk to the Executive Council.

No. 19. To Joseph Palmer, of Christchurch, in the Colony of New Zealand, Gentleman; Francis Henry Dillon Bell, of Wellington, in the said colony, Barrister; Elizabeth Eliza Eobinson, of Christchurch, in the said colony, Spinster; Emily Campbell, wife of Patrick Campbell, of Canterbury, in the said colony, Gentleman; Charles Ralph Campbell, of Cheviot Hills, in the said colony, Gentleman ; Eleanor Lance, of Riccarton, in the said colony; being Trustees of the Estate of the late Honourable William Robinson, of Christchurch aforesaid, deceased. In the matter of " The Land and Income Assessment Act, 1891," and its amendment, and in the matter of the Cheviot Hills Estate. Whereas under the provisions of " The Land and Income Assessment Act, 1891," you, the abovenamed Trustees, as owners of the lands lying within the County of Cheviot, in New Zealand, called or known as " The Cheviot Hills Estate," gave notice in writing to me, the undersigned, as Commissioner of Taxes, on or about the 10th day of October last, to the effect that you were dissatisfied with the amount at which the said lands were assessed by me, and you thereby called upon me as such Commissioner as aforesaid to reduce such assessment to the sum at which the said lands had been valued by you in the return furnished by you under the said Act, or else to purchase such lands at the said sum : And whereas it has been determined not to make the reduction aforesaid, but to purchase the said lands at the value thereof as stated in the return so furnished by you as aforesaid, and His Excellency the Governor in Council has approved of such purchase : Now, therefore, I, the said Commissioner, do hereby give you and each of you notice that I am prepared to purchase or acquire for Her Majesty the Queen all the said lands lying in the County of Cheviot aforesaid, and called or known as " The Chievot Hills Estate," and of which you are the owners within the meaning of the said Acts, and which were mentioned or included in the return so furnished by y6u or some of you as aforesaid : And you are hereby required, in accordance with the provisions of the said Acts, to convey or otherwise assure the said lands to Her Majesty the Queen at or for the sum of £260,220, being the value of the said lands as specified in the return so furnished by you as aforesaid, and which sum I shall be prepared to pay you in accordance with the provisions of the said Acts : And I request you within a reasonable time after the service hereof to furnish me with such information and particulars as to the title to the said lands as will enable the conveyance or other assurance to Her Majesty to be prepared. Dated at Wellington aforesaid, this thirtieth day of December, 1892. C. M. Crombie, Commissioner of Taxes.

No. 20. H. D. Bell, Esq., to the Commissioner of Taxes. Sir,— Panama Street, Wellington, N.Z., 10th February, 1893. Referring to the interview I had the honour to hold by appointment with the Hon. the Minister of Lands, the Solicitor-General, and yourself yesterday, I beg to state that I understand that the following matters were arranged : — 1. The date for delivery by the Cheviot trustees to the Government of the Cheviot Estate shall be some day after the 31st March and before the 30th April, such date to be notified to you a week before your sale. lam now able to name the 18th April definitely. 2. On the day of delivery the money to be paid over by the Government, unless in the meantime the trustees agree to some other method of payment with the Government. 3. The trustees agree to insert in their conditions of sale a provision that all purchasers at the sale may keep their stock free of charge on the estate until the delivery by the trustees to the Government. 4. The Government propose to put up the whole grazing right of Cheviot for either eleven months or one year, but except from such grazing right the house, plantations, garden, and house, stable, and will permit Mrs. Campbell to continue to occupy the house for a reasonable time after the property passes to the Government. 5. The Government agree to purchase the engines and boat at the port at a valuation, one valuer to be appointed by the Government and one by the trustees. 6. The Government agree to pay the contract price of the repairs to the road effected since the offer to the Government of the property, provided the Government is satisfied that the work was honestly undertaken as a permanent improvement. 7. The grazing rights will be submitted before the first March, I having specially requested that a week should elapse between the sale of the grazing rights and the date of the sale of the stock, which request the Government consider reasonable. 8. Surveyors are to be allowed to go all over the estate as the Government think necessary, provided that no dogs are taken. The surveyors to be instructed to take precautions about lighting fires. 9. With reference to Mr. Darrock, I assured the Minister that there was no binding arrangement between ourselves and Mr. Darrock that he should have any cropping right on the estate if we sold the property, but only an understanding between himself and us that if we kept the property we should give him the first opportunity of cropping if further cropping were to be done.

a—9

14

10. I venture to call the attention of the Minister to the state of the Hurunui Bridge, and to inform him that this requires very urgent attention; and I stated that there is a report in the Public Works Department—l believe from an engineer who was sent to ascertain its condition some months ago. This bridge is insured in the name of the Queen at present. A serious fire occurred at the south end of it some time ago, and this was patched up at the time by the trustees. 11. The Minister promised to give directions that policemen should be in attendance at the sale to protect the plantations and buildings from the risk of fire. The trustees will take every precaution on their part; but the difficulty is that when property is once known to belong to the Government it is impossible to induce strangers to take proper care. 12. I have undertaken to meet the trustees, and ascertain definitely whether they would be prepared to accept debentures at, say, six months' currency. I informed the Minister that I would not accept debentures at 4 per cent, but that I would be satisfied personally to accept debentures at 4|- per cent., but that some of my co-trustees objected to anything but cash. 13. With regard to the Cheviot title, 1 requested that I might be placed in direct communication with the Solicitor-General, in order that I might lay before him the proposals I have to make, to satisfy him, and in order that, if he be not satisfied, I may at once take the opinion of the Court as to whether what I propose is not satisfactory. Mr. Palmer, one of my co-trustees, is also agent under a delegated power for my co-trustee, Mrs. Lance, who is in England, and Mr. Palmer informs me that he will decline to sign the conveyance on behalf of Mrs. Lance. The four trustees other than Mr. Palmer will sign an undertaking to obtain Mrs. Lance's signature, and will also obtain a cablegram from Mrs. Lance authorising them to do so. They have sent Home a power of attorney, and they will further obtain a cablegram from Mrs. Lance to the effect that she has executed the power; otherwise lam satisfied that no exception could be taken to the title; but lam anxious that no question should arise after the date on which we give delivery, as on the day on which it is arranged that delivery should be taken interest must commence on the amount due by the Government to us. I shall, therefore, be obliged if I receive instructions to communicate with the Solicitor-General on the question of the title. This is not with regard to the details of the title, which will, no doubt, be examined by the Crown solicitors, but with regard to the actual execution of the conveyance. 14. With regard to the small piece of land on the other side of the Waiau, the trustees will probably consent to sell this to the Government at a valuation if the Government desire to purchase it. I have, &c, The Commissioner of Taxes, Wellington. H. D. Bell.

