STATE FOREST SERVICE. THE ANNUAL REPORT OF THE DIRECTOR OF FORESTRY FOR THE YEAR ENDED 31st MARCH, 1926.

Appendix to the Journals of the House of Representatives, 1926 Session I, C-03

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1926. NEW ZEALAND.

STATE FOREST SERVICE. THE ANNUAL REPORT OF THE DIRECTOR OF FORESTRY FOR THE YEAR ENDED 31st MARCH, 1926.

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

The Director of Forestry to the Hon. the Commissioner op State Forests. Sir, — Wellington, Ist June, 1926. I have the honour to submit herewith a report on the activities of the Forest Service for the year ended 31st March, 1926. I have, &c., L. Maclntosh Ellis, B.Sc. (F.Tor.), C.S.F.E., S.A.F., Director of . Forestry.

C! 0 N T E N T S. Chapter I:— Page Page Summary and Review of Progress in Forestry .. 1 Chapter V. -General .. . . .. 25 rn . rr Timber-trade Conditions . . .. . . 25 Chapter II , The State Forest Service .. .. .. 9 if 5 , 1 orest , At i? s ;' '' '' •' %% -Photographic Records . . .. .. 28 Chapter lll.—The State Forests . . .. 10 Educational Publications . . . . . . 28 Constitution of State Forests . . .. 10 Forest Service Reference Library .. .. 28 Legislation . . .. .. . . 10 Appendices Forest Reconnaissance, Demarcation, and Survey ] 1 j gt a tus Records .. 29 Co-operation with other State Departments .. 11 IL Report upon State Forestation in North Finance .. .. .. .. ..11 Is l and . . ..29 Operation .. .. . . .. 12 jjj Report upon State Forestation in South Forest-protection .. . . . . 14 Island 32 Forest Wild Life .. .. .. 15 IV. Summaries, Nursery and Plantation OperaEstablishment of Artificial Forests .. 16 tions .. .. 33 Public Relations .. .. .. 18 y Exports and Imports of Sawn Timber and Chapter IV.—Research and Experiments .. 19 other Forest Products .. .. 35 Forest-management . . .. .. 19 VI. Summary of Expenditure out of State Ecological Research .. . . . . 19 Forests Account .. .. . . 36 Forest Economic Research .. . . 19 VII. Receipts and Payments Account .. 37 Silvicultural Investigations .. .. .. 20 VIII. Loan Account .. . . .. 39 Forestation Studies . . .. . . 21 IX. State Forests Account .. .. 39 Forest Economy .. .. .. . . 23 Map.—The Forests of New Zealand. To face page 5

REPORT.

CHAPTER I.—SUMMARY. A REVIEW OE PROGRESS IN FORESTRY FOR THE YEAR ENDING 31st MARCH, 1926. General. This report is annually prepared and published for the information of the general public, for it is right that the people should have the opportunity to be fully informed as to the activities of the Forest Service ; to be given an accountancy of stewardship of the 7,553,690-acre forest estate, of the departmental receipts and expenditures, and a general review of the progress of forest-conservation and of forest-culture within the Dominion. Of necessity, it must be brief, but fuller information can be secured from the numerous Service publications which are available for the asking. National forestry has a fourfold objective. The components are —• (1.) The production of timber crops. (2.) The conservation of stream-flow by the maintenance of protection forests. (3.) The protection and control of New Zealand's forest wild life. (4.) The development of forest recreational uses.

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To the accomplishment of this objective the Service has diligently applied itself during the past six years. Concrete advances are recorded, for the cut-hack-burn system of settlement and reckless forest exploitation have given way to reproductive use ; a definite policy of action ; and a Dominionwide practical and monetary interest on the part of individuals, communities, capitalists, and proprietary companies. " National forestry or perpetuation of forests by use " actuates official co-ordinate effort in four main divisions. They are — A. Management of State Forests (indigenous Trees). Their protection against fire and trespass. The marketing of ripe lumber crops, and the application of applied silviculture to continuous production. B. State Forestation. The business of establishing, managing, and harvesting State manraised forests. C. Forest Research. Embracing experimental silviculture of the native and naturalized forests. The development of new uses and methods of application. D. Forest Extension. Stimulation of appreciation of forest-values and the knowledge of what constitutes the right use of forest land through the Press, through avenues of education opened by primary-school instruction, through concrete example, and demonstration of methods and values to planters and users. Action in public relations by co-operation, lectures, expert examinations, and through the Service publications. These four natural groupings of effort are closely interwoven in application, but wherewithal clear in definition, and might be compared to the four quarters of a wheel —all rolling as one, but each contributing in turn to the movement and progress of the whole. Collective and individual interest in the profitable business of forestry and woodland conservation has markedly advanced throughout the Dominion, and to-day can be measured as an active economic force. The urge for progress unquestionably has come from the growing knowledge of the integral economic value of our forests, and to a realization that the remaining Dominion forests comprise only non-agricultural lands, and to the instinctive but latent sentimental love for trees that exists in all human beings. State Forestation. Real headway was made during the year, and the Service can again record another peak year in achievement and operation. The programme of action for the period 1925-35 as submitted in the

Graph showing Cost of establishing One Acre of State Forest Plantations for the Years 1921-26.

last annual report met with a splendid reception, and was in principle approved. Among other objectives, it advised the formation of a provincially distributed State forest plantation estate of 300,000 acres, and according to plan, under this minimum programme, 15,964 acres were formed in the Auckland, Canterbury, Otago, and Westland Provinces, being more by 4,844 a'cres than that of the previous year. The total State plantation acreage now stands at 78,953 acres. The plan of allocating to each province its appropriate acreage of State timber farms was in part carried out by establishing a new planting-centre near the City of Auckland ; the acquisition of 55,012 acres" (subject to survey) in the Kaingaroa district, and 8,608 acres in the Balmoral district of the Canterbury Province ; while acquisition negotiations were begun with regard to planting-centres in the Wellington, Marlborough Sounds, Nelson, Canterbury, and Southland regions.

