G—lo.

PART IV— NATIVE TRUST ACTIVITIES. Extensive powers are conferred upon the Native Trustee to engage in farming operations on Native lands, the control and management of which have been vested in him by statutory authority for the benefit of the beneficial owners. The Trustee may occupy the whole or any part of such lands as a farm and may carry on any agricultural or pastoral business thereon, and where it is deemed expedient, several areas may be occupied and farmed conjointly notwithstanding that such areas or blocks are owned by different groups of owners under separate titles or otherwise. Out of moneys under his control the Trustee may expend such sums as he thinks expedient for the purpose of effectually carrying on farming operations in the manner aforesaid, and may purchase and sell live-stock and other personalty and raise money on the security of such chattels owned by him. By virtue of the Board of Native Affairs Act, 1934-35, the Board exercises a general control over the financial operations of the Native Trustee, including the investment on mortgage or otherwise of moneys available in the Trustee's Account, and over the expenditure on all farming activities undertaken or approved by the Trustee either before or after the passing of this Act. The farming operations of the Native Trustee are classified as follows :— (1) On Native lands vested under section 25 of the Native Trustee Act, 1930, and occupied for the purpose of carrying on any agricultural or pastoral business for the benefit of the owners. (2) On farm properties which have been acquired under mortgage, or in respect of which the Native Trustee is mortgagee in possession. (3) On Native lands in respect of which pooling schemes have been arranged in accordance with the provisions of the legislation dealing with the relief of mortgagors and tenants. (4) On Native estates in respect of which the Native Trustee has been appointed administrator or trustee. In 1934 the Native Trust Office was amalgamated with the Native Department, and, in accordance with the policy of the Department, decentralization proposals are now being given effect to, under which arrangement the administration, supervision, and detailed management of the properties farmed by the Native Trustee are being transferred to the District Offices at Auckland, Wanganui, Gisborne, and Wellington, subject to the general control of Head Office. The following statistical information is supplied in respect of farms and stations under administration and which are vested in the Native Trustee :— Number of properties .. .. .. . . . . .. 8 Area (acres) . . . . .. . . . . . . 38 140 Number of sheep . . . . . . . . . . . . 57,486 Number of cattle . . . . . . . . . . . . 6 278 Wool-clip, 1937-38 (bales) .. .. .. .. .. 1,312 Average net price per bale .. .. .. .. .. £13 3s. Id. Average net price per pound . . . . . . .. .. 8-58 d. Tn addition to the above, 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. Recent returns indicate that the financial position of these farms is steadily improving, and the arrangements entered into are satisfactory to all parties concerned. The bulk of the Native Trust Office investments is in mortgage securities over Native lands. The policy of the Department is to assist Maori farmers on their own properties by providing the necessary finance, and supervision in developing and working their holdings, with the object of making each individual a self-supporting member of the producing community. Such advances are subject to the approval of the Board of Native Affairs and are limited to three-fifths of the capital value of the security offered. At the 31st March, 1938, there were 442 loan accounts covering investments totalling £399,510, and during the year under review twenty-three new mortgages and advances were approved amounting to £21,073. Particulars of each station farmed under authorities Nos. (1) and (2) aforementioned are appended hereunder, but separate details concerning trusts and pooling schemes are omitted, for the reason thatprivate estates are involved. Aohanga Station. This is a large station situated on the East Coast in the Akitio County, and comprises three blocks of land —namely, Mataikona Nos. 1, 2, and 3—containing an area of 17,723 acres, of which 907 acres are reserved for the occupation of the Native beneficial owners, leaving 16,816 acres which are farmed as a sheep and cattle run. Despite the deteriorated condition of the improvements on this property and the reversion to scrub and second-growth at the commencement of occupancy, the policy adopted by the Native Trustee over a period of eight years has doubled the stock-carrying capacity, and with a continuance of the progressive programme laid down for the complete restoration and development of Aohanga, the Native owners should ultimately benefit in the distribution of profits. Further improvements have been effected during the past year, the principal item being a new and up-to-date wool-shed with ample night-pen accommodation, and a circular concrete tank with a capacity

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