No. 21. Cheviot Estate. Notice is hereby given that the right of pasturage over the Cheviot Estate, comprising about 85,000 acres, for a period of eleven (11) months, from Ist May, 1893, will be offered at auction at the Lands and Survey Office, Christchurch, on Tuesday, 28th February, at eleven o'clock a.m., at the upset rental of £867 per month. The Government reserves the right of resuming, after the Ist October, 1893, 30,000 acres of the estate for settlement, a proportionate reduction in the rent to be allowed the lessee for the area thus resumed. A copy of the conditions of lease may be seen at this office after the 15th instant. J. W. A. Marchant, Commissioner of Crown Lands. Lands and Survey Office, Christchurch, 13th February, 1893.

No. 22. The Commissioner of Taxes to H. D. Bell, Esq. Sir, — Land and Income Tax Department, Wellington, 15th February, 1893. By way of reply to your letter of the 10th, I have of state that I have laid it before the Hon. the Minister of Lands, who agrees with me that it correctly summarises what took place at the interview. It was understood that you should place yourself in direct communication with the SolicitorGeneral. Yours, &c, H. D. Bell, Esq., Wellington. C. M. Crombie, Commissioner.

No. 23. The Under-Secretary for Crown Lands to the Commissioner of Crown Lands, Christchurch. 23rd February, 1893. Cheviot Estate. The conditions prepared by the Crown Solicitor have been very slightly added to and are herewith returned, also one copy in type. The Minister has named Mr, Matson as the auctioneer, if his terms are reasonable. The Telegraph Department ask that ten acres should be allowed them for horses and cows, but I think the reservation in No. 9is sufficient. I was not aware there was a lineman's place at the Gower confluence. The Telegraph Department has no title.

C—9.

The reserves had better not be mentioned in these conditions in order not to complicate them, but the lessee is to have the pasturage of all within the borders of the published map for the rent which he is to pay, except the Rabbit Board's fifty acres, &c. I think it would be reasonable to require the lessee to provide accommodation for travellers at a reasonable rate and of a reasonable kind, and a clause has been added providing for this. There are a few other verbal amendments. The Order in Council will be drawn up here, based on these conditions, when you report the result of the sale. There is a formal memorandum drawn up by Mr. Bell stating the agreement made between him and the Government, extracts from which I send for your information. You will see that the trustees agree to run Cheviot stock until 15th April, and the Government rent will commence only on Ist May, so that from 7th March to Ist May no rent is payable. The whole rent to be paid is, 54755 from Ist May to Ist October at full rent, and from Ist October to Ist April gjsg. of x (say £867—£560). If, therefore, no advance on £867 be offered, the rent will be five months at £867, and six months at £560; £7,695 for eleven months. Make it quite clear that there is to be no greater reduction than in proportion to area, and that the grazing value of the 30,000 acres to be resumed is not to be considered. As to rabbits, Mr. Ritchie thinks that at present there are three men employed destroying them, and paid by the estate. Should it be necessary to maintain this staff, the Government will pay the cost. Kindly wire result of sale on the 28th. A. Barron, Under Secretary. P.S.—ln order to avoid disputes at the end of or during the lease, an inventory of the moveables taken over should be made and agreed on before the Ist of May.—A.B. P.S. 2. —Should any question be raised as to the validity of the sale because there is no Order in Council authorising it, you may undertake, on behalf of the Crown, to have a perfectly valid lease executed; but, of course, unless the question is raised, it should not be mentioned. We rely on Mr. Bell's undertaking in the letter, copy of which is sent you.—A.B.

No. 24. Commissioner of Crown Lands, Christchurch, to the Surveyor-General. (Telegram.) Christchurch, 24th February, 1893. Mr. Matson's charge is twenty guineas, and, if lease sold, one per cent, on total rent. Please wire if accepted, and forward instructions and conditions so as to reach me not later than Monday morning. J. W. A. Marchant, Surveyor-General, Wellington. Commissioner of Crown Lands.

No. 25. (Urgent telegram.) 25th February, 1893. Matson's price is twenty guineas, and, if lease sold, 1 per cent, on total rent. This would mean, in case of a sale, a payment of ninety-eight pounds for his services on the day of sale. Do you concur, or shall another auctioneer be asked for terms ? Hon. John McKenzie, Kekerangu. A. Barron.

No. 26. Commissioner of Crown Lands, Christchurch, to the Surveyor-General. (Urgent telegram.) Christchurch, 27th February, 1893. No, I have no copy of proprietor's map of Cheviot, which is the only one showing fences and paddocks. The Surveyor-General inspected map which proprietor wishes to sell to Government. Will you please inquire from Mr. Bell price, and whether I can procure plan at once in event of estate not being leased on 28th? We should announce that it will be offered in subdivisions before people leave for stock-sale. The conditions are just to hand. Reply urgent if Mr. Matson is to act as auctioneer. Do you still wish clause put in about rabbits ? I presume not, as you say Government will incur all cost. What about Darrock ? He may not give up possession, and persist in rights of cropping. Should a survey clause be put in in case lessee raises objection to title ? Shall we state at meeting that the rent will be reduced to £560 on Ist October whether the 30,000 acres are resumed or not. J. W. A. Marchant, The Surveyor-General, Wellington. Commissioner of Crown Lands.

