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Valuation Department, Gisborne, 24th July, 1908. Sir, — Small Grating-run ' t -i (It. G. Mack, lessee). In accordance with your instructions, 1 have inspected the above run, and submit the following report as to its capability of subdivision. I am of opinion it could be suitably divided into three lots, though the difficulty of obtaining homestead-sites is somewhat perplexing when equally distributing or endeavouring to allocate the poorer portions of the block to each of my proposed subdivisions. This has. I think, been overcome after careful inspection, but in the case of Subdivision No. 2 it will be necessary to form about a mile of road to give access to the only available homestead-site on this subdivision, which may be somewhat costly owing to the formation of the country lo be traversed, but the land is very good generally on this proposed subdivision, so that it will better bear a loading than the other lots for roading. Watering has been given careful consideration in each subdivision. Section 1 : I have been compelled to cover a fairly large area of the run in this subdivision owing to its rough and broken character and the patchy quality, and to obtain sites for yards and homestead, there beinc; no available sites cm the north-east side of the creek dividing this subdivision from the road which goes through the run. It would not, in my opinion, be prudent to cut this portion of the block into smaller areas. Section 2 I propose to cut into a smaller block, as the land with the exception of about 150 acres on the western boundary is of good quality, has a nice homestead-site thereon, and some totara, though, as stated in the first portion of this report, it will be necessary to form about a mile of road from the road at present running through the 1 run to the homestead-site indicated. Section 3 has some indifferent oountry on the south-western portion, having a deal of cedar country on the face. This has recently been cleared ami sown, but the crop of turnips is poor generally. Exclusive of this piece of indifferent land the remainder of this proposed subdivision is pood country. There is a small patch of bush in the western corner of this along the road, which I think should be reserved, as it is practically the only piece of native bush along the road in this locality, and it would be a great pity to allow it to be destroyed. Generally there are no special characteristics in this run. There is an absence of fencingtimber, with the exception of some totara on proposed Section 2; but the present lessee is bent on getting all the available posts and timber of any value off this portion as fast as he can, from observation, to use on his freehold and leasehold lands adjoining this run. I enclose a plan of the run, havinjr marked proposed homestead-sites, pom land, steep faces. present fences, and all other information thereon, T hope, that will give a lucid idea of the property. . Yours, <vc, C. Lewis, The Valuer-General, Wellington. District Valuer.

L. 57766. LB. 1335. 2459/149, S.G.R. Department of Lands. Wellington, Bth August, 1908. Commissioner of Crown Lands, Napier. Re Small Grating-run ',3 (R. G. Black). Referring to your 2459, of the 2nd ultimo, and the resolution of the Land Board in which they reversed their former decision in regard to the subdivision of the above run, the whole matter has been under the consideration of the Hon. the Minister of Lands, and was referred by decision of the Government to the Valuer-General, who has now reported as follows: — "I am of opinion that Small Grazinp-run 43 (R. G. Black, lessee") could be suitably divided into three lots, though the difficulty of obtaining homestead-sites is somewhat perplexing when equally distributing or endeavouring to allocate the poorer portions of the block to each of my proposed subdivisions. This has, I think, been overcome after careful inspection, but in the case of Subdivision No. 2 it will be necessary to form a mile of road to give access to the only available homestend-site on this subdivision, which may be somewhat costly owing to the formation of the oountry to be traversed : but the land is very good generally mi this proposed subdivision, so that il will better hear a loading for roadinp than the other lots. Watering has been given careful consideration in each subdivision. " Section 1 : I have been compelled to cover a fairly large area of the run in this subdivision. owing to its rough and broken character and its patchy quality, and to obtain sites for yards and homesteads, there beinsr no available sites on the north-east side ~f the creek dividing this sub division from the road which poes through the run. It xvould not. in my opinion, bo prudent to cut this portion of the block into smaller areas. "Section 2: T propose to cut this lot into a smaller block, as the land, with the exception of about 150 acres cm the western boundary, is of good quality, has a nice homestead-site thereon. and some totara. thoujrh, as stated in the first portion of this report, it will be necessary to form about a mile of road from the road at present running through the run to the homestead-site indicated. " Section 3 : This section lias some indifferent country on the south-xvestern portion, having a deal of cedar country on the face. This has recently been cleared and sown, but the crop of turnips is poor generally. Exclusive of this piece of indifferent land, the remainder of this proposed subdivision is pood country. There is a small patch of bush in the western corner, along the road. which I think should be reserved, as it is practically the only piece of native bush alonjr the road in this locality, and it xvould be a great pity to allow it to be destroyed. "Generally speaking, there are no special characteristics in this run. There is an absence of fencine-timber. with the exception of some totara on proposed Section 3. but the present lessee

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