ASSETS REALISATION BOARD: BALANCE-SHEET FOR THE YEAR ENDED 31st MARCH, 1904, STATEMENT OF REALISATIONS, STATEMENT OF RECEIPTS AND EXPENDITURE, AND GENERAL MANAGER'S REPORT ON OPERATIONS FOR THE YEAR.

Appendix to the Journals of the House of Representatives, 1904 Session I, B-15a

B.- 15a.

1904. NEW ZEALAND.

ASSETS REALISATION BOARD: BALANCE-SHEET FOR THE YEAR ENDED 31st MARCH, 1904, STATEMENT OF REALISATIONS, STATEMENT OF RECEIPTS AND EXPENDITURE, AND GENERAL MANAGER'S REPORT ON OPERATIONS FOR THE YEAR.

Lmd before Parliament in -pursuance of Section 23 of " The Bank of Neiu Zealand and Banking Act, 1895," and its Amendments.

I, William Callendbk, the Auditor appointed under " The Bank of New Zealand and Banking Act, 1895," to audit the accounts of the Assets Eealisation Board, do hereby certify : — (1.) That I have carefully examined the attached balance-sheet marked " A," and initialled by me, and the attached statement marked " B," and initialled by me, and the accounts and other material whereon the same are based. (2.) That the said balance-sheet and statement are correct in every particular, and truly and fully set forth the position of the Board at the date thereof, subject to the following observations: (a) All assets in the shape of landed property are taken at book value ; (b) live and dead stock on the General Manager's valuation ; (c) the amount shown to credit of Profit and Loss Account is not a cash balance, but is to a certain extent an adjustment of stock and produce values to correspond with market prices of the day. It also includes statutory payments received from the Bank of New Zealand, and is held as a set-off against deficiencies on realisations as explained by footnote on statement marked "B." W. Callendbk, Wellington, 7th July, 1904. Chief Auditor.

A.—Balance-sheet at 31st Maech, 1904.

Liabilities. Total debentures issued £ s. d. £ s. d. in terms of " The Bank of New Zealand and Banking Act, 1895 " .. • ■ 2,680,285 6 9 Since redeemed .. 880,285 6 9 £1,800,000 0 0 Exohanged for new debentures in terms of "The Bank of New Zealand Act, 1903 " 1,800,000 0 0 New debentures issued in terms of " The Bank of New Zealand Act, 1903" .. •■ •• •• 1,800,000 0 0 Produce Advance Account,— Drafts drawn against shipments .. 28,079 0 0 Bank of New Zealand,— Including station overdrafts and credits 7,562 19 7 Sundry liabilities .. .. ■• 6,230 1 6 Profit and Loss Account .. .. 144,076 2 3 £1,985,948 3 4

Assets. £ 8. d. £ s. d. Stations .. 916,184 9 4 Other freeholds .. 189,996 15 1 Other properties .. 162,638 11 5 Amount paid in exoess of Mr. Hean's valuation .. 54,507 0 0 1,323,326 15 10 Balances due by purchasers.. .. 440,725 15 7 Realisation Adjustment Account .. 181,668 7 11 Accrued Revenue Account .. .. 4,569 6 4 Cash Account .. .. .. 74 111 Sundry Assets .. .. .. 2,874 15 9 Produce Consignment Account .. 32,709 0 0 £1,985,948 3 4

We hereby certify that we have carefully examined the foregoing balance-sheet and statement, and also the accounts and other material whereon they are based, and that such balance-sheet and statement are correct in every particular and truly and fully set forth the position of the Board at the date thereof. W c' Cuff, Accountant, Geo. Todd, Chairman. Wellington, 6th July, 1904. W. C. Walteb G. Poster, General Manager.

I-β. 15a.

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B.—Profit and Loss Account for Twelve Months ending 31st March, 1904.

