STATE FOREST SERVICE. ANNUAL REPORT OF THE DIRECTOR OF FORESTRY FOR THE YEAR ENDED 31st MARCH, 1923.

Appendix to the Journals of the House of Representatives, 1923 Session I-II, C-03

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Session 11. 1923. NEW Z E ALAND.

STATE FOREST SERVICE. ANNUAL REPORT OF THE DIRECTOR OF FORESTRY FOR THE YEAR ENDED 31st MARCH, 1923.

Presented to both Houses of the General Assembly pursuant to Section 64 of the Forests Act, 1921-22.

The Director of Forestry to the Hon. the Commissioner of State Forests. Sir,— Wellington, Ist June, 1923. I have the honour to submit herewith a report on the work of the State Forest Service for the year ended the 31st March, 1923. The following recommendations bearing on the progress of national forestry are commended to you, sir, for your serious consideration : — A. A State Forest Purchase Account: It is considered that a special State Forests Purchase Account of £500,000 should be established for the acquisition of highly valuable Native and privately owned forests. B. In the public interest the Forest authority should be now made responsible for the administration of all Government timber and forest activities. This Service is the only agency of State administration efficiently organized to manage these and other collateral activities such as milling and timber licenses, leases, and permits. C. North Island Forest Experiment Station : " Forest investigation is essential to forest administration." An experiment station is urgently needed for the systematic study and investigation of the North Island forests. This station should be located in the South Auckland region. D. You are again advised of the desirability of securing the dedication to forestry and conservation of the large area of unalienated Crown forests (over 2,000,000 acres) not as yet under the control of the Forest authority. B. The desirability for a School of Forestry for the training of forest technicians and executants is still recognized ; provision for instructional facilities is earnestly recommended. F. A much greater participation in the profitable business of operating community plantations and tree-farms by cities, boroughs, counties, and other local bodies is possible by fuller State co-operation. This it is hoped will be possible shortly. G. You are advised of the pressing need in the public interest for a more definite and uniform policy of administration and control of the several hundred miles of sawmill tramways now in operation throughout the forested regions of New Zealand. I have, &c, L. Macintosh Ellis, B.Sc.F., C.S.F.E., S.A.F., Director of Forestry.

CONTENTS. PAGE PAGE Chapter I. — Accomplishments ~ .. .. 2 Chapter IV. —Research and Experiments— continued. Chapter II. —The State Forest Service .. .. .'! 2. Forest-produots Investigations .. ..in Chapter 111. —The State Forests .. .. f> 3. Forest Economics .. .. .. ..17 1. Constitution of State Forests .. .. 5 Chapter V. —General .. .. .. ..18 2. Finance .. .. .. .. .. 6 Timber Trade Conditions .. .. .. 18 IS. Management .. .. .. .. 7 Forest Atlas .. .. .. ..21 Timber .. .. .. ..7 Educational .. .. .. ..21 Gia/iuy; .. .. .. .. 8 Annexures .. .. .. .. .. 22 Game and Reoreation .. .. ..8 I. Status Records .. .. .. ..22 Forest-protection .. .. ..9 11. Report upon State Forestation Operations in 4. Afforestation and Forest-extension .. 10 the North Island .. .. 22 Chapter IV.—Research and Experiments .. .. 12 111. Report upon State Forestation Operations in 1. Forest-management .. .. 12 the South Island .. .. 24 Ecological and Silvical Research .. .. 12 IV. Summaries .. .. .. ..25 Silvicultural Research .. .. ..13 V. Export and Import Statistics .. ..27 Economy in Afforestation .. ..15 VJ. Finance Statements .. .. ..28

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CHAPTER I.—ACCOMPLISHMENTS. The year has been one of " fruition and results," and the Service has made good its promise of 1921 to make tlie national forest programme pay its way in this year. This has been made possible by reason of the splendid support of local governments, the Press, and the people of this country. State forestry has proved to be of real service and value to the community—a policy not to be trampled on or victimized by vested timber "monopolists, or to be trifled with by self-interested speculators. For the first time in the history of the forestry administration all operational and fire-protection expenditures, all debenture interest charges and sinking-fund redemptions, have been covered by departmental receipts. From now on there will be no looking backward. Forestry having passed through the " boom " period, with its inevitable reaction, has now become definitely consolidated in its appropriate position in New Zealand's national economy. A year of definite progress and essential gains is again recorded, notwithstanding the restricted financial resources made available by Parliament for this work. Fire Protection. By virtue of the powers given by the Forests Act, 1921-22, forest fire districts were established, one in each conservation region, where the foreat-fire danger was highest and the woodlands of great value, and active patrol measures were put into force during the fire season. It is pleasant to record that the .system has proved entirely successful in reducing potential danger in bushfelling fires, and has definitely reduced the number of fires spreading to State forests. It is proposed, therefore, to extend the operation of fire districts during the present calendar year. The fire season this year, which extended from, the month of November to the month of March, was one of low hazard owing to the bounteous rainfall and absence of bushfelling operations. The total number of forest fires was thirteen, the same number as last year. Two acres of forested land and 1,320 acres of fern and scrub land on State forests were burned, as against 1,012 acres and 90 acres respectively last year, and the total damage was £31, as against £111 for the previous period. While climatic conditions have not favoured fires, nevertheless it waa only with the generous co-operation and assistance of settlers, sawmillers, loggers, travellers, tourists, trappers, and others that the number of fires and resultant damage was kept so low. "In forest-fire control success is attained through prevention and suppression." Timber-sales. A new record in the history of State Forest revenues has been set in this, a year of general quietness and inactivity in the building trades, by the receipt of £65,000 gross revenue, the highest mark in twentyeight years, and ten times the revenue for 1919. This revenue has not been attained at the expense of the receipts of other Government agencies or by forcing higher prices from logging operators, for all sales of ripe timber have been made freely, openly, and by public competition. The wisdom of the Government in instituting the open public system of disposal is seen this year, when the unit bid prices for totara, rimu, matai, white-pine, and other species have exceeded those prices attained in the previous year by 12 per cent., and in 1921 by 16 per cent. The economic law of supply and demand, which in the case of the stumpage has moved prices up, has pegged the prices of sawn timber down. The general, constructional inactivity of the year, with resultant quickening of the competition for business, has not been without its advantages to home-builders and timber-consumers, for general reductions have been made during the year in the selling-prices of certain classes of rimu, matai, beech, white-pine, and miro forest products. This average reduction has been about 15 per C3iit. in the South Island and about 10 per cent, in the North Island. Competition is to-day, as it always was and must continue to be, the best corrective and the life of trade ; the outlook for the next two or three years in the South Island at least indicates a steady downward trend in sawntimber prices to the consumer. Economy in Expenditure. The departmental expenditures for the year totalled £85,410, being £21,950 less than the parliamentary estimate, and £22,172 less than the expenditure of last year. Of this expenditure 55-1 per cent, was invested in permanent reproductive capital works, such as plantations, forest roads, tracks, and general forest-protection improvements. The balance, 449 per cent., was devoted to fire patrol, protection of forests, the carrying-out of timber-testing, demarcation, classification, surveying of State forests, and other co-administrative operations. Good team-work, reduction in labour and material costs, improvements in technique, and the closest economy have enabled the Service to carry on essential ;j works without a material set-back. Legislation. During the parliamentary session of 1922 representations were made by certain proprietary timberland interests to the Government seeking a modification of the powers of the Hon. Commissioner of State Forests in his control of logging tramways and rights of way through State forests under the Forests Act, 1921-22. These powerful influences sought the return of these powers to the original authority —the Mining Warden. After a careful consideration of the matter by the legislative Mining Committee of the House of Representatives and the Legislative Council, amending legislation was passed clearly reaffirming the principle of unity of control and the administration of State forests and their lands by the Commissioner of State Forests, and at the same time safeguarding the miners' rights and equities. The new Forests Act is working splendidly, and ita operation is fitting smoothly and effectively into the management and control of the State forests and other activities incident thereto.

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Forestation and Forest-extension. Very satisfactory progress lias been made during the year : 3,784,000 trees were planted on 2,862 acres by the Service at a 45-per-cent. reduction in cost over the previous year. Nearly 1,500,000 trees were profitably disposed of to local-body and private planters, and it is estimated that approximately 2,500,000 trees raised by other than State agencies were established on 2,400 acres. Miscellaneous. Substantial progress is recorded in important economic forest-products investigations, and in the study of ways and means of using the millions of tons of wood-waste created per annum. The efforts of the Branch of Forest Products have been directed towards securing the fuller economic use of the forests. The properties and uses of a large number of the secondary timbers have been scientifically investigated. Consumers of wood are able by this means to substitute New Zealand woods for imported timbers with every confidence. Utilization of our valuable hardwood forests, at present almost unexploited, is essential if our timber resources are to be managed on a permanent basis. Their full value is gradually being developed by research and experiments. In forest ecological research —so vital to the successful management of our ten million acres of indigenous forests —valuable results are being attained. Research into the ecology and silvics of the beech forests was commenced during the year, in addition to the studies commenced in 1920 on the kauri and taxad forests. Additional silvicultural sample plots have been established in indigenous forests and plantations, and on the South Island forest experiment station established during the year the study of management problems has been commenced. The comprehensive Dominion-wide survey of New Zealand's forest resources was completed. It indicates that we have a national indigenous forest capital of 8,453,000,000 cubic" feet. The estimated net annual increment is 68,880,000 cubic feet, whilst the annual consumption of native woods is 78,500,000 cubic feet, and export 5,000,000 cubic feet. It is obvious that with New Zealand eating into its growing-forest capital at the rate of 15,000,000 cubic feet per annum a national forest programme has been adopted just in time. The remarkable extent to which the opossum has become of economic value in New Zealand, and incidentally a considerable by-product of the State forests, is emphasized by the fact that 381 permits to trap opossums were issued during the year, and 54,357 skins were harvested, largely from State forests. The gross value of these skins would not be less than £20,000. A very gratifying evidence of the growing appreciation of the forest domain by the public is the increasing extent to which tramping-parties, tourists, fishermen, and sportsmen find relaxation, sport, and recreation within the precincts of State forests. Some thirty thousand persons visited the forests during the year. Other features and activities of interest during the period were the soil-classification of 23,000 acres of State forests ; completion of the investigation of the deer and the wild-pig menace, and the adoption of remedial measures by certain acclimatization societies and the Government ; the commencement of operations on the Westland Forest Experiment Station ; the gazetted dedication of another 165,754 acres (net increase) of Crown forests as State forests ; the sand-dune-reclamation work at Rangitikoi Heads ; and the publication and widespread distribution of posters, leaflets, circulars, and reports dealing with the many aspects of forestry, tree-planting, and trees. The year has been productive of substantial gains, but these form only a portion of the progress that national forestry and timber-farming will make at the present rate in a few years' time. Forestry as a habit— and a highly profitable one —has come to stay. CHAPTER lI.—THE STATE FOREST SERVICE. The vital necessity for loyal and genuine co-operation among all members of the Forest Service was splendidly met, and never more evident than during the year, for the closest economy in expenditure was needed and gladly recognized by all. Not only was a saving of several thousand pounds effected in expenditure at no sacrifice in efficiency, but greater efficiency was secured in many branches of the work, particularly in nursery and planting methods, in timber cruising and estimation, and in patrol methods. The aims and objects of the Service are becoming better understood, with the result that things arc working more smoothly and harmoniously. The good relations established with the public are being extended every year, and it is pleasant to note the many complimentary expressions passed on the work Of the organization. It is felt that the methods used in dealing with forestry matters are inspiring public confidence. During the year the technical staff has been strengthened by the addition of three New-Zealanders who secured their professional training at Edinburgh University (where they graduated in forestry), and in France, and who, after occupying temporary posts for a short period, were permanently appointed forest rangers (B Grade). In order that the public might be served more effectually and expeditiously, and also in the interest of greater staff efficiency, the headquarters of the Wellington Forest-conservation Region was moved to Palmerston North, and the Conservator's head .quarters of the Canterbury-Otago Region transferred from Tapanui to Christchurch. During the year a severe loss was suffered through the untimely death of Mr. A. D. Macfarlane, who held the position of Chief Clerk from the inception of the Service. Other staff changes were the retirements of three officers on superannuation. The following diagram illustrates the internal organization of the Service ; defmiteness of responsibility has been aimed at and secured, with highly satisfactory results in personal efficiency : —

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ORGANIZATION OF PERSONNEL, STATE FOREST SERVICE.

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New Zealand State Forest Service Organization.—Distribution of Permanent Staff as at 31st March, 1923.

