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warm summer. The major portion of the land selected in this district has now been settled for a number of years, and the conditions have in most cases all been complied with. The improvements are largely in excess of requirements, and still selectors are adding to them each year with new homesteads, stumping, and cultivation where there are suitable areas, thereby increasing their returns and carrying-capacity. The dairying industry still continues to flourish, and is one of the principal sources of income in the district, there being numerous cheese and butter factories established throughout. The roads still continue to improve, and there are only a few 6 ft. tracks left, these tracks being replaced by full-width dray-roads ; also, a number of the most dangerous streams have been bridged during the year. The Crown Lands Ranger for the south-eastern and southern portions of the district reports thai the ordinary Crown lands in his district have all been brought into profitable use, dairying being the principal source of income. A greal many of the Crown tenants in this district are on land-for-settle-ments estates. All settlements are now thoroughly established, the tenants arc doing well, and mum of them have a goodwill in their holdings amounting to large sums of money. Where the land is suitable for dairying the holdings are utilized for that purpose, dairy factories being established within the settlements or within easy distance of them. This industry during the current year has proved most remunerative, record prices having been obtained for both butter and cheese. On the whole, settlement lands of farm areas have proved to be desirable areas to hold and are popular with the tenants. All tenants are of a desirable class ami use their holdings to the best advantage. Roads throughout arc in order, and consequently settlers can reach the markets and railway with every convenience, which is a great factor towards successful settlement. Scenery reserves have been well preserved during the year. Arrears of Rental. The arrears of rental at the end of the year under review show an increase over last year's figures. The gross arrears include amounts owing by settlers in the North Waimarino blocks, who have not been pressed for payment of rent for some considerable time. Even with this the amount is high as compared with last year. Since the 31st March, however. €2,181 lias been collected, which means that in thirteen months only the amount of revenue was collected as in the twelve months of last year. Rebates of Rent. For prompt payment of rent rebates amounting to £2,627 were granted to 2,338 tenants on ordinary Crown lands, £1,600 to 342 tenants on land-for-settlements estates, and £26 to seventeen tenants on national-endowment area. These figures disclose an increase on last year's statistics, showing that some of the tenants are becoming more alive to the advantage of paying their rents promptly. Conversions of Tenure. During the period under review, two tenants applied for and obtained conversions of their village homestead holdings to renewable leases. The area brought under the new system was 15 acres. Transfers. During the year 182 transfers were completed on ordinary Crown land, the area transferred being 89,990 acres. On land-for-settlements lands the number was nineteen, and the area 4,872 acres ; and on education reserves twenty-three transfers representing 5,415 acres were completed. The figures are made up as follows : — _ ~ „, , , Number Area. Ordinary Crown lands— Transfers. i. B . p. Occupation with right of purchase . . . . .. 49 31, I ."38 0 0 Renewable lease .. .. .. . . 19 40 0 0 Lease in perpetuity . . . . . . . . 92 11.71600 Small grazing-runs .. .. .. ..12 13.158 0 0 Pastoral runs .. .. .. .. ..2 33,620 0 0 Village-homestead special settlement . . . . 2 10 0 0 Miscellaneous licenses and leases .. .. . . fi 8 0 0 182 89,990 0 0 Land-for-settlements lands— — Lease in perpetuity .. . .. ..18 t.774 0 0 Renewable lease . . . . . . . . 1 98 0 0 19 4.872 0 0 Education reserves .. .. .. ..23 5,415 0 0 Forfeitures and Surrenders. The number of forfeitures during the year was eighteen, of an area of 4,724 acres, and the number of surrenders was five of an area of 73 acres. Some of the forfeited sections were, however, reselected during the year. This year's figures show a decrease of fourteen from last year's number of forfeitures and a decrease of two surrenders.
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