EDUCATIONAL RESERVES.

A.—No. sa.

3

small portion of the land near tho homestead was very good, but a large portion of it was of a very inferior description. I would not have given a shilling an acre for it. Of the bulk of the land, I should estimate two and a half acres would be required for one sheep. In its natural state the block would have been worth about £100 per annum (or might be a little more), if let for such a term as to give tenant the prospect of recovering value of improvements. As to the present value, properties are •almost unsaleable at the present time, owing to the general depression and want of confidence. Taking into consideration the probable value of wool, and other circumstances, if the district were reduced into a state of security, and confidence were restored, I cannot say what would be the annual value of the property apart from the stock. I was there about twelve months ago for some little time, but had not then an opportunity of examining the property. I have been informed that considerable improvements have been made since I left. Ido not know of any building called the Te Aute School or College—there was none whilst I was on the property. lam not aware of any education having been afforded to the children of aboriginal Natives or other persons in connection with it whilst I was there. I know the inhabited neighbourhood called Te Aute. There used to be a Aiaori pa there. There was, while I was in the occupation of the property, no institution in the nature of a school maintained at Te Aute in connection with it. There had been, I have heard, previously. The buildings on the property were in very good repair when I left. lam aware that the value of the property has been considerably overestimated. The public road runs through the paddocks which contained the superior land to which I have referred, and persons passing aro induced to estimate the value of the whole by what they see of the smaller portion through which the road passes. The Rev. S. Williams —(lsth April, 1869),—being duly sworn, states: Aly name is Samuel AVilliams. I reside at To Aute. I know the lands comprised in the four grants, copies of which are before mo. (Record copies of Grants No. 4, Reg. xiv. ; No. 5, Reg. xiv. ; No. 12, Reg. xiv. ; No. 1,650, Reg. 47, produced.) These lands have been transferred to and are now vested in the Bishop of AVellington, Archdeacon Octavius Hatfield, AVilliam AlcCloud Bannatyne, George Hunter, and Robert Stokes. Though there is a distinction between the trust expressed in the first and second and that in the third and fourth, they have been managed as one property. The land comprised in grant referred to as No. 1,650, Reg. H. 7, and part of land comprised in grant referred to as No. 12, Reg. xiv., amounting to 244 acres, was granted in exchange for land—part of tho laud comprised in grant No. 5, Reg. xiv. I was not aware of any difference in the trusts till several years after entering upon the management of the property. lam in occupation of and have the management of the property. This commenced in 1854. There is a dwelling-house of timber, with shingle roof, containing four rooms on ground floor in main building, two rooms in shilling, four attic rooms, and a kitchen detached, occupied by myself and family; a wool-shed built of timber, two small houses in the occupation of farm servants, onestalled stable and cart-shed, and a shepherd's house and a milking-shed ; the shepherd's Jhouse is on No. 4, Reg. xiv. The other buildings are on No. 5, Reg. xiv. There are between twelve and thirteen miles of fencing on No. 5, Reg. xiv., and No. 12, Reg. xiv. ; and on No. 1,650, Reg. H. 7, fifty-five acres have been ploughed and are now laid down in English grasses, making, together with other lands which have been prepared by burning and surface-sowing, about 900 acres, which are enclosed in paddocks, besides other portions of the land which have been surface-sown. The land which has been surface-sown was fern land previously. The road passes through the edge of No. 5, Reg. xiv.; No. 12, Reg. xiv. ; and No. 16, Reg. xiv. The land through which the road passes in No. 5, Reg. xiv., is some of the best land in the whole property. Ido not consider there are 1,000 acres on the whole property of equal value to that on the side of the road in that block. The whole of the land now belonging to the estate is fenced in, except that comprised in No. 4, Reg, xiv. Of the land described in plan to grant No. 650, Reg. H. 7, together with 244 acres bounded by the edge of a swamp on the one side, and the original boundary of the land granted to the Bishop of AVellington, (in grant No. 12, Reg. xiv.), 4,244 acres were included instead of 4,000 intended to be granted, the extra 211 acres and the 382 acres described in grant 1,650, Reg. H. 7., having been given by the Government in exchange for the portion of land comprised in grant No. 5, Reg. xiv. Part of the land described in the plan annexed to the grant of section No. 19r., Te Aute, being land described in grant 1,650, Reg. H. 7, pencilled by me with the letter O and my initials, belong to the trust expressed in grant No. 5, Reg. xiv., tho portions comprised in the grant No. 1,650, Reg. H. 7, and the portion bordered by the swamp, having been granted in exchange for a portion of the land comprised in grant No. 5, Reg. xiv., and which was re-convej'ed to the Crown by the Trustees. AVhen the arrangement for the exchange was agreed to between the Government and myself, I was not aware of the difference between the trusts of the first and second above-mentioned grants and the thirdmentioned grant. The accounts of the receipts and expenditure have been rendered to the Trustees up to the end of 1567. Accounts for 1868 are not yet made up. The accounts are forwarded to the Bishop of AVellington. The merchants' accounts are made up in Alareh in every year, and my agent's account for IS6B has not yet been rendered. The balance of receipts and payments for 1861 was fas against the property upon the general account), £567 13s. 7d., and in 1562, £1,937 65.; in 1863, £3,120 10s. jin 1564, £2,898 17s. 4d.; in 1565, £2,869 55.; in LS66, £1,669 Is. 5d.; in 1567, £1,450 13s. 9d. I laid out, in completing the building, up to 1867, £356 ss. 2d. in excess of receipts. I have examined the account printed in Air. Russell's report in Parliamentary Paper, E. No. 4, Appendix to Journals of House of Representatives, Report of Inspectors on Native Schools, page 31. The sum mentioned in Air. Russell's report, of £167 17s. Hid. is included in the above sum of £356 ss. 2d. Since 1859 there has been no school or scholars on the estate. A promise was made to the Natives by the Governor, at the time the land was given up for the endowment of a school, that the Government would be at the expense of erecting a school upon the property, and renewed by Sir George Grey on his first visit to Hawke's Bay during the later period of his government of New Zealand, and also referred to by the Government of the Colony in communication with the Bishop of AVellington. The large amount I have expended necessarily in improving the property, with the view to making a permanent income, has prevented my attempting to erect a school. There were, in the first instance, temporary buildings at Te Aute for a school, wherein a school was