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Marching with these activities has been the adoption of a new, cheaper, and more efficient technique of tree-production and plantation-formation. The solution of the problem of efficient land-use by treecropping is linked with that of forestation technique, for low-priced land coupled with low plantingcosts mean profitable use. The Service has concerned itself during the past few years with the solving of forestation-cost problems, and, it is submitted, not unsuccessfully. The straight-line methods now generally adopted throughout the Service take full advantage, among other factors, of the use of mechanical power and machinery in nursery and. plantation, wide planting espacement, and direct seeding. Five acres of trees can now be formed where 1 acre was planted in the year 1920. This new standard Forest Service technique—now in general use by tree-planting companies and others—will be applied in the formation of 60,000 acres of plantation (State and private) during the current season, and its use enables the production of tree-stocks and creation of plantations on a cost basis as low as that of any overseas Service or other agency in any part of the Empire. The development of this practice has only been possible through the closest co-operation of the Service personnel, and by the staff functioning as one man in the work of reorganization and along a straight-line routine. Local-Government Forest Activities. The same forces tha.t have enabled the Central Government to work to a wider objective in the creation of man-raised forests have also been reflected in the splendid interest shown by boroughs, towns, counties, Power and Harbour Boards, and other local governments in the formation of commercial forests. Twenty-nine local-government bodies in the North Island have established, tree-plantations, ranging in area from 2 J acres to 630 acres. In the South Island nineteen local authorities planted J,221 acres during the period under review. The Dunedin City Council heading the list by establishing 450 acres, while other areas exceeding 100 acres were planted by the Selwyn Plantation Board (368 acres), Christchurch City Council (150 acres), and Ashburton County Council (118 acres). The area of Crown land set aside for tree-planting purposes by local bodies was further increased by vesting 721 acres in the Whakatane County Council, and the disposal of further areas for the purpose of creating communal artificial forests is under consideration. Private Forestation Efforts. The year witnessed a new planting record set by individuals, syndicates, tree-growing companies, and other industrial corporations, nearly 18,000 acres of forest pla tations being established. The Service sold for these purposes 4,540,176 trees, and at least 10,000,000 trees were purchased or raised by others. From the information at the disposal of the Forest Service the area of commercial timber plantations formed was — State forest plantations . . .. . . ..15,964 acres Farmers .. . . .. . . . . 2,800 acres Tree-planting companies and syndicates .. .. .. 14,847 acres Other industrial companies .. .. .. .. 277 acres Grand total . . . . .. .. 33,888 acres which can be taken as a record for the Empire. The plantings for the current year will much exceed this figure. Area of State Forests. The state forests area was increased by a net acreage of 68,100 acres, which addition makes the grand total of Crown forests dedicated to forest-conservation and tree-cropping 7,553,690 acres, equivalent to 11-4 per cent of the area of the Dominion. Protection of Forests. Losses by fire in State forests have been practically negligible during the reporting year, the sum of £87 representing the monetary loss of forest-produce. It is to be regretted that private and localbody plantations suffered the comparatively severe loss of 1,016 acres of naturalized trees, principally through inadequate supervision and indifferent protection. Substantial progress was made in dealing with wild-pig and deer pests, for the Service, acting in co-operation with the Departments of Lands, Agriculture, and Internal Affairs, paid out the sum of £1,012 as bounty-money on the destruction of 19,253 wild pigs, while payments were also made on 5,877 deer killed in infested areas. Plans are now in hand for the operation of more effective measures for the extermination of wild pigs and the control of deer. This latter pest has increased to such an extent that it has become a serious menace to farming and pastoral activities and to the forests of the State. The Forest Service is strongly of the opinion that in the interest of all concerned—primary producers, sportsmen, and the community generally —it is essential that protection on all species of deer excepting moose and wapiti, should be removed for at least three years commencing Ist January, 1927, and that the payment of bounty should be continued on all deer destroyed during that period. Finance. The total forest revenues from all sources totalled £152,550, whilst the sum of £174,247 was expended in forming plantations, constructing permanent improvements in the indigenous State forests, in forest-protection, salaries, forest research and investigations, in the purchase of forests and forest-, able lands, in subventions to county bodies for the construction and maintenance of back roads and bridges, and in payments to the National Endowment Fund.

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Timber-sale Policy. "As long as grass grows and rivers flow, New Zealand should account its forests and forestable lands amongst its principal natural resources." Indeed, there is no natural resource which has so appreciated in monetary value during the past two generations as standing softwood timber : a phenomenon due largely to the reckless and alarming depletion of virgin supplies throughout the world ; to consumption at a far greater rate than growth ; to the general remarkable increase in uses of wood, in the arts, for artificial silk, paper, and general constructional uses ; and to widespread public realization of the value of timber. In New Zealand the average market values of such softwoods as rimu, matai, and totara have increased from five to ten times in the past thirty-six years, whilst the stumpage value of kauri to-day is only equalled by that of the king of all softwoods —Pinus strobus of eastern North America. Broadly, softwood stumpage prices are advancing over each five- to ten-year period at the rate of from 6 to 10 per cent, yearly, in conformity with universal tendencies ; and the outlook is for a continuance of this trend generally, to the point of exhaustion of national virgin supplies. The levels of selling-prices reached by stumpage sales from forest plantations in Canterbury and elsewhere rank with those attained by sales of virgin native timber-supplies. The Service in its policy of sale and disposal with regard to the ripe timber resources entrusted to its care has adopted certain broad underlying general principles. They embrace —First, a desire to provide continuous and stable supplies for established industries and localities ; second, the stimulation of sawmilling operations in forest regions where the public interest and good justifies

Virgin Forest of New Zealand: Matai ( Podocarpus spicatus) and Rimu (Dacrydium cupressinum) near Lake Taupo.

them; third, the safeguarding of the community from the dangers of timber monopoly and aggregation ; fourth, the disposal of timber in such a manner that the State is assured of the legitimate competitive market stumpage value, and the prevention of speculation and profiteering. Sales of ripe saw timber, poles, posts, and other forest-produce were 73,659,000 ft. b.m., valued at £80,565, while 79,009,000 ft. b.m. were cut from State forests, and £130,132 were received from timber licenses in force during the period under review. Receipts from sales of planting-stock, tree-seeds, grazing, and other miscellaneous sources of income amounted to £22,418, exceeding that of the previous year by £1,602. Forest Research. In forest research substantial achievements are recorded. The Branch of Forest-products reports results in timber mechanics and timber physics, wood-preservation, derived products, entomology, and industrial investigation. Dr. L. Cockayne, F.R.S., Honorary Botanist to the Service, continued his investigations in ecological research by studying the tawa forests in five districts, and presented an interim report. The statistical growth studies of exotic trees carried out by the Service in New Zealand plantations were increased to forty-three by the completion of thirty-six studies. In forest economics research Mr. F. E. Hutchinson, B.Sc.F., School of Forestry, Canterbury College, completed for the Service the first part of " The Economic Forest Survey of Canterbury." The Westland Forest Experiment Station planted a further area of 130 acres on the cut-over indigenous forest lands, and 12 acres on dredge tailings near Hokitika, while the Rangitikei Sand-dune Experiment Station established 222 acres of marram-grass and 73 acres of trees on the wandering sand-dunes near Foxton. Results from both these stations are of great economic importance, not only to the districts concerned but also to the Dominion, as they deal with the-utilization of waste lands. In the forest nurseries weed-eradication experiments, nursery growth and season of sowing trials, and experiments against grass-grub have been carried out, while in the plantations direct seeding and fire-equipment have been subject to investigations.

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For est Service Tree-nursery containing Seedlings of the Exotic Species raised for Tree-planting Purposes. The New Zealand and South Seas Exhibition, Dunedin, 1925-26.

