VIII. Value of the Lease.

The rough sketch given of the returns to be afforded to the lessee could hardly be taken as a basis for fixing the page 19 value of the lease. Evidently the Colonial Government must be prepared to allow considerable profit in order to induce capitalists to enter into an affair of such magnitude, and it rests with them to fix that value. However, it might not be considered as too far intruding into the matter to submit that the grant of such a lease could be made on terms to approach the present value of the forest, calculated above at thirty millions sterling. For instance: that a considerable sum of money should be paid to the lessor as may be arranged, besides which a royalty, averaging for all species of timber say 3s. on every 100 superficial feet (ready for the market) obtained from the forest, should be paid; the said royalty to remain at the average amount of 8s., notwithstanding any increased value of the timber.

The out-turn as put down at 15,000 superficial feet per acre, and the royalty being fixed at 3s. per 100 feet, would return an amount of £22 10s. per acre, and £22,500,000 for the total area. Should the out-turn in timber be more or less than 15,000 feet per acre, the lessor would benefit or lose accordingly.

The system of a royalty instead of an annual fixed rent is equitable, and would facilitate the intended transaction, as affording at the head-quarters of a Company a most efficacious control over the operations of their agents in the colony.