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Acton renewed his application on the llth November, 186S, and stated that he had made considerable improvements, of which a survey had been made. The Board again declined, on the ground of the application being within a gold field. Mr. Warden Wood states that whilst in Dunedin, in October or November, 1868, he stated in conversation, either to Mr. Duncan, then a member of the Government, or to Mr. Hughes, then a member of the Waste Land Board, that he should not recommend the sale of the 50 acres, as it might prove to be auriferous. We cannot find, however, that the possibly auriferous nature of the ground was ever considered by the Board. The death of Mr. John Hughes has prevented us from obtaining any information from this gentleman, which might have proved of a valuable character ; he having whilst a member of tho Waste Land Board had special charge of all matters connected with the gold fields. Acton does not appear to have renewed his application after llth November, 1868. It seems that his circumstances having become involved, he mortgaged his interests in the application, together with other properties, to R. S. Dods. These were in March, 1869, sold by the mortgagee, and went into the hands of several different purchasers, McDonald becoming eventually the purchaser of the surface rights and improvements ou the 50 acres. McDonald about February, 1871, sold his interest in the 50 acres to Mr. 11. Bastings for the sum of £900, who thus at this date became possessed of all the surface interests in the block, including an hotel, store, stable, punts, &c. ; whilst at the same time he had along with one Simson all the water rights running through the ground, and the immediately adjoining mining claim. This being the position of matters, it seems to have occurred to McDonald, that having sold all his interests to Bastings, if he could obtain the freehold of the 50 acres, the value of the property would be considerably enhanced ; and some short time after the sale he made a proposal to Bastings, asking him what sum he would give him if he could get him the freehold. Bastings ultimately agreed to pay him the sum of £200 in the event of his doing so. Accordingly, upon the 4th May, 1871, McDonald applied to the Waste Land Board to have section No. 1, Wendon District, agreed to be sold to William Acton, granted to him as transferrec, and the application was granted subject to the transfers being correct. It appears that McDonald appeared personally before the Board, but as far as we can learn made no representation in connection with his application beyond the statement contained in it. The Board afterwards appears to have been satisfied that the transfer of Acton's interest to McDonald had been duly made, and eventually completed the matter. McDonald immediately conveyed the land to Bastings, as had been agreed upon. Nearly three years had elapsed since Acton's last application in connection with this land had been before the Board, and its recollection of the manner in which that application had been dealt with does not seem to have caused it to notice that McDonald had made a misstatement in his application, as to the land having been agreed to be sold to Acton. We draw attention to Mr. Thomson's evidence on this point. No report upon the ground seems to have been obtained up to this time, not does the fact of its being possibly auriferous seem to have ever come under the consideration of the Board. The explanation of the grounds of the Board's decision upon McDonald's application, as obtained by us from the present Chief Commissioner, who also held this position when the application came before it, is, that the Board had since the date of Acton's last application come to a different opinion as to its power of selling land within a gold field, and, when McDonald's application was considered, believed that it had the power of dealing with such land under clauses 83 and 123 of " The Otago Waste Lands Act, 1866." That holding that opinion, and believing that Acton's applications had been declined entirely upon the ground of the Board not having the power to sell, although otherwise favourable to the sale, on the ground of the extensive improvement which Acton had put upon the land, and the general desirability of securing settlement on the gold field, the Board, knowing of no objection, did not hesitate, but granted McDonald's application. It appears, as a matter of practice, that tho Waste Land Board does not call for reports upon applications to purchase land within a gold field, but that it has been the practice that such reports, when required, have been obtained by the Gold Fields Secretary as a matter lying within his department, and in the event of his making no objection to such sale, the Board takes for granted there are none. That the Chief Commissioner's duty has been confined to directing the Board to tho legality or otherwise of any matter before it, leaving the question of policy or propriety entirely to the Government, as represented at that Board, by whose recommendations it has been entirely guided. That carrying out this practice, in considering McDonald's application, no objection coming from the Gold Fields Secretary or other member of the Government, the Board believing that none existed, and that it had legally the power to sell, sold the land. From our inspection of the ground, and from statements by Messrs. Bastings and Simson, wo find that since the sale of the freehold of the 50 acres they have gone to very considerable outlay in mining upon it. Mr. Bastings states that lie has up to the present time expended a large sum beyond the value of any gold obtained from the ground. There are indications of a lead of gold running through the ground. We come to the following conclusions: —■ That the 50 acres of land originally applied for by Acton, and eventually sold to McDonald, is undoubtedly auriferous. That Acton's application, after having been before the Board on several occasions, was finally refused. That all hough there were at the time of McDonald's application no gold workings actually upon the ground, there had been for years, and were at the time, workings in the immediate viciuiiy ; and in one claim a great deal of gold had been taken close to the boundary of the 50 acres. That this being the ease when the application to purchase was made, an oversight occurred, and a departure from the usual practice, in not calling upon the Warden for a report