£ g. d. I Transfer to Realisation Adjustment Account .. .. .. .. 134,387 12 7 Land and income tax .. £7,985 10 3 General charges .. 4,391 18 4 12,377 8 7 Less land and income tax paid 1903 and 1904 on account of debentureholders refunded by the bank .. .. 3,489 18 4 8,887 10 3 Interest on debentures .. .. 68,626 12 0 Interest to bank ... .. .. 6 3 3 Revenue accrued —Reversal entry, 31st March, 1903 .. .. .. 3,069 10 7 j Balance .. .. .. .. 144,076 2 3 £359,053 10 11 The balance of £144,076 2s. 3d. here shown represents the balance of the statutory payments by the bank after providing for debenture interest, and is a contra to the deficiency on realisations as shown in the balance-sheet as " Realisation Adjustment Account," and to be transferred to that account as at Ist April. The relative cash has been applied to the redemption of debentures.

£ s. d. Balance, 31st March, 1903 .. .. -134,387 12 7 Net profit on stations .. .. 41,296 1 5 Revenue from freeholds and other properties,— Rent .. .. £712 13 0 Interest .. .. 12,648 16 11 13,361 9 11 Deduct expenditure on account of properties .. 1,350 8 3 12,011 1 8 Revenue accrued .. .. .. 4,569 6 4 Exchange Account .. .. .. 7 0 7 Bank of New Zealand, — Payment in terms of Act £50,000 0 0 Additional payment .. 116,782 8 4 166,782 8 4 £359,053 10 11 Contingent Asset. Amount outstanding at 31st March, 1904, £ b. d. and due by Bank of New Zealand .. 50,000 0 0 Amounts previously received under this head .. .. .. .. 400,000 0 0 Additional payment for 1902 .. .. 101,135 0 0 Additional payment for 1903 .. .. 116,782 8 4 £667,917 8 4 W. C. Cuff, Accountant. G. T. W. G. P. W. C.

Realisations for Twelve Months ending 31st March, 1904.

Property. Area. Sale Price. Surplus. Deficiency. ! Book Cost. Land-tax, plus ]0 per Cent. Properties finally realised. Auckland — Puhekairunga Block Lot 78 and Part 77, Hamilton East Lot 75 and 76, Hamilton East Okapako Block Te Karamu A 2979a Block Onehunga Ironworks Maukoro Block Part Lot 302, Kirikiriroa Part Lot 302, Kirikiriroa Section 14, Blook 14, Waharoa Section 14, Block 13, Waharoa Part Section 8, Waharoa Extension Section 8, Blook 14, Waharoa Part Paddock 27, Matamata Matamata Estate (balance) A. R. P. 332 0 0 13 0 i 0 0 330 0 0 180 0 0 3 1 13 2,680 0 0 10 1 12 455 0 1 £ S. (!. 290 10 0 180 0 0 250 0 0 412 10 0 180 0 0 1,500 0 0 2,010 0 0 6 7 0 284 7 6 I ) £ s. d. 125 10 0 162 10 0 670 0 0 £ s. d. 52 0 0 38,727"8 1 £ s. d. 165 0 0 482 0 0 250 0 0 180 0 0 40,227 8 1 1,340 0 0 £ s. d. 182 0 0 264 0 0 180 0 0 99 0 0 1,021 0 0 ! 1 2,788 3 6 3,078 18 0 J 0 2 18-23 30 0 0 ! 18 0 0 0 1 8-3 344 3 8 42,739 0 0 58 10 0 12 0 0 258 12 0 126,745 0 0 19,771 12 5 140,875 14 5 Pauranga— Section 16, Rangiuru Section 17, Rangiuru Ohauiti Estate 476 0 0 463 0 0 6,547 0 0 3,808 0 0 3,704 0 0 12,000 0 0 i 13,621 18 10 |33,133 18 10 Canterbury— Lot 19, Southbridge Section 10, Waihaorunga Rural Section 18847, Waihaorunga Sections 23, 28, 34, 36, 38, and 39, Waihaorunga Part Sections 4 and 5, and Sections 27, 30, 41, and 42, Waihaorunga Sections 9, 21, 22, 24, 25, and 26, Waihaorunga New Zealand Loan and Mercantile Agency Company, on account Belfast lands 0 1 29$ 442 3 20 50 0 0 3,162 2 0 2,732 0 38 10 0 0 1,107 3 9 150 0 0 16,603 2 6 LI,270 10 0 10 0 0 4,729 10 11 20 0 0 45,060 7 2 20 0 3,001 0 0 11,200 0 0 1,059 3 8 1,115 2 10 55 19 2 Properties partially realised. Auckland— Lot 11, Section 74, Surrey Hills Lots 1-5, 29-30, Section 54, Surrey Hills.. Lot 12, Section 74, Surrey Hills Lot 19, Section 38, Surrey Hills Lot 16, Section 31, Surrey Hills 40' x 132' 40' x 132' 38' 6" x 132' 46'10"x 133'2" 110 0 0 500 0 0 110 0 0 105 17 6 105 7 6 •• " -• Carried forward 193,057 16 11 958 0 0 |80,759 17 5 :271,928 9 4