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THE FORESTS OF NEW ZEALAND

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Public Relations. Forest-extension activities during the period under review embraced lectures to farmers', forestry, and business-men's organizations, free distribution of foresty literature, free information on all forestry and tree-planting problems, &c., while the fostering of the forestry-in-schools 'movement, whereby the future citizens of the Dominion are interested and instructed in forestry and treegrowing, together with the display of forest-produce and nursery stock at the New Zealand and South Seas Exhibition at Dunedin, and at winter shows throughout New Zealand, has brought forestry prominently before a very large portion of the population of the Dominion. Our Indigenous Forests and their Use. The period 1965-70 will see the end of our original softwood resources, and from that time onwards New Zealand must look primarily to her man-made forests for wood-supplies ; but in the meantime we must husband, conserve, and use our remaining forest wealth with the greatest care, for we waste every year, in the production of 25 to 30 million cubic feet of sawn timber, five to six times as much. Henry Ford's remark that " There is wood enough in the country for every one when we learn to use it" teaches a lesson for New Zealand as well as the United States. The problem of full use is, however, much more intensified in New Zealand than in most countries, for our demand upon the forest wealth is chiefly in the form of sawn and round products, and then only of the best, while the growing inaccessibility of the forests, the small size of the manufacturing units, and the relatively scattered consuming centres render difficult fullest economic use. The Service, through its Branch of Forest-products, has accomplished very definite results during the year in promoting new uses for

Treating Fencing posts by the Open-tank Method: Demonstration Plant, New Zealand and South Seas Exhibition, Dunedin, 1925-26.

our waste woods and in developing economies in manufacture. Results are recorded under the following headings : — Timber Mechanics.—Determination of the mechanical and physical properties of eight species of timber. Green tests were conducted on matai, miro, kahikatea, rimu, and Douglas fir, and air dry tests 011 kauri, rimu, hard beech, insignis pine, and kahikatea. Tests of structural timbers of insignis pine commenced. Strength tests of full-sized poles of locally grown Eucalyptus Risdoni and Larix europea. Complete strength and physical tests of New Zealand and foreign manufactured ply-wood. Timber Physics.—Design of a new standard metal-bound butter-box for export service. Routine tests and specifications for box-bindings in connection therewith. Determination of fundamental data 011 the microscopic anatomy of native and exotic woods. Wood-preservation.—The treatment with creosote of the native hardwoods, kamahi, silver, red, and mountain beeches, and of the exotic softwoods —Corsican, Austrian, and pondosa pine—by the open-tank process. Installation of treated experimental fence-posts. Preparation of specifications for wood-preservations, and further development of a preventative for sap-stain in kahikatea. Derived Products. —The bleeding of kauri-trees, the deresinating of kauri, and the pulping values of kauri and insignis pine. Industrial Investigation. —Partial analysis of statistics of sawmill industry. Analysis of the foreign timber trade for the past five years. Entomology. —Survey with a view to protection, liberation, and control, as required, of the forest and timber insects of the Dominion, and of new types introduced in imported forest-produce. The publication under the imprimatur of the Forest Service of a bulletin " Forest and Timber Insects," by Mr. D. Miller, M.Sc., Government Entomologist. Imports of Forest-produce. One of the major developments in timber-use during the last year has been the importation of softwoods —Douglas fir, white and red cedar, hemlock, redwood, spruce from Canada and the U.S.A., and spruce from Baltic ports.

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Imports of Softwoods into New Zealand from Canada and United States of America for the Calendar Years 1922-25.

Graph of Importations of Softwood Lumber from Canada and United States of America for the Calendar Years 1922-25.

With the highest per capita consumption sinee 1910 importations, like local production, reached a new peak. Falling prices, too, and a wider knowledge of the properties of foreign softwoods contributed to this unprecedented invasion of New Zealand markets; the result is, unfortunately, a displacement of our own excellent building-timbers. During the latter part of the period under review these heavy importations have had a depressing effect on New Zealand's sawmill industry, which provides employment for nearly eight thousand men, and pays out approximately two million pounds sterling per annum in wages. The industry is now endeavouring, by improved manufacturing methods and by more efficient distribution, to meet, in a measure, this alarming influx of foreign timber, and to render greater selling service to its customers. The Forest Industry op New Zealand. There are at least four hundred sawmills in New Zealand producing 360 million feet b.m. of timber annually. Of this output a total of 79 million feet b.m. (22 per cent.) was cut from State Forests, and the proportion exploited is so increasing that within ten years it will be at least 75 per cent. At the 31st March, 1925, the forested lands held for milling in the Dominion were 361,000 acres (40,000 acres had been cut during that year), whilst the average yield per acre was 7,100 ft. b.m. The State, in ten years, will be the chief landlord as regards supplies of exploitable raw material. Marching with the times and economic trends, the exploitation, manufacture, and distribution of forest-produce in New Zealand is evolving along lines which must result in the rendering of cheaper and more efficient service to the consumer, and the meeting of overseas competition. The principal changes are — (1.) In the use of heavier and more powerful logging equipment in haulers, locomotives, steel rails, and rolling*stock. (2.) Finer-gauged saws in mills ; wider use of gang-saws, Canadian type head-rig mills, faster planer-feeds, live rolls, automatic saw-grinding machines, improved transmission, and better housing.

(Expressed in terms of feet board measure.) Totals from Canada. U.S.A. Canada and s P ecie8 ' — r , 1 UtJmfto 1022. I 1923. 1 1924. 1925. 1922. 1923. j 1924. 1925. S °i926 Pri1 ' Douglas fir .. 3,069,000 5,880,000 9,133,000 7,940,000 824,0001,881,0004,696,000 9,167,000 4,881,000 Cedar.. .. 20,000 50,000 567,000 2,870,000 .. .. 684,000 3,638,000 2,987,000 Hemlock .. 200,000 631,000 1,439,000, 2,855,000 .. 5,000 148,000 813,000 1,940,000 Spruce .. .. 3,000 573,000 579,000 .. .. .. 572,000 1,869,000 Other.. . . 586,000 203,000 100,000 70,000 821,0001,062,0001,304,000 1,676,000 1,000,000 Totals .. 3,875,000 6,767,000 11,812,000 14,314,000 1,645,000 2,948,000 6,832,000 15,866,000 12,677,000 Total, Canada and United States : 1922, 5,520,000 ; 1923, 9,715,000 ; 1924, 18,644,000 ; 1925, 30,180,000.

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(3.) Improved stacking by careful filleting and classing in millyards. (4.) The more extended use of kiln-drying in sawmills and remanufacturing plants. (5.) A very significant trend which has perhaps a most important price influence is the tendency in distribution to eliminate the middleman or urban timber-yard merchant. Whereas in post-war days it is estimated that only 30 per cent, of the distributed timber in consumption reached the builder directly from the producer, to-day it is estimated at least 70 per cent, conies this way. In other words, the primary producer is now beginning to realize that direct producer-consumer relations mean better returns to the former and lower landed charges to the latter. In addition to wiping out the independent distributor, many sawmillers are establishing their own retail yards in the consuming centres and thereby stimulating wider use of the lower grades, which were always moved slowly under the old system of sale. Another marked tendency (all in the interest of customer service) is the greater merging of the sale of overseas and home-produced timber by the same distributors.

