In compliance with the instructions conveyed in your minute on the letter of Mr. Mackay's, 65/25/13, I have the honour to furnish the following report on the state of the Native reserves in this district, with tabular returns of each class. I have preferred adopting those forms, as they were furnished to the various Commissioners by the Government in or about 1859, and convey all the information required in a more concise manner than a mere official letter could do.

Previous to the passing of "The Native Reserves Act, 1856," the reserves, (which consisted only of those made by the New Zealand Company) were under the management of Colonel McCleverty, D. Wakefield, Attorney-General, and Mr. St. Hill, R.M. On the 16th March, 1858, a Commission was issued by Governor Browne to Messrs. St. Hill, Carkeek, Hutton, Strang, Tamehana te Rauparaha, Matene te Whiwhi, and Rawiri Puaha, in accordance with clause 1 of the Act. Mr. Wardell's name was subsequently added to the list.

The active management of the reserves was usually undertaken by Messrs. St. Hill, Strang, and Carkeek. For some time previous to the session of 1862 these gentlemen had frequently impressed upon Government the necessity of other arrangements being made, and tendered their resignations; page 54as, holding most important official appointments, they considered that their duties as Commissioners could not be carried out effectually. For this reason mainly, I believe, the Native Reserves Amendment Act of 1862 was prepared by the Government, and passed by the Assembly.

At the close of the session my services as Surveyor of Native Reserves and Lands in the province were accepted by the Government, who at the same time intimated to me that such office would be accompanied with that of Commissioner under the Act of 1862. At the same time the Government accepted the resignation of the Commissioners appointed under Act of 1856.

Present Commissioners in the Province.

The Commissioners in the Province of Wellington now consist of—Myself, Wellington (district undefined); W. Buller, R.M., Whanganui (but previous to Mr. White's removal he was appointed Commissioner for Central Whanganui, while Mr. Buller held a similar office for Manawatu).

Classes of Reserves.

These are shown in the tabular returns already mentioned to consist of—(1) Town-acre reserves, New Zealand Company's country sections; (2) Colonel McCleverty's allocation reserves, taken from those general ones made by the New Zealand Company, and with additional country lands (unselected at that time by Europeans) given to Natives as compensation for surrounding various cultivations on selected lands; (3) Reserves brought under the Act by assent of Natives; (4) Reserves in Wairarapa and on the West Coast, made by or for, on purchase or sale of different blocks, but over which the Commissioners, past and present, have but little jurisdiction. Of this latter class no return is furnished.

Management of Classes.

Class No. 1, Town. — The remaining original town-acre reserves, after deducting Colonel McCleverty's awards, and the acres granted by Sir George Grey as hospital and college endowments, are managed by the Commissioner for the time being. For proceeds of these reserves see tabular return.

Class No 1, Country.—The same remarks apply. (See tabular return.)

Class No. 2, Town.—(Colonel McCleverty's allocation.)—These reserves are let by the Natives independently of the Commissioner, in accordance with the opinion and instructions of the Attorney-General (Whitaker), given to the late Commissioner. They are held by Te Aro, Pipitea, Waiwhetu, Ngatitama (Ohariu), and Tiakiwai Natives, under registered deeds made by Colonel McCleverty on behalf of the Governor. I have no means of ascertaining the amount of income derived. (See Return No. 2.)

Class No. 2, Country.—(See Remarks No. 2, Town.) In many cases I have been unable to ascertain the annual rental received by the Natives. As I have already stated, they are let independently of the Commissioner. So far as the information given to me by the lessees and the Natives goes, I can account for £558 10s. received by them annually as rent for country lands, but this is probably £200 or £300 below the actual rentals.

Before proceeding to Class No. 3, I must briefly mention that certain original town-acre reserves were, in 1851 and 1853, conveyed by His Excellency Sir George Grey to certain trustees as an endowment for the hospital and a proposed grammar school. As I have already made a separate report on one of these cases, it is not necessary that I should further allude to them.

Class No. 3 are those reserves made by Natives on the sale of a block of land. Over such reserves the Native title has not been extinguished, and they cannot be legally dealt with unless brought under clause 14 of Act of 1856, i.e., the Native assent to the land being under the Act. The Native Land Purchase Ordinance of 1847 prohibited the renting of such lands. Mr. Searancke, Land Purchase Commissioner, was the first officer appointed in this province to obtain assent under that Act. I am not aware that Mr. Searancke acted in any case. In 1863 a case occurred of certain Natives (holding title under Colonel McCleverty's deeds) wishing to sell a portion of a reserve. (See Hunter's papers.) Mr. Searancke having left the province, I was appointed to succeed him in that office. It is with great pleasure I am able to inform you that (as per Return No. 3) the sum of £200 per annum is now legally received by me as rent for such reserves, and paid over to the Natives of Porirua, &c., being for a small portion only of their valuable lands, payments being made on or about the proper rent-days. I should much wish to see the assent system more generally carried out, and never miss an opportunity of urging its adoption. It insures their, receipt of the rents, as the Commissioner can sue or re-enter, and put a stop to the old system of advances, or the rent being paid by £2 now, a blanket on account, and so on, without any system of regularity.

