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Balance-sheet. £ s. d. Total expenditure .... .. .. .. .. 46,158 17 5 Less Property Account .. .. .. .. .. 4,211 12 9 Cost of operations .. .. .. .. . . . . £41,947 4 8 6,224 acres planted (average age, six years). Estimated value of plantation per acre .. .. .. 9 7 0 Summary of Trees planted. Number on plantation at present day.— Numbers. Contents of various blocks .. .. .. .. .. 13,945,121 Ornamental and shelter trees at prison camps, &c. .. . . 475 Total trees now living .. .. .. ..13,945,596 Number used to replace failures, &c. — Experimental trees not suited to district .. .. .. 266,305 Used to replace failures .. .. .. .. .. 2,910,038 Total .. .. .. .. .. .. 17,121,939 Less trees raised from sood sown in situ . . .. . . . . 109,725 Trees received from nursery .. .. .. .. .. 17,012,214 Summary showing Area of Whakarewarewa Plantation (6,223-94 Acres in Trees). Larch .. .. .. .. .. .. .. .. 2,554-80 Pines .. .. .. .. .. .. .. .. 1,903-20 Blackwood .. .. .. .. .. .. .. 79-00 Eucalypti ~ .. .. .. .. 1,534-30 Walnut . . . . .. .. .. .. .. 9-70 Spruce, Picea, Pseudo-tsuga .. .. .. .. .. 127-00 Birch . . .. .. .. . . .. .. . . 5-80 Alder . . . . .. .. .. .. .. .. 8-94 Poplar . . . . .. .. .. .. .. . . 1-20 Roads, tracks, and fire-breaks . . . . . . . . .. 450-85 Land unsuitable for planting, including swamps, creeks, horse-paddocks, residence reserves, water-main reserve .. . . .. .. 487-21 Unplanted land .. ..' .. .. .. .. .. 2,418-80 9,580-80

Waiotapu Plantation. (Area, 7,777 acres ; altitude (approximate), 1,200 ft. to 2,000 ft.) The weather-conditions at the commencement of the season were not altogether favourable for tree-planting : frosts, being both frequent and severe, caused considerable delay. The rainfall was also below the average, thus necessitating the repuddling of all trees as they were received from the nursery. The healthy appearance now presented by tho young trees planted during this period more than justifies this extra expenditure. During the spring and early summer there was a plentiful rainfall, but owing to the long dry spell which followed there has been a premature shedding of leaves. The pines have suffered most ; Pinus radiata in particular seems to be unable to withstand a prolonged drought, several fine nine-year-old trees having died, while others show evidence of having had a struggle for existence. The 1,469,695 trees received from tho nursery during the year were planted as under : 579,060 on new area, 676,235 in replacing blanks in former years' plantings, and 214,400 Pinus Laricio used in replacing larch. About 213 acres of now area was planted with 578,800 Pinus Laricio. Where the trees are sheltered all have done well, and are making vigorous growth. Those planted early in the season on low-lying country have not done so well, and show a large death-rate ; they received a further set-back late in February, when 10° of frost was registered. A few Pinus patula, Pinus Montezumae, and Pinus Massoniana, planted for experimental purposes, have made fair growth, and are healthy, except that the Pinus Massoniana are more or less affected by tho pine aphis. An experimental seed-sowing of Pinus Laricio and Pinus radiata was made early in October, the object being to find out if direct sowing was going to be profitable. A pound of each species was sown broadcast amongst the standing growth on half an acre ; this proved a failure, as none of the seed germinated. A second plot of similar size, where the seed was sown after the growth had been burnt off, also resulted in failure, a few seed only germinating. With a third sowing, made in drills 3 ft. apart over a quarter acre, the result was again a failure ; the Pinus radiata germinated fairly well, although not sufficiently thick to be of any practical use. Birds and early frost did a good deal of damage, and the crop is now very uneven. The greater portion of the land planted with Pinus Laricio during the two previous seasons was low-lying, and subject to severe frosts, and this accounts to a great extent for the large number of trees required to replace failures. 22,700 Pinus radiata seedlings used in replacing failures were planted in two separate lots : the first planting was made in April, with disappointing results, quite 75 per cent, being killed by frost. From a planting made in October much better results were obtained, the death-rate not exceeding 10 per cent. The average cost of tree-planting was 4s. lOd. per thousand, and the replacing of failures 7s. 9d. per thousand, - - -■ - ■'•■

3—C. Ib,