Incline Tramway used for logging Kauri (Agathis australis), North Auckland.

National Arboretum. The original area of 50 acres acquired for the establishment of the national arboretum at Rotorua has been extended by the acquisition of 29 acres of adjoining land. Stocks of about two hundred and fifty indigenous and exotic species are being raised in the Whakarewarewa Nursery for the arboretum, and the first instalment of specimens will be planted therein during the 1928 planting season. Every effort is being made to make the arboretum fully representative of the world's principal softwood utility and ornamental trees. Study of Forest Engineering. The work of training forest engineers and forest rangers at the Schools of Forestry at the Auckland and Canterbury University Colleges made excellent progress during the year, fifteen students being in attendance. It is to be hoped that official consideration can be given in the near future to a merging of these two schools into one strong School of Forest Engineering.

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The Work Ahead. The completion of the 1935 goal will require during the current year and in the following nine years the planting of over 220,000 acres of commercial plantations. The forming of the 1935 year goal of 300,000 acres of wood-producing plantations may be considered the minimum national requirement, and really is " only a drop in the bucket " when one considers the future needs of the Dominion. This estate can provide only for New Zealand's bare necessities, and takes no heed of her 5,000,000 acres of deteriorating and idle waste lands, which potentially have no equal for the production of wood crops. What means, one asks, then, are there of bringing this potential asset into full use ? Several methods —all practicable, economical, and sure of success — immediately present themselves : — H 1. Formation of community endowment forests by the Forest Service and sale of individual interests therein to the investing public. There is no organization in New Zealand more competent to render this profitable service to the investor than the Forest Service, and, backed by the guarantee of the State, the participant in State forest endowments would be absolutely assured of the safety and efficient management of his investment. Each endowment forest would be under the administration of the Service from seed to sawmill with a definite fixed rotation and realization period. The principle of endowment forests has Dominion-wide application with no limits except that of land availability, and, if one can judge by the investment of the public in the many and diverse private tree-planting company ventures at present offering shares and other rights in New Zealand, the response to State offerings should be a generous one. 2. A policy of free or nominal dedication of waste Crown lands to local-government bodies for timber-crop production is urged. Expert Forest Service supervision supplied at cost should also result in a greater interest in this business by cities, boroughs, counties, Power and Harbour Boards, and others. In this connection the results in forestation effort that have already been secured by three Canterbury local bodies in holding 29,862 acres of forested and forestable lands and planting 11 >375 acres is worthy of note by other local authorities. 3. A policy of long-term leasing of idle and waste Crown lands to individuals and corporations for a nominal rental and a final deferred payment with cumulated interest to time of harvest or on maturity of crop is another method of interest. These and other proposals of a kindred character are worthy of consideration and development with a view to stimulating local and individual interest in the utilization of the Dominion's idle lands for timber-cropping purposes. If national forestry is to march in line with national progress and to carry its full burden other urgent steps for action are now advised. They are — (1.) A safe measure of statutory control of private and public companies organized for treegrowing purposes with a view to adequately protecting the investor against incompetent management and loss. This measure is long overdue. (2.) Review and revision of the Customs import and railway tariffs on foreign-wood goods. (3.) Unification of administration of all governmental forest and timber activities, including administration and management of rights, licenses, concessions, forest lands, and all other kindred reservations in the Forest Service. (4.) The centralization of the statutory administration of the Dominion's wild forest life in the Forest Service. (5.) The early establishment of a forest-products laboratory. (6.) The creation of schools forest endowments.

State Forest Service organized 1921. Exposé of State Plantations established from 1896-1926 and Forest Service Tree-planting Objective to Year 1935.

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CHAPTER 11.— I THE STATE FOREST SERVICE. At the 31st March, 1926, the total number of permanent Service staff officers was 106, as compared with 95 at the 31st March, 1925. During the year nineteen new permanent appointments were made, and eight officers resigned, the total strength thus being increased by eleven. Considering the activities of so many private tree-planting companies, the number of resignations from the operating staff —one conservator, three forest rangers, and one forest guard —is remarkably

Insignis Pine (Pinus radiata) Plantation, Wellington. Trees 40 Years old.

small. It is to be expected, however, that with the increasing activities of these companies and the higher salaries offering many trained officers may be lost in this direction in the future. Whilst the services of these men are no longer available to the State Forest Service, it is gratifying to remember that their efforts are still directed in assisting in the provision of future timber-supplies for this Dominion. The rangers' course of instruction was held at Hanmer Springs during the month of July, and was attended by fourteen officers of the Service. These courses have been a great aid in advancing the efficiency of the field staff, and will continue to be an annual event.

State Forest Service Organization.—Distribution of Permanent Staff as at 31st March, 1926.

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1 § s 4 s . S C$ C<3 1 O n & 2<N 2N $<N S 0-1 oi£! f~ . Cl3 O 05 03 05 05 05 *"* «(-l " . t^ <I 'S' + - >, ® r tj M |[J T_ ' §3 T ~ < 1—1 ' Forest-conservation o Z « "i *3 8 &c §)& §c© h p3 5 u" ho" so" do" co" Region. ■ ft 3 ® '% += §j «j § cl S> a g +i +§ ' b) o3 +2 CiD " + ~ > +s += ■ + " 5 aj sJ ih >—i >—i ■*? p—< -*-? ■—< •♦*? . •*? o o> «« $i •« <fi .2 s S S $ M <5 c3 J2 c 3j2 c 3i2' : 3i2 ,: 3,f2'c3i2 ai t_j a) 22 O D Tj 2 <D OJ QJ CD s~ 5y ubrHjjr-ljjrH-tjr-t+jr—irarH H O A % £ & £ & £ £ & 3 5 0<WO«OOCOOCOOW"gCO 'S QJfM O Q( O ,-5 £? © O O © i!_ ±? CLJ CU L-i C_i C_i J- 5 fit/3 OOcefiROfipqfzHpR Auckland 1.. 1 2.. 1 2 1 8 6 6 6 7 8 Rotorua 1 .. 1 3 . . 1 2 6 8 .. 1 23 19 20 21 20 20 Wellington 1.. .. 3.. 2.. 2 2.. .. 10 8 7 7 6 6 Nelson 1 .. .. 1.. .. 2 2 1.. .. 7 7 7 7 6 7 Westland 1.. .. 2.. 1 2 2 8 5 6 6 8 7 Canterbury-Otago .. .. .. 1 .. .. 4 .. 1 2 7 1 3 .. 19 20 19 18 21 18 Southland 1 .. .. 2 .. .. 3 6 6 6 6 6 7 Central Office .. 1 1 1 .. 2 4 9 6 I .... 25 24 25 24 15 24 Totals .. 1 1 1 7 2 6 26 6 6 13 20 3 3 1 106 95 86 95 99 97

