D.—No. 7a.

PAPERS RELATING TO SPECIAL SETTLEMENT ON STEWART'S ISLAND.

PRESENTED TO BOTH HOUSES OF THE GENERAL ASSEMBLY, BY COMMAND OP HIS EXCELLENCY.

WELLINGTON. 1872.

SCHEDULE OF CORRESPONDENCE ON IMMIGRATION TO STEWART'S ISLAND.

SURVEYS IN CONNECTION WITH STEWART'S ISLAND SPECIAL SETTLEMENT.

No. Date. From To Subject. 1872. Jan. 17 His Honor the Superintendent Memorandum on Special Settlement Stewart's Island Jan. 25 Hon. W. Keeves His Honor the Superintendent Remarks on subject of foregoing memorandum 3 Feb. 12 His Honor the Superintendent Hon. W. Reeves Suggesting that shipment of Immigrants should be obtained from Orkney, Shetland, or the Hebrides Feb. 16 Hon. W. Reeves The Agent-General Instructions to forward Immigrants to Stewart's Island April 20 Ditto His Honor the Superintendent Agent-General has instructions to send Immigrants, and requesting that Provincial Government will make certain preparations for their reception May 16 0 His Honor the Superintendent Hon. W. Reeves Three hundred pounds has been placed on Estimates for special settlements, and enclosing copy of memo, to Executive Council in reference thereto May 18 Hon. W. Reeves His Honor the Superintendent Acknowledging receipt of above

No. Date From To Subject. 1871 Dec. 11 Mr. Pearson His Honor the Superintendent Report on Stewart's Island as a place for Special Settlement 1872 Feb. 15 Mr. Pearson Hon. W. Reeves Encloses copies of letters from Surveyors offering their services; 1. from Mr. S. Hately ; 2. Mr. J. Aitken March 4 Mr. Baker Ditto Report on Surveys required fov Stewarts Island 10

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No. 1. From His Honor the Superintendent Otago. Memo on Special Settlement, Stewart's Island. Class A.—Free Grant. 500 Village Allotments quarter-acre each. 500 Suburban Allotments twenty acres each. Class B.—ss. an Acre. 30,000 acres in 50-acre sections. Class C.—los. an Acre. 60,000 acres in 50-acre sections. Village allotments in the first instance to be granted at Black Rock Point, Port William, HorseShoe and Half-Moon Bays and Paterson's Inlet, in proportion to available area in each locality. First immigrant ship to discharge her passengers at Port William, the nest at Paterson's Inlet, both being safe harbors for vessels of any tonnage, at each of which ports arrangements can be made for immediately communicating arrival to Invercargill, from whence an officer can at once proceed to the Island for the purpose of locating the immigrants. Government to make arrangements for supplying the immigrants, at prime cost, with sufficient oatmeal to last them for twelve months; potatoes for seed, and also grain. Immigrants to have time to pay for same if required. Provision to be made at Paterson's Inlet, and at Port William, for sheltering immigrants pending the erection of houses by themselves. A suitable wbaleboat to be provided at each place for the use of the immigrants until such time as they can build boats of their own; the use of such whaleboat to be subject to such regulations as the Government may see fit. Immigrants to be provided at cost with axes, saws, and such tools as may be necessary to enable them to cut timber for boat and house buildilding. WAIKAWA.—CIass A—Free Land. 200 village allotments quarter-acre each. 200 suburban allotments twenty acres each. Class B.—ss. an Acre. 1,280 acres in sections. Class C—los. an Acre. 30,000 acres in sections. TAUTUKU.—CIass A.—Free Land. 80 village allotments quarter-acre each. 80 suburban allotments twenty acres each. CATLIN'S EIVER.—Class A.—Free Land. 200 village allotments quarter-acre each. 200 suburban allotments twenty acres each. Class B.—ss. an Acre. 1,200 acres in sections. Class C.—los. an Acre. 30,000 acres in sections. The most suitable class of immigrants for Stewart Island would be fishermen farmers from Orkney, Shetland, and the Western Isles; and a ship load of fishermen and miners from Cornwall. The same class would be so far suitable for Waikawa, Tautuku, and Catlin's River. A considerable number of lumberers and sawyers would find profitable occupation in these localities. J. Macandrew, Superintendent of Otago. 17th Jan, 1872.

PAPERS RELATING TO SPECIAL SETTLEMENT ON STEWART'S ISLAND. ■

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PAPERS RELATING TO SPECIAL

No. 2. Hon. W. Reeves to His Honor the Superintendent. Office of the Resident Minister for the Middle Island, . , Dunedin, 26th January, 1872. Sir,— Referring to your Honor's memorandum of the 17th instant, on the formation of special settlements at various parts of the Southern main Lands of Otago and Stewart's Island, the receipt of which I have the honor to acknowledge, the Government, in the first place, desires to be informed whether your Honor is prepared to have the necessary surveys carried out, so that a part of such settlement may be laid out in town, suburban, and rural allotments, in accordance with the terms of "The Otago Settlements Act, 1869." Before undertaking the grave responsibility in introducing population to these settlements, the Government would be glad to be definitely informed what steps you propose to take to supply the various wants of these people, until such time as they can reasonably be expected to provide shelter for themselves, and to earn their own living. The Government thinks it right to call special attention to the fact that the people proposed to be introduced will, as a rule, be extremely poor; that in these settlements they will be out of reach of employers; there will be no public works going on, and that they will be dependent, therefore, on their own exertions. These conditions will necessitate a considerable amount of extra care and assistance, for some time after they have been located. I have, &c, W. Reeves. His Honor the Superintendent of Otago.

No. 3. His Honor the Superintendent to the Hon. W. Reeves. Superintendent's Office, Dunedin, 12th February, 1872. Sir, — With a view of losing no time in the introduction of immigrants into Stewart's Island, I have the honor to suggest that directions should-be sent home by the outgoing mail to the effect that steps may at once be taken towards obtaining a shipment direct to Port William, either from Orkney and Shetland, or the Hebrides. The emigrants should be informed, that while each family and adult male, will receive a free grant of 20 acres of land, they must look to fishing, and boat and ship-building as their main occupation. The Government will be prepared to provide a supply of tools for boat and house-building; also potatoes and grain for seed, and twelvemonths supply of oatmeal; and to allow, if necessary, one year for payment of such supplies. The emigrants should also be informed that they will be allowed to occupy their land on the principle of free selection, and priority of application, within certain limits to be devised. They themselves to defray the expense of survey by a Government surveyor, who will be located on the spot, and authorised to charge certain moderate fixed rates. Pending the arrival of the immigrants, I would suggest that the Provincial Government be empowered to erect, out of the Immigration and Public Works Loan, suitable barracks at Port William, to accommodate say one hundred families; and that one or more fishing boats be attached to the barracks for the use of the immigrants. By this means they will be enabled at once to provide for themselves until such time as they can fix upon permanent localities. I have, &c, J. Macandrew, Superintendent of Otago. Hon. W. Reeves, Dunedin.

No. 4. Hon. W. Reeves to the Agent-General, London. Resident Minister's Office for the Middle Island, New Zealand, Christchurch, 16th February, 1872. Annexed is a copy of a letter from His Honor the Superintendent of Otago, on the subject of the introduction of immigrants into Stewart's Island, requesting me to forward instructions that a shipment should be forwarded direct to Port William, either from Orkney and Shetland or the Hebrides. During the last month I have visited Stewart's Island, and though my visit was short, satisfied myself that a moderate number of immigrants, of the kind proposed by Mr. Macandrew, might be introduced with advantage, provided proper steps are taken to meet their wants on arrival, and put them in the way of earning their living.

