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selected during the year; while one Grown lands surrender, a small grazing-run, was accepted in order that the run might be subdivided. The run was subdivided and reselected during the year. Bangers' Beports. —During the year the Eangers have reported on 385 holdings, comprising an area of 82,479 acres. In accordance with the conditions under which these lands are held the improvements required to be effected amount to £36,762, while the improvements actually effected are valued at £93,976. The number of defaulters reported upon was as follows : For improvements, 32 ; for non-residence, 42 ; for other reasons, 4 : total, 78. Perpetual Leases. —The number of freeholds acquired under this system was eleven, with an area of 6,531 acres 3 roods, and one lessee with an area of 722 acres exchanged to lease in perpetuity, which leaves the number of perpetual-lease holders at forty-two, holding an area of 18,212 acres 3 roods 33 perches, and paying £845 7s. 7d. annually. Occupation ivith Bight of Purchase. —During the year sixty selectors took up an area of 32,703 acres 1 rood 23 perches, which yields an annual rental of £1,4y5 15s. 10d. ; while one lease comprising 289 acres was forfeited, and one, comprising 701 acres, was surrendered. This leaves 178 licensees under the occupation-with-right-of-purchase system, holding an area of 75,446 acres 3 roods 23 perches, and paying £3,115 3s. Bd. annual rent. Lease in Perpetuity. —The number of selectors under this system was eighteen, who selected an area of 9,247 acres 28 perches, at an annual rental of £394 2s. 4d. There was also one exchange from perpetual lease of 722 acres, with an annual rental of £10 16s. Bd., which makes the number of tenants under this system 172, holding an area of 98,192 acres 3 roods 34 perches, and paying an annual rent of £3,089 os. lid. Small Grazing-runs. —During the year ten new lessees took up an area of 38,229 acres, yielding £403 16s. per annum ; while one lease comprising 7,069 acres was forfeited, and two, making an area of 3,811 acres 2 roods 22 perches, were surrendered. This leaves sixty-six small grazing-run holders, leasing an area of 195,969 acres 1 rood 14 perches, and paying an annual rent of £2,015 2s. Bd. Native Toionships. —During the year, two townships were placed in the market under " The Native Townships Act, 1895," viz., Te Araroa and Tuatini, therefore there are now three Native townships in this district: Te Puia, 166 acres 1 rood 32 perches; Te Araroa, 206 acres 1 perch ; and Tuatini, 38 acres 29 perches. An area of 140 acres 2 roods 18 perches was selected by twentyseven lessees at a yearly rental of £113 17s. 6d., which makes the number of tenants under this system thirty-seven, holding an area of 177 acres 1 rood 35 perches, and paying an annual rental of £133. General. —The work of the office appears to be steadily on the increase. The number of applications received during the year was 2,115, involving an increase of 158 new selectors, as against 1,210 applications last year, which involved an increase of 102 selectors. The number of transfers approved was 172 ; and sixty-rive reports on applications for loans were forwarded to the Government Advances to Settlers Department; while 14,119 letters, &c., were received and despatched. The number of vouchers for expenditure was 1,680, representing a total amount of £41,927 17s. 2d. Improved-farm Settlements. There is practically only one improved-farm settlement in this district—viz., Waikopiro. Two sections of the Akitio Settlement are situated in Hawke's Bay, but the greater portion of Akitio is administered from Wellington. Waikopiro. —There are still fifteen settlers on Waikopiro, holding an area of 1,771 acres. An area of 1,290 acres has been felled and grassed, and there are ninety-five persons resident. The sum advanced to the settlers amounts to £1,784. The improvements effected are valued at £5,335 2s. 6d., as against required improvements, £3,401 16s. 4d. The stock consists of 921 sheep, 180 cows, 154 young cattle, and 32 horses; making a total of 1,287. Land for Settlements Act. Baureka Settlement.- —This settlement, which is part of the Frimley Estate, was placed in the market in May, 1896. During the year there has been one forfeiture, therefore the number of tenants now stands at eighteen, holding an area of 408 acres 3 roods 37 perches, and paying an annual rent of £532 2s. There are eighteen houses on the settlement, and seventy-five persons residing. The improvements effected are valued at £2,139 Bs. 6d., as against £543 45., improvements required by the Act. An area of 99f acres is in crop, and the remainder is in gardens, orchards, and grass. Elsthorpe Settlement. —The Elsthorpe Settlement is situated in the Oero district, and was opened for selection in June, 1896. There is only one acre of this settlement unlet. The number of tenants is forty-six, holding 9,54b acres 3 roods 20 perches, and paying £2.307 15s. rent per annum. There are twenty-eight houses on the settlement, and the population is 125. The improvements effected to date are valued at £9,643 10s. as against £2,357 95., the requirements of the Act. The Elsthorpe settlers have done little or no cropping this year, and have gone in for sheep. The total stock is 22,752, made up as follows : Sheep, 22,120 ; cattle, 515 ; and horses, 117. Waimane Settlement. —This settlement, which is in Poverty Bay, was opened for selection in September, 1896. There is at present an area of 9 acres 2 roods 2 perches unlet, and the total number of tenants is seventeen, holding an area of 416 acres 1 rood 32 poles, and paying an annual rental of £453. The value of the improvements effected is £1,372, as against £417 required by the Act. This year an area of 166 acres 1 rood was under crop, chiefly maize, and the remainder is in grass. The total number of persons residing is fifty-one, and the number of houses is fourteen. The stock consists of 17 horses, 14 cows, 350 sheep, and 40 pigs, making a total of 421. Pouparae Settlement. —Pouparae Settlement, which is situated near Gisborne, in Poverty Bay district, was placed in the market in April, 1897. During the year there was one forfeiture of 53 acres 2 roods 37 perches, which now makes the number of tenants eight, with an area of 282 acres 2 roods 15 perches, and an annual rent of £341 3s. Inquiries have been made about the