G.—l

22

worked-out sawmill areas, and are situated in Alton, Longwood, Hokonui, Aparima, Lillburn, New River, and Campbelltown districts. Worked-out bush country is eagerly sought after in Southland, and I anticipate that the lands will be selected when opened to application. General Remabks. Taken on the whole, Crown tenants have experienced a fair year, and the prices of stock and produce have been satisfactory. The weather, however, has not been all that could be desired. The spring was cold and wet, and this naturally retarded the farmer in his cultivation and sowing operations. Again, the harvest weather was not of the best, and much anxiety and trouble were experienced in saving the crops. Towards the end of March several of the Southland rivers were badly flooded, and it is reported that a number of the tenants, chiefly education-endowment ones, on the Mataura River, have had considerable losses of stock and improvements. Grass has been plentiful, and the dairying industry has been good. At the present time there are fifty-six cheese factories and four butter and condensing factories in actual operation throughout the district. A very considerable number of Crown tenants are suppliers to these factories, and thus obtain ready money monthly, which enables them to improve their farms, and thus increase the carrying-capacity. The intake of milk at these factories ranges from 800 gallons to 12,000 gallons per day. Crown tenants, with few exceptions, continue to fulfil the conditions of their respective leases in a satisfactory manner, and, on the whole, appear to be a very satisfied community. Departmental. The period under review has been a very strenuous one for the clerical staff, the volume of work going through the office having increased considerably, and some of the newer work, such as renewals and arbitration of education leases, small grazing-runs, and perpetual leases, requires close attention and careful handling. The work in connection with education leases in this district is, and always will be, of an important nature. All officers have worked well on the particular duties allotted them, and I have much pleasure in recording my appreciation of the cheerful and willing assistance I have at all times received from my staff. G. H. M. McClure_, Commissioner of Crown Lands.

APPENDIX lI.—LAND FOE SETTLEMENTS (EXTKACTS FEOM EEPORTS OF COMMISSIONEES OF CROWN LANDS ON).

• AUCKLAND. There has been comparatively little change in the estates held under the Land for Settlements Act, but the general progress noted in last year's report has been well maintained, and the condition of the settlers is, on the whole, one of sound prosperity. Dairying is the staple industry of most of the settlers, so that the amount of white crops grown is small, but green crops are grown with success, and satisfactory attention is paid to the renewing and improvement of pastures. The dairying industry also leads to the subdivision of many of the large sections on the old and well-established settlements, as the holders find that when once the lands have been brought into reproductive condition the smaller areas can be worked to proportionally better advantage. The improvements on most of the holdings are much in excess of statutory requirements, and the conditions of the leases are satisfactorily fulfilled. The suburban settlements near Auckland are in a flourishing condition, and afford comfortable homes, and supplementary incomes from fruit and poultry, to the tenants, many of whom are now seeking to acquire the freehold of their sections. H. M. Skeet, Commissioner of Crown Lands.

HAWKE'S BAT. There are now eighteen settlements in the southern portion of this district. Two of these Sherenden and Waihau —have only been recently acquired and opened for selectipn. Sherenden was all selected at the ballot, and the settlers have already made considerable headway in stocking, fencing, and erecting residences. It is pastoral country, best adapted for sheep, and three parts of it is ploughable, and responds excellently to cultivation. Waihau Settlement, consisting of the Waihau, Ngaroto, and Peka Peka Estates, was not in great demand, and only half the sections were selected at the ballot, but since all but two sections have been taken up. The probable reason of the non-selection of this settlement is due to the poor access, non-construction of through roads, and its bad appearance at the time of the ballot, due to the dry season of five to six months' duration. Of the other sixteen settlements, only eight have been inspected, owing to the work of the Ranger in other directions being exceptionally heavy. The other eight were well beyond the requirements at last inspection. The value of the improvements elected is more than double the requirements of the Act.