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The natural features of the Island correspond very closely with the description given in Mr. Pearson's report, of which you have, I believe, received a copy. The seat of the first settlement will be fixed at Port William, a commodious and safe harbour, where the Government will have to erect a barrack capable of containing say one hundred and fifty persons of all ages, the number which I propose should be brought out by the first ship. As there is but little settlement on the Island, and as, therefore, there would be no employers of labour, I think it would be unwise to hazard the experiment of more than one shipment during the first year. Even if, as proposed by His Honor the first comers are provided with necessary food, tools, seed and boats, it would take quite a year before they will be in a position to feed themselves and assist the next batch of incomers. By that time, if the first attempt succeds, it may be practicable and politic to double the number of immigrants; but a great point will be gained, if, in the course of the first year, the successful settlement of a hundred and fifty or two hundred people is effected on this hitherto neglected Island. The Agent-General will therefore consider himself instructed to prepare for the shipment of about fifty families, from the Orkney or Shetland Islands or Hebrides, to arrive at Port William about November next. Each adult will receive a free grant of twenty acres of land ; but, as stated by His Honor, the intending immigrants should be impressed with the tact that it is to fishing they must look as their main source of prosperity, and not to the cultivation of the soil. Originally the settlement of the Island was intended to be carried on under the provisions of the " Otago Special Settlements Act, 1869 and 1871," but as the business of Immigration has now devolved upon the Colony, it is probable that some modification of those Acts must take place in order to avoid the confusion which will certainly ensue under a dual system of management. At present the Province finds the land, and the Colonial Government introduces the immigrants ; the province also expects the Colony to erect baracks and supply boats, &c, if required. Under these circumstances it will be difficult to determine where the responsibility of the Colonial Gevernment ends. It will, probably, therefore be necessary that that the Province should hand over the land in order that the whole management of the settlement may rest upon those who are really responsible for the welfare of the people they bring out. You will be kept informed, from time to time, of all detail arrangements that may be made which will affect the interests of the intending emigrants. Should you be unable to make arrangements for landing the immigrants at Port William, a contingency, which the Government trust will not occur, as the harbour is easy of access and perfectly safe, they will have to be discharged at the Bluff. W. Reeves.

No. 5. Hon. W. Reeves to His Honor the Superintendent. Office of Resident Minister for the Middle Island, New Zealand 20th April, 1872. Sir, In order to assist your desire to promote the settlement of Stewart's Island, the Government has requested the Agent-General to send out a first shipment of about 150 suitable emigrants to be obtained if possible, from Orkney, Shetland, or the Western Isles. Preparation is being also made to find shelter for the new arrivals, and for this purpose suitable barracks will shortly be erected at Port William. As the future conduct of the experiment will devolve upon the provincial authorities under the " Otago Special Settlements Act," the Government express their hopes that your Honor will urge upon your advisers the necessity of bringing the matter before the Council so that funds may be appropriated for the survey of such an area as will be required for the settlement, for the supply of food necessary for the maintenance of the immigrants until such time as they are enabled to earn their own living, and generally for tools and appliances required to start them in their several occupations. As the immigrants will in this case be almost entirely without means, as they will be out of reach of employers, and as they will be landed on a comparatively uninhabited island, your Honor will readily understand that the Government who are responsible for bringing them out at your request, feel very anxious to learn that proper steps will be taken by the local authorities to avoid the chance of any failure in this attempt of settlement, as the consequences in that case would not only involve considerable pecuniary loss but much certain misery. Hoping with your Honor, that this first importation will be but the commencement of a continuous immigration to the island, and feeling sure that the success of this first experiment will depend mainly upon the mode in which the details are prepared and carried out, I trust you will agree with me in the propriety of submitting such proposed resolutions to your Executive and Council as will meet the circumstances of the case, and satisfy the wishes of the Colonial Government. I have, &c, W. Reeves. His Honor the Superintendent of Otago.

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PAPERS RELATING TO SPECIAL

No. 6. His Honor the Superintendent to Hon. W. Reeves. Superintendent's Office, Dunedin, 16th May, 1872. Sir, — In reply to your letter of 20th April with respect to the proposed immigration to Stewart'* Island, I have the honor to enclose for your information copy of a memo, submitted by me to the Executive Council, and to state that with the advice and consent of the Executive, I have placed a sum of three hundred pounds on the estimates under the head " Contingent, Expenses Special Settlements." It is thought that it might be undesirable to give undue publicity to the terms of this memorandum as it might lead to the loafing class (of which the colony unfortunately is not altogether destitute) availing themselves of the proposed provision. Whereas the object of the vote is to assist those who are able and willing to work and thereby provide for themselves. I have, (fee, J. Macandrew. Superintendent of Otago. The Hon. W. Reeves, Christchurch.

Enclosure in No. 6. Memorandum for Executive Council. 20th April, 1872. With reference to the letter of date as above from the Honorable the Resident Minister for the Middle Island, The Superintendent proposes that, with a view of enabling such immigrants as may be entirely destitute of pecuniary means to maintain themselves and families, pending the growth of their first crop, the Provincial Government will place in charge of the keeper of the immigration Barracks at Port William, a quantity of oatmeal, also of potatoes, grain, and other vegetables, for seed, not exceeding in value £250, the same to be supplied to the immigrants on twelvemonths credit at prime cost, also that a whaleboat and fishing lines be placed in charge of the barrack master for the use of the immigrants. With the supplies abovementioned, and abundance of fish and vegetables the immigrants need not be badly off, and if industrious they will be able in due time to refund the province. There is no doubt moreover, that so soon as population commences to settle in the island portions of the land will sell at prices which will amply recoup the Government in respect of any deficiency otherwise. James Macandrew, Superintendent.

No. 7. Hon. W. Reeves to His Honor the Superintendent. Office of Resident Minister for the Middle Island Christchurch, 18th June, 1872 Sir,— I have the honor to acknowledge the receipt of your Honor's letter of the 16th alt., covering a copy of a memorandum submitted by you to your Executive Council, and intimating that with their advice and consent you had placed on the estimates a sum of three hundred pounds (300) for contingent expenses special settlements. I have, &c. W. Reeves His Honor, the Superintendent of Otago.

No. 8. Mr. Pearson to His Honor the Superintendent. Crown Lands Office, Invercargill, 11th December, 1871. Sir, — I have the honor to acknowledge receipt of your Honor's telegram of 7th instant, informing me of the Government's desire to locate on Stewart's Island, under the " Otago Settlements Act, 1871," immigrants from Orkney, Shetland and Western Islands, and requesting me to indicate the most suitable spots, together with the area to be alloted to each family, and in reply to furnish the required information. Spots for immediate location :—from Black Rock Point to Port William. Port William, Horse Shoe and Half-Moon Bays, Paterson's Inlet.

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These harbors are most easy of access from the main, have been tolerably explored by the settlers residing in them, (some of many years standing) are the most sheltered of the harbors of the Island, and are admirably adapted for the settlement of a body of men whose peculiar calling and training will enable them to utilize to the utmost the timber and fisheries. Along the coast, from Port William, northward, to Black Rock Point, there are several small harbors and sheltered beaches, such as Otahou, Murray River, Christmas Village, Lucky Beach, Orouti, in the vicinity of which the land is good. These, scaling the admiralty chart, give a harbour and sea-board frontage as follows :— Black Rock Point to Port William ... 15 miles. Port William 4 „ Horse Shoe and Half-Moon Bays ... 3. v Paterson's Inlet ... ... ... ... 38 ~ Which, with a depth of half-a-mile, gives 20,000 acres, or at a mile, double that quantity. At least a third of the frontage, however, is too precipitous for settlement, so that probably the available area may be roughly estimated at 25,000 acres. This can only be an approximate estimate, the chart of the Island being on a very small scale ; and though I have visited and inspected most of the harbors, the interior is almost a terra incognita. There are besides, Port Adventure, Lord's River, Port Pegasus, all good harbors and remarkably well adapted for fishing settlements ; the last, Port Pegasus, particularly so, the best fishing grounds being in its vicinity, while for boat or ship building purposes it is unrivalled. On the west coast of the Island there is a tolerable extent of fair and level land, fronting Mason Bay and running into the interior. While I am of opinion the principle of free selection, as being more likely to satisfy the desires of the immigrants and conduce to the success of the undertaking, should be admitted, I think it would be advisable to locate the first batch of settlers in the four harbors already mentioned, more particularly Port William, where there is a small house, a police station belonging- to the Government, which, with some other buildings, private property,would afford immediate shelter to the immigrants. In Half-Moon Bay there are several families located—two, Messrs Harrold and Scollay from the Shetland Islands, and some Germans who would, I feel assured, afford every assistance to the strangers while at the Neck, Paterson's Inlet, and scattered about inside the harbor temporary accommodation could be obtained ; thus, instead of being landed unshielded in the wilderness, the first pilgrims would have warmth and shelter for their families, and time to look about them for a choice of location. This, though apparently trifling, has no inconsiderable effect in cheering the spirits, raising the hopes, and producing a favorable early impression. There is a fishery established in Paterson's Inlet, and one about to be started in Port William, at both of which some of the immigrants could no doubt readily obtain employment, if they are willing to charge moderately for their services. Area for each family. —Half-an-acre in a village or township, or twenty or twenty-five acres suburban land. In encouraging such settlement as that under contemplation by the Government, I presume the chief object is to farm the sea, and not the land. Any inducement offered by the Government calculated to divert the attention of the immigrants from this intention, will be likely to frustrate the successful operation of the undertaking. The true policy to be pursued, in my opinion, as regards the immigrants themselves, is to let them understand at the first that they are to depend for subsistence on the produce of the sea, and avocations in connection with it. As regards the Government, to avoid the possibility of closing the valuable fisheries by giving away the frontages on the coast and in the harbors, to men, who, from being too liberally supplied with free land, are tempted to turn their attention to it for a living, content to grow sufficient food, which, with an occasional draught of fish, will keep them and their families in indigent idleness, and prove as useless colonists as the Maoris and Half-castes, who have hitherto vegetated on the Island; instead of a hardy, energetic people, who, while achieving an honorable independence, benefit the general community by developing a great industry. In the homes they are leaving, they have, so far as I can gather, very small holdings, yet there, a good area of land for each family might be considered not unreasonable. The climate is severe, and in winter they are almost entirely prevented from pursuing their calling ; to have land, the cultivation of which would occupy their attention and keep their energies in healthy activity, would be an advantage; but at Stewart's Island there need be no interruption in following their legitimate pursuits. The winters are not severe, fish can be caught and cured in any season, and may be trawled for between Port William and Saddle Point however hard the south-west wind—the prevalent one—may blow, as doubtless, also, all along the east coast of the Island, by experienced fishermen in well appointed crafts; while in the numerous sheltered coves and inlets in the various harbours of the Island, boat and ship building could be carried on throughout the year, or during those intervals when the weather might be considered too inclement to warrant the exposure consequent on deep sea fishing. Nature has lavishly furnished the material for a hardy industry, and I think every action of the Government should carefully tend towards its vigorous development.

