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TTiere were 390,500 trees planted in grubber pits, at 15s. 9fd. per thousand; and 73,041 by the bar method, at 12s. 6£d. per thousand. The new area planted during the year amounted to l?0| acres, and the total area under trees at present is 1,252$ acres, containing 3,777,120 trees. 57,454 trees were also used in replanting previous failures. 340,625 grubber pits were prepared by contract, at £1 per thousand; and 260,991 scuffled spots for bar-planting, by day-labour, at 10s. lfd. per thousand. On the whole, the results attained by the bar-planting system are sufficiently encouraging to merit the continuance of the method; winter planting with the bar, however, cannot be recommended for this district, as, no matter how carefui a planter may be in closing the crevice made, a heavy frost will invariably loosen the young tree, which, if not attended to, is quickly rendered useless. It may be mentioned that an. improvement has been effected in the bars used for the work by widening the blade, and this will dispense wi'b the cramping of roots that has hitherto been found unavoidable when dealing with the larger-sized trees. On the extension property an expenditure of £39 9s. 7d. was incurred under the heading of ''Formation" The Rankleburn Gorge route being considered favourable for the conveyance of trees, 40 chains of roading and 5 chains of cuttings were formed, at 7s. 4|d. per chain, and no difficulty should arise, even in frosty weather, in carriage of trees from Tapanui. 70 chains of new fire-breaks, 100 ft. wide, was made on the summit of the leading range, at ss. ll|d. per chain, and this forms the main break between the planted and extension blocks. Horse-work here has now become a big item, but this year it was possible at intervals to work two teams from Tapanui, and fire-break labour was completed earlier than usual. Trees established have made exceptionally vigorous growth during the past season, and one large break of Finns ponderom and P. Benthamiana occupying an exposed south-westerly situation may be singled out for favourable comment. These pines for two years only made the usual headway, but there are many that have added over 2 ft. to their height this year, while the average should reach about 18 in. Larch still proves to be the fastest-growing tree dealt with, and also the least expensive as far as maintenance work is concerned. Pinus Laricio and P. Austriaca are both consistent growers here, although the former variety, after becoming fully established, produces foliage of a more healthy colour than the latter. The hardwoods are growing strongly in gullies, and it is anticipated that the cutting-back to groundsurface of bark-bound oak and ash will be the means of inducing the trees to make new strong leaders. A better report of the spruces can be given than formerly, although it only requires a comparatively light frost to destroy their delicate leaders, and pruning must always be considered a costly item in these blocks. The extension property being approximately three miles distant from old camps, it was necessary to provide additional accommodation for employees at a more convenient site, and three well-finished buildings, 18 ft. by 12 ft., were erected, at a cost of about £65 each. General repairs and additions were also made to the Forester's house on lower plantation, and minor repairs effected to the building on extension property. The latter dwelling-house, which is now occupied by one of the Foresters, is in a state of decay, and the whole place has fallen a prey to the destructive wood-borer. The erection of a cottage here would dispense with the necessity of almost continual repairing, and be greatly appreciated by the Forester. The area originally enclosed being planted, the main gang of employees are at present occupied in pitting on extension block. A considerable amount of labour, however, was necessary in treepruning, cleaning around trees, and replanting failures on old block, and the recent appointment of an additional Assistant Forester to carry on this work has been attended with success. Rabbiting has been steadily proceeded with, and trees may now be transplanted to their permanent positions on the extension area without any likelihood of interference by the pest. Owners of adjoining properties settled their fencing accounts in full, and the total receipts, amounting to £123 13s. 10d., were transmitted to the Receiver of Land Revenue. A statement of expenditure for the year is appended. The average number employed was 15 - 52 men.

Statement of Expenditure. Amount at 31st March, 1908 ... ... ... ... g 686 17 11 pittin g '.'.'. '473 4 0 Tree-planting ... ... ... ... ... ... 354 9 n Formation ... ... ... ... ... 37 9 7 Cartage of trees and railage... ... ... ... ... 93 3 5 General upkeep of plantation ... ... ... ... 507 410 repairs ... ... ... ... ... [[[ 98 0 4 Horse-feed purchased and grown ... ... ... ... 11 7 2 Buildings, employees' quarters ... ... ... ... 198 H 7 Tools, implements, &c. ... ... ... ... 22 6 3 Miscellaneous works ... ... ... ... ... 35 10 4 Salaries— Foresters ... ... ... ... ... ... 295 q q Nurseryman's proportion of ... ... ... ... 40 0 0 Supervision ... ... .. ... ... 24 6 8 £11,877 12 0 W. Howe, ). . , >. v, W. G. Morrison, j Asslstajlt Foresters. R. G. Robinson, Forester in Charge.

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