Rental, past and present.

I may here notice that the annual rental received by the late Commissioners at the time of their resignation was £88 for the following leases: No. 1,250 acres, realized £30 per annum; No. 2, 200 acres, realized £20 per annum; No. 3, 200 acres, realized £30 per annum; No. 4, 100 acres, realized £8 per annum: total, £88.

Comparison may be made between this sum and that which I have before mentioned (£69 6s.) as being the actual receipts at present for Class No. 1, town and country reserves. I therefore-beg to state that the land comprised in Lease No. 1 has been sold; products of No. 3 paid over to Hemi Parai (see Return No. 1, country); No. 4 sold; so that I have only the amount of £20 (see Return No.) derivable from the rents of the late Commissioner towards the return of £69 6s now furnished by me.

Expenses of Native Reserves Office.

In 1862 my services as Surveyor of Native Lands and Reserves were accepted by the General Government, as already stated, with the addition of the office of Commissioner of Native Reserves. The one pay for these two offices is, I imagine, a charge against the fund for Native purposes. A secretary, interpreter, and receiver of rents (the same person) was appointed by the first Board, that of 1848, and has been confirmed by their respective successors, I has been held by the following page 55gentlemen: Messrs. Smith, De Vœux, Cheeseman, Buller, and E. Baker. On my succeeding to the Commissionership the Government of 1862 sanctioned the continuance of this office, then held, by Mr. Baker, at the same rate of pay—viz., £25 per annum—and this is the only direct charge against the proceeds of the reserves in the Wellingon District.

In short, the present annual account stands as follows: To rent received, £299 6s.; expenses, £25: total, £274 6s. Mr. Baker's services as secretary are not often available (owing to his duties in the Supreme Court), excepting in translating Native letters; but very frequently disputes arise as to the division of rents received by Natives under Class 2, when Mr. Baker or myself is usually called upon to act as arbitrator, and the money is "impounded" until the dispute is fairly settled.

But to return to Class No. 4, i.e., reserves made by or for on the purchase of a block. In the first case such reserves will usually be found to be on the best sites for cultivation (present or future), eel-weirs, or some other natural advantage; in the second case the Commissioner purchasing is supposed to make advantageous reserves for perhaps the most meritorious of the sellers for the common good of all, or for some good and sufficient reason. In Wairarapa the reserves made for Natives have been principally granted (though grants not issued see return of grants); but the generality of what are called reserves made by them are not such, but are exceptions from sale, consequently Native land. Tracing on a map the boundaries as set forth in a deed or sale explains it at once. The few reserves in the Wainui Block, West Coast, are principally by, with one or two exceptions, which have been brought under the Act. The Manawatu, Rangitikei, &c., reserves are of course under Mr. Buller's jurisdiction.

Native Reserve Accounts.

The accounts of Native Reserves Fund were never published by the late Commissioners as required by the Act, but were done so by myself up to the 30th September, 1864. The transfer of the management of that fund led me to doubt at first whose duty it was to prepare them, but they shall be forwarded as soon as possible.

General Remarks.

Much has been said by persons high in authority against the sale of any reserve under any pretext whatever—that it will end in depriving the Natives of their only means of subsistence,. &c., As a general principle I would never advocate the sale of a single acre of reserve if it is suitably selected, either in point of value, present or future, or adapted for their own occupation, such as the valuable reserves in the Lower Hutt. But when I see reserves selected twenty-six years ago, which even now are barely accessible, and at any time perfectly unsuited to a Native, my general principle gives way: let such reserves be sold at the market price, and the proceeds be reinvested.

I am aware that much has been said about the sale of two sections in the Lowry Bay District to Messrs. Fitzherbert and Dick. Now, the first is a perfect morass, into which a 10-foot pole could be easily inserted; the second is almost barren clay, which will not grow a potato. Surely the sale of such reserves as these, if the proceeds are properly managed, is a benefit to the Natives.

But will the issue of Crown grants in their present form (without any restriction clause as to sale) for these reserves prove a benefit to the Natives? I am afraid not; the latter is or will be the greater evil. Far better trust to the judgment and discretion of a Commissioner, who ought to know the nature of every reserve in his district, to recommend a sale, than to put an uncontrolled power into the Natives' hands. Vide the late case of Ropiha Moturoa.

Many points and much information may in this lengthy report have been omitted, but to which I trust the Native Minister will call my attention; and I can only regret that, owing to various circumstances, its completion has been delayed.