WASTE LANDS COMMITTEE: REPORT ON THE PETITION OF W.T. ERSKINE AND OTHERS, RELATIVE TO THE THROWING OPEN OF THE RAI AND ADJACENT VALLEYS IN THE INTERESTS OF SAWMILLING AND SETTLEMENT, TOGETHER WITH MINUTES OF EVIDENCE AND APPENDICES.

Appendix to the Journals of the House of Representatives, 1894 Session I, I-05b

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1894. NEW ZEALAND.

WASTE LANDS COMMITTEE: REPORT ON THE PETITION OF W.T. ERSKINE AND OTHERS, RELATIVE TO THE THROWING OPEN OF THE RAI AND ADJACENT VALLEYS IN THE INTERESTS OF SAWMILLING AND SETTLEMENT, TOGETHER WITH MINUTES OF EVIDENCE AND APPENDICES.

Report brought up 17th October, 1894, and ordered to be printed.

' • " EEPOET. Petitionees pray that restrictions over Crown lands in the Pelorus district may be removed, so that the sawmilling industry may be encouraged, and settlement proceeded with at once. I am directed to report that, in the opinion of this Committee, after hearing the evidence, hereto attached, of the Hon. John McKenzie, the Hon. A. J. Cadman, Mr. Mills, M.H.R., and Mr. Buick, M.H.R., and carefully studying the reports therein, it has been conclusively shown that the sawmilling timber now growing on those Crown lands in the Pelorus district is of such great value and importance to the colony, especially as a lasting factor in providing employment and assisting bond fide settlement, that we recommend the Government to take immediate steps to open up the valuable forest-lands in that district, in the interests of sawmilling and settlement. 17th October, 1894. R. Thompson, Chairman.

MINUTES OF EVIDENCE.

Wednesday, 15th August, 1894.—(Mr. R. Thompson, Chairman.) Mr. C. H. Mills examined. Last year a petition was presented to Parliament and dealt with extensively, the result being this report to the House. [See Appendix A.] I wish to explain to the Committee that many years ago the Provincial Government intended to open up these forest-lands by means of a tramway. The surveys were prepared, and everything was arranged to carry out this intention, but just before the matter was finally decided the provinces were abolished, and everything merged into the General Government. After the matter had been investigated by the General Government, a vote was passed in this House allocating £14,000, and a similar sum for the next year, to be expended in the construction of a line to Rai Valley, showing that at that time the Government recognised the importance of the matter. Some time afterwards a company calling themselves the Pelorus Tramway Company took upon themselves to construct a private line, and while they were agitating about which side of the valley the line should be constructed on the vote lapsed, and they never asked to get it renewed, because they considered that they had such a monopoly in opening up this land that they would not require the vote. Afterwards, this district suffered severely through the land being placed under the Eorest Conservation Act. Much land was locked up, and settlers wanted land to settle on and they could not get it. We think that, as there is such a large amount of land under timber, and that it provides such a large field for employment, it will be far better to open the land in the interests of sawmilling and settlement. Some time ago Mr. Seymour and myself were asked to go and give an estimate of what timber we considered was on that land.' We went and spent about a fortnight on the land, and sent in a report to the Government. That report, I believe, will be on the table amongst the papers the Minister now has, and I wish them put in in evidence, so that when this paper is compiled the matter will be before the Minister in a concise form. After a reference to the plans and maps of the locality, the Committee will see that the only outlet is down to the seaport at Havelock. The lowest saddle at the head of the Ronga Valley and Croixelle's Harbour is about 800ft. high. The line at present is constructed from the I—l. sb.

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Black Ball Sawmill, near Havelock, a distance of about nine miles inland, has iron rails and a locomotive engine. In estimating the whole of the forest lands the then Commissioner of Crown Lands, Mr. Clarke, gave us a rough sketch, placing the estimated area of land at 40,000 acres. That was the nearest guide we could gain. Seymour and I calculated that, including the birch on the land, it would yield 20,000ft. to the acre, and estimating with a basis of sixpenny tithes the amount of £200,000 would be secured from tithes alone. We found that the nature of the land was not what might be termed first-class land, taking the area collectively. There are small portions of good land, but very large portions of all the valleys are what you might call second-class land. The crop now on the land is the best that ever will be there, so far as we could estimate. There has been a lot of controversy in reference to this matter, and the Land Board decided that, if this land is opened up by means of the tramway, then the timber would be most valuable, but if not, the timber would be a detriment to the settlers. But some of those who reside in the place have made a statement as to the quantity of timber not being on the ground. There is one paper before the Committee which was placed on the table of the House last year, and it is from a very old settler, the pioneer of that district in fact, Mr. Turner. He found fault with the Land Board for estimating the value of the timber on the ground. But in writing that letter, as the Committee will see, he unintentionally proved the statement that Seymour and I had made. [See Appendix B.] He proved our case so far that our estimate was within the mark. 1. Mr. Duncan.] On an average, what would be the height of the trees? —I would say the average height would be from 50ft. to 60ft. clear. There are a great number of them that would go 80ft. or 90ft. 2. Mr. T. Mackenzie.} Not clear trunk?—Yes; you will get a great number of trees that height, free from all branches. 3. You mention about totara trees being 6ft. in diameter. Are they sound right through; those in the South of that diameter are usually hollow ?—Many years ago I took a contract from the Government to put up the telegraph-poles from Havelock to Nelson, and it was only totara that I had to use. The only place where I could get totara was at Rai. From those who were engaged there cutting the trees for me I heard very few complaints about getting hollow trees, and we'had'to cut a good few trees to supply the necessary number of poles. I wish, further, to point out to the Committee that this timber can be brought from where it is growing to the seaport at a less cost than any other timber that I know of in New Zealand. About nine miles is the distance where it starts from. 4. The Chairman.] What will it cost to bring it per 100ft. per mile ? —lf the tramway was open as a Government line they would charge such a rate as would just clear working-expenses. 5. What about the interest on the cost of the tramway?—l am assuming that they would charge that in any case, but I was referring to the cost of haulage. I should say that it could be brought for something like Is. per 100ft. 6. How many miles?—About nine miles at the start. It would by degrees be extended another fifteen miles up the valley to its head. I wish to point out to the Committee that this tramway is not only for the block we are speaking about, but there is a large area of timber-land in the Wakamarina Valley that will come out as it is required. Then, there is also the timber from the Pelorus Valley. This latter is included in the report of Mr. Seymour and myself. [See Appendix C] I want also to put in the report of myself and Mr. Seymour, and, if the Committee are satisfied with its being put in the paper, I will not occupy your time by reading it at present. [See Appendix D.] The Chairman : That will do. Mr. Mills : The report from Mr. Clarke will be placed in evidence, and also the report from the present Commissioner of Crown Lands, Mr. W Teetman, which can also be attached; but as the Committee will see it only deals with timber in the Rai and its tributaries [See Appendix E and Appendix E] I will just point out that on the East Coast, from North Cape down to Catlin's River, I am not aware that we have any forest-lands worth calling good bush-country. It is a very serious matter to us, for we gain a very great deal by the interchange of products with Wairau ; and with a probability later on of all these Crown lands being opened up in the Awatere, it is very clear that a large quantity of timber will be required for local consumption. Therefore an interchange for timber with other products means a very great assistance to settlers in our district. To sum the matter up, I say : This line is the key to all the splendid bush belonging to the Crown, and, if systematically worked, the timber is estimated to yield £200,000 in royalties. It is estimated there are about 40,000 acres of Crown lands in this district heavily timbered— i.e., ranging from 10,000ft. to 50,000ft. —and, including birch, the land will average over 20,000ft. to the acre. Twenty thousand feet at 6d. per hundred would mean £5 per acre for royalties, and extending over 40,000 acres it would mean the large sum of £200,000. This timber can be brought to the seaboard with less haulage than from any other bush in New Zealand. One thousand acres of heavily-timbered land will keep a large sawmill continuously cutting from ten to fifteen years, thus finding constant employment for thirty men; whereas, if you divide the same block into 200-acre sections, you can only settle five men there, and they must have either money, friends to assist them, or work handy where they can earn some wages. No other industry creates such wide employment, as fully 80 per cent, must be spent in wages, &c, before a hundred pounds' worth of timber is ready for the market, and the transport in coasting vessels means a good deal of work for our sailors. The land is worth three times as much to a settler when all the sawmilling logs have been cleared away in comparison with having to fall and burn all the timber. One ordinary sawmill cuts 2,000,000ft. per annum, which, at 6d. per hundred royalty, would mean £500, and six of these would mean a revenue of £3,000 a year to pay interest on cost of purchase of the present line, and extending it to the Ronga Valley

