C.—l.

Revenue.—The revenue was as follows : Territorial, £8,342 65.; non-territorial, £5,401 Is. Bd.; total, £13,713 7s. Bd., being £lO5 19s. 3d. less than last year. Arrears.—Twenty-four selectors are in arrears, the amount owing being £1,309 Bs. Id. All of these selectors but one are on the Blind River and Omaka Estates. Reserves. —831 acres was reserved for various purposes. Selectors on the Books. These now amount to 647, an increase of 142 over last year's figures. Ranger's Inspections. 278 properties were inspected. The total value of improvements required was £38,931, and the total value effected was £71,887. The number of defaulters was forty-one, all for non-residence, and four of them for lack of improvements. Since the inspections, however, the Land Board has granted several exemption from residence for a short period. Land for Future Settlement.—The areas to be opened for disposal during the coming year are as follows : Spey Block, 13,000 acres; North Bank Bun (Bell Brothers' Block), 12,000 acres; Kaiuma Block, 3,500 acres; Small Grazing-run 99, 3,582 acres; land to be sold in connection with exchanges, 13,564 acres; and a few scattered sections in Pelorus Valley and Sounds: the total area to be opened up during the year being 48,000 acres, under the following systems: Cash, 14,000 acres; small grazing-runs, 28,000 acres; lease in perpetuity, 5.600 acres; and occupation with right of purchase, 400 acres. Lands under Land for Settlements Act. Blind River Estate. —The present dry season has been the most unfavourable one known for years, and the arrears, which last year amounted to £7Ol, have increased to £1,051. Two settlers have surrendered. Although the arrears amount to £1,051, the improvements effected total £4,670. In most cases cropping has given very small returns, and the settlers find it more profitable to raise stock and sheep. There are now on the estate, approximately, three thousand sheep, twenty-nine horses, and twenty-two head of cattle. The area acquired on this estate was 5,507 acres, 234 acres of which is occupied by roads and reserves, and 275 acres is at present unlet. This gives the total area of land leased at present as 4,998 acres. There are seventeen selectors, and the annual rent now payable is £844 17s. Id. Omaka Estate. —Eight settlers were in arrear on the 31st March to the extent of £256 os. 5d., but at the time of writing only five are in arrear, to the amount of £ll5 10s. 7d. During the year 740 acres was under crop, but owing to the dry season the return is likely to be small. The settlers state that it is their intention to cultivate more European grass and root-crops, as they think the raising of stock will give them better returns. There are about 2,500 sheep, twenty head of cattle, and thirty horses on the estate at present, and the approximate value of improvements effected is £3,900. The settlers appear to be practical, industrious farmers, complaints being rare, so this settlement may be considered in a satisfactory state. The area acquired on this estate was 3,898 acres, 60 acres 1 rood of which is occupied by roads and reserves. This leaves the total area leased at date as 3,837 acres 3 roods. There are thirteen selectors, and the annual rent now payable is £589 6s. Bd. Puhipuhi Estate.—There were only 320 acres in this estate taken up during last year. There are two selecto'rs paying an annual rent of £24 10s. Starborough Estate. —The remaining portion of the rural land of this estate, comprising about 1,006 acres in twelve sections, was taken up during the year. There was very keen competition for this land, 304 applications being received from fifty-two applicants. Possession of the sections on this estate was only given to the selectors on the Ist April, 1599. Part of the Township of Seddon, comprising 116 sections, with an area of 33 acres, was disposed of to fifty-one selectors. There was very keen competition for these sections, 710 applications being received from 103 applicants. There are still about fifty sections to be disposed of during next year. The area acquired on this estate was 35,906 acres, of which 698 acres 2 roods 28 perches is occupied by roads and reserves, and 85 acres is unlet. The total area leased to date is 35,122 acres 3 roods 12 perches, and the annual rent now payable is £5,864 19s. 6d. All the holdings have improvements on them above the amount required. Thirty-three dwellinghouses (value £2,130) have been erected, 8,227 chains of substantial new fencing and other improvements (sheds, wells, yards, cultivation, &c.), to the value of £6,167, making a total value of £8,297 effected during the first year's occupation. Out of forty-three selectors required to reside, thirty-five were complying, two have leave of absence granted by the Land Board, and six are not complying. The season 1899-1900 was extraordinarily dry, and the results of cultivation poor in consequence. Grain was grown on 1898 acres, root-crops on 414 acres, and 99 acres were sown down in pasture. Stock on the estate comprised 29,391 sheep, 161 head of cattle, 154 horses, and 60 pigs. The sheep were of mixed breeds, but all were healthy, in fair condition, and the settlers had received a good clip and returns for wool sold. The cattle are mostly cows kept for home use, and the horses of the draught class. The recent broken, showery weather has freshened up the pastures, and the settlers will have good grass for their stock during the winter, the English grass sown land looking particularly well. Well-sinking has been successful on many of the sections, and any fear of not obtaining water has vanished. The population at present—including the Township of Seddon and the small divisions of Section 2 aforesaid—is 128 souls. Some of the settlers have not yet commenced to reside, and others have not brought their families with them, but I have been informed they will do so as soon as their arrangements for building dwellinghouses have been completed. Eoads were all in good order, and each section, except Section 11, Block XIII., Clifford Bay, has good access. The school has twenty-one pupils on the roll, with an average attendance of fifteen. There are two stores, post- and telephone-office, two blacksmiths' shops, an hotel and accommodation-house. The district is making satisfactory progress, and, apart from the loss occasioned by the dry season, no complaints were heard. Two settlers had

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