EDUCATIONAL RESERVES.

17

A.—No. sa.

was the opinion of the meeting that the sections held in trust for the Napier school should be leased, and that, in order to obtain the full market value of the land, the same should be put up to public auction in suitable blocks ; and it was further resolved that the Trustees be requested to take measures for carrying out the foregoing resolution, and to prepare such conditions of lease as may be necessary to prevent the land from being used for unsuitable purposes or from being sub-let without consent of the Trustees, and also to fix suitable reserve rates as the minimum rate of each allotment; and the said Trustees be requested to hold such rents as may accrue therefrom for such educational purposes as may be resolved upon at a future meeting of subscribers." The paper writing I produced marked A. is signed by Donald McLean, the chairman of that meeting. There was a subsequent meeting of subscribers convened by advertisement, at which certain resolutions were passed for the establishment of a school in Napier, and the application for one year of a part of the funds accruing from the estate. The Trustees thereupon took the advice of a solicitor, acting upon which they have taken no steps towards the establishment of a school. At an adjourned meeting of the subscribers, an arrangement was entered into for leaving the papers in the hands of the Judge of the Supreme Court (Mr. Justice Johnston), to devise a scheme consistent with the powers of the Trustees for the establishment of a school or schools in Napier. Copies of all papers connected with the trust, or such original papers, were forwarded to His Honor Mr. Justice Johnston about a year and a half ago, but no decision has been communicated to the Trustees. Pursuant to the resolution of the meeting first referred to, every part of the property was offered for leasing to public competition, and 42 feet fronting Hastings Street and next Tenison Street, was leased to Thomas Kenedy Newton and James Irvine for a term of twentyone years, at a rental of £90 Gs. per annum, such term commencing on 2nd January, 1864: 30 feet next adjoining was also leased to the same parties for a term of twenty-one years, commencing 12th February, 1864, at a rental of £34 10s. per annum. After several further attempts at letting by the same means, the 60 feet of frontage to Hastings Street remaining was let to Andrew H. Blake for a term of twenty-one years, commencing 14th December, 1866, at a rental of £78 per annum; and at the same time thirty-three feet fronting Tenison Street was let to Messrs. Newton and Irvine for a term of twenty-one years at £33 per annum. The total rental is £235 16s. I receive the rents. No appropriation has been made of the funds to the support of any school; they have been permitted to accumulate. On account of the accumulations there is invested on mortgage, at an interest of 10 per cent, per annum, sums amounting to £410, and there is a balance in the Bank of New Zealand amounting to £447 Is. The greater part of the money had been previously deposited in the Savings Bank, but, pending the decision of His Honor the Judge as to the appropriation of the funds, the Trustees considered they could employ the moneys more profitably. No charges have been made for the collection. I will send a memorandum of the expenses that have been incurred by the Trustees since the resolution referred to. The building originally on the land was for a time insured at the expense of Mr. Newton, but the school funds proving insufficient to bear the expense of the insurance, it was discontinued previous to the fire. The Trustees have since, out of the rents, repaid Mr. Newton his outlay for insurance. In consequence of a communication from Mr. Justice Johnston to Mr. James Anderson, through whom the papers were forwarded to His Honor, and of circulars addressed by Mr. Anderson to the subscribers to the school fund, a great majority of the subscribers forwarded letters expressing their opinions with respect to the mode of apj)ropriating the funds arising from the property. Those letters, with a synoptical schedule of them, were handed to Mr. Justice Johnston at the time the other papers were delivered. Total amount expended by Trustees of Napier School Trust, up to the present date, from the Bents received by them from the several Lessees on Allotments of Town Sections Nos. 136 and 137 of the Town of Napier : — 1864 Touchers. Jan. 2. To V. Janisch, auctioneer, for commission and charges on allotments offered for lease by public auction, including printing conditions of sale and costs of advertising No. 1. ... 10 2 9 Feb. 12. To V. Janisch ditto. ditto. ... 5 9 6 Also for amount paid by him to Mr. Fitzgerald, surveyor, for marking out boundaries of allotments on town sections as above ... ... ... No. 2. 412 6 1865 10 2 0 May 13. To Jas. "Wood for stationery, and for advertising sundry meetings of subscribers and trustees ... ... No. 3. ... 3 12 9 May 31. To V. Janisch, commission and charges on allotments offered for lease, including advertisements in newspapers. No sales effected. (See memo.) ... No. 4. ... 7 10 6 1866 Aug. 31. To T. K. Newton, being refund of an advance made by him for insurance of school-building in 1860 ... No. 5. ... 3 19 0 Dec. 14. To Eoutledge, Kennedy & Co., auctioneers, for commission and charges on allotments offered for lease, and for advertising ... ... ... ... No. 6. ... 8 0 6 £43 7 6 Note.—All allotments now leased. . Edwaeb Catciipool, Napier, 14th April, 1869. Acting Trustee. Memo. —By special arrangement the auctioneers were to be allowed 10s. 6d. for each allotment put up by them in cases where no sales were effected. —E.C. 5