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32 perches, seven of the selections, with an area of 513 acres 3 roods 29 perches, being reallotments. On the 31st March there were sixty-eight tenants, holding 10,892 acres 1 rood, thus leaving, out of a total selection area of 10,913 acres 1 rood 28 perches, only 21 acres and 28 perches unlet, in five small sections. Along with the other estates in North Otago this one has suffered greatly from the drought, the average yield being only about 10 bushels of wheat to the acre, while in many cases 40 bushels were obtained last season. The total area cultivated is 4,660 acres, as compared with 4,776 acres the previous year. The value of the improvements effected by the lessees is £6,140 Is., against £4,876 10s. last year. Total receipts for the year, £3,403 17s. Bd. ; the total annual rental being £3,546 2s. 10d. The selectors on this estate had a good beginning with their crops, and a favourable harvest next year will enable them to recover the losses sustained this season. Number of houses on the estate, 57 ; number of souls resident, 167. Puketapu Estate. —Satisfactory progress has been made on this estate, although it too has suffered from the drought. The settlers are apparently well satisfied with their sections, and during the year improvements have increased in value by £126. Cultivation is a little less than last year. One section of 20 acres 1 rood 12 perches is at present unlet, there being on 31st March eleven selectors, holding 475 acres 3 roods 24 perches, at an annual rental of £180 Bs. 10d. The receipts for the year were £160 16s. 2d. There are seven houses on the estate, and seventeen souls resident. Ardgowan Estate. —This estate has also suffered from the late dry season, but not to the same extent as Maerewhenua and Tokarahi. It has made fair progress during the year. Only one section, of 16 acres 1 rood 15 perches, is at present unlet, the whole of the remainder, 4,146 acres 1 rood 29 perches, being occupied by sixty-five tenants, at an annual rental of £1,881 13s. 10d., besides a small area of 5 acres 3 roods 12 perches of reserves under two temporary licenses, at £2 Is. Bd. yearly. The total receipts for the year were £1,814 14s. Improvements effected by lessees have increased in value by £2,143, and the cultivated area by 501 acres. Fifty houses have been erected on the estate, and there are 176 souls resident thereon. Makareao Estate. —The crops on this estate were almost a total failure through the drought. One allotment of 19 acres 3 roods 23 perches is at present unlet, and one section of 22 acres and 34 perches has been reserved for the use of the Agricultural Department. The total area in occupation at the 31st March was 2,273 acres 3 roods, held under twenty-eight leases in perpetuity, one small grazing-run lease, and four temporary licenses, the total annual rental being £376 10s. Eeceipts for the year, £320 7s. 2d. Improvements are being steadily effected, their value now being £949, as against £522 last year ; and cultivation 334 acres, against 271. Number of houses erected, 14; number of souls resident, 36. Makareao Extension. —This portion of the Makareao Estate, comprising a selection area of 2,570 acres 2 roods 9 perches, was opened for application on the 14th April, 1897, and was taken up under two leases in perpetuity over 117 acres 2 roods 22 perches at £23 17s. 6d. per annum, and two small grazing-runs, of 2,452 acres 3 roods 27 perches, at £272 17s. 10d. per annum, the total annual rental being £296 15s. 4d. The proportion of rentals received during the year was £148 11s. sd. Improvements have already been effected to the value of £272, and 125 acres have been cultivated ; two houses erected, with four souls resident. Momona Estate. —This estate, of 224 acres and 15 perches, was opened for selection on the 10th May, 1897, and was taken up by fourteen selectors, covering an area of 219 acres and 15 perches, at a rental of £184 18s., with an annual payment on account of buildings of £25 ss. A temporary license was also issued to one of the selectors over a section of 5 acres intended for a school-site, at £4 ss. yearly, making the total annual income from the estate £214 Bs. Improvements to the value of £1,065 have been effected; 150 acres cultivated; and ten houses erected, with thirty-nine souls resident. The Ranger reports—" This is a thriving little settlement, and the season in that locality has been a favourable one. The results of the year have been most satisfactory ; the crops have yielded about 50 bushels of oats to the acre; and all the settlers are highly pleased with their holdings." Tokarahi Estate. —This, the last estate brought into the market in this district, with a selection area of 10,785 acres 3 roods 23 perches, was opened for application on the 11th May, 1897, and with the exception of five small sections, of a total area of 5 acres and 20 perches, was all taken up by forty-nine selectors. Since then two holdings have been surrendered, with an area of 135 acres 1 rood 5 perches, one of which, with an area of 133 acres 3 roods 18 perches, has been reallotted. There are thus forty-eight selectors, holding 10,778 acres 2 roods 16 perches, at an annual rental of £4,002 9s. Bd., and six small sections unlet, of an area of 7 acres 1 rood 7 perches. There are, besides, annual payments on account of buildings amounting to £96 Is. 10d., and an aggregate area of 196 acres 1 rood 26 perches of reserves let under temporary licenses to twenty-seven of the tenants, at £21 9s. 10d. per annum, making a total annual income in connection with this estate of £4,120 Is. 4d. The receipts amounted to £2,756 3s. 4d. Improvements have been effected by the lessees to the value of £2,276, which, added to those on the ground at the date of disposal, make a total of £5,059 14s. 6d. 3,505 acres have been cultivated, thirty-seven houses erected, and there are 102 souls resident. I have already mentioned that the selectors on this estate have suffered very severely from the drought, and many of them will probably be in difficulties before the next harvest, which it is to be hoped will prove a more favourable one.. The Crown Lands Banger reports with regard to this estate as follows : " The past season has proved a very disastrous one for the settlers on this estate. They have spent most of their money in effecting improvements and preparing the land for cultivation ; and, owing to the exceptionally dry year, many of the crops have been almost a complete failure." Summary. —The following summary of totals in respect of the whole of the estates may be of interest:— Eevenue: The total receipts for the year were £9,880 os. 6d., the total from the inception of the system being £19,358 10s, 4d.