CHAPTER 111. —THE STATE FORESTS. I. CONSTITUTION OF STATE FORESTS. The need for unity of control of New Zealand State-owned forest is more urgent than ever, and there tire still many thousands of acres of densely timbered Crown lands which should be dedicated to forestry. Reconnaissances of such forests have been made, with a view to ascertaining whether the timber stands are sufficiently heavy to ensure; profitable logging, or whether the forest growth should be conserved for protcctional purposes. Experience in all the older countries shows that the management of national indigenous forests by one authority is essential for the maintenance of timber-supplies and the protection of agricultural lowlands from flooding. The State; Forest Service controls a forested area of 11 per cent, of the Dominion's area ; at least another 7 per cent, should be added. Stale Forest Areas. The total Crown lands gazetted as permanent and provisional State forests as at the 31st March, 1923, was 7,250,982 acres, and the addition of 85,028 acres forest reserves makes a grand total of 7,336,010 acres of land under Forest Service control. These; figures show a net increase of 165,754 acres over those of last year, notwithstanding the fact that numerous areas have been withdrawn from provisional State Forest reservation in terms of section 20 of the Forests Act, 1921-22, to enable the land to be disposed of for settlement, and that by the passing of the Tongariro National Park Act, 1922, 67,140 acres formerly dedicated to forestry purposes were included within the boundaries of the park and thus withdrawn from the jurisdiction of the Forest authority. Detailed figures showing the areas set apart, &c, in each land district will bo found in Annexure I. There are large areas of heavily timbered Native-owned land, particularly in Auckland, Rotorua, Wellington, and Southland Regions, which should be earmarked for national timber-supply purposes. Such land is fast being sold to private speculators, to be exploited, and, after deforestation, to add further to the national flood-damage bill. The National Inventory of Forest Resources. A very large amount of work has been entailed in the preparation of this all-important record, and the field staff and draftsmen have worked splendidly, carrying out in addition their ordinary routine duties. Many forest cruises had to be made in order to ascertain the timber stand per acre, and in some cases regions previously almost unexplored have revealed very valuable blocks of timber, such as that valuable and fast disappearing species silver-pine. Forest reconnaissances were made of the whole of the Dominion, with the exception of the absolutely unexplored portions. The data are now being collated at the central office, and the final maps prepared, and will be published during the new fiscal year. Preliminary analysis shows that, of the total land area of the Dominion, 9 per cent, carries merchantable timber bush, while another 9 per cent, consists,of fern, manuka, blackberry, and gorse lands below timber-line. The plans which will supplement the published work will indicate in a broad way the distribution of forest types, and the classification of all land into agricultural, forest, grazing, fern, scrub, and barren lands. Forest Demarcation, Boundary Surveys, &c. Owing to the major attention paid to forest reconnaissances for inventory purposes, and development of the timber-sales policy, this phase; of field-work has not been pushed on during the past year. The; work has been confined to the definition of several boundaries previously in doubt, the survey of some exchanged areas, anel of plantations. As a result of the establishment of plantation boundaries, and the location of roads and tracks, communication on the plantations will be much improved. As the maps prepared during timber cruises are being utilized as the basis for topographic forest maps covering the whole of the- forests, cruisers in every case make topographic plans. The Land Surveyor held a detailed survey instruction course, which was attended by nine rangers.

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Forest-conservation Region. t4 O I DQ h O a >-S 1 P . i i § o - C>2 P4 © c> 02 O d E i p bo be 5« Si « g M g ■so -go I" I" i I g i in O H Auckland Rotorua Wellington Nelson Westland Canterbury-Otago Southland Central Office 1 1 I I 1 I I I 1 1 3 1 11 1 2 2 1 1 2 J 3 7 3 5 3 0 3 I 7 1 2 1 0 21 7 7 6 18 0 24 3 3 I I 1 2 1 1 5 Total 1 1 1 5 2 I 1 20 5 10 31 11 5 1 95

Graphic Expose, State Forest Service Expenditure for the Fiscal Year ended 31st March, 1923.

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Soil and Land Classification. A reconnaissance of some 23,000 acres of State and provisional State forest situated on the watershed between the Rotorua, Thames Valley, and Bay of Plenty districts was carried out. The land, with exception of 741 acres in two small blocks, was declared more suited, to forestry than settlement uses. 3,300 acres in the region of the Mamaku Plateau would be excellent grazingcountry were it not subject to bush, sickness. Through the soil being too poor, and the certainty of rapid deterioration, the remaining 19,700 acres were considered to offer no proposition as settlement lands. The ever-increasing area of lands once forested, some 2,000,000 to 3,000,000 acres, and now deteriorated to the stage where farming will not give sufficient return to meet interest, rates, taxes, cost of working, and living-expenses, makes the classification of our remaining forested areas a matter of pressing importance. Trounson- Kauri Park. The control of this valuable and important scenic park was transferred during the year to the Lands and Survey Department; and, though the Service had initiated measures for the protection of this national monument from fire and exposure, much remains to be done in this direction. 2. FINANCE. The total gross revenue paid into the State Forests Account during the year amounted to £65,067 15s. 2d., of which amount plantations and nurseries contributed £7,413. Compared with last year's figures tho revenue shows the highly satisfactory increase of £34,231 7s. 9d., or 111 per cent., and an increase of 230-3 per cent, over the receipts for 1920-21. State Forest Service expenditure for the year was as follows : —

Annual State Forest Service Expenditures.

Explanatory Notes on Expenditure for 1922-23. Items A, B, C, D, E. —The total management charge for the State Forest estate was at the rate of l-3d. per acre, including a proportion of item A. Item F. —2,862 acres of trees were planted and 44,646 acres of growing plantation protected, compared with 3,408 acres planted and 41,868 acres protected during the previous year. The great decrease of £12,215 in this item is explained by the temporary halt in planting operations, reductions in wages, and general economy. Item G- -Economies made during the year on account of the financial stringency explain the decrease in this item. There are large areas of densely timbered lands which should be added by purchase to the State Forest estate. Item H. —This item includes one grant to a municipality for tree-planting purposes.

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(See Annexure for details.) Item. Fiscal Y 31st March, ! 1923. 'car ended ! 31st March, 1922. I i i A. Salaries B. Management and development of the 7,336,000 acres of State forest C. Forest-fire prevention and patrol (indigenous forest) . . D. Education : Reference library, publications, &c. E. Forest research F. Afforestation : Plantations, nurseries, and general G. Acquisition of indigenous forests H. Grants and miscellaneous £ 30,092 13,799 1,808 574 2,224 35,155 1,064 694 £ 31,194 17,552 1,035 848 999 47,371 7,173 1,410 85,410 107,582

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3. MANAGEMENT. Timber. The exhaustion of supplies of standing timber in the King-country goes on apace, for during the year twenty-six sawmills were either permanently closed or transferred elsewhere. This trend has naturally directed the attention of operators to the State forests in the region, even though these areas are located principally in. the mountainous backbone range. The Service naturally welcomes this interest of sawmillers and prospective operators, " for the resources of the forests are for use, and only those restrictions are applied that will ensure the permanence of these resources." The ripe standing timber is sold at a fair price, and anybody may buy for continuous operation but not for speculation. The policy of the Service is to make the forests of the most use to the greatest number of people, but especially to the man of small means, co-operative working-parties, and to established local industries. It will be seen on examination of the statistics that the sales of ripe timber made during the period show clearly that the smaller operators have been catered for. During the year fifty-two timber-sales totalling 78,830,000 superficial feet were sold for £95,357. The average sale consisted of 1,500,000 sup. ft., valued at £1,834. The smallest sale was 10,600 ft., and the largest 13,191,700 ft. The term of license ranged from three months to six years. The most successful sales of the year were those of two blocks which were offered for sale by public tender. The first, an area of approximately 240 acres, containing an appraised quantity of 2,841,400 ft., was sold for £6,555, an average of 4s. 7d. per hundred for all species, 75 per cent, of which were rimu and kahikatea ; and the second, an area of approximately 272 acres, containing an appraised quantity of 2,876,400 ft., was sold for £5,931, an average of 4s. l|d. per hundred for all species, 80 per cent, of which were rimu and kahikatea. Considerable pressure has been brought to bear on the Service to make larger sales for greatly extended periods in the interest of big groups and speculators, but these representations have been resisted, as the Crown is entitled to a fair return and to the market value for its properties ; and it is not in the public interest that any bolstering up of timber monopolists be encouraged. The universal adoption by the Service of the sale of ripe timber by public offering through competitive bidding and sealed bids has met with general approbation, for this system is fair and just to all; not only does it ensure square dealing, but it guarantees equitable treatment to all comers. It cannot be said that competitive selling has raised the ultimate prices of sawn forest produce to the consumer, for during the year downward price revisions have been recorded throughout the Dominion. The following statement, which exposes the timber stumpage prices paid under competition during the past three years requires no further comment: — Average stumpage price realized per 100 sup. ft. by the State Forest Service for all species except kauri, 1921-23 : 1920-21, 2s. Id. ; 1921-22, 2s. 2d. ; 1922-23, 2s. 5.1. It is interesting to note that competitive timber-selling is, with one exception, now in general use by other Government agencies. For the information of operators, the system of Service timbersales is briefly as follows : The applicant may make inquiry of the nearest Forest- officer as to the location of suitable areas, or he may indicate the general position of the block of timber which he wishes to acquire. If it is desirable to make a sale there, it is examined, a deposit to cover examination charges is made, the area demarcated, and the timber estimated and valued by competent officers. An upset price is then fixed, after all the factors of accessibility, quantity, quality, capital required, cost of exploitation, milling and marketing have been assessed, and allowance is made for a fair operating profit, interest, risk, and depreciation. The block is then advertised and sealed bids invited. (Very small sales may be made without advertisement.) The successful tenderer, after the license has been granted, may commence operations at once. The Director of Forestry at Wellington, or the Conservators of Forests at Auckland, Rotorua, Palmerston North, Nelson, Hokitika, Christchurch, and Invercargill, will be glad to furnish full information regarding desirable timber areas and the conditions of sale. Value of Timber-sales, and Quantity sold, for Last Three Years. Value. Quantity. £ s. d. Sup. Ft. 1920-21 .. .. .. .. .. 17,055 15 0 6,987,569 1921-22 .. .. .. .. .. 38,208 14 5 35,669,888 1922-23 .. .. .. ... .. 95,357 5 11 78,830,823 The increase in the total value of State Forest Service timber-sales from fiscal.year 1921-22 to 1923-23 is 150 per cent., and the increase in quantity sold is 123 per cent.

State Forest Service Timber-sales Statistics, 1922-23: Quantity in Superficial Feet of each Species sold in State Forests during the Year.

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Grazing. Investigations on this subject have been continued this year wherever opportunity has allowed. Low stock markets, especially for cattle, to which most of the grazing is suited, has militated against much extension of this branch of the Service. Grazing which the Forest Service has to offer is practically confined to the actual forest, there being very little open country, speaking generally, as the lands over which the Service has control stop at the forest-edge. Actual grazing within the precincts of the forest, when the production of future timber crops lias to be taken into consideration, is a matter in which great caution must be observed. The adverse effect on regeneration combined with that on the already growing crop shows clearly in direct ratio to the degree to which the forest has been grazed. This is most noticeable upon isolated areas which have been left for shelter and scenic purposes upon settled land. Where these blocks are unfenced, and stock have free access to them, regeneration is practically absent. All undergrowth, which provides the forest-floor is dead or dying, and the adverse effect is shown upon the adult trees by dead upper limbs, and in many cases bhe tree itself succumbs. Fenced areas, on the other hand, appear to be well preserved. The actual extent to which forests can be subjected to grazing, without suffering harm, is a matter that will take some years of study to determine, and for that purpose it will be necessary to fence several representative portions, and subject each to varying degrees of grazing. Returns from grazing during the past year amounted to £3,310 14s. 9d.

The Effect of Grazing upon Beech Regeneration.

In the foreground (unfenced) the floor is bare, inside the fenced area regeneration is good. [L. Cockayne, photo. Game and Recreation. The progress of civilization in New Zealand and the consequent diminution of unoccupied lands is fast centering game and recreational pursuits upon the lands under the control of the State Forest Service. Appreciation of the forests is expressed in the greater use made of them by tramping clubs, tourists, &c, year by year. Probably some thirty thousand persons found relaxation and recreation in hunting, fishing, tramping, and picnicking within the precincts of State forests during the past year. In addition 381 trappers entered the forest for the opossum-trapping season, and some hundreds more in pursuit of such animals as goats, pigs, and deer. Deer. An investigation of the relation of deer to the silvicultural policy of this Service, and to agriculture, has been carried out, and a report dealing with the subject was prepared and brought under the notice of Parliament during its last session (C.-3a, 1922). A summary of this report discloses the fact that, introduced in 1861, with further importations up to 1909, deer have now spread over large areas throughout New Zealand, their present numbers approximating- some 300,000 head. The damage done to agriculture by the unrestricted roaming of these animals over farming country has become such a serious matter that in several cases large areas have had to be abandoned for grazing purposes. In one case 23,000 acres were rendered useless for stock and the owner gave up his lease, while in another instance the carrying-capacity of a run was reduced from 10,000 sheep and 100 cattle to 6,500 sheep. The effect on the indigenous forests is also most serious, regeneration in localities infested by deer being completely ruined, every young tree and plant being eaten bare to the forest - floor. At an estimation of 300,000 head the deer have displaced approximately 450,000 sheep, involving a monetary loss of some £180,000 per annum.

