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basis; the warmest acknowledgements are therefore due to Mr. McKerrow and his assistants for their accomplishment of this valuable service. The maps of the geodesical meridional circuits annexed will show the whole scheme of these operations. The settlement or sectional portion of the Survey Department being conducted under the immediate supervision of the chief surveyors, their reports will be found in Appendix No. 2 to 11. The remarks of these gentlemen are invaluable, inasmuch as on them rests the burden of actually and immediately dealing with the problems of locating the settlers, land purchasers, and immigrants on their holdings. Their remarks on many of the practical questions, which interest the Government and people, bear the greatest weight, as by their experience they are enabled to competently judge and advise. As the responsibilities accepted by Messrs. Smith and Baker, in their charge of the Auckland and Canterbury districts, were more than ordinarily heavy, it is due to them to bring to your notice the efficient, and highly satisfactory manner, in which they have met and overcome their difficulties. The burden on each has been of a different nature, yet the charge has been so equal, that in soliciting the approval of the Government of their labours, both must be mentioned simultaneously. On reference to the General Report on the surveys of New Zealand, dated 7th December, 1876, it, will be seen that Auckland district, was, in its Crown Lands branch, burdened with 2,500,000 acres, and in its Native Lands branch 7,502,966 acres of unproven sectional survey, and though in the Native Lands branch it possessed 9,647,390 acres of excellent major triangulation, yet it had a mere nominal quantity of that process—minor triangulation—which immediately controls, and is essential to sectional survey (60,000 acres). Since the date of his appointment, Mr. Smith has assiduously given his energies to the introduction of the Governmental new methods of survey and office record, so that his department is now conducted in accordance therewith, all his actual surveys being placed on true meridian, and his plans arranged uniformly for easy and intelligible reference. As Deputy Inspector of Native Surveys, in proximity to the Native Lands Court, Mr. Smith has had extra responsibility placed on him, and which he has undertaken in a most hearty and accommodating spirit. On the same date as above quoted, 7th December, 1876, Canterbury district was burdened with 2,014,696 acres of unproven sectional survey, 2,008,000 acres of unproven minor triangulation, possessing only 992,000 of the latter reliable; but in addition to this the claims for immediate survey of land purchases were unprecedented in the colony. Thus in October, 1877, the arrears amounted to 718,880 acres; in June, 1878, to 765,934 acres; in October, 1878, to 890,000 acres, which in June, 1879, are reduced to 552,512 acres. In Mr. Baker's subsequent report in order to include certain public reserves, this figure is increased to 600,819 acres; but as all the preparatory processes now cover the ground, the coming season will bring the arrears down to very workable and low limits. While I mention specially these two chief surveyors, I must also record the value I set on the cordial co-operation of all other officers of the same standing. Through their exertions the system ordered by the Government is now in full operation in all parts of the colony. It will b« seen by their reports that the department is keeping well tip with the public demand on its services. At the Head Office, Wellington, Mr. Alexander Barron, has, by his attention and thoughtfulness, given most hearty and efficient help in conducting the routine of duty, in the construction of general, district, and county maps, in the arrangement of records, in calculations, examination of proof maps, lithographs, or photo-lithographs, in the compilation of returns, and otherwise in promoting the adaptation of the Government system to the wants of the public. In the measures for the coming season I propose the following:—The actual expenditure of last season was £148,984 os. Id., which is, however, brought down by refunds, payments on account of work done, and other credits to £143,958 16s. 4d, of which £19,848 Is. Id. has been expended in arrear surveys in Canterbury and Hawke's Bay, and £2211 9s. 7d., on the photo-lithographic establishment. What is proposed for this coming season is £151,906 ; but of this £132,934 only will come out of revenue, £18,971 being provided for out of the funds retained for arrears of surveys in Canterbury and Hawke's Bay. The proposed expenditure also includes £2,790, the cost of the lithographic establishment, £2,000 of which being spent in the work of other departments should be credited to the Survey Department. This brings the literal expenditure down to £130,560. The sectional work in hand, which most interests settlers, is by the the last monthly returns, as follows :— Auckland—Crown Lands, 80,535 acres; Native Lands, 598,800. Taranaki—Crown Lands, 16,900; Native Lands, 70,000. Hawke's Bay—Crown Lands, 120,000; Native Land, 60,000. WellingtonCrown Lands, 157,000; Native Lands, 349,000. Nelson—Crown Lands, 130,434. Marlborough— Crown Lands, 330. Canterbury—Crown Lands, 554,512. Westland —Crown Lands, 11,900. Otago— Crown Lands, 53,529. Southland—Crown Lands, 108,933. Appendix No. 14, shows a money estimate of the work of the department devoted to several branches of the public service. Settlement survey, including Crown and Native Lands, will be seen to include the largest portion, but the Land Transfer Office involves more responsibility than is shown in the figures. The cost of the surveys for the Land Transfer Office does not come into our returns, as they are executed by private authorised surveyors at the expense of the land owners. In so far as supervision and office record, however, the labour involved is the same as in settlement survey, and this will increase annually, till in due time it becomes the most important. In this view, and considering the responsibilities that Government take on themselves in relation to land titles registered under the Land Transfer Act, I have directed, and yet propose to direct as opportunity occurs, officers in the several districts to triangulate and topographically survey all those areas covered by unproved sectional work, of which, when first taking office, I found 14,375,662 acres in the colony (General Report, 7th December, 1876). By this means it is hoped, that without sensible burden to the public revenue, we will be able gradually to reconstruct the doubtful on the present recognised system, and thus amalgamate old work with the new. By so doing the danger to Government in guaranteeing titles will not only be greatly decreased in the meantime, but will be ultimately got rid of; i.e. in as far as human effort and sound practice can do so. As Mr. McKerrow has reported the standard operations to be complete for the time being, it here