Claims upon lands taken over by the province of auckland from the general government.
Mr. James Mackay to the Hon. the Colonial Secretary.

Referring to my Memorandum of the 7th instant, on Sir George Grey's letter of the 19th May last, addressed to you on the subject of land purchases, I have the honor to transmit herewith a return showing approximately the value of the property held by the proprietors of saw mills within the District of Hauraki. This information has been principally obtained from the mill-owners themselves, who have given me every facility in their power to complete the return. The totals are cost of erecting fifteen saw mills with working plant, £106,855. Payments to Natives for timber, including in some cases cost of survey of the blocks on which it is growing, £42,045. Value of logs in stock, £64,982. Total value of Mills, working plant, standing forest, and logs in stock, £209,732. The annual average production of timber is valued at £120,750. The number of men employed in these mills is 678. Vessels employed in the carrying trade, 27, manned by 82 men.

These figures are slightly different from those mentioned in my memorandum of the 7th instant, that was, however, my own estimate before the return was completed; the alteration is so small as to be hardly worth noticing.

The more I consider the scheme proposed by Sir George Grey, to give compensation to the mill owners for their rights, the more I feel convinced that it is impracticable and detrimental to the best interests of the country. The goldminer is one of the largest consumers of sawn timber, and his industry would be retarded and suffer loss if the sawmills ceased to supply his demands.

I previously drew attention to the fact that supposing the proprietors of sawmills were bought out in the manner suggested by Sir George Grey, the Colony or Province would derive no equivalent advantage, because the system of granting timber licenses, heretofore pursued by the Provincial Government, gave but small receipts, when compared with the value of the privileges granted. In proof of the correctness of my assertion, I enclose herewith a return compiled by Mr. Tole, the Commissioner of Crown Lands, showing the amount paid for timber licenses over Crown Lands within the Coromandel Peninsula, and the District of Hauraki, during the fifteen years commencing 1st July, 1860, and ending 30th June, 1875. The total is £192 10s.

I have no hesitation in saying that any mill owners would under other circumstances have paid to the natives for the timber cut on the Mahakirau Block alone, four times the total sum shown by Mr. Tole as having been paid to the Crown for licenses over the whole of the blocks specified by him.

I enclose copies of correspondence with the Mercury Bay Saw Mill Company respecting a proposed reduction of the term of years for which they hold the right to cut timber on the Taranoho and Kaimarama Blocks.

It has been stated recently that some of the deeds of grant or leases of timber held by sawmill proprietors confers rights other than those required for the cutting and removal of timber from the forests to their mills. If such privileges have in any case been granted by the native owners, they have not been exercised or desired by the lessees or grantees, and would, I believe, be relinquished at once, thereon application of the Government. I have discussed the question of ordinary agreements and leases on all their bearings with the principal owners of timber residing here, and am convinced they are willing to make favourable terms with the Crown, and merely desire to be confirmed in their claims to Kauri timber, with necessary easements in the shape of roads and water rights, to enable them to convey it to their mills, with the privilege to cut any other timber or firewood required for their own use. If these rights were secured and confirmed to them, they would be perfectly satisfied; and there would not be the slightest danger of any future misunderstanding arising between them and the mining population, who are the only persons liable to have any conflicting interests, as the land on which Kauri grows is unfit for agricultural purposes and settlement.

Enclosure 1.

Return showing approximately the Value of Saw Mills and of Forests and Timber, owned by Sawmill Proprietors within the District of Hauraki, on June 30, 1875.

