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The machinery generally is being kept in good order and condition, owing to the liberal use of paint and oil, with the necessary repairs. lam also arranging for the erection of suitable sheds for covering the whole of the general and harvesting machinery on such settlements as are at present without these important improvements. I may here add that the strain of dairy stock is being improved by the introduction of several good bulls—namely: Holder, a first-class Ayrshire stud bull, from Robertson's herd, Golden Grove, which took the first prize at Adelaide Cattle Show a year or two ago in his class; Waikerie, a purebred Jersey stud bull; Pyap, a pure-bred Alderney, bred by J. H. Richman, of Watervale District. The supply of meat is very short on the river at present, owing to the scarcity of fat stock of any kind; consequently the meat account soon runs up upon such settlements as get anything like a regular supply of either beef or mutton. The change of system of management upon Lyrup and Ramco Associations is giving me general satisfaction, although there are a few men on each place that do not take kindly to the fact that under the present regime they must either work or starve. At Lyrup the hours of labour have been enforced, whereas in the past many of the settlers did not work in reality more than four or six hours per day. Wherever it is practicable the work is laid out on the piecework principle, the rate of wages for such being those ruling for similar work elsewhere in the, district. By this means the maximum amount of labour is obtained, consequently the gain in such is very considerable. At Ramco the results have been similar—in fact, on some work, such as concreting and clearing land, the amount done per day is almost doubled, whilst the quality of workmanship has improved. Waikerie has just adopted the Ramco rules and started under the new system, whilst Holder and Kingston desire to do so as soon as the survey of the subdivision of residence blocks has taken place. Moorook remains divided in opinion in regard to the working of the place, but this difference does not interfere with the work in any way. On Pyap the settlers are practically unanimously in favour of the old system of local management, but in my opinion the appointment of a strong working manager would be an advantage to all concerned. • At Murtho a change has been made in the management, which should prove beneficial, provided the few remaining settlers work together. Grading land for irrigation, clearing, fencing, channeling, and preparing land for planting out with trees, vines, and root-crops, are the principal work in progress at present. Several of the associations still have a considerable quantity of unsold produce, which it is our endeavour to dispose of as opportunities occur. 1 have, &c, S. Mclntosh, Expert.

No. 1.—Village Association Statistics. (Population and Stock.)

* Ram. Lyrup.—A considerable number of fowls and ducks kept, but they are reckoned as being private property of settlers. Pyap.—Also Bix hives of bees. Holder.—Fowls kept by settlers, as at Lyrup. Ramco.—Fowls kept by settlers, at at Lyrup. Waikerie.—Fowls kept by settlers, as at Lyrup. Kingston.—Fowls kept by settlers, as at Lyrup ; also pigs likewise. Moorook.—Fowls kept by settlers, as at Lyrup ; also pigs likewise. Total.—Should estimate 500 fowls on the settlements.

Village Association. Adult Males. Adult Females. Boys. Girls. Total. No. of Horses. No. of No. of Cattle. Sheep. No. of Pigs. No. of Fowls. T Lyrup ■ ... p y a P j ••"• ... Holder ... Ramco ... Waikerie ... Kingston Moorook Murtho 33 23 28 21 19 17 16 9 28 20 23 11 13 16 14 9 55 86 44 15 19 32 22 7 55 38 48 17 34 31 24 11 171 117 143 64 85 96 76 36 22 17 26 13 23 14 12 18 37 51 34 48 53 18 20 21 1* 448 54 20 4 108 . 14... 8 ■ 75 69 11 32 21 4 60 Totals Report, 1896... 166 134 230 258 788 775 145 282 566 234 129