G.—7

2

far as one can say at present, will be this: The land and improvements in each lease will be valued as a whole at a capital sum, the improvements will then be valued separately; but the improvements must be substantial, in accordance with the interpretation of improvements in the regulations as follows (see section 30). The capital sum of the whole, as mentioned before, viz., the valuation of land and improvements, is first taken; then, to arrive at what rent will be required to be paid for the fresh or new lease, the valuation of the improvements only will be deducted from the capital sum of the valuation of land and improvements combined, and 5 per cent, on the net amount will be the rent to be paid. Take, for instance, a leasehold of five hundred acres, which is valued at the above process, at £8 per acre=£4,ooo net—then 5 per cent, of this amount, £200, will be the rent. These leases, then, when granted, will come under clause 8 of " The West Coast Settlement Eeserves Act 1881 Amendment Act, 1884." These fresh leases will contain the arbitration clause entitling the lessee to have an arbitration in case of valuation of improvements, and also dispute. They will also be under the Land Transfer Act, and will be registered in the District Land Eegistry Office—those in the Taranaki District in Taranaki, and those in the Wellington District in Wellington. Of course all this cannot be done without expense, which must be borne by the lessees. The first will be the cost of plan by authorised surveyor, where necessary, on old leases. The second, a fee for having unconfirmed leases investigated by the Commissioner. The third, fee for adjustment of surveys necessary for granting new leases. The fourth, fee for drawing up fresh leases. These fees will be fixed at such a rate as will just pay the departmental cost; and, as a criterion of some of the charges, I may mention that the drawing-up of the new lease will be £1, the registration of the same 10s., and the stamp duty will be according to the amount of rent to be paid. It would be a great matter if all this could be done so as to admit of the fresh leases commencing on the Ist July, 1885; and, with proper diligence on the part of the lessees, and provided the Survey Department afford every facility, which it will no doubt do, there should be no difficulty in having this accomplished by the date mentioned, viz., the Ist July, 1885. Questions and Answers. After valuation has been adjusted and substantial improvements assessed, will a lessee be entitled, if he choose, to receive the value of improvements in cash instead of continuing lease?— The lessee will only be entitled to receive such payment from an incoming tenant as is defined by the regulations under the Act of 1881 in their application to the leases granted between Hawera and Stoney Eiver. On a submission to arbitration by reference on a form supplied, will that reference contain power for the arbitrators to appoint their own umpire ?—The usual custom of arbitration will be observed. Will it be necessary for all lessees to memorialise for the appointment of a Commissioner ?— No. Only those whose leases have not been confirmed. The valuers will, he considered, take into consideration the fluctuations in the value of stock extending over a period of, say, three years. There will most likely be two valuers appointed by the lessor (the Public Trustee) —one for the district between Waitotara and Patea, and one from Patea to Hawera, who will not be Government officers, so as to be unbiassed; and the lessees should appoint valuers in a similar mariner. Does this Act affect single grantees ?—lt does. There seems to be a misunderstanding in the matter ?—lt affects all lessees within the confiscated territory. Up to what date does the power of confirmation extend ? —To all leases dated previous to the 24th September, 1881. The new leases will be for thirty years. I think all the business could be done by the end of June, and the new leases date from the Ist July, 1885. Is bush-felling considered a substantial improvement ? —A good deal of argument has taken place on this subject; but it is not considered as coming under the category of substantial improvements, as the lessee in leasing bush-land gets it at a lower rent as compared with open land, thus discounting its ultimate value at time of taking the lease; but there will be a direction given to the valuers specially on this head. Will it be optional for lessees whose leases have been confirmed to surrender at any time ? —lt will be necessary that all lessees on any one reserve should agree to surrender their leases at the one time. Suppose one of them does not agree ? —He will have to abide by the act as regards boundaries being adjusted, and will pay more or less rent according to the adjustment. If he owns a lease that overlaps another he must abide by the common arrangement. Can a lessee surrender his lease at any time and have a new one ?—The option lies with the Public Trustee whether a lease can be surrendered or not. If lease is surrendered lessee will get the opportunity of taking a fresh lease, or forfeit the improvements. Will the old tenant be allowed to go on at a low rent ?—That depends on the valuation upon which the rent is calculated, as I explained before. When the valuation is made of land and improvements, could not the land in the ordinary course of things be put up to tender if the lessee wished; and will not the lessee receive cash value for improvements from incoming tenant, or, failing any tender, have a right to take it at the price fixed by the arbitration ?—Yes. Can you give any information re overlapping of leases ; and would it not be fair for the person