0.—12.

6

SneiMsAci-: i\ Weight oi-' Kauri gum. The question of moisture contained in kauri-gum, and the consequent shrinkage in weight, is one concerning which considerable difference of opinion exists. Gum as bought on the fields is liable to varying shrinkages according to the condition in which it is marketed. This shrinkage is easily tested by air-drying the gum and comparing the weights before and after drying. In the case of some gums, however, no matter how well they may be dried, there is an almost, continual loss ol weight, and it is this class of gum that 1 refer to. Samples of different grades were cased up in the store at Auckland, and subsequently tested for shrinkage. The following tabulation shows the result of these tests. Each sample was well air-dried before being eased up.

French Mission. When the French Mission was in Auckland opportunity was taken to invite the commercial representatives of the Mission to visit the Government kauri-gum store, and a full inspection was made of the stocks of gum and of Dr. Maclaurin's salt vacuum process lor cleaning kauri-gum. The representatives of the Mission were very'much interested in the work of this Department and in the Government operations in connection with the industry. Samples of the various commercial grades of gum. were despatched to France through the High Commissioner, and we have since been notified of their safe arrival by letter from General Pau. New Legislation. It is suggested during the present session of Parliament to make certain amendments to the Kaurigum Industry Act, dealing principally with the issue of gum-brokers' and gum-diggers' licenses, and the extension of leases granted, under section 3of the Amendment Act of 1915. Full particulars of these have already been submitted to you. The license fees are proposed to be altered as follows : In respect of every special license the lee shall be 55., as at present ; in respect of every ordinary license the fee shall lie £5 ; gum-buyer's license. £1 ; and gum-broker's license, £5. ft is proposed that a gum-broker's license shall authorize the holder thereof, acting as the agent of the purchaser or the seller, or both, to buy and sell kauri-gum. Operations of the Department. In another part, of this report it is stated that probably £25,000 has been expended by private individuals and companies in the investigation of the kauri-peat-oil industry. I think that lam well within the mark in stating that probably another £25,000 has been expended in connection with gum producing and cleaning devices ; but it was not until this Department was set up in 1911 that the Government showed any practical sympathy with such matters or with the kauri-gum industry generally. In spite of anything that may be said to the contrary by men in the trade in Auckland, the work of the Department has been highly beneficial to the industry and the workers engaged in it ; and although the Department owes its existence in a measure to the exigencies ol circumstances arising out of the war, it should be remembered that it was one of the recommendations of t' c Royal Commission which reported on the kauri-gum industry in June, 1914, that a special Department should be set up to take charge of the industry. Whatever good work may have been done in the past, now that the war is over and conditions are getting back to normal there is great scope for the Department extending its operations with benefit to the State and to the large body of men supported by the industry. I have, &c, R. P. Grbville, The Hon. the Minister of Lands, Wellington. Kauri-gum Superintendent.

Grade. Dates of Weighings. Net Weights. Percentage of Loss at Last weighing. Remarks. Swamp chips .. 7/3/1910 3/8/1917 19/8/1919 Cwt. qr. lb. 1 3 16 I 3 11 1 3 8 3'7 It will be noticed that during the first seventeen months there was a loss of 5 lb. and during the next twelve months the loss was 3 lb., making a total shrinkage of 3'7 per cent, for the whole period. This sample was weighed once only anil showed, a loss of 49 1b. in about four years and a half, or 26'7 per cent. This grade was also weighed onoo only, the loss being 14J lb., or 8T per cent, in three years and a half. During the first two years and a half this sample lost 20ilb., and during tho noxt two years lost another 145 lb., a total loss of 16'8 per cent, for the period. For the first seventeen months a loss of 5J lb. was shown, whilst for the next two years the loss was only \! 2 lb., making a total shrinkage of 3:1 per cent, for tho three years and a half. During the three years and a half between weighings this grade lost 7 lb. weight, or 3'7 per cent. It is interesting to note that the loss on these black chips and on tho swam]) chips was identical. Swamp 3 30/3/1915 I 9/8/1919 1 2 15 I 0 22 20'7 Swamp nrrts . . 7/3/1910 19/8/1919 1 2 1 I 27 8'l Swamp 1 30/3/1915 3/8/1917 19/8/1919 1 3 13 I 2 20.', 1 2 53 10'8 Black nuts 7/3/1916 3/8/1917 19/8/1919 2 0 2 I 3 2fi I 3 23 3'I Black chips .. 7/3/1916 19/8/1.919 1 2 20 I 2 13 3'7