E.—4,

32

I may observe that the estimated market value of this reclamation is £8,000 an acre, which price it is fully expected will be realized at public auction. The area which has been already taken for the railway is two acres and one rood, no arrangement in respect of payment for which has yet been made. Probably the price which may be realized for the other portion of the reclamation might be deemed a fair basis upon which to arrive at a settlement. I have only to add the Provincial Government, having expended a considerable sum upon the reclamation in question, is desirous of recouping itself as speedily as possible. I have &c, .'.■.., J. Macandrew, The Hon. the Colonial Secretary, Wellington. Superintendent of Otago.

No. 3. Mr. C. C. Bowen to His Honor the Superintendent of Otago. Sir, — Colonial Secretary's Office, Wellington, 2nd May, 1876. I have the honor to state, with reference to the understanding arrived at in Wellington last session with the Secretary and members of the Otago Harbour Board, and your letter of the 29th February last, on the subject of the lands required for railway purposes southwards from Battray Street, Dunedin, that it is only now (the necessary Proclamation having been issued) that I am in a position to state the probable requirements for railway accommodation in the future. It was proposed and agreed to by the Harbour Board, on the passing of the Act, that one chain wide outside the present line of Crawford Street, all the way from Battray Street to the Anderson's Bay Eoad, should be reserved for the Southern Trunk Bailway, and, as there can be no doubt that at no very distant date the whole of that portion lying between Rattray Street and Jetty Street Wharves will be required for railway purposes, I need hardly point out that it would be extremely inexpedient to sell any portion of it at the present time. I have, &c., His Honor the Superintendent of Otago, Chas. C. Bowen, Dunedin. (In the absence of the Colonial Secretary.)

No. 4. His Honor the Superintendent of Otago to the Hon. the Colonial Seceetaey. Sir, — Superintendent's Office, Dunedin, 16th May, 1876. I have the honor to acknowledge the receipt of your letter of the 2nd May, 1876 (No. 198), on the subject of the lands required for railway purposes southward from Eattray Street, Dunedin, the contents of which I have noted. I have, &c, J. Macandrew, The Hon. the Colonial Secretary, Wellington. Superintendent of Otago.

By Authority: Q-iOEOE Didsbtjry, Government Printer, Wellington.—lB7B. Price Is. 3d.]