B.- -16d

2

Considering the stagnant condition of the land market during the past three years, for only two of which has the Board been in actual control, I consider the realisation to have made good progress, notwithstanding the opinion to the contrary expressed by public men. It must be remembered that the amount realised is to be compared, not with the amount at which the properties were taken over, but at the actual value; the respective amounts being: Book cost, £2,731,706; proportion of sales to cost, 11-36 per cent. Estimated value, £1,879,105 ; proportion of sales to estimated value, 16-51. Station Peopeeties. The result of the working, whilst not up to that of the previous year, is, considering the adverse season and the sale of the Arowhenua and Albury Estates, which were large contributors to revenue, very satisfactory, the profit available for the year being £43,318 3s. 6d. After adding reclamations, and deducting surpluses on the previous year's produce shipments, the actual amount earned is £42,748 10s. Id.

The following is a comparison embracing the period since the institution of the Board, stations since disposed of being omitted: —

Showing for the period referred to an average profit of £44,647, equal to 2-75 per cent, on book cost, and equal to 4-34 per cent, on my valuation, as compared with the average of the whole time the Estates Company held it of £27,504; equal to 1;68 per cent, on book cost, and equal to 2-66 per cent, on my valuation. It will be seen by reference to the station balance-sheets that only in one instance have we failed to make a profit, and in this instance the property was small and could not be worked to a profit when all labour has to be paid for. The place has since been sold. The working-expenses for the two years ending the 31st March, 1898, omitting stations disposed of, were as under : —

Working-expenses are still kept as low as is consistent with the proper management and maintenance in profitable, order of the properties. It has been said that our estates are being allowed to run back. This is not the case, as our operations are planned to turn over every inch of our cultivated ground in from five to seven years, besides which we are manuring heavily, and taking nothing but wool and mutton off the country. In addition to this we are, as may be found desirable, bringing in further areas of land hitherto unremunerative.

Sales of Stock. The following is a comparison of realisations for the two years ending 31st March, 1898: — Sheep.

Note. —1898 : The value of frozen meat is estimated.

Year. Actual Profit. Equal per cent. on Book Cost. Equal per cent. on Mr. Poster's Valuation. 1896 1897 1898 & 37,000 54,822 42,749 \ 2-28 3-37 2-62 3-60 5-29 4-13

Particulars. 1897. 1898. Permanent improvements Renewing pastures, &c. (20 per cent, of which is charged to Profit and Loss Account each year) ... Depreciation in implements and furniture ... Cost of turniping General expenses, wages, repairs, rates and taxes, &c, including feed... Rent and interest Rabbiting Grain-growing for sale ... 4,841 11,003 1,046 15,641 39,766 1,783 2,191 660 8,260 9,244 1,125 15,093 37,796 2,269 1,204 567 Total Deduct expenditure on permanent improvements ... 76,931 4,841 75,558 8,260 Actual cost for year ... ... ... ... 72,090 67,298

Year. J Number sold. Net Proceeds. Number frozen. Net Proceeds. Total disposed of. Net Proceeds. Average. Average. Averages. 1897 1898 62,216 67,379 £ 23,247 24,129 s. d. 7 7 18,434 23,200 £ 8,029 11,105 s. d. 8 8 9 7 80,650 90,579 £ 31,276 35,234 s. d, 7 9 7 9