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CHAPTER TIL—THE STATE FORESTS. 1. CONSTITUTION OF STATE FORESTS. Summary of Area under Control. At the close of the year the aggregate area of State forests under control (including provisional State forests and forest reserves) was 7,553,690 acres. A net increase is shown of 68,100 acres as compared with the previous year's total when allowance is made for an area of 2,548 acres which was withdrawn from reservation and utilized principally for settlement purposes. The area now dedicated to forestry forms 114 per cent of the total area of the Dominion (since the year 1919 this ratio has been increased by 5-2 per cent.). The acquisition of approximately 40,000 acres of additional land for forestation purposes was on the point of completion at the close of the period under review : this area is, therefore, not included in this year's figures. Further statistical detailed information relating to the areas under forest-control may be found in Appendix I of this report.

Kaurt (Agathis australis), North Auckland.

Legislation. The Forests Act, 1921-22, which made provision for the management and protection of forests, was found inadequate to deal effectively with certain administrative and protective situations which arose since its enactment. Further statutory authority was therefore required, and certain measures were submitted to Parliament, with the result that the Forests Amendment Act, 1925, was made law. Provisions safeguarding forests from fire were extended by making any person convicted of lighting a fire within 20 chains of a State forest, if any produce was thereby burnt, liable to imprisonment for three months or a fine of £50 (previously this distance was only 50 yards) ; by enabling private lands to be declared a fire district in certain cases ; and by ensuring the validity of the constitution of a fire district or the declaration of a close season when written notice of the constitution of such fire district, &c., had not been served on each landowner interested within the area. Exchanges of parts of State forests for parts of adjoining private lands in cases where the common boundaries are unsatisfactory may now be effected without the special legislation previously required in each case. Other sections deal with trespass of cattle in State forests, charges to be paid for services rendered by forest officers, leases of forest land for grazing purposes, the authority of Wardens in certain cases, and the amendment or repeal of certain sections in the principal Act.

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Forest Reconnaissance, Demarcation, and Survey. Detailed stock-taking, tlie foundation upon whicli is built the permanent management of our forests, has been steadily carried on during the year. In the Auckland region ten reconnaissance surveys aggregating 6,965 acres were completed, and the field-work of an extensive reconnaissance and co-ordination survey of the northern portion of Taupo County finished. In the Wellington region the forest reconnaissance of an area of 4,241 acres was made, and the reconnaissance of a similar area commenced. In the South Island progress in this work has also been made. One extensive reconnaissance was carried out in Nelson region to ascertain the type of forest and general condition of the uplands contiguous to the Wangapeka and Little Wanganui Valleys. In the practically unexplored district in the vicinity of Lake Hochstetter the Westland region has commenced a reconnaissance of this virgin forest area, while Southland region reports the examination of 33,000 acres of Crown forest lands in the Lillburn, Hauroko, and Alton Survey Districts for the purpose of classifying the area into protection and commercial forest and with a view to recommendation for dedication as State forest. As a result of the classification and demarcation survey executed last year in conjunction with the Department of Lands and Survey the plans and descriptions of the areas which are to be made State forests, or withdrawn as suitable for settlement, are now practically completed in Westland region, and the work will be finalized early in 1927. In the Rotorua conservation region the internal lay-out of 10,800 acres of new plantation was surveyed, and periphery surveys of the boundaries of land recently acquired from the Department of Lands and Survey for afforestation purposes commenced. The boundary survey of the Westland experimental area of 7,760 acres and the survey of the access road to the Wesland Nursery were completed; and at the Blue Mountains, in the Canterbury-Otago region, the internal design of 1,000 acres of new plantation was completed, and a topographical survey of part of Hanmer Plantation commenced. Co-operation in Timber-stumpage Examinations and Reports for other Departments. Other Government Departments, Native Land Boards, and local bodies have availed themselves of tlie assistance and advice of the Service in connection with forestation and timber matters. The most important work of this nature was the valuation of the standing timber of the Taumarunui County executed for the Valuation Department, while thirty-eight other examinations over areas aggregating 16,519 acres were made for other Departments, &c. 2. FINANCE. The total cash receipts for the year from all sources was £152,550, a slight decrease compared with the year 1924-25. The State Forest Service expenditure under the vote for the year was as follows : —

State Forest Service Expenditure.

Diagram showing the Apportionment of each £1 of the Service Expenditure for the Fiscal Year ended the 31st March, 1926.

Comparison of the Forest Income and Expenditures tor the Period 1922—26.

(Management and operational) Fiscal Year ended Item. — 31st March, 31st March, j 31st March, 1926. 1925. 1924. £ £ £ A. Salaries .. .. .. .. .. .. 37,016* 31,429 30,686 B. Management and development of State forests .. ... 18,666 17,618 16,271 C. Forest-fire prevention and patrol (indigenous forest) .. 1,59] 1,557 1,977 D. Education: Reference library, publications, &c. .. .. 1,377 927 582 E. Forest research and products investigations .. .. 5,773 4,589 3,738 F. Afforestation: Plantations, nurseries, and general .. 83,158"|" 51,854 38,006 G. Acquisition of indigenous forests .. .. .. 10,785 106,067§ 4,548 H. Grants to local bodies, &c. .. .. .. ... 6,141:1". 257 2,496 164,507 214,298 98,304 * Includes all salaries of non-permanent officers previously included in items B and F. f Includes purchases of land for afforestation purposes, £17,764. j Includes payments to local authorities under section 17 of the Finance Act, 1924. § Includes £100,000 transferred to the Land for Settlements Account for the acquisition as a State forest of part Selwyn Settlement Estate, Mamaku Plateau.

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Counties' Share in State Forest Timber-sale IReceipts. In accordance with section J 7 of the Finance Act, 1924, whereby out of moneys received into the State Forests Account from royalties on or net proceeds of sales of native timber growing on Crown lands set apart by Proclamation as State forests or as provisional State forests one-fifth part is made payable to local authorities, the total sum of £6,141 13s. 4d. was, during the period under review, paid out of the State Forests Account to thirty-eight, local authorities. These counties have in most cases expended their subventions upon metalling and maintenance of roads contiguous to forests from which the timber lias been milled. The State forests have thus provided sums of money for improvements to backblock settlers' roads which from their remote situation and consequent unimportance when compared with many other county roads would have received only a small proportion of the funds at the disposal of the local authorities concerned. National Endowment Account's Share in State Forest Timber-sale Receipts. From the forested national-endowment land under the forest-management of this Service the National Endowment Account benefited by the receipt of the sum of £9,740 12s. 2d., being the amount due at the 31st March, 1925, under section 39 of the Forests Act, 1921-22, which provides for the payment to the National Endowment Account of one-half of the revenue derived from any national-endowment land comprised in a State forest remaining after the deduction of the expenses of the administration of that land as a State forest. 3. OPERATION. Timber-sales. During the period under review 79,009,000 ft. b.m. were produced by mills cutting State-forest timber, and the sum of £.130,132 was received from all timber licenses in force. A perusal of the

Hard Beech (Nothofagus truncata), Nelson.

following table discloses a steady increase in the receipts from the sale of timber, ending at the exceptionally high figure of £134,731 for the 1924-25 period. That the receipts from this source for the past year are only £4,599 below the phenomenal figures of the previous period must be accepted as conclusive proof that the timber-sales policy of the Service is giving satisfaction to those most vitally concerned —i.e., the sawmillers operating within State forests—while the aesthetic and waterconservation values of each forested area have been thoroughly considered and safeguarded before the merchantable timber thereon has been offered for sale.

