G.-9

1883. NEW ZEALAND.

NATIVE LANDS AFFECTED BY "THE THERMALSPRINGS DISTRICTS ACT, 1881" (CORRESPONDENCE RELATING TO).

Return to an Order of the House of Representatives, dated 10th July, 1883. Ordered, " That there bo laid on the table copies of all correspondence between the Government and the Thames Valley-Rotorua Railway Company in reference to certain Native lands affected by the operation of ' The ThermalSprings Districts Act, 1881.' " — (Mr. Dargaville.)

No. 1. The Secretary of the Thames Valley and Rotorua "Railway Company (Limited) to the Hon. the Minister of Lands. Sir, — Auckland, 20th November, 1882. I have the honour, by order of the directors of the Thames Valley and Rotorua Railway Company (Limited), to communicate with the Government with the view of obtaining their assistance and co-operation in carrying out this company's undertaking. You are aware that the greater portion of the proposed line passes through territory belonging to Europeans. Parliament has made provision for aiding the formation of railways under ordinary circumstances of this description by rendering land liable to rates, and by enabling the Government to make cessions of Crown lands by way of endowment. The exercise of this power has been deemed by the directors sufficiently satisfactory to justify them in proceeding vigorously with their undertaking so far as their line passes over land the Native title to which has been extinguished. But for nearly twenty miles at the Rotorua end of the proposed railway the line, which has now been definitely settled, traverses land entirely the property of aboriginal natives, situate within the district proclaimed to be under the operation of " The Thermal-Springs Districts Act, 1881." With respect to this portion of the undertaking the directors will obtain no assistance by way of rates on adjoining landowners, nor can they expect from the Government grants of land in aid of sufficient importance to justify them (even if they could raise the necessary funds) in proceeding with its formation. The country at this end of the line is entirely destitute of inhabitants, and the directors can anticipate no traffic of any importance except the through traffic from the Town of Rotorua; but the question whether this portion of the line would pay or not need not be raised, for the directors feel that, in the absence of any security to offer to the public beyond the ordinary profits of the railway, they would be unable to raise the necessary funds, as appeal to the moneymarket would be fruitless. The directors feel that they need not enlarge upon the great advantage—in fact, the absolute necessity—of a railway for the prosperous existence of the new township of Rotorua; nor need they refer to the certainty of its rapid growth when once such a mode of communication shall have been established. .. The directors have reason to believe that the Native owners of the lands near Rotorua would willingly assist the undertaking by making grants of land in aid of sufficient importance to form a valuahle security and facilitate the floating of their debentures. Whether these endowments will take the form of absolute grants, or will be arranged on the basis of a partnership transaction, is a question of detail which will have to be settled in accordance with the wish of the Natives ; but, as several of the principal Natives are to be directors of the company, the latter alternative will probably be the system ultimately adopted, especially as this principle permeates the Native Reserves Act of last session, and has already commended itself to the approbation of thinking men of both races. But " The Thermal-Springs Districts Act, 1881," prohibits any dealings with these lands by any person other than the Governor; and lam now led up to the consideration of the principle upon