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Realisations for Twelve Months ending 31st March, 1904— continued.

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Property. Area. Sale Price. Surplus. Deficiency. Bonk C.nst. Land-tax, plu; nooK cost. 10 per Cent A. B. P. £ s. d. 193,057 16 11 £ s. d. 958 0 0 - £ s. d. 80,759 17 5 £ s. d. 271,928 9 4 £ s. d. Brought forward Properties partially realised —continued, .uckl and— continued. Lot 7, Section 32, Surrey Hills Lot 42, Section 75, Surrey Hills Lot 3, Section 41, Surrey Hills Lot 2, Section 83, Surrey Hills Lot 21, Section 19, Surrey Hills Lot 13, Section 17, Surrey Hills Lot 22, Section 5, Surrey Hills Lots 23 and 24, Seotion 18, Surrey Hills.. Section 6a, Waitoa Section 42, Waitoa Sections 37 and 38, Waitoa Section 51, Waitoa Paddock 34, Waitoa Section 33, Waitoa Section 37, Waitoa Section 35, Waitoa Sections 22 and 23, Waitoa Section 36, Waitoa Paddock 37a, Waitoa Paddock 35, Waitoa Section 40, Waitoa Section 34, Waitoa Section 17, Waitoa Sections 1 and 2, Waitoa Section 5, Hangawera Section 13, Hangawera Section 6, Hangawera Part Section 7, Hangawera Section 9, Hangawera Section 4, Hangawera Section 10, Hangawera Section 12, Hangawera Section 11, Hangawera Sections 20-22, Motumaoho No. 2 Section 1, Motumaoho No. 2 .. Section 8, Motumaoho No. 2 .. Section 9, Motumaoho No. 2 .. Section 26, Motumaoho No. 2 .. Section 2, Motumaoho No. 2 .. Section 15, Motumaoho No. 2 .. Part Section 19, Motumaoho No. 2 Part Sect.on 14, Kuranui Part Section 3, Kuranui Part Seotion 12, Kuranui Part Seotions 4 and 5, Kuranui Part Section 2, Kuranui Sections 168-170, Morrinsville Sections 1 and 30, Morrinsville Section 54, Morrinsville Section 50, Morrinsville Section 4, Morrinsville Section 5, Morrinsville Seotion 2, Morrinsville Section 177, Morrinsville Seotion 178, Morrinsville Section 112, Morrinsville Section 12, Waikato Coal Company's land Sections 15 and 16, Waikato Coal Company's land Sections 9, 11, and 26, Waikato Coal Company's land Section 2, Waikato Coal Company's land Part Maraetai Block Half-interest Section 141, Tamahere Part Three Kings' Farm Sections 26 and 27 of 6 and 6a, Hendi rson Part Paparamu Estate 38' 9" x 132' 33' 6" x 132' 40' x 115' 6" 40' x 115' 6" 38' 6" x 132' 52' x 115' 6" 40' x 115' 6" 77' x 132' 2 0 0 301 3 38 508 3 14 244 0 13 ' 71.1 2 27 322 1 24 802 2 10 312 1 14 328 3 7 380 3 10 869 0 38 719 2 5 377 3 7 308 3 2 188 0 30 21 1 32 546 0 24 318 3 38 566 3 16 10 1 13 343 0 0 461 2 24 327 1 39 299 2 3 413 2 37 ; 99 1 0 232 2 32 106 1 21 87 3 13 45 2 14 188 3 8 432 0 28 10 0 0 137 0 16 291 2 0 458 2 22 922 2 33 274 1 24 3 1 31-6 10 0 0 0 36 0 1 16 0 2 0 0 2 0 0 2 0 1 0 38-7 1 0 38-7 0 1 14 349 0 0 918 0 0 106 11 3 133 15 0 90 0 0 130 0 0 96 5 0 130 0 0 120 0 0 211 15 0 20 0 0 1,585 10 0 2,671 8 0 1,037 7 0 3,914 5 0 2,176 4 0 1,605 2 6 1,835 0 0 2,301 12 0 1,999 5 6 2,825 0 0 1,439 0 0 1,889 0 0 2,084 3 0 1,223 4 0 160 17 6 2,730 15 0 1,515 4 0 2,692 10 0 49 4 6 1,114 15 0 2,077 8 6 1,391 17 6 898 11 0 1,241 3 6 692 18 3 1,163 10 0 638 6 0 614 17 0 455 17 6 694 0 0 1,512 12 0 125 0 0 685 10 0 947 7 6 1,261 5 0 2,889 0 0 1,646 8 0 45 0 0 60 0 0 40 0 0 40 0 0 20 0 0 27 10 0 20 0 0 40 0 0 50 0 0 80 0 0 305 7 6 573 15 0 - 1,282 0 0 961 10 0 1,400 0 0 6 0 0 97 3 0 48 0 0 174 3 11 3 0 0 700 0 0 6 0 0 95 0 0 3,360 0 0 196 13 6 22 10 0 'auranga — Seotion 17, Waimana .. 62 2 32 689 14 0 )unedin — Sections 8-14, Block 22, Musselburgh .. Sections 28-41, Block 17, Musselburgh .. Sections 7-14, Block 17, Musselburgh .. Sections 15-17, Blook 17, Musselburgh .. Sections 9-20, 42-51, Blook 18, Musselburgh Sections 17-28, Block 22, Musselburgh .. Sections 9-12, Blook 23, Musselburgh .. 1 0 0-47 1 2 16-48 0 3 26-56 0 1 14-96' 315 0 0 630 0 0 480 0 0 180 0 0 I 4 3 22-39 2,441 10 0 Carried forward 261,260 11 11 958 0 0 [80,759 17 5 [271,928 9 4|

