SIR,-I have the honor to submit a report of the transactions connected with the Ordnance and Admiralty Lands for the fiscal year ended 30th June, 1888.

The schedules annexed, marked A, B and C, respectively, show the extent of the monetary transactions during the year, and exhibit a very satisfactory increase in the receipts over those of the preceding year.

(A.) Statement of sales.-But few sales have been made during the year, the proceeds amounting to 88,254.46, of which sum $7,954. 16 has been paid. At Grand Falls, Victoria County, New Brunswick, 10 lots (area 65 acres), were sold for $400. In the city of Kingston a block of land comprising an area of 3172 acres and forming part of what is known as the "Herchmer Farm" was sold to the "County of Frontenac Agricultural Association" for the purposes of a show ground, for the sum of $3,500 cash. In the city of Toronto a small piece of land, one-fourth of an acre, was sold to the Trustees of the "Comsumers Gas Company of Toronto," for $1,000 cash. In the city of Ottawa 17 ordinary town lots and three-fourths of a lot have, by the payment of $3,354. 46, made by the respective lessces, been converted into freehold, in accordance with the terms and conditions contained in the original leases granted by the Principal Officers of Her Majesty's Ordnance.

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(B) Statement showing the several localities of Ordnance properties on account of which moneys have been received. On the 19th January last, an Order in Council was passed authorizing the issue of a lease to Mr. David Chalmers, of part of lot No. 1 (15% acres), in block B, in the town of Owen Sound, for quarrying purposes, for a term of ten years, at an annual rental of $150, payable half yearly in advance. Rondeau Point ("Pointe aux Pins "), in the County of Kent, Ont., the fallen timber, of little value, was sold to Mr. John Witherford, for the sum of $41, and at the same place the standing timber, average small, was, by authority of an Order in Council passed on the 8th March last, sold to Mr. T. L. Pardo, for the sum of $500. In December, 1887, 554 ties, which had been illegally cut on the "Naval Reserve," known as lot No. 13 in the 11th Concession of the Township of Vespra, in the County of Simcoe, and had been delivered to the Northern and North Western Railway Company by one Thomas Traviss, were sold to the said company for $99.72, (at the rate of 18 cents per tie).

(C.) Statement of amounts received (monthly) during the fiscal year. Total receipts $16,238.48, being $11,527.21 in excess of the receipts of the previous year.

I am pleased to be in a position to state that since the close of the fiscal year the receipts of this branch have been equally satisfactory. For the five months ended 30th November they amounted in the aggregate to $29,725.31, as against $13,044.66, received during the corresponding five months of last year, showing an increase of $16,680.65.

There are a number of vacant lots situated in the City of Ottawa and at Kingstor, Amherstburg, Fort Erie, Prescott, Sorel, Chambly, Quebec, Vespra, Edmundston and Dalhousie, the sales of which will in the future produce a considerable revenue,

It is my intention to submit for your consideration at an early date a scheme for the disposal of these properties. The valuable water power and the premises known as the "Old French Fort" attached thereto, situate at Coteau du Lac, formerly leased to Mr. G. I. Beaudet, are now unoccupied. I respectfully recommend that a lease of this property for a term of five or more years be offered to public competition in the course of the ensuing spring.

The work of this office has greatly increased during the year. 692 letters were received during the fiscal year; for the same period 726 letters (in addition to a number of reports) were written. Upwards of 300 notices and statements of account were prepared and forwarded to tenants and purchasers in arrears. 7 leases were issued; 64 fiats for Letters Patent prepared; 51 assignments registered, and 181 warrants issued for the Bank of Montreal at Ottawa to receive moneys.

There are at the present time about 1,100 accounts open in the books of this office with the respective purchasers and tenants of Ordnance Lands situated in the Provinces of Ontario, Quebec, Nova Scotia and New Brunswick.

I regret to say that many of the tenants and purchasers of Ordnance Lands are heavily in arrears, and that it has been found necessary to place a large number of accounts in the hands of the law officers of the Crown for collection. In certain cases sales have, for good and sufficient reasons, been cancelled, and the several properties included in the said cancellations have been resumed under the provisions of the Act 23 Vic., cap. 2, sec. 20.

To the details of the work already given, may be added the consideration of conflicting claims, errors in surveys, preparation of numerous and varied reports, &c., &c.

The staff of this office consists of the clerk in charge and two assistants.

I have the honor to be, Sir,

Your obedient servant,

WILLIAM MILLS,

In charge of Ordnance and Admiralty Lands.

A.

STATEMENT of Sales made during the Fiscal Year ended 30th June, 1888.

STATEMENT showing the several Localities on account of which moneys have been received during the Fiscal Year ended 30th June, 1888.