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Note.—Receipts shown above for the periods 1920-2'.1 to 1923-24 do not include the half share of receipts paid into the National Endowment Account from State forests on national-endowment lands. Reference to the following graphs shows the quantities of the various species comprised in .Forest Service timber-sales for the last two years. The most outstanding feature is the very large increase in the quantities of rimu sold during the 1925-26 period compared with those of the previous year ; and., as this species is of lower stumpage value than kauri, totara, and matai, this increase in the quantities of rimu sold is to a certain extent responsible for the lower total value of the timber disposed of during the reporting period.

Statistics of the Service Timber-sales for Years ended 31st March, 1925-26. Quantities shown in Feet Board Measure.

Timber-export Regulations. The administration of the Regulations imposing Restrictions on the Export of Timber lias for some years past been carried out by the Department of Industries and Commerce. At the commencement of the fiscal year this work was placed under the control of the Service, and the changeover has been effected without friction and with apparent satisfaction to all interested parties. One or two breaches of the regulations occurred during the year, owing to certain shipments being made in excess of the quantites allowed by the respective permits. Upon investigation it was found that these were not intentional. While permits were issued for -the maximum amount allowed the actual exported quantities of rimu and beech were much blow the quota. The number of permits issued totalled 263, the majority of which were granted to sawmillers in the Westland region in respect of white-pine and rimu. Further information in regard to quantities, species, &c., of timber exported and imported for the year ended the 31st December, 1925, will be found in Chapter V and Appendix. Y. Forest-improvements. During the year regional efforts were concentrated on improvements to access to and within State forests. The expansion of the afforestation acreage has necessitated the formation of 15| miles of new roads and 67 miles of new fire-breaks ; while 73| miles of tracks provide increased access into remote State areas. Fencing has been increased by 17§ miles, and 2 miles of telephone-lines were erected. Improvements to officers' dwellings have gone on steadily, together with the erection of one ranger's cottage, additional rooms to one ranger station, and provision of a cookhouse at a permanent camp and extensive additions to office accommodation at Rotorua Station. One permanent wire suspension bridge was erected, giving access to a northern State forest.

Number Value of Timber Quantity of r£? el ? 8 , , a |Quantity cut. from Fiscal Year. ; of sold during the Timber sold im er icenses State Forests Sales. Year. during the Year. 111 yj!". 1 "" during the Year. £ Feet, B.M. £ j Feet, B.M. 1925-26 .. .. 65 80,565 73.659,000 130,132 ! 79,009,000 1924-25 .. .. 54 96,158 69,253,000 134,731 102,369,900 1923-24 .. .. 61 266,388 212,085,000 68,295 52,297,000 1922-23 .. .. 52 95,357 78,830,000 47,462 1921-22 .. 40 38,208 35,669,000 24,320 1920-21 .. 5 17,055 6,987,000 16,815

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Recreational Use of the Forests. So that the interest of all citizens in their national forest heritage may be increased by participation in the enjoyment of the beauty and health-giving resources of our incomparable native bush, the Forest Service encourages the use of the forest domain for relaxation and recreational purposes by granting permits to tourists, trampers, fishermen, hunters, &c., who are prepared to safeguard the native flora, fauna, and avifauna therein. That the State forests within a short distance from the chief centres of population are becoming increasingly popular as a rendezvous for the open-air-loving section of the people is shown by the larger number of applications received this year for permits to enter State forests. This has been particularly noticeable in the Wellington region, where eighty-three permits to enter State forests for recreational purposes (other than opossum-trapping) were issued during the year, and it is estimated that many thousands of people find relaxation and pleasure by picnicking, tramping, and fishing within the precincts of State forests in various parts of the Dominion. The Service, considering the increasing popularity of motor transport with the community at large, confidently looks forward to. the future when the forest domains will occupy an assured position as public playgrounds. Automobile associations, tramping clubs, tourists, and the general public are invited to apply to the Conservator of Forests in their respective regions for information concerning the use of the State forests for this purpose. Honorary Forest Rangers. Once again the Service places on record the valuable services rendered by the corps of honorary rangers, which now totals seventy-seven, an increase of eleven over the previous year. Actuated solely by s. desire to protect the forest a.nd its wild life from fire, trepass, illegal shooting, and other dangers, these gentlemen in and out of season carry out their onerous duties in a highly commendable manner, and the Service gladly takes the opportunity to acknowledge its debt of gratitude to its volunteer co-workers in the cause of forest-conservation. 4. FOREST-PROTECTION. Fire Districts. For the last four years the creation and operation of fire districts has formed an important feature in the forest-fire policy of this Service. The results obtained justified provision being made

"Prevent Forest Fires —it pays."

iii the Forests Amendment Act, 1925, for their extension to provide, on the application of the owner or owners, protection to forests on private or other lands of an area of not less than 200 acres. It is anticipated that full advantage will be taken by interested parties of the privilege so extended, and to meet the demand for information a special booklet, Circular No. 8, entitled " Forest Fire Districts : Principles of Application and Use in the Control and Prevention of Forest Fires," is now available without charge from the Director of Forestry or any Conservator of Forests. Fire-break Burners. The efficiency of plantation-maintenance practice has been greatly increased by the utilization of Hauck burners at the principal stations for burning off fire-break and roadside vegetation. The work of the machine has fully demonstrated its value on tussock and slashed scrub land, both as regards efficiency and reduction of cost of this operation.