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Realisations for Twelve Months ending 31st March, 1904— continued.

W. C. Cuff, Accountant.

Property. Area. Sale Price. Surplus. Deficiency. Book Cost. Land-tax, plui 10 per Cent. A. E. P. £ a. d. 261,260 11 11 £ s. d. 958 0 0 £ 8. d. 80,759 17 5 £ s. d. 271,928 9 4 £ s. d. Brought forward Properties partially realised —continued. Dunedin— continued. Section 2, Quarry Paddocks, Musaelburgh 1 2 33 426 11 3 Sundry— Wellington Industrial Development Company, in lieu of fencing Maraetai Onehunga Ironworks, value of shed removed to Tirau C. J. Hutohinson, for option over Ohauiti forfeited Waihaorunga Bank of New South Wales, balance old account paid Mrs. Keesing, for right to conneot with A.R.B. drain, Glenside Awamate Estate, four years' rent Aranui No. Iβ Block Matamata, Stock Adjustment Account transferred Waihaorunga, Stock Adjustment Account transferred Lockerbie, Improvement Suspense Account transferred Matamata, Improvement Suspense Account transferred Rangiuru, Improvement Suspense Account transferred Waihaorunga, Improvement Suspense Account transferred Realisation Expenses Account transferred— Agents' commission, surveying, advertising, law-costs, travelling-expenses, &c. Members' Travelling - expenses Account transferred 73 0 0 15 0 0 35 0 0 8 13 7 7 0 0 28 0 0 4,274 13 10 11,118 15 10 1,200 0 0 6,701 0 0 275 0 0 1,714 0 0 4,885 10 11 72 17 9Totals .. 261,825 16 9 958 0 0 111,029 15 9 271,928 9 4 Summary— Properties finally realised Properties partially realised 192,185 5 6 69,640 11 3 Total 261,825 16 9

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Statement of Receipts and Expenditure for the Year ending 31st March, 1904.