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A conference between the various Government 'Departments concerned was held to consider the question of control, and this resulted in a general conference between the Government Departments and acclimatization societies. As a result of the latter conference the Departments of Agriculture, Tourists, and State Forest Service are now conferring with each acclimatization society separately, with a view of determining the areas upon which removal of protection is necessary, and to what extent the societies can control their herds. Maps showing the requirements of the Government Departments are being prepared by the State Forest Service, and will be forwarded to the various societies. Considerable, damage was done by red deer in one of the State plantations. The control of deer is a matter vital to the progress of silviculture, and its solution is a matter that will be pushed on vigorously. The Opossum. An investigation into the habits of this animal shows that its adverse effect upon silviculture is to be deemed a negligible quantity especially as it is easy to trap or poison, and the skin, being a valuable article, will always pay for the work entailed. During the 1.922 season 381 permits to trap were issued, and 54,357 skins, mostly from State forests, were harvested. Total royalties from skins and licenses amounted to £3.324, and one-third of this, £1,108, was paid into the account of the State Forest Service. The gross value of the skins taken, in their raw state, would not be less than £20,000. Honorary Forest Bangers. During the year thirty-three honorary rangers were appointed, seventeen of these being in the Wellington Conservation Region. These gentlemen, who are deemed to be Forest officers within the meaning of the Forests Act, 1921-22, have co-operated very unselfishly and loyally with the field staff of the Service in the work of protecting the 11,462 square miles of State forest from damage by fire and trespass. The activities of the field staff —both the honorary rangers and the fifty-two forest rangers and guards —consist not only in warning the public against the danger of lighting fires and trespassing, but also in the more positive work of giving guidance and information to hunters, anglers, tourists, trappers, tramping-parties, and others—in short, to encourage and extend the legitimate use of the forests by the people. Both in this phase of the work and in the dissemination of information on the necessity for and the advantages to be derived from tree-planting, the honorary rangers are doing service of the highest order to the community. FoREST-PKOTECTION. Forest-fires. The following is an analysis of all reported forest-fires on and adjacent to State forests during the year , : —

Apart from the new fire-stations and improvements to those previously erected, the main feature in the year's campaign against forest fire has been the creation of thirteen fire districts. In these areas specially subject to danger from fire risk, special steps are necessary to secure the

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Forest Conservation Itegion. Forest Fires : Number, Character, and Area. Money Value of Torest-wealth di ]Vii] dote mber ™ ,Cted, g ber Land Cut-o urned. bi lores.) {{ >ver Land urnocl. icres.) Scrul bui (A( > Land •ned. :ros.) Total burnei (Aci I Area 1 over. :es.) Mere H ihantablo Valuable Ijnber. Hegrowth. r l Y I'otal r alue. SF. Priv. S.F. Priv. S.F. Priv. S.F. Priv. S.F. Priv. S.F. £ l'riv. £ 4,000 S.F. £ Priv. ! £ S.F. £ Priv. £ 4,000 Auckland .. Rotorua .. Wellington Nelson-Marl-borough Westland .. OanterburyOtago Southland 7 2,000 3,042 3,110 960 1,000 200 2,000 510 200 200 5,000 3,042 3 8 2 J 4 100 l.,049| 70 72 960 io 80 2,000 i 10 1 80 2,000 3,200 3,200 3 •• •• 5 '' i i ' ' Totals 13 2 2 9,112 1,105 I 1,319$ I 5,910 1,322 16,407 10 0,080 i 1 i 11 6,080 Koivsl. Conservation Itegion. Co of •ml jcotion, Prevcntioi [, r>cteeti< hi. and Control of S1 ;atc .Forcsi ;s. Orii ;in o: Foresi Kin ss. Fin >atr< :ce. Me: Wages Cost. : Fire Uqulpnxeni Cost. Locomotion Cost. Sawmilling Total Cost. Operators. Trave Ti-iipi Sporb jllers pers, snii'i I, Li , clej n. Opei mdirinfi •ator Unki >. Age] !O\V 11 ides. J: (No. i.) Auckland Rotorua .. Wellington Nolson-Marl-borough Westland .. C!anterburyOtago Southland.. 7 4 2 3 IN I "Sg ¥ £ 9. d. 688 19 9 266 5 7 118 19 6 245 16 4 £ s. d. 0 <J 0 £ s. a, 97 10 0 54 8 7 39 17 11 96 5 3 £ s. d. 786 18 9 320 14 2 158 17 5 342 1 7 s.v. 1 Priv. S.F. 2 9 I Prh S.F. Prlv. 120 2(5 217 18 S.F. 4 i Friv. 2 2 4 18 28 6 10 472 0 0 2 4 0 5 0 0 27 16 0 58 7 4 477 0 0 1 1 92 16 0 ■10 12 4 19 16 11 153 5 3 1 Totals 34 1,913 4 0 48 5 4 f> 2 383 5 2 335 15 2 2,297 4 6

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safety of State forests and plantations. As it would bo futile to proclaim such areas within State forests alone, .adjoining areas under any tenure have had to be included. Upon creation of a fire district, each landowner interested within the area is notified in writing of the closed seasons during which no fires may be lighted except with the written permit of, or the taking of precautions prescribed by, a Forest officer. The gradual extension of the system in districts of great fire hazard, will give the Service complete control over the fire danger, with a minimum patrol staff. One aspect of this question, which has been readily appreciated by the sawmillcrs and settlers affected, is that they are relieved of serious liabilities provided that they comply with the conditions laid down, also that the advantages of the system are not one-sided, as the safeguard afforded is mutual. Even outside fire districts, in many cases settlers intending to bum off land have taken to voluntarily notifying the local Forest officer. In Westland, the sawmillers spontaneously co-operated with the Service by detailing workmen to patrol the logging-tramways daily during the fire season. Calico fire-pre-vention notices have been posted up in the most frequented portions of the State forests and plantations, and in every case have been respected. The total expenditure on fire protection for indigenous forest was at the rate of 6d. per 100 acres. Trespassers. Twenty-six cases of trespass on State forest lands were reported, fourteen of which were foi illegal timber-cutting and post-splitting, and twelve for stock trespass and vandalism. Several convictions were obtained under the Forests Act and State Forest Regulations, and also under the Animals Protection and Game Act, while a few cases of trespass on scenic reserves and national parks were reported to the Lands Department and Tourist Department respectively. The small number of cases reported reflects the growing moral sense of duty in the public mind to safeguard and respect national property. Insect Damage. With the assistance of the Department of Agriculture it has been possible during the year to secure some measure of control over a large number of the pests attacking eucalypts and other trees. In the plantations a Tortrix moth has caused a slight amount of damage. A more extensive control programme is planned for the coming year, as damage by decay fungi and timber insects is becoming more extensive. It has now been definitely established that imported timbers are bringing forest and timber pests into the Dominion, and investigations will probably show that for the protection of our forests and wood-supplies, inspection of all imported timber is an urgent necessity. Wild Pigs and Goats. These are numerous in some localities, and the goats cause great damage by browsing on undergrowth and young forest-trees, and by barking young trees. When the intensive management of indigenous forests is commenced, however, these animals will be easy to control. i. AFFORESTATION AND FOREST-EXTENSION. Despite the drastic reduction in capital moneys available, another year of splendid progress in the quantity of trees planted by the State and by non-State interests is recorded. In the Stale plantations nearly four million young trees (Douglas fir, Pinus ponderosa and P. radiata) were planted on 2,862 acres, at a labour cost of £1 LBs per acre (15 per cent, less than last year). Not only did the number of trees planted by the Service exceed the normal average, but the new method of notch planting has proved entirely successful in reducing formation costs and in enabling concentration of planting effort at the optimum planting-time. The State afforestation activities are now on a more efficient basis, and compare most favourably with any similar organization in the Empire.

Summary of Operations on State Plantations during the Year ended 31st March, 1923.

Forest Plantation. Wliakarcwarewa* Waiotapu*f Kaingaroa Plantation! Puhipuhi Conical Hills Pukeran Dusky Hill Greenvale Gimmerburn Naseby Hanxner Springs Balmoral Raincliff Experimental group j xr , f _ Total Area ; Number oi 1 rees N A planted . planted in Trees, planted. i , 189<!~192:i. i i Acres. Acres. 8.037-00 7,010-00 3,264,275 2,539 14.976-00 1,200-00 3,533-50 565-50 745-75 395,125 307 1,710-75 88-00 46.300 12 2,150-75 6,425 1 2,913-50 71,1)05 3 1,256-50 206-00 253-00 Totals .. 3,784,030 2,862 44,646-25 * Qiecrepanoiea with areas shown in previous repor ■\ Kaingaroa West and Kaingaroa Plains Plantatic lOrtion of the Waiotapu Plantation has now been incli ts were dieoovered <ln ms have been amalgi uded in Kaingaroa PI ring a survey made ii amated as " Kaingarc lantation. i 1922-23. ia Plantation," and a

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Forest-extension. Timber-growing has now become an important branch, of agriculture in New Zealand, for now that timber-growing pays farmers and settlers are taking a much wider interest in it, and the Forest Service through its forest-extension officers and such educational channels as are open to it has overlooked no opportunity of impressing the facts on the agricultural community —with what results, reference need only be made to the graph of tree and seed sales from the State forest-tree nurseries at Rotorua, Hanmer Springs, Ranfurly, and Tapanui.

Graph showing Increase in State Forest Service Sales of Trees and Tree seeds, Period 1919-24.

Tree-plant an d Tree-seed Disposals to Farmers, Settlers, Local Bodies, etc., from State Nurseries, 1919 to 1923.

It is evident that the Forest Service is becoming of real value to the country in so far at least as afforestation and tree-planting is concerned, as numerous requests are being continually received from societies, clubs, unions, Chambers of Commerce, and other bodies for lectures, literature, and information on tree-growing. During the year some sixteen thousand pamphlets, circulars, letters of advice, and instructions were requested and distributed, and hundreds of people attended lectures by departmental officers bearing on practical forestry methods and results. The efforts of the Service are appreciated, judging by the many complimentary letters and by the greatly increased demand on the organization for tree-seeds, information, assistance, and advice. City and Borough Councils, County Councils, and other local-body tree-planting operations have been definitely increased during the year ; quickened public interest and realization of the value and profitableness of tree plantations is responsible for the following results : the City of Auckland planted 125,000 trees; Christchurch, 250 acres; Dunedin, 250 acres; whilst the Selwyn Plantation Board established 440 acres, the Ashburton County 100 acres, and the MacKenzie County 50 acres. Other local bodies which carried out projects were Hamilton, Waimca County, Springs County, &c. It is estimated that 2,000 acres were formed by local-body effort. Several proprietary companies established for the sole purposes of growing and harvesting trees and operating timber-farms carried out planting operations in the North Auckland Province, on pumice plains, and in Nelson and Canterbury. It is estimated that 2,000 acres were established by this means. Individual effort on the part of farmers, settlers, fruitgrowers, and freezing, coal, and dairy enterprises and others was responsible for the creation of 3,000 acres of tree-plantation during the year. In review, the number of trees raised and disposed of by the Forest Service, commercial nurserymen, and others to tree-planters and planted in New Zealand for the year was at least five million, planted on 12,800 acres. At this rate the proportionate responsibilities for the provision of future needs is certainly assured.

.919 .920 .921 922 923 Year. Trees for Planting. 420,412 277,235 520,702 897,552 1,475,581 Forest-tree Seeds. .___ 132 130 240 43(5 746

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CHAPTER IV.-RESEARCH AND EXPERIMENTS. 1. FOREST-MANAGEMENT. Ecological and Silvical Research. These investigations —begun in the kauri forests and the Westland rain forest in 1920, and in the beech forests early in 1923 are revealing more clearly as the work progresses the immensity of our indigenous-forest problems. The broad aim of forest research is to obtain, by means of observation, experiment, repeated tests, and careful records of results and conditions, a sound knowledge of what our forest land can be made to grow most profitably. The ultimate field of silvical, ecological, and silvicultural research is the economic production of wood-tissue. The technique of woodproduction cannot be attempted on scientific lines until technical ecological knowledge is crystallized regarding the optimum habitat conditions for forest-trees, and until silvical or forest-botanical facts are observed, noted, and summarized into guiding principles upon which to base the art and science of silviculture. In furthering the solution of these practical problems valuable progress has been made during the past year. Beech Forests, In February, 1923, Dr. L. Cockayne, F.R.S., &c, honorary botanist to the State Forest Service, commenced a survey of the ecology and silvics of our beech forests, to which we must look for the major part of our indigenous hardwood supplies. During the six weeks' field-work that Dr. Cockayne had accomplished by the 31st March, 1923, many observations were noted in Westland and western Nelson pointing to the sound establishment of important general principles upon which the Service will have to base the technical management of beech forests for sustained timber-production. " It is clear," reports Dr. Cockayne, " that much beech forest has been felled and burned which should never have been destroyed, as testified by the total failure to establish grass, and erosion having in many places become a menace to traffic on important roads. Beech-forest lands on upland slopes should be thrown open for settlement only after the fullest expert inquiry, and the removal of forest on steep slopes bordering on highways should not be permitted without the most careful consideration. "Regarding regeneration, in all classes of beech forest where the old trees are dying out, and where trees have been felled, natural regeneration is in rapid progress ; and while the effect of complete burning is most harmful in destroying the humus and leading to the appearance of a new plant association, frequently mainly bracken-fern, the evidence supplied by these recent studies and of my previous observations indicates that primitive beech forest can be cheaply maintained for a long period as commercial milling-forest. The forest rangers who accompanied me showed great capabilities for the work and were full of enthusiasm and eager to learn."

