H.—6

XVII

Some trouble has been experienced in the past by a few of the men seeking to take advantage of the Truck Act, and refusing to pay for their stores. This evil, however, has been considerably lessened through the power given to the different agents to refuse work to such men. One ease this year in particular has been dealt with in this way, and has proved a wholesome example to the others. I have, &c, E. Tregear, Esq. Wμ. Farnie, Agent, Labour Department.

EUSSELL. Sir, — Police-station, Eussell, Ist April, 1896. I have the honour to report for your information that the Factories Act has worked smoothly during the year. There has been no complaints from employers or employes, and no prosecutions. During the year a factory for converting the refuse carcase of the whale into manure has been erected by Messrs. Cook Brothers at their whaling-station at Whangamumu. This is practically a new industry, but I am pleased to report it has emerged from the experimental state, within which many were inclined to regard it upon its inception. I have heard the opinion freely expressed that the carcase of the whale would be valueless as a fertilizer. Results, however, have proved the reverse. Mr. H. Cook informs me he could have sold 100 tons more of his bone-dust to farmers who ventured to give the first lot a trial. There are two factories here engaged canning mullet. During the past season fish were scarce, and the fishermen had great difficulty in getting supplies, their earnings being a bare existence. The fishermen find boats and gear, and are paid 6s. per hundredweight for fish delivered at the factory, subject to deduction for any that become stale before treatment. At this price, when fish are plentiful, they do very well occasionally; but at one factory, where a number of boats are employed fishing, when the fish are abundant each boat is limited to twenty-five dozen —about scwt. This arrangement gives the men little chance to make up for poor spells — days, even weeks, when they catch little or nothing. Hence, at the end of the season, the average earnings are small arid the men are in a poor position to face three months' close season, especially where they have families depending upon them.. The close season, however, appears to be necessary in the interest of the industry. It affords a season of rest to the fish during spawning, when they may deposit the ova undisturbed. But this is a subject upon which there is a great diversity of opinion amongst those engaged in the business, and one where careful investigation by a disinterested person would lead to good results. It would be free, at least, from the suspicion of self-interest which invariably suggests itself where there is either loss or gain concerned in the matter, and it would enable the authorities to declare the close season for a time when it would best answer the purpose in view. The mullet-canning industry does not afford that general benefit to labour which might reasonably be expected from it. Fishermen barely exist. One skilled workman, with the assistance of a few youths or poorly-paid nlen, can run a factory, so that the profit goes to the owner. It appears to me, however, to be peculiarly an industry where co-operation, or assistance such as is given to sugar-cane farmers in Queensland, might be successfully applied. The plant-is simple and comparatively inexpensive. Colonies of fishermen established at various points on the coast, and equipped with a plant, could carry on the business amongst themselves, thus turning the natural wealth of our fisheries into a general instead of a special benefit. The Colonial Exploitation Company have commenced operations at the Ohaeawai quicksilvermines, opening up the mine, and getting material on the ground for the erection of their plant. When in full swing, this should be an important industry in the district, giving employment to a good deal of labour. I have, &c, B. Tregear, Esq. D. Gordon, Inspector of Factories.

GISBOENE. Sik, — Department of Labour, Gisborne, 14th April, 1896. In reviewing the events affecting labour and trade in this district for the past year, it is exceedingly gratifying to report that at the close of the period the general outlook is much more favourable and promising than it was at its commencement. There now prevails an unmistakable appearance of prosperity, and a healthier tone of hopefulness pervades the whole community. Of this there is complete and undeniable evidence. It is made manifest by many indications, not the least of which are the undertaking of works of improvement and utility on farms and stations, the erection of dwellings in town and suburbs, and the settlement of a considerable number on Crown lands which have been thrown open for occupation. The demand for agricultural land in small areas in proximity to Gisborne has increased of late, and some owners, recognising the fact, have subdivided their estates, and have profitably disposed of greater portions of them. Eeports from all parts of Cook County concur in stating that most creditable progress has been made by settlers in preliminary work on lands which have been recently acquired in remote localities, despite the many hindrances from bad roads, and, in many parts, no roads whatever. Every encouragement should be given to these pioneer settlers by providing means of access, and helping them in their initial struggles by finding occasional work exclusively for them in the construction of roads in the vicinity of their settlements. It is now generally admitted that the settlement of the population on land is one of the principal factors in the solution of the " unemployed " problem. Hence every effort put forth in this direction, every system, however imperfect at the start, devised to promote this object, should be encouraged and assisted by the Legislature. Experience in the practical part of the work will bring more iii—H. 6.