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PAPERS RELATING TO SPECIAL

In each bay, with tolerable land in its vicinity, and shelter for anchorage of fishing smacks and and beaching of boats, I would recommend a village or township—consistent with its size—to be laid off in half-acre sections for the fishermen and their families to reside on, and supply garden produce —thus securing the principle of co-operation which is of more than ordinary importance in their calling—and outside this a belt of suburban sections of twenty or twenty-five acres, according to number], of each household; this area would be quite sufficient with careful culture to supply the respective households with wheat for bread, potatoes, and grass for a cow. The soil, from what I have seen of the cultivations presently on the Island, is good, and can always be renovated by the best manure—fish refuse and seaweed—without cost, further than the labor of collecting and putting it on the ground. Such a free grant of land, while it secures to provident industry a sufficiency, will not prove a lure to idleness. Fisheries. —To experienced thrift the fisheries around Stewart's Island promise not only comfortable subsistence but wealth. The occupation has hitherto been carried on in a desultory manner by a few residents, most of whom, partly from imperfect knowledge, partly from inadequate means, have been incapacitated from properly cultivating the rich field at their disposal; that they have been able to subsist at all, support their families, and in one or two cases make money, with the disadvantages they have laboured under, is the best evidence that the undertaking could be conducted to a most successful issue by men whose lifetraining has rendered them adepts at the occupation, masters of the position. The fishing has been pursued entirely with set nets and fishing-lines. The bays and harbors are, during the summer months, frequented by shoals of Trumpeter and Moki, both fish of rare excellence; the latter will not take a bait, and can only be caught with nets laid in the shallow waters along the edges of the bays, and kelp beds inside them; these nets could be laid down with ease by the wives or children of tbe fisherman, any weather. I have frequently assisted in placing them in Port William, and in two or three hours caught from fifteen to twenty Moki and Trumpeter—averaging in weight sibs.—'to each net. The Blue Cod, a fair fish when green, and one that cures splendidly, though caught in the bays is found in largest numbers all along the north and east coast of the Island, from Rugged Point to Wilson Bay. The sea, looking through its clear pellucid waters, appears to literally swarm with them off Smokey Cave and other favorite localities. I have seen them pulled up with lines three or four to each, as rapidly as the baits could be fixed and let down. I believe four good fishermen could fill a whaleboat in three or four hours at any of these spots without moving. The Groper, a lordly fish, is also largely caught with the hook on its favourite banks off the the same coast, and in the vicinity of Mason Bay. The head and shoulders of this fish, boiled, equals the best home Cod, and smoked or salted is excellent; it is of such size, and its flesh so firm and compact, it can be cut and cooked like beef steak. The White Cod also abounds, which, though from want of firmness does not eat well green, is good dried and smoked. These, with Barracoota, which cures well, and is of size, may be considered the staple fish of the Island; but I have no doubt when the trawl net is substituted for the present imperfect fishing gear, new and good varieties will be discovered in the straits and vicinity of the Island. There is every evidence that the supply of fish, most of very superior quality, is inexhaustible, and and as I have already stated, no season appears to affect it. Although the bays are partially deserted in the winter, by their inhabitants seeking the deeper water round the coast for warmth, any fish which takes the bait can be caught as readily, and as numerously in the middle of winter or summer. " Curing" is in its earliest infancy. No one of training or experience has hitherto been engaged in this branch of the business; but the attempts, though imperfect from ignorance and defective appliances, have been sufficient to determine the practicability of establishing a great and lucrative industry. There is abundance of timber in each bay for buildings, smoking the fish, making barrels for exporting the salt fish, and all the utensils appertaining to the trade. Vessels of any tonnage can bo built on the Island. Spars of size can be obtained with ease and in quantity, particularly from Port Pegasus, as also naturally formed knees and ribs, of one of the toughest known woods, the Rata or Ironwood, which clothes the shores of Ports Adventure, Pegasiis and Lord's river in great luxuriance; while nature has supplied any number of dock-yards in the numerous sheltered coves scattered throughout the various harbors. "Tinning Fish" for export ought, with moderately paid labor, to pay well. The Moki and Trumpeter in excellence of flavour would rival the preserved Salmon, so largely imported into the Australian colonies, and with the Groper certainly surpass the American tinned fish, besides possessing the advantage of freshness. I have tasted some prepared in this manner as an experiment, by an amateur, so palatable that I feel sure it would prove a great success in experienced hands ; while the Crayfish which is of large size and abundant in all the bays, fully equals, when tinned, the imported Lobsters, and can be caught easily in any quantity.

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Market. —The question of next importance to obtaining, with facility, any article of merchandise is its ready disposal at a remunerative price. The local market, Invercargill, is very limited; the wholesale prices are as follows : —Moki and Trumpeter, which average sfbs., and run as high as lOlbs. each, twelve shillings a dozen; Blue Cod, averaging 41bs., though running as high as 81bs., six shillings the dozen; and Groper, which averages from 30 to 40tbs., reaching as high as 801bs., from seven to twelve shillings each; smoked and salted fish, three pence per pound; but sales are restricted by the sparcity of population aud irregularity of supply. In inviting special settlement to develop a particular resource, a far wider field than this, for the consumption of its produce, must naturally be anticipated; and there will be little difficulty in finding it. Smart fore-and-aft cutters, with wells to carry live fish, could supply the Dunedin market which is large; and the prevalent wind, the south-west, would enable the owners to make the run up in a few hours. In working back they can trawl, and bring the result to their homes on the Island, for curing; and it is to this branch of the business they must look for the full development of the industry, the chief reward of their labor. Irrespective of driving out of the New Zealand market the salt and tinned fish imported at present from Britain and America, Australia will absorb large quantities. For some reason or other, with the exception of South Australia—where the trade is, I believe, principally in the hands of Chinamen—Australia does not appear to have been successful in its fisheries, though the consumption, from its mixed population, numbering largely Chinese and Roman Catholics, is far in excess of any supply from Tasmania. When I was in Victoria, in 1866, having in view the utilization of the Stewart Island fisheries, I made special enquiry into the subject, and I feel convinced that properly cured fish, whether smoked or salted, could be sold by the cargo at from threepence to four-pence per pound. While I was in Melbourne, a cargo from Newfoundland realised the last price—this ought to leave a margin of not less than forty per cent for profit. Oysters. —lrrespective of its fishing banks, Stewart Island possesses a not inconsiderable source of wealth in its oyster beds. These may be said to have hardly been touched, though the Stewart Island Oyster has been known for many years in the New Zealand and Melbourne markets. The trade, carried on at first almost exclusively by Maoris and Half-castes, has lately assumed wider dimensions. As the shallow beds, principally at Port Adventure, where the bivalve could at low water be easily obtained, became exhausted, deep sea beds were discovered by European fishermen, and the dredge substituted for the hand as a means of gathering them—some two or three of these beds have been found in the vicinity of Port William near and running parallel to the coast, apparantly of great thickness, the oysters of which are remarkably large and fine; but I have heard of indications of others in the deep water of the harbors and, out in the strait as far as Ruapuki; and have no doubt that with a large settled population, the bottom of the strait along the coast from Port Pegasus to Rugged Point, and Ruapuki to the Titi Islands off Paterson's Inlet, will be found to be lined with this popular mollusk. The Stewart Island Oyster has an established reputation for superior excellence in every market it has been introduced into; in Melbourne it commands a higher price than any other, and I see no reason why the greater part of A Tew Zealand and the whole of the Australian Colonies, where the oyster beds are being rapidly depopulated, could not be regularly supplied from the Island; the fishing-smacks running across the strait to the Bluff to meet the steamers, either going north or to Australia, with barrels or kits of them for shipment. The supply will always equal the demand to whatever proportions the trade may swell, or at any rate can always be made to do so by artificial cultivation; for in no part of the world could greater natural facilities for the construction of artificial beds be found, than in the harbors of this Island. Preserving them in tins would be an occupation to be pursued during the open season, so as to secure a continuance of sale when, during spawning, the law forbids their being taken ; nearly fresh, as they would be, they ought to command as ready a sale, as good a price, as the preserved oysters imported from America and Europe; the toughness and tastelessnes of which are doubtless considered by the exporters to be compensated in the respectability conferred by a good old age. Minerals. —Little is known of the interior of the Island; what is, favors the supposition that it is rich in mineral wealth. Copper has been found, as also lead ore impregnated with silver. The deposits of iron-sand are considerable not only in the harbors but, as I am informed, in the interior; particularly in a specis of rift, between Half-Moon Bay and Paterson's Inlet, where the deposit is very great, estimated to exceed that at Taranaki. A parcel of this was sent some time ago, for assay, to Melbourne; and the assayers for the Victorian Government and the Oriental Bank, after smelting and manufacturing a steel bar from it, reported that it was not only superior to the Taranaki sand, but contained a sufficient quantity of gold to pay the expenses of smelting. This sand would form rich ballast for wool ships from Otago, and could be put on board with ease and at no great expense, as there is always deep water in the harbors. With plentiful labor at command, probably such a course will be adopted by captains of vessels, and the export form another source of employment; though I am inclined to think the richest deposits will —when the subject has attained greater notoriety, and leases can be granted —-be worked by companies; obtaining the coal required for the works, at a reasonable cost from the main, where it will I am sure be discovered ere long.

