H. H. SMITH, Esq.,

No. 4.

DOMINION LANDS OFFICE,

NEW WESTMINSTER, B.C., 1st November, 1888.

Commissioner of Dominion Lands,

Winnipeg, Man.

SIR, I have the honor to submit the following report on the matters coming within the purview of this agency relating to the Dominion lands within the railway belt in this Province.

The returns for the Departmental year ended the 31st of October last, show that 290 homesteads, covering an area of 45,239 acres, have been entered, that 43 homestead sales, aggregating 6,208 acres, have been completed, at $1 per acre, and 50 general sales, aggregating an area of 8,210 acres have been made, at $2.50 per acre, and that 46 entries have been cancelled on applications for inspection and the lands so released regranted to the applicants.

There has also been a considerable increase of business of a miscellaneous character which does not appear in the tabulated returns made to the Inspector.

The reservation of the undisposed of agricultural lands in New Westminster District, made by the Deputy Minister of the Interior and yourself in July last, for the sole use of actual settlers, has met with the unqualified approval of all classes of the community, except, if I may be allowed the expression, the professional land speculators.

The position taken by the Provincial Government in dealing with the lands claimed by both the Dominion and Provincial Governments, and formerly under special reserve for the purposes of the obsolete Sumass Dyking Act, 1878, before the question of title had been finally decided by a competent judicial tribunal and before a definite concession of any of these lands had been made to the Province, has not only been a source of great embarrassment to me in dealing with the settlers, but has proved a source of great anxiety and uncertainty to the settlers themselves, it having placed them as it were between two fires, under which they were not satisfied that they would be safe with either claimant. It is to be hoped, however, that this vexed question will be speedily set at rest, more especially as the Provincial Government have not the shadow of a title to the lands in this reserve, and the Crown grants issued by that Government to settlers, without being confirmed by Act of the Dominion Parliament, are not worth the paper they are written upon. I have however assured the squatters on these lands that should the question of title be finally settled in favor of the Dominion Government, their claims would be duly investigated under the provisions of the Dominion regulations, and be legally and equitably dealt with accordingly.

The surveyed agricultural lands in the New Westminster District, as you are aware, are of limited extent, and the tendency of immigrants being to seek locations as near the Pacific coast as possible, renders it necessary that all lands capable of being settled upon should be surveyed as early as possible. I would therefore respectfully suggest that a party be detailed not later than the 1st April next to survey a tract of land, situate in a north-easterly direction from the Mission, about ton miles from the Canadian Pacific Railway. I am informed by explorers and hunters that the tract consists of a well sheltered valley of the most fertile character, fronting on Stave Lake, and containing an area variously estimated at from 40,000 to 60,000 acres, lightly timbered with alder and vine maple, easily cleared and well watered. Several settlers have lately located in this valley and more are desirous of doing so. Squatting, however, in advance of survey, particularly in a wooded