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NELSON. Condition and Progress of Settlement. The settlement of this district has progressed satisfactorily during the past year, and now, since the practice has been generally adopted of not opening lands for selection until they are roaded, there are not so many complaints of want of roads. Owing to the increase of the field staff and to the fact that several contract surveyors have been engaged on applications, chiefly on the West Coast, the arrears of these surveys, which have for several years been large, have now. been reduced, to within reasonable limits. Taken all round, the settlers in this district are a very good class, and seem generally contented with their lot and their future prospects. The roading of the backblocks is being carried out in a very satisfactory manner under the Public Works Department and the various local bodies, with the money at their disposal, but much remains to be done. The opening of the railway to Glenhope has greatly encouraged the settlers in the vicinity of Murchison by the reduction of freight, and by bringing them nearer to civilization. An extension of the line to Owen Junction is now under construction, and when this is completed it will bring Murchison within 11£ miles of the terminus. This is a very thriving township, the centre of a large pastoral district, parts of which are well adapted for dairying, and the butter-factory is well patronized and is a large factor in the prosperity of the place. Land proposed to be offered in 1913-14. The following blocks of Crown lands now either under survey or shortly to be put in hand will be offered for selection next year :— The Howard Block, consisting of some 20,000 acres already surveyed and partly roaded, within ten miles of the railway at Glenhope. The land is suitable for pastoral purposes, and will be put on the market on the completion of certain exchanges with an adjoining freeholder.' The Waimea Block, of 10,000 acres of pastoral country, within ten miles of Hope Railwaystation and twenty miles of Nelson City. The Gowan Block, of 6,000 acres, adjoining the Howard Block and near the picturesque Lake Rotoroa. The Lamb Valley Block, of 6,000 acres (the survey of which is completed), which is within a mile of Glenhope Railway-station. The Station Creek Block, of 4,000 acres, adjoining the previous block. The Matiri-Owen Block, of 8,000 acres, on the right-hand branch of the Owen River. The Mokihinui Block, of 5,000 acres, at the forks of the Mokihinui River. There are also some 4,000 acres in the Oparara district, and a similar area in the Waitakere district, that it is hoped to offer during the year. Inspections by Crown Lands Rangers. During the year the three Rangers in this district made 697 inspections of leases held byCrown tenants under the several tenures, besides innumerable other inspections and reports, &c. The improvements required amounted to £64,675, whereas those actually made totalled £132,758 —more than double the requirements of the Act. The defaulters numbered seventy-three for deficient improvements only, ninety-six for non-residence only, and forty-eight for both. In the Buller and Inangahua Counties the Rangers have to undertake a large amount of work for the Wardens in connection with mining privileges, &c. Altogether the Crown tenants felled 11,800 acres of bush during the year, mostly on the West Coast, where, owing to a wet season, there have not been many satisfactory burns. Tenures. The bulk of the lands selected during the year were either on renewable lease or pastoral license, as most of the land offered was either in the national-endowment area or in a mining district. Arrears of Rent. Apart from the endowment lande and primary and secondary education, the arrears amount to £2,492 12s. 5d. The largest item is £792 16s., on Braeburn Settlement. It was not considered advisable to unduly press these settlers for their rent, as they have had a hard struggle, and their improvements constitute good security for their indebtedness, and settlement has to be pursued under considerable disadvantages. The arrears of ordinary endowment amount to £4,569 14s. lid., mostly on coal leases. This revenue belongs to the Westport Harbour Board, who have allowed one large coal company a considerable amount of latitude in the matter of payment, owing to unforeseen circumstances and labour troubles. Education Endowments. Since the above have been administered by this Department everything in connection therewith has been running smoothly, and calls for no special remarks. The arrears of rent are not unduly large. The Flax Industry. This industry is only in a very small way in this district, as the flax does not grow in sufficient quantities in any one locality to make milling profitable at the present fluctuating price of fibre.

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