A.—No. 3,

EDUCATIONAL RESERVES.

17

received no adequate offer to lead them to grant leases of any other land belonging to the endowment than such part as is already leased. The hospital itself is under tho management of a surgeon, who has a male and female assistant resident on the premises. The surgeon exercises the control of its management. The trustees of the endowment have not interfered with the management of the hospital. The annual value of the property in the grant, if let just now for a term of fourteen years, would probably bo £50. Ido not know anything of the internal management of tho hospital. Mr. Hodge has done little or nothing towards collecting the rents, and I have spoken to a Mr. Field, who has offsred to take upon himself the office of steward to the property. Up to March, 1867, it was understood that the hospital was under the management of the General Government. On the 30th March, 1867, a letter was writ;en to Messrs. Harper, Watt, and Taylor, the then trustees, stating that the management of the hospital had been handed over to the Government of the Province. The land of the hospital endowments is poor and mostly of pumice. These reserves were tho refuse of the town. I produce an account of receipts and payments by me, as one of the trustees of the Hospital Reserves, marked E. The vouchers have been shown to the Commissioner (for the payments). The sum in error paid over by me as tho balance, £3 55., was paid to G. Walker, the hospital attendant. It was considered by the trustees, when Dr. Gibson was appointed ex officio trustee, and had an assistant, that in spare time the assistant could collect the rents. The trustees have met to discuss applications for the grounds, but the offers appeared so low as to be unfit to be entertained. The trustees have not called upon Mr. Walker for any account. Mr. Robert Atkinson, one of the tenants is dead, leaving a widow from whom no rent could bo obtained. The tenant Jones declined to execute the counterpart lease, or to go into possession, and he paid £1 by way of compensation. I had overlooked the counterpart lease to Mr. David Atkinson. Stephen Curtis, named in the counterpart lease which I produce marked X., became insolvent, and left the place. His assignee or trustee paid me the £11 14s. 9d. mentioned in tho account. James Alexander purchased Curtis's lease, at the sale of his effects. He occupied the land for some time afterwards. No rent has been paid by him, nor, to my knowledge, has any application for rent been made to him. The husband of Mrs. Brady, mentioned in the account, was a policeman, who removed to Wellington.

The COLONIAL HOSPITAL in account with W.H. WATT, Treasurer.

Evidence taken before Mr. Domett. Monday, 15th November, 1869. City of Wellington — Hospital. Mr. Fitzherbert, being duly sworn, states: My name is William Fitzherbert. I know theHospital Reserves in Wellington. The trustees were appointed under the grant, I think, in 1853. They were the Hon. Henry Petre, Mr. St. Hill, and myself, I believe. We took possession of the property, and proceeded to offer it on lease, in accordance with our powers under the grant and the appointment of trust. There was no commission appointing trustees, as far as I can remember, only the notice in the Government Gazette. In pursuance of our powers, myself and successors of the Hon. Henry Petre and Mr. St. Hill (tho present ones being Mr. Waring Taylor and Mr. Coutts Crawford), let portions of the land. I will get the account of the terms of the lands let. The different sections, or parts of sections, amount to rather niore than twelve acres. Grant, 12 acres \\\ perches. No. 1 (N.M. Miscellaneous, p. 29, area 12 acres W\ perches). —I may state generally, that the money has been devoted to the repairs of the hospital, and in payments to the Provincial Government towards its maintenance in respect of Maori patients. Tho accounts will show the receipts and expenditure, and these have been audited for several years past. In Mr. St. Hill's time they were not audited. I will forward the account book. Copy of a Letter from William Fitzherbert, Esq. to tho Seceetaey of the Commission. Sic,— The Hutt, 27th November, 1869. The leases have been handed to Mr. Brandon, the solicitor to the trustees, for the purpose of some suits in tho Supreme Court (vide copy of receipt attached), to whom the Chairman of the Commission is respectfully referred. 5

18G2. Dr. Dec. 24. To paid rates to Town Board ... 1864. Nov. 21. „ Ditto Dee. 21. ,, Willis for fencing 1865. Nov. 16. „ II. J. Jones, for book ... 1867. Mar. 1. „ Bates to Town Board ... 1869. JunelO. ,, Charles Budge ... 1863. Oct. 9. „ G. Walker £ s. d. ... 1 15 0 ... 19 14 7 ... 2 0 6 ... 0 4 6 ... 12 3 4 ... 0 5 0 ... 3 5 0 1862. Cr. Feb. By rent from Mrs. Brady Sept. „ Forfeit from Jones for lease ... 1864. Nov. ,, Rent from Robert Atkinson „ „ „ David Atkinson... ,, 25.,, „ Estate of S. Curtis Balance £ s. d. ... 4 0 0 ...10 0 ... 15 7 3 ... 6 0 0 ... 11 14 9 ... 1 5 11 £39 7 12 £39 7 11 To Balance brought down ... £1 5 11