A.—3.
The result of their persistence was an action for damages brought by Dexter and Winchester against the defendants for 2,800 dollars (Chili). The case was heard by Captain Macalister, and damages awarded to the amount of 9,817 dollars, each of the defendants being ordered to pay an equal share, one-half to Dexter and Winchester, the other half to the Au of Te Tautua. It is regrettable that Captain Macalister should have consented to hear this case, since to decide on cases involving Maori land-claims requires special training. Moreover, it appears to me that he had no jurisdiction under the Pacific Order in Council, Penrhyn being at the time part of the Colony of New Zealand. It is clear that Dexter and Winchester have been trying to retain their monopoly over the shell of Penrhyn lagoon, and have used the Au of Te Tautua to that end; also that by aid of the Deputy Commissioner's Court they have succeeded in fining men several thousand dollars for having exercised rights which had descended to them through twenty generations of ancestors. ,; My promise to the people was to the effect that, as they had paid the fine and satisfied the judgment, I could not interfere personally, but would report the case fully to you and await instructions, but that for the future I would not allow any agreement by which one trader would acquire a monopoly at the expense of the other traders. I have, &c, W. E. Gudgeon, Eesident Commissioner. The Eight Hon. B. J. Seddon, Premier of New Zealand.
No. 59. g IE Barotonga, 20th November, 1901. I have the honour to forward herewith a draft of rules designed to regulate the pearl-shell fishing industry in the islands within the boundaries or New Zealand. They are for the most part based on the system now obtaining at Suwarrow, where the fisheries are most ably managed. I have, &c, W. E. Gudgeon, Eesident Commissioner. The Bight Hon. E. J. Seddon, Premier of New Zealand.
No. 60. g m Barotonga, 22nd November, 1901. I have the honour to report that on my return from Manihiki I visited Suwarrow, landing shortly after sunrise on the 4th instant. My visit was made partly to warn the residents that they were under the New Zealand Customs laws, and also to ascertain the value of this atoll. I found the lagoon in charge of a Mr. Nagel, who is managing for the South Pacific Trading Company, the lessees, and has under his charge some forty persons who are engaged m the pearlshell industry. From personal observation I am in a position to say that the real value of Suwarrow is the lagoon, from which nearly 50 tons of shell is taken each year. The small islands on the reef have been planted with the cocoa-palm, some of which are now bearing fruit; but I think that the whole of the islands of the reef will not have a greater area than 500 acre's, and therefore are of no great value for raising copra. From the information I obtained from Mr. Nagel I judge that the pearl-shell fishery is managed in a thoroughly businesslike manner. No shell of less than 4£ in. diameter is taken, and every effort is made to increase the area of the shell-beds. The diving is carried on by means of machines in water averaging from 20 to 28 fathoms, and the shell is of very good quality. The lessees of this island are about to give the shell a rest or close season, and intend to transfer the whole staff to Christmas Island, near the equator. The survey of this lagoon is so complete that it is hardly necessary for me to say that comparatively large vessels can enter the lagoon and find good anchorage almost anywhere close to the shore. I have, &c., W. E. Gudgeon, Eesident Commissioner. The Eight Hon. E. J. Seddon, Premier of New Zealand.
No. 61. o IE _ Barotonga, 23rd November, 1901. In reply to your despatch of the 21st September, requesting me to inquire into the complaint of one Bob, a Penrhyn Judge, I have the honour to report with reference to this man that it would seem that he was removed from his office by reason of his having been drunk and fined for this offence by the Omoka Judge. Captain Macalister has inquired into the matter of the complaint and has recorded his opinion that Bob was rightly removed from his office. My inquiry has led me to the same conclusion, and I have told Bob in front of the Au of Omoka that the fact of his having been appointed a Judge by one of the captains of the Pacific squadron did not raise him above the laws of his land, nor did it insure him perpetual office. I have, &c, W. E. Gudgeon, Eesident Commissioner. The Eight Hon. B. J. Seddon, Premier of New Zealand.
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