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holdings ?—Yes. I would simply bring the system under the lease in perpetuity. Then, we have the improved-farm settlements, which are under " The Lands Improvement and Native Lands Acquisition Act, 1894." These settlements here have also been a failure. In respect to this system, the Government first paid the occupiers of each allotment for felling the timber on the land from £1 ss. up to, perhaps, £1 10s. per acre. The Government also paid for grass-seeding, and there was also an allowance made for building houses to the extent of £10 to a single man and £30-to a married man. In some cases fencing material was also found. Well, this all ran into money, and when the Government ceased making these advances all the expenditure incurred was supposed to be added to the prairie or unimproved value of the land, with a proportion of the cost of roading. lam not exactly sure of the exact figures, but in some instances this brought the price of the land up to probably £3 to £4 per acre, and the tenant or occupier was supposed to pay either 4or 5 per cent, on that value. Of course, when the leases were about to be issued and the rentals were demanded the rentals were not forthcoming, because the tenants could not pay. 20. Did they leave the land ? —Some abandoned it, and as we found a majority would abandon it the Government wrote off so-much of this expenditure and revalued the land and brought it down to what you might call a "living rent." These settlers still remain on that land. One of the reasons for the failure in our district is that many of these improved-farm settlements were in inaccessible places, and our bush land is of an inferior nature and the climate wet. 21. I presume that the greater part of this improved-farm settlement was done about Waikawa ? —Yes, and it is a notoriously wet district. There is one in the Alton district about fourteen miles from Orepuki. That settlement has not been a failure; but that is principally owing to the fact that very good timber was growing on it, and a man could make a good living by squaring sleepers and supplying telegraph-poles. 22. How much did the Government write off?— About £7,000 or £8,000. I find there is another settlement on the Bluff Eoad—viz., Moturimu Settlement, which is about eight miles from Invercargill. It is convenient to the town, and the tenants sell firewood and are making a fair living. 23. Have you any remarks to make in regard to the point as to whether Crown tenants labour under restrictions inimical to their well-being and unnecessary in the interests of the State?—l think the residential conditions are very liberal as administered by this Board, but I think that the Land Boards should have a little more discretionary power in the way of not enforcing the law strictly as they may have to at present. For instance, when a man has no roads or access to his section he has great difficulty in getting his building material and fencing on to it, and I do not think a tenant should be forced to carry out all his improvements in the time stated in the Act. I also think that residence should not be enforced until reasonable access is given to his section. At present there is a four-years exemption in regard to bush lands, but that land may be occupied for over four years and still there may be no road to it. I think a little more discretionary power should be given to the Boards so that a section should not be forfeited for non-compliance with all these conditions. 24. Then, I understand you are quite satisfied with the law as it is now if the Land Boards could exercise what you call a reasonable discretionary power ?—Exactly. 25. What have you to say in regard to the clause as to whether alteration and variations are necessary in the law regarding tenure and occupation owing to the varying conditions existing in respect to the climate and land-configuration in the several parts of the colony : do you think special exemptions are required in your district other than are provided in the Land Act?—l do not think so. 26. Of course, the discretion you have asked for in regard to residence would apply to this also ?—Yes. 27. The next clause asks whether it is expedient that the homestead privileges as indicated in the appendix to "The Land Act, 1885," should be reintroduced. Shortly stated, the system is this : Persons taking up land under the homestead-settlement system take up 200 acres under certain conditions of residence and occupation, and after fulfilling these conditions they get a Crown grant to the land and it is made a freehold. This system was applicable to districts in Auckland particularly, which were very remote, and had no roads, and where the conditions were not at all encouraging for settlement, and it was thought well worth while to induce enterprising young men to go out to these back blocks and make the wilderness blossom : is there any part of your district where the homestead system might be applied?—l think the homestead system might be applied to some parts of Stewart Island with advantage. Of course, it is difficult to make roads in Stewart Island. The access to most of the holdings at the present time is by boat; but, of course, you cannot always get to them by this means, because the weather is not always favourable. In regard to this homestead system, the section of the Act states that if an occupier for non-com-pliance with the conditions should have his land forfeited, his improvements shall be forfeited also. I think that is too severe. I think that provision might apply in exceptional cases, but not in all cases. 28. You think the discretionary power of the Boards should apply here ? —Yes. At present the law is absolute on the point, and I think that provision is too sweeping. 29. Mr. McCardle.] I do not think that power has ever been exercised by the Gevernment ?— Perhaps not. 30. The Chairman.] You think the system could be well applied in portions of Stewart Island, but you think the forfeiture clause is too arbitrary ?—Yes. 31. In other words, it should be tempered with that discretionary power which you think it is very proper the Board should have?— Yes. 32. Now, as to the working of the present ballot system and the dealing with applications for land, do you think the present ballot system is good, or do you think some amendments are required ?—The ballot system under the Land Act of 1892 appears to work well in this district,