GK—lO.

PART lII—FARMING OPERATIONS OF THE NATIVE TRUSTEE. Farming operations are at present being carried out by the Native Trustee on the following stations : (Ī) Hoia Station, (2) Hereheretau Station, (3) Aohanga Station, (4) Motuweka Station, (5) Tiratu Station, (6) Hakurenga Station, (7) Tawanui Station. Hoia and Hereheretau stations are the assets of the Maori Soldiers' Fund which was vested in the Native Trustee under section 23 of the Appropriation Act, 1925, the former being situated near Hicks Bay, East Coast, while Hereheretau is adjacent to Whakaki near Wairoa, Hawke's Bay. Hoia Station. When taken over, this station comprised the following leasehold areas : — (а) Wharekahika Ba, 1,719 acres ; Term, 21 years, expiring 30th June, 1938. (б) Wharekahika Bc, 1,054 acres ; Term, 42 years, expiring 30th August, 1953. (c) Wharekahika Bd, 1,027 acres ; Term, 21 years, expiring 30th April, 1936. (d) Wharekahika 18k (part), 1,321 acres ; Term, 21 years, expiring 30th June, 1937. In the case of Ba, Bd, and 18k (part), the lessee is entitled to full compensation for all improve ments of a permanent character, or in the alternative to a right of renewal for a further term of twenty-one years. There is no right of compensation for improvements under the lease of 8c Block. From the outset it was realized that it would be an advantage to these areas if some adjoining arable country could be acquired, and subsequently the goodwill of two further leases was purchased as under :— Wharekahika 18or, 1,278 acres : Term, 21 years, expiring 30th June, 1936. Wharekahika 181, 115 acres : Term, 21 years, expiring 30th December, 1939. Under the terms of both of these leases, the lessee is also entitled to full compensation for all improvements of a permanent character or in the alternative to a right of renewal for a further twenty-one years. The total area now being worked as Hoia Station is 6,514 acres, 2,000 acres of which are still in virgin bush. Various arrangements have been entered into as to the rents payable under the different leases and reductions have been obtained by arrangement with the owners, or by applications to the Mortgagors Adjustment Commission under the Mortgagors and Tenants Relief Acts.

The closing down of the freezing-works at Hicks Bay very soon after the Native Trustee took over the administration of the Maori Soldiers' Fund, necessitated a change in the original proposals with regard to the running of the property, but steps have been constantly taken to increase the carrying-capacity, and the following table sets out the difference between the first year of operations and the stock being wintered this year :—

The total liability at present owing to the Native Trustee is £24,602, and a report of a recent inspection by the Chief Supervisor and the Farm Supervisor for the East Coast Trust Commissioner intimated that the value of the improvements should be sufficient to cover this liability. The live and dead stock are valued at £10,000. Hereheretau Station. This station originally comprised an area of 6,373 acres, being Hereheretau 2a and 2d Blocks, the title being a lease from the Crown for a term of thirty-three years from Ist January, 1922, with a right of renewal for a further thirty-three years. The rent for the area was originally £1,125 per annum for the first thirty-three years and 5 per centum of the fee-simple, less the value of the improvements,

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Sheep. Bun Cattle. Wool. Breeding- Qthers> Breeding- Bales> Proceeds . ewes. cows. £ First year .. .. .. 1,500 556 56 168 43 584 Present season .. .. 3,150 1,404 250 392 116 1,254