Enclosure in No. 40.
R. C. Babstow, Esq., R.M., to Mr. Commissioner Kemp.

I am somewhat puzzled to name what I should consider a fair price for Whangai. There are so many accidental circumstances to be taken into consideration, beyond the mere agricultural value of the land. I know that ten shillings an acre was offered them by a settler and declined. Of course the blocks, being already surveyed, enhances its value to the amount of cost of survey; then the whares, fencing, and clearing, in addition to its possessing by far the best landing and road for a large portion of the Kawa Kawa Block; I should estimate that an increased value of at least one shilling an acre would be given to quite 5,000 acres of that block by the Whangai piece belonging to Government, owing to the near contiguity of so much of it to the water-carriage, and a good sum would be saved in road-making; a great deal of future annoyance will be saved in the, way of cattle trespass when settlers shall have occupied that part of the country, by obtaining this piece which, from its being covered to some extent with grass, and well sheltered, will certainly tempt animals to it. I should think £200, or £250, would be a low price, if the land could be obtained for that sum.