No. 27. The Secretary for Crown Lands to the Commissioner of Crown Lands, Christchurch. (Urgent telegram.) 27th February, 1893. Cheviot.—Never mind clause about rabbits. Darrock's claim must be ignored at present. If he can arrange with new tenant, the Crown can authorise specially, see clause 6c. Mr. Matson's terms may be agreed to unless you have a wire to-day to the contrary. The Government is satisfied with Bell's letter, and you may undertake to give sufficient title. The £560 rent, when 30,000 acres resumed, will depend on the rent bid. Mr. Bell agrees to your taking tracing, and asks Mr. Campbell to be wired to. The Commissioner of Crown Lands, Christchurch. A. Barron.

15

C—9.

No. 28. The Secretary for Crown Lands to the Hon. the Minister of Lands. (Telegram.) 27th February, 1893. Kindly wire Marchant to-day if you agree to Matson's terms for selling Cheviot, namely, twentythree guineas, and 1 per cent, on total rent. I have told him to accept terms, unless he is wired to contrary to-day. Wire also, if, in case of no sale, Marchant may announce that each paddock, as fenced, will be offered for lease in, say, fourteen days. Mr. Bell agrees to our making copy of their plan showing fences, &c. The Hon. John McKenzie, Minister of Lands, Kaikoura. A. Barron.

No. 29. Commissioner of Crown Lands, Christchurch, to the Under-Secretary for Crown Lands. (Urgent telegram.) Christchurch, 28th February, 1893. No bid for Cheviot as a whole. Announced we would reoffer in subdivisions at an early date. Difficulty is we have no plan showing fences. Would be glad of your opinion as to number of subdivisions, and whether we can reoffer estate as a whole without resumption of 30,000 acres. What is cost of map ? J. W. A. Marchant, Under-Secretary for Crown Lands, Wellington. Commissioner of Crown Lands.

No. 30. C. R. Campbell, Esq., to H. D. Bell, Esq. (Telegram.) Cheviot, 28th February, 1893. Marchant asks price of map. Eeplied he could have it at cost price, namely, five hundred and three pounds, if you agreed. If they will not close, what would you let them have it for ? H. D. Bell, Wellington. Campbell.

No. 31. H. D. Bell, Esq., to Mr. Hanmer, Surveyor, Christchurch. (Urgent telegram.) 28th February, 1893. Please inform Chief Surveyor, Christchurch, by wire, exact cost of recent survey and plan done by you for Trustees Cheviot Estate. That is, exact sum paid you and now due you. Hanmer, Surveyor, Christchurch. H. D. Bell.

No. 32. Secretary for Crown Lands to the Hon. the Minister of Lands. (Telegram.) 28th February, 1893. Trustees want £503 for map of Cheviot. Have asked Mr. Marchant to see it and value. Seems a high price, but think trustees would take less, probably £250. Might be worth this if it would enable us to sell in paddocks as fenced. Bell offers £600 a month for the lease; would probably spring to £650, subject to reduction pro rata if 30,000 acres resumed in October or later. Asks that trustees should have refusal if an offer made to you in Christchurch by syndicate. He has wired his co-trustees and the auctioneers, asking them to consent to postponement of sale for fourteen days. If their map shows fences would give time to readvertise and get out areas of paddocks, and, whatever the size of these paddocks, each would have to be made one run. Bell asks that a hydraulic wool-press at the station should be taken over at a valuation. Hon. John McKenzie, Waiau. A. Barron.

No. 33. The Secretary for Crown Lands to the Chief Surveyor, Christchurch. (Telegram.) 28th February, 1893. Trustees offer map of estate for £503 (five hundred and three pounds). Please examine it and give your estimate. It is said to include an engineering survey of a road to the port and of other roads. Minister will be in Christchurch Thursday. The Chief Surveyor, Christchurch. A. Barron.

No. 34. H. D. Bell, Esq, to C. R. Campbell, Esq. (Telegram.) Wellington, 28th February, 1893. Government ask us to postpone sale for a fortnight. Do you see any objection? I think we should endeavour to meet their convenience, and recommend agreeing. Their reason is that they wish to advertise grazing rights in small lots, and it seems this would help our sale of stock. Please reply at once. C. R. Campbell, Cheviot. H. D. Bell. [A copy of the above telegram was sent to Mrs. Patrick Campbell, Jones House, Christchurch; Joseph Palmer, Esq., Christchurch; Pyne and Co., Christchurch; Miles, Archer, and Co., Christchurch ; New Zealand Loan and Mercantile Company, Christchurch.]

16

17

a—9

No. 35. The Under-Secretary for Crown Lands to the Hon. the Minister of Lands. (Telegram.) Ist March, 1893. Cheviot.—Trustees now averse to postponement sale; said to be many buyers in Christchurch waiting. Even without trustees' map, a map of the fences near enough for a year's lease could be made in a week. The sale could then be held middle of March. The surveyor could in that time run over the fences, and estimate the relative value of each enclosure. We should be ready to announce day of lease on the 7th. Hon. John McKenzie, Waiau. A. Barron.

No. 36. The Commissioner of Crown Lands, Christchurch, to the Under-Secretary for Crown Lands. (Urgent telegram.) Christchurch, Ist March, 1893. Except for purposes of immediate sale of Cheviot in several leases we do not require the proprietors' map ; I could obtain particulars in two weeks of main subdivisions fences for £50. The Hon. Mr. McKenzie will decide on Thursday night how he proposes to deal with estate, and when sale is to take place. Have sale of stock put off, if possible, to give us time for survey and advertisement. J. W. A. Marchant, Commissioner of Crown Lands. A. Barron, Esq., Government Buildings Wellington.

