I.—4b

14

" It ought to be advertised the two months prescribed in the Act, with all the details set forth, so that settlers might have ample time to visit the ground. " James MoKerrow, " Secretary, Crown Lands. "P.S.—While on the subject, I have to draw your attention to the advertisement by the trustees of a sale of 4,000 acres of the high school endowment in Wyndham Valley. The sale is fixed for the 14th iffstant, and the details of sections have only been before the public since the 28th March last. This sale is not nearly so important from a settlement point of view as the Strath Taieri; but apparently the trustees have not complied with the requirements of section sof 'The High Schools Eeserves Act, 1880.'—J. McK." About the Orari Education Eeserve : There are 1,200 acres of very good land in the Orari Flat, which the late Minister of Lands (Mr. Bolleston) advised the Canterbury School Commissioners to have surveyed into areas of about two hundred acres each, the object being to induce settlement there on the small-farming scale. Trie land was advertised for leasing, the terms were set forth, and tenders were sent in to the Commissioners. There were several tenderers, each for single sections, some as high as 14s. per acre and one 16s. per acre. There was one tender, that of Mr. Clarke, who offered 10s. 6d. per acre for any three contiguous sections, or for the whole block; but he would take no single section. The Commissioners discarded the tenders at 13s. or 145., which were for single sections, and gave the whole of trio reserve to Mr. Clarke at 10s. 6d. per acre, except about thirty acres to another tenderer at 16s. per acre. I do not know why the Commissioners did this; but it is reasonable to suppose that they did so in what they deemed to be the interest of their trust, Mr. Clarke being a well-known man, who would pay his rent, and with whom they would have no trouble. Eogarding the other tenderers I know nothing at all; but what I wish to point out is, that the reserve was not administered in the interests of residential settlement, and the land was peculiarly adapted for that purpose. As now let, it simply goes to enlarge the borders of a large estate. In contrast to this dealing with public land, the village settlement of Orari, a few miles further up the valley, and as nearly as possible of the same quality of land, was offered for settlement on village-settlement conditions about three years ago, and there are now forty-eight settlers there with their families—on four hundred acres. This great disparity of dealing with public lands in the same locality illustrates, perhaps, better than anything else that could be said the evil of having so many independent boards of authority at work in administering the public lands. 256. Mr. J. McKenzie.] Your opinion, Mr. McKerrow, is, that they would be better under the Waste Lands Board?—Most decidedly. 257. Mr. Bruce.] I understand that these Commissioners were guilty of a grave indiscretion in disposing of the land to Mr. Gall ?—I think it was owing to their want of knowledge in what they were doing. 258. What might the loss be to the Education Board of this?—lt would be difficult to state it in figures. 259. You believe that the Board have sustained a loss by their action ?—Yes ; the educational revenue has. 260. Might we not argue inferentially that, so much having been made of this case, as a rule their administration is as good as any other Board ?—Almost all they have done is to administer that educational endowment, and you would naturally suppose they would set about it with a great deal of care and some knowledge of what triey were doing. 261. A great deal of your argument appears to be based upon the present conflict of authority ? —Yes. 262. Is not that a matter to be rectified?—l think not. That district is being held back owing to this conflict of authority. It is the best piece of land in the country. 263. Well, if this conflict of authority could be avoided, is it not reasonable to assume, in the interest of the trust, that it would be as well administered by gentlemen who, being specially appointed, are likely to take an enthusiastic interest in the affair, as by any other body ?—I think enthusiasm is very dangerous, unless you have knowledge along with it. 264. Mr. Cowan drew attention to the advertisement of the sale of the lease of the Waikaia Eeserve, and the terms offered, and asked, were they conducive to the beneficial settlement of the country? —Triey not only appear to me now, but triey appeared to me at the time, so extremely prejudicial to settlement that I drew the attention of the Minister of Lands, Mr. Ballance, to the proposed sale of these leases. He at once expostulated with the Chairman of the Commissioners, pointing out that it was extremely likely, if the sale went on, that the runholder who had already secured so much of the low-lying land would, no doubt, absorb all the rest, and make one big estate where the land was so suitable for settlement. That expostulation had this effect: that the Commissioners agreed to withdraw the land, excepting a very small portion, pending the course of legislation during trie present session. I may add that, in my opinion, but for that action on the part of the Minister, the greater part of the low-lying portions of the Waikaia Valley would now have been held by one man. 265. The Chairman.] Was there any competition in the case of Gall's purchase of this land ?— None at all for the 600 acres. He got it for 2s. per acre—the upset price. For the 250 acres there was a little competition. 266. You said money was advanced by the Crown for opening up these roads. Is that returned ?—Yes ; we get it in little instalments spread over a number of years. 267. Mr. McMillan.] Do you know who is Mr. Gall's agent in "Dunedin? —I do not think he has any special agent. 268. Do you know if Mr. Begg has anything to do with Mr. Gall?—I think not. 269. Mr. Lake.] Do you know whether within the last five years a larger value has been pro-