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Schedule 111. — Trees Account. , T , Number. Trees received during the year Less to replace blanks Planted on new area Previously planted .. ..... .. .. .. 152,896 Total number planted on 173 acres (average age, five years) .. 152,896 Schedule IV. — Property Account. Laud (420 acres) ; Crown and, not charged to Forestry Account Buildings .. .. .. .. .. .. .. 57 3 9 Stock Improvements .. .. .. .. .. .. 50 0 0 Fencing .. .. .. .. .. .. 387 11 2 .Stores in hand .. .. .. .. .. .. 19 19 0 £514 13 11 Balance-sheet. t; 8> j. Total expenditure .. .. .. .. .. .. 2,61] 0 5 Less Property Account .. .. .. .. .. 514 13 11 Cost of operations (173 acres planted ; average age, five years) .. £2,096 6 6 Estimated value of plantation per acre .. .. .. .. £10 0 0 A. W. Roberts, Nurseryman in Charge. Hanmer Springs Nursery, Canterbury. (Area, 40 acres ; approximate altitude, 1,225 ft.) Rain fell on 110 days, with a total precipitation of 44-68 in., the maximum monthly fall being 6-11 in., during the month of June. The highest shade temperature (85°) was registered on the 25th November, and the lowest (20°) on the 17th May and the 21st June. Although a heavier rainfall was experienced during the year by 0-94 in. than that of last year, the number of days on which ruin fell was less by twenty-nine days, thus showing a very uneven distribution of moisture throughout the year. Extremely dry weather was experienced during the early spring and autumn, but the summer months were fairly moist, sufficient rain falling to maintain an even, and in the case of larch, a fairly rapid growth. The spring drought was, however, severely felt, coming as it did during the latter part of and immediately subsequent to the completion of lining-out operations. The larch, being planted earlier in the season, did not suffer so greatly as the pines, as they were well established before the drought set in, and the death-rate could be put down at from 10 to 12 per cent. The pines, however, were very severely dealt with, as the diought had set in just before the completion of planting operations, and continued for some five or six weeks following. The death-rate was therefore very high, being from 25 to 30 per cent., and the growth of the trees throughout the rest of the season was poor. A number of alder cuttings was also planted, but a " strike " did not eventuate owing to the dryness of the season. Lining-out was commenced on the 26th August and was completed on the 18th October, the latter part of the operation being carried out under most adverse circumstances. Two beds of Pinus Laricio were left for the following season, and the young plants have made excellent growth. These trees will now require to be left in the nursery lines for one. year only. A total of 1,452,000 seedlings were dealt with, at a cost of Is. sd. per thousand. Trees to the number of 1,146,905 were transferred 4o the plantation during the year, valued at £3,442 10s. 5d., and 82,000 seedling larch were sent to Tapanui Nursery, valued at £82 ; making a total of 1,228,905 for the year, and 4,867,705 to date. The total number of trees raised .since initiation is 12,198,800, and those raised during the year total 2,470,200. The estimated number at present on the nursery is 4,722,200, and the number available for the coming season's planting is 1,040,000. Seed-sowing was commenced on the 25th October, and was completed on the 31st. The results have been fairly successful, a very sturdy crop eventuating, but the seeds germinated somewhat, thinly especially larch, Pinus Laricio, P. Benthamiana, P. austriaca, P. muricata, and Pseudo-tswja taxifolia. On the other hand, P. ponderosa, P. insignis, Picea sitchensis, and Cupressus Lawsoniana germinated excellently. Growth has been good throughout the seed-beds. Formation. —Before lining-out was commenced, a considerable amount of draining and levelling was necessary. All low-lying portions of the new nursery-area were thoroughly tile-drained, and this work was also carried out on the older area.