C.—l

4

confidence all over the tree and main branches. The time for making incisions is the end of winter and the spring months, and the crop of stalactites of gum gathered in autumn and early winter. In gathering the crop the same means are used as in making the incisions, the operator chipping off the stalactites of gum into an apron or bag hung round his neck. A very active man will go over four kauri-trees in a day (but not of eight hours). The result of tapping kauri-trees — i.e., the quantity of gum obtained from each tree —varies very greatly. Some good-looking healthy trees scarcely bleed at all, but, to strike a rough average, from good-sized trees I would say over 151b. may be expected." Bushfelling. —A fair amount of bush has been felled during the year, but the season has been unfavourable for burning operations. Inspection by Rangers. —The total number of inspections made during the past year was 1,739, being an increase of 447 holdings inspected. The total area involved in such inspection was 425,569 acres. The amount of the improvements required according to the various tenures under which the land was held was £111,296 14s. 3d., and improvements to the value of £257,388 7s. have been effected. This shows improvements to the value of £146,091 17s. 9d. done in excess of actual requirements by law. The number of defaulters reported during the year was 521, of whom 348 were reported for non-compliance with improvement conditions, and 173 for non-residence. The defaulters-were reported to the Land Board, and each case dealt with upon its merits. Of these inspections, 551 were made by Ranger B. P. Bayly, 522 by Ranger F. C. Ewen, 361 by Ranger J. M. McKay, 277 by Ranger J. Maxwell, twenty-two by Ranger D. H. Lusk, and six by District Surveyor T. K. Thompson. During the past year Rangers Lusk, McKay, and Maxwell have devoted a great deal of time to estimating kauri and other timber for sale. Dairying. —The export of dairy-produce from the Auckland district for the year ending 31st March, 1903, was 39,030 cwt., which is small for the dairying possibilities of the province. The value of the exported butter was £185,535. Butter and creamery factories have been established in a number of new localities, and the industry is increasing rapidly as the large area of land lately placed in the market gets into cultivation. It is an industry which is bound to increase, owing to the large export trade to England and Australia, while in addition we have now the South African market, direct steamers being subsidised to run there. Thermal Springs District (Rotorua). —Thirty-five holdings, of an area of 304 acres, were taken up during the year at an annual rental of £287. Thirty-three of these were selectors of 284 acres under "The Rotorua Town Council Act, 1900." The total rents received during the year amounted to £1,923, which includes £1,846 paid on account of the Rotorua Town Council. Native Townships. —Eighteen holdings, of an area of 5 acres, were taken up, the annual rental of which amounts to £50. The area stated represents the whole of present holdings under "The Native Townships Act, 1895." Land reserved. —l3,49s acres was reserved during the year. Of this, 6,309 acres was for forest reserves and 5,926 acres for education reserves. Transfers. —The number of transfers dealt with by the Land Board during the year was 286, of which 276 were granted and ten refused. The total sum paid to the credit of Government Loans to Local Bodies Account from each class of tenure amounted to £4,716 10s. 3d. Land under the Land for Settlement Acts. Opouriao Settlement. —Area, 7,604 acres. Number of selections, 64. Number occupied, 56. Number of selectors, 64 (5 on Taneatua Township). Value of improvements effected by settlers during year, £1,726 ss. 6d., and total value of improvements, £29,926 ss. 6d. Number of population, 295; increase, 7. Number of milch cows, 690. The number of selections occupied are the same as last year. Four fresh sections were taken up on Taneatua Township. Cold and late spring interfered to a certain extent with dairy returns and made crops late, and I fear the maize will not thoroughly mature before autumn frosts set in ; a full crop cannot be expected this year. The decrease in dairy cows can be accounted for from the fact that a great many have been discarded as not being up to requirements, and this year only those actually milking for factory are given, and two owners have given up milking this year. Improvements are still being effected. Some of the settlers are taking up Crown lands contiguous to estate, and although there are naturally some drawbacks, yet settlement can be reported as in a sound condition and prospering. The following extracts from the Ranger's report are given : —Crops : 780 acres is under maize and 212 in oats, both are rather backward owing to late season, but with the late rains and more seasonable weather should yet give full crops, and should the frost hold off again this year an average crop of maize may be looked for. Dairying is still in full swing and is giving satisfactory results; the cold spring and late summer interfered considerably with the quality of milk supplied to factory. This drawback has disappeared with the warm weather. A considerable reduction in the number of cows is shown this year. This is accounted for from the fact that the factory has only been in operation two seasons, and when started cattle were procured indiscriminately to make a beginning. These have since been considerably weeded out, with the result that the same if not better returns are obtained from a less number, together with the fact that this year the number of cows only actually being milked are given. The buildings pertaining to the estate are as a rule fairly well kept, but owing to age and being built of kahikatea are going to decay, weevil or dry rot being very prevalent throughout. One cottage on Section 6, Block XIII., has partially fallen down, and is valueless with the exception of some of the studs and chimney. Several other buildings —such as dwellinghouses, stables, and milking-sheds—have been erected during the year, and others are either in course of erection or about to be built. The fences and hedges are in fair order and condition, some of the latter will require attention in the coming winter. The drains are as a rule in good order. Several settlers have not given this matter the necessary