A.—No. sa,

It will, nevertheless, be apparent that while the object of the management —the rendering the Estate productive of an available income—has been nearly attained, the children of the Native donors of the land have grown up to maturity deriving little or no benefit from the Trust. This has led to complaints from donors and representatives of donors, having some show of reason in them. The state of the accounts and rental of the Napier School Estate is very satisfactory. The land, two town allotments, in Napier, of one rood each, was purchased with a sum of £10, taken out of moneys originally contributed for the maintenance of a school in that town. The action of the Trustees towards establishing a school is in abeyance, pending the construction of a scheme for its management by His Honor Mr. Justice Johnston, to whom the papers and accounts relating to the property have been referred. The delay in the establishment of a school upon the scheme to be so devised will probably enable the funds (at present about £850) to accumulate until they become sufficient for the erection of convenient buildings, while the annual rental (£235 lGs.) will be a valuable endowment towards the expense of maintaining it. In respect of the Town of Clyde School Reserve, it appears, from the statement of Mr. Sturm, that before the Native title to the district in which this Reserve is situated Avas extinguished, a piece of land, part of the present Reserve was set apart for a school for the education of Native and Half-caste children; that Trustees were appointed, and a schoolhouse built, which is still standing and occupied; and Mr. McLean states that, when the district was ceded by the Natives, no express stipulation was made in respect of the land on which the schoolhouse stands. This land, as part of a larger quantity, has been reserved in the ordinary way for educational purposes. The propriety of measures to impress on the land, upon which the schoolhouse stands, the Trusts upon which it was originally given, has been suggested to the Commissioners. The Commissioners have to submit to your Excellency this their second Report. (1.5.) Alfred Domett, Chairman. (1.5.) E. D. Bell, (1.5.) G. S. Cooper, (1.5.) Robt. Hart, (1.5.) "W. Gisborne.