W. C. Cuff, Accountant.

GENERAL MANAGER'S ANNUAL REPORT FOR YEAR ENDING 31st MARCH, 1904. (No. 10/4.) Wellington, 6th July, 1904. [Meeting held 7th July, 1904.] I have the honour to report upon the business of the Board for the year ending 31st March, 1904. The improved demand for land throughout the colony has resulted in a considerable increase in sales over previous year. The markets, both colonial and Home, for our products have been good and prices satisfactory, and this, with favourable seasons, has again enabled a substantial profit on the working of the country properties still in our hands. Taking into account the statutory £50,000 received from the Bank, the surplus for the year, after providing debenture interest, amounts to £27,293.

Rece; ipta. Expeni liture. Capital. Properties sold and purchased Live-stock and implements sold and purchased Redemption of debentures Permanent improvements £ s. a. 83,801 4 2 106,382 4 10 £ s. a. & s. 150 0 28,539 1 d. 0 2 & s. d. 1,587 2 1 231,500 0 3,366 3 0 2 263,555 4 4 191,770 11 1 General. Interest account Interest on debentures ... Exchange Bent Payment by Bank of New Zealand Maintenance of properties Realisation expenses and members' travelling-expenses Charges Petty cash Manure and seed bought aud sold Fencing erected for purchasers ... Sundry receipts 12,631 11 11 9 2 11 679 15 0 166,782 8 4 30 13 6 6 3 3 68,626 12 0 19 9 3 1,378 14 7 4,394 14 11 3,581 6 11 15,790" 7 3 12,323 4 10 130 0 0 10,484 5 0 681 17 0 61 11 3 98,045 0 10 199,566 17 1 Stations. Wool and other produce Rent... 54,109 2 9 445 10 1 9,075 15 4 1,063 19 5 15,208 11 11 1,727 17 1 2,422 19 6 5,253 1 11 9,595 5 5. 211 12 5 10,487 6 10 Wages Repairs Rates and taxes Cost of growing turnips (stock-feed) Renewing pastures for grassing ... Rabbiting Manure Creameries Sundry receipts and disbursements 1,251 14 10 347 7 1 ,153 14 9 6,761 15 0 59,256 16 0 Expenditure on permanent improvements charged to capital on account of stations 61,808 4 10 2,551 8 10 Balance 26,634 1 9 £ 447,491 2 11 & 447,491 2 11

