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The next drawback was the occurrence of three such terribly bad seasons running. I put in a statement which I have compiled, showing the state of the weather for the last four years. Then, contrary to all expectation, nothing occurred in the district to give the settlement a start ; and as there wero prosperous seasons in other parts of the colony, employers of labor could not be induced to start the industries of sawing timber, or working limestone, &c. The want of a jetty effectually prevented these industries from being developed ; the difficulties are great. Application has beeu made over and over again for the construction of a jetty, but the necessary authority has never been obtained. Another great difficulty was the constant attacks upon the settlement—misstatements persistently repeated, so as to gain credit in the end ; but there were a number of persons who opposed the settlement at Jackson's Bay because it could not possibly do much good to either Hokitika or Greymouth. The effect of this has been to prevent people at a distance from seriously considering the question of investing money at the settlemeut. Perhaps the greatest mistake was the Government commencing the business of storekeeping, which was the cause of much trouble at the settlement. At the time great difficulty was found in inducing any one to start a store at the Bay. Overtures were made to several people ; but it would have been better to have paid a subsidy, rather than for the Government to take the storo itself. Another mistake was that the settlers should only have been located at the Arawata aud Okuru, instead of at four different localities, namely, Arawata, Okuru, Waiatoto, aud Smoothwater. The blame that such has not been done rests entirely with the General Government. We were led to expect the arrival of 250 families, equal to 1,000 souls, which could not have been located at the two rivers alone, and so preparations for settlement wero made at the other rivers also, and the arrivals were allowed to settle wherever they liked. Instead of 250 families, only about eighty were sent down. If we could have anticipated this, we would not have scattered these immigrants. A third mistake was not building a jetty immediately. It would have developed the one safe industry at once. All the works proposed had to be submitted for approval to the General Government. A jetty was included in the schedule of works, but never authorized. The Provincial Government wished for a jetty. The principal industries should have been timber, sandstone, freestone, and the burning of lime; but these were paralyzed by the want of the jetty. The freestone is at Smoothwater Bay, limestone at Jackson's Head, aud sandstone at Ocean Beach.

Monday, 7th April, 1879. Henry Polson sworn and examined. I live at Kanieri. lam a gentleman. In 1875 I went in the " Waipara "to the Paringa. I gave a cheque to the captain of the " Waipara " for my fare to the Paringa on the 14th of October, 1875. There was a failure of the potato crop reported by the papers, and spoken of by the general public ; I mean the crop was reported to have failed at Jackson's Bay. We went down by stress of weather outside the Bay, and ran back to the Okuru and remained there eight days, aud then returned to the Paringa Eiver. I heard that the potatoes were bought at Pollock aud Bevan's auction mart, at Is. 6d. per bag, before I left here. Before October, 1876, it was commonly spoken of here that the potatoes had been bought there —that was before October, 1875, to the best of my belief. I feel sure I heard it here before I visited the Okuru. I came back to Hokitika about Christmas Eve, the 24th of December following. I was away all this time. Some time after that I saw in the newspapers that Mr. Todd was commissioned to buy seed potatoes and other provisions for the Jackson's Bay Settlement, in the beginning of 1876. I have read Mr. Aitken's statement in the newspapers. Ido not dispute the facts of Mr. Todd's purchase of potatoes in 1876, which has been given in evidence ; but I had heard before this of the purchase of bad potatoes. I think Mr. Foster could give evidence on the point, I was Inspector of Government Works at the time. lam sure I first heard of the potatoes being bought at Pollock and Bevau's store in the year 1875, at Is. 6d. per bag. I saw comments ou the subject in the West Coast Times, but Ido not remember that the price w ras referred to in 1875. I have also heard tho price mentioned by the public on the wharf. I asked the captain of the " Waipara " if the bad potatoes which had proved a failure iv Jackson's Bay were damaged on his vessel (meaning the "Waipara"). He said not on his vessel. I heard persons at Okuru saying that the potato crop had failed. They did not mention the bad weather. Joe Collyer was one who mentioned the subject, and said it was a bad job. He said it was through the bad potatoes for seed that the crop failed. The cause was attributed to its being bad seed sent down. I cannot say that Mr. Collyer said the potatoes sent down were bad, but he said the seed was bad. Ido not know personally where the potatoes were bought in 1875. I heard that, when the potatoes were bought at Is. Gd. iv 1875, it was Is. for the bag and 6d. for the potatoes. I heard this in Hokitika, before I went down to the Paringa. I saw reports of it in tho papers before I went down to Paringa. John Foster sworn and examined. I remember Mr. Poison writing to me about some rotten potatoes sent down to Jackson's Bay. I was living at Okarito. I think the letter was dated in 1876. I think it was in the summer season. It was merely a reference to it, remarking that it was not right to send such stuff to an isolated place like Jackson's Bay. The letters from Mr, Poison came from the Kanieri. I think they are destroyed. I cannot fix any date. I remember it being mentioned that the potatoes were on the wharf waiting to be sent to Jackson's Bay, or something to that effect. I gathered from the letter that the potatoes were lying on the wharf to be sent to Jackson's Bay, and that they were not fit for human food, and it was a disgrace to send such stuff. As far as I can remember I left Okarito about ten days ago. Mr. Poison's letter was dated from Kanieri. Ido not remember that Mr. Poison referred in his letter to going to Okuru. AVilliam Dunbar Banks sworn and examined. lam the Town Clerk of Hokitika. I remember hearing some talk some years ago about some potatoes on the wharf, but Ido not remember anything coining before the Council on the subject. I might find it among the Council papers. I can fiud no record in the minutes of the Corporation, or the

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