Natural Regeneration of Beech Forest.

Tho young growth has come away since the aroa was fenced from stock. (Mount Torlcsse, Canterbury, alt. 1,200 ft ) [L. Cockayne, photo.

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Kauri and Northern Forests. Mr. W. R. McGregor, M.Sc, of Auckland University College, reports substantial progress in his researches into the ecology, life-history, light requirements, fruiting characteristics, and other silvical phenomena of the kauri and other trees of the northern forests. The fioristic aspect of forest ecology has again received considerable attention, including the study of the composition of the forest community in its various phases, the tracing of the vegetable succession leading by many stages to the ultimate development of the " climax " forest type, and the fluctuations which this mature formation exhibits in consequence of environmental conditions. "It is only in the light of an accurate analysis," states Mr. McGregor, " of each of the habitat factors that their individual and collective effect in influencing the succession, in moulding the forest type, and in ultimately determining the fate of the formation, can be rightly appreciated. Without such an appreciation, any interference with a natural formation of such complexity is far more likely to lead to irretrievable disaster than to successful economic management. It would be difficult to conceive a case in which the system of habitat factors presented greater complexity than in the mixed forest of New Zealand. With regard to rate of growth, many measurements have been recorded of trees growing under diverse conditions, and, while it is too early to draw definite conclusions, the probability is that as the kauri forests come under management a material increase in the growth-rate of kauri will be secured. The evidence so far available makes it plain that the regeneration of kauri forests for commercial purposes is perfectly practicable. In a period varying from 135 to 150 years kauri, can be grown to exceed 7 ft. in girth. In good localities the growth-rate is distinctly faster. It is proposed to continue the work' steadily during the corning winter, and it is hoped that more financial support will be available this year in order that a comprehensive series of field experiments may be conducted in the spring and summer. The wide field which the investigation opens up, the complexity of the several problems, and the urgent demand for their practical solution, also the continued absolute lack of skilled assistance and uncertainty in employing casual helpers, indicates the difficulties being encountered." The Taxad Bain Forests. Very distinct progress has been made by Mr. C. E. Foweraker, M.A., F.L.S., of Canterbury University College, in his research investigations into the ecology and silvics of the Westland rain forest. The main aim of this research is to discover the processes of regeneration of the taxad forest as a whole, and the time taken by these processes, so that it will be possible to determine the best silvicultural systems to be applied in assisting such processes. During the past year field observations wore made throughout the Westland taxad forest from Hokitika south to the Waiho River. One very important interim conclusion relates to the very potent edaphic factor of silting, which kills kahikatea but aids totara. In Westland, totara stands begin on shingly areas, which are afterwards silted up, followed by the development of higher tiers of roots as the silting-up proceeds. Totara seedlings do not appear on the floor of mature stands, but only in clearings and where the soil is fairly thin or shingly, as already described. This indicates that totara evidently requires full light, and germinates in dry conditions where other forest-trees will not grow and oust it. The edaphic or soil condition is the chief limiting factor in the growth of any stand in Westland, where rainfall, wind, temperature, and genera] aspect are approximately constant, and this is especially so iv the case of that very valuable and fast-disappearing species the silver-pine, which is most prolific in regeneration, and submits well to transplanting. For these reasons, and the fact that owing to its light-resisting qualities when young it apparently succeeds kahikatea and rimu in some areas, it is probable that regulated forests of silver-pine can be easily established, and will, provided its rate of growth is found to be .moderately fast, prove eminently successful. In his third annual progress report Mr. Foweraker states : " It is to be noted with gratification that forest fires are becoming less frequent in Westland. It was quite the usual procedure for a logged area to be swept by fire again and again, thus destroying all chances of active regeneration of a taxad vegetation for centuries." The Growth and Structure of New Zealand Taxads. The subsidized studies commenced at Canterbury College in 1921-22 by Miss Flora B. Murray, M.A., and Mr. E. W. Bennett, M.Sc, under the direction of Professor Charles Chilton, M.A. D.Sc., and Mr. Foweraker, have been continued during the year, and good progress has been achieved. Unfortunately the past season was a bad one for seed-production, so that lack of material handicapped Miss Murray in her laboratory research into the germination and seedling growth of Podocarpus and Dacrydium species. Mr. Bennett has notified interim conclusions on the formation of secondary growth rings almost every year in certain of the taxads, but much verification of this is needed before definite principles can be laid down. When finalized, these conclusions will have an important bearing on the rate of formation of wood-tissue —a matter directly affecting forest-management. Silvicultural Research. In addition to the ecological and silvical data which are being amassed, grouped, and summarized into general principles by trained botanists, as described in the last section, there still remain purely forestry problems such as methods of planting, drainage, optimum number of trees per acre, degrees of thinning, mixture of species in one crop, grazing within the forest, the amount of loss from forest fires, simple methods of cutting to assure natural regeneration, growth and yield of timber,

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felling and extraction methods, &c. Such problems can be solved not by the observation of broad results in extensive areas of forest, or in small patches of forest growth, but by intensive management by forest technicians of definite areas, so that results may be expressed in terms of cost, yield, &c, per acre per annum. All the conditions must as far as possible be under control, and for this purpose ■'ample plots and experiment stations have been established. Forest Experiment Station. Forest experiment stations are as necessary to forestry in New Zealand as are experimental farms to agriculture. Both basic industries, forestry and agriculture, utilize land for the production of raw material necessary for our existence, for to our modern civilization wood is almost as essential as food and clothing. " Forest experiment station and experimental farm both show the means for producing maximum crops of the desired kinds ; both aim at the greatest production of wealth per unit of effort and per unit of land." The need for a second forest experiment station in the North Island is urgent. Both stations will show what tree species to plant, what are the best methods of controlling felling, of disposal of slash, of fire-control and of grazing, and what rate of growth and yield can be obtained from forests managed on a regular sustained-yield basis. At the 5,000-acre forest experiment station at Mahinapua, Westland, the most important timber region in the South Island, preliminary works have been completed prior to the commencement of intensive forest management. Situated about seven miles from Hokitika, on the main Hokitika-Ross Road, the land was originally clad with heavy bush, afterwards worked out by sawmills, leaving extensive patches of second growth suited for experimental purposes. The land is not suitable for settlement. During the year 900 acres have been securely fenced to exclude cattle, 140 chains of creeks cleared of debris, drains have been made, and a shed for storing tools and also a cottage have been erected. Fencing-posts and strainers were cut on the area. A complete forest map on which the working-plan will be based was prepared for a portion of the area. Demarcation of Sample Plots. During the past year fourteen more sample plots were demarcated in the Rotorua, Wellington, and Canterbury-Otago conservation regions, bringing the total number to twenty-seven. Measurements taken early in 1923 on a plot of Pinus radiata, at Tapanui, now seventeen years old, show the average annual volume increment (inside bark) since 1915, to be 398-62 cubic feet per acre. This remarkable rate of growth is exceeded in the North Island, and shows soft-wood growing in Now Zealand to be a much more profitable investment than in Europe, where the average annual increment of Scots pine for the same period is in the neighbourhood of 140 cubic feet per acre for soil of the best quality. The experimental interplanting with exotic trees which was made in 1919 in two indigenous forest sample plots at Mamaku now shows some definite results. The species giving most promise are, in the order named, Lawson's cypress, silver fir, Douglas fir, Californian redwood, and Weymouth pine— more especially the first two. Redwood and Weymouth pine have done well only where the canopy is more open. Norway and Sitka spruces and Cupressus macroearpa show very poor results. Further planting will be done during the coming season with Thuja gigantea and Pinus radiata. All the results, both positive and negative, obtained from sample plots will bo of immense value in the preparation of forest working-plans by the Service when these are commenced for our indigenous bush. Observations are recorded not for one district alone, but for various districts with their differing rainfall and other climatic factors, and these records should be sought after with avidity by private planters, as the,}' form the very foundation of every considered planting plan. Sand-dune Reclamation Experiment Station. At the sand-dune experiment station at the mouth of the Rangitikei River, formed in 1921 for the intensive study of this nationally important problem of reclaiming the 300,000 acres of New Zealand sand-wastes, invaluable results have already been obtained, although the experiments are not yet completed. A meteorological station was installed so that it will be possible scientifically to correlate conditions with those in other sand-dune areas when the fixation of the latter is attempted. It is upon the formation of that essential barrier to further drifting —the littoral sand-dune, the first and principal step in reclaiming seaside sand-dunes —that experimental work has been concentrated during the past year. The basis of these experiments was the experience gained from similar works in other countries ; but owing to the groat cost of erecting palisade fences, the timber for which would have to be brought from a distance, and to the inefficacy of log walls, duo to the particularly severe westerly winds, a cheap type of fence has been made of manuka scrub obtained locally, and this fence has proved more successful than the expensive palisade type. A less successful fence was one constructed of flax-blades and two fencing-wires, this type being reasonably efficacious and cheap, as flax is obtained in far greater quantities in the locality than manuka. During the year 300 lb. of marram-seed were harvested, 60 acres were planted with marram-grass, and 52 acres of sand-flats were sown with marram-seed. Broadcast sowings of pine, broom, and marram seed in mixture has been commenced, the sand surface being strewn with rushes. Experiments are to bo conducted during the coming planting season with a light disc plough, which it will be possible to use on at least half the area to be planted. This will greatly reduce planting-costs. Sowing of tree-seeds on prepared spots has been begun, the most successful species being Pinus radiata, with Pinus pinaster second. Of the trees planted experimentally

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in 1921, also, Pinus radiata is easily the most promising species. The exclusion of stock from the reclamation area for a brief period has had the effect of promoting remarkably abundant natural regeneration of marram-grass and sedges. During the year the sand-dune advisory committee, formed of several local residents, paid a visit of inspection to the station, and to one of these gentlemen the Service is specially indebted for seeds and cuttings provided. Economy in Afforestation. Planting-methods. As a result of experiments conducted in 1920 and 1921 to ascertain the relative advantages of notching and of pre-pitting, all planting in the North Island State plantations was last year done by the notching method, with excellent results. Notching has not proved so successful in the Otago plantations, but 'successful results are anticipated in North Canterbury, where soil and climatic conditions are suitable. Investigations into the necessity in certain districts for clearing scrub prior to planting show that cutting lines may prove the best system. Direct Sowing. Following up the experiments made at Kaingaroa Plantations in 1920 and 1921 with a grain-drill with two disc coulters, a sowing was made in the autumn of 1922 to ascertain the respective possibilities of spring and autumn sowings. The result of this sowing, which was made with Pinus radiata, was very poor, and may be definitely taken as indicating that satisfactory results can be secured from spring sowing only. The trees produced from the previous year's spring sowing were counted, and show 356 and 252 trees to the acre of Pinus radiata and Pinus ponderosa respectively. The plants are healthy and vigorous, and the experiments compel enthusiasm and confidence in entirely satisfactory results when the weaknesses of the present method are eliminated. In order to improve the spacing results —at present not very good —it is proposed to increase the amount of seed per acre and to design a machine with a better arrangement for regulating the discharge of the seed. A spot-seeding experiment was made during the spring with a number of species. In each case this has been a failure, due probably to the drying-out of surface soil which was disturbed when the sowing was made. It is evident that spot-seeding will be successful only when weather conditions are especially favourable, and that it is too riaky for general use. Nursery Practice. Experimental work was carried out in the South Island nurseries, and it was found that sowing in open drills, both single-line and spade drills, was successful. Costs were thus considerably reduced, especially in the saving of much time in the elaborate preparation of seed-beds necessary under the roller system formerly used. The various systems will be carried out again this year on a larger scale, and it is anticipated that it will ultimately be possible entirely to discard the use of scrim covering and frames, and possibly, to a very large extent, the expensive lining-out of seedlings. Seed-collection. During the year collection of forest-tree seed under supervision was carried out by the Service on an extended scale. Experience over a number of years with purchased seeds of eucalypts showed that it was only a chance if these were true to name, and so serious did the position become that it has been customary for many years past to collect under supervision all the species it was possible to grow in New Zealand. Pinus radiata seed purchased from New Zealand collectors has often proved unsatisfactory, both as regards germinative capacity and the virility of the seedlings, being often harvested from diseased or misshapen trees which are almost invariably abnormally fecund. Collection of seed from races of normal, well-shaped, healthy mother trees is essential if seeds of high viability are desired. During the past twenty-four years there has been very considerable loss in the State nurseries and plantations —not to mention the loss to settlers and farmers —through the unavoidable use of seeds of poor quality. Purchased seeds are often overheated during extraction from the cones, thus destroying their germinative power, While it will be still necessary to import several species for some years to come, seed-collecting in New Zealand by the Service is being further extended during the coming season, and a seed-extraction plant is being erected at Rotorua Nursery. It is apparent that neither State, local body, nor private planter can afford to lose one or two seasons in the successful establishment of plantations, through having to incur loss of capital and interest on the original outlay, cost of fresh plants, labour for planting, and delay in harvesting the final timber crop. Spacing-distances. The spacing of trees when forming a plantation has always been a controversial question, depending .upon so many various factors, including primarily the object of planting. The close planting which has been in vogue in the past necessitates early thinnings, which in New Zealand, however, are prohibitively costly, except in the few districts such as in city environs where there is a ready local market for firewood. The spacing-distance has therefore, as the result of observations made in plantations during the past few years, been increased to 8 ft. commencing with the coming planting season.

