9

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(5.) Unless the storekeeper is the owner or lessee of the ground, there is no contract system between him and the digger. Where the storekeeper is the owner or lessee the question is answered under (4). (6.) The mode of payment for gum is cash in all cases, subject to deduction for payment of stores when supplied. We have found no evidence of the truck system in the ordinary meaning of the term. (7.) The fees for the right to dig gum are ss. per annum on ordinary Crown lands, and 10s. in State forests. The total fees thus collected between 3rd September, 1888, and 30th June, 1893, amount to £748 95., particulars of which appear in the Appendix. (8.) In making the following recommendations, we regret that as to the first two our opinions are not unanimous. The extent and grounds of dissent are shown in a memorandum following this report. Subject to this qualification, our recommendations are : — First. That clauses 230 and 231 of "The Land Act, 1892," referring to the issue of gum licenses, be repealed, and that it be enacted in lieu thereof: That no person of the age of eighteen years and upwards shall in future be permitted to dig kauri-gum on any lands, whether Crown, Native, or private, without holding a license to dig gum. The annual fee for such license to be five shillings, and the same to be issued only to holders of land within the colony under any tenure, or to persons who have resided not less than one year in New Zealand. That the net proceeds of such licensefees be devoted solely to create a permanent fund for the relief of aged and worn-out gum-diggers. The object of imposing this license-fee is fourfold: (1.) It will have the effect of preventing the gumfields from being rushed by a sudden influx of people, whose operations as diggers would tend to the premature exhaustion of the gumfields. (2.) It will restrict the output of gum, and so prevent the violent disturbances of the market which now so frequently occur. (3.) It will give relief to the local bodies in their charitable-aid expenditure ; and lastly (4.) It will establish a fund for the support of worn-out diggers, to the benefit of which they will be entitled by virtue of having created it by their own contributions, which does away entirely with the humiliating sense of being the recipients of charitable aid. Second. That an export duty of £3 per ton be levied on all kauri-gum shipped from the colony, and that the total proceeds from such export duty shall be devoted exclusively to the construction, metalling, and maintaining the Great North Eoad and its necessary branches, and that such road-works shall be under the control of the Government. The revenue derivable, on the basis of the export of kauri-gum in 1892 (8,400 tons), would realise about £25,000 per annum. If the gumfields, which ten years ago were spoken of as worked-out, and which to-day yield nearly twice as much gum as they yielded then, last but another ten years, the roads which can be constructed from this export duty will be such as to insure permanent settlement on most of the good lands to the north of Auckland, and which cannot possibly be occupied without such roads. Third. Our attention has been called to the damage done to the forests by digging for gum in them. There is no doubt that the gum-digger, if he finds the root of a tree in his way, will not hesitate to cut it through, quite regardless of the consequences to the tree. We think there can be no reasonable doubt that this practice must in time cause greater injury to the forests than can be compensated for by any benefit obtained; and we therefore recommend that the State forests should be altogether closed against gum-digging, which term, of course, does not include the. practice of procuring gum from the branches of the standing trees. Fourth. We have already incidentally mentioned the practice of ploughing for gum upon lands taken up either truly or only ostensibly for settlement. But the same thing has been done upon the open gumfields, and has caused loud complaint, both by reason of the unfair advantage which it gives the person who practises it over the digger whose only implement is his spade, and. because it obliterates the surface indications, as we have already explained. Fifth. It has been stated that a danger exists of the perpetration of a fraud which would prove very injurious to the kauri-gum trade. This is the admixture with kauri-gum of New Caledonian, which, although an inferior gum to kauri—being a variety of Manila—yet so much resembles the superior kind that we are assured that a sample of it worth only £2 might be taken for kauri worth £8. We understand that this matter has already formed the subject of a correspondence between the New Zealand Government and the Agent-General. To obviate this danger we indorse the suggestion of the witness who called our attention to it —that a very heavy import duty should be put upon New Caledonian gum, or any other sort likely to be brought to New Zealand for the fraudulent purposes above indicated. Sixth. We have already referred to this subject, and we only introduce it here for the sake of perspicuity. A strong feeling exists among the settlers on the subject, in the reasonableness of which we fully concur, and we are glad to find that the question is already receiving the attention of the Legislature. Seventh. It is unnecessary to add anything to our previous remarks on this subject. In now submitting our report to your Excellency, we desire to record our thanks to the numerous persons who have done what they could to facilitate our inquiry. Our best acknowledgments are due to those who have so readily responded to our invitations to attend our sittings, and who have given us so much evidence and so many pertinent suggestions, and particularly to those who have taken much trouble to compile for us valuable information and statistics. The officers and men of the Police Department have rendered us the most prompt and efficient services; and wherever we have been we have met with a universal desire to give us all possible advice and assistance. We have the honour to be, your Excellency's most obedient servants, J. Giles, Chairman. J. C. Firth. Gerhard Mueller. 2—H. 24.