H.—2lb

4

from rents of the Town and Motueka Reserves still vested in the Crown iiow to the credit of the Trust in the hands of the Commissioner of Native Reserves (Mr. Alexander Mackay, whose management of those Estates deserves every commendation). The aggregate rental amounts at present to about £1,200 a year, which will increase every year, as the lands are let on rentals increasing with the length of the terms, It would require then but little additional assistance from any funds Government might have for the purpose, to establish the proposed school at a very early date Where so much appears of an unsatisfactory nature, it is gratifying to refer to circumstances in which the objects of the Trusts appear to have been well attended to. Among these the Commissioners may mention the school for Native girls at what is called the St. Joseph's Providence, at Wellington, the site of which institution was granted to the Roman Catholic Bishop. An inspection of the school, made without any warning or preparation whatever, seemed sufficiently to prove, both as to the building itself and the children resident therein, the exemplary manner in which the institution is conducted. Of the administration of the lands included in the Grants for Educational purposes in the Provinces of Canterbury and Otago, it is perhaps the best commendation to have to report that they seem to call for no particular interference. The condition of tbe Trusts in the Province of Southland is not perhaps quite so satisfactory; but this is to be accounted for by the fact that the financial resources of that Province have not enabled its Government to give that liberal assistance to Educational and Charitable objects which has been given by Otago and Canterbury. As far, however, as the means at their disposal have enabled the Trustees to make beneficial use of the Endowments, such has been done, and in no case does there appear to be any necessity for authoritative interference with the present Trustees, beyond the official control of a Commissioner, as previously recommended. The Grants for Hospitals and Cemeteries will form the subject of a separate brief Report. (1.5.) Alfred Domett. George Sisson Cooper. Robert Hart. Theophilus Heale (Signed at his request by Mr. Domett).