H.—6

XX

The chief industry under the heading o£ factories is sawing and planing timber, the mills used for that purpose employing a large percentage of labour directly and indirectl, several new mills being in the course of erection. The Government, lam pleased to note, granted a concession to the sawmillers by opening the railway-line as far as Newman for the conveyance of timber. This is a great boon to sawmillers whose sawmills are near the main road, as it enables them to save a considerable expense in the shape of horse labour, and to put a greater amount of timber on the market, thereby increasing the industry, the settler being a gainer by increased clear land, and the labourer by more demand for his labour. The Shops and Shop-assistants Act, with reference to closing, is not compulsory in this district. The shopkeepers, with the exception of one or two, close their shops on the same afternoon—viz., Thursday, their employes thus having one half-day during each week for recreation. The building trade has been very fair during the latter portion of the year, with a tendency to improve, several new shops and other buildings having been erected, and others being in the course of erection. A number of bridges have been completed during the year, several others being nearly completed. These works have, to a considerable extent, relieved the pressure of skilled and unskiled labour in the market. A number of miles of road-metalling and road-formation has been completed during the year, and similar works are ill the course of completion, which, combined with fencing and Government works, has absorbed a great deal of surplus labour. The season being fair and wages good, the artisan and labourer, I opine, has nothing to complain of. Still there is a tendency in both these classes, unfortunately, to spend their earnings in a reckless manner, electing to spend their earnings in the various hotels sooner than put by for a rainy day, the consequence being that a number are swagging on the roads in search of work and hoping not to find it. Were the average workman and labourer more careful in their habits, they would be in a better position to stand the depression caused by winter months and rough weather. Under the heading of "Labourers," my monthly schedules will show how many have passed through my books, and been employed on co-operative works. There is not now the number of swaggers to be noted coming into the district that there were in the 'earlier part of the year. They do not receive the same encouragement as formerly, and are beginning to realise the fact that they are not required. Of those who come a large percentage are what could be called criminally lazy men, who are unfit to work, and who prefer a loafing life round the different camps and hotels to doing an honest day's labour. There are exceptions, hut they are in the minority, the generality prefer living on the settler and genuine labouring-man to working themselves. My experience is that swagging tends to demoralise, and that to improve the principles lost by laziness, swagging, at all hazards must be stopped, and a certain amount of force used to revive those who have fallen into the habit, which, I have no doubt, would be a warning and act as a preventative to those who have fallen into the habit or are inclined to do so. I notice, with regret, that the custom still prevails of cutting down the bush in a promiscuous manner, a considerable quantity of valuable timber being wasted and destroyed. A considerable portion, instead of being allowed, to lie on the ground and rot, could be, with a little labour, put on the market at Wellington as firewood, and, as the freight is reduced on that commodity, made to pay. I think with a little capital this could be made to pay, and give employment to many. The grass-seeding has not been so successful this season as in the past. A larger area of land being under grass and reserved for seed, the supply is greater than the demand, consequently the market in a sense is glutted and prices lower. Bain commenced much earlier this season than the preceding one, causing a considerable loss to those engaged in the industry. From inquiries made, I am of opinion that there will be a considerable increase in bush-felling during the year. Sheep and cattle are not in as great demand as would be expected, and prices are not high. There have been one or two good sales, and fair prices realised, but they have been the exception and not the rule. There does not appear to be the amount of money in the district that would lead to speculation. Owing to low prices of cattle, and difficulty to find a market, many of the settlers are compelled to seek work on roads and other works; therefore the settler deserves every encouragement. The idea of employing him alternately on public works and his section is to be commended, as it works in a similar manner with the labourer, causing him to become a settler, and instilling in him frugal habits. Blacksmithing, wheelwrights, and other trades mentioned in my monthly reports are doing good trade and fully employed. Bricklayers have been working full time, but at present there is a tendency to slackness. The various shops in the district appear busy. lam of opinion the coming year will show a great improvement in the prosperity of the district. No prosecutions under the various Acts affecting labour were required, and none have been undertaken. I have, &c, JB. Tregear, Esq. Chakles Geey, Agent.

PAHIATUA. Sm,— Police-station, Pahiatua, 24th March, 1896. I have the honour to submit for your information my report of the labour-market and the operation of the various Acts affecting the same during the year ending on the 31st instant in the Pahiatua district. During the twelve months work has been fairly plentiful in all trades and callings. The cooperative works relieve the labour-market pretty considerably here. For the past two years extensive works have been carried on, roading the new district of Pongaroa, situated about forty