C—1.

10

In connection with the preparation of the above-mentioned lands for the market I desire to draw your attention to the many unusual obstacles that have delayed earlier dealing with ' them. The Whakaihuwaka Block had to await a decision of the Native Land Court relative to the adjustment of some of the boundaries, and was also complicated with portions of nationalendowment land included in several of the subdivisions. The Hurupi Block required two roads to be taken through Native and European land before it had any access. The Haurangi Block is still State forest, from which the reservation has to be removed. The Waimarino Block required much exploration for roads and access through Native land. We are also seeking to adjust the Native boundary of it on reasonable lines. A road has to be taken through private property to the Aorangi Block. The 1,536 acres on the Turakina River was only made available after a most tedious series of exchanges. The Mangatainoka Block was encumbered with leases, and requires a road through Native land, and the block in the Manawatu Gorge is still forest reserve. Improved-pabm Settlement Lands. The steward of the North Waimarino Improved-farm Settlement reports that perhaps the most pleasing feature of this }*ear's progress is the value of the improvements effected by the settlers, independently of those paid for by State advances, which he estimates at £12,810. This speaks well for the energy of the tenants and their determination to succeed. This season a new departure was made. Many of the settlers being without the means to stock their holdings, the Government provided them with 250 extra cattle on favourable terms of payment, the number of stock on the settlement now being 1,214. This number consists mainly of heifers that will come into profit next season. A dairy factory, recently established at Piriaka, will greatly further the dairy industry in this district. Sixty-six settlers are residing on their holdings, the total population of the settlement being 422 souls. Fourteen selectors cannot go on to their holdings until the milling-timber has been removed. Ten sawmills have cutting-rights in the settlement, and at these some three hundred men are employed, who, with their families, help to swell the population of the small townships along the Main Trunk line. Amongst them, these mills put out close upon 100,000 ft. of timber daily. The settlers are, on the whole, a very good class, the non-success of a few being due to their having been in financial distress before they entered into occupation. Rangers' Inspections and Reports. The Crown Lands Rangers in the west coast division made 723 inspections during the year, covering an area of 161,965 acres. In addition to these, Ranger Craig claims twelve inspections, of an area of 8,411 acres, in connection with blackberr} 7 on the Tongoio Estate, Hawke's Bay. On the holdings inspected, the value of the improvements required to be effected by the tenants was £12,995; the value actually made was £38,464 — i.e., £25,469 in excess of requirements. In the east coast division the Rangers made 727 inspections, over an area of 232,709 acres. On this side of the district, too, the tenants have shown a desire to have their holdings highly improved, and they have put on improvements to the value of £105,366 over and above what was required by the conditions of their leases. The requirements were. £61,091, and the improvements actually effected were valued at £166,457. Progress of Settlement. The Crown Lands Ranger for the northern portion of the west coast division reports that settlement in his district is progressing in a satisfactory manner, and the settlers have enjoyed a most favourable season. Large areas of bush, some of which was felled last year, but not burned owing to unfavourable weather, have now been burnt, and good clear burns are to be seen everywhere, and the new grass is coming away well. The mortality amongst stock has been much less this year than last. In the Waimarino Block good progress continues to be made. Most of the settlers have now roads of some kind to their sections, but much requires to be done before many have proper access and can get their stock in and out without much labour. In the Rangitatau Block the settlers are doing well, and large areas of bush have been felled on most of the sections this year. The road up the Waitotara Valley is now well advanced, and a stock-bridge has been built over the Waitotara River for the convenience of the settlers in the upper part of the block. In the Te Tuhi and Ahu Aim Blocks good progress has also been made. Several sections have changed hands, but good settlers have taken the places of those who sold out. The main road through the block has been widened into a dray-road for some miles, the settlers having raised a loan for this purpose. The County Council has, however, experienced great difficulty in letting contracts. The road along the right bank of the Wanganui, known as the " Missing Link," has been taken, and formation is now well in hand. This road will be a great boon to settlers. The village settlements along the North Island Main Trunk. Railway continues to make marked progress. Several new sawmills have begun operations, and work is consequently plentiful. The Crown Lands Ranger for the central district from Palmerston North northwards reports that the Crown tenants in his district have experienced a very favourable year. Splendid prices ruled for wool, and, although the clip was light, the quality was excellent.