No. 37. The Under-Secretary for Crown Lands to the Chief Surveyor, Christchurch. (Telegram.) Ist March, 1893. Cannot see Bell, probably gone to Christchurch. Better to arrange to have fences roughly mapped out, so that sale can take place about 14th. The Chief Surveyor, Christchurch. A. Barron.

No. 38. The Chief Surveyor, Christchurch, to the Under-Secretary for Crown Lands. (Telegram.) Christchurch, 3rd March, 1893. By orders of Minister tenders are invited for lease Cheviot on same conditions as previously auctioned. Minister will attend here and open tenders at eleven Saturday morning ; shall have three surveyors on ground Saturday. J. W. A. Marchant, A. Barron, Esq., Wellington. Chief Surveyor.

No. 39. . The Chief Surveyor, Christchurch, to the Surveyor-General. (Telegram.) Christchurch, 4th March, 1893. No tender for Cheviot. Now advertised for lease in seven blocks after survey about three weeks hence ; three surveyors on ground. Please have railway laid off; slip also out of repair. J. W. A. Marchant, The Surveyor-General, Wellington. Chief Surveyor.

No. 40. Advertisement calling for Tenders for Eight of Pasturage. CHEVIOT ESTATE. Notice is hereby given that tenders are invited for the right of pasturage over the under-mentioned nine blocks on the Cheviot Estate, comprising a total area of about 83,300 acres. The sale-plan and conditious of lease may be seen at this office, where full particulars can be obtained.

Schedule.

3—C. 9.

Block. Area. Term. Wart Tormore Benmore Seaward Range Waiau East ... Waiau West ... Homestead ... Hurunui Port Hills ... Acres. 11,300 12,800 500 9,600 12,000 8,000 8,000 5,500 8,200 7,400 11 months 11 „ 6 „ 11 „ 11 „ 6 „ 6 „ 6 „ 6 6 „

0.—9

18

The above are the main subdivisions of the estate as fenced. The term of lease in each case will date from 18th April, 1893. The mansion, woolshed, store, stables, slip, shed at port, and other large buildings and cottages are excluded from the blocks. An unprecedented opportunity is offered to persons requiring one or more of the above blocks of splendid country on favourable and advantageous terms. Tenders marked on the outside, " Tender for the Right of Pasturage over the Block, Cheviot Estate," and addressed to the Commissioner of Crown Lands, Christchurch, will be received at the District Lands and Survey Office, Christchurch, up to 12 noon on Wednesday, sth April, 1893. No tender will be accepted unless accompanied by a deposit of one month's rent, either in cash, bank-draft, or cheque, marked good for fourteen days. The highest or any tender not necessarily accepted. J. W. A. Marchant, District Land and Survey Office, Christchurch, Commissioner of Crown Lands. 21st March, 1893.

No. 41. The Chief Surveyor, Christchurch, to the Surveyor-General. Cheviot. Department of Lands and Survey : District Office, Christchurch, 22nd March, 1893. Advertisement and Plan. —In compliance with your telegraphic instructions of the 21st instant, I have inserted advertisements in the Christchurch morning papers calling for tenders for right of grazing the Cheviot blocks. See plan attached.* Preservations. —You will observe that I have excepted 1,119 acres round the mansion, woolshed, and other buildings at the Homestead, of which about 464 acres surround the mansion, the remainder will, with your approval, be allotted for working the woolshed, and leased advantageously as may be arranged subsequently. The other exceptions comprise Section 7, north of the Waiau, and reserves at the slip, Gore Bay, post-office, Kaiwara, Rabbit Board's cottage, &c. Woolshed, Slip, do. —The lessees will be allowed to use the woolshed and dip free ; and if they require the use of the slip and homestead buildings, which may be available, the terms will be subject to arrangement and payment of reasonable charges or rent. Cropping. —The stubble and turnip paddocks fall within the six months' leases. I presume we can deal with such paddocks specially as may be decided later on. Mr. Darrock wants to continue cropping, and I have no doubt that it would be well to deal with the stubble lands at once. In any case it appears necessary to break up the whole area and sow same by early spring. If so, we must take the right to resume the lands before the 18th October. I should like the Hon. Mr. McKenzie's opinion on the subject, as the conditions of sale are being drawn up. Interviews : Mr. Campbell, Mr. Sinclair, and others. —Last Saturday I visited the Cheviot, and saw the several persons indicated by the Minister of Lands. I have ascertained Mr. C. R. Campbell's views, but I have to see him again on my return. Mr. Sinclair is willing to take employment under the Government at £240 a year. Mr. Painter, the boatman, is also willing to remain. Mr. Ward will be pleased to act as Ranger; he could combine the duties with his present work for the present. Thebutcher and blacksmith will probably remain. Mr. Butt has permission to stack his material. Mr. Darrock's application to crop should not be entertained, except as regards putting the stubble and turnip lands in the best possible state at the proper time. Main Boad. —Mr. Pritchard, the road contractor, is anxious to complete one and a half miles of road from the Hurunui terrace towards the Homestead. He undertook to form the road 20ft. wide, crown 18 (far too much), and to place nearly 9in. thickness of shingle by 12ft. in width on top, the price per chain being 325. 6d.; the average lead is three-quarters of a mile, and the cost very reasonable. I informed Mr. Pritchard I would have the road properly located, and see him again on the subject. I strongly recommend that you authorise the construction of the road from the Hurunui Bridge to the Homestead ; otherwise it will be impassable next winter, and affect the sale of the lands; no time should be lost, lam having the work laid out in anticipation that an officer will be specially appointed to carry out road-works under my directions. Baihvay-line.—We are waiting for the Public Works Department to lay-off the railway-line. They should also report on the Hurunui Bridge, the slip, and the road to port. The Crown Solicitor has been requested to prepare fresh conditions, modified as follows : (1.) Maintenance will be confined to fences, hedges, plantations, yards, and huts. All large buildings, slip, &c, having been reserved for future disposal and arrangement. (2.) Accommodation for travellers will not be specified for or enforced. I hope to have a store and accommodation-house opened by a respectable person. (3.) Right to resume, on 18th June, 1893, if the Hon. Jno. McKenzie so decides, the area which Mr. Darrock has had under crop. (4.) Provision for access through the blocks to enable lessee of back blocks to drive stock on and off, &c. (5.) Lessees to pay proportion of taxes for period of lease. As the mail is closing I have only time to add that I shall be glad if you will fix the number of sheep or cattle you think we should allow on each block. I have forwarded advertisements to Oamaru and Dunedin papers; and will insert one in Nelson Blenheim, and Invercargill papers. J. W. A. Marchant, The Surveyor-General, Wellington. Chief Surveyor.

