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1.—9.

Mr. Naden, Cattle Inspector, attended and was examined. Mr. Naden states :He does not consider the disease infectious. It is no doubt hereditary, and is propagated according as the cattle propagate. He further states, it is neither infectious nor contagious. It was his wish to have the question set at rest by placing some diseased cattle in the same paddock with clean stock, to see whether the disease spread to the clean cattle. This suggestion has not yet been carried out. The stock in this district (Kaikoura) is inferior in breed, and no fresh stock has been imported ; the cattle, consequently, are in a very poor condition. The greater number of the owners of cattle, if compensated, would be glad to have their stock destroyed. He (Mr. Naden) would suggest thar the stock should be-valued and the owners paid at the rate of one-third of such valuation. He further thinks that it would not pay to boil down the carcases. His recommendation with reference to the destruction of the hides of diseased cattle was of a general character where infectious disease existed. He did not think that in this case this treatment would be necessary. He is of tho opinion that the cost of the compensation for and destruction of the cattle in this district would not exceed between two and three thousand pounds. He states that, after valuing say 300 or 400 of the more valuable class of stock, the remainder, when valued, would represent but a small sum. Resolved, That an Interim Eeport be brought up in the House by the Chairman. (Vide Interim Eeport, p. 1.) The Committee then adjourned.

Tuesday, Ist August, 187 G. The Committee met pursuant to notice. Pbesent: Mr. Baigent, Mr. Eeid, Mr. Cox, Mr. ltolleston, Mr. Larnaeh, Mr. Seymour. Mr. Murray, Minutes of previous meeting read and confirmed. Mr. Wm. Smith attended and was examined. Mr. Wm. Smith states: He is a member and chairman of the Local Cattle Board at Kaikoura. He was not aware of the nature of his examination before this Committee, except by assumption. He had asked the question, but it had not been answered; therefore he was not fully prepared on the subject. Cattle owners were required by advertisement to send returns to Mr. Naden, the Inspector, and not to the Cattle Board. Mr. Naden, therefore, will be the best authority as to numbers. He (Mr. Smith) cannot state accurately, but can only approximate the number of cattle in the proscribed district at fifteen hundred (1,500). There are large numbers of wild cattle in the bush, but these are included in the fifteen hundred. A Mr. Gibson, in this district, alone owns some five hundred head of cattle. This lot of cattle are very nearly distinct from those affected, but the owner is willing to subject them to any test that might be thought necessary. From where these cattle are running, there is an interval of some twenty miles of rough country between it and the land where the infected stock are depasturing. Some Maori cattle, however, from the district where disease was known to exist may have strayed and come in contact with Mr. Gibson's cattle. To effect the destruction of the cattle, he thinks it very necessary that the settlers should co-operate with the Government. He thinks some of the settlers would be inclined to conceal their better class of stock, unless some stringent measures were taken to prevent them. The general opinion is, that the original disease has entirely died out; and the opinion is (in the district), that the existing disease differs from the original, and has resulted from the settlers having inoculated most of their healthy cattle in the district with the disease, with a view to prevent their taking the infection or contagion. Some even say the disease is attributable to poverty and undue exposure. He thinks there is no doubt that the disease teas infectious, but that it has not been so for some considerable time. It is generally considered in the district that the disease was brought into the country by some cattle imported from New South Wales by Mr. Bullen. It was after this date (1868) that the disease spread in the district. There were two or three shiploads imported at that time —in all, about 400 head of cattle. The value of cattle in this district varies, and sales, except of an occasional beast, are unusual. He thinks they would not be sold for a less price than that existing in other districts. The deaths in this district are in a very small percentage as compared with other districts. The stock are poor as a rule, not from disease, but from scarcity of feed, owing to the settlers going in for sheep, and enclosing the land for agricultural purposes. He considers the disease that existed in the district, like cholera and other epidemic diseases has died out. Is not aware that any beasts have died from it or any other disease lately. He thinks the disease existing of late is not infectious nor contagious, but he cannot say whether it is hereditary or not. As regards destruction, the first step would be to clear the cattle out of the bush ; and the way to do that would be to engage persons in and with a knowledge of the locality to hunt out as many as possible, and shoot down the remainder. He thinks that persons in the district could be got to do this, but does not think the Cattle Board would undertake the destruction, but will ascertain. The general opinion of the people in the district is, that the full market value should be paid for all stock destroyed. The loss the settlers have suffered from their district being closed for so long a time, should beconsidered ample sacrifice on their parts. The people in the district would not like to replace their stock, when destroyed, from immediately outside the boundaries of the closed district, but would prefer to get them from a distance, as some think that the disease may also be outside the proclaimed boundaries. He would recommend, that if the Government destroy the stock, that the owners should have the carcases to utilize as they might think fit, and perhaps thereby reduce the compensation. He does not think the result of a public meeting to consider this matter would be in