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" Quartz Reefs " of size, and well defined, have been discovered in various parts of the Island, more particularly at the north end; and although the hasty, ill advised, and worse conducted enterprise started from Invercargill a ievr months ago, failed to discover an auriferous reef, it was owing to the fact, that while a great deal of money was spent by persons entirely unacquainted with the business, little or no real work was done. The few experienced reefers who went over at the time, have all expressed their confidence in the undertaking ultimately proving a success; and we are only waiting to obtain a sufficiency of means to give it a good trial. If payable reefs are discovered it will prove in extent one of the largest, and, from its admirable water communication, most economically worked goldfield in the Autralasian group. But the introduction of a large population, such as that in contemplation, will prove the best means of testing this with the other supposed resources of the Island. Keeping this in view I would suggest the advisability of encouraging settlers from the coast of Cornwall; they are not only hardy, expert fishermen and boat builders, but have a practical knowledge of mining and metallurgy, which, as they would be constantly in the localities, would prove of greater service in discovering any mineral wealth which may exist than a higher grade of science visiting the Island for a few weeks, though sent for the express purpose. Miscellaneous sources of occupation. —Stewart's Island is so singularly favourably situated for the proper class of settlers, that it is difficult to determine what they could not do. With good crafts, bold hearts and skilful hands, the fisherman could at the proper season vary the ordinary business of his life by the more exciting occupation of whaling and sealing. The waters in the vicinity of the Islands were at one time frequented by large numbers of the cetaceous and phocide families; indeed at Wilson or Broad Bay there was, years ago, a very considerable whaling settlement; and from what I can learn, the whales and seals are beginning to return to their old haunts —though there is no occasion for him to confine his energies to his own territory. Like the Vikings of old he can, though with a more peaceful intent, steer his bark to foreign shores. He can wage war on the seal at the Auckland, Campbell, McQuarie Islands to.the south; or seek it in the numerous caves in the deep sounds of the west coast of the main, from Preservation Inlet to Martin's Bay. He can cruise through Foveaux Strait, and round his island home in pursuit of the richest fish the sea produces —the whale ; or sail to the Snares for mutton birds and albatross, and other sea-fowl feathers; the first, dried and smoked, sell readily at from four to five shillings a dozen, wholesale, in the local market, for exportation to the north; and feathers, mutton bird, at fivepence a pound, albatross for considerably more. With a craft of his own, the Stewart Islander can take his mutton birds not required for home consumption to the best market, the North Island, where the Maoris I understand give as high as twelve or more shillings a dozen for them. And he can, unlike the ordinary whaler, do all this without risk, danger, or loss of time, always within easy reach of his home. While trawling, if he sees a whale he can, if prepared give chase, and if he gets his monster fish, tow it home and try it out at his leisure ; if he loses it, go on trawling; always sure of a return of some sort. He lives in a genial climate, with the means of subsistence, nay wealth at command, and surrounded with such comfort as few of his calling experience, either in the home country or the bitter winters of Nova Scotia. To the fishermen the Government propose to bring out, or Nova Scotians, Stewart's Island will prove a very paradise. Surveys. —After experiencing the expense attendant on surveying the Martin's Bay special settlement, it becomes a question of serious consideration for the Government whether its ability can compass the prosecution of similar undertakings in other parts of the province, unless a radical alteration in thin feature of the scheme can be devised. In the case of Stewart's Island, I propose the following:— Authorised surveyors, according to requirement, to be appointed by the Government, placed on the same footing as regards free grants of land with the other settlers, each having a half acre in the town or village he resides in, with a 20-acre suburban lot. Here the responsibility of the Government ceases and the settlers' begins. These will cut their own lines, and pay for the professional services of the surveyor, charged in accordance with a rate fixed by the Government, or its equivalent in kind, either in oysters, mutton birds, dried fish, (fee, &c, as may be most convenient to both parties to the contract. Thus, while the Government is at no expense, the cost to the settlers will be trifling and easily met. Each of the bays along the coast will be colonised by small communities, who, from ties of consanguinity, friendship, or interest, will desire to settle together for purposes of co-operation in pursuing their calling. The half-acre village lots and 20-acre suburban sections will therefore be laid off simultaneously, the trouble and expense to the surveyor and settlers being thereby greatly reduced. The surveys, of course, to be inspected, on completion, by the District Surveyor at Invercargill. The survey of mineral lands which may be applied for under lease will be executed by the surveyor in the locality, as also any purchases which may be effected on the Island, should it ever be deemed desirable to throw any part of it open for sale; for these, however, he will be paid in the usual way. In fact, the same system of district survey will be pursued there as has for years been so satisfactorily in operation in Southland, the only difference being that, as regards the settlers under the " Special Settlements Act, 1871," the circulating medium will be changed from money to marketable produce, which can be readily converted into money. Though such a proposition may,

