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During the year prisoners planted 76,950 trees, and the free men 484,225, making a total of 561,175. Of this number 525,575 were planted on an area of 193J acres, 35,600 being used to fill up blanks in previous years' plantings. The cost of planting was £1 7s. B£d. per thousand. The area planted to date is 385J acres, with a total of 1,061,661 trees. Pits to the number of 602,258 were dug ; prisoners digging 181,614 and free men 420,644, at a cost of £3 os. 4d. per thousand. 116,800 blank pits were also reopened, the cost being £1 2s. 6d. per thousand. The area pitted and planted during the year was very much more stony than that done in former years, which accounts for the higher rate of cost per thousand than in the previous years. Fire-breaks. —l 72 chains was chipped and cleared, this work being done by both classes of labour. Rabbiting was done periodically, and no damage has resulted from this pest. The cost of this work for the year was £6 17s. 7d. The daily average number of men employed during the year was 2179. Prison Labour. —The daily average number of prisoners employed was 1728, the value of the work done being £675 6s. lid., or an average of £39 2s. 9d. per man for the year. The work done was very creditable and satisfactory. Owing to the severe drought experienced during the spring and summer months, a very large death rate has to be recorded all over the plantation. Planting operations were commenced in May and completed in August. At the end of September mostly all species planted appeared to be going to do well, but during the next three months, owing to drying winds and a meagre rainfall, considerable numbers began to die, and the death rate is estimated at 50 per cent. Those that suffered most were larch and Oregon and Ooisican pines, the deaths among the larch being only where planted on the flats; those on the terraces, where not exposed to the north-west winds, have done well. False acacia also suffered considerably, but a number of these are putting up fresh shoots from the root. Among former years' plantings a considerable number have also succumbed, chiefly larch, and Oregon, Weymouth, and pitch pines. After the experience of the past season, an idea can now be formed as to which of the various species planted are best adapted for this locality. P. Austriaca, P. Laricio, P. 'ponderosa, and P. Benthamiana will probably be found to be the best. Larch, except on southern slopes, cannot be recommended as compared with the four above-mentioned pines. This is strongly demonstrated where, mixed planting was done in 1904—5 ; for every one of these pines found dead probably twenty larches would be got. It is therefore worthy of consideration whether or not this tree should be planted here so extensively as it has been. During the year £22 19s. was received for rent, and £37 19s. for flax, which was duly paid to the credit of State Forest Account. The total revenue received from this plantation to date is £145 6s. The expenditure for the year was £2,556 35., the total to date being £8,796 18s. Expenditure. £ s. d. Amount at the 31st March, 1906 ... ... ... ...6,240 15 0 Pitting — 420,634 pits ... ... ... ... ... ... 1,270 1 3 Reopening 116,800 pits... ... ... ... ... 131 6 5 Tree-planting—4B4,22s trees ... ... ... ... 701 7 3 Cartage of trees ... ... ... ... ... ... 19 19 6 General upkeep of plantation ... ... ... ... 92 6 3 Tools, implements, &c. ... ... ... ... ... 69 1 2 Miscellaneous works ... ... ... ... ... 66 7 0 Supervision of free and prison labour... ... ... ... 159 3 6 Nurseryman's salary, Proportion of ... ... ... ... 28 16 8 Supervision . . ... ... ... .. ... 17 14 0 £8,796 18 0 Note.—Revenue amounting to £60 18s. was received during the year, making a total of £145 Gs. received to date. W. G. Morrison, Assistant Forester. W. Cromb, Nurseryman in Charge. Dusky Hill Plantation, Otago. (Area, 845 acres ; altitude, 400 ft. to 800 ft.) It is with extreme regret that we. have to report a disastrous fire which occurred on this plantation on the 27th October, 1906, resulting in the destruction of two-thirds of the area under trees. It appears that a fire lit by a fisherman tor the purpose of boiling a billy of water got beyond control, and aided by a terrific gale blowing directly across the plantation, and also the unusual dryness of all undergrow T th at the time, soon enveloped the greater portion. Volunteers were available and rendered all possible assistance, but it was not until heavy rain fell that the conflagration was finally extinguished. Fire-breaks on this occasion had very little influence in checking the spread, as the flying debris was ofttimes seen flying across breaks and creating fresh fires many chains distant. The Pomahaka River, which for a considerable distance forms a natural boundary to the plantation, attracts numbers of fishermen annually, and access through the lower portion of property is available and frequently used by picnickers ; and unless this reserve and road are closed, tree-planting operations must be continued with extreme risk of future fire, as the rocky faces extend almost to the river-edge in places, and firebreaks on this side are quite impracticable. A number of hands were employed immediately after

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