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H.—2lb

but it is hardly to be supposed that, when his Lordship becomes fully aware of the precise terms of the trust which has devolved upon him, he will pursue any other course than that which is consistent with the conscientious discharge of duty which has distinguished his character both before and since his arrival among us. It is, of course, well known that Motueka and the Waimeas are the two main agricultural districts of the Province, and, according to the statistical returns lately published in your paper, the agricultural produce of Motueka (with the exception of hay) decidedly exceeds that of the Waimeas, and its population is proportionate ; while the proximity of the latter to the City of Nelson and all its educational advantages afforded an obvious reason why the Queen's representative should have made provision for the establishment of a public school at Motueka. If any doubt could have been entertained of the Governor's power to make the disposition he has done, it may be observed that the act has stood the test of sixteen years' undisturbed possession and of some little discussion, and at any rate it stands on the same footing as some valuable lands now held for the support of Nelson College. It remains only for the ingenuity of some ingenious counsel to show (if that be possible) why a trust created for the establishment of a public school on the terms of the grant should any longer be applied to purposes alien to the objects designated. Yours, &c, Motueka, 24th May, 1869. David Jennings. I have received from some of the Natives at Motueka a complaint as to the acquisition of part of the land, which I produce ; also my answer. (These are appended to the Bishop's letter.) In all matters affecting the leases I am advised by the Solicitor, Mr. Sinclair. With reference to the Rev. Mr. Ronaldson's stipend, I don't know if it is necessary to make any remark, except that Mr. Ronaldson was in receipt of a larger salary than that which he receives here. It was only by offering £300 a year that I could obtain the services of a duly qualified teacher. The Bishop produced a book, kept by himself, showing the sections leased, the rents received, and terms of leases, &c. The Bishop read Bishop Hobhouse's statement respecting the trust, published in a Report of the Proceedings of the First Synod of the Diocese of Nelson, August, 1859, and handed in the following letter:— Pakticulabs op Estate and Trust. Gentlemen, — Bishopdale, Nelson, 20th December, 1869. I beg to lay before you the following facts respecting the Wakarewa Estate, which passed into my hands from Bishop Hobhouse, whom I succeeded, in the year 1866, as Bishop of Nelson. On my arrival in the Colony in 1867, I found Mr. John Greenwood engaged as manager of the estate, and teacher to the Maoris, but on his resigning the office I succeeded in obtaining, not without some difficulty, the services of a gentleman sufficiently qualified as a Maori scholar to carry on the necessary instruction. It was some months before I could supply the post, although the want was made generally known in this and the North Island. Several applied who were qualified either in Maori or English, but not in both. The income from the estate is not at present sufficient to do more than provide a good master, who gives all his time to such Maoris as he can collect together on every day in the week. The income of the trust is not at present sufficient to carry out the industrial training, even if the Natives were willing to accept it. The capitation grant of £10 per annum would not be sufficient to pay for their expenses, and it is not likely that the Natives would pay the necessary balance themselves. I have requested Mr. Eonaldson to hold school for the Natives both in the morning and evening, and his reports as to attendances will be laid before you. During the winter months the attendance was good and encouraging; in spring and summer the planting takes the Natives away, and it is difficult to keep the school together. Mr. Eonaldson visits the Natives in Takaka and Motupipi, and I was present last week at a meeting held at Motupipi, when twenty-five Natives were present, and agreed to contribute money or labour towards the erection of a schoolroom, the ground for which one was willing to give without charge. This school would be a kind of a branch school to that at Wakarewa, and the master might be subsidized from these funds, regarding the trust as applicable to the whole of the Natives in the Nelson Bay. The gross income of the tryst last year was £354 3s. sd. The property is divided up into forty-three holdings, spread over a considerable area ; and the transfer of leases, looking after fulfilment of covenants, and the collection of the half-yearly rents and occasional arrears, require a considerable outlay of time, and have been efficiently attended to by a collector and bailiff resident close to the estate, Mr. P. Greenwood. The stipend paid from the estate to the Rev. W. Ronaldson for last year was £285 10s. 7d.; and as on the occasion of his visits to the Natives he is invited to read English services, I have arranged that the contributions so given should reduce the stipend due from the trust to Mr. Eonaldson as teacher. The College building is unfortunately situated as regards the Natives, unless it is used as a boarding school, and involves great labour in going to and fro—so much so that the teacher is at present absent from home often the whole day in winter time. By this plan, however, the trust is saved from paying rent for a teacher's residence. The cost of collecting and looking after the property is at the rate of 10 per cent.; the insurance, repairs to house, supply of fences, &c, according to leases and special agreements, amount to about £25 per annum, leaving an annual balance of income over expenditure of about £10 at present. The rents are very slowly increasing; but by careful management I hope to carry out both branches