The cost of the surveys in Otago has been, for the last two years, 1s 2½d and 1s 11d respectively. The Chief Surveyor of that Province in his annual report for 1867, says:—"The cost of the rural section survey nearly doubles that of any preceding year. Last year it was at the rate of 1s 2½d per acre, while in 1857 and 1858 the average was only 6d to 9d per acre. The cause of this is to be entirely ascribed to the present system of land sales, i.e., to free selection before survey. This free selection extends from the Waitaka to the Toetoes, and over this dispersed area the numerous and distant choice of settlers must be followed after by the surveyor, connected for record, and marked on the ground. The now extended privileges of settlers in their land applications cannot, therefore, be expected to be met by this Department at the same cost as previously, when complete blocks were surveyed, the sections marked on the ground, and thus prepared for sale after survey. It is evident, in the present system of selection before survey that the cost to Government must depend much on the sizes of the applications and their comparative dispersion—small and distinct selections costing more than large and close ones."

The expense per acre in Victoria for the year 1865 and 1866 has been at the rate of 13.77d and 12.66d for Government surveys, and at the rate of 7.22d and 7.36d per acre for contract surveys. The contract surveys have been for subdividing very large areas into smaller allotments which, lying conterminous, can be done far cheaper than detached sections under a free selection system.

The rate per acre allowed to the surveyors in New South Wales, under a similar system of survey to that at present in operation here, ranges from 4s to 3d per acre, and in addition to this £2 per mile is allowed for all lineal measurements which would make the rate higher than that at present paid in this Province.

The total area purchased under the "Southland Waste Lands Act, 1865" is 224,857 acres; of this 18,336 have been selected in sections, surveyed in the Hundreds, 161,313 acres have been surveyed by the District Surveyors leaving a balance of 48,718 to be surveyed during the present summer. 14,000 acres of this were only purchased last month, so I apprehend no difficulty in keeping the arrears worked up with the present staff of District Surveyors.

The rate of survey fees fixed by the Waste Lands Board will require to be slightly revised, the rate of the larger sections can be reduced a little, but that of the smaller ones must be increased, as they will not pay the surveyor a fair remuneration for his work at the present price, when they have to be surveyed in detached sections. This, I stated in a former report, would be advisable, and I do not think that such an alteration would increase the average rate.

The purchases in the Takatimo district, adjoining the northern boundary line of the Province, necessitated the laying out of that line, so I arranged with the Chief Surveyor of Otago, the method by which it should be done and with his concurrence, employed Mr Jas. Dundas to perform the work for the sum of £100—the Otago Government undertaking to pay one half of that sum. Mr Dundas has completed the survey to my entire satisfaction.

One hundred and fifty-one miles of main and district roads have been laid out during the past year; part of these road lines I have already inspected, and find as a rule, that the surveyors have been careful in selecting the best and most available lines of road to be obtained in the district. In a few instances I have found it necessary to instruct the District Surveyors to re-survey small portions of these lines, which, under the present system, must be done at their own cost. No survey is finally passed until I have been over the lines laid out, and I trust that very few cases will ever arise hereafter where the line of road will have to be altered from that at present reserved.

I must beg your Honor to cause a sum to be placed on the estimates for the repair of the Trigonometrical Stations erected many years ago in this Province. The Trigonometrical Stations which are the undisputed points of reference in all matters connected with surveys were originally in many cases erected on mounds to enable the surveyors to see over the rank vegetation which then covered most of the plains. The mounds have been destroyed by the cattle, and the actual post has been in many cases removed and destroyed; these of course, cannot now be replaced in position without considerable expense, but by