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If it cost £40,000 to purchase and extend the tramway, the interest on that sum at 3-J- per cent, would only be £1,400 per annum, leaving £1,600 to put by every year; this, at compound interest, would redeem the debentures in less than fifteen years, thus leaving the line all clear profit, for the haulage and traffic would more than pay expenses, and eventually it will form part of a railway to connect Nelson with Picton. The land, when cleared of heavy timber, could be ballotted for annually, and poor men will have, under this scheme, constant employment near their holdings, and not require assistance from the State. In fourteen years hence every wooden bridge, and in twenty-five years hence every wooden building in the colony will want renewing, and this Will mean an immense order, without considering the wants of an increased population. As settlement is extended to the Awatere a large quantity of timber will be required there, and even now the interchange of timber for other products in the Wairau means procuring all our flour, potatoes, oats, &c, at 15s. per ton less cost. Nearly all the sawmilling timber is cut out from Takaka, Collingwood, and the Waimea, consequently this in the Pelorus is the only valuable forest from Cape Farewell all down the East Coast to Catlin's River, in Otago. The timber industry provides a continual source of employment for working-men, mechanics, sailors (transporting it), and many others without expense to the State, and it is a well-established fact that sawmillers are the best pioneers for all bush settlements, as a valuable national asset is utilised instead of being absolutely wasted. The petitions in circulation show we all wish the district to be opened up at once, but we want the Government to do it in the most business-like and advantageous way. The "unemployed" difficulty will require the earnest attention of our most thoughtful statesmen, and it seems to us almost a sacrilege to waste and destroy such a great outlet for their labour when it can be utilised. History shows conclusively what evil effects to climate, rivers, and rainfall follow the wholesale denudation of all forest-lands. Central Asia, Russia, and many other countries are now the victims of this short-sighted policy, and, therefore, when the members consider our petition, we trust they will deal with such a question of colonial importance, not from the narrow spirit of local requirements, but on the broad, comprehensive platform of a national policy. I will now ask the Hon. J. McKenzie, the Hon. A. J. Cadman, Mr. Buick, M.H.R., and Mr. John Duncan, Chairman of the Pelorus Road Board, to give evidence on this important question. Hon. Mr. J. McKenzie, Minister of Lands, examined. In the first place, the country referred to by this petition is a State forest reserve. It was set aside for that purpose years ago. After I came into office, a party made application for a special settlement in this district, and I was inclined to grant it, but immediately my attention was called to there being a large quantity of very valuable timber there. I have since visited the district myself, and have satisfied myself that that statement with regard to the timber was true, and I would have no hesitation in saying that it should be worked first entirely for its timber, only there is a difficulty in the way —that is, how to get the timber to a market. This tramway which is shown on this plan belongs to a private individual, who has a sawmill there. The tramway is his own, and it leads into the bush, which is his freehold property; consequently, he can supply all the timber required at the present time from his freehold with his own tramway. To get to our country you would have to go over his tramway, and all the timber would have to be taken by his tramway to the seaport. The only other way would be to carry it by drays, and it would be impossible for the leaseholders to get anything for their trouble of taking the timber off if they had to compete with a man with a tramway. They would have to use dray-traffic, or make a tramway of their own. My own opinion is that it will be impossible to utilise this forest reserve without a tramway. And then the question comes, Can we see our way to purchase the tramway ? If the tramway belonged to the Crown there would be no difficulty in disposing of areas for sawmilling purposes in this valley, and a large revenue would be got from it, and then we w rould have the cleared land for settlement purposes afterwards. But the question of the tramway is the drawback. This gentleman wants a large sum of money for it, and that sum of money would be a very serious item in connection with the opening-up of country. Then, if we discarded the timber altogether and opened up the land for settlement, that would be done, I have no doubt. Then, we have a fresh difficulty to meet in getting the reserve removed by both Houses of Parliament, because we could not put a report before either House that there is not very valuable timber there. The question is, whether the Government should open up this land by getting possession of the tramway, or making one of their own to open it up, or discard the timber altogether. In any case, this is a block to the settlement of the district. 7. Mr. T. Mackenzie.] How much do the owners of the tramway ask for it?—They ask £20,000. 8. What is it worth ?—The sum that they ask for it is far more than it is worth. This man has got the key, and he will not give it up for nothing. 9. Mr. Hogg.] The tramway goes over his own property ?—Yes. Mr. Mills : This tramway cost considerably more than the present company ask for it. The original company consisted of sawmillers here, and they carried it to a certain point—only about four miles —and found their funds insufficient to go on with it. The present owner, Mr. Brownlee, bought it, he having the largest interest in it in the first place; and since then he has carried it on for another five miles. There is a very large cutting they have had to go through. Hon. Mr. McKenzie : No doubt that tramway cost a large sum of money. The real value at the present time is that Mr. Brownlee, the present owner, is cutting bush at his command all up the line, and can keep the tramway going. He has advantages that belong to him.