* Sale-plan and advertisement thereon will be out on Friday.

19

C—9

No. 42. The Commissioner of Crown Lands, Christchurch, to the Surveyor-General. (Urgent telegram.) Christchurch, 24th March, 1893. Submit for approval following number of sheep : Wart, 16,500 ; Tormore, 20,500; Waiau, East and West, 11,500 ; Homestead, 7,700 ; Hurunui,;7,ooo; Port Hills, 6,000 ; Benmore, 8,500; and Seaward, 10,800: making 100,000 in all. Would Hon. Mr. McKenzie advise me as condition—delayed? J. W. A. Marchant, Surveyor-General, Wellington. Commissioner of Crown Lands.

No. 43. The Chief Surveyor, Christchurch, to the Surveyor-General. Department of Lands and Survey: (Memorandum.) District Office, Christchurch, 25th March, 1893. Re Cheviot. The draft conditions for leasing Cheviot in blocks have been prepared by the Crown Solicitor, and the conditions will be available on Monday, the 27th instant. A copy shall be posted for your perusal and revision. I have had to anticipate your approval of my proposals, but of course we can amend the conditions in any way you may decide. I expect to be on the estate again on Monday afternoon. I forward six copies of litho. by same mail. J. W. A. Marchant, The Surveyor-General, Wellington. Chief Surveyor.

No. 44. The Under-Secretary for Crown Lands to the Commissioner of Crown Lands, Christchurch. Re Cheviot. 25th March, 1893. In reply to your memorandum of 22nd instant (S. 2335), your recommendation as to resumption of lands under heading of " Cropping " is approved. As regards proposed employment of Mr. Sinclair and others, please delay any engagements for the present. Referring to Mr. Darrock, if the Government sell the land in October the settlers could do the stubble and turnip lands themselves. With reference to the road and railway proposals, this matter will be further considered by Government. Regarding special conditions of lease, condition No. 5 as to taxes is not necessary. As to question of number of sheep, this has been answered by telegram to-day. The Commissioner of Crown Lands, Christchurch. A. Barron.

No. 45. Commissioner of Crown Lands, Christchurch, to the Surveyor-General. (Urgent telegram.) Christchurch, 27th March, 1893. Be Cheviot. —I understand your memorandum of 28th to mean that you do not intend to deal with stubble and turnip lands before termination of leases on 18th October. Is that correct ? J. W. A. Marchant, Surveyor-General, Wellington. Commissioner of Crown Lands.

No. 46. The Under-Secretary for Crown Lands to the Chief Surveyor, Christchurch. (Telegram). 28th March, 1893. In reply re Cheviot: Following is limit of sheep for each run : Wart, 13,000; Tormore, 16,000; Waiau East and West, 11,500 each; Homestead, 7,700; Hurunui, 7,000; Port Hills, 7,000; Benmore, 9,500; Seaward Range, 13,000. Will reply to your letter 22nd instant by to-day's mail. The Chief Surveyor, Christchurch. A. Barron.

No. 47. The Under-Secretary for Crown Lands to the Commissioner of Crown Lands, Christchurch. (Telegram). 29th March, 1893. In reply re stubble and turnip lands Cheviot. Yes, these lands are to be leased till 18th October, as other lands. The Commissioner of Crown Lands, Christchurch, A. Barron.

C—9

20

No. 48. Memorandum from the Chief Surveyor, Christchurch, to the Surveyor-General. Department of Lands and Survey : District Office, Christchurch, 4th April, 1893. Re Cheviot. Tenders for grazing rights over Cheviot subdivisions close to-morrow at noon. You shall have telegraphic notice of tenders. Will you please notify me at earliest possible moment whether any tenders are accepted. Mr. W. Robinson offers to lease the manager's house, the adjacent buildings known as " the store," and stable, with the paddock extending therefrom along the Tea Block, and comprising some 70 acres, he says. He also wants to carry on the butchery business, and for that purpose wants the use of the slaughter-house and paddock attached thereto. He is willing to pay 5 per cent, on value of the buildings and land as rent per annum for a period of eleven months. The buildings were valued at £1,000 and £1,400 respectively; and the land might for the purpose be put down at £4 per acre capital value as regards the Tea Block, but the other could be taken at the average price. If approved I will close with Mr. Robinson on the basis indicated, after an inspection and after conserving public interests. It would be an advantage to have Mr. Robinson on the property for a time, as he is at all times ready to afford information and assistance. He would keep a livery stable and paddock for horses, and make fair charges. Kindly wire if I may proceed to arrange with Mr. Robinson on lines indicated. In regard to your telegram of 30th March, 1893, as to estimated cost of surveys and road formation, Cheviot, I am not prepared to name a sum off-hand, but will consider the matter and report at a future time. J. W. A. Marchant, The Surveyor-General, Wellington. Chief Surveyor.