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Volume Tables and Mill Studies. Timber-volume tables are being prepared for the main commercial species, and, on account of the varying tree-growth conditions in different parts of the Dominion, separate tables are necessary for each conservation region. Tables for rimu and kahikatea in Westland, and for rimu in Southland, have been completed, and will prove invaluable in reducing timber oruising-costs, as well as in other ways. A large number of tree-measurement data have been obtained by the field staff, and to sawmillers who have by their co-operation given every facility to the forest officers entrusted with this field-work the thanks of the Service are due. As technical staff becomes available, the delay in the compilation of curves and tables from the field data will be speedily overtaken. Data in connection with mill studies have also been obtained, and the final tables will be of great benefit to buyers of standing timber. In New Zealand it has always been the rare exception rather than the rule for sawmillers to make accurate investigations into the actual quantity of sawn timber ultimately produced from the standing-tree —investigations of a necessarily slow nature. In other countries the conclusions obtained from mill studies have invariably led to the installation of better appliances for the saving of waste in all phases of conversion from the tree to the board. If this result is obtained in New Zealand the work will have been worth while, for closer utilization must be the slogan with which to combat our vanishing supplies. 2. JfOREST-PRODUCTS INVESTIGATIONS. The average New-Zealander usually looks askance at the secondary timbers of the Dominion. That prejudice is probably due to lack of knowledge regarding the exact properties of these timbers. Only by research and experiment may their true value and suitability for various uses be demonstrated. For this purpose the mechanical, physical, and economic properties of the whole of the secondary timbers are being investigated by the Forest Service in co-operation with the Engineering Department of the Auckland University College. This is the beginning of the work. Once established, these properties enable the value of any timber for any purpose to be judged. If at all suitable, samples of the product arc constructed, and tested in the laboratory and in actual service. Where the results are satisfactory the information is broadcasted to the public. A bulletin dealing with the use of each timber will, be issued. Two have already been completed and will be published shortly- viz., Bulletin No. 3, " Utilization of Tawa " ; Bulletin No. 4, " Utilization of Silver-beech." A special pamphlet dealing with the utilization of silver-beech was prepared by the Forest Service for the Southland and Otago Co-operative Timber Company (Limited), from whom copies arc obtainable. Several timbers were tested for the manufacture of wooden matches, and white-pine was found very suitable for this purpose. Had the work been instituted five years ago an industry might have been saved to New Zealand, for in 1917 a complete wooden-match-making equipment which formerly used imported wooden splints from Russia was transferred from. Wellington to Melbourne. It is to be hoped that the excellent qualities of the white-pine will ensure the re-establishment of the industry within the near future. The Imperial Institute tests (1921) dealing with the manufacture of wood-pulp and paper from New Zealand timbers were supplemented during the year by a further scries of tests carried out by the Forest Service in co-operation with Messrs. Boving and Co. of London. These tests demonstrated beyond all doubt the exceptional value of rimu and white-pine for the manufacture of the highest class of papers. The investigation is of far-reaching importance : in a typical group of fifty-three sawmills in Westland there an; available per day 164 cords of sawmill waste, the greater part of which can be turned into wood-pulp and paper. The proposal warrants the consideration of financial interests both in Now Zealand and abroad. Rata has been proved superior to, and mangeao at least equal to, tallow-wood and spotted gum for cross-arm construction. Other timbers, including red-beech, hinau, and various hardwoods grown on Forest Service plantations, are being tested. An interim report- Circular No. 6, " Test of Crossarms " —dealing with, the result of this work, is available for distribution. Mr. H. D. Tiemann, M.E., M.F., Physicist and Dry-kiln Expert to the United States Forest Service, visited New Zealand during the year and investigated the utilization and kiln-drying of New Zealand timbers. As a result of his visit several kilns were redesigned and their operation much improved. Mr. Tiemann's report, entitled " The Bettor Utilization and Kiln-drying of New Zealand Timbers," will shortly be available as Bulletin No. 2of the Forest Service. It draws attention to the huge loss due to the use of imperfectly seasoned timber which is so susceptible to dry rot and attack by borer, &c. This destruction may be avoided by the use of timber thoroughly air and kiln dried. In kiln-drying every timber requires different treatment, and before any substantial progress can be made it will be necessary for the Forest Service to instal an experimental kiln for the purpose of determining definite drying schedules for use by commercial kiln operators. It is hoped to commence this project during the coming year. A. series of tests and experiments to discover effective methods of preserving posts, poles, and outdoor-construction timber against decay was commenced during the year. Satisfactory methods for the treatment of a large number of timbers have been developed. The treatment of hardwood poles is a problem of great importance, and a satisfactory solution is already in sight. Many telegraph and power-transmission line poles for which a life of sixteen to twenty years was claimed are now being replaced at the end of an eight-year period due to the decay of all sapwood. The suggestion has been made that the difficulty can be avoided by chopping off all sapwood,

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and in increasing the diameter of the heartwood bole ; but since the sapwood is as strong as the heartwood any method which will give the former the same durability is much to be preferred. With the co-operation of the Government Statistician it has been possible for the first time in the history of the Dominion to make an accurate survey of the wood-using- industries. The results of this survey are being incorporated in a report entitled " The Wood-using Industries of New Zealand." Additional statistics regarding the production of timber have also been secured by the Government Statistician, and are incorporated in the report on the timber trade dealt with in Chapter V. A display of New Zealand timbers and wood products was exhibited in conjunction with the New Zealand Federated Sawmillers' Association at the Christchurch Industrial Exhibition. A large number of inquiries were received regarding the use and substitution of New Zealand timbers for imported woods. Over ten thousand visitors inspected the exhibit, in connection with which a publication—Circular No. 1, "Our Forest Resources"— dealing with the uses of New Zealand timbers was issued. Copies are still available for distribution. The Branch of Forest Products is well equipped to render advice on plant layout ar.d maclineiy to manufacturers and consumers of timber, and the public is invited to take full advantage of this service. Key to the Identification of New Zealand Timbers. Professor H. B. Kirk, of Victoria University College, has made steady progress in the highly important research, which he is voluntarily pursuing, of the macroscopic and microscopic structure of New Zealand woods. Professor Kirk states that the preliminary work of dressing samples of the coniferous and taxad woods is nearly completed, and microscope preparations have been made of the majority of these. In the .case of the totaras alone, several scores of preparations have been made. When this preliminary portion of the work has been completed, the final task of determining diagnostic characters will enable the identification key to be drawn up. The Forest Products Branch of the Service is continually receiving wood samples for identification, and the results of Protessor Kirk's research when published will prove of the greatest value. I!. FOREST ECONOMICS. The first duty of the Forest Service to the Dominion is to ensure a permanent timber-supply. To this end it is necessary to establish a balance between the timber sawn and the timber produced by the forest. This year a national Forest Inventory has been completed. The forests available as a capital resource lor the production of timber are now known, and investigations to determine their rate of growth are proceeding apace. With these completed it will be possible to shape a forest-management policy which will ensure stability to the timber industry and avoid the dangers and disasters of a wood famine. That policy will demand the use of secondary timbers, more efficient manufacture and seasoning of wood, and the elimination of waste. The work has already begun : the utilization of beech and tewa for building, interior finish, and furniture, of rata for cross-arms and coach-building, of whitepipe lor wooden-match manufacture; and of rimu and white-pine for wood-pulp and paper-making, has been demonstrated. Band and gang saws, which produce only one-third of the sawdust made by circular saws, grow in popularity. Man}- operators have installed sawdust-burning furnaces, saving their slabs, off-cuts, &c, for manufacture into fruit-boxes, broom-handles, turnery products, and small-dimension stock. Several dry kilns have been redesigned and their operation improved. A clothes-peg factory in conjunction with a handle- and dowel-manufacturing plant has been erected in Southland and is now in operation, and a wood-waste exchange has been established for the purpose of placing manufacturers and consumers of small-sized timber, which it is possible to manufacture from waste, in direct communication with one another. The world-wide depression in the timber industry continued throughout the early part of the year, but markets are now becoming more stabilized, and the prices of overseas timber are slowly mounting. In spite of their long sea-carriage, Canadian, American, and Baltic timbers are still able to compete with New Zealand woods on the Dominion and Australian markets. Cheap timber is (inly assured to a community by healthy competition between various manufacturing regions. Not only does such competition prevent the creation of a monopoly, but it also encourages better manufacture and utilization and less waste. It is a tribute to the technique of the Canadian manufacturers that they have been able to supply at a competitive price hemlock boxes for the New Zealand export butter trade. New Zealand white-pine is infinitely superior to hemlock for this purpose, and it will no doubt again capture the greater part of this most important market.

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CHAPTER V.-GENERAL. Report of the Timber Trade for the Year ended 31st March, 1923. Production. The following table shows the reported output in superficial feet of the various species of timber from New Zealand sawmills during the years ended 31st March, 1920, 1921, and 1922, and has been compiled from figures supplied by the Government Statistician.

Reported Production of Sawn Timber by Species.

The for the year ended 31st March, 1923, is approximately 340,000,000 sup. ft.

Graph showing Production of Sawn Timber for Period 1920-22.

Of all industries engaged in the development and exploitation of natural resources, the timber industry is one of the few whose company shares as publicly quoted on the Stock Exchange have shown a constant appreciation since 1914. Production-costs and selling-prices increased enormously during the war period, but whereas the former have since fallen appreciably timber-prices are still high. These facts have combined to cause a large increase in the number of sawmill operators whose mills are now estimated to have a capacity of 660,000,000 sup. ft., per annum, or approximately twice the country's requirements. This situation invariably arises during periods of peak prices, and only with a return to normal values may the industry expect that stabilization so necessary for its welfare and continued prosperity. (In 1915—16 the sawmills of the United States of America were estimated to have a capacity of 120,000,000,000 sup. ft. or three times the country's normal demand of 40,000,000,000 sup. ft.) The financial depression of 1921 continued during the early part of last year. The most serious disturbance of normal trading conditions occurred on the west coast of the South Island. Sawmillers who normally ship large supplies of rimu and white-pine to Australia from this district were unable to compete with Canadian, American, and Baltic timbers on this market. A gradual improvement in trade is noted since June, 1922 : whereas only twenty-seven mills were reported operating in Westland at the 30th June, 1922, there were fifty-seven reported working on the 31st March, 1923, out of seventy-eight mills in existence in the province. Except for export mills and those supplying local rural demands, production is almost back to normal. A graph has been prepared from data in "Statistics of New Zealand" for the years 1916 and 1919-22 to show the trend of regional output of sawn timber from logs. The statistics are compiled for provincial districts, which, however, practically correspond with the forest regions. Auckland and Rotorua Regions combined (i.e., Auckland Province) atill occupy the premier position, but their

Species. I 920. 1921. 1922. I I Kauri .. Rimu .. WMte-pine Totara .. Matai .. Beech .. Pinus radiata Other .. Sup. ft. 26,094,822 141,825,326 81,369,931 20,507,162 17,761,542 3,435,356 5,867,951 4,213,862 Per Cent. 8-67 47-10 27-03 6-81 5-90 114 1-95 1-40 Sup. ft. 20,393,788 153,529,022 73,168,750 17,984,189 21,329,043 6,348,594 9,711,918 5,202,530 Per Cent. 6-63 49-90 23-78 5-85 6-93 2-06 3-16 1-69 Sup. ft. | Per Cent. 21,435,728 I 6-81 157,345,928 49-96 68,486,633 21-74 19,570,561 6-21 24,830,368 7-88 4,863,184 1-55 10,815,485 3-43 7,624,423 2-42 Totals 301,075,952 100-00 307,667,834 100-00 314,972,310 100-00

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percentage of the total timber sawn has decreased from 496 per cent in 1916 to 42 per cent, in 1922. Wellington (comprising Taranaki, Hawkc's Bay, and Wellington Provinces) has succeeded Westland as the second-largest sawn-timber-producing district, but with the approaching completion of the Otira Tunnel the isolation caused by the long sea freight to Canterbury, the principal market, will be removed, and the timber trade in this region will develop accordingly. Among the minor sawmilling districts, Nelson Region (comprising Marlborough and Nelson Provinces), with its extensive hardwood forests, is the most important.

Graph showing Production of Sawn Timber in the various Forest Regions for the Years 1916 and 1919-22.

