O—3a,

6

Both descriptions of tenure to be subject to a condition that the lessee on application within a reasonable time, will grant to his sub-tenant a renewed lease for a proportionate term, at a rent increased by the amount of the increased rent of the original lease. The tenant-in-chief to have the pre-emptive right to the renewal, and, failing his acceptance, the second tenant to have the next right, conditionally that the improvements made at the expense of the tenant-in-chief—or by the sub-tenant in pursuance of any arrangement on that behalf—should be paid for at a price to be fixed by impartial assessment. The same rule to apply to the case of other tenants, until each had exercised their right of choice. In cases where the sub-tenant has made the improvements, and does not secure a renewal of hia lease, the person coming into possession to pay for the value of the improvements made by such tenant, provided no allowance was made in the conditions of the lease. In that case, the value of the improvements should be paid to the person beneficially entitled. The chief object in letting these lands being to secure a present income for the persons beneficially interested, rather than a prospective advantage, it follows, as a matter of course, that the tenant in occupation at the expiration of the subsisting term —in cases where an equitable rent has been paid over the whole term —should, in event of not securing an extension of his lease, be entitled to the value of the improvements from the incoming tenant, provided such improvements have not been made in pursuance with some arrangement or obligation in that behalf. In the case of agricultural holdings, the outgoing tenant's interest in improvements is protected by the Imperial statute (14 and 15 Vict. c. 25) in force in the colony. It will no doubt be admitted that one of the main objects to secure, with a view to beneficial occupation, is to make the title to land as simple as possible, and its transfer easy; by these means the value of all landed property would be prodigiously increased. For the sake of uniformity, and in order to facilitate the preparation, as well as reduce the expense of executing the necessary leases for the occupation of the Native reserves, it would be advantageous in the interests of the tenants if a printed form of lease containing the usual covenants was prepared for use, with sufficient blanks for names and descriptions, and for the addition of special clauses if necessary.

It will be found that the more liberal and simple the stipulations contained in the lease, the better will they answer the purpose, and advance the interests of all concerned, besides greatly enhancing the security the tenant has to offer for the use of money lent to him for the improvement of his leasehold. Amongst other matters, it would be advisable also to provide, in regard to the assessment of rent, that, should the tenant feel the amount fixed to be oppressive, he should have the option of referring the matter to the arbitrament of two impartial persons, to be chosen in the usual way, the cost of such appraisement to be borne by the; applicant. This would finally prevent an oppressive rent being fixed, and preclude the possibility of tbe officer having charge of the estate being the sole judge, in ease of any diversity or difference occurring between himself and the tenant. One of the grievances complained of against absenteeism is that the agents too often have no good feeling towards tenants, but strive only to raise as large sums as possible for their principals, without regard to consequences. I have, &c, A_.ex_j.deb Mackay, The Under Secretary, Native Department, Wellington. Native Commissioner.

By Authority : Geobge Diesbuey, Government Printer, Wellington.—lB76. Price 3d.]