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from its novelty, induce the Government to doubt whether competent surveyors can be obtained to work for such remuneration, a little consideration will remove any misgivings on this head. The two objections which may be supposed to deter a surveyor of capacity from residing permanently on Stewart's Island under my proposition are: —the mode of recompensing his services, and a seeming banishment to an isolated part of the colony, by which he steps out of the stream that may float him, sooner or later, a prize in his profession. As regards the first, any payment in kind will be in articles of merchandise which command a ready and certain sale. In taking them he will doubtless stipulate, he suffers no loss on their sale, and will get them shipped free to his agent at Campbelltown by the fishermen in their crafts, when they visit the main on their own business. He will be paid liberally, and can make certain of being paid regularly, for the means will lie before the door of every fisherman in the village he resides in, nor need he have any trouble in collecting the tithes. Thus a very moderate amount of business capacity will enable him to secure himself, and with ordinary ability, tact and temper, he must be master of the situation. As regards the last, judging from experience the prizes are few, and to ability, so far as remuneration is concerned, not of great moment; while there is always a pleasant uncertainty as to their retention, as at any meeting of a Provincial Council they may, at a moment's notice, be torn away. On the Island a surveyor can live in comfort, ease, and above all, independence; he can support his family at small expense; for if he has the tact to make himself popular, he will find willing hands and grateful hearts to minister to his wants at trifling cost: he need not waste his substance in dress, a charge a professional man in centres of population is forced into to a greater or less extent; in fact, he may if he choose save the greater part of whatever money he may make. If he has spare means, he will have an opportunity of sharing in fishing, whaling or sealing enterprises; he may start an artificial oyster bed, which he can get stocked for next to nothing, with the cultch and spat brought up by the fishermen while dredging for oysters; and which, instead of being thrown back into the sea, they would doubtless, if requested, carry free of charge to his bed in returning to their homes at night; and he will in three years time be possessed of a good and certain income. Always on the spot he will be the first to hear of any mineral discovery, and as a promoter obtain such a prize as he might wish for in vain living on the main. Though at present residence on the Island means in a great measure isolation; if the success of the undertaking is at all commensurate with my expectations, there will be plenty of life shortly after it is fairly started —healthy, vigorous, hopeful life. Once a population settled there, independent of the frequent communication with the main by means of the fishing smacks, it will pay to run a small steamer between the Bluff and the Island, which could, in addition, undertake the trade to the Toi-toies, Waikawa, and Catlin's River to the east of Cambelltown; and westward, to Riverton, Orepuki, Preservation Inlet, or other settlements which may be formed on the west coast of Otago. On the whole, I feel convinced that the status of a surveyor at Stewart's Island under this scheme will compare favourably with that of his compeer on the main, either in the employ of the Government or practising on his own account. Living amidst some of the finest scenery on the face of nature, varying from the grandeur of the west side, with its lofty cones of bare granite, its weird rocky coast, to the sunny calm of an inland lake with wooded shores and g-olden beaches, he can vary the monotony of his professional life by fishing, shooting, and boating, pleasures which men travel thousands of miles and spare no expense to compass.. He can bring up his children hardy, from the contact of sea air, in a healthy, salubrious climate, milder than at Invercargill, and make sure of a provision for their future—a position it is impossible to attain on the main with three or four hundred a year, the usual remuneration of a professional surveyor of standing and ability. I have no fear of being unable to get men on the conditions I propose. At any rate, the first one I spoke to, an authorised surveyor of upwards of twelve years' standing, and one of the best in Otago, expressed his willingness to undertake the duty without hesitation. General. —l think for the present the localities I have indicated will suffice amply for immediate requirements. The Island is not open for sale at present, and there is no occasion to declare it as such until every provision is made under the " Settlements Axt, 1871," more particularly as it will not be lying waste, for the best description of settlement will be progressing, and its resources developed far better than by the land being alienated to speculators. I am getting the admiralty survey of Stewart's Island—which I found on my inspection of that portion of the province is pretty correct as to outline—enlarged sufficiently to enable the blocks of land which I have recommended for immediate settlement to be defined on it, and I will forward it on completion to your Honor; and in the meanwhile beg to forward by this mail a chart of the Island with the land available colored pink, together with a copy of my report on it written in 1867, giving an account of the general features and capabilities of the various harbors. I purpose visiting the Island towards the end of this summer, in connection with Half-caste land claims and oyster beds; and will endeavour to make arrangements with the settlers already located for the hospitable reception of the expected immigrants.

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In conclusion I beg to state, if your Honor will be good enough to give me timely notice of the arrival of the first ship-load of immigrants, I will make arrangements to go over to the Island, and afford them every assistance in my power to locate themselves satisfactorily. I have, &c, Walter H. Pearson, Commissioner of Crown Lands.

Enclosure in No. 8. RUNS HELD UNDER " OTAGO LAND REGULATIONS, 1st APRIL, 1856."

I. ' REPORT ON STEWART'S ISLAND. Port William, from its position, will probably be the most important harbor in Stewart's Island. It is easy of ingress' and egress with any wind, presenting in this particular a marked contrast to most of the other harbors in tbe Island; and is the most convenient port of call for vessels windboun in Foveaux Straits, or harbor of refuge for those disabled. lhe Land is of superior quality, as evidenced by the crops obtained from the small patches which have been cultivated. Though, as a rule, hilly, it is not too steep for cultivation, and is so situated that the greater portion of the slopes have a north-eastern aspect. That at the north-west end of the Bay, running across the neck at the west head, is tolerably level; and the luxuriant growth of the fern tree attests to the superior quality of the soil. About Water Beach, the hills are not so steep, and there are some gentle slopes in other parts of the harbor. Timber. —The shores of this bay, like most of the others on the Island, are covered with timber of size, principally black and red pine ; but the undergrowth does not offer any serious impediment t» clearing—the exuberant growth of creepers being the chief difficulty to contend with. There are two or three creeks (of sufficient size to admit of boating up them for a short distance) running into the bay. Reserves. —A reserve of 200 acres for a township should be made at the north-west side of the Harbor— the frontage including part of West Head, Snug Cove, Cave Head, and part of Magnetic Beach, as per attached sketch. This land is, I believe, claimed under the " Land Claims Settlement Acts, 1856, and 1858;" but as it is the only site for a township at Port Willirm, I trust the Government will under any circumstances secure it. I would also recommend a reserve of 30 acres for a lighthouse on the East Head. Although it is probable that it will not be required for such a purpose for some years, yet, as it is the best position for one, it ought to be secured. Horseshoe Bay is a. pretty little bay, sheltered from the worst and most prevalent winds. The available land in its immediate vicinity is circumscribed. What there is, however, is good, and would form a desirable purchase. Half-moon Bay is also a sheltered harbor. The land is superior in quality, not very thickly timbered, and a considerable area of it available. Some of it, on the south side, has been cultivated by Mr. Harrold, and some Germans who have been located for upwards of twelve months. The results of their labor testify to the productiveness of the soil, and the practicability of colonising Stewart Island. Reserve. —l would recommend a village reserve of 100 acres as per enclosed sketch. I understand that there is a tolerable inland track to it from Kaipipi Bay, Paterson Inlet, by which settlers along the north shore of that inlet might obtain supplies should the stress of weather obstruct the navigation, which, I should imagine, is of by no means infrequent occurrence.

Area. Date on which License Terminates Run. Licensee. 395 Edmund Gillon ... 3,500 April 28, 1874 397 Bisdie and Harrison 27,360 May 14, 1879 415 Henry Munro ... 44,640 July 19, 1879 Walter H. Pearson, Commissioner of Crown Lands. Crown Lands Office, Invercargill, 25th October, 1870.

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Paterson Inlet, four miles to the south-eastward of Port William, is the largest of the harbors on Stewart's Island, and may be more aptly termed an inland sea. Though the entrance is wide and deep, owing to its shape, the large surface of water affected by the prevalent and most powerful winds (those from the westward), and the level character of the interior between it and Mason Bay, its navigation is more tedious and hazardous than any of the other harbors. The only tract of open country of any extent in the Island lies in a series of valleys connecting Mason Bay with Paterson Inlet; thus the waters of the latter are exposed to the full violence of the westerly gales, the force of which is concentrated by their compression in the gorge through which they pass. I was unable to examine this harbor as minutely as I have done most of those on the Island, owing to the severity of the weather when I was there. I purpose shortly to revisit it, when I will be in a better position to furnish a satisfactory report. Reserves. —ln the meanwhile, I would recommend a village reserve of 50 acres in Glory Cove, as per sketch. The land in the vicinity, though hilly, is good. It is a commodious and safe harbor for vessels drawing up to six fathoms. Also, a reserve of 100 acres at the south-west arm of Kaipipi Bay, locally called Half Point Bay. This is a convenient place of call for supplies for settlers living on the upper part of the north shore, and there is good and sheltered anchorage under the lee of the bold headland from the prevalent winds. The Land here, to judge from a small clearing which had been made, is good, and there are some available sites for shipbuilding yards. I understand that there is a tolerable extent of open land up the North Arm of the Inlet, or more correctly the North River, which runs into the North Arm; but I was unable, for the reasons already explained, to judge of its extent or availability for settlement by personal inspection. Chew Tobacco Bay.—Following down the coast, the next bay of any importance is one locally termed Chew Tobacco Bay. This is a tolerable harbor for vessels in westerly winds. The Land is good, particularly at the south-east end, where the luxuriance of growth and superior description of the native grasses on some old clearings attract attention. Reserve. —As this is the only tolerably safe bay to run for shelter between Paterson Inlet and Port Adventure, there ought to be a village reserve of 80 acres at the south-east end. Port Adventure, ten miles southward of Paterson Inlet, is a good harbor, easy of entrance with any wind for small craft, —there being room to beat, deep water, and safe anchorage. The Land on shore is good, and not so hilly as Paterson Inlet; more particularly along the banks of Heron River, the navigation up which is easy for boats drawing five feet water. The scenery is very picturesque : there is a series of small sandy beaches, with gentle slopes to them, affording beautiful sites for dwellings aud cultivation. Oyster Cove is also well adapted for settlement, the water being deep, and the land as well sheltered as in Heron River; indeed, small vessels could find shelter here from any wind. This cove has obtained its name from the fecundity and excellence of its oyster beds, which, I am sorry to say, have become almost depopulated, owing to the want of protection from abuse ; though I have but little doubt that, with judicious supervision, they will become in a few years as prolific as formerly. Reserve. —I would recommend a reserve of 200 acres for a township at White Beach, between Red Sand Cove and Heron River, as per sketch. This site has an easterly aspect, is sheltered from the prevalent winds, and boats can land at any state of the tide. Timber. —Principally black and red pine, and ironwood in great abundance. Lord's River, three-and-a-half miles to the south-west of Shelter Point, the southern entrance of Port Adventure, is a well-sheltered harbor for small vessels or steamers, the entrance being contracted, and, though land-locked, is difficult of ingress or egress; the latter can only be effected in easterly or northerly weather. It is a narrow arm of the sea running in a westerly direction. Boats drawing from seven to eight feet can go up it at high water as far as the Rapids (which are about four miles from the anchorage ground), where the river becomes a rapid creek, which, I would imagine, takes its source some distance inland. The Land on the .shores round the harbor, and along the banks of the river as far as the Rapids, is tolerably level and very good; as also along the numerous little inlets and creeks running into the river. Some of the latter are of considerable depth and width, making available for cultivation a breadth of good land which would otherwise be useless from inaccessibility. It is not by any means heavily timbered, there being comparatively few trees of any size : but it is covered with scrub. The undergrowth is light, and easy of clearance, from the absence of tough creepers, such as the supple-jack. Timber. —Principally red and black pines and totara; the rata, or iron wood, growing here, as elsewhere, luxuriantly. Wild Fowl of every description common to the main land are plentiful; as are also fish of the finest description, and shell-fish abound. The Scenery, especially at high water, when the extensive mud flats above the Narrows are covered, is very pretty, though tamer than in most of the other harbors.