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10. The Chairman.} Is it a horse-tram ? Mr. Mills : No ; it is drawn by an engine on iron rails. The engines used are about the same size and weight as the ones that used to be used on the trams in the towns. Ido not advocate buying the tramway for any special sum of money. I point out to the Government what is best for the interests of the district and the colony generally, leaving them to make what arrangements they deem most expedient. 11. The Chairman.] Could there be any arrangements made to pay this man royalty for hauling the timber over the portion of the line ? —Yes; but you would have to make a private arrangement, and he would probably make it very dear. The mistake was that when the Marlborough Council gave the permission they did not retain the power to run their produce over the line at a fixed rate. This was not done, and this man can charge what he likes. 12. Mr. Hall.] Is there nothing in the Act to get over the difficulty?—No; it is a private concern. 13. The Chairman.] How long will it be before Mr. Brownlee has got his timber cut out?— About twenty years, at the present rate. Hon. Mr. Cadman, Minister of Mines, examined. 14. The Chairman.] Supposing this tramway was extended, and that this Crown bush was brought into the market, would there be a market for it?—No local market. There is none in Havelock now, but there is in other parts of the colony. Speaking on the petition, all I can say is this : I have been over the district twice—the last time was at Easter, when I was there for three or four days, and the other time about twelve months prior to that. I look at the matter in this way :If the property were my own, what would Ido with it? Seeing the amount of timber that is on it, I think it would be sinful to allow that timber to be burnt. There is no doubt that, outside the question of detail estimate, there is a large quantity of timber there, and, as has been pointed out, the trouble is to get access to it to get it away. My idea is that it would be better to make some arrangement for taking the tramway over, and let the haulage of the timber pay just the bare cost of working, and let the royalty for the timber pay for the whole thing, which it will pay three of four times over. 15. You believe the royalty on timber would more than pay for the construction of a railwayline right up to the timber?—Yes; three or four times over, at the very lowest calculation, without going into details. 16. What amount of royalty do you reckon on?—About 6d. per 100ft. on ordinary timber, but I think you could get 2s. royalty on totara. It was pointed out that it would take a very long tramway to go into this bush. There are nine miles constructed already. Well, in extending that tramway into the bush it will not take so many miles more, because, if you put down iron rails, when you have worked out one portion of the bush, you can lift the rails and shift them to another part. You do not want to be working in every part of the bush at one time. One main line through the valley is sufficient for everything to be worked. The Government have plenty of second-hand condemned rails, and, although they would be heavy for that job, it would be no trouble to lay them there. The engine used is about as heavy as the ordinary tramway-engine formerly used-on the streets. These second-hand rails would be quite suitable for that class of work, and would not cost a great deal. The tramway in Brownlee's possession is in a bad state of repair as far as sleepers and rails are concerned. That part of it Ido not reckon is worth much. The only asset is the cuttings and fillings, which have been made. They are permanent. This tramway would be eventually the line of railway connecting that district with Nelson. That, however, will not be for many years to come, and would be only a secondary consideration at present. The cuttings and fillings on the line, however, are permanent, and they will last. The timber, of course, that is in the Rai Valley is only a small portion of the whole amount. If the Rai Valley were taken first, and worked systematically, settlement could be started. The line would then be lifted and laid down into the Ronga Bush on the left. That could be worked out, and the line then put clown in the Wakamarina—the place of the old diggings. There is a very large quantity of timber there. This timber could be worked in the same manner; and in this way the work could be kept going systematically for many years, and the settlement would be going on all the time. That land, if put in the market, is now worth from 10s. to £1 per acre. If the Government take the timber on it, which would put an expenditure of £1 to £1 10s. per acre on the land— and the timber would pay for that—an enhanced value would be put on the land by clearing it before it is put on the market. Outside this question, however, altogether, there is the one of revenue to the tramway to be derived from the carriage of goods to the settlers. These goods would all come by the tramway, and would bring in a considerable revenue. There are points like that which want considering in dealing with the matter. In my opinion, the proper way to proceed in this matter would be to get a systematic report on the whole thing. The report of the Commissioner of Crown lands will give you some idea on it, but I would not take that report as worth much. I would rather get in two experts to give a report on the cost of the timber, tramways, haulage, &c, before I laid any plans out. As a business-man, I would not take the Commissioner's report as being worth much, as I should prefer experts. I reckon you could put down a very good tramway, allowing for cuttings, and clearing, and stumping, &c, for somewhere about £1,000 a mile. 17. Is the country level?—Yes, it is fairly level; but you will have to put in some bridges. 18. Mr. Hogg.} It is comparatively level country? —Yes. You can get to work the timber out, and you can get the lines in fairly level places, without much trouble. And not being like a railway you are not bound to go very straight. You can run your line in at places to suit the timber. The main thing, I think, is to have a thorough report of the thing, and know exactly the position and condition of all the matters. I think there is at least a hundred thousand pounds'

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worth of royalties in that place, and in saying this I feel that lam within the mark. Then, in respect to the timber, I would say that the average of what I saw would be about 3ft. in diameter. There would be from two to three logs out of every tree — lengths to be cut in accordance with orders, and as short as 12ft. lengths here and there. I average it at two to three logs. That is as far as I saw. I have not been all over the country. 19. The Chairman.} Is it a large area? —Yes ; very large. Mr. Mills : The Commissioner of Crown Lands estimated it at 40,000 acres. 20. Mr. Mackintosh.] What do you think about the new railway ?—I would continue the present railway right into the Rai Valley. 21. Do you expect the sawmill proprietors or the State to make the railway ?—Well, that all depends on the way in which you go about it. 22. The Chairman.] Is there no way of disposing of that timber by auction, as is done in Auckland?—l do not think you could do that, because of the individual cost in getting it out. If the Government said, " There is the land, and we will offer you facilities for getting the timber out," so that people could get it to the towns, half a dozen sawmills would be working in the bush in no time. 23. Mr. Hogg.} If that land is to be opened out by a tramway, would the Government construct a new one ?—I think it would be almost impossible to go out of this line already constructed without tremendous expense.' This one occupies the only available route in the valley. They have had to make cuttings, and if you wanted to build another line you would have to go further into the hills. There are also some very deep fillings. Mr. Mills: I might say that when the private company started they had different Engineers across from the Government, and they had the line laid out with the view that they might sell it as part of the main line to go on to Nelson, and so they spent much more money on the line than would otherwise have been done. [To Mr. Cadman.] Do you think the removing of the timber will increase the value of the land. Hon. Mr. Cadman: Without a doubt. £1 or £1 10s. per acre goes on the land immediately you take .off the timber. More than that, with the sawmills you will take off all the big logs.. 24. Mr. Hogg.] Is a large quantity of the land fit for small farms?—lam not an expert in that line, but I think that all the land is fit for settlement. lam not aware, however, whether it is suitable land for small or large farms. It is good land for settlement. Mr. Buick examined. I wish the Committee to understand in the first place that, so far as being a judge of sawmilling timber country, lam not as expert as Mr. Cadman. After the timber has left the sawmill I profess to know something about it. I have been through the country in question, and, so far as my judgment went, there is a considerable amount of timber in that country suitable for sawmilling purposes, and it would be a great pity to dispose of it in any other way but through the sawmill. There would be also a considerable area of land fit for settlement without sawmills. That could be settled at once, without destroying a large quantity of valuable timber. If this were done immediately, I think it might assist the district to some extent. At the present time their rating-power is limited, and they have no money for the maintenance of their roads. With more settlers, that difficulty might be got over without injuring the sawmilling timber. It would be a great shame to burn this timber. The question is how best to utilise the timber; and, so far as I have seen, there is no other way of utilising it but by the sawmills. Then comes the difficulty of how to get the timber to the market. It might be possible to get the timber over to Croiselle's Harbour. Ido not know much about that point, but I think the Committee ought to be satisfied on it before they come to any determination. It will solve the question of whether the tramway is the only outlet or not. It is also, to some extent, a question that interests Marlborough as a whole—principally Waira.u. We have no timber there, except a little white-pine. The rimu, black-pine, and totara are practically all cut out, and when we want timber we have to get it from this island (North Island). One of the builders at Blenheim has been getting timber from Mr. Brownlee. He gets that timber at 10s. 6d. per 100ft., taking everything the mill likes to send him. That, I think, is about the same price as we can get it from this island. Considering the question of land-settlement, there is no doubt that, if the Land for Settlements Bill passes, properties will be acquired in the Awatere, and, that being so, there will be a much larger demand for timber. The question we have to consider is, whether it will be better to get the timber from Havelock or purchase it from the North Island. If we can get it from Havelock it will be much better than getting it from this island, for then both districts will be benefited by the interchange of products, which will not otherwise take place. I would just like to say that my idea about the whole question is this : First, we have to consider whether there is any real necessity to start operating on this sawmilling timber at once; whether the desire for settlement in that district cannot be satisfied without injuring the sawmilling timber by utilising land not heavily timbered ; or whether the land to be acquired in other parts of Marlborough would be sufficient to meet the whole demand. If it is necessary to operate on this timber at once, then we have to consider whether there is any necessity to buy this tramway. In that district there is a great deal of objection to the buying of the tramway. Why, I know not. Of course, if there is no Other way of getting the timber out but by the tramway, then, I suppose, it will have to be bought. It is one of those questions that has to be considered very carefully indeed, because, rightly or wrongly, in transactions of this kind, people are inclined to say that it is a job whether it is or not. I would impress upon the Committee the necessity of thoroughly considering the question of the purchase of the tramway before they make up their minds. If the tramway can bo utilised for railway purposes, I think it would not be a bad transaction. If it cannot be so utilised, then I think it an undesirable transaction at present. Referring to the outlet by way of Croixelle's Harbour, if that phase of the question is considered

