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trees will in another year be well above the fern, which will to a great extent obviate the necessity of keeping the ground clear of undergrowth. In the eucalypti area good growth has been made. Amongst the older trees in many instances a height-growth of 3 ft. and 4 ft. is noticeable. During the spring and early summer an area of 20 acres was cleared, and spots prepared, at 4 ft. apart, by turning over the turf and chopping it up with a spade, in each of which a pinch of seed of Eucalyptus coriacea was sown. This method of treating gums has not been wholly successful, as, although results were got on fairly flat land, on the steep hillsides the seed was carried away by the rain. A trial lot of 100 three-year-old trees of Catalpa speciosa were planted here last winter with good results. This is a valuable North American timber tree, and the experiment was to test its suitability to the pumice land. The trees were planted 5 ft. apart, and cut back to within 4 in. from the ground shortly after planting, and during the season have made 2 ft. to 3 ft. of good sturdy growth. Judging from this, it would appear that the soil is suitable, but whether or not they will stand the winter is as yet unproved. There is, however, every indication that they will. Further experiments will be made during next winter with some 30,000 young trees, which are now ready in Eotorua Nursery. The number of trees planted on this reserve from its initiation to date amounts to 615,423. The average cost of planting trees during the season by day-labour was 12s. 9d. per thousand, and the cost of pitting and clearing by contract was 14s. 6d. per thousand and £1 per acre respectively. For next season preparations are being made to plant some 500,000 eucalypti, and about 100,000 trees of redwood, larch, catalpa, planes, &c. Details of expenditure and values to date and for the year are appended. The average number employed during the year was four. H, A. Goudib, Nurseryman in Charge.

Waiotapu Plantation. The employment of prison labour on this forest reserve has now got beyond the experimental stage, and, judging by the work done during the last two years and a half, it can be said with confidence that the system is a pronounced success. In valuing the work done by prison labour, the cost of similar work done on the plantation at Whakarewarewa was taken as a basis. This is the only method in which a fair estimate, both of actual labour and the success obtained amongst the trees planted, can be arrived at, as the soil and climatic conditions of each place are very similar. During the year the value of the plantation has increased from £1,125 7s. 2d. to £3,479 os. 10d., and of this amount £904 12s. lid. represents the actual value of work done by prisoners, the remainder being value of trees, cost of tools, &c. Last winter trees to the number of 293,063 were planted, with excellent results. Of this number 284,935 (chiefly Pinus ponderosa, P. sirobus, P. laricio, P. Austriaca, Abies Douglasii, and poplars) were planted on an area of acres which was cleared and pitted before the middle of May last. The remaining 8,128 trees were used to replace those which died amongst the number planted last year. A trial similar to that made at Whakarewarewa, of sowing eucalypti in situ, was made during the spring, and resulted in only partial success. 83,121 prepared spots were sown, and of that number about one-third have germinated. It may be said, however, that the weather experienced at the time of sowing was very dry and windy, and not conducive to success, especially on the light soil of the district. Fire-breaks were formed through all land cleared during the year. These are 100 links wide, with a 14-ft. wagon-road in the centre, dividing the land into nearly equal blocks. It is intended to plant two rows of walnuts on each side of these roads during the coming winter. A large wagon with a tilt was purchased for carting trees from Eotorua Nursery, which has proved very suitable for the purpose, and the trees now arrive none the worse for transport. From the beginning of the financial year till the end of December the average daily number of prisoners employed on forestry work was nineteen, but as this number was unable to get sufficient ground cleared and pitted for the trees coming on in Eotorua Nursery, four more huts were built, and the number of men increased by sixteen, making a daily average for the year of 22-59. The men were attended throughout the year by three warders, and the work supervised and directed by the Forester in Charge. For next season's planting an area of 154 acres was cleared, and up to the 31st March 245,206 pits were dug. This work will be continued until the beginning of May next, when it is anticipated that 500,000 pits will be ready to receive trees. Next year it is intended to experiment with Catalpa speciosa, oak, chestnuts, and several hardy varieties of eucalypti, in order to test the suitability of these trees for extensive planting here. As another season's planting will almost complete the present enclosure, an additional area of 2,000 acres adjoining will be fenced shortly. Details of expenditure and values are appended.