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9 perches at Onehunga. The whole of these were, in the first instance, granted to Messrs. Sinclair, Swainson, and Shepherd, in " trust for the maintenance of lodging-houses, stores, or market-places for Natives and other poor persons." I will now briefly state the steps which appear to have been taken in respect of each of these reserves. lst, The reserve of 2 acres and 14 perches at Mechanics' Bay on which the Native Hostelry tands. On the 20th April, 1854, Messrs. Sinclair, Swainson, and Shepherd conveyed this block to Colonel Wynyard, Messrs. Whitaker, Pollen, Gilfillan, and Boylan, and the Superintendent and Executive Council of the Province of Auckland. On the 15th October, 1865, Messrs. Whitaker, Gilfillan, and Pollen signed a reconveyance to the Crown. This does not appear to be completed, as, through the death of Colonel Wynyard and the absence of Mr. Boylan, their signatures are not attached. It would also seem, from the wording of the conveyance of the 20th April, 1854, that the trust is also vested in the Superintendent and Executive Council of the Province of Auckland for the time being; it therefore appears necessary that they should be parties to the reconveyance to the Crown. This reserve, after making ample provision for the Native Hostelry, ought to produce a rental of £600 per annum. It is now occupied by several dealers in posts, rails, and firewood, who pay no rent, and who should be speedily removed if I had the power, as they are a great nuisance in many respects. 2nd, The reserve of 2 roods and 15 perches at Mechanics' Bay appears to be still in the hands of the original trustees (Messrs. Sinclair, Swainson, and Shepherd) ; a conveyance has been drawn out on the back of the grant, but does not appear to have been executed. I am not acquainted with this reserve, so cannot say what is its value. 3rd, The reserve, 6 acres and 1 rood, situated on the point of the cliff between St. George's and Judge's Bays, was, on the 20th April, 1854, conveyed by Messrs. Sinclair, Swainson, and Shepherd to Colonel Wynyard, Messrs. Whitaker, Pollen, Gilfillan, and Boylan, and the Superintendent and Executive Council of the Province of Auckland for the time being. On the 18th November, 1856, the last-mentioned gentlemen, together with Messrs. Williamson, O'Neill, and Buckland, members of the Executive Council at that time, reconveyed the land to the Crown. This reserve was leased to John Charles Blackett, Esquire, for the term of twenty-one years from the 9th June, 1852, at a rental of £13 per annum. This lease has therefore seven years more to run. I should think the land in question would now let for £10 per acre. 4th, The reserve of 2 acres and 9 perches at Onehunga has been reconveyed to the Crown in precisely the same manner as the reserve of 6 acres 1 rood. A Native Hostelry has been erected on the block which is leased to Mr. David Hutchison for a term of three years, commencing from the 23rd December, 1864, at a rental of £60 per annum. This reserve having a water frontage, and also that to two roads, is of considerable value, which would be enhanced by subdivision into allotments. I cannot state what the probable rental would be. From the above statement, it seems that these reserves are in the following positions at present, viz.:— The reserves at Onehunga and Judge's Bay have been reconveyed to the Crown. The reserve at Mechanics' Bay, containing 2 acres and 14 perches, is in a transition state; it is neither vested in the Crown nor in the trustees. The small reserve at or near to Mechanics' Bay appears to be still vested in the original trustees, Messrs. Sinclair, Swainson, and Shepherd. On referring to " The Auckland Hospital and Grammar School Beserves Act, 1856," I find that certain lands granted for endowments for the above purposes were vested in trustees, and were conveyed from the original trustees to others. Doubts appear to have arisen as to the validity of the Crown Grants and conveyances, and, in consequence, the above-recited Act was passed by the General Assembly. If these grants were invalid, the same rule applies to those of the " Hostelry Endowments," which apparently were of a like nature. It would therefore seem necessary to legislate in this case. I presume that the reconveyance to the Crown was not intended to be absolute, as the Native Hostelry is situated on one of the reserves partially reconveyed, but that this step was taken with a view to new Crown Grants being issued, and new trusts erected. I would most respectfully point out that, in my opinion, there is a decided objection to the lands being re-granted, subject to a trust, for the benefit of both Europeans and Natives. I would therefore beg to suggest that the lands should be divided, a portion being placed in the hands of a Commissioner of Native, Beserves for the benefit of the Natives, and the remainder to be granted to the Superintendent for the benefit of poor persons of the European race. As lam not aware of any other provision having been made for Native purposes within the City of Auckland, I would beg to recommend that the largest proportion of the lands should be granted to the Native trust; perhaps the following proposal would be a fair one : — That the piece containing 2 roods and 15 perches should be granted to the Superintendent. That 1 rood and 14 perches of the piece containing 2 acres and 14 perches should be granted to the Superintendent, and that 1 acre and 3 roods should be placed in the hands of the Commissioner of Native Beserves. That 2 acres and 1 rood of the St. George's Bay Eeserve should be granted to the Superintendent, and that 4 acres should be handed over to the Commissioner of Native Beserves. That 2 roods and 20 perches of the Onehunga Beserve should be granted to the Superintendent, and 1 acre 1 rood and 19 perches should be handed over to the charge of the Commissioner of Native Beserves. I believe that if these reserves were properly managed an income would be produced which could be expended so as not only to maintain the Native Hostelry in thorough repair, but to remunerate a medical officer, relieve destitute and infirm Natives, and also pay a portion of the