Export. The quantity of timber exported during the year ended 31st March, 1923, was 45,280,536 sup. ft. valued f.o.b. at £490,954, compared with 49,070,290 sup. ft., valued at £530,087, exported during the year ended 31st March, 1922. Australia, which forms the chief export market for New Zealand timbers, bought heavily of Canadian, American, and Baltic wood during the year, with the result that the total exports of timber from the Dominion decreased approximately 7-7 per cent, in quantity compared with those for the previous year. On the other hand, white-pine, in spite of the apparent disinclination of Australian importers to buy, shows an increase of 087,175 sup. ft. over the previous period. There was an average increase in value of almost Id. per 100 sup. ft. for the same period; and whereas rimu, beech, and " other " account for the total decrease in quantity, these three timbers exhibit a marked increase in value of 3§d., Is. 3d. and (is. per 100 sup. ft. respectively. Kauri increased in value by 2s. 10d. per 100 sup. ft. compared with that exported during the year ended 31st March, 1922.

Graph showing Exportations for Period 1921-23.

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Import. During the period under review 30,351,696 sup. ft, of timber, valued at £488,095, were imported, compared with 37,410,358 sup. ft., valued at £673,023, imported in the year ended 31st March, 1922. This represents an average decrease in the c.ii. value of 3s. 10d. per 100 sup. ft. The heavy demand created for ironbark in 1921-22 by the activities of Bloctric-power Boards in transmission-line work, and of Government and local authorities in heavy construction, was maintained during the past year. Import values, however, show a considerable fall of approximately 19 per cent, on those for the year ended 31st March, 1922. Stricter specifications now being demanded by consumers of this timber may result in an increase in price dtiring the present year. Jarrah also decreased in import value from 41s. 3d. to 255. 2d. per 100 sup. ft. While importations of Douglas fir decreased by 3,297,172 sup. ft. compared with those of the previous year, the value increased by Is. Id. per 100- sup. ft., reflecting the gradual and firm upward movement in Douglas-fir prices in Canada and the United States of America. The most interesting importation of the year was that of approximately 1,000,000 sup. ft. of hemlock shooks from Canada for the manufacture of butter-boxes. It is not considered, however, that this timber is nearly as suitable for this purpose as our splendid white-pine, and it is confidently anticipated that with adjustments in prices of the local article the latter will easily maintain its supremacy.

Graph showing Importations for Period 1921-23.

Markets and Prices. There has been a marked decrease in the cost of production during the past year, mainly accounted for in labour values and efficiency and in the fall in cost of all mill-supplies. In the North Island, where the relations between operator and consumer are established on a firm basis of direct trading, there has been some slight alteration in the selling-price of the product of the log in sawn timber. The poorer grades have been reduced by 2s. per hundred with the commendable intention of encouraging their use. Operators in the North Island have not felt the slump to the same extent as in other parts of the Dominion, as the local markets, although slack, have enabled the millers to keep going by slightly reducing their output. Nearly all the millers do a fair proportion of trade at retail prices. In Southland, to a certain extent, the same conditions obtain. There has been a stagnation in. the demand, and the selling-prices have been varied for different grades, but the average price over the whole has been maintained. Direct trading with the consumer forms a very large percentage of the operator's business in this region, and a good proportion is sold at retail rates. Westland operators are in an entirely different position. With the large increase of sawmills brought about by the heavy demand from Australia, the cutting-capacity is now in the neighbourhood of 100,000,000 sup. ft. per annum. Foreign timber landed in Australia at a c.i.f. price not more than the f.o.b. price of the New Zealand product has practically ousted the; latter from the Australian market. Attention had, therefore, to bo turned by Westland producers to New Zealand markets, the principal of which for Westland being Canterbury, where the retail trade is in the hands of established timber-merchants. Owing to the nearness of the completion of the Otira Tunnel, and the anxiety as to the result of the opening-up of the Westland timber-supplies to a possible direct

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trade with the Canterbury consumer, the merchants have not ordered except for immediate use, and stocks have been reduced —in fact, in some cases disposed of altogether. The result is that, although building is fairly brisk, the market is unstable. At the present time, it is reported that the average price f.o.b. Greymouth and Hokitika has fallen by 25., and the retail price in Christchurch is lower by 4s. per 100 ft. Trade-extension. A problem of paramount importance faces the timber industry to-day. Large quantities of imported timber are being used in the Dominion not only for specialized work where; no native wood is commonly available, but also in competition with such famous timbers as rimu, &c. Why ? Can the situation be remedied ? The plain fact is that foreign producers are often able by better manufacture, seasoning, utilization, and knowledge of an often inferior wood to market a timber superior to that supplied by the local sawmiller. The imported timbers are, moreover, sold at a competitive price; even after a long sea carriage up to fourteen thousand miles. It is commonly supposed that this is possible only by the employment of sweated and Asiatic labour. This is a popular mistake. The conditions of sawmill labour in Canada, United States of America, and the Baltic, compare very favourably with those in New Zealand. But whereas the foreign producer so manufactures and seasons timbers from every species in the forest that every stick may find an economic use, the New Zealand sawmiller is frequently unable to do so. He has, however, made very commendable efforts in this direction, as, for instance, in endeavouring to stimulate the use of lower grades by price-reductions. But low grades will never be attractive at any price unless there is real value in the product. Low grades require the most careful manufacture and seasoning—infinitely more so than the high grades. Unless this is recognized and the sawing and drying of the timber more carefully watched, the effort is doomed to failure. No architect or engineer will allow lower grades than are at present specified to be included in building codes unless protection is given the wood by thorough seasoning and by rigorous cleaning-up of timber-yards, many of which harbour decay fungi, borers, and other wooddestroying insects. Only then will the true value of the timber be obtained. Wood for practically any purpose may be supplied from the New Zealand forests. While it is often possible to persuade consumers to consider the substitution of imported timber by local woods, it is usually found that no stocks of seasoned material are available. This applies not only to secondary timbers, but also to the main species, silch as rimu, &c. The Forest Service is agreed on the principle that it is the natural and economic function of the sawmiller to thoroughly dry timber for use. It is a matter of national concern that so much improperly dried timber is used in buildingwork, and the life of structures consequently decreased. The efforts of the Forest Service arc directed towards securing the economical use of the forest, a measure of considerable importance to the sawmiller, and any operator who desires assistance in this direction is invited to call upon the Service for advice and information. Constant inquiries are received for supplies of the secondary timbers, and millers with stocks ready for disposal should communicate with the Branch of Forest Products. The attention of millers is drawn to the value of northern rata and mangeao for cross-arm purposes. Government Departments, Electric-power Boards, and other users of cross-arms should be approached regarding future supplies. The Forest Atlas. Lithographing of the eighty sheets covering the most important forest areas of New Zealand was completed during the year, and the sheets were distributed among the various regions. The preparation of the 20-chain maps is being pushed on in order that correct detail maps on a useful scale may be available at an early date. A special set of maps comprising the Forest Inventory were finalized on a 16-mile-to-the-inch scale, while a 20-mile and an 80-mile scale plan showing the forested regions of both Islands were lithographed and found most useful. Other work produced by the atlas staff during the year consisted of 1,249 plans, maps, tracings, and map-sheets. Photographic records have increased by the addition of 900 negatives and 300 lantern-slides, while further cinema-film is in course of production. Educational. The particular value of this work is becoming more manifest in the increasing public interest being aroused with regard to forestry matters. Afforestation posters, fire notices, and leaflets have all done their share towards it, while very definite results have been obtained with the aid of the various circulars and bulletins issued by the Service. Of the latter the most important published during the past year were " The Progress of Forestry in New Zealand," and " Our Forest Resources." The approximate number of publicity sheets, circulars, &c, distributed, amounted to 68,630. The work of the Service has been generously assisted in this matter by the Press of the Dominion, which has continued to keep public interest centred on the great national questions involved in the carrying-out of a successful forest policy. Forest Service Reference Library. The reference libraries at the central office and at regional headquarters have proved of great assistance to all officers in their work, and have been strengthened during the year by the addition of 665 works, including books of reference, technical bulletins, &c. Reports of forestry activities have been exchanged with practically every other country interested in forestry. The total number of works filed is now 2,722. The facilities offered by the reference libraries are at the disposal of the public.

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ANNEXURES.

ANNEXURE I. —STATE AND PROVISIONAL STATE FORESTS AND FOREST RESERVES.

Permanent and provisional State forests and forest reserves under Service control comprise 1T06 per cent, of the total area of the Dominion. Total area of State forest and provisional State forest and forest reserves at 31st March, 1923, 7,336,010 acres.

ANNEXURE lI.—REPORT UPON STATE FORESTATION OPERATIONS IN THE NORTH ISLAND. (H. A. Goodie, Conservator of Forests, Rotorua Conservation Region.) Extension of Plantations. The extension work done during the year is the most successful for many years past, and, although not a record as regards the new area planted, it is not far short of last year's figures. Weather conditions were entirely favourable, with the result that the death-rate does not exceed 8 per cent. An area of 2,539 acres was planted with Douglas fir, American yellow-pine, and Pinus radiala (insignis), thus bringing the total land planted in the North Island to 31,223 acres. All the planting was done by the notching system, with the result that the labour cost per acre was £1 18s., as against £3 9s. for the previous year, a saving of 45 per cent. The cost per acre, including trees, was £4 55., a saving of £1 per acre on last year's cost. The saving would, have been much greater but for the fact that a large number of the trees planted were three-year-old, and thus of higher value than those usually planted. Tree-growing. The growth of nursery stock has been much below the average; this year, owing to the wet and unusually cold summer. The trees are, however, of good quality, with the exception that the eucalypts as a class are undersized. The number raised from seed during the year is 6,225,000, thus bringing the total raised to date in Rotorua Nursery to approximately 82,000,000. The output for the year totalled 4,280,000, while to date 72,816,000 have been disposed of. There lias been no damage done by grass-grub during the year ; the trees are all healthy and well rooted. Owing to the great daily range of temperature commonly experienced in this district throughout the year difficulty has been experienced in growing many of the species of eucalypts which are in demand for farm and local-body planting schemes. It has been found that most of the valuable species arc very sensitive to these changing conditions, and that it is impossible, except during unusually mild seasons, to grow these to a satisfactory size by the usual outdoor method of culture. It will be necessary, therefore, in order to meet the increasing demand for these species, to resort to propagating them under glass and afterwards hardening the plants out of doors. The necessary propagating-house will be erected during the year in time for the spring sowing. Sale of Trees an l> Tkee-seeus. As will be seen from the statement of revenue below, the sales of trees and tree-seeds was increased about 100 per cent, over last year's figures. The orders for trees totalled 1,120, while the trees sold numbered 1,015,164. Tree-seed orders were received to the number of 865, the amount of seed sold being 6951b. These figures give some idea, of the extent to which this branch of the

iRBA IN ACKEI i at End of Fiscal Year, 1923. Land nistrict. Area in Acres at End ol Year 1922. Fiscal Changes in Area during the Fiscal Year 1922-23: Net Increase in Acres. Area in Acres at End of PI 1923. iscal Year <* gge £gflgs S H? +, I State Foi-est. I £™1 Forest Reserves. State Pro ™j° nal 1 Forest Forest. °™™ t _ Reserves. State Forest, Forest Reserves. oj.2 02 & lilll *gt-] B KB OS N. Auckland. . Auckland Hawke's Bay Taranaki Wellington .. Nelson Marlborough Westland Canterbury .. Otago Southland 98,981 145,845 199,653 69,500 51.0,790 19,955 81,743 2,178 290,202* 128,280 136,306 16,090* 587,813 53,735 42,639 27,638 1,984,543 119,631 1,721,471* 3,193 2,316 16,921 40,811 9,091 8,470 6,194 119 3,504 21,202 3,193t 5,383 I 34,544 3,504 5,383 61 65,860t 117,070 502 1,826 l,381t| 96t 9 I 499 05,860f 1,381-f 9 | 102,485 151,228 199,653 69,500 450,930:1: 19,955 80,362 2,187 290,202 128,280 136,734 37,292 622,357 53,735 42,639 144,708:]: 1,986,369' 119,535 1,721,970 2,316 16,921 40,872 9,593 8,470 6,194 119 3-1 8-5 4-9 6-3 8-6 42-7 7-4 44-6 3-0 4-9 90 317 ', 132 522,473 543 .'. l,288f 428 52,544 428 315,844 575,017 543 Totals .. 11,689,433 5,393,165 87,658 57,917f 226,301 2,630f 1,631,516 5,619,466 85,028 >0 acres; irovisional * Error in li State forest, 1,350 ist year's figures, acres. -|- Net decrease. t Withdrawal for National Park : Sti i0 forest, 66,01

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service is appreciated by the private tree-planter. Despite extensive and widespread advertising carried out during the year, the number of orders received and analysis of the sales made in various districts show that there are possibilities of still greater extension. Many appreciative letters were received commenting upon the quality of the trees and seeds supplied, and the success obtained by many planters with trees supplied (luring the previous season is likewise known to be very satisfactory. Numerous inquiries for advice were answered during the year, and a large number of specimens were identified for applicants. Revenue. Following are particulars of revenue from nursery and plantations received during the last two years :- - 1922-23. 1921-22. £ s. d. £ s. d. Sales of trees .. .. .. .. 3,121 7 7 1,530 13 3 Sales of tree-seeds .. .. .. .. 574 16 2 370 .16 7 Sales of lirewood .. .. .. .. 2 0 0 2 0 0 Sales of posts, &c. .. .. .. .. 0 12 0 Grazing .. .. .. .. .. 207 15 9 150 10 10 Rent of departmental cottages . . .. .. 374 8 9 380 6 9 Sundries .. . . .. . . .. 130 11 4 11 8 9 £4,410 19 7 £2,446 8 2 Fire Protection. Organization for the prevention and control of fires has now reached a high state of efficiency, and in addition to the previously existing methods of control two fire districts have been declared. The past season has not, however, been a dangerous one, for frequent rain was experienced throughout the summer, and it was only during the month of October that the weather conditions were such as to cause any anxiety. During that month conditions prevailed, accompanied by high wind,

Guarding the State Forests from Fire: A Lookout Station overlooking Kaingaroa and Waiotapu Plantations.

