G.—lo.

PART lII.—NATIVE TRUST STATIONS. The Native Trustee is carrying out farming operations under the following categories : — (1) Section 25 of the Native Trustee Act, 1930. (2) As owner of farm lands which have been acquired by the Native Trustee as mortgagee. (3) Under pooling schemes arranged in accordance with the provisions of the legislation dealing with the relief of mortgagors and tenants. (4) As administrator or trustee of deceased and other estates. The details of each station farmed under authorities Nos. (1) and (2) above are set out hereunder, but separate particulars regarding properties controlled by the. Native Trustee under Nos. (3) and (4) are omitted, for the reason that private estates are involved. The farming operations of the Native Trustee are reviewed annually by the Board. of Native Affairs when the budgets are considered and expenditure proposals are approved under section 7 of the Board of Native Affairs Act, 1934-35. The numbers of live-stock shown in the appendices to this report refer to the stations vested in the Native Trustee under section 25 of the Native Trustee Act, 1930, and to the one station acquired by him. The gross area farmed and the number of stock on the different properties are as follows : — Area .. • • • • • • • • • • • • 46,424 acres. Number of sheep .. .. .. • • • • • • 65,608 Number of cattle .. .. .. •• •• 6,353 Gross weight of wool .. ■ ■ • • • • • • 609,992 lb. Number of bales of wool .. . • • • • • • ■ 1,719 Gross proceeds .. ■ ■ • • • • •• •• £37,071 Average gross price per pound .. . ■ • ■ • • 14-66 d. Average gross price per bale .. .. ■. • • ■ • £21 lis. 4d. In addition, the departmental field organization is responsible for the supervision of mortgaged lands subject to'pooling schemes, the total area of which is 8,622 acres, and the number of sheep and cattle grazed thereon are 10,806 and 1,794 respectively. The bulk of the Native Trustee's investments consist of advances to Natives secured by first mortgages over their lands. These investments are for amounts not exceeding three-fifths of the estimated value of the security according to valuations approved by the Board, and the loans are usually granted for the purpose of financing Maori farmers. At the 31st March, 1937, there were 459 of these loan accounts covering investments totalling £437,049. Since 1934 the Native Trust Office has been amalgamated with the Native Department by virtue of section 15 of the Native Land Amendment Act, 1932. Aohanga Station. Situated on the East Coast in the Akitio County, and comprising three blocks of land—namely, Mataikona Nos. 1, 2, and 3 —this property contains ail area of 17,723 acres, of which 907 acres are reserved for occupation by the Native owners, leaving 16,816 acres to be farmed as a sheep and cattle or j ' na j programme of work intended to be carried out by the Native Trust Office has, during the seven years the property has been under the control and management of the Native Trustee, been adhered to, and the clearing of the land, establishment of good pasture, erection of fencing, and stocking has been maintained ; and an inspection of the station to-day would lead to favourable comment by those who were aware of its condition before the rehabilitation of the land was taken in hand by the Office. . . ■, i • The result of the work can best be shown by a comparison of the winter carrymg-capacity during the past year and the first year of the control by the Native Trust Office as set out in the summary below A considerable amount of work has still to be done in the way of pulling tauhinu, cutting scrub, and the erection of internal fencing, with constant attention to the whole of the station to combat any second growth which comes away. Like other farming propositions, it is at times difficult to obtain the labour necessary to carry on these various activities, and every use is made of any unemployed Native labour available, and during the past year the sum of £2,040 was spent on contracts let to Maoris. The work is all carried out under the contract system, and during the year the following improvements, exclusive of contracts in progress, were effected • 1 650 acres scrub-cutting and pulling ; 310 chains of new fencing ; construction of a new dip and alterations to yards ; 250 acres of gorse-grubbing ; 6,500 trees planted ; 60 chains of draining ; and 10 acres of ploughing. Much more could have been accomplished had suitable labour been obtainable, but the best is being done with the man-power available. The following summary sets out the details of the increase in carrymg-capacity as a result of the Native Trustee's management, the stock figures being fixed on winter carrying capacity.

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Sheep. Cattle. Wool. Breeding-ewes. Others. Breeding-cows. Others. Bales. | Gross Proceeds. I £ 1930 9,362 6,638 796 1,278 230 1,983 1936-37 !! •• 8,392 23,461 894 1,368 719* 15,714 * 39 still on hand.