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Summarised, the position is as follows : — £ s. d. £ s. d. Balance of profit on stations ... ... 41,296 1 5 From sundry properties ... ... ... 16,580 8 0 From payments by Bank of New Zealand ... 166,782 8 4 Exchange ... ... ... ... 707 Balance, 1903 ... ... ... ... 134,387 12 7 359,053 10 11 Less balance 1903, transferred to Realisation Adjustment Account... ... ... 134,387 12 7 „ debenture interest ... ... ... 68,626 12 0 „ interest to Bank ... ... ... 633 „ land and income tax ... ... ... 7,985 10 3 „ charges, &c. ... ... ... 7,461 811 218,467 7 0 Land-tax paid 1903-4 on account of debentureholders refunded by Bank ... ... 3,489 18 4 214,977 8 8 Balance ... ... ... ... £144,076 2 3 The following statement will show the comparative returns each year since realisation commenced :— 1896. 1897. 1898. 1899. 1900. 1901. 1902. 1903. 1904. £ £ £ £ £ £ £ £ £ Station properties ... 58,493 56,336 43,296 42,841 87,455 63,019 21,927 38,524 41,296 Sundry properties ... 6,295 6,897 6,659 7,031 6,822 10,907 10,962 10,799 13,510 showing approximately an average earning for the period 1895 to 1904 as follows : — For Year to 31st March, On On 1904, on latest Book Cost. my Valuation. Government Valuation {plus Stock). Station properties ... 3-41 per cent. soB per cent. 6-83 per cent. Sundry properties ... 1-84 „ 2-77 „ 7-86 Statutoey Payments by Bank of New Zealand. The statutory payments of £50,000 have been duly received, the amount accrued due at 31st March, 1903, having been paid on Ist April, 1903, together with a further £116,782, as anticipated on 10th August, 1903. The £50,000 due at 31st March last was paid on the 9th April, and a further sum of £125,532 has since been received. The total payments by the Bank to date are £667,917. Debenture Interest. Debenture interest, amounting to £68,626, has been paid, and provided for from revenue as under: — £ From surplus 1903-4 ... ... ... ... ... ... 45,920 Statutory payment by Bank of New Zealand, 1903 ... ... 50,000 Add additional payment by Bank of New Zealand ... ... 116,782 212,702 leaving a surplus of ... ... ... ... ... 144,076 which is to be carried to Realisation Adjustment Account to provide for deficiencies on realisations. Add bank payment for 1904 of ... ... ... ... ... 50,000 to carry forward. Realisations. Sales to the extent of £286,350 have been made during the year, as compared with £138,498 the previous year, viz.: — 1902-3. 1903-4. £ £ Country lands ... ... ... ... 119,740 252,962 Town lands ... ... ... ... ... 9,333 8,863 129,073 261,825 Stock, implements, &c, sold on properties finally realised ... ... ... ... ... 9,425 24,525 £138,498 £286,350

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The proportion of sales to book cost (£2,731,706) is 45-76 per cent., and to land-tax valuation, plus 10 per cent, for sundry properties and my valuation for station properties, which together total £1,895,179, it is 65-96 per cent. The sales for the period 1895-1904 (including stock) total £1,250,028, as follows : — Deficiency on Book Cost (including Book Cost. Realisation Expenses, &o.). Sales of properties finally realised £ £ £ 1895-1904 (includingstock) ... 700,975 316,056 1,017,031 Properties partially realised, 1895--1904 ... ... ... 549,053 £1,250,028 The localities of the sales made are as follows:— xn , t tt, Town Suburban Estates. Farms. Seotions> p ropertieSi £ Auckland ... ... 7 270 722 270 ... 518,385 Canterbury... ... 3 98 22 63 ... 286,455 Hawke's Bay ... 2 ... 10 104,250 Otago ~. ... 2 10 636 182 ... 75,202 Marlborough ... 1 4 65 6 ... 20,414 Wellington ... ... 1 17 31 1 ... 156,631 1,161,337 Proceeds realisation of sundry assets ... ... ... ... 8,419 Stock sales on properties finally closed ... ... ... ... 80,272 £1,250,028 Station Peopeeties. Comparison of Actual Profits for Nine Years, Stations sold during that Period being omitted. Year ending Actual Profit. Percentage Percentage 31st March, £ on Book Cost. on my Valuation. 1896 ... ... ... 16,195 ... 1-64 ... 355 1897 ... ... ... 30,852 ... 290 ... - 6-76 1898 ... ... ... 22,423 ... 2-10 ... 4-91 1899 ... ... .. 36,031 ... 3-40 ... 7-90 1900 ... ... ... 32,956 ... 3-25 ... 7-22 1901 ... ... ... 44,390 ... 4-33 ... 9-73 1902 .. ... ... 17,053 ... 1-86 ... 3-74 1903 ... ... ... 33,891 ... 3-82 ... 7-43 1904 ... ... ... 17,279 ... 2-12 ... 3-78 Average ... ... £27,897 2-82 6-11 The estates sold during the year comprise : — Part of Fencourt Estates ... ... ... ... ... 6,498 acres. „ Lockerbie Estate ... ... ... ... ... 6,530 „ „ Paparamu Estate ... ... ... ... ... 3 „ „ Waimana Estate ... ... ... ... ... 62 „ Whole of Matamata Estate ... ... ... ... 43,102 Balance of Waihaorunga Estate ... . 9,388 „ Rangiuru Estate, 939 acres) . .„„ Whole of Ohauiti Estate 6,547 „ J '" - " — /,4bb " 73,069 acres.