[State Forest Service, -photo. and. several fires which occurred in unoccupied land outside plantation reserves had to be extinguished in order to prevent their becoming a danger to the plantations. Fire-protection measures, including lookout, patrol, and fire-breaks, cost on an average 3s. 4d. per acre over the 30,023 acres planted in the Rotorua conservation region. Thinning Plantations. A considerable area of the plantations now require thinning, and it is intended to commence this work at an early date. The material will be sold on a stum page basis, and the felling done by the purchaser after the trees are marked by a ranger. Tree-planting Proposals tor 1923-24. Preparations for planting an area of 3,800 acres with 2,600,000 trees are completed. Planting will be commenced early in the year.

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ANNEXURE HI—REPORT ON STATE FOREBTATION OPERATIONS IN THE SOUTH ISLAND. (W. T. Mobeison, Conservator of Forests, Canterbury-Otago Conservation Region.) Extension of Plantations. The major portion of tie work of the past year has been confined to maintenance of plantation areas : this was duo to the need for stringent economy. A very small planting programme was carried out, the total area dealt with being 323 acres, of which 307 acres were on Greenvale Plantation, ■12 acres at Naseby Plantation, and the remainder at Balmoral. A fair amount of blocking-up was carried out at each of the above plantations, and trees to the number of 114,125 were utilized for this purpose. On the whole, however, definite progress was made, and the stocks of trees and seedlings in nurseries was materially increased, costs.of production were reduced, and a general advance made in sales of trees, improvement of methods, &c. Trer-gbowtng . Nurseries. —Although a dry spell was experienced during the planting season, the remainder of the year has been exceptionally wet. This has had a good effect on the growth of established trees in plantations, and in two cases on nursery stock (Naseby and Hanmer Springs). At Tapanui, in the south, however, where there has been a superabundance of rain, there has not been the normal development of the yearling stock. Of a total rainfall of 38-67 in. 22-58 in. fell during the period from November to March. Twenty-four days of rain were recorded in February and twenty-one in March, both of which months are usually considered the best growth months of the year. Consequently there was an almost complete absence of sunshine and warmth, so essential to young nursery stock. Excepting the lack of development, the general results there are good, and the total stock in the nursery amounts to 3,457,920 trees, of which it is estimated some 1,280,000 will be available for transfer to State plantations, farmers, settlers, public bodies, &c. Of the above total, 1,993,750 were raised this season. Almost all species sown gave good results. A small forest nursery was established at Naseby Plantation by transferring seedling stock' from the abandoned Ranfurly Nursery, and the major portion of these have done well, the number available for distribution being 300,000. Also, 41 lb. of seed was sown thin year, resulting in a crop of 275,500 strong seedlings. About 97,000 of this number are Pin/us radiata, which, with v, possible balance from this year's distribution, will represent an anticipated output for next year of approximately 100,000. The balance of the above total will require to remain in seed-beds till the following season. At Hanmer Springs Nursery the year's results are excellent: there has been a large increase in production and a cheapening of raising-costs. The total number raised from, a sowing of 414{1b. of seed this season was 1,78.1,900. All lined-out stock has made great progress, and the seed-sowing operations could not have turned out better. The total stock in this nursery is now 3,093,400, of which some 1,011,000 are available for distribution this season. The total stock raised in the three nurseries during the, year amounts to 4,051,150. The total number of trees in stock is 7,131,870, and the estimated output for the year 2,501,000, or sufficient to plant 3,800 acres at 8 ft. spacing. Plantations. —Planting has been fairly successful and the percentage of failures small. Pint's radiata shows the highest, as usual, being about 15 per cent. ; 1 In , percentage of failures in other species being about 5 per cent. Douglas fir and P. radiata were the main species dealt with, P. ponderosa, P. Laricio, and P. Banksiana being used chiefly for blocking up. General development and growth in plantations has been very good, and the trees are free from disease, although spruce almost throughout the South Island have suffered from attacks of the spruce-aphis. Fire Protection. Good work was done in improving fire-breaks. Lookout men were again on continuous duty at the fire-stations from the Ist November to the 31st March, and the various boundaries were patrolled on Sunday:! and holidays, &c. The districts surrounding the plantations at Greenvale, Dusky Hill, Conical Hills, and Pukerau were proclaimed fire districts during the year, and this measure should place our plantations on a, very secure footing as regards fire danger. Labour. Labour during the year has been plentiful, the restriction in plantation operations adding to the supply. Unemployment relief works were undertaken by the Public Works Department towards the latter part of the year, and tree-planting by this means was carried out at Oamaru and Waimakariri. The latter, being on sand areas, was more in tin , nature <>i reclamation work, a large quantity of marram-grass also being planted. Grazing by Sheep on Plantations. The grazing of fire-breaks by sheep at Conical Hills Plantation was again carried out with fair results. The departmental flock, which had been disposed of last year, was replaced by a new flock, and these with their lambs have now been sold at a good, profit. It is not intended, however, to renew the flock this year, as there has been a difficulty in carrying out the poisoning of rabbits while the sheep are present.

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Sale of Trees to Farmers and Local Bodies. There was considerable activity throughout the South Island in tree-planting, and the total number of trees distributed to settlers and public bodies almost doubled that of the previous year. The total number of trees .sent out during the year was 458,467, making the total number supplied to date 1,315,823. The number of private individuals supplied was 476, and public bodies 38. There was also 51 lb. of tree seed sold. The main demand was again for Pinus radiata and Cupressus macrocarjm. While there have been one or two isolated complaints regarding results of planting, there have, on the other hand, been many excellent reports as regards both packing, condition of trees on arrival, and results of planting, Revenue. Revenue derived from South Island State plantations and nurseries during the year is as follows : . 1922-23. 1921-22. £ s. d. £ s. d. Sales of trees .. .. .. 1,759 9 G) „„ .„ „ Sales of tree-seeds .. .. .. .. 55 1910) <->-'»' - Sales of firewood .. .. .. .. 15 2 li| 119 0 Sales of poles, stakes, &c. .. .. .. G 18 8) Grazing .. .. .. .. .. 41 10 0 11 0 0 Sales of sheep .. . . .. .. G62 13 1 353 17 4 Sales of wool and skins .. .. .. 99 0 9 68 14 8 House rentals .. .. .. .. 27116 10 404 10 8 Sundries .. .. .. .. .. 29 0 1 309 9 11 £3,001 11 3 £2,012 3 0 Disposal op Ranpurly Nursery. This property, on which operations were discontinued during the year, has been kept in fair condition, and it is hoped that a sale will be effected during the coining year. The care of the property has been handed over to the Lands Department. Tree-planting Proposals for 1923-24. The proposed operations for the coming year comprise, a planting scheme of approximately 1,100,000 trees on an area of about 1,400 acres. Of these 800,000 trees will be planted at Hanmer Springs and Balmoral Plantations, and the remaining 300,000 at Greenvale. Very little preparation will be necessary at Balmoral, but at both Oreenvale and Hanmer Springs a fairly large amount of fencing will be necessary, and at Hanmer there will probably be a fairly large clearing charge. Transfer of Regional Headquarters. The removal of Canterbury-Otago regional headquarters from Tapanui to Christchurch, which took place in March, has already resulted in bringing the Service into much closer contact with the public, and great extension of afforestation is confidently anticipated. The number of callers in search of information relative to tree-planting exceeded in the first six weeks the number for a year at Tapanui.

ANNEXURE IV.—SUMMARIES. Summary of Operations in Nurseries during the Year ended 31st March, 1923.

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Total EX] pendlture. Trees in S urseries. Name of Nursery. Estimated Trees raised during Year. Output Oi f Trees. Estimated Number in N urseries ut 31st March, 102:;. Tree-growing. Maintenance. Buildings, Ac. Total. Trees sent to Outside Places during Year. Trees sent to Plantations during Year. I Rotorua Taparmi Ranfurly* Harmier Springs Naseby £ b. d. 6,853 2 i) 2,071 12 0 93 8 10 1,129 13 0 404 o 6 £ s. il. 283 0 (i 2,208 12 5 50-2 2 11 1,253 !. r , 8 £ e. d. i £ s. d. 40 12 0 i 7,170 15 I! 124,13 10 I 4,404 is :i r>yr» ii 9 176 10 :: 2,5(11 18 11 -104 0 (i C,,225.OOO I,093,750 3,265,276 395,125 40,300 78,330 1,015,164 157,00.1 26,202 277,201 9.248,000 3,457,920 1,78i,900 275,500 3,093,400 580,560 Totals 10,551 17 1 4,249 11 6 341 10 1 Il5,143 4 8 • Nursery now closed. 10,276,150 3,785,030 1,475,631 16,379,870 i i i

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Summary of Operations in Nurseries from 1896 to 1923.

Summary of Operations in Plantations during Year ended 31st March, 1923.

Summary of Operations in Plantations from 1896 to 1923.

Total Expenditure. Output oi f Trees. Name of Nursery. Tree-growing. Maintenance. Buildings, Ac. ! Total. Estimated Number of Trees raised. To Plantations. To Outside Places. Rotorua Tapanui Ranfiiily* Eanmer Springs Naseby Scarborough* .. Kurow* i £ s. d. £ s. il. ! £ a. il. 85,585 9 4 8,814 3 0 13,691 6 5 37,899 13 1 11.517 19 II : 7,565 7 9 18,425 16 3 4,226 11 8 1 4,552 16 I 21,952 16 3 6,355 13, Ii 4,923 19 2 404 0 6 6,399 9 10 .. 2,886 17 3 960 4 2 .. 2,109 18 5 171,627 9 5 30,914, 8 1 35.700 5 I £ s. d. 108,090 18 9 56,983 0 9 27,205 4 0 33,232 S 11 -MM I) 6 9,256 7 1 3,070 2 7 82,064,927 22.457,002 t7,280,50] f16.386,900 275,500 3.059,610 172,460 68,763,281 17.330,968 6,465.593 12,257,235 4,053,646 1,668,714 509,858 1,036,265 I.965,095 I .094,515 172,160 Totals 238,242 2 7 131,697,500 106,782,172 8,535.458 * Nurse sry now closed. t Deaths ami reject's now deducted, N.li. Expenditure has not been allocated to " explaining decrease Maintenance " set compared with ftg jures for 1921-22 > iarately until 1! H7-18.

Name of Plantation. Number received from Nursery. Trees. Number used to replace Losses. Number planted on New Area. Total Expenditure for Year, including Cost of Trees from Nurseries. New Area planted. Kaingaroa Plantation* .. Puhipuhi •. Conical Hills Pukerau Dusky Hill Green vale Naseby H'anmci- Springs Balmoral Rainoliff 3,204,275 395,125 46,300 6,425 71,905 239,050 23,650 21.825 1 ,225 68,650 3.025,225 371,475 24.475 2,200 3,255 £ s. d. 15.526 12 7 380 16 2 1.927 4 6 566 10 3 463 14 9 3,754 18 0 1,287 5 5 1,150 7 I 944 9 6 15 4 0 Acres. 2,539 307 12 1 3 Totals 3,784,030 3,784,030 357,400 3,426,630 26,017 2 3 2,862 ' * Formerly shown as Kaingaroa West and Kaingaroa Plains Plantations.

Name of Plantation. Number Number bJSnEK? receivcafrom Seed sown »„...., in Situ. Nursery. T. rees. Number used to replace Losses. Total Number in Plantations. Total Expenditure to Date, including Cost of Trees from Nurseries. Total Area planted. Total Expenditure per Acre planted, including Cost of Buildings. Whakarewarewa Waiotapu Kaingaroa Plantation.. Puhipuhi Conical Hills. . Pukerau Dusky Hill . . Green vale Gimmerburn Nasrl.y Hanmer Springs Balmoral Rainoliff 109,725 20,602,850 S3.121 23,506,152 23,466,475 3,976.264 4,860,134 3,108,185 16,736,311 18,729,139 20,358,290 £ s. d. 113,522 12 7 86,786 6 10 122,964 13 2 Acres. 8,037* 7,010*f 14,976-)-1,200 3,533* 5653 745-1-1,710$ 88 2.150$ 2,913* 1,256* 206 £ s. d. 14 2 6 12 7 8 8 4 3 10,751,401 870,860 3,061,997 2,962.695 936,235 5,179.383 9.583,258 2,651.952 1,465.105 57,300 881.160 292,775 783.339 694,630 1,818,374 667,090 9,286,296 SI 3,56(1 2,180,837 2", 609,920 152,896 4,784.753 7,764.884 1,984,862 50,060 61,833 4 6 8,897 19 4 23,562 0 8 38,393 10 4 6,907 0 1 42,743 3 4 45,909 4 .1 32,014 4 2 1,123 1 2 17 9 11 15 14 8 31 11 10 22 8 10 78 9 9 19 17 5 15 15 1 25 9 6 5 9 0 Experimental Group. Waitaliuna Tekapo .. Dumgree Galloway Omarama .. 42,025 48,000 1,679,765 6.930 4,390 11,500 1,110.125 3,050 30,525 IS,000 569,610 3,880 4,390 319 7 9 275 8 3 16,309 16 7 84 19 10 80 12 9 11 29 209 2 2 29 0 8 9 9 11 78 0 9 42 9 11 40 6 4 Totals 192,846 105,594,368 19,729,031 86,108,183 601,727 5 5 44,046-} * Discrepancy with areas show t Kaingaroa West and Kail] portion of Waiotapu Plantation in' n in previi igaroa Plai ::luded in Ii ius reports wai ins Plantatioi Wtlga'lWa Pin s discovered di ns have been itation. uring a survey made in 1922-23. amalgamated as "Kaingaroa Plantatioi i," and a

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ANNEXURE V.—EXPORTS AND IMPORTS OF SAWN TIMBER AND OTHER FORESTPRODUCTS.

