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factories. There is a tendency among the settlers to relinquish the dairying industry and return to sheep and cattle raising. Roads in the settlement are in good order. The settlers have made good improvements, and the prospects are promising. Matamata Settlement. —This settlement is situated on the Auckland-Rotorua Railway, 122 miles from Auckland. The improvements effected by the selectors are valued at £37,039 165., as against £5,577 Is. required by Act. Dairying is the main source of revenue. The settlement has suffered somewhat from the dry season, and there was a marked decrease in the supply of milk to the creameries, of which there are three on the settlement. Last year four were in operation, but this year one did not start. A large area of oats was sown, and good crops harvested ; turnip-crops were poor, and in many instances had to be sown a second time. A much-needed want has been supplied—viz., a new school (making two on the settlement), it having been erected during the last year, and having an attendance of eighteen children. All the roads are in good order. The settlers appear to be all prosperous, and the success of the settlement is assured. Selwyn Settlement. —This settlement is situated about 140 miles from Auckland on the AucklandRotorua Railway line/and has been in existence two years. The creamery on the settlement has been working since the commencement of the season, but the supply of milk has been only moderate. Most of the grass on this settlement was running out, and the settlers have broken up old pasture and put in during the hist twelve months 344 acres of new grass ; 296 acres of green crops had been sown, but owing to the dry season were comparatively a failure. White crops, comprising an area of 176 acres, were generally light owing to the dry summer, but the settlement appears to be in a satisfactory condition. Mangapouri Settlement. —This settlement, now just one year in existence, is situated in Piako County, and adjoins the Township of Tirau, which is 134 miles from Auckland by train. The soil is light sandy loam on sandstone. For a settlement in its infancy substantial improvements and buildings have been made and erected. There is a creamery on the edge of the settlement, and the majority of the settlers are suppliers. Dairying I consider will be the main source of revenue, the formation of the country being admirably suited for that purpose. Fencing has gone on rapidly, and there does not appear to be any reason why the settlement should not be a success. Mangawhero Settlement. —This settlement, which was opened for selection on the 25th March, 1907, is situated in the Piako County, and convenient to Matamata Railway-Station and Township. It is principally level to undulating country, of light loamy nature, resting on sandstone. There is a creamery in the centre of the settlement to which, with three exceptions, the selectors are suppliers of milk. The settlers arc all hardworking and energetic, and for the short time they have been in occupation have effected good and substantial improvements, and there is every reason to believe that in a short space of time this settlement will compare favourably with any in the district. Mcthuen Hamlet is situated near Avondale, which is a quarter of a mile distant. During the year several new homes have been erected, and building is still being carried on. Unfortunately two fires occurred and completely destroyed houses, but since then one has been re-erected at considerable cost. The buildings are all of a substantial character and very suitable for the holders. The improvements are excellent. j. Kitchener Hamlet is situated about six miles from Auckland. All the sections but one are occupied, and good houses are erected thereon. The land is of good quality. The improvements are well in advance of requirements, and selectors appear to be well satisfied with their holdings. Plumer Hamlet is situated at Henderson, fourteen miles from Auckland by rail. All the sections but one are taken up and good substantial houses built thereon. One settler utilises his holding for a poultry-farm and others go in for gardening, the land being very suitable. This hamlet is permanent and progressive. ii If Waari Hamlet is fourteen miles from Auckland by road or rail. The land is poor. Only eight sections have been taken up, five of which have comfortable houses erected thereon. The prospects of this settlement do not appear so bright, on account of the sections being small for the class of country, but the lots not taken are being grouped. Hetana Hamlet is within half a mile of New I.vim Station. This place has greatly improved since last year, several new buildings being put up and sections fenced. Most of the holders are labourers and work in the vicinity. The prospects are very hopeful considering the amount of improvements effected during the past year. Cradock Hamlet is six miles from Auckland, the land being fairly good. The buildings are very substantial, and improvements far exceed the requirements. On the whole I consider this place permanent and satisfactory to the tenants for residences. J. Mackenzie, Commissioner of Crown Lands. HAWKE'S BAY. Raureka Settlement. —This settlement, which was part of the Frimley Estate, was placed in the market in May, 1896. The area purchased was 427 acres 2 roods. The number of selectors is 19, and total population 99. Number of stock, 1,173, comprising 994 sheep, 101 cattle, 48 horses, and 30 pigs. Area in orchards, 12 acres ; area in white and green crops, 67 acres ; area ploughed and sown down in permanent pasture, 320 acres. There are eighteen dwellinghouses, of a total value of £2,815. The value of improvements effected by selectors amounts to £5,115 10s., as against £4,228 13s. required by law. Dairying and fruit-growing are the principal sources of income, and the settlement generally is prospering.