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Spark-nullifiers. Exhaustive trials, made under a variety of working-conditions and in co-operation with sawmilling operators, enabled the Forest Service last year to approve of the Cheney Spark-nullifier as the most satisfactory apparatus of its kind. Use of this spark-nullifier, under the Spark-arrester (Forests Act) Regulations, 1925, became compulsory in all State forests and fire districts throughout the Dominion during the periods on and from the Ist day of October in any one year until the 30th day ofJApril in the following year, and thirty-two nullifiers were installed during the period under review. Forest-fires. During the reporting year no material damage through fires has been sustained by forests under the control of the State Forest Service. The sum of £67 represents the monetary loss in indigenousforest areas, while the damage to State plantations is estimated at £20. While the losses suffered on State forests through fires are practically negligible, such has not been the case in privately owned plantations, where 1,016 acres were destroyed. In the Auckland conservation region fires have been responsible for the destruction of 27 acres of vigorous three-yea.r-old pines on private plantations, and in the Nelson region for the loss of 529 acres of six- to eight-year-old and 10 acres of twelve- to fourteen-year-old plantations established by private enterprise, while in the Canterbury region 200 acres of thirty-four-year-old eucalypts and 250 acres of three-year-old pines of similarly owned plantations were destroyed by fire. During the latter part of the season a system of psychrometer readings was put into force, and returns from these readings show the lowest relative humidity for the Dominion at Hanmer (40 per cent.), with Nelson a close second (42 per cent.). These readings will be carried out throughout the coming season and will enable the Service to obtain more complete data on our fire seasons and hazards.

Analysis of all reported Forest-fires on and contiguous to State Forests.

5. FOREST WILD LIFE. Wild-life conservation denotes the preservation of birds and wild animals for the enjoyment and benefit of the people or for the production of fur or food. Conservations means use —not unrestrained use, but regulated use which will yield the highest public benefits without impairment of inherent productive values. Deer. Since its inception the Forest Service has consistently advocated the control of deer, which have increased at such an alarming rate that their depredations in farming lands and forests are now widely acknowledged. All Conservators report an increase in the number of these vermin, and the Service is more than ever of the opinion that protection on all species of deer should be removed for a period of at least three years, and that the payment of bounty on killed deer should be continued during that time.

Forest-fires: Number, Character, and Area. Money Value of Forest-wealth destroyed. Forest- : C0 IU-gion!° n Number T1^ P ¥ nd Cut "SJ and So t ™^ ud v,T?™dnwr Merchantable Valuable Total detected. JESS!) ' E^roWth ' Value ' S.F. Priv. S.F. Priv. S.F. Priv. S.F. Priv. S.F. Priv. S.F. Priv. S.F. Prlv. S.F. Prlv. £ £ £ £ £ £ Auckland.. 7 336 Nil 400 80 1,571 73 11,515 157 13,513 Nil 1,800 1,800 Rotorua .. . . 128 Nil Nil Nil 20 Nil 100 Nil 120 Wellington 4 53 Nil 10 607 135 Nil 3,313 607 2,282 .. 15 15 Nelson-Marl- 2 129 40 Nil 110 500 Nil 9,380 150 10,419 40 .. 27 .. 67 borough Westland .. Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Canterbury- Nil 3 Nil 86 Nil Nil Nil 213 Nil 900 .. 500 500 Otago Southland 1 12 1 Nil Nil 214 Nil Nil 1 214 5 .. 4 . . 9 Totals 14 661 41 496 797 2,440 73 24,521 915 27,448 45 2,315 31 .. 76 2,315 Cost of Protection, Prevention, Detection, and Control of State Forests. Origin of Forest-flres. Forest- : C °EegIo"° n wages Cost. equipment Loc g™f on Total Cost. clearing Unknown Men) c ° st - ! tors. Sportsmen. Operators. Agencies. £ s. d. £ s. d. £ s. d. £ s. d. S.F. Priv. S.F. Priv. S.F. Priv. S.F. Priv. Auckland 16 « j 738 0 0 4 6 0 117 0 0 859 6 0 3 .. 3 22 .. 296 1 18 Rotorua . . 10 gg 850 0 0 Nil Nil 850 0 0 124 .. 4 Wellington 3 11 50 0 0 2 3 0 62 0 0 114 3 0 1 .. 1 .. 2 44 .. 9 Nelson-Marl- 22 jo 4 0 0 2 3 0 52 0 0 58 3 0 2 .. 127 2 .. borough S u Westland .. 60 104 0 0 2 3 0 4 0 0 110 3 0 Canterbury- 18 549 0 0 110 0 0 Nil 659 0 0 1 .. 2 Otago .gj° Southland.. 8 £ 194 0 0 2 3 0 64 0 0 260 3 0 12 1 .. Totals 137 .. 2,489 0 0 122 18 0 299 0 0 2,910 18 0 4 .. 4 24 2 604 4 33

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Concrete evidence of the attitude adopted towards this pest by settlers residing near infested areas was recently furnished to the Service in a peculiar manner, when the Crookston farmers, who have suffered severely from the depredations of fallow deer for many years, urged delay in the State forestation project in the Blue Mountains in South Otago on the grounds that the exotic forests so created would become a refuge for these animals. An impression of how serious the deer menace has become in this district may be obtained from the fact that out of 5,877 deer-tails collected by forest officers in the South Island for the purpose of payment of the bounty of 2s. per tail, 3,890 tails were received from the Blue Mountains area alone. Native Birds. Recognizing that without the indigenous forest most of the native land-birds cannot live, and that many tree species are dependent on the indigenous birds for the dissemination of their seeds and their protection from invading insects, the Forest Service lias endeavoured to assist the New Zealand Native Birds Protection Society in its laudable work of preserving our native birds. All forest-conservation regions report that the 1925-26 season has been one of the worst seed years on record, and as a result of this shortage of food-supplies a dimimution in the number of native birds of some species may be expected. Commenting upon this subject, the Conservator of the Auckland region states : " The failure of the taraire, hinau, and nikau berries this season in the Waipoua State Forest has been the cause of a very severe famine among the native pigeons. Dead birds have been quite a common sight in the bush, and it is quite certain that many hundreds of birds must have perished during the months of November, December, and January." In order to attract native birds to the exotic plantations where they would have freedom from interference the Service has. under consideration the question of the introduction of nectariferous shrubs and indigenous fruiting-trees suitable for this purpose. Opossums. During the trapping season 1925 a total of 720 licenses were issued, and 145,778 skins were taken largely from State forests, and the share of license fees and royalties credited to the State Forest Account was £4,073 15s. Id. In the seasons of 1923 and 1924 the number of opossums trapped were 109,905 and 95,639 respectively. From these figures it will be seen that the trapping of this important and valuable fur-producing animal has assisted in reducing unemployment during the slack period of the winter months. Reports of illicit trapping and illegal disposal of skins in certain districts have been received, and in this connection two offenders were convicted and fined during the year, Police Court proceedings are pending in one district, and general trapping operations will be under close surveillance by the Service during the current season. Recognizing that a. future profitable industry might be ruined at the outset by overtrapping and consequent extermination of the opossum in certain districts, it has been the practice of the Forest Service to obtain, at the commencement of each season, a report from the various conservation regions with a view to recommending, where necessary, closed seasons. Reports received indicate that, generally, the opossum has not been overtrapped, but in some districts the time is approaching when it will be desirable, in the interest of conservation, that closed seasons be observed. Wild Pigs. The Departments of Agriculture, Lands, and the Forest Service again assisted to alleviate the wild-pig nuisance in certain parts of the North Island. Up to the 30th November, 1925, the Forest Service, in its capacity as organizing and controlling agent, collected and paid out the bonus upon 17,227 wild-pig snouts in the Wellington conservation region. Arrangements have been made whereby all persons who presented wild-pig snouts for counting and payment before the 30th November, 1925, but after the exhaustion of the appropriation, will be paid the bonus during the current financial year. During the latter part of the period under review the system of granting a bonus for the destruction of wild pigs was extended to cover a portion of the Opotiki County, with the result that 2,026 wild-pig snouts were destroyed in tha>t district. The payment of the bounty has been responsible for the total destruction of 19,253 wild pigs in the aforementioned infested areas. For the current year the Departments of Agriculture, Lands, and the Forest Service have again joined financial forces to continue operations for the destruction of wild pigs in the North Wellington, Taranaki, and Opotiki districts. 6. ESTABLISHMENT OE ARTIFICIAL FORESTS. State Forestation. The State's annual contribution to the Dominion's artificial forest reserve has again exceeded that of previous periods ; 15,964 acres of new State-forest plantations were formed, and the total area, planted in trees from the commencement of State-forestation operations in 1896 up to the 31st March, 1926, aggregates 78,953 acres. The waste farming pumice lands of the Rotorua and Taupo Counties are now growing a timber crop on 55,053 acres, while the acquisition of over 55,000 contiguous acres for tree-growing purposes will further assist in the profitable utilization of this poor land, and its conversion from a wind-swept,-bracken-fern, manoao, manuka covered, unproductive area into a huge State timber farm with splendid potential values. The balance of the State plantations, with the exception of Puhipuhi -and Tangimoana, are situated in the South Island, and are more particularly described in the following summary : —

