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C.—l

Occupation with Right of Purchase. —This system finds only limited favour in this district, but there has been a small increase during the year, the number of selectors having increased from fifteen to nineteen, and the area from, 1,081 to 1,615 acres. Lease in Perpetuity. —The principal increase under this head has been in respect of lands acquired under the Land for Settlements Act, which will be noticed elsewhere. With regard to other lands, the area held at 31st March shows an increase of 1,659 acres of ordinary Crown lands, the areas of Cheviot and Lake Ellesmere lands remaining practically unchanged. Village-homestead Settlements. —These show a decrease of five selectors and about 250 acres under the perpetual-lease class, nearly the whole of these having been transferred by exchanges of tenure to the lease-in-perpetuity class, which has been further increased by eleven new selections, representing 131 acres. The Lake Ellesmere leases have also been increased by two selections, comprising 12 acres. The number and area of Cheviot leaseholds under this tenure remain unchanged. Farm Homestectds. —The number of leases and area held under this system remain practically the same as last year, one lessee, whose lease had been forfeited, having been reinstated in his holding. Small Grazing-runs —Two runs, comprising 7,514 acres, have been surrendered during the year, so that, despite three new selections of 5,641 acres, the total area of Crown lands held has fallen by nearly 1,900 acres. A considerable increase of runs held under the Land for Settlements Act has resulted from the disposal of the Waikakahi Settlement. Pastoral Licenses. —Thirty-five new licenses, comprising 119,728 acres, have been disposed of during the year, but, as the majority of these were sold in advance for terms commencing on the Ist March, 1900, they do not materially increase the area held at the 31st March. Grown Lands opened for Selection. —Exclusive of lands offered for selection under the Land for Settlements Acts, the land-selections during the year present few features worthy of note, with the exception of the auction sales of pastoral licenses of runs the existing licenses of which expire on the Ist March, 1900. Under other systems the areas offered during the year consist for the most part of forfeited or surrendered holdings. The following are the principal areas placed in the market:— Under the optional system (Part 111. of "The Land Act, 1892"): Eleven lots, aggregating 6,209 acres, of which 3,600 acres were withdrawn prior to selection. The whole of the remainder, with the exception of one small lot of 20 acres, was selected, the lease-in-perpetuity system being the tenure favoured by all the applicants except one. Pastoral runs: Forty pastoral runs, of an aggregate area of 153,059 acres, were offered for lease by public auction. Four of these comprised burnt bush country on Mount Oxford; three were small grazing areas of flat land near Oxford; one run of 3,937 acres near Hakataramea, reoffered after surrender of the previous license; and the remaining thirty-two runs were reoffered for license in terms of " The Land Act, 1892," one year before the termination, on the Ist March, 1900, of the existing licenses. For the purpose of classifying these runs previous to disposal, Commissioners were appointed, who thoroughly inspected all the runs lying south of the Eakaia Eiver, those northward of that boundary having been inspected and classified as recently as 1896, so that it was not deemed necessary to revisit them. These runs were distributed over the whole of the pastoral area of Canterbury, 70,828 acres being situated between the Hurunui and Eakaia Bivers; 17,488 acres between the Eakaia and Eangitata Eivers; and 53,843 acres between the Eangitata and Waitaki Eivers. For the most favourably situated runs there was keen competition, and the rentals realised will enhance the pastoral revenue of the district. A few runs remain unsold, and will be reoffered during the ensuing year. Other lands : The other lands offered include two small grazing-runs of 5,478 acres in South Canterbury; one lease-in-perpetuity allotment of 573 acres at Lake Ellesmere; six village-home-stead lease-in-perpetuity allotments, comprising 162 acres, in various localities; nine lots, totalling about 19 acres, offered for cash sale at auction ; and sixteen lots, comprising about 227 acres, offered for temporary occupation. Arrears of Rents. —The arrears of rents due at the 31st March, 1899, amount to £1,992 4s. Bd., out of a total annual rent-roll of £91,018 18s. Bd., or about 2-19 per cent, of the total. This is an excess of £734 over the arrears returned at the corresponding period last year, the increase being principally under the small grazing-run and land-for-settlement tenures. In the latter case it is undoubtedly due to the unfavourable season experienced last year, which pressed hardly upon many of the new settlers at the very commencement of their efforts to establish new homes. Transfers, Exchanges, Forfeitures. —During the year transfers have been completed of eighty holdings occupied under settlement conditions, comprising about 17,780 acres. The principal numbers are as follows :— Lease in perpetuity ... ... ... ... 45, comprising 6,949 acres, Small grazing-runs ... ... ... ... 4, „ 8,542 „ Village-homestead leases ... ... ... 22, „ 929 „ The number of exchanges during the year has been small, comprising only fourteen holdings, having an area of 555 acres. The tenants of the Crown having generally complied very satisfactorily with the conditions of their leases in respect of residence and improvements, as well as payment of rents, but few forfeitures have occurred during the year. The figures are as follows : Leases in perpetuity, Crown— two selectors, holding 610 acres, forfeited, and two, holding 954 acres 2 roods 9 perches, surrendered ; village-settlement perpetual lease—two, holding 38 acres and 32 perches, forfeited; village homestead—two, holding 44 acres 3 roods 38 perches, forfeited; small grazing-runs—two, comprising 7,514 acres 2 roods, surrendered. Two leases in perpetuity, comprising 573 acres 1 rood 34 perches, at Lake Ellesmere, and ten leases under the Land for Settlements Acts, comprising 323 acres and