No. 49. The Commissioner of Crown Lands, Christchurch, to the Surveyor-General. (Urgent telegram.) Christchurch, sth April, 1893. Cheviot tenders as follows, for periods advertised for.—Wart: W. T. Robinson, £1,232, and J. H. Davison, £330. For Tormore: Acton-Adams, £1,219; and Davison, £330. For Benmore : W. B. Clarkson, £955 ; Colin Stewart, £616 ; and Davison, £275. For Seaward: W. Grant, £662. For East Waiau :H. A. Knight, £504. For West Waiau: C. T. Todhunter, £451. For Hurunui: Clarkson, £500. For Port Hills : Randall and Musgrove, £200; and Clarkson, £450. But as latter will only take two blocks presume Randall and Co. have preference. No tenders for Homestead. Please wire decision at once. J. W. A. Marchant, Surveyor-General, Wellington. Commissioner of Crown Lands.

No. 50. The Under-Secretary for Crown Lands to the Chief Surveyor, Christchurch. (Urgent telegram.) 6th April, 1893. Cheviot tenders for leasing. The following are accepted.—For Wart Block: W. Robinson, £1,232 for eleven months. For Tormore Block : Acton-Adams, £1,219 for eleven months and six months. For Benmore Block :W. B. Clarkson, £955 for eleven months. For Seaward block : W. Grant, £662 for eleven months. For East Waiau Block :H. A. Knight, £504 for six months. For West Waiau Block :C. T. Todhunter, £451 for six months. For Hurunui Block : W. B. Clarkson, £500 for six months. Total, £5,523. The Port Hills Block and Homestead Block to be at once readvertised for tender in one block, and the tenders of Randall and Musgrove and Clarkson declined. Mr. Robinson could have manager's house and paddock as proposed from month to month, but it may depend on how Homestead Block is taken up. The Chief Surveyor, Christchurch. A. Barron.

No. 51. The Commissioner of Crown Lands, Christchurch, to the Surveyor-General. (Telegram.) Christchurch, 10th April, 1893. Cheviot.—Tenders for Port Hills and Homestead Blocks combined, are Randall and Musgrove, £550, and Jos. Wharton £200 ; both for six months. The first is at rate of Is. Bfd. per acre a year, whilst average for seven blocks already let is 2s. Id. Considering all circumstances, I recommend accepting Randall and Musgrove's tender. The total annual rental on all nine blocks, comprising 13,300 acres, at rate of about 2s. an acre, or a total of £1,448. Please reply if possible by 3 o'clock. J. W. A. Marchant, Surveyor-General, Wellington. Commissioner of Crown Lands.

21

C—9

No. 52. Memorandum from the Under-Secretary to the Hon. the Minister of Lands. Department of Lands and Surveys : Wellington, New Zealand, 10th April, 1893. Cheviot Estate. Tenders for Homestead and Port Hills: Randall and Musgrove, £550; Jos. Wharton, £200. Randall and Musgrove recommended for acceptance. Accept.—J. McK—lo/4/93. A. Barron.

No. 53. • The Under-Secretary to the Commissioner of Crown Lands, Christchurch. ■ (Urgent telegram.) 10th April, 1893. Accept Randall and Musgrove's tender at £550 for Port Hills and Homestead Block for six months. The Commissioner of Crown Lands, Christchurch. A. Barron.

No. 54. H. D. Bell, Esq., to the Secretary to the Treasury. (T. 93/486.) Sir, — Panama Street, Wellington, New Zealand, 10th April, 1893. With reference to the arrangements which have been made between Mr. Parfitt, the Treasury, and myself as to the payment on the 18th instant of the purchase-money for the Cheviot Estate, I beg to advise you now that, in consequence of objections made by one of my co-trustees, the arrangements will require to be modified as follows: — 1. The sum of £260,220, either in two cheques or one, will have to be in Christchurch, and the cheque or cheques countersigned there on the 18th April. If I receive the cheques here during the the course of the present week, I will send them to the solicitors to the estate to be presented with the deeds dnly executed to your countersigning-officer. 2. The trustees agree to purchase £200,000 worth of Treasury bills on the 18th April at Christchurch, and I therefore ask you to have the Treasury bills ready, say, in the hands of the Bank of New Zealand at Christchurch, on that day. 3. On that day a cheque by the trustees for £200,000 on their account will be handed to the Bank of New Zealand in exchange for the Treasury bills. 4. To save any possible question which might be raised as to exchange, the Government cheque or cheques must be drawn upon the Bank of New Zealand at Christchurch. I have seen Mr. Parfitt, who sees no difficulty in this arrangement. I have, &c, The Secretary to the Treasury, Wellington. H. D. Bell, For the Trustees of the Cheviot Estate.

No. 55. Memorandum from the Chief Surveyor, Christchurch, to the Hon. the Minister of Lands. Department of Lands and Survey : Sir,— District Office, Christchurch, 11th April, 1893. Mr. Bobinson's Proposal. —ln regard to Mr. Robinson's offer to purchase the manager's house, the store and stable, and small paddocks, as already notified to you, I have to point out that we have leased the contiguous blocks for six or eleven months, but have retained about 1,100 acres round the mansion and woolshed. Having thus put off for a time the chance of selling the mansion and any large block of land, I recommend that you allow me to arrange a lease with Mr. Eobinson for six months certain, and then from month to month. As he intends to start a livery stable, store, and butchery, he necessarily wants a reasonable term. He, no doubt, will make a good thing out of the proposal; but, I think, the arrangement will be to our advantage and the public convenience. 1 will look after the public interest in the matter. On Saturday morning I leave for Cheviot, to bring matters to a conclusion with Mr. Campbell and all other persons there. I should be glad to hear what arrangements have been made about taking over the estate. Leases. —I am completing the conditions of sale, and having the Cheviot leases prepared for issue to the successful tenderers. Settlement and Boads. —I shall be glad to know your mind on the subject of offering Cheviot for settlement, and as to construction of roads. The main road in from the Hurunui Bridge, and that down the Tea to the port, should be constructed now. On receipt of this I shall be much obliged if you can spare time to cause me to be informed of your wishes and views. Yours, &c, J. W. A. Marchant, The Hon. John McKenzie. Chief Surveyor.

C—9

22

No. 56. The Secretary to the Treasury to H. D. Bell, Esq. (No. 176.) Sir,— The Treasury, Wellington, 12th April, 1893. In reply to your letter of the 10th instant, I have now the honour, by direction of the Colonial Treasurer, to enclose two cheques drawn on the Christchurch branch of the Bank of New Zealand for the sums of £200,000 and £60,220 respectively in payment of the Cheviot Estate taken by the Government under the provisions of the Land- and Income-tax Assessment Acts, 1891-92. These cheques are countersignable on the 18th instant by Mr. Henry Cotterill, solicitor, Christchurch, upon his being satisfied that a conveyance of the property to the Crown has been duly executed. It is further understood, and has been so arranged between yourself (acting for your co-trustees) and the Government, that at the time these cheques are countersigned the trustees shall hand their cheque for the sum of £200,000 to the Manager of the Bank of New Zealand at Christchurch, who will thereupon deliver to the trustees a Treasury bill of even date for £200,000, having a currency of six months, and bearing interest at the rate of per cent, per annum. I have, &c, J. B. Heywood, Secretary to the Treasury. H. D. Bell, Esq., for the trustees, Cheviot Estate, Wellington. P.S.—Will you kindly arrange for the settlement of all matters before noon on the 18th instant, as the bank here has to be advised by telegraph when the transaction is fully completed.

No. 57. The Secretary to the Treasury to H. Cotterill, Esq. (No. 175.) Sir,— The Treasury, Wellington, 12th April, 1893. It being understood that your Mr. Martin will have left Christchurch before the 18th instant, I have the honour, by direction of the Colonial Treasurer, to inform you that you have been appointed to countersign two cheques drawn by me in payment of the Cheviot Estate, and for the sums of £200,000 and £60,220 respectively. These cheques are not to be made use of until the 18th instant, and before countersigning them you will please assure yourself that the conveyance of the Cheviot property to the Crown has been duly executed by the proper parties as arranged, and you will please certify to this on the voucher, which I enclose herewith. In connection with this voucher, J. shall be glad if you will obtain such acquittances as are available, and then return the voucher to me, and Mr. Bell has kindly promised to see that the remaining ones are obtained. I have, &c, J. B. Heywood, Henry Cotterill, Esq., Solicitor, Christchurch. Secretary to the Treasury.

No. 58. The Secretary to the Treasury to the Manager, Bank of New Zealand, Wellington. (No. 173.) Sir,— The Treasury, Wellington, 12th April, 1893. Referring to my letter of the 18th ultimo, I have now the honour to state that two cheques have been drawn on your Christchurch office for presentation on the 18th instant for the sums of £200,000 and £60,220 respectively, and I am directed by the Colonial Treasurer to ask you to instruct your Christchurch manager to see that at the time of the presentation of these cheques there is also handed to him a cheque for £200,000, drawn by the trustees of the Cheviot Estate, in return for which he is to deliver to the trustees the Treasury bill No. 21, which I now enclose for that purpose. The trustees' cheque for £200,000 is to be credited to the Public Account General, on the 18th instant, so that the net result of the transaction will only be a withdrawal of £60,220 from the Public Account on that date. It is understood that the Government will not be charged with exchange in connection with the transfer of these moneys between Christchurch and Wellington, and vice versd. I have, &c, J. B. Heywood, The Manager, Bank of New Zealand, Wellington. Secretary to the Treasury.

No. 59. The Manager, Bank of New Zealand, Wellington, to the Secretary to the Treasury. Sir, Bank of New Zealand, Wellington, 13th April, 1893. I have the honour to acknowledge the receipt of your letter, No. T. 93/486, enclosing Treasury bill No. 21 for £200,000, which will be duly forwarded to our Christchurch manager with the necessary instructions. I have, &c, The Secretary to the Treasury, Wellington. P. T. J. Parfitt, Manager.

a—9.

No. 60. H. D. Bell, Esq., to the Secretary to the Treasury. Sir,— Panama Street, Wellington, N.Z., 13th April, 1893. I have the honour to acknowledge the receipt of your letter of the 12th instant, covering cheque for £200,000 and £60,220 respectively, countersignable by Mr. Henry Cotterill, solicitor, Christchurch. You correctly state the terms of the agreement made between the Government and myself. I will endeavour to arrange that the settlement shall take place before noon on Tuesday. I have, &c, The Secretary to the Treasury, Wellington. H. D. Bell. .

No. 61. Memorandum from the Hon. the Minister of Lands to the Commissioner of Crown LandsChristchurch. (Telegram.) 13th April, 1893. In reply to your letter of 11th and a telegram of to-day, Mr. Barron, Under Secretary for Lands, has communicated with you to the effect that it will be necessary for you to be at Cheviot on the 18th. On receipt of a telegram from department here, you will then take possession of the estate on behalf of the Government. A telegram will be sent you as soon as deeds handed over to Government and money paid and transaction completed. I presume you have got the leases for Cheviot all signed, so that there may be no hitch. With regard to Robinson, I think you might give him a certain lease for six months; that is, ending 18th October. If we do not then dispose of that portion of the property on that day, he can have it from time to time. If it is not necessary to retain eleven hundred acres around the mansion and woolshed, you might have some of it temporarily leased, but that of course I leave to your own judgment. Be other cottages that you can spare on the property might also be let so as to bring in as much money as possible; but you will know what is best to do. I shall expect you to be able to complete your arrangements with Mr. Campbell on this visit, so that you can then give me an idea as how to make provision for matter in the Bill to be brought before the House. You might also arrange for temporary occupation by Mr. Campbell of the house, &c. As regards roading, you will have to send me up a rough estimate of the cost, together with your views. Of course Ido not expect you to send me plans and details, but simply a rough estimate of money you require, and what you propose to do. I will then make arrangements to find the money and give you further particulars. I am well pleased at the attention you are giving to the Cheviot, and the way your getting on. Commissioner of Crown Lands, Christchurch. John McKenzie.

No. 62. The Chief Surveyor, Christchurch, to the Surveyor-General. (Telegram.) Cheviot, 18th April, 1893. Awaiting your promised instructions about taking possession of Cheviot, also as to Sinclair. J. W. A. Marchant, The Surveyor-General, Wellington. Chief Surveyor.

No. 63. The Under-Secretary for Lands to the Chief Surveyor, Cheviot. (Telegram.) 18th April, 1893. Shall wire you immediately information is received that the conveyance of Cheviot has been completed, so that you may take possession. J. W. A. Marchant, Esq., Chief Surveyor, Cheviot. A. Barron.

No. 64. C. B. Shanks, Christchurch, to the Under-Secretary for Lands, Wellington. (Telegram.) Christchurch, 18th April, 1893. Mr. Cotterill will prepare the eight Cheviot leases for two guineas each. Shall I accept his offer, which seems reasonable ? Charles B. Shanks, Under-Secretary for Lands, Wellington. For Commissioner of Crown Lands.

23

C—9.

No. 65. The Under-Secretary for Lands to the Commissioner of Crown Lands, Christchurch. (Telegram.) 18th April, 1893. Mb. Cotterill's terms for Cheviot lease accepted. The Commissioner of Crown Lands, Christchurch. A. Barron.

No. 66. The Manager, Bank of New Zealand, to Secretary to the Treasury. Memorandum (T. 93/503.) Bank of New Zealand, Wellington, 20th April, 1893. The Public Account has this day been credited £200,000 on account of the sale of the Treasury bill No. 21 to the Trustees of the Robinson estate, and the balance now stands : Cr., £479,161 19s. 7d. The Secretary to the Treasury, Wellington. P. T. J. Parfitt, Manager.

No. 67. The Chief Surveyor, Christchurch, to the Surveyor-General. (Telegram.) Cheviot, 28th April, 1893. Propose to accommodate Darrock with 200 acres at 3s. an acre; (2) to close with Robinson on behalf of block lessees for lease of 400 acres round woolshed at 3s, 6d. per acre, and for shearers' quarters for £20 a year; also to lease him cart-shed at 10 per cent., and 50 acres adjoining at 3s. 6d. an acre. This will conclude leases and leave 40 acres. Please approve. Mr. Campbell will reply re main question to-morrow. Wet and misty last ten days; work seriously delayed. Am awaiting Mr. Smith, and to see each block survey well started. J. W. A. Marchant, The Surveyor-General, Wellington. Chief Surveyor.

No. 68. The Under-Secretary for Crown Lands to the Chief Surveyor, Christchurch. (Telegram.) sth May, 1893. In reply to telegram 28th April re Cheviot, your proposals re Darrock and Robinson approved. The Chief Surveyor, Christchurch. A. Barron.

No 69. Leases of Subdivisions of the Cheviot Estate, forwarded for execution by His Excellency the Governor.

24

Name of Block. Lessee. Area. Term of Lease. Rental for Term. Wart ... Tormore... Seaward Range West Waiau East Waiau Robinson, William Thomas Acton-Adams, William Grant, William Todhunter, Charles F. Knight, Henry Arthur Clarkson, William Bowes Acres. 11,300 12,800 500 12,000 8,000 8,000 9,600 8,200 5,500 7,400 11 months 11 6 „ 11 6 6 „ 11 6 „ 6 „ 6 „ £ s. 1,232 0 1,173 6 25 0 662 3 451 0 504 0 955 0 500 0 d. 0 8 0 3 0 0 0 0 Benmore Hurunui Homestead Port Hills ... Musgrave, Vernon F.... Eandall, John Allan ... I 550 0 0

25

C—9

No. 70. Statement re Cheviot Estate. Prime Cost of Estate, £260,220. Area of Estate, 84,755 acres, being at the rate of £3 1s. 5d. per acre. Blocks at present leased as under: —

Total Annual Revenue on present basis ... ... £8,886 18s. lOd. The annual rental of £8,886 18s. 10d., as above, represents 3-4 per centum on the purchasemoney. Approximate Cost of Paper.— Preparation, nil; printing (1,400 copies), £17.

By Authority: Samuel Co-stall, Government Printer, Wellington.—lB93.

Price !)d.]

4—C. 9.

Name of Blocks, &a. Lessee. Area. Term of Lease. Rental for Term. Being Rate Per Annum of Wart Tormore Seaward Range West Waiau... East Waiau ... Eobinson, W. T. Acton Adams, W. Grant, W. Todhunter, C. F. Knight, H. A. ... Clarkson, W. B. I Acres. 11,300 12,800 500 12,000 8,000 8,000 9,600 8,200 5,500 7,400 400 11 months 11 6 11 6 6 11 6 6 „ ) 6 „ j Monthly £ r. d. 1,232 0 0 1,173 6 8 25 0 0 662 1 3 451 0 0 504 0 0 955 0 0 500 0 0 £ r. d. 1,344 0 0 1,280 0 0 50 0 0 722 5 0 902 0 0 1,008 0 0 1,041 16 4 1,000 0 0 Benmore Hurunui Homestead ... ) Port Hills ... ) Mansion Grounds Manager's House McQueen's „ Sinclair's „ Paddock Hayes's House Cart-shed and Jed Pad-) dock ... J Musgrove, V. F., and Randall, J. A. Campbell, C. E. Robinson, W. T. McQueen Sinclair, J. Darrock Hayes ... 550 0 0 1,100 0 0 200 0 0 57 0 0 12 0 0 12 0 0 28 10 0 8 0 0 12 0 0 12 5 0 20 0 0 190 Robinson, W. T. 70 (Shed" (May 1st to Oct. 18th Shearers' Quarters Hay field and Homeview Paddocks Paddock Unlet a a 435 a a 76 2 6 McQueen 5 355 10 0 84,755 8,886 18 0