C.-7L.

it may be noted that the year's transactions exceed those of the preceding year by eighteen, but the total area is considerably less, due to the absence of any large pastoral areas from the dealings for the year. The revenue for the year exceeds that of the previous period by £3,760 os. Bd. In comparing the areas held at the close of the respective periods a considerable reduction is apparent under the "old deferred-payment and perpetual-lease tenures. This is caused principally by the large area converted into freehold, twenty-one selectors, holding 4,459 acres 3 roods 1 perch, having completed the purchases of their properties during the year. Seven perpetual lessees, holding 120 acres 1 rood, have also exchanged into the lease-in-perpetuity tenure. Under the occupation-with-right-of-purchase tenure one selector of 106 acres 1 rood 37 perches has been added during the year to the small number holding under this tenure, which has never found much favour in this district. Under the ordinary lease-in-perpetuity system the areas held have increased by 204 acres 2 roods 39 perches selected during the"year, and 120 acres 1 rood exchanged from perpetual-lease tenure ; and the number of individual holders has been slightly reduced through the amalgamation of holdings by transfer. • In the village-homestead-settlement class there has been one selection of 47 acres, and a transposition of areas has taken place through the exchange of seven lessees, holding 318 acres 2 roods 13 perches, from the perpetual-lease to the lease-in-perpetuity branch of the system. The total area, however, remains practically unchanged. There have been no new selections under the farm-homestead system, aud the total area held remains the same as last year. . . Four pastoral licenses, comprising 19,804 acres 3 roods 26 perches, have been added during the year to the area previously held, but transfers and amalgamations effected have somewhat diminished the number of separate holders. Under the miscellaneous occupation tenure there has been a considerable area of fresh selection during the year, partly by areas taken up under competition and partly by yearly tenancies granted by the Land Board. The expiration of previously existing tenancies has, however, effected a large reduction of the total area held. The lands disposed of, and the present position of holdings in the Cheviot and the land-for-settlement estates, are treated under separate headings. Lands opened for Selection and disposed of.— Exclusive of lands offered under the Land for Settlements Acts, very little land has been offered for disposal in this district during the year. The areas which have been placed in the market may be grouped as follows : Under pastoral licenseTwo runs, one of 10,290 acres in the Amuri district, and one of 9,309 acres near Hakataramea, m South Canterbury ; both licenses were sold, the southern one realising a considerable advance on the upset rent. Under village-homestead lease in perpetuity—Eight allotments, comprising 43 acres, near Mount Somers, in the Ashburton County. It was anticipated that these might be taken up by workers employed at the adjacent coal-mines, but so far there has been no demand for the sections. Under occupation license for various terms there were offered ten lots, comprising a total area of 399 acres 1 rood 8 perches, situated at Hanmer Springs, Waiau, Coalgate, Eakaia, and Waimate. The whole of these were satisfactorily quitted. Arrears of Bents.— -The total number of Crown tenants of all classes in arrear with their payments on the 31st March, 1902, was 195, holding an area of 38,679 acres 3 roods 19 perches, and owing £3,832 9s. lid., out of a total number of 2,399 tenants, holding 4,070,398 acres and 8 perches, at an annual rental of £106,902 19s. 7d. The arrears, therefore, amount to about 3-6 per cent, of the total, while last year the proportion was about 3 per cent. A certain amount of this increase is doubtless due to the unfavourable weather experienced in South Canterbury during the harvest season, which delayed holders in realising upon their crops for payment of rent. Transfers, Exchanges, Forfeitures.— Transfers have been completed during the year of 107 leases held under settlement conditions, comprising a total area of 16,827 acres and 16 perches, made up as follows : — . A. B. p. Leases in perpetuity (all classes) ... ... 79, comprising 11,382 3 1 Village-homestead leases ... ... ... 23, „ 716 132 Perpetual lease ... ... ... ••■ 1, » 10 0 Small grazing-runs and grazing-farms... ... 4, „ 4,726 323 Fourteen holdings, comprising an area of 438 acres 3 roods 13 perches, have been exchanged from perpetual lease to lease in perpetuity. Exclusive of forfeitures and surrenders of holdings at Cheviot and under the Land for Settlements Acts, one village-homestead lease in perpetuity, comprising 89 acres of light land at Westerfield, in the Ashburton County, is the only holding that has reverted to the Crown during the year. Surrenders have been accepted of one pastoral run of 1,000 acres, and two leases in perpetuity at Cheviot, comprising 921 acres 2 roods, for the purpose of adjustment of boundaries by incorporation of adjoining areas, so that these cannot be regarded as having reverted to the Crown. Beserves.— During the year an area of 170,182 acres 3 roods 10 perches was permanently set apart as reserves for various purposes, under the following heads : National Park, comprising the country at the head-waters of the Waimakariri and Bealey Eivers, 150,000 acres; conservation of water-supply, 13,000 acres at the head of the Eyre Eiver near Oxford ; river-conservation, 6,900 acres in the lower portion of the Waimakariri Eiver bed ; preservation of scenery, 137 acres near the foot of Mount Grey ; plantation, 37 acres; railway purposes, 30 acres ; school-sites, 25 acres; rubbish and drainage purposes, 20 acres; gravel-pits, 19| acres; water-race, 9 acres; and public buildings, 5 acres. Timber and Forests.— Despite the dryness of the early part of the season, no serious fires have occurred in any of the timbered areas of Crown land during the year. The number of licenses to

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