Name of Owner.	Cost of Mill and Plant.	Date of Erection of Saw Mill.	Situation of Timber Purchased.	Date of Purchase of Timber.	Amount paid for Timber, including Surveys of Land.	Value of Logs in Stock in Bush or at Mill.	Estimated Present Value of Mills, Plant, and Standing Forests.	Total Value of Mills, Plant, Standing Forests, &Timber in Stock.	Average Number of Men employed in Mills & Forests.	Average Number of Vessels employed in Timber Trade.	Average Number of Men employed in Vessels.	Average Amount of Timber Cut Annually.	Average Annual Value of Timber Cut.	Remarks.
	£			£	£	£	£				Feet.	£
1. Tairua Saw Mill Company	23,000	1864	Tairua	1864	3,000	5,500	26,000	31,500	100	3	10	3,000,000	13,500	Forests are extensive, but timber difficult to get out to mill.
2. Mercury Bay Saw Mill Co.	9,000	1863	Mercury Bay	1863	5,500	8,666	12,000	20,666	70	2	6	2,500,000	11,250	A good deal of the timber has been cut; but there is work for several years to come.
3. Schapp and Ansenne	4,500	1863	Mercury Bay	1863	3,750	5,000	8,000	13,000	35	2	6	1,500,000	6,750	Same as above.
4. C. A. Harris	15,000	1862	Whangapoua	1862 to 1870	2,500	15,000	40,000	55,000	125	6	18	5,000,000	22,500	Many years' cutting still in forests; large quantity shipped annually to Middle Island, South Sea Islands, and New Caledonia.
5. C. A. Harris	10,000	1865	Whangapoua	1862 to 1870	4,025	15,000	40,000	55,000	125	6	18	5,000,000	22,500	Many years' cutting still in forests; large quantity shipped annually to Middle Island, South Sea Islands, and New Caledonia.
6. Cruickshank and Co.	4,500	1863	Kennedy Bay	1863	2,600	3,000	5,000	8,000	40	2	6	2,000,000	9,000	Timber will be cut out in a short time.
7. R. Cashmore	5,000	1862	Cabbage Bay	1862	2,500	3,400	3,000	6,400	20	1	3	1,000,000	4,500	Forests nearly cut out.
8. Pollard and Co.	2,500	1865	Port Charles	1863-64	1,200	2,500	4,000	6,500	30	2	6	1,800,000	8,100	Forests not very extensive; will only last a few years.
9. Charles Ring	2,700	1859	Coromandel	1859	1,000	150	2,000	2,150	4	1	2	500,000	2,250	Mill generally idle; forest being nearly all cut.
10. A. J. Cadman	3,500	1865	Coromondel and Matamataharakeke	1864 and 1872	1,150	1,000	5,000	6,000	20	300,000	1,350	Coromandel timber nearly cut out; mill will probably, be removed to Matamataharakeke.
11. W. C. Daldy	8,000	1865	Waikawau and Mata Rivers and tributaries	1864	2,500	3,000	7,000	10,000	39	2	6	2,000,000	9,000	Forests extensive; a great deal of timber has been cut
12. Shortland Saw Mill Co.	9,291	1872	Waiwhakaurangi River and tributaries	1869	5,427	11,666	15,000	26,666	50	1	3	3,500,000	15,750	This mill has not hitherto been in full work; timber chiefly consumed at Grahamstowm and Shortland; forests extensive; timber difficult to get to mill
13. John Gibbons	4,700	1874	Kirikiri, and on bank of Waihou and Ohinemuri Rivers	1871-72 2,200	4,750	6,000	10,750	65	2	6	1,900,000	8,550	This mill outs white pine occasionally as well as kauri.
14. Hauraki Saw Mill Co.	3,964	1869	Turua Forest, Waihou or Thames River	1868	3,843	650	10,000	10,650	60	2	8	2,000,000	6,000	This mill cuts white pine only. A great part is shipped to foreign markets, the remainder is consumed at Grahamstown and Shortland; forest extensive.
15. Holdship and Co.	1,200	1868	Otuturu Block	1870	850	700	1,750	2,450	20	1	2	500,000	2,250	This mill is situated at Grahamstown, and is connected with window-sash, door-making, and wood-dressing machinery; the product of which is consumed in the district.
Totals	106,855				42,045	64,982	144,750	209,732	678	27	82	27,500,000	120,750

Enclosure 2.
Mr. James Mackay to the Commissioner of Crown Lands, Auckland.

As I am procuring, for the information of the General Government, a return respecting the timber trade of this Province, I have the honor to request that you will be so good as to supply me with a return showing the number of timber licenses issued within the limits of the Coromandel Peninsula and District of Hauraki from the 1st July, 1860, to the 30th June, 1875, showing the block for which such license was issued, and the fees received in respect thereof, with the name of the person in favour of whom it was granted.

Enclosure 3.
The Commissioner of Crown Lands, Auckland, to Mr. Mackay.

In compliance with the request contained in your letter of yesterday's date, I have the honor to enclose a return showing the number of timber licenses issued within the limits of the Coromandel Peninsula and District of Hauraki, from the 1st July, 1860, to the 30th June, 1875, together with the name of the block for which such license was issued, the fees received in respect thereof, and the names of the persons in favour of whom such licenses were issued.

Sub-Enclosure to Enclosure 3.

Return showing the Number of Timber Licenses issued within the Limits of the Coromandel Peninsula and District of Hauraki, from the 1st July, 1860, to the 30th June, 1875, together with the Name of the Block for which such License was issued, the Fees received in respect thereof, and the Names of the Persons in favour of whom such Licenses were issued.

Total Amount of Licenses issued.	Name of Block for which License was issued.	Fees received in respect of License.	Name of Person to whom License was issued.
		£	s.	d.
Nineteen (19).
	Awakanae	5	0	0	Heron, Andrews, and Matthews.
	Hoho	2	10	0	Thomas Carina.
	Ditto	5	0	0	Ditto.
	Purangi	2	10	0	Neill and Savage.
	Mercury Bay	2	10	0	Vincent De Moitch.
	Purangi	5	0	0	Neill and Savage.
	Whenuakite	5	0	0	Paraneha.
	Mahakirau	5	0	0	George Strong.
	Hoho	5	0	0	Joseph Baker.
	Whenuakite	5	0	0	Archibald Smith.
	Mahakirau	50	0	0	Thomas Sullivan.
	Hoho	5	0	0	John H. Graham.
	Te Kauri	5	0	0	Thomas Carina.
	Ditto	5	0	0	George William White.
	Purangi	2	10	0	Thomas Carina.
	Te Kauri	2	10	0	John F. Connolly.
	Mahakirau	25	0	0	Thomas Sullivan.
	Ditto	50	0	0	Ditto.
Hoho	5	0	0	Antonio Joseph.
		£	192	10	0

Enclosure 4.
Mr. James Mackay to the Secretary, Mercury Bay Sawmill Company.

Referring to the conversation I had with you some months ago respecting a proposed modification of the conditions of the timber leases held by the Mercury Bay Sawmill Company over the Taranoho and Kaimarama Blocks, in the Mercury Bay District, by reducing the term of the leases from ninety-nine years to twenty-one.

page 320

I have the honor to request that you will be so good as to inform me whether the company are willing to make the proposed alteration.

Enclosure 5.
The Secretary Mercury Bay Saw Mill Company to Mr. Mackay.

In reply to your communication of 5th instant, and conversation held between ourselves, re leases of Kauri held by this Company, I am directed by the Directors of this Company to inform you that they have agreed to recommend to the Shareholders that the lease of the Kaimarama Block be reduced to twenty-one years, and the Taranoho Block to forty years. A meeting of shareholders will shortly be held, the result of which I will inform you of.