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fiXPORTS. (From information supplied by the Comptroller of Customs. AH figures refer 1922, and 1923, except those for kauri-gum and fungus, these covering th< ns. All figures refer to the fiscal yeara ended 31st March, 1921, ;us, these covering the preceding calendar year in each ease.) 1921. 1922. Quantity. Value. Quantity. | ,* 1922. 1923. ® matii y- I centage. ™ ue - *»««* j centre. Value - . ' I Percentiigc. Quantity. Sup. ft. £ Sup. ft. Kauri .. .. 1,201,455 1-91 19,019 3,070,135 6-2 Rimu .. .. 12,981.010 20-75 110,274 7.440,464 15-1 White-pine.. .. 44,382.691 ! 70-88 471.757 35,000,184 71-3 Beech .. .. 221,895 0-35 2,578 1,146,995 2-3 Other (New Zealand) 3.822,401 6-10 37,971 2,380,860 4-8 Other (foreign) .. ! 2,450 0-01 97 31,652 0-0 Sup. ft. £ Sup. ft. £ 3,070,135 6-26 53,781 3,865,533 8-54 73,168 7,440,464 15-16 62,651 4.536,253 10-02 38,830 35,000,184 71-33 377,224 35,687,358 78-81 363,444 1,146,995 2-34 15,120 726,109 1-fiO 10,031 2,380,860 4-85 20,485 385,310 0-85 4,465 31,652 0-06 826 79,973 0-18 1,016 Sup. ft. 3,070,135 7.440,464 35,000,184 1 ,146,995 2,380,860 31,652 6-26 15-16 71-33 2-34 4-85 0-06 62,611,402 100-00 644,690 40,070,290 100-0' 49,070,290 100-00 530,087 45,280,536 100-00 490,954 49,070,290 100-00 Tone. Tons. Tatmi rig-bark .. .. .. .. 59 Kauri-gum .. .. 6,481 .. 556,756 3,901 Fungus (New Zealand) | 78-8 .. 8,413 80-8 Tons. Tons. 59 .. 1,035 61 .. 918 3,901 .. 367,197 6.391 .. 563,270 80-8 .. 12,852 161-8 .. 22,271 Imports. MPORTS. (From information supplied by the Comptroller of Customs. All figures ro 1921, 1922, 1923.) ttoms. All figures refer to the fiscal years ended 31st March, 1922, 1923.) 1921. 1922. l.tetn, Quantity. Value. Quantity. : I " I 1Q29. 192:1. 1922. 192IS. 1921). Quantity. Value. Quantity. Value. Value. Quantity. i I Sup. ft. £ Sup. ft, Ironbark .. .. 7,819,897 152,291 12,783.676 Jarrah .. .. .. 5,918,063 97,160 5,136,333 Douglas fir (Oregon) .. 6,325,236 82,020 8,527,611 Other .. ., .. ! 15,155,910 396.979 10,962,738 Sup. ft, £ Sup. ft. £ '1 12,783,676 255,305 12,944,453 210,021. 6 5,136,333 105,972 3,258,593 40,973 0 8,527,611 65,371 5,230,439 42,941 9 10,962,738 246,375 8,918,211 194,160 £ 255,305 105,072 05,371 246, ,375 Sup. ft. 12,944,453 3,258,593 5,230,439 8,918,211 — -^ 35,219,066 728,456 i 37,410,358 ■6 j 37,410,358 673,023 30,351,696 488,095 673,023 30,351,696 I Number. Number. Laths, rails, palings, &o, .. 9,373,235 22,156 4,782,392 Number. Number. 6 4,782,392 11,602 8,387,568 18,490 11,602 Nuiii ber. 8,387,568 Tons. Tons. Tanning-bark .. .. 3,749 60,667 1,946 Wood-pulp .. ... 1,521 41,-125 232 Toon. Tuns. 7 1,946 27,960 1,964 26,337 5 232 9,200 1,470 2,1782 27,060 9,200 Tons. 1,964 1,470

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AXXEXURE VI.—STATE FOEESTS ACCOUNT. Receipts and Payments Account foe Year ended 31st March, 1923. Receipts. Payments. To Cash in hand, Ist April, 1922— £ 8. d. £ s. d. £ s. d. £ s. d. £ s. d. Cash in Public Account .. .. .. .. .. 9,351 14 sBy Charges and expenses for raising loans .. 3,882 0 9 Imprest accounts outstanding .. .. .. .. 24 16 2 Stamp duty on transfers X.Z. consolidated stock, 9,376 10 7 193.5-45.. .. .. .. .. 363 19 2 Loan Account— Recoupment management charges of consoli- * Stock issued— N.Z. Consolidated stock, 1935-45 .. .. 200,000 0 0 dated stock .. .. .. .. 23 G 3 Debentures issued .. .. .. .. .. 10,000 0 0 4,271 6 2 5 per cent, inscribed stock issued to cover cost of raising loan Interest on loans .. .. .. .. 19,701 2 1 (£200,000) and stamp duty on transfers .. .. .. 4,187 17 7 Sinking fund .. .. .. .. 935 18 2 Premium on stock issued.. .. .. .. .. 28 18 0 . 20,037 0 3 Interest on stock issued .......... 4 11 10 ' 24,908 6 5 214,221 7 5 Capital charges— Interest on securities invested .. .. .. .. .. 2,935 4 1 Sub. II.— General development of State forests— Recoveries on account of expenditure on Trounson's Kauri Park .. 437 11 8 Motor vehicles, field and office equipment .. 841 7 3 Revenue— Forest Atlas .. .. .. .. 471 11 11 National endowment .. .. .. .. .. 3,336 6 9 Roads and trails .. .. .. .. 142 15 7 Mackenzie County Council plantations .. .. .. 237 46 ■ Demarcation .. .. .. .. 90 13 2 State forests and provisional State forests— £ s. d. 1,546 7 11 Timber-sales .. .. .. .. 38,351 1 5 Sub. 111.— Forest -fire prevention— Timber royalties .. .. .. 6,926 4 8 Equipment and protection improvements .. .. 94 12 4 Timber trespass .. .. .. 2,185 8 0 Sub. IV.— Educational— Leases—Grazing .. .. .. 3,974 13 2 Reference library and text-books .. .. ]74 15 0 Leases—Sawmill-sites .. .. .. 126 9 0 Photographic equipment .. .. .. 12 7 7 Leases—Industrial .. .. .. 316 8 7 187 2 7 License and transfer fees .. .. 97 7 6 Sub. V.— Forest Research— Miscellaneous .. .. .. .. 844 7 5 Forest experiment station .. .. .. 1,043 15 8 Permits—Grazing .. .. .. 57 9 0 Timber-testing equipment .. .. .. 91 0 1 Permits—Miscellaneous .. .. .. 72 15 7 1,134 15 9 Opossum revenue .. .. .. .. 1,108 0 0 Sub. VI.— General afforestation— 54,060 4 4 2uirser;es and plantations: Planting, clearNurseries and plantations — ing, &c. .. .. .. .. 29,428 0 5 Trees .. .. .. .. .. 4,880 17 1 Salaries (afforestation) .. .. .. 8,626 9 8 Seeds .. .. .. .. .. 630 16 0 Land-purchase for extension .. .. 3,585 0 0 Firewood and poles .. .. .. 84 1 2 Sand-dune reclamation .. .. .. 1,072 7 5 Grazing .. .. .. .. 249 5 9 Temporary assistance .. .. .. 314 7 0 Sheep, sale of .. .. .. .. 761 13 10 43,026 4 0 Rents of departmental houses .. .. 646 5 7 Sub. VII.— Acquisition of indigenous forests— Miscellaneous .. .. .. .. 18102 Purchase of investigative area .. .. 03 18 9 7,433 19 7 Waipoua, purchase of additional blocks .. 970 7 8 1.064 6 5 65,067 15 2 47,05? 9 6 Less refunds .. .. .. .. .. 1,695 9 10 Operation and maintenance charges— 63,372 5 4 Salaries .. .. .. .. .. .. 21,464 13 2

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Sub. II.—General development of Stare forests— Communication expenses, office supplies, &c. .. 1,409 11 6 Fiscal management expenses .. .. 230 1 8 Forest and grazing reconnaissance, timber cruising and appraisal, policing patrol and maintenance, &c. .. .. .. 5,223 5 9 Office rent, heating, lighting .. .. 1,738 12 8 Legal expenses and contingencies .. .. 141 9 0 Temporary assistance and overtime .. .. 822 16 11 Transportation expenses and upkeep of motor vehicles .. .. .. .. 810 13 8 Travelling-expenses .. .. ■• 1,816 4 8 12,252 15 10 Sub. 111.— Forest-fire prevention— Communication expenses and locomotion .. 447 17 1 Wages 1,265 0 11 1,712 18 0 Sub. IV.— Educational— Forest exhibits .. .. .. .. 40 17 7 Photographic records and materials .. .. 226 16 5 Departmental bulletins and professional publications .. .. .. .. 94 5 6 Rangers' instruction .. .. .. 25 5 8 387 5 2 Sub. V.— Forest research— Forest ecology .. .. .. .. 244 17 5 Silvicul.tural management studies .. .. 128 16 7 Utilization and timber testing .. .. 715 0 3 1,088 14 3 Sub. VI.— General afforestation— Forest regulation studies .. .. .. 30 19 0 Preparation of planting-plans .. ... 725 4 0 756 3 0 Sub. VIII.— Grants and subsidies to local bodies for tree-planting, &c.— Mackenzie County Council— Refund of expenses for treeplanting .. .. .. 639 11 4 New Brighton Borough Council— Subsidy for tree-planting .. .. .. .. 54 16 4 . 694 7 8 38,356 17 1 Unauthorized expenditure— Compassionate allowance .. .. .. .. . • 235 0 0 Cash balance at 31st March, 1923— Investments Account .. .. .. .. 166,843 19 1 Cash in Public Account .. .. .. .. 10,532 6 4 Imprests outstanding— In Dominion .. .. .. .. 1,781 0 8 In London .. .. .. .. 632 0 0 2,413 0 8 179,789 6 1 £290,342 19 1 £290.342 19 1 23rd May, 1923. E. Phillips Tubneb, Secretary of Forestry. A. W. Gyles, Accountant. I hereby certify that the statement of receipts and payments has been duly examined with relative books and documents submitted for audit, and correctly states the position as disclosed thereby.—G. F. C. Campbell, Controller and Auditor-General.

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Loan Account as at 31st Makoh, 1923. To Loan authority— £ s. d. By Debentures issued— £ s. d. Section 50, Finance Act, 1916 .. 50.000 0 0 1916-17 : Section 50, Finance Act, 1910 10,000 0 0 Section 32, Finance Act, 1918 (No. 2) .. 200,000 0 o 1917-18: Section 50, Finance Act, 101(1 28,100 0 0 Section 16, Finance Act, 1920 .. 250,000 0 0 1918-19 : Section 50, Finance £ Section 8, New Zealand Loans Act, 1908 4,257 16 1 Act, 1916 .. 11,900 Section 32, Finance Act, 1918 .. 15,000 — 26,900 0 0 1919-20 : Section 32, Finance Act, 1918 (No. 2) .. .. 66.000 (I 0 1920-21: Section 32, Finance Act, 1918 (No. 2) .. • .. 70,000 0 0 1921-22 : Section 32, Finance £ Act, 1918 (No. 2) 50,000 Section 16, Finance Act, 1920 .. 35,000 85,000 0 0 New Zealand consolidated inscribed stock, 6 per cent. : Section 16, Finance Act, 1920 .. .. .. .. 1.774 12 10 1922-23 : Section 16, Finance Act, 1920— 5 per cent. New Zealand consolidated stock, 1935-45 .. .. .. 200,000 0 0 Debentures .. .. .. .. 10,000 0 o Stock, 5 per c-nt. .. .. .. 4,187 17 7 Balance nf authority .. .. .. 3,295 5 8 £504,257 16 I £504,257 Iβ 1

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