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Since the 31st March, the greater part of the area of 11,663 acres unselected at that date has been taken up. In addition to the foregoing figures there have been thirty-five* selections in the estates acquired prior to 31st March, 1898. Of the four estates at that date which showed the largest amount of unselected land, viz.: Okauia, Pomahaka, Otahu, and Beaumont (total, 12,896 acres), 7,592 acres have been selected during the year, which, together with other selections, only leaves in the hands of the Government an area of 4,759 acres.t Details of all the selections will be found in the accompanying table. The forfeitures for non-compliance with the conditions of the leases, together with surrenders, amounted to thirty, the area so forfeited being 2,643 acres, 3 roods, 20 perches, let for a rental of £463 9s. 4d. Most of the forfeited sections have been relet. The arrears of rent on the 31st March amounted to £2,938 6s. 9d., which was owing by 134 lessees, or an average of £22 per selector. The reports of the Commissioners on the different estates will be found in the Annual Beport of the Lands and Survey Department of this year, and from these it will be seen that considerable progress has been made on each estate. The effects of the dry weather of last year, together with some high winds when the crops were coming on this year, were still felt at the date of the reports, and the arrears of rent are in large measure due to those causes, which are, however, only temporary in their operation. The number of estates acquired under the Act, and which have been offered for selection, is fifty-six, containing an area of 243,947 acres (in which are included 3,112 acres of Crown land, being leases held by the former owners but now surrendered and dealt with as part of the estates). On these estates, at the 31st March last, there were 3,077 persons residing, the number of houses being 813, whilst the value of the improvements on the estates amounted to £129,133 18s. 9d. £ The total cost of the estates purchased to 31st March, 1899 = ... 1,170,305 Cost of roads, surveys, administration, and preliminary expenses ... 53,862 1,224,167 Less cost of Eichmond Brook Estate, not yet selected .. ... 21,921 £1,202,246 The lands disposed of are let at ah annual rental of ... ... £57,747 The lands unlet (exclusive of roads, unlet reserves, &c.) are valued at a rental of ... ... ... ~. ~', ... 4,503 £62,250 It will thus be seen that if the whole of the lands were let, the rentals would bring in a return of 5 - 17 per cent, on the capital invested in the estates that have been offered for selection. On the other hand, the rentals of land actually let are bringing in a return of 4-8 per cent, on the amount invested. As much of the land unlet at the 31st March has since been disposed of, the rentals at the time of writing are actually bringing in over 5 per cent, on the capital sunk in them. The sum actually payable for interest, calculated as for the 31st March, on the money raised for the purchase of these estates was £42,497 3s. 5d., as against a rental of £57,747. The construction of the branch railway or tram-line to give access to the limekilns on the Makareao Estate is in hand by the Public Works Department, and is approaching completion; whilst the work of building the kilns has also been commenced. A sum of £4,685 9s. lOd. has been expended in this work up to the 31st March. Under those clauses of the Act empowering the creation of "hamlets," the following small blocks have been offered for selection :—

The hamlets are provided to meet the wants of small settlers in the vicinity of towns, and the Act provides for the advance by Government, in certain cases, of sums to enable the selectors to build houses. The cases above seem to show that there is no very active demand for this class of settlement, for the lands are not taken up at once. "The Übeweea Disteict Native Beseeve Act, 1896." The Hon. the Native Minister administers the above Act, but, as the Lands and Survey Department has practically had the working of the Act so far, the proceedings under it may properly find a place in this report.

* To these thirty-five selections have to be added twenty-four reallotments. + At the date of writing the lands still left in these estates are : Okauia, two sections, 748 acres; Pomahaka, nil; Beaumont, seven sections, 2,180 acres ; Otahu, two sections, 435 acres.

Opened for Selection. Acres. Number of Sections. Number selected. Cost. Annual Rental. Area unlet. Wharenui Paparangi Pawaho ... Mar., 1897 ... Feb., 1898 ... April, „ 73 ■ 323 32 26 25 39 32 25 21 £ £ s. d. a. e. p. 4,994 285 2 8 2 0 0 6,592 284 11 6 12 3 20 1,942 108 14 6 7 0 22 Since ti x 31st March, 1899. Tamai... ... June, 1899 37 40 I 9 2,663 167 11 2 27 1 9