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Reserves. —l would recommend a village reserve of 100 acres at the south side of the harbor, the frontage commencing at Observation Spot, running in a westerly direction to the west end of the third beach, as per sketch. This is a beautiful site for a village, perfectly sheltered, having a northern aspect, with gently sloping lands to bright sandy beaches, at which boats can land in any state of the tide. I would also recommend a reserve, for a pilot station, of 30 acres at the north-east end of Surf Head. The Land along the coast from Lord's Harbor to Seal Point is flat, and for some distance inland may be described as undulating rather than hilly, and covered with low scrub. The Toetoes boat harbor being the only safe one between the two points, a small landing reserve of 40 acres ought to be made. Port Pegasus.—Seventeen miles to the southward of Lord's River is aptly termed by Captain Stokes, a "noble port." Lying parallel with the coast, it is of sufficient capacity to hold a fleet. The three ship channels render it easy of entrance, particularly " Broad Passage," while there is a good boat passage between Anchorage and Noble Islands. It abounds in nooks and coves, both in the north and south arms, where the depth of water will permit small craft to anchor close in-shore. Tfie Land is good, though its general character is steep, and is densely timbered with thick undergrowth. There is an abundance of flax here, which is not noticeable in most of the other harbors. At the back of Seal Creek —a deep inlet running in a northerly and easterly direction from the main harbor—of Evening and Shipbuilder's Coves, and to the north-east of Sylvan Cove, the hills are bare and stony. If there is any gold to be found on the Island, I would imagine the gullies at the foot of these hills to be the most likely places to reward the search for it. Timber here has a luxuriance of g-rowth superior to any other part of the Island, and is admirably adapted for ship building purposes. Spars for vessels, could be obtained in quantity, and with little difficulty; cut on the sides of the steep hill, they could with ease be rolled to the water's edge. It consists of red, black, and white pines, and the usual iron wood. There are numerous coves well adapted for ship-building yards; and the appliances, so far as timber is concerned, can be procured with facility of the best quality, and unlimited as regards supply. Wild Fowl are tolerably plentiful, and wood hens abound. Here, for the first time, I saw a pretty little bird called the Jack, with red wattles and burnished red feathers on the back and wings. This bird is, I understand, peculiar to the southern part of the Island. Its note is melodious, nearly equal to that of the tui, or parson bird. Fish of every description are abundant, as also shell-fish. The Scenery is exceedingly picturesque, and in some parts, particularly the South Arm, assumes features of grandeur from the remarkable bare granite cones, which, though in reality on the shores of the West Coast, are seen for the first time from the east side on entering the harbor. Reserves —l would recommend a township reserve of 150 acres Observation Cove, Acheron Anchorage. This is opposite the safest anchoring ground in the Port. One of 100 acres at Sylvan Cove ; one of 50 acres at Fright Cove; and one (for a lighthouse) of 40 acres at Smooth Point, Pearl Island. Small Craft Retreat, or " Charley's Cove," as it is locally termed, is a convenient place of refuge for small vessels, and is, I believe, not unfrequently used as such. Reserve. —A small reserve of 50 acres should be made at the south-east end, where a creek of fresh water runs into it. Wilson Bay, four miles southward of Port Pegasus, is, in reality, a deep indentation, very exposed to easterly, southerly, and north-westerly winds, which create a considerable sea inside, rendering it unsafe anchorage for vessels, of size; though Burial, or Archie's Cove, affords good shelter for small craft. The Land, though in some places tolerable, begins to show evidence of inferiority, there being no depth of soil, and the hills steep. Timber of size there is none; the hills being covered with scrub, principally moritikou. Wild fowl seem scarce as also fish. This bay was at one time a great rendezvous for whalers and sealers, when a small village existed, of which no vestige remains. Reserve —A village reserve of 80 acres, as per sketch. Flour Cask, as it is locally termed, is a small bay running north and south, being the nearest indentation to the South-west Cape—Stewart's Point forms its south head. There is a safe and snug retreat for small craft on the west side, as I had occasion to experience. The Land is steep and poor, covered with low scrub. Timber —none. This bay is frequented by sealers in the season, there being a seal rookery at the South-west Cape, to which there is a track overland from this bight. Fish are plentiful at certain seasons. Reserve. —I would recommend a reserve of 50 acres round the boat harbor, as per sketch. Yankee River. —Rounding the South-west Cape, the nearest indentation of any importance as a harbor of refuge, is that locality known as Yankee River—a small but snug harbor for small craft up

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to 150 tons, vessels of which size might lie here well sheltered from all winds. There are five fathoms of water for some distance inside the entrance. The Land is precipitous and poor, the rock protruding through the scant covering. It is principally covered with scrub : there is, however, a small quantity of red and black pine. Reserve. —l would recommend a reserve of 80 acres on the east side of the small river running into the Cove, at its eastern extremity. Half-a-mile to the north of Yankee River is a small boat harbor, the Maori name of which is Paritoti, frequented by the Maoris while mutton-birding on the islands—to the southward and westward of Yankee River. There should be a reserve here for their protection, if it has not already been made by Mr. Commissioner Clarke, of which I can obtain no evidence. Easy Cove.—Nine miles to the northward of South-west Cape is a convenient harbor of refuge in south-west gales for small craft. The land, though improving, is still inferior, and covered with scrub, interspersed with a little timber. I would recommend a village reserve of 80 acres on the east side of the Cove, as per sketch. Mason Bay is more an open roadstead than a harbor, though at its southern extremity there is a tolerable anchorage. A heavy sea rolls in on the greater part of the sandy beach—some five miles in length—fronting a belt of low flat land lying between the hills and the sea. Land. —There is a tolerably extensive belt of flat land round the bay, principally wooded, with occasional patches of open, covered with grass, the most considerable and valuable of which is at the south-east end. The soil is a sandy loam. The bush land on the sides of the hills at the south end of the bay is good, as is also that on the North Island. The timber on the ranges consists of black, white, and red pines, with clumps of manuka scattered about. Wild fowl are plentiful, particularly Paradise ducks ; as are fish, including the groper. At the back of a low range of hills, at the north-east end of the bay, commences a long valley, or, rather, series of valleys, of open land, connecting the west with the east coast, terminating at the head of Paterson Inlet. This bay is the only place on the island where a settler could have a run for his cattle. Reserve. —I would recommend a township reserve of 200 acres at the south end of the harbor, on the fiat fronting the beach, commencing at the passage between South Island and the main, and running northerly along the foot of the ranges to the south-west branch (or Eel Creek) of the Pleasant Creek, as per sketch. Ruggedy River runs into the south-east end of Rugged Bay, which is exposed to the north-west winds. The shores are sand, and arid looking. There is a snug boat harbor inside the entrance of the river. Long Beach has a boat harbour at the south end of it, and a fresh-water creek running into it through a nice valley of some extent. The land is good and level, and, with the slopes of the hills at the south end, which face the north-east, is heavily timbered. This will, I think, form a desirable place for settlement. Yankee River, three miles further to the eastward, is a boat harbor, not far from Saddle Point. The land is good; the gully sheltered-—having a northerly aspect —and is covered with very fine timber. There is sufficient water-power to turn a saw-mill, which could be worked to advantage —the quantity of the timber ensuring a durable supply. This bight lies at the foot of Mount Anglem, the gullies running down from which invite the search of gold. Murray River, about four miles to the westward of Port William, was at one time the seat of a Maori settlement, called Otahu, but is now deserted. The land in its vicinity is good, and has an eastern exposure. The gentle slopes of the hills are well adapted for cultivation, and are clothed with good timber. This fresh-water river is of some size, flowing into the sea at the south end of a nice beach. The coast line from the Murray River to Port William is indented with little nooks well adapted for settlement, having an eastern aspect, and thoroughly sheltered from the westerly winds. The Coast from Cave Point to Wilson Bay is full of indentations which can afford shelter in all cases to small craft; in many to vessels of any size. Thus every facility is afforded for communication along the shores, which, when settlements are formed, will make the inhabitants independent of roads. On the south and west side of the Island, navigation is dangerous. The harbors are few and far apart, and a continual heavy swell from the westward breaks on an iron-bound, precipitous, inhospitable shore. That portion of it from Easy Cove to Rugged Point is remarkably broken and rugged in appearance. The bare stony hills, rising abruptly from the sea, presenting in some places a singularly castellated appearance. The color of the rocks is peculiar, more particularly about Red Head. The Climate. —From all I could gather, and from my own observation, I would imagine that all along the east coast of the Island, from Port Pegasus northward, the climate is fully equal, if not superior, to that of Invercargill. I had a good oportunity of testing it in every part of the coast during the five weeks I spent in exploring the Island. Judging from the accounts I heard on my return to Invercargill, the weather on the mainland must have been less fine than that I had experienced ; nor do I imagine that a larger quantity of rain falls there than on the main. That drizzling rain is frequent is not surprising, seeing that the high range of hills running down the centre of the Island naturally attracts and holds the cloudy vapors floating about, which are in some measure again discharged before being dissipated on the rising of the sun; but it is generally only an early shower,

