MAORI WAR FUND

Poverty Bay Herald, Volume LIV, Issue 16827, 14 December 1928, Page 10

MAORI WAR FUND

RESCUING INVESTMENTS TRUSTEESHIP OUTLINED FURTHER FINANCE FOUND. Owbng to the fact that the money was administered by a committee of Maori leaders, the situation of the Maori War Funds has always been unknown to the. general public, though there has been a general recognition that the investments made from the fund had not turned out as was expected, and that the Native Trustee had . been empowered to take over the administration of the fund. Accounts are now available, with the report of the Native Trustee, on the progress made, and these show that although there is no immediate prospect of the stations- represented by the investments returning any money to the funds for distribution to wounded Maori soldiers, there is a- big chance of themoney being sunk in the farms being retrieved eventually. In accordance with the authority /given by the Appropriation .Vet of 1925, the Native Trustee took over the fund and the two stations at lloia and Hereheretau in November, 1925, and in the intervening years lias sunk a considerable amount of money in them, with the object of bringing them to a stage of development where a profit, or at least working expenses, will bo relumed. When the Native Trustee took over, the finances of the fund were in a/ critical state, and it was necessary for the Trustee to take over existing mortgages and discharge other .liabilities, and also to advance money to carry on the working of the farms. Donations to the main fund to the amount of £5298, promised but not paid, were wiped off. as also were other book debts arising out of the previous management of the stations. For. the working of Hoia. station, near Hicks Bay, £SOOO was advanced from the Native Trust funds, and for Hereheretau, a sum of £2SOG was provided. lii subsequent years similar arrangements were made, though the amounts were varied as the situation demanded. CUTTING INITIAL LOSSES. The work ol the first year, so fai as the Native Trustee was concerned, was to consolidate the position of the fund, wiping off bad debts and" unproductive investments and placing the fund on a business footing. In the case of Hereheretau, for instance, a .surrender of 2253 acres of hush back to the Crown was arranged, this relieving the fund of rent and rates, and easing the burden of liability for fencing and clearing. Flocks and herds were improved in that year, and a general policy of stock improvements initiated. Bushfelling and fencing were put in hand, and arrangements were made to advance the station equipment of buildings and shearing plant. After a year’s work in these different directions, the Native Trustee reported that “a certain confidence” was felt regarding the future of Hoia station, as culling of stock, the bringing-in of further; bush areas, and the provision of a wgolshed would facilitate the working of the place. Hereheretau, on the other hand, presented greater difficulties, as it comprised inferior country, and the question of what policy was to bo followed required deep consideration. “It may be that cattle-raising will eventually

prove the best investment,” stated tho Trustee’s report at May, 1926, the report adding that additional flat land might have to be acquired to profitably 'dork the place. LIABILITIES TOTAL .£30,854. At this stage of the proceedings,.there Was £127 in cash .in the Maori Wan Fund, and the -liabilities amounted to including £6518 owed in respect of Hereheretau, and £11,686 in respect of Hoia station. The assets in these respective stations were £9471 ijiid l £21,2*55, so that, there was good reason ,for tho advancing of cash to 1 iVoi'k the places, as was done by the Native Trustee. The net loss on iferelieretau. for the first year of the Trustee’s administration was £2032, and on Hoia £2486. At the end ,of the sepond year under rlie. Native Trustee, Hereheretau station showed a loss of £322f only, while the Hoia station was still losing money ;H a high rate, the figure for the year being £2500. On the latter station, the rent account , had been overhauled and stabilised, and unpaid rent balances of £630 were disposed of. The woolshed had been completed, and a new homestead was being built, while there' was a steady improvement in the stock. Owing to the closing of the Hicks Bayworks, another market for stock had to be found, and this had led to tho shipping of 600 ewes to Auckland, where the results were not wholly satisfactory. - The wool sent to Napier in March for sale showed an improvement, and 485 acres of bush had been felled. Confidence in the future of this station was reaffirmed by the Trustee, who, however, mentioned that heavy capital expenditure would be necessary before the place, could be brought into full profit. Tho Hoia station during tliali year had been allowed an overdraft from the Native Trust Fund of £7500. BUILDING OPERATIONS. A change of management was made at Hereheretau dring 1926-27, and plans were made for the erection of a new homestead and a woolshed of four stands, on the same qcalo as at Hoia. An access road from Wbakaki had been provided, and the results of the year’s working had shown that the successful management of the station as a sheep run was fairly well assured. The flocks had been built up, and 2000 head of sheep were running on the property, while the cattle had improved in quality. An area of 108 aeibs of bush had been felled and grassed, and much greater confidence in the future of tlm ■property was felt. During that year i Ifer.cherelau was operated on an overdraft of £5500. Creditors of the fund in respect to Hereheretau totalled £8953 at May, 1927, and in -respect of Hoia £17,7/0 was lowed. Tho assets of the fund at this stage were set down at £37,068. Though lip to this stage it had become apparent that the Hereheretau property was likely to stand on its own feet, sooner than the Cape Runaway leasehold, it was not until the end of the third year of the Native Trustee’s administration that a» profit was shown. 'Compiling the review of the operations for the year ended May 31, 1928, tlm Trustee was able lo comment: “Careful administration and continuous supervision of the farms have had their expected satisfactory results, llereheretaii, for the first time since its acquisition, showing a profit on the year's forking, while lloia station, despite the increased loss shown—the cause of which is explained later —is hi a much better position.”

