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INCOME. » 1. In the year 1865 the total income amounted to £287 18s. 3d. Of this sum the Provincial Government paid (as capitation fees) £235 3s. 7d.; the balance from various sources. 2. In the year 1866 the total income was £597 13s. Bd. Of this sum the Provincial Government paid (as capitation fees) £425 18s. 5d., and the General Government paid £45. The sum of £38 10s. 6d. was got from the rents of the trust estate in this year; the balance from various charitable and other sources. 3. In the year 1867 the total income was £521 4s. Of this sum the Provincial Government paid as before, £324 17s. 4d., and the General Government paid £71 13s. There was a sum of £44 ss. got from the rents of the trust estate in this year; the balance as before. 4. In the year 1868 the total income was £438 2s. 2d. Of this sum the Provincial Government paid (as capitation fees) the sum of £124 10s. Bd., and the General Government paid £196 16s. 6d. There was a sum of £56 lis. 9d. got from the rents of the school estate, and the balance as in former cases. EXPENDITURE. 1. In the year 1865 the total expenditure was £335 7s. Id. Of this sum, about £240 was paid for the food and clothing of pupils, the balance for current expenses. 2. In the year 1866 the expenditure was £607 ss. 9d. Of this, about £450 was expended for food and clothing, about £50 paid to servants, and the balance in current and other expenses. 3. In the year 1867 the total expenditure was £638 19s. 7-Jd. Expended in the same wav as in 1866. 4. In the year 1868 the total expenditure was £375 3s. sd. Of this sum, £280 was expended for food and clothing for pupils, £50 paid to servants, and the balance in the ordinary way. Average number of pupils in 1865 : European, 29; Maori and Half-caste, 4. Average age of Europeans, 7 years; Maoris, &c, 11 years. Average number of pupils in 1866 : European, 43; Maori and Half-caste, 10. Average age of Europeans, 8 years ; Maoris, &c, 14 years. Average number and ages for 1867 and 1868 given in evidence. H. Mcllhone. Mr. H. Mcllhone —(6th April, 1869), —having been previously duly sworn, states: The promissory note, in respect of which the property of St. Mary's College, at the North Shore, was seized and advertised by the Sheriff for sale, was originally given for the sum of £404 Is. 3d., which was subsequently reduced by about £80 from the proceeds of a sale of Bishop Pompallier's furniture. None of the debt, that I am aware of, was incurred on account of St. Mary's College estate, but it arose out of private transactions between the Bishop and myself. The bill was indorsed at my request by Mr. J. O'Neill.

Saturday, 27th March, 1869. Present:—Mr. Hart and Mr. Gisborne. Mr. William Sivanson, being duly sworn, states: My name is William Swanson. I reside in West Queen Street, Auckland, and am by trade a shipwright. A portion of the allotment No. 77, Parish of Takapuna, containing four acres more or less, and being the site of the buildings of St. Mary's Eoman Catholic College at the North Shore, has been conveyed to me. The land in question was seized under a judgment debt, and was advertised by the Sheriff to be sold by auction on the 3rd March. I paid off the debt in respect of which it was seized, amounting, with costs, to the sum of £325, with a view of preventing what I considered discreditable. I bought the land and buildings on it absolutely. After this I wrote a letter to the Vicar-General, undertaking, on receiving back my money, without interest, either within two months of the return of Bishop Pompallier from Europe, or, in case of his not returning, then within eighteen months from the date of my letter, to re-convey this land to the Bishop himself or to the Vicar-General, as the case might be. I have made an entry in one of my books for the guidance of my representatives in case of my own death. I have not executed any legal document binding me in this behalf, but I consider myself bound by the terms of my letter. I also stated in my letter that I would not interfere with the management of the property, during the time limited, so long as it w r as used for the maintenance of the orphans. I only stated that I would insure the buildings. If the property is not used for the maintenance of the orphans I will at once assume possession of it. I will furnish a copy of the letter which I wrote to the Vicar-General. When I had a conversation with the Eoman Catholic clergymen, before I paid off the debt, it was agreed to have the land conveyed tome absolutely on my paying off the amount. Copy of letter from Mr. Swanson referred to. Sir— 3rd March, 1869. I promise to re-convey the property that the College is on to you for the same money that I paid for it, any time you like during the next eighteen months, if the Bishop does not come home in the interval. If he does, I expect that in a month or two after he comes it will be settled ; and, generally, that if you can make it right before the year and a half you will do so, but I shall not ask it. You are to use the place and all the buildings and all its incomes, if any, as before, and till he comes, or the eighteen months are up—no interest to be charged ; but I would like the houses and buildings insured in my name. Yours, &c, To the Very Eev. James McDonald. Wm. Swanson. 3—H. 21.