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light and not lasting, which more assists than retards vegetation. I have no doubt that as the forests get cleared away in the progress of settlement, the climate will improve in this particular. From my experience, I would imagine the thermometer rises higher in the bays and bights on the Island than at Invercargill. The Bays on the east coast are sheltered from the westerly gales by the high ranges already alluded to. The slopes of the hills have, as a rule, a north-easterly aspect, and the rays of the sun being concentrated by the contracted space into which they are poured, the heat obtained is greater. On more than one occasian I noticed how well sheltered the land in these bays is, when it was blowing half a gale outside. General. —On the whole, I cannot but conclude that Stewart's Island will prove, and that shortly, a very valuable and important portion of the Province. There are many industries which, dormant at present, will, when quickened into life, prove remunerative. Irrespective of any mineral wealth which may exist, of which I can only form a conjectural opinion from the singular appearance of the different strata of rocks on the south and west coasts of the Island, I am of opinion that it will be well adapted for the small class of settlers —say 50-acre men. From the peculiar configuration of the land, a large extent of it is rendered available by its frontage to the water. Its being covered with timber and scrub cannot form a very serious impediment to its settlement, inasmuch as in many parts of the North Island heavily timbered land meets with ready sale, though in the interior ; while the densely wooded shores of Blueskin, Port Chalmers, and the harbor up to Dunedin, in the Province of Otago, were bought and cleared long before fictitious stimulus to the price of land consequent on the discovery of gold. One of the most serious difficulties a young settler has to contend with in a new and sparsely populated country is the carriage of his provisions from the town to his land, pending his being able to raise sufficient produce to support himself and family off the ground he has purchased. He must either buy a team of his own or pay the heavy rates for carriage consequent on bad roads. These expenses, to a man of small means, are very heavy, and not infrequently so crushing as to seriously retard his advancement. The means which would have enabled him to cultivate and improve his land with rapidity are dissipated in the expenses of carrying his food. On Stewart Island, much of this will be obviated. His fishing line and gun will supply him with one of the necessaries of life ; and, if he has a whaleboat, he can obtain the rest at no expense, so far as carriage is concerned, from the main land ; or, if he has none, at a trifling cost, both in money and time, in comparison with land carriage. He will thus be in a better position to devote his energies and means to the clearing and cultivation of his land than his compeer, settling fifteen miles inland from Invercargill. I believe the sale of the timber would more than pay for the clearing in most of the bays. The admirable water communication would enable the logs to be floated or shipped to where a saw-mill might be established, and if it will pay to saw timber anywhere, it will at Stewart's Island. At Port Pegasus, the splendid spars, and the knees, ribs, (fee, of the rata, will always command a good price for shipment to the Mauritius—a trade with which is already established in Dunedin : vessels from the former place would only too gladly load with such on their return. Thus the cost of clearing the land will be less than on the main, while produce once obtained, the facilities for exporting it are greater. The local consumption of agricultural produce in all young settlements is not great, and the demand easily satisfied : the majority of the population being occupied in producing the same staple. To pay the agriculturist he must export, and on the main he is met with the usual difficulty—defective internal communication. The Settler at Stewart's Island will be in a very advantageous position in this respect. He has Nature's highway—the sea. He can boat his produce across to the Bluff, and ship it on board a steamer for Australia or the West Coast, or sell it to a merchant—delivering it as above. He will thus be enabled to sell it at a moderate price, and will consequently find a ready market. Shipbuilding is an industry which could be conducted with great success on the Island, some of the bays in which are peculiarly adapted for the purpose. The numerous sheltered coves in Paterson Inlet and Port Pegasus furnish a hundred dockyards from which vessels of size could easily be launched, while the raw material abounds, and is of the best quality. I saw a vessel of 180 tons being built, every rib of which was formed out of the natural curve of the rata tree, the strongest and toughest wood for the purpose. I was also given to understand that there were one or two natural dry docks. The Scenery is magnificent. At the south and west coasts of the island, the weird appearance of the jagged mountains—the fantastic fissures in the bare rocky islands and coast, worn by the turbulent seas to which they are exposed—the lofty cones of bare granite—the singular colour of the rocks abutting on the ocean, unite in conferring a degree of grandeur to the tableau such as I have not seen equalled in any part of New Zealand, —while the natural beauty of the landscape in Paterson Inlet and Port Pegasus is equal to that of the Sydney Harbor, setting on one side, of course, the artificial adjuncts of cultivated shores and ornamental villas. The distances of the various ports from each other I have taken from the " New Zealand Pilot." I found the Admiralty survey wonderfully correct, so much so that the enlarged charts of the various bays would answer as selection maps under the present system of free selection, pending the ordinary survey of the Island. I cannot close this report without calling the attention of the Government to the utter state of lawlessness which prevails on the Island. Few in number as are the inhabitants, a system of plunder has been established, not merely on any goods which may be landed from wrecked vessels-, and which seem to be considered as a lawful prize, but on one another. No one can leave his house unprotected

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for two or three days without being robbed. I heard of an instance where a three hours' absence sufficed. A single constable would have the immediate effect of putting a stop to the practice I have endeavoured to expose. His presence would evidence that the attention of the Government had been directed to the malpractices which had been carried on, and prove its determination to prevent their continuance. Port William would be the best place at which to station him, as that port is most frequented by vessels in distress, the cargoes of which have to be landed for safety, though at present such a proceeding would ensure their being pilfered. The system of plunder has been carried on in so barefaced a manner, with such impunity, and for such a length of time, that one is almost tempted to the conclusion that the inhabitants, from immunity, have been led to believe that to plunder is the normal condition of man, and that " Those shall take who have the power, And those shall keep who can," is the principle enunciated by the local Government to which the few honest settlers on the Island would naturally look for protection. Walter H. Pearson, Commissioner of Crown Lands. Crown Lands Office, Invercargill, Southland, 26th December, 1866.

No. 9. SURVEYS FOR SPECIAL SETTLEMENT ON STEWART'S ISLAND. Mr. Pearson, to the Hon. W. Reeves. Crown Lands Office, Invercargill, 15th February, 1872. Sir, — I have the honor, as requested by you, to forward copies of two letters, as per margin, from surveyors offering their services in connection with the proposed settlement of Stewart's Island, under the Otago Special Settlements Acts, 1869 and 1871. Both the surveyors have been conducting surveys for years in Southland, as authorised surveyors; Mr Hately being one of some twelve years' standing, and Mr Aitken has' not only been employed by the Provincial Government in surveys on the main, but has just completed the survey of half-caste lands and claims under the Land Claims Settlements Act* in various parts of Stewart's Island, by instructions of the General Government. From these offers you will gather that my anticipations of obtaining a sufficiency of professional service for the conduct of surveys at Stewart's Island under the scheme expressed in my report on the subject to His Honor the Superintendent of Otago, of December hist—copy of which I had the honour to furnish you with when at Invercargill—have every prospect of being realised. I have, &c, Walter H. Pearson, Commissioner of Crown Lands. The Hon. W. Reeves, Christchurch.