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Summary of Operations on State Plantations during the Year ended 31st March, 1926.

Increased inquiries for advice upon tree-growing problems, increased sales of tree-seeds and nursery stock, and 8,11 increase in the number of examinations made for intending planters, all point to the Dominion's ever-widening interest in the business of tree-growing. Forest Service sales of young forest-trees to farmers, proprietary companies, local bodies, and others reached the new level of 4,540,176, exceeding the previous highest recorded sales of 1924-25 by 1,708,244, while domestic and overseas sale of tree-seeds rose to 2,692 lb. If planted 8 ft. apart the trees sold by the Service would be sufficient for the establishment of 6,676 acres of artificial forest. Tree and tree-seed disposals to overseas organizations and to farmers, settlers, local bodies, proprietary and co-operative companies, &c., from State nurseries are exposed as follows : —-

1919 to 1926.

3—C. 3.

,, , , i Total Area Forest Plantation. um er o lees New Area planted. ! planted in Trees, planted. ! ig96-1926. Acres. Acres. Whakarewaresffa .. .. .. .. .. 8,037 Waiotapu .. .. .. .. .. .. 7,010 Kaingaroa .. .. .. .. 6,678,080 10,803 40,006 Puhipuhi .. .. .. .. .. .. 1,200 Conical Hills .. .. .. .. .. .. 3,533 Pukerau .. .. .. .. .. .. 573 Dusky Hill ,. .. .. .. .. .. 746 G-reenvale .. .. .. .. 187,000 275 2,926 Blue Mountains .. .. .. .. 691,325 980 980 G-immerburn .. .. .. ., .. .. 88 Naseby .. .. .. .. 62,000 69 2,366 Hanmer Springs .. .. .. 923,780 1,358 5.591 Balmoral .. .. .. .. 1,495,320 2,179 4,667 Raincliff .. .. .. .. .. .. 206 Westland Forest Experiment Station .. 116,800 142 482 Experimental group .. .. .. .. .. 15 Dumgree .. .. .. .. 58,000 85 342 Tangimoana .. .. .. .. 49,765 73 185 Totals .. . L .. ' 10,262,070 15,964 78,953 Forest-extension.

v | Trees for planting. Forest-tree Seeds. Year- | (Number.) ' j (Weight in Pounds.) _ J _ _ _l I - ■ | 1926 4,540,176 2,692* 1925 2,831,932 2,529* 1924 . 1,839,512 618 J923 j 1,475,581 746

Y Trees for planting. Forest-tree Seeds. (Number.) (Weight in Pounds.) J I . 1922 897,552 ! 436 1921 j 520,702 240 1920 j 277,235 130 1919 420.412 j 132

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7. PUBLIC RELATIONS. Schools Forestry. The development of " young New Zealand " along the lines of forest-lore and tree-planting knowledge has been one of the most important branches of the year's Schools Forestry activities. Enthusiastic response has been made to the appeal sent to the various educational authorities for co-operation in this work, and results during the past season have been most encouraging. Tree nurseries in 518 schools throughout the Dominion have been established, and 1641b. of tree-seeds, in addition to 37,525 young trees, were provided free of charge by the Forest Service for planting purposes by scholars. Inspectors and agricultural instructors from the Education Department, together with Forest Service officers, will hold conferences during the 1926 Easter vacation at Rotorua and Hanmer Springs for the purpose of discussing and co-ordinating a programme of future extensions in the forestry-in-schools movement and enabling the officers of the Education Department to personally inspect nursery and plantation procedure. The inclusion of a " Schools forestry" section amongst the exhibits at the Hawera, Waikat.o, and Wellington Shows, and the presentation of school forestry shields for competition at these shows, has assisted in popularizing the movement amongst the school-children. The Otakeho School has the honour of holding the G. Symes arid Co. (Limited) School Forestry Shield, competed for at the Hawera. Winter Show, and the Matangi School was successful in winning the Ellis and Burnand (Limited) shield at the Hamilton Show. Shields have also been presented by the Wellington Timber Merchant's Association and the Otago Brush Company for competition in the Schools Forestry Section at the winter shows in their respective provinces.

Forest Service Interior Display: New Zealand and South Seas Exhibition, Dunedin, 1925-26.

Full economic use of the knowledge gained by school-children in the raising of forest-trees, and the utilization of the young trees themselves, demand the extension of the scheme to include the establishment of school endowment plantations. As the majority of schools have not available areas of land suitable for this purpose, the Forest Service has formulated a scheme whereby certain lands contiguous to schools should be acquired as endowment areas and vested in one or more schools, which will carry out the formation of the forest and share in the proceeds. The educational and financial returns which will accrue to the schools participating and carrying out the scheme will rest with the Education Boards, the Forest Service 'being at all times willing to co-operate and undertake responsibility on the technical side. The proposed scheme is now under consideration by the Education authorities. The New Zealand and South Seas Exhibition. Housed in an imposing log structure the Forest Service interior display at the above exhibition was one of the features of the New Zealand Government Pavilion. Exhibits of paper made from New Zealand woods, of furniture, panelling, and flooