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A heavy flood l in the Clutha did a good deal of damage to potato-crops on Barnego Flat in October last. The settlers on this portion of the settlement again suffered through a heavy flood in the river on the 28th March, which did a good deal of damage to the crops and the protective bank at the top of the flat. E. H. Wilmot, Commissioner of Crown Lands.

SOUTHLAND. Maori Hill Settlement, situated near Tuatapere, in the Waiau district, and comprising an area of 3,533 acres, was acquired, and 3,369 acres was placed on the market during the year, with possession to the tenants on Ist May, 1913. At the present time only one of the ten sections offered remains unselected. The total number of tenants under the Land for Settlements Acts is now 281, holding an area of 57,730 acres, and paying an annual rental of £12,425. There are 247 residences on the settlements, and the population residing on the holdings is 1,130; while the value of the improvements effected amounts to £102,442, as against £65,362 required by the Act. The total stock on the eight settlements is: Sheep, 36,566; cattle, 7,194; horses, 1,426; and pigs, 846. During the year an area of 4,716 acres was laid down in new grasses, and as years go on the tenants are gradually increasing the value and carrying-capacity of their holdings. The climatic conditions for the last year have not been good, the spring being cold and wet and the harvest season being unsatisfactory. Prices of stock and produce, however, have been good, and settlers who are suppliers to the dairy factories have had a successful year. Generally speaking the conditions of the leases are being well complied with, and the tenants appear to be in a very satisfactory position in every respect. G. H. M. McCluee, Commissioner of Crown Lands.

APPENDIX lII.—THE TIMBER INDUSTRY.

EXTRACTS FROM REPORTS OF COMMISSIONERS OF CROWN LANDS.

AUCKLAND. The exceptional briskness in the timber trade that has been experienced for the past six or eight years is still being well maintained, although towards the end of the year there was a slight temporary falling-off in the sales of sawn timber other than kauri timber, but which has since revived itself. This, however, did not affect the comparatively high ruling prices for all classes of sawn timber, nor were the prices offered at auction sales for standing timber affected. In most instances keen competition and high prices were obtained. It may be worthy of note that since the figures quoted in the 1910-11 Report, showing the marked increases in prices for sawn kauri timber for the period July, 1899, to December, 1910, the prices have further risen during the year by 4s. per 100 superficial feet on ordinary building-timber, and varied increases on other classes. The retail prices for sawn totara, matai, and rimu timber have also been subjected to two substantial increases during the past year, the last increase being 3s. 6d. per 100 superficial feet on ordinary building-timber, making a total increase of 6s. per 100 superficial feet on the 1903 retail price-list. Owing to the fast-decreasing supplies of kauri timber, the attention of sawmillers and agents lias been directed in a very marked degree towards the purchase of totara and rimu bushes, and during the year large sales by Native and private owners have been effected, more especially in and around the Rotorua and Tauranga districts. During the year five timber-measuring parties were employed, three of whom were engaged the greater part of the time measuring on the Mangatotara Block, Tauranga district, but owing to the retirement from the service of two of the timber-measurers and the removal of one measurer to Mamaku on urgent work, operations in this block were temporarily suspended. It is estimated that this block contains fully 30,000,000 ft. of good-quality rimu, &c. The following table shows the various kinds of timber disposed of during the year ended 31st March, 1913 :—

Eauri. Rimu. Kahikatea. Totara. Matai. ™|ous a " Total. Amount realized. Jrown lands (including 0,362,746 national endowments) State forests .. .. 190,993 education reserves .. 640,248 7,193,987 2,732,612 42^340 2,442,168 72,232 268,198 63,282 15,742 179,661 2,'212 35,832 341,104 £ s. d. 12,021,217 10,561 17 3 595,379 491 16 6 772,774 764 2 0 2,774,952 2,514,400 347,222 181,873 376,936 13,389,370 11,817 15 9

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