. Enclosure 1 in No. 9. Mr. G. Hately to Mr. W. H. Pearson. Invercargill, 12th February, 1872. Sir, — , In reference to a previous conversation with regard to the survey of grants of land, under the Special Settlements Acts, on Stewart's Island, I have the honour to reply that I will undertake the surveys on the following terms, viz.:— Ist.—That a free grant of land of 100 acres, suburban land, and a quarter-acre of town lands, be allotted to the surveyor under the terms of the Special Settlements Acts. 2nd.—That tho survey of land purchased within the district for cash, may be paid in cash. 3rd.—That reserves for public purposes, and mineral leases or mineral reserves, surveyed, may be paid in cash or land; the latter to be selected immediately, or any time after the passing of the survey, with title to a Crown Grant for the same when its survey may be completed and occupation certificate issued. 4th.—The foregoing conditions being conceded, I am willing to survey the allotments as required by the settlers under the Special Settlements Acts, and to take, as remuneration, such

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value in form of marketable articles at current prices; the settlers providing for cutting lines and labour necessary, and being at any cash expenses that may be required in the performance of the work. sth.—That the Government may extend protection to me, in the event of any settlers refusing to make recompense for such surveys, according to a scale of fees which may be adopted by the Government. / I have, &c Geo. Hately, W. 11. Pearson, Esq., Authorised Surveyor. Commissioner of Crown Lands, Invercargill.

Enclosure 2 in No. 9. Mr. J. Aitken to Mr. Pearson. Invercargill, Bth Jan., 1872. Sir, — Referring to our conversation re going over to Stewart's Island and residing as a surveyor, or to survey the sections of land to be given under the " Otago Special Settlements Acts," I beg to state that I am prepared to accept from the Government as an authorised surveyor, residing on the Island, the following terms :— That I am to get a free grant on the same terms as the other settlers, under the Acts. That all the labour required for the surveying of the sections, such as boating, cutting back lines, pegs, &c, to be performed by the settlers who have the grants of land. That for my professional services I am to be paid by the settlers, at the rate fixed by the Government, in its equivalent in kind, either fish, oysters, mutton birds, &c. That I am to have the choice of surveying any land in my district or locality, sold for cash to ordinary purchasers and payable in cash, as also the surveying of any area taken up for lease under the mineral regulations. I will be happy to enter into an engagement as above indicated, upon the clear and distinct understanding that the Government undertake to acquaint the settlers, under the " Land Settlements Act," with the terms and conditions upon which their land is to be surveyed; failing which, I shall of course hold the Government (in case of any misunderstanding on that head) liable to remunerate me. Perhaps I may venture to suggest, that to provide against any probable loss to the surveyor from any kind of repudiation that may possibly be practised, it would be best that clean receipts, from the surveyor for his charges, should be produced before the fee simple of the land is conveyed. I should not have entered into details, except for the purpose of making the surveyor, whoever he may be, as secure of his payment in some shape or other as it is possible to make him, as it must be obvious to the Government that recovery of debt from unprincipled persons in such a locality, may be attended with inconvenience, expense, and probably, annoyance. I have, &c, John Aitken. W. 11. Pearson, Esq., Commissioner Crown Lands, Invercargill.

No. 10. Mr. Baker to Hon. W. Reeves. Inspector of Surveys Office, Invercargill March 4, 1872. Sir,— In compliance with your verbal request, I have the honor to submit for your information, a short report on the surveys that will have to be undertaken in Stewart's Island, to enable immigrants to locate themselves on their various sections, on the land that will be set apart for them under the " Otago Settlements Act, 1871." As you are aware, the mountainous nature of the country will probably cause the immigrants who may be located there to spread themselves over a very considerable area, each selecting their own land in some sheltered bay or valley, according to the nature of the pursuit they intend to follow; whilst the dense timber, with which the greater part of the Island is covered, and the abruptness of the intervening headlands, will render it impossible, unless at a very great cost, to make a continuous survey extending over the whole of the area, throughout which it is intended these immigrants may select their land.

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Under these circumstances each selection, or rather the surveys in each little bay or inlet will have to be made complete in themselves, leaving tho collating of these into one general connected survey of the whole to some future period. The most important points of the Island, extending from Rugged Island, the extreme north-east point of Stewart Island to Breaksea Island, the easternmost point, have already been trigonometrically connected with the meridianal circuit survey of this part of Otago. This will render it comparatively easy to extend the meridian on which these surveys must be based, into the numerous bays and inlets with which this Island abounds. Thus, taking into consideration the detached nature of the surveys which will probably have to be executed, I have, after giving the question mature deliberation, concluded that to insure accurate and effective surveys, the woru; must be entrusted to a surveyor in whom implicit confidence can be placed, as no complete check can be kept over surveys so scattered as those will at first be, and which, from the nature of the country, cannot be based on minor triangulation previously executed. I think, therefore, a district surveyor ought to be appointed, having an officer at the principal settlements, whose first duty it will be to act as land officer, to receive and record the applications of the intending settlers, and forward them to whoever may have the control of the lands in question. Immediately upon the application being decided, the selector should receive a license to occupy the land selected, and the survey of the same could be undertaken when he was fairly established on his location, and in a position to give his time to cut the lines of his allotment. As it is intended to charge the cost of survey to the settler, this officer must receive a small salary from the Government, as it is impossible for him to wait for payment of his work until these settlers are in a position to pay for the survey of their land; but, receiving a small salary and a monopoly of the Government work, such as laying out village allotments —some of which, I apprehend, the Government will sell by auction, as town lands, to anybody who may wish to settle or invest in them —or the laying out of any land (at a fixed rate per acre) that may be purchased on the Island, he might be in a position to wait for payment by the immigrants for the survey of their selections, the cost of which might become a charge on the land (just like the Crown Grant fees), bearing interest payable two or three years after occupation. Settlers to act as their own line cutters. The settlers might be allowed, under certain restrictions, to cut their own lines, thus considerably decreasing the cost of survey to them. Permanent chainman required, ?vhich will enable surveyor to connect the surveys. In this case the district surveyor should be allowed one permanent chainman, it being impossible that each settler could perform that part of the work. He would then be in a position, when not otherwise engaged, to extend the true meridian into the various inlets and bays, and connect, by bearings from point to point, or by chained line across the narrow necks of land which so often divide these bays, the various surveys; thus, without 1 much cost, completing the survey, so that a reliable recordmap could be made of the whole. The manifest advantage to the Government would be, that the surveys being done by an officer appointed by and responsible to itself, it would have effective and reliable surveys, thus preventing those disputes which are certain to arise hereafter from a defective system, and it would have an officer on the spot who could act as its agent in all matters connected with the settling of these immigrants. He might also act as Registrar of Births, Deaths, and Marriages, and similar offices, for the General Government. Advantages of proposed method of survey to the settlers. The advantages to the settlers would be, that being allowed to cut their own lines, the surveys would be done much cheaper, and the surveyor permanently residing there, the survey could be undertaken whenever the settler could himself afford the time to perform his part of tho work—a great boon to a man just settling on his land. Another great advantage would be, having an officer on the spot, with whom he could lodge his application and otherwise refer to in connection therewith, he would be saved both time and money in visiting the main land. First outlay. I think the outlay to the Provincial Government would not, in the first instance exceed, say — Cost of erection of survey office ... ... ... ... ... £100 0 0 ~ Boat for surveyor ... ... ... ... ... ... 25 0 0 „ Office furniture, &c. ... ... ... ... ... 25 0 0 £150 0 0

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Probable yearly cost. The surveyor finding his own instruments and equipments, the probable yearly cost would not, I think, exceed— Salary to surveyor for acting as land officer, and connecting the surveys, making duplicates of plans, &c. ... ... ... £150 0 0 One chainman, say nine months, at 6s. per diem ... ... ... 69 10 0 Contingencies ... ... ... ... ... ... ~. 25 0 0 £244 10 0 Cost to settler. The cost to the settler would of course depend on the area of land granted to him, and its distance from the main settlement. Simplest method for Government to pay cost of survey, allowing it to remain a charge on the land. The most simple method would be for the Government to pay the whole cost of survey, allowing it to remain a permanent charge on the land, bearing interest for a certain number of years. This, however, would necessitate a much greater outlay on behalf of the Provincial Government in th« first instance. I have, &c, John H. Baker, Inspector of surveys, Southland district.