H.—2la

7

been compensated for by meat supplied to the establishment, and by pasturage for sheep belonging to the establishment in dry seasons upon another run not belonging to the trust. I have sometimes, from drought, been compelled to remove every sheep from the estate. The Rev. S. Williams' —(l6th April, 1869) —examination continued: The Te Aute School estate is distant from Napier thirty-two miles in the interior. There is a good dray road all the way now: it was difficult of access at one time. Having several trust estates to manage, and no funds of this estate in hand, it will occupy me some time to make out the account for the year 1868. My avocations at the present, from the disturbed condition of the country and the extent of the district I have to visit, leave little time at my disposal. I will furnish the account as soon as I can. The balance is lessening, and if no further fall in the prices of stock and wool should take place, I hope by the end of the present current year there will be little or no balance against the estate. The accounts furnished to Mr. Russell were audited by him ; the accounts furnished by me to the Trustees have not been audited. The increase of the flock was derived, to a great extent, from sheep taken on terms for the benefit of the property. The sales of wool appear in the accounts. From 1860 to the present time, the cattle referred to in my former evidence had the use of 40 acres of the paddocks at the homestead of the estate, principally milking cows. Another block of about 50 acres has been used for the cattle during the last two years. There is also an enclosure of scrub and bush, containing about 300 or 400 acres (which is unfit for depasturing sheep), into which cattle were turned, whose services in breaking down the bush and scrub, and extending the grass, greatly benefited the property. The sheep on the estate have had the use, in addition, of 200 acres of grass land of a superior character, not belonging to the estate, during the same period that the cattle have been upon the bush land referred to. When I first occupied (in 1863) the lands contained in the grants referred to —No. 12, Reg. xiv.; No. 1,650, Reg. H.7 —they only carried 1,000 sheep, but they now carry 3,000, and keep them in a better condition. Mr. Stokes, one of the Trustees, has or had the plans showing the exchanges made, and their boundaries. The Rev. S. Williams —(24th April, 1869) further examined) : I wish to correct a statement in my evidence given on the 16th inst. The portion to which I refer is as follows : —" The balance is lessening, and if no further fall in the prices of stock and wool should take place, I hope by the end of the present current year there will be little or no balance against the estate." Since giving that evidence I have ascertained that prices are so very low that it would be wrong to hold out such an expectation. The amount of the balance will entirely depend on the prices to be realized by sale of the wool and surplus stock. The promise of Sir George Grey, mentioned in the evidence of Te Waaka Rewharewha, was, not that he would give 500 sheep but that he would give £500 in money to be laid out in sheep. The moneys paid to me in respect of this promise are credited, and the application of them shown in the accounts appended to Mr. Russell's report before referred to. Sheep at the time these sums were received were at a price of thirty-seven shillings and sixpence to two guineas. I paid thirty-seven shillings and sixpence for the sheep I bought. Mr. Tatham occupies the block of land originally leased to Mr. Pharazyn, and is, I believe, the assignee of his lease. The term for which this property was let is now terminated, and the Trustees are liable to pay the £200 stipulated for improvements. It is under consideration by the Trustees to endeavour to effect an arrangement with the occupier, whereby, in consideration of sinking the claim to the £200, he might have an extended term, or if the Trustees should pay the £200, that he would continue in occupation at an improved rent. The quantity of 900 acres mentioned in my evidence (15th April) as having been prepared by burning, and surface sown, includes a portion of the bush enclosure. Mr. Purvis Bussell —(l9th April, 1869)— examined (Copies of Crown Grants recorded—No. 4, Eeg. xiv.; No. 5, Reg. xiv.; No. 12, Reg. xiv.; No. 1,650, Reg. H. 7; produced): My name is Thomas Purvis Russell. I reside at Waipukurau, and am a sheep farmer. I have known the property generally known as the Te Aute College or School estate, comprising about 7,000 acres, from the year 1853. When I first travelled through it it was almost impenetrable fern, with small clumps of bush. For the whole estate upon a lease for fourteen years you could not have obtained a rental of more than £10 a year. Before any benefit could be derived from it, considerable outlay must be incurred in grassing it, which has been done. Its size was against its realizing a large rent. It was surrounded by the different runs there, and possessed no natural boundaries, so that the expense of shepherding would be great. It was off the main line to Napier, and the difficulty of carriage of produce to Napier, partly by canoe and partly by land, was very great. I should think the carriage of wool must have cost Mr. Robert Pharazyn, who occupied part of the land, from l-|d. to 2d. per pound. Ido not know the extent of fencing nor quantity of land, but can state generally that the estate has been greatly improved, and rendered valuable for occupation. As near as I can recollect, the road was commenced about 1859, running through part of the Te Aute estate. This road caused a gradual reduction in the cost of carriage of from £10 to £2 10s. per ton. I would not like to stock the property as it now stands with more than 5,000 or 6,000 sheep, which would yield no higher rental than from £600 to £650 per annum. Having regard to the nature and value of the improvements, and the flock of sheep stated by the Rev. Samuel Williams, in his evidence, to belong to the estate, and to the amount of debt stated in his evidence to be a charge upon the estate, I am of opinion that the estate has greatly benefited by the occupation. Mr. Samuel Locke —(24th April, 1869) —being duly sworn, states : My name is Samuel Locke, and I reside at Napier. lam a surveyor by profession. I have resided in the Province of Hawke's Bay about ten years. I have been accustomed during that time to the examination and valuation of land. (Copies of Crown Grants No. 4, Reg. xiv.; No. 5, Eeg. xiv.; No. 12, Eeg. xiv.; and No. 1,650, Eeg. H. 7, produced.) I know the land comprised in the Crown Grants of which the produced papers are copies. On Monday evening and Tuesday morning, the 19th and 20th instant, I examined the land. I found the fences and buildings in very good order. There is on No. 12,