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CANTERBURY. Sib,-— Government Buildings, Christchurch, 6ch January, 1904. In accordance with Order in Council of date 17th September, 1878, I have the honour to forward the report of the School Commissioners for the Canterbury Provincial District for the year ending the 31st December, 1903, together with a copy of its accounts duly audited. The total area of the primary-education estate under lease on the 31st December, 1903, was 67,157 acres, producing an annual rental of £17,951 125.; of this area 23,300 acres is contained in Pastoral Run No. 5, which was obtained from the Crown in 1892 in exchange for agricultural land in the Waimate County, and as the lease of this run expires on the 29th February next it was submitted to public auction at Timaru during last year for a twenty-one years' lease from the Ist March, 1904, and it was secured at the upset rental of £700 per annum by the present lessees. The fixed deposit of £163 3s. 5d., which matured on the 22nd December last (and is only available for the purchase of land), has been renewed for one year. During the vear thirty-two farms were relet; of these nineteen of moderate area were renewed by arbitration under clause 244 of " The Land Act, 1892," to the old tenants who were satisfactory ones, and the remainder were let by public tender, after one which contained 564J acres being subdivided into two farms. I have, &c, John Rennie, Chairman. The Right Hon. the Minister of Education, Wellington.

General Statement of Receipts and Expenditure for the Year ending the 31st December, 1903.

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Primary Education Estate. Total. Receipts. £ s. d. £ s. 2,368 13 1,961 18 d. 6 7 'o Balance brought down from the 31st December, 1902... Arrears of rent for 1902, from last account ... Moneys payable within the year 1903, and collected— On account of half-year's rent payable in advance on the 1st May, 1903 ... ... ... On account of half-year's rent payable in advance on the 1st November, 1903 8,836 14 5 7,403 3 8 16,239 18 1 Other receipts : Bank of New Zealand—Interest on £163 3s. 5d. placed on deposit for one year (see Statement of the 31st December, 1902) 4 17 9 Total receipts 20,575 7 11 Expenditure. £ s. d. £ s. d. By Office expenses and management — Salary of steward (inclusive of all travelling-expenses) Stationery and postage School Commissioners, railage and expenses Bank exchange on cheques Bank exchange on remittances to the South Canterbury Education Board, Timaru 540 0 6 1 12 15 0 18 0 1 0 9 4 4 3 Expenses of leasing— Advertising and printing ... ... ... Share of arbitrators'and umpire's fees for assessing rentals of nineteen holdings, and auctioneer's fee for selling lease of Run No. 5 ... Cost of subdivisional survey of Reserve No. 1208 ... 563 19 1 23 9 0 18 15 35 0 0 0 77 4 0 Legal expenses for share of cost of arbitration deeds and other costs ... Contribution towards cost of extending culverts at Lake Taumutu to drain Reserve 1179 and contiguous land 18 13 2 30 0 0 Payments to Education Boards— North Canterbury South Canterbury 14,155 6 3,344 13 3 9 689 16 3 17,500 0 0 Balance in Bank of New Zealand, 31st December, 1903— At credit of current account On fixed deposit ... 2,222 163 8 3 3 5 18,189 16 3 2,385 11 8 Total expenditure ... 20,575 7 11