Comparison of Operations, 1903 with 1904.

Grassing. Oats. Turnips. | With Plough. _ Surface- Acres Yje , d _ list Time. Ben."- «"• Oats. Maize. Year. Rape. Plqual per Acres. Acre. Yield. Equal per Acre. 1st Time. 903 .904 Acres. Acres. Acres. ... 3,253 8,537 : 1,368 ... 2,385J-j 6,572*j 689 Acres. Acres, j 7,944 2,678 ; 675 5,036 2,227*1,362 Bushel 8. 11,800 27,540 Bushels. 18 20 40 20 Bushels. 2,050 500 Bushels, 51 25 Increase ... Decrease ... 867* 1,964* 679 2,908 ... . 687 450* ... 15,740 2 20 1,550 26

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Comparison of Operations 1903 with 1904— continued.

Working-expenses. 1903. 1904. £ & Eenewing pastures ... ... ... ... ... 7,127 6,593 Implements, depreciation ... ... ... ... ... 685 590 Cost of turniping ... ... ... ... ... ... 16,897 16,687 General expenses, wages, repairs, rates, feed, &c. ... ... 28,278 23,904 Eent ... ... ... ... ... ... ... 844 470 Babbiting ... ... ... ... ... ... 1,550 1,328 Grazing ... ... ... ... ... ... ... 490 482 55,871 50,054 Permanent improvements ... ... ... ... ... 6,817 3,150 £62,688 £53,204

Stock Sales. Comparison of sales for two years ending 31st March, 1904: — Sheep.

Stock on Hand and Valuation at 31st March, 1904. Sheep.

Year. cub a '3 I I •+-t 1 p tab a I 8 1 I 1903 ... 1904 ... Chains. 794 401£ Acres. 380 54 Acres. 4,043 3,357| Chains. 2,562 1,743£ Increase Decrease 392.$ 326 685J 8181

Year. Number sold. Net Proceeds. a voon Number "Net Average. f rozen . Proceeds. Average. Total disposed of. Net Prooeeds. Average. .903... 41,031 £ 22,824 £ s. d. , n eon 0 11 1 ' ' U 1X l jl.17,313 A IK K (8. 614 0155 jl. 15,173 £ 6,174 8,953 283 7,764 £ s. 0 16 0 10 0 9 0 10 d. 2 4 1 2 J 65,976 J 66,040 £ 37,951 £ a. d. 0 11 6 .904... 50,253 38,751 46,798 0 14 2 Me. 903... 904... 2,113 18,826 8 18 4,992 30,659 6 2 2 9 2,113 18,826 I 8 18 4,992 30,659 j 6 2 2 9 'Value of frozen meat for 1904 is estimated.

1903. 1904. No. on Hand. Valuation. Average. No. on Hand. Valuation. Average. £ iforth Island — Waikato Other estates 102,277 15,366 71,462 8,503 £ s. d. 0 13 11 0 11 0 95,310 13,557 £ 63,399 8,195 £ s. 0 13 0 12 d. 4 1 117,643 45,898 79,965 26,104 0 13 0 11 7 4 108,867 40,880 71,594 25,312 0 13 0 12 1 4 louth Island 163,541 106,070 0 12 11 149,747 96,907 0 12 11

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Stock on Hand and Valuation at 31st March, 1904 — continued.

2—B. 15a.

