Cl.— lα

12

They could not be expected to be influenced by general considerations of policy as to limitation of holdings and the prevention of aggregation. Some were not altogether opposed to the Board acting as agent only to lease their lands, the fee-simple remaining in themselves, but preferred if possible to do the leasing themselves The President of the Board (Mr. T. W. Fisher) explained that the survey of any block for settlement was done at the Board's request by the Chief Surveyor for the district, and the roading by the Chief Engineer of Roads. The cost was advanced by the Government and secured on the land and rents, on the same principle as loans to local bodies. The surveyor's report always guided the Board in determining the size and upset rentals of sections to be offered. With regard to Ohotu, there was an understanding that any expense over £8,000 for survey and roading would be borne by the Government, as the roading and settlement of Ohotu would benefit adjoining lands owned by the Crown. No figures were yet available to show the actual cost to the Board of preparing Ohotu for settlement, and this delayed the disbursement among the'beneficiaries of the rents already collected, amounting to nearly £3,000 per annum. Until those figures were available no comparisons could be properly made with the system of lease by direct negotiation between owners and lessees. As to limitation of holdings and prevention of aggregation of leases of lands vested in the Board, although no one lessee could hold more than 2,000 acres in any one block offered, there was nothing to prevent the lessee of such an area, or of any larger area, from tendering for and obtaining a lease of a further area of 2,000 acres in any other blocks. The area vested in the Board as shown in the accompanying schedule is 115,955 acres, of which 96,974 acres were vested voluntarily by deed of trust and the rest by Parliament (section 3 of " The Maori Land Claims Adjustment and Laws Amendment Act, 1904 "), or by Order in Council for Native townships or for Maori occupation and settlement. The area leased, according to the figures supplied to us by the Board, is 58,476 acres, at ah annual rental of £3,124. The area now cut up and ready to be offered for leasing is, roughly, 24,000 acres, being balance of the Ohotu Blocks and the whole of Morikau 2, on the Pipinki-Raetihi Road. It is anticipated that the average rentals likely to be obtained for the latter will exceed Is. 6d. an acre. We fully expect that with the assistance of the Survey and Road Departments the whole of the lands now vested in the Board will, within twelve months, be in profitable occupation. Morikau 1, a block vested in the Board for Maori settlement, was investigated by the Commission. This lies between Morikau 2 and Ranana, and is reported to be land of excellent quality, almost wholly pastoral, lying to the east of the Hiruharama Settlement. The owners have always desired the land to be reserved for their use and occupation. It is now vested in the Board, and the question for consideration is, What course is advisable to secure that the land should be properly farmed by the owners ? There was a diversity of opinion among the owners who gave evidence before the Commission. Some wished the land to be cut up into family holdings, which might be leased or farmed as the respective families might think fit. Others simply desired the land to be made inalienable. All deplored the lack of capital to bring the land under cultivation. On the other hand, there was a distinct demand for an opportunity to be given to some of the owners to farm, and an old resident, well acquainted with the local conditions, thought that if the block were cut up into small farms many Maoris would come forward and take it up, but they would have to be assisted, financially to do any good. The President of the Board said that the settlement of Maoris on their own lands might be deemed an experiment. The Board was bound by the law, whose provisions were not elastic enough to permit the Board to farm the land for the owners. It could only lease to Maoris, and in leasing could not even give preference to the owners, or to those who had clearings and other improvements on the block; further, as trustees, the paramount duty of the Board was to