H.—35.

Balance-sheet, 31st March, 1898.

Dr. £ £ s. d. Cr. £ s. d. To Capital— By Land Purchase Account— Authorised, 50,000 shares, Land purohased by company (ori£10eaoh .. ..500,000 ginal cost)—164,200 acres .. 229,592 6 2 Land Development Account .. 71,815 15 1 Issued, 48,000 shares, less Buildings .. -.. .. 5,898 3 O 5,047 shares forfeited: Live-stock .. .. .. 17,140 11 0 42,953 shares: £8 per - Implements, forage, and stores .. 3,502 0 8 share called thereon .. 343,624 Office furniture, London .. .. 15 0 0 Less oalls unpaid .. 450 Sundry debtors, London and New 343,174 0 0 Zealand .. .. .. 4,181 6 1 Bills payable .. .. .. 1,574 10 0 Cash at bank, London, and on hand, Sundry creditors .. .. .. 3,468 3 0 New Zealand .. .. .. 809 6 10 Profit and Loss Account— Dr. balance, 31st March, 1897 .. £46,24116 8 Less balance for year to 31st March, 1898 267 19 2 45,973 17 6 Less amount paid on shares forfeited, £25,095; directors' remuneration in abeyance, £5,616 13s. 4d. .. 30,711 13 4 15,262 4 2 £348,216 13 0 £348,216 13 0

Peofit and Loss Account for the Year ended 31st March, 1898.

Dr. £ a. d. Cr. £ s. d. To London expenditure— By Profit on live-stock, per manager's valuaOffice expenditure—viz., directors' re- tions (inclusive of wool) .. .. 2,792 2 3 muneration, auditors' fees, salaries, Rentals of cottages and land .. .. 136 3 6 and rent .. .. .. 718 2 6 Interest—London .. .. .. 39 19 3 Printing, telegrams, postage, &c. .. 21 0 2 Transfer-fees.. .. .. .. 10 0 Law charges .. .. .. 51 6 4 Prospecting option .. .. .. 500 0 0 New Zealand expenditure— Local directors' remuneration and officers' salaries .. .. .. 550 0 0 Travelling, printing, telegrams, postage, and general expenses .. .. 891 6 10 Freight and carting.. .. .. 26 8 3 Rates and taxes .. .. .. 776 18 10 Exchange .. .. .. .. 27 9 10 Interest .. .. .. .. 58 16 1 Law charges .. .. .. 1 16 4 Depredation .. .. .. .. 78 0 8 Balance .. .. .. 267 19 2 £3,469 5 0 £3,469 5 0

Examined with the books and vouchers of the company in London, and with the accounts received from the manager in New Zealand, and found correct.—Saml. Slateb, Auditor. 32, Queen Victoria Street, 8.C., 11th July, 1898.

Bxteacts from Mr. Hume's Letteb, dated Hamilton, New Zealand, 13th May, 1898. " With regard to the area of land taken up for turnips, &c, I may remark that, although it seems large, it is all required for winter feeding, and it is all land on which the grass formerly sown had entirely run out, and was therefore producing nothing. I have reason to hope, as indicated in my report, that the grass land laid down during the last few years will be much more permanent, in consequence of the working of the land and of the manner in which it has been laid down, together with the more suitable seeds (including Chewing's fescue) which later experience has made it advisable to sow. It should also be remembered that the previous working of the land, even though the grass had entirely run out, did much to take sourness out of it, and has tended to make it respond the better to the later treatment." " I have made some reference in my report to Chewing's fescue, which I consider a valuable grass in its proper place, and, seeing that experiments are now being made with it which will have more or less publicity, I made these remarks there so that shareholders may not think we are neglecting their interests in this matter." " 4. With regard to the prices obtained for stock, and first in reference to sheep : While the market for fat sheep was very low, our returns, thanks to Mr. Harrison's management, were much higher in general than those of other properties. Cull ewes also made good prices—a little more than their cost the year before, after we had the wool and a lamb from them." " With regard to cattle: The price of beef has been exceptionally low, and our sales have suffered accordingly, not only in prices realised, but also through having to keep back a considerable number that otherwise would have gone off, and in consequence we shall have an unusually large number to go off during the current season, and these I hope to replace with young cattle at low prices. In this connection there is good reason to expect a rise in the local market for beef extending over the winter and spring, which we hope to take advantage of."

2