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Settlement. There can be no doubt a great number of intending settlers, both in Nelson, Wairau, and in Pelorus district are anxious to take up sections of this land; but we think it would be most unwise and a grievous waste to fell, burn, and destroy such a valuable asset belonging to the Crown, but, in the interests of those people, we would recommend the whole of the land referred to, in the Rai and adjoining valleys, be immediately surveyed in blocks of 100 acres to 200 acres each, giving the surveyors some discretionary powers in fixing their boundaries, so as to separate as far as possible the heavy- from the light-timbered sections, and then all the land with only light bush should be open for settlement at once, the remainder being apportioned into sawmilling areas of reasonable size, limiting the time for removal of heavy bush, and, as the timber is cut off, the land so cleared should be immediately advertised as open for selection. Tramway. Fourteen years ago the Government placed a sum of £14,000 on the estimates to construct a tram-line from Havelock into the Rai Valley. Unfortunately, this work was not proceeded with ; and now a private company have built a tramway from the Blackball Sawmill (as shown on the plan) nearly to the mouth of the Rai Valley; but, as the State still owns such a large area of land and valuable timber, we strongly recommend and urge the Government to make some arrangement with Messrs. Brownlee and Co., owners of the tramway, to purchase the same, if it can be acquired on reasonable terms; then to carry it up the Rai, and thus encourage sawmillers—who are always the pioneers of bush settlements—to commence operations. Summary. Mr. Robertson, the surveyor now at work, estimates there are in the valleys we have examined about 20,000 acres available for settlement, together with about 6,000 acres situated in the Rai Valley, part of which is sold but is still in its primitive states —with the exception of about 300 acres felled and grassed—so we may fairly assume and estimate there are 25,000 acres of most valuable bush land in the locality—lo,ooo in the Upper Pelorus, and 7,000 in the Wakamarina (bordered green in outline), all Crown lands, which, if utilised to the best advantage, would supply the tramway with haulage for many years. We say emphatically the timber is better than the land, and altogether, including valuable birch forests, we estimate it would yield 800,000,000ft. of marketable timber, which, calculated at only 6d. per 100ft., would realise £200,000; and the land would be more valuable for settlement after the large timber was removed. In conclusion, this is now the only forest left in the Marlborough District, and requires to be dealt with by a comprehensive and statesmanlike policy. We have no hesitation in saying that our plan, if adopted, would bring in by way of tithes and haulage a large sum in profit to the colony; would provide constant labour for a great number of workmen for many years ; would assist those settlers who are already in the neighbourhood, since the sawmill hands would create an admirable market for all their produce; and, in addition, our plan would result in the employment of a large tonnage in the transport of the sawn timber; and eventually the line itself would doubtless form part of a connecting railway between Nelson and Picton. We have, &c, C. H. Mills. Hon. J. McKenzie, Minister of Lands, Wellington. A. P. Seymour.

APPENDIX E. Memorandum for the Surveyor-General, Wellington. Department of Lands and Survey, District Office, Blenheim, 26th July, 1894. Reports on Timber. As directed by your memorandum of 2nd June, No 14662, I have the honour to forward herewith a report, with illustrative plans, upon the Rai and tributary valleys, giving the estimated quantity of rimu, matai, white-pine, and totara, suitable for milling within that district. The estimate is based upon actual measurement, as nearly as it can be obtained, of timber growing on a certain area —namely, 118 acres, being the western part of Section 39 of the Ronga Valley Special-settlement. As the section was conveniently situated for measurement, being bounded on two sides by a surveyed road and a river, I had only to define two other sides, and then to measure every rimu, matai, white-pine, and totara within this area. This was done by measuring the lower girth at about 4ft. from the ground, making a deduction for the bark, and. estimating the length of each log suitable for milling. And, as the work was done systematically, and every tree marked, there was little risk of either repetition or omission. All the measured girths had to be reduced to the " girth "at the smaller end. This was done by measuring a felled tree, and estimating the reduction to be made at different lengths; after this, the quantities were taken out by the table which has been in use in this district for years, known as " millers' measurement," and which, no doubt, gives the minimum amount of superficial feet. The result was as follows :— Rimu (red-pine) ... 1,023 trees —1,030,600 superficial feet, or 1,007ft. per tree. Matai (black-pine) ... 654 „ 312,553 „ 478ft. Kahikatea (white-pine)... 821 „ 759,346 „ 925ft. Totara ... ... 85 „ 142,896 „ 1,682ft.

2,583 2,245,395 I found, after inspecting other parts of the valley, that the portion of the section I had measured was much more heavily timbered than the average of Crown lands. In fact, that if the