'att, :e. 1903. 1904. No. on Hand. Valuation. Average. No. on Hand. Valuation. Average. lorth Island— Waikato Other estates 11,906 1,397 55,397 5,343 4 13 3 16 0 6 9,711 1,370 45,323 5,556 4 13 4 1 4 1 iouth Island 13,303 35 60,740 124 4 11 3 11 3 0 11,081 28 50,880 89 4 11 3 3 9 6 13,338 60,864 4 11 3 11,109 50,969 4 11 9 i-CLIP. 1903. 1904. Number. Average per Pleeoe. Number. Average per Pleeoe. iheep shorn 177,456 lb. oz. 6 8 Sheep shorn 130,310 lb. oz. 8 6 Net Beturns 'OK TW' Yeaes. 1903. 1904. Net Weight. Net Return at Port of Shipment. Average per lb. Net Weight. Estimated Net Return at Port of Shipment. Average per lb. rreasy iuoured lb. 1,167,893 121,221 £ 38,335 4,701 d. 7-87 9-37 lb. 963,022 79,826 £ 30,647 2,967 d. 7-63 8-92 iING. 1903. 1904. Ewes to Ram. Lambs bred. ■ Percentage. Ewes to Bam. Lambs bred. Percentage. 77,403 61,738 79 66,122 53,326 81 MOKT .LITY. Sheep. Cattle. 1903. 1904. 1903. 1904. Dead or Missing. Per Cent. Dead or Missing. Per Gent. Dead or Missing. Per Cent. Dead or Missing. Per Cent. 16,751 8-14 13,320 7-49 430 3-02 360 I 2-54

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The various estates and properties still on hand are in good condition, the country properties being kept in best heart, and worked less with a view to maximum annual profits than to bring into and maintain in most profitable condition for the purchaser. Notwithstanding this our stations have contributed well to the income of the Board, although, as sales are reducing our earning area, revenue from this source, of course, is also shrinking. The special realisation of the year has, of course, been the Matamata Estate, which has been compulsorily taken by the Lands for Settlement Department. Our claim was for £3 10s. per acre, and at this price I have always considered it cheap. In support of our case I employed as valuers none but experienced and practical farmers—men who had lived in the district for years, and who had successfully made their way and their living out of the land, and who, from their experience of similar country, were unquestionably well qualifiel to value. Their instructions were to make an impartial valuation, and their valuations, although somewhat below our claim, were accepted by us without demur, and in no case were their opinions either questioned or sought to be influenced or altered. That the property was worth all and more than estimated by our valuers, and asked by us, is proved by the very successful ballot held in June, and the since very freely expressed opinions of the Department that Matamata is cheap and a good bargain. Although this estate has been somewhat sacrificed, we shall, from its close settlement, derive considerable benefit in an enhanced inquiry for our other lands. Subdivisional surveys of the remaining Waikato properties are now nearly completed, and by this time next year a very substantial area should have changed hands. Notwithstanding expressed opinions that realisation has proceeded too slowly, it is certain that the Board's policy has substantially contributed to the lessening of the deficiency to be ultimately made up. Had the Board rushed the properties on to what has, until recently, been an unwilling market, the loss on actual values would have been very great. In conclusion and in support I may point to the satisfactory outcome of certain estates which have been finally realised, namely : —

The market value for lands has, of course, advanced, since the banking legislation, to such an extent as could neither have been foreseen nor hoped for ; but it is a curious fact that, were we now in possession of the whole of the properties handed over at that date, there would not only be a represented value more than sufficient to provide for the present estimated deficiency, but in the meantime the profits from the working properties would, with the advance of prices for produce, have fully provided for the debenture interest. It is gratifying to be able to report that payments of purchase-money and interest to the 31st March have in every case been met or arranged for to date. Walter G. Foster, General Manager.

Approximate Cost of Paper.— Preparation, not given ; printing (1,425 copies), £9 15s.

By Authority: John Mackay, Government Printer, Wellington.

Price 6d.]

Area. Sale Price. Best Previous Offer. Difference. Average per Acre. *-• vizr. Total. Per Acre. Bangiuru ... Ohauiti Matamata* Waihaorunga Acres. 6,841 6,547 42,739 17,918 £ 32,250 12,000 126,745 78,315 £ s. 4 14 1 16 2 19 4 7 d. 3 7 3 5 £ 25,653 10,000 85,478 53,754 & ?. 3 15 1 10 2 0 3 0 a. o 6 0 0 £ 6,597 2,000 41,267 24,561 £ h. d. 0 19 3 0 6 1 0 19 3 17 5 * This excludes the ofier of £2 10s. per acre recently made by the Government, and on which they compulsorily toquired.