The Commissioner of Crown Lands, Otago, to the Secretary for Crown Lands.

Sir,—

I have the honor to enclose a memorial from certain tenants of Crown lands occupying the reserve on the east side of Princes Street, relative to which reserve a question arises whether it is a reserve for the Maoris or a reserve for a quay. The statements made by the memorialists are substantially true, and there can be no doubt that the rents paid could not be obtained if the land were now offered by auction. The memorialists have to put up buildings in many cases of a substantial character, hence they are necessitated to pay a high rent or abandon the improvements they have made. I am of opinion that on an average £3 per foot frontage would be a fair rent, and I have therefore to recommend that I be instructed to make such reductions as I may find advisable, not being less than £3 per foot, except in the case of sections 15, 16, and 17, which are not worth more than £2 per foot frontage.