185 



" The object of the memorialists as expressed, was to obtain a cessation for 

 three years, or until the then existing depression had passed away, of the penalty 

 imposed for non-occupation of timber berths. Although the object sought was 

 professedly of a temporary nature, however, it would no doubt have been made a 

 precedent for seeking government interference in every fluctuation of the trade 

 thereafter. It would have been the first precedent that could be quoted since 

 the adoption of the new system, and therefore I shall state the reasons that 

 induced its rejection, as I conceive that upon the integrity of the system being 

 maintained in the future depends much of the prosperity of the trade. 



" It is to be observed that when the great depression occurred in the trade, 

 which began in 184-6, and from which it was about four years before it could be 

 said to have recovered, the ground rent system was not in force. The license 

 holders were at that time subject only to the payment of the amount of duty 

 accrued on the quantities cut ; they were then as now obliged to occupy every 

 year, but under pain of forfeiture of the right to renewal of license instead of the 

 penalty of an increased payment. 



" It was complained of this system that it favored monopoly, inasmuch as a 

 berth could only be proved unoccupied at a very heavy expense, and then it was 

 still subject to be repurchased by the former holder. The standard of occupation 

 (that is the quantity required to be cut to constitute occupation) was in 1845- 4 

 made too high, thereby having a tendency to force production. In obedience to 

 the cry of monopoly, then prevalent, notice was also given by the department, 

 about the same time there being then no statute upon the subject that 

 all the larger timber berths would be sub-divided in three years ; this also, 

 although never actually effected, had a tendency to force production, as license 

 holders were naturally desirous of making the most of their berths by cutting off 

 all the best timber in the interim. 



" Parties differed in opinion as to the exact amount of influence these rules 

 exercised upon the over-production, but it was generally admitted that they exer- 

 cised some influence in that way. At all events the result of the ruinous state of 

 the trade was that the government did afford relief in these particulars, the 

 notice of sub-division was withdrawn, the standard of occupation was reduced, 

 and finally the parties were allowed from year to year up to 1850 to hold their 

 timber berths without any condition of occupation at all, and without any pay- 

 ment where they did not choose to occupy. 



" The action of the government on the trade, during the periods of great pros- 

 perity and succeeding depression referred to, was thus in opposite extremes. It 

 therefore became expedient that a better permanent system of regulations should 

 be framed for the government of the trade, and the regulations of which the 

 ground-rent system is a part were finally the result. 



" By this system an annual ground-rent was imposed on timber berths, in 

 excess of the duty, as a regular permanent charge, and as a check upon mono- 

 poly it was provided, by way of penalty, that the ground-rent should double 

 upon each renewal of license on berths which had not been occupied during the 

 preceding season, and continue doubling every year, so long as the berths con- 

 tinued unoccupied. Thus the rent paid for the largest size of berth the regula- 

 tions permit in excess of all other charges is 6 5s., the same being payable 

 annually. 



" But upon non-occupation for one season the rent rises to 12 10s. upon 

 non-occupation for a second season to 25, for a third season to 50 -aad so on 

 (as the system was first introduced) without limit, but reverting to the original 

 >rate of 6 5s. whenever occupation recommenced. 



"For the first few years after the introduction of this system it could not 



