(5.) Extract from letter of His Honor the Superintendent of Otago to the Hon. the Colonial Secretary.

Sir,—* * * I much regret that, while you neither deny nor admit the rumour alluded to, you express your approval of the action of the Waste Lands Board in declining to grant the application, and, as a necessary inference, your approval of the serious consequences which the action involves. These consequences are concisely set forth in the memorandum addressed by me to the Board, a copy of which is forwarded herewith, as also the Chief Surveyor's Report as to the quality of the land. I need scarcely say that the result of the Board's action will have a most page 32 injurious effect upon the labour market during the ensuing winter, if, indeed, it does not throw thousands out of employment. * * *