ACTUAL "PROFIT ONLY £lB Is. Actually, the profit shown by Hereheretau was only £lB Is, hut in view of the fact that so much money had been sunk in the place, including a considerable amount from tho Native Trustee’s funds, the realisation of any profit at all after three year’s work must- have given a. great deal of satisfaction. For the year, the wool account returned £BO4, the sheep account £651, and, tile cattle account £405, while the outstanding expenditures were rent £409, wages £294. rates to County Council, Harbor Board and Rabbit Board £175.- and station stores £155. Un Hie other hand, Hoia station resulted in a net loss of £2925 djuring the same year, though the cattle account returned £167, the sheep account £563, and the wool and skins account £935. .Some of the expenses were: Rent £576, rates £193, interest £1075, wages £535. station stores £209, repairs and maintenance £BO2, shearing, dipping and crutehing £lO5. and depreciation £940. Covering the work at Hereheretau, the report states that the liHinagenien’t has been satisfactory, and the new homestead was completed and in occupation. The woolshed. with four-stand machines, had also been completed, and lvad served last shearing season. The access road was completed in November last, and internal reading bad been uiider--laken to link up with the county road. Steadily following the, policy laid down in the first instance, the management was building up a good Hock, 300 ewes and eight Romney rams having been added during the year, while every opportunity had been taken to quit poorer specimens of sheep. The sheep account showed an excellent position, the station carrying 550 head more than last year, even after allowance was made for the loss of 40 hoggets through flooding. The cattle account had also shown a satisfactory profit, the manager being able to utilise good markets. Wool from Hereheretau had been sold at Napier, with good returns. Bushfelling had proceeded, 100 acres being brought into pasture during tlm year, and subdivisional fencing bad been done to tile extent of half a mile. The expenses of running flic farm had increased by £2OO, but the returns had, increased by £llOO, a result which could not have been obtained if the Trustees office had not been in a position to make capital available for improvements necessary to the success of the station. COUNTRY NOT GOING BACK

A gratifying feature of the situation, according lo the report/is that careful maiiag'incut of the stock has resulted in the country being held against, the general tendency (o revert to second growth. A continuation of the present policy, il is hoped, will rekull in (he unimproved lands being brought in, and the herds and flocks being improved in quality and size, until-! the station is working -at its fullest capacity. Stabilisation of rents lias been com* pleted on lloia station, and the amount of rent unpaid lias decreased to £379. No new building lias proceeded during the year, hut improvement in the stock lias been steadily maintained, five rams and .’l7O ewes and lambs of good class having Mip.ii added to the docks, and 20 good heifers to the herd. “The sheep account would have been in a mu elf belter position had it not. been for a disastrous fire which swept over about 2000 acres of the station,” the report; states. “Consequent upon tins lire a considerable

mim'lier of sheep had to he disposed bf at sacrifice, fts it was impossible to hold them on the station. Hoia station is unfortunafely situated, in tnSf it is far from the markets, and advantage cannot be taken of any sudden tine that ions. Every effort has been made, however, to take advantage 6f the facilities offering. Late in February the lire swept over the Cape ’Kunaway district and about tlDOOyhcres of the station suffered. The origin of the (ire is unknown, but reports upon the danra'ge have been submitted. Xo buildings were burned, although the station employees saved therti with difficulty. Endeavoring to turn misfortune into an.'advantage, stops were immediately taken to re-sow the parts burned off. This entailed ordering 155 bags of seed, and sowing was undertaken at a cost of approximately £BOO. This cost has been charged to revenue, and it is hoped that the station will ultimately lie considerably improved as u result of the prompt action fdken in re-sowing. It is estimated that oV. r 200 sheep were burned in this lire, and that a considerable .number, of cattle were driven, far into the bush at the back of the station.” Wool for tin- year at Hoia improved in quantity and quality, and, the prices realised at Napier were satisfactory in the circumstances. , Six bales, of hogget wool weire scoured, and realised very satisfactory prices indeed. PROSPECTS OF THE FUND During the winter, 506 acres oi bush ware felled, burned and sown, and now yards had been erected for handling the sheep. Not a great deal of fencing was done on the property, but arrangements had been entered into for 100 chains during the winter of 102 S. Expectations of an improvement in the tin,uncial position'were not realised, owing jo the incidence of the tire, which resulted in losses estimated at £IOOO. Nevertheless, the revenue from farm working had increased by £6511 over the previous year, and the station Adis' not-, therefore, in as s rioits a financial position as a glance at the profit and loss account might indicate. The coming year won’t! not see any extensive new work undertaken, tlie object in the meantime Hieing to hold and consolidate the land already brought in. An increase in the number of stock would he necessary for this purpose, a’fid it was hoped that (ho loss oh the Working of (lie. farm would be reductd considerably. Summing up the results of the administration of thi' farms for the three years, the 1!)28 report states: “The office feels that the decisive action taken at the comment, meat is now having its effect in the continued int rease of the revenue from the farms comprising the fund; and: reiterates its previous expressions of confidence that; in the near future the fund will begin to receive a return commensurate with Ih’e uj,vpH;ed.”