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C—9

I have endeavoured to indicate that it possesses many advantages, amongst which may be mentioned:— 1. A geological formation favourable to the best configuration of country and quality of soil. 2. Compactness of form ; low elevation; a favourable and genial climate. 3. Natural facilities for internal communication; and a port sufficient for trade requirements. 4. A large proportion of arable and semi-agricultural land of superior quality, well grassed, and well adapted for cropping and grazing. 5. Good blocks of hilly lands of superior quality, well grassed, and well adapted for pastoral purposes; about 14,000 acres are excepted from this description. 6. Capability of the estate for carrying a large amount of stock, for expansion of the present output in wool, and for the production of crops. 7. The suitableness of the property for subdivision and disposal under varied systems of settlement, and consequently its enhanced value over and above a value based upon the returns obtainable from the present method of utilising and working the estate as one. There is no good topographical map of the estate, and consequently only rough approximate areas can be given of the different blocks and classes of land. Estimate of Value. —The following is a rough estimate of the areas and values of the several blocks. £ s . a. Wart and Tormore Blocks ... 21,210 acres at £2 10s. per acre : 53,025 0 0 Benmore... ... ... 12,450 „ £2 ss. „ 28,012 10 0 Seaward Eange ... ... 11,450 „ £1 10s. „ 17,175 0 0 Port Hills 8,174 „ £2 10s. „ 20,435 0 0 53,284 118,647 10 0 Arable land ... ... 20,420 „ £6 „ 122,520 0 0 Semi-agricultural ... ... 9,900 „ £4 „ 39,600 0 0 83,604 £280,767 10 0 It follows therefore that the landed estate, the buildings, and other constructions may be set down as worth £300,000 to the Government for purposes of settlement. Consideration of Whole Question. —Taking the estate at the proprietor's valuation of £260,220 for, say, 84,000 acres, the question is, would it be safe for the .Land-tax Department to take it over with a view to realising the above sum and contingent expenses ? It is very questionable whether the department could expect to quit the estate as a whole, or even if subdivided into several large blocks, without considerable risk and after much delay. It is needless to enlarge upon the self-evident difficulties, dangers, and drawbacks which would beset the department in carrying out so novel and large an undertaking. Under such circumstances I could not advise that the estate be taken over. But if the matter be considered on the broad ground of public policy, and the welfare of the colony, I think it can be demonstrated that the property should be acquired. It is assumed, — 1. That the policy and future successful administration of the Land-tax Department require that the property be taken over. 2. That the Government would cordially co-operate and seize the opportunity of carrying out a comprehensive system of settlement on a large scale, and consider that it would be justifiable to accept the responsibility and risk ; and, if necessary, recoup the Land-tax Department any possible loss. It appears to me that, to initiate the sound policy of subdivision and close settlement on large estates would do more to advance the material welfare of the community than any other conceivable step. If this can be accomplished with the concurrence, as in this case, of the present proprietors on terms advantageous to them and the future settlers, so much the better. The principle is already generally accepted in older communities that growth of population, the necessities of the people, and the welfare of the nation demand that vast estates should no longer remain parks or runs, but should be converted into holdings suitable to the position and character of the lands and the requirements of the people. The manifest gain in establishing numerous families on the lands of the colony ; the additional scope afforded for employment of labour on public and private works; the great increase that would take place in revenue, in trade and production, render this question one worthy the best consideration of the Government. It is of such magnitude, capable of such expansion and application, and fraught with such far-reaching effect upon the future of the colony, that it seems to me the Government may well take the responsibility and risk connected with the undertaking, and open the country for settlement under "The Land Act, 1892." Before doing so the Government might obtain the opinion of a practical agriculturist, such as Mr. David McMillan, on the question. Suggestions. —ln this view of the case I have to repeat my recommendations of the 29th ultimo, that the proprietors' offer be accepted, and the whole estate taken over at £260,220, which is equivalent to about £3 2s. an acre. Assuming that the Land-tax Department decide to adopt this course, the following suggestions are submitted for consideration: — The estate and appurtenances should be handed over in thorough order and repair. A sufficient lapse of time should be allowed for completing surveys and sale-plans to enable the estate to be offered under " The Land Act, 1892." A large sum, possibly £30,000, would require to be spent on surveys, improving existing tracks, the slip, and in constructing new main roads to open up the country. The proprietors might be induced to retain Cheviot House and some of the surrounding buildings, otherwise these structures might be utilised for the establishment of one of the industrial farms in connection with the Labour Bureau operations.