5

G.—iii

One of the Trustees (Mr. Jackson) has supplied to us a statement of assets and liabilities of these two blocks to the 31st March, 1907. The assets consist of the annual rent, £81 15s. Bd. The liabilities amount to £2,144 6s. 6d., as follows :— £ s. d. Salary of Trustees for seven years . . . . 240 0 0 Rent of office for seven years .. . . . . 47 2 6 Mortgage and interest due .. .. .. 1,849 16 0 Incidental .. .. .. .. .. 780 £2,144 6 6 These do not include Mr. W. L. Rees's costs, not yet taxed. Mr. Jackson in his memorandum to us says that the larger block, Mangatu No. 4, is not leased, although many attempts have been made since the auction sale to lease it; that there is milling-timber on the block ; that the Maori owners have an idea of working the land themselves, and have agreed to the borrowing of the sum of £5,000 aforementioned. There is no doubt that more than one-half of this sum will be required to discharge the existing debt, and the balance will be available to commence farming operations. . The annual interest-charge will be at least £250. The salary of Trustees, office expenses, and other costs of administration will be at least £100 per year. It seems to us that the estate will soon be involved in great difficulties. The Trustees, one of whom is the Commissioner of Crown Lands for Hawke's Bay, should see to it that they are not led to adopt the system of financing which wrecked the New Zealand Native Land Settlement Company. Administration of Trust Lands. Before proceeding to deal with the lands in the last schedule, which remain in the hands of the Maoris, we wish to make a few comments on the present position of the administration of trust lands in Poverty Bay. We do not include in that category the Wi Pere Trust Estate, but only the following :— (1.) East Coast Trust lands, administered by a Commis- Acres. sioner .. . . .. .. .. 186,388 (2.) Lands administered by Trustees appointed under " The Native Land Laws Amendment Act, 1897 " —which includes lands incorporated by " The Mangatu No. 1 Empowering Act, 1893," viz.— Acres. Mangatu No. 1 . . . . 79,296 No. 3 . . . . 3,680 No. 4 . . . . 6,000 88,976 (3.) Lands administered by Receiver appointed by Validation Court . . . . . . • . . 12,325 (4.) Lands administered by the Tairawhiti Maori Land Board:— ' Acres. (a.) Vested in Board .. .. 53,221 (&.) For which Board is receiver . . 34,172 87,393 375,082 . We estimate the value of these various estates at not less than £500,000. There are four separate systems of administration, with three separate staffs and sets of offices. These diverse administrations have arisen not because it was felt that they were necessary, but they have been called into existence through the peculiar circumstances of Native-land titles in the district. The time has arrived, in our opinion, when these lands should be administered by one body. There would be a great saving in the cost of administration. It should not be difficult to combine the various estates under one Board. The functions of the East Coast Trust Lands Commissioner in respect of lands reserved for Maori occupation can be performed by the Maori Land Board, and the administration of such lands