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of importance, then, of course, a report from an independent officer could be got on the subject, andsjthe Committee could see whether it is feasible or not. It would be a crying shame to burn this . timber. In the Province of Marlborough there is a great need for timber, and also in other parts of New Zealand the supply is failing where the bush has been recklessly cut down. Therefore it seems desirable to utilise it in some profitable way, and not burn it. 25. Mr. Mackintosh.] Are you aware whether there has been any approach made to the present owner of the tramway ? Is he prepared or disposed to sell ? —I do not think he will be difficult to deal with if he is approached fairly. He would be anxious to sell. Mr. Mills : I might clear that point up. Two years ago, when the Hon. Mr. McKenzie was over in Marlborough, this matter was brought before him. One of our principal men, Mr. Dalton, went on to explain matters from his point of view with regard to this line, and then stated to Mr. McKenzie that the land in the other valley had given 25,000ft. of timber to the acre. He said, " Now, if you take my advice, you will get Brownlie to say definitely whether he will sell or take a certain price; bring that to a head before you do anything more." A letter was written to Messrs. Brownlee and Company asking them if they were prepared to sell, and at what price. The reply was that they were prepared to sell, and stated their price as £20,000. [Letter here put in evidence.] I know they let recent contracts for the line at an average price of £3 10s. per chain. 26. The Chairman.] What is the general feeling of the people in the district as to the purchase of this tramway, or as to the probabilities of getting another outlet from the valley ?—I have heard only a few people speak about Croixelle's Harbour; and I have heard some people say that is the proper way to get out without a tramway. The feeling is against the purchase of the tramway. Mr. Mills : At the top end of the Ronga Valley the saddle is 800ft. high, and that has to be crossed to get to Croixelle's Bay. This little bay is not a suitable place for shipping timber, because it is nearly all mud-flats. You would have to go about five miles further on to Okiwi Bay to load any fair-sized vessels. Evidence by letter from Mr. John Duncan, Picton, 26th August, 1894. Bib, — The member for Waimea-Sounds, Mr. C. H. Mills, has asked me to put my views upon the opening of the Rai Valley before you, and this I now do as briefly as I can. The placing the Rai Valley upon the list of forest reserves has, in my opinion, proved a serious drawback to Marlborough. It has resulted in twenty years' loss of settlement, and this without the slightest compensating advantage ; values of both land and timber being now even less than when first reserved. The continued reservation of this block means only continued stagnation in the northern part of Marlborough, for any progress there can be insured only by the removal of the present restrictions. I am aware of some difference of opinion as to whether the block in question should be let in sawmill areas or in moderate-sized sections to suit small settlers, and I regret my acquaintance with the whole of the reserve is not intimate enough to entitle me to say which is the better course to adopt. There need be no question that if it were equally well timbered as other forests I have had experience of in this province, and situate as it is, that to utilise it for sawmilling purposes would yield by far the best returns, opening as it would do a field for the use of private capital, the employment of a large industrial population, with the attendant advantages to settlers in the province, besides a big return for tithes to Government, with the land to the good, and in a better state after the removal of the timber for the incoming settler. The existing road would not, of course, give the necessary facilities for developing the timber trade, but under the circumstances I mention communication by rail with the natural outlet—the Port of Havelock —would be required and warranted. Many years since, a sum of money was voted for a railway for this purpose, but some local difference of opinion operated against the work, and the vote lapsed. I may say there was perfect agreement that the work was necessary—the difference was where the port terminus should be. Now, failing a sufficiency of timber for sawmill settlement, of course the only other step is to survey the block into sections of moderate size, and if this were done I feel sure the whole would be taken up by bond fide settlers within twelve months; and further, rather than delay settlement, even if the Rai Valley was proved to be heavily timbered and the Government unwilling to give the necessary facilities for fostering and developing the sawmilling industry, it would be better to give occupancy of the land to small settlers. This would be an extreme step, but I believe would prove in the interest of Marlborough, but at the same time entail a strong reflection upon any Government so doing. Immediate action in withdrawing this large area from the limits of forest reserves would be but an act of justice to a district long neglected and with but little land of any value open for settlement. The first step then to take, if not already taken, would be to obtain reliable estimates of the quantity of sawmilling timber upon the block, and to practical men the rest is easy. Sawmilling, without doubt, as yielding the best returns all round, if the timber is abundant, for its situation, will warrant the expenditure required for railway connection with the port, and settlement in moderate-sized sections if the timber is but sparse, with the certainty that it would be occupied with little loss of time. R. Thompson, Esq., M.H.R., I have, &c, Chairman Waste Lands Committee, House of John Duncan, Representatives, Wellington. Chairman, Pelorus Road Board.

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APPENDICES.

APPENDIX A. Report op the Public Petitions Committee (A to L) on the Petition of the Pelorus Road Board and Others, op Marlborough. Petitioners pray that the Government should procure the present Rai Valley Trarnway-line, and extend the same up the Rai Valley, in order to open up the splendid forest contained therein, and to facilitate settlement. I am directed to report that, in the opinion of this Committee, the bush on the Crown lands in Marlborough is of such importance that the Committee recommends the Government to make further inquiries, so as to ascertain in what manner they can be worked in the interest of sawmilling and settlement to the best advantage of the district and colony. 29th September, 1893.

APPENDIX B. Dear Sir,— Rai Valley, 31st May, 1893. At a meeting of the Land Board it was recommended that the value of the timber standing on each individual section in the Ronga Valley be added to the assessment of the land. Perhaps I can give you an idea of what timber stands on one of the Ronga sections, which the Board could never have had when it was proposed to add the timber-value to the land. A few days ago, on Section No. 39, containing 205 acres, myself and three others chalk-marked 1,300 timber-trees, all over Ift. in diameter—matai, rimu, and white-pine; this was 3ft. or 4ft. from the ground. Took us four hours to mark; very few small trees. Mr. Forrest says a fair way to estimate timber here is to take all timber-trees over Ift. through at I,oooft. a tree. This timber we marked stood on considerably less than half the section—the half that had the least on it. lam prepared to prove, if any one will'come out and mark with me, there is not less than 2,000,000ft. of mill timber on this section, which at 6d. per 100ft. would come to £500. How can settlers pay a sum like this? Mr. Mills told me the Government estimate for the Ronga Settlement was 2,000ft. to the acre; there must be more like 5,000ft. or 6,000ft. Can there be no way of getting at the value of timber ?—to take a strip of land one-third the width of a survey that contains all the timber and spread it over the two-thirds that has none. Sections 39 and 46, or part of them, I was always told, were in the Forest Reserve that completely surrounded us, and I saw a map Huddleston had here with it marked "Forest Reserve." We were refused any land adjoining us seven years ago by Mr. Ballance, through Mr. Percy Adams. The reply I got from Mr. Adams was that the Government could do nothing, because the timber was not to be destroyed, but we might get more land when the timber was removed. Ten years ago a party of men from Nelson came and applied for the Ronga as a special settlement. They were refused, because the Government telegraphed to the Ranger, was there any valuable timber on it ? The reply was, Yes ; and they were refused. Now we are told there is little or no timber, and what there is is worth nothing. Ido not wish to trouble you for a reply. Below is the number of trees that stand on an acre, 2 chains by 5 chains, on Blick's land in the Rai, with the girths of most of them taken 3ft. or 4ft. from the ground. I am, &c, A. P. Seymour, Esq. • Charles Turner.

Totara trees: three, 16ft. girth; two, 19ft. girth; four, 18ft. girth; three, 17ft. girth; one, 22ft. girth ; one, 20ft. girth ; one, 10ft. girth ; two, 15ft. girth ; one, 13ft. girth ; one, lift, girth ; one, 12ft. girth; twenty-five trees of 6ft. girth and upwards.

APPENDIX C. Department of Lands and Survey, District Office, Blenheim, 2nd September, 1891. In reply to your telegram of the 29th ultimo, relative to a description of the lands in the Rai and other valleys, which in my opinion should be opened for settlement, I have to state that the detailed report on the unsold surveyed sections on the eastern side of the Rai, which in my memorandum of the 26th ultimo I suggested should be first thrown open, was destroyed in a fire in the Government Buildings in 1876. I, however, attach a copy of a general report, and description of the lands on the Rai and its tributary valleys, made by Mr. J. Rutland, Ranger of Crown Lands, in 1886. I may state that this description would apply generally to the lands suitable for settlement in the Wakamarina and Pelorus Valleys. Henry G. Clark, Chief Surveyor. The Superintendent of Lands and Survey Department, Wellington.

Repokt on Rai Valley. General Description. The Rai Valley forms an exceptional feature in the physical geography of North Marlborough, containing, with its branches, a larger area of level land than the Pelorus, of which it is a tributary. Surrounded on all sides by a lofty mountain range, in some places upwards of 3,000ft. in height, and having only a narrow opening at its southern extremity, where the Rai River, through a narrow gorge, falls into the Pelorus, this block may be compared to an irregular-shaped basin, from the sides of which a number of spurs project towards the centre.

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. On the western side, these spurs are comparatively low, Mount Barret and Mount Herbert, the highest points on them, being respectively 650ft. and 900ft. above the water-level at the mouth of the Brown River. The spurs running in from the north, dividing the Ronga from the Turakina, and the Turakina from the Rai, are throughout their whole length of a much greater altitude, the former terminating in a peak 1,550ft. in height, the latter obtaining a still greater elevation. So few points on the watershed being laid down, it is impossible to determine with anything like accuracy the total area; but, assuming the main features of the country to be correctly shown on the map furnished to me, I cannot estimate its area at less than 55,000 acres, of which about 10,000, or less than one-fifth, are really level. The whole district, from the level of the rivers to the summits of the highest peaks, is covered with bush. Looking to the road-system of this portion of the country, the Rai Valley occupies an important position, by means of lines crossing its watershed; the various reaches of the Pelorus Sound—such as Kaiuma, Nydia Bay, and Tawhitinui, as well as Croixelle's Harbour—can be connected with the main road, passing through the lower part of the valley, thus giving those now isolated places direct land-communication with the centres of population. Land of the Bai Valley. Dividing the land of the Rai Valley Block into hill and level, the latter may be again subdivided into —(1) Terraces, (2) low flats subject to occasional floods, (3) alluvial soil liable to be frequently flooded. Excepting the last-named subdivision, which is of very limited extent, the land is so very variable that I find it difficult to give more than a general idea of its quality. The hills surrounding the Rai Valley vary both in height and steepness, as already stated. Those coming in on the western side and from the watersheds on the Tinline and Wangamoa are comparatively low. The ridges separating the Ronga, Brown, Alfred, and Flat Valleys can all be cleared -and -grassed, but judging by the vegetation the soil is poor, the land being only suitable for sheep-pasture. -. Of the large block of hills showing in the Rai basin on the north, and among the spurs of which the Turakina and the western branches of the Upper Rai take their rise, a great portion must ever remain in a wild state, owing to its height and ruggedness, but generally on the lower portions of these hills the soil is good, often better than on the flats. Thus the eastern slopes of the Ronga Valley contrast favourably, not only with the western slopes, but with the terrace-land on that side and in the northern extremity of the valley. Along the Tunapai and the branches which drain the high country between the Pelorus Sound and the Rai, the soil on lower hill-slopes is good, the ground rising from the flats at a gentle incline and being very little broken by gullies. A marked exception to the generally good quality of the hill land on the eastern and northeastern sides of the Rai basin, as compared with that on the west, is found in the Turakina Valley, where both the hill-sides and flat land are of a very inferior nature. In like manner, there is an exception to the general character of the western hills found on the southern slopes of Mount Barret and Mount Herbert, which are decidedly better than the northern. Level Land. Though not the richest soil, the terrace is, owing to its extent, the most important subdivision of the level land of the Rai. At present the terraces form detached blocks along the base of the hills, lower land intervening, but at a former period the formation was continuous throughout the whole length and breadth of the district, forming a gently-inclined plane stretching from the furthest point of the small branch valleys, where level land is now found, to the mouth of the Rai, and out into the Pelorus, where remains of the formation can still be seen. Wherever the structure of the terraces can be observed they invariably consist of slightly waterworn fragments of rock imbedded in gravel and clay; but while thus generally uniform in structure they vary greatly on the surface, having in some places a good coating of soil, in others being covered with a mass of stone. In the upper portion of the Rai Valley, where a considerable area of the formation is still intact, the cause of the surface variation is readily perceived. Here, except in time of floods, the river-bed is dry, the water finding its way through the gravel, which is in places heaped up or spread out among the trees, there being no properly-defined channel. The water coming off the hills on either side, finding but little fall on the lower ground, spreads out irregularly, depositing sediment. In dry w 7eather the presence or absence of plants requiring much moisture mark the position of these overflows, even where there is a perceptible difference in the level of the land. From the mouth of the Rai, for about a mile and a half upwards, the terrace formation is worn down into round ridges, separated by deep gullies, the river having cut for itself a channel of considerable depth through the rocks. Excepting this portion of the valley, all the terrace-land can in time be brought under the plough, but I do not think any of it could be classed higher than third- or fourth-rate arable land, while much is of a very inferior quality. The unfiooded land of the Flat and Brown, the land along the western side of the Ronga and at its northern extremity, is of this inferior character. , On the eastern side of the Ronga, and generally throughout the main valley of the Rai and its upper branches, the terrace-land, like the hills, is of a better quality, but even here I passed, while exploring, over some of little value.

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Flats and Alluvial Ground. To the erosion of the terraces by the main river constantly altering its course the second and third subdivisions are due. From about two miles above the junction of the Tunapai to within a mile and a half of the mouth of the Rai, these flats and patches of alluvial land fringe the river on both sides, interrupted in places by spurs of hills and remnants of the terraces. Though the flats vary much in quality, they are everywhere superior to the terrace-ground; and not being so liable to floods as to endanger stock or fencing, which is the case with the lower alluvial ground, they form the most valuable portion of the land of the Rai Valley Block. On the western bank of the Rai, opposite the mouth of the Tunapai, as well as part of the Ronga, a considerable area of the flat land is more or less covered with stones; but I think they are merely superficial, the vegetation (a heavy growth of kahikatea) indicating a good soil. Before closing this sketch of the Rai land, I must mention that of the Alfred Valley. Its height above the Rai River would place this land in the terrace subdivision, but it differs entirely from that class of land in all other parts of the district, being more or less swampy throughout, and the soil apparently good, yet the land is almost everywhere covered with a miserable growth of stunted black birch (solandi), mostly too small even for fencing. Summary. Judging from the character of the land, which is at present being utilised in the adjoining districts, I estimate that of the 45,000 acres of hill land one-half, or upwards of 20,000 acres, will ultimately be brought into pasture. Of the three subdivisions of level land I estimate the area to be—Terrace, 6,000 acres; low flats, 3,000 acres ; alluvial, 1,000 acres. Bush and Timber of Bai. — General Character. On comparing the bush of the Pelorus Sound with that of the Pelorus Valley a number of trees, Shrubs, and other plants plentiful in the former are found to be scarce or entirely wanting in the latter. In the Rai a further diminution in the number of species occurs. The most striking feature of the Rai Bush is the complete absence of supplejacks, except at great elevations, and the comparative scarcity of tawa. The large trees of that species which occupy so much of the best land to the exclusion of other timber-trees in the Sound and Pelorus Valley being seldom found in the Rai. When the traverse survey of the Rai was made, a dense growth of karamu formed the underscrub, covering both flat land and hills. This the wild cattle have completely destroyed, and in its place are found the shrubs locally known as corkwood (Aristolelia racemosa) and pepper-tree (Drimysaxillaris). The open nature of the bush, consequent on the absence of large tawa, favouring the growth of the former. All the timber generally exported from the Pelorus grows in the Rai —namely, rimu, kahikatea, matai, totara, and miro; of this, rimu is by far the most plentiful. Generally, the trees are of a very large size, excepting the matai, which is not equal to that of the lower Pelorus ; the various kinds exceed the average of other parts of the district. In the Tunapai I measured kahikatea 19ft. 6in. and 21ft. in circumference, at 7ft. from the ground. The very large totaras are here, as in other places, hollow, one standing on the bank of the Rai I found to be 27ft. 6in. in girth. On Mr. Turner's clearing, at the mouth of the Ronga, numbers of large totaras had been felled. I found trees 4ft. and sft. in diameter at the butt perfectly sound. The greater part of the timber is in the eastern side of the basin, or eastward of a line following the course of the Rai from its mouth to its junction with the Ronga, and up the latter river to its head. The timber is even here very irregularly scattered, and being very difficult to accouut for its peculiar distribution. On the alluvial ground where, according to what is seen in other places, the greatest quantity of kahikatea might be expected, there are only a few short trees far apart, the land being covered with a dense growth of scrub, of which the tree-nettle is an unpleasant constituent. The heaviest patch of kahikatea is on the eastern side of the river, opposite the mouth of the Tunapai. This patch, about 150 acres in extent, would average about 50,000 superficial feet per acre. The land which has been previously referred to is occasionally overrun by the river, and flooded by a small stream coming from the hills at the back. Generally, on these flats the bush is of a mixed character, the greater portion of the totara being found on them. At Mount Turner, before alluded to, on about 40 acres of flat land cleared, not less than 800,000ft. have been destroyed. This consisted of rimu, kahikatea, matai, and totara, the kahikatea occupying the lower portion of the land, the other trees the dry ground. On the terrace-land the growth of the timber is generally very much lighter than on the flats, and consists principally of rimu, with patches of kahikatea where the drainage of the hills affords sufficient moisture; but it is on the hill-sides that the greatest quantity of rimu is to be found, following round the valleys and their branches. On the eastern side of the Rai there is a belt of timber ascending the hills in some places to an elevation of upward of I,oooft. As the hill-sides are for the most part little broken, there should be no difficulty in working off this timber. Although the bulk of the timber is found on the eastern side of the Rai basin, there are good patches on the western. The northern slopes of Mounts Barrett and Herbert are covered with pine timber to their summits, and in the lower part of the Brown Valley a good deal of the kahikatea is interspersed with the birch. Between the mouths of the Alfred and Flat Valleys some good timber also stands. 2—l. sb.

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Of those portions of terrace-land where rimu is absent, or is only sparingly found, there is a. considerable quantity of brown birch (Fagus fusca). This tree is also plentiful in parts of the hill land, intermingled with red birch (Fagus menziesii). Excluding those portions which I consider have not on them sufficient timber to pay for the construction of tramways necessary for its removal, there are about 8,500 acres of the level land of the Rai which may be regarded as good timber-country. To this, again, I would add 5,000 acres of hills. Owing to the peculiar configuration of the Rai Valley and its branches, and the flooded nature of a portion of the land, there are only certain lines where tramways for the removal of timber could with safety be laid. In estimating the various areas mentioned in this report I have been guided by the traverse survey made by the late T. Pickering, Esq., shown on maps of Tennyson and Wakamarina districts. As far as I am capable of judging, the survey has been extremely exact, the bends of the river and smaller streams, and other features of the country, being all faithfully laid down. Joseph Rutland, Ranger of Crown Lands.

APPENDIX D. Sir, — In accordance with the instructions received from the Crown Lands Department, Wellington, we have the honour to submit the following report (with explanatory plan) of the Wakamarina, Tennyson, and Heringa Survey District, embodying our views as the best means to adopt for promoting healthy bond fide settlement in the Upper Pelorus, Brown, Ronga, Tuna-kino, and Rai Valleys. Land recently withdrawn from Sale. These sections comprise all the unsold surveyed land on the eastern side of the Rai River, coloured light brown. The quality of the land varies considerably, the low-lying portion of the sections being very good alluvial soil, fit for agriculture, the remainder medium quality, good pasture land, but all heavily timbered—principally rimu, white-pine, and a little totara. Sections Nos. : 63 to 72, known as Rimu Gully, contain some millions of feet of that splendid timber. Brown River. This small valley on the western side of the Rai, coloured green, contains about 500 acres of land that will eventually be fit for agriculture, and 1,000 acres not too high country for carrying artificial grasses. This block is fairly well timbered, and medium quality. The road to Nelson ascends the hill on the north-west side of this stream to the Rai Saddle. Ronga Valley. This valley runs nearly due north from the Rai, extending about seven miles before rising to the saddle, which in the lowest part, is section 750ft. higher, but a good track can be graded into the Croixelle's Harbour. The Ronga contains about 2,000 acres, coloured yellow, and of fairly level land, mostly good soil, suitable for cultivation ; and 4,000 acres of low spurs and sloping ground, the highest back-line of survey being not more than 1,500ft. above the level of the sea, and all suitable for good grazing country when the bush is removed. The centre of the valley in places has only light bush, while other portions of the valley, specially those lying to the right-hand side going up, are heavily timbered with rimu, matai, white-pine, and totara. The banks of the stream are well defined. Tuna-kino Valley. This is a tributary of the Rai proper, and contains very little level land, but has nice gradual slopes towards the hills on both sides. The soil is rather inferior in quality, showing the only auriferous signs we noticed during our journey. The upper part of the valley is all birch country, and the lower portion of the survey block, containing 5,500 acres, as you will see on reference to the plan, coloured drab, includes a part of the Upper Rai Valley, which is first-class land, all heavily timbered with rimu, pine, and matai. Upper Rai Valley. This portion of the district shown on the plan, coloured pink, is twelve miles long, estimated to contain 3,600 acres of level land, the greater portion being good alluvial soil that will eventually be suitable for agriculture, and 3,400 acres of slopes and hill-sides, capable of carrying artificial grasses and becoming good pasture when the timber is removed. Parts of the low lands are flooded at times, but a small embankment here and there along the river-bank would prevent a good deal of this. The valley contains the most magnificent timber we have ever seen, especially towards the head of the trees, being from 70ft, to 100ft. high without a branch, and would yield from I,oooft. to 3,000ft. of timber each. We counted the trees in different places, and found from ten to forty good milling trees within a radius of three chains. Tracks. The track leading from Mr. C. Turner's through the Upper Rai Valley over to Harvey's, being in the Pelorus Sound, has just been completed, under the superintendence of Mr. Huddleston, and has been practically recognised as a great boon to the settlers, as shown by Mr. Archer providing two men during the whole work at his own expense, and we recommend Mr. Robertson, the surveyor, be instructed to lay off a road up the Ronga and over the saddle to the Croixelles before the money voted by Parliament is expended.

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Settlement. There can be no doubt a great number of intending settlers, both in Nelson, Wairau, and in Pelorus district are anxious to take up sections of this land; but we think it would be most unwise and a grievous waste to fell, burn, and destroy such a valuable asset belonging to the Crown, but, in the interests of those people, we would recommend the whole of the land referred to, in the Rai and adjoining valleys, be immediately surveyed in blocks of 100 acres to 200 acres each, giving the surveyors some discretionary powers in fixing their boundaries, so as to separate as far as possible the heavy- from the light-timbered sections, and then all the land with only light bush should be open for settlement at once, the remainder being apportioned into sawmilling areas of reasonable size, limiting the time for removal of heavy bush, and, as the timber is cut off, the land so cleared should be immediately advertised as open for selection. Tramway. Fourteen years ago the Government placed a sum of £14,000 on the estimates to construct a tram-line from Havelock into the Rai Valley. Unfortunately, this work was not proceeded with ; and now a private company have built a tramway from the Blackball Sawmill (as shown on the plan) nearly to the mouth of the Rai Valley; but, as the State still owns such a large area of land and valuable timber, we strongly recommend and urge the Government to make some arrangement with Messrs. Brownlee and Co., owners of the tramway, to purchase the same, if it can be acquired on reasonable terms; then to carry it up the Rai, and thus encourage sawmillers—who are always the pioneers of bush settlements—to commence operations. Summary. Mr. Robertson, the surveyor now at work, estimates there are in the valleys we have examined about 20,000 acres available for settlement, together with about 6,000 acres situated in the Rai Valley, part of which is sold but is still in its primitive states —with the exception of about 300 acres felled and grassed—so we may fairly assume and estimate there are 25,000 acres of most valuable bush land in the locality—lo,ooo in the Upper Pelorus, and 7,000 in the Wakamarina (bordered green in outline), all Crown lands, which, if utilised to the best advantage, would supply the tramway with haulage for many years. We say emphatically the timber is better than the land, and altogether, including valuable birch forests, we estimate it would yield 800,000,000ft. of marketable timber, which, calculated at only 6d. per 100ft., would realise £200,000; and the land would be more valuable for settlement after the large timber was removed. In conclusion, this is now the only forest left in the Marlborough District, and requires to be dealt with by a comprehensive and statesmanlike policy. We have no hesitation in saying that our plan, if adopted, would bring in by way of tithes and haulage a large sum in profit to the colony; would provide constant labour for a great number of workmen for many years ; would assist those settlers who are already in the neighbourhood, since the sawmill hands would create an admirable market for all their produce; and, in addition, our plan would result in the employment of a large tonnage in the transport of the sawn timber; and eventually the line itself would doubtless form part of a connecting railway between Nelson and Picton. We have, &c, C. H. Mills. Hon. J. McKenzie, Minister of Lands, Wellington. A. P. Seymour.

APPENDIX E. Memorandum for the Surveyor-General, Wellington. Department of Lands and Survey, District Office, Blenheim, 26th July, 1894. Reports on Timber. As directed by your memorandum of 2nd June, No 14662, I have the honour to forward herewith a report, with illustrative plans, upon the Rai and tributary valleys, giving the estimated quantity of rimu, matai, white-pine, and totara, suitable for milling within that district. The estimate is based upon actual measurement, as nearly as it can be obtained, of timber growing on a certain area —namely, 118 acres, being the western part of Section 39 of the Ronga Valley Special-settlement. As the section was conveniently situated for measurement, being bounded on two sides by a surveyed road and a river, I had only to define two other sides, and then to measure every rimu, matai, white-pine, and totara within this area. This was done by measuring the lower girth at about 4ft. from the ground, making a deduction for the bark, and. estimating the length of each log suitable for milling. And, as the work was done systematically, and every tree marked, there was little risk of either repetition or omission. All the measured girths had to be reduced to the " girth "at the smaller end. This was done by measuring a felled tree, and estimating the reduction to be made at different lengths; after this, the quantities were taken out by the table which has been in use in this district for years, known as " millers' measurement," and which, no doubt, gives the minimum amount of superficial feet. The result was as follows :— Rimu (red-pine) ... 1,023 trees —1,030,600 superficial feet, or 1,007ft. per tree. Matai (black-pine) ... 654 „ 312,553 „ 478ft. Kahikatea (white-pine)... 821 „ 759,346 „ 925ft. Totara ... ... 85 „ 142,896 „ 1,682ft.

2,583 2,245,395 I found, after inspecting other parts of the valley, that the portion of the section I had measured was much more heavily timbered than the average of Crown lands. In fact, that if the

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quantity measured was spread over the whole area of the section—2os acres—it would give a much truer average for the whole district. There was no doubt in my mind that the totara measured very much exceeded the average, and that if it were taken at one-fourth it would be about right. This would give a result per acre as follows—that is, dividing the quantity measured by 205. Rimu ... ... ... ... ... 5,027 superficial feet per acre. Matai ... ... ... ... ... 1,524 White-pine ... ... ... ... 3,700 Totara ... ... ... ... ... 162 10,413 Estimating the area covered with convertible timber at 16,000 acres, we have — Rimu ... ... ... ... ... 80,432,000 superficial feet. Matai ... ... ... ... ... 24,384,000 White-pine ... ... ... ... 59,200,000 Totara... ... ... ... ... 2,592,000 166,608,000 at 6d. per 100ft. = £41,652. I have entered somewhat into details in case it might be required to know by what formula the estimate has been obtained, and the average contents per tree may be useful for future estimates. The area of flat land in each valley is deduced from a survey made by Mr. Pickering about 1873, and should be fairly accurate. For the information in the report relative to the cost of tramway, &c, I am indebted to Mr. W. H. Smith, Messrs. Brownlee and Co.'s manager. It will be seen that at the head of the Ronga and Rai Valleys, the boundary of land available for settlement encroaches considerably on the reserve for climatic purposes, but since the latter was unfortunately proclaimed in the absence of reliable topographical data, its boundaries will have to be amended. Sidney Weetman, "'. Chief Surveyor.

APPENDIX F. Marlborough. Beport on Bai Valley District. Sir, — Department of Lands and Survey, Blenheim, 26th July, 1894. As directed by your memorandum of 2nd June, No. 14662, I have the honour to report that I inspected the Rai Valley during that month, spending eight days there, to ascertain from actual measurement, as accurately as it is possible to do so, the quantity of convertible timber, including rimu (red-pine), matai (black-pinej, kahikatea (white-pine), and totara, growing on an average acre of Crown land, on which to base an estimate of the total quantity of accessible timber growing on the flat and hill-sides, commencing at the junction of the Pelorus and Rai Rivers, and extending to the head of the Opouri or Upper Rai, including the smaller valleys of the Brown, Ronga, Tunakino, and Tunapai. Timber. — I estimate that the area within which the milling-timber is confined, and fairly accessible —say up to a height of 300ft. above the valleys—amounts, in round numbers, to 16,000 acres (shown by a red line on the attached map), and the quantity of timber per acre is as follows :—■ Rimu ... ... ... ... ... 5,027 superficial feet per acre. Matai ... ... ... ... ... 1,524 White-pine ... ... ... ... 3,700 Totara ... ... ... ... ... 162 Total ... ... ... ... 10,413 This would give over the 16,000 acres a total as follows: — Rimu ... ... 80,432,000 superficial feet. Matai ... ... 24,384,000 White-pine ... ... 59,200,000 Totara ... ... 2,592,000

166,608,000superficial feet at 6d.per 100ft.=£41,652. As the above estimate is based on what is known as miller's measurement, it may safely be taken as a minimum quantity. It will be seen from the above that the quantity of rimu is far in excess of any of the other timbers, white-pine coming next, matai third, and totara last, as might be expected. As far as my inspection went, the heaviest timber is to be found up Rimu Gully, the Ronga Valley, and the head of the Opouri or Upper Rai, beyond the Tunapai Stream. As to the best means of removing the timber, Messrs. Brownlee and Co.'s tramway, which is practically a railway, extends from the mill at Blackball up the Pelorus Valley for a distance of about nine miles, i.e., nearly up to the junction of the Pelorus and Rai Rivers. This line was completed about 1887, at a total cost of about £21,809, or £2,243 per mile, although I am informed that the last three miles cost only £1,000 a mile, the first six miles being much more expensive on account of bridges, cuttings, and embankments. The total cost mentioned includes freehold o right-of-way.

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Another contract has recently been let, at £3 15s. per chain, for about two miles. As regards its extension northwards, as will be seen from the plan, the line could be constructed over the flats for nearly the whole distance to the head of the Rai, a length of about fifteen miles from the present terminus. For about three miles of this distance it would probably have to be taken through private land. No engineering difficulties of any magnitude would have to be encountered, and the cost of the line to the head of the Rai Valley, constructed as it is at present, should not exceed £15,000. Should it be decided to remove the timber by this means, it is a question whether the ordinary wooden tramway, from the junction of the Rai and Ronga Rivers, branching northwards and eastwards, would not answer the purpose, in place of the much more expensive railway. Land.- —As regards the land ■ suitable for settlement, I estimate there are about 24,000 acres (within blue-shaded boundaries on plan), made up as follows: — Flat Land. Hills. Acres. Acres. Lower Rai Valley ... ... ... ... ... 1,220 2,180 Brown Valley ... ... ... ... ... 460 1,340 Ronga ... ... ... ... ... ... 1,860 3,340 Tunakino ... ... ... .., ... ... 320 2,380 Upper Rai ... ... ... ... ... ... 3,640 7,260 7,500 16,500 Deducting for reserves and roads 500 acres from the flat land would leave 7,000 acres, a large proportion of which may be looked upon as first-class : say, 2,000 acres worth 155., and 5,000 acres worth £1 per acre cash value; this would amount to £6,500. Likewise deducting for reserves and roads 1,200 acres from the hilly land would leave 15,300 acres, worth at least 10s. an acre cash-value. This will amount to £7,650; making a total of £14,150, which, if let on lease in perpetuity will bring in an annual rental of £566. From this amount "thirds" to local bodies and cost of administration would have to be deducted. Summary. In dealing with the timber, I think I have estimated it at its minimum quantity and value, fixing the limit at which it is accessible at about 15 chains from the foot of the hills, which means an altitude of about 300ft. to 400ft. above the flats. ' On the other hand, the boundary of the land suitable for settlement may, in some places, be fixed too high, but it is impossible to be very accurate without actual survey. I think that, as a rule, for this district, land exceeding I,oooft.' above sea-level should not be disposed of, for it must be borne in mind that the destruction of a large stretch of forest even up to that height, flanked as the valleys are by steep hills, must sooner or later result in land-slips, the drying up of the smaller streams, and exposure to the full force of high winds. However desirable it may be to open up this district for ordinary settlement —and no doubt it is very desirable —I think, considering that this is practically the only large extent of convertible forest left in the province, its excellent quality and its proximity to the Pelorus Sound, it would be more than unwise to fell and burn it. No doubt the removal of the timber for milling purposes will retard settlement on the land more or less, yet, if some practical scheme can be devised by which certain areas could be dealt with by sawmillers within a reasonable time, so that the land could be occupied as soon afterwards as possible, this should be done. In reporting on the timber, it will be noticed that I have not mentioned birch, because it is not as a rule utilised by the sawmiller, and it is therefore difficult to arrive at an estimate of its value; but doubtless a large quantity of this timber could be utilised. In drawing a comparison between the estimated revenue received from royalty on timber with that which would be received from the land, it must be borne in mind that in both cases it would have to be spread over a number of years, say ten at the least, which would give an annual return in royalty of about £4,165, and from the land of about £57. Should it be decided to withdraw this land from the State forest, there is no reason why the sections surveyed up to the Tunakino Valley, which are outside the timber-line, should not be opened for sale forthwith. I think also that in dealing with this question the claims of the Messrs. Turner should be favourably considered. They are undoubtedly the pioneer settlers of the Upper Rai, and as they have been hemmed in for years by the State forest, and consequently unable to acquire more land, I think that at least the restriction should be withdrawn from a certain area adjoining their homesteads, to enable them to take up more land under clause 114 of the Land Act. I have, &c, The Surveyor-General, Wellington. Sidney Weetman, Chief Surveyor. Approximate Cost of Paper.— Preparation, not given; printing (1,375 copies), £8 18s.

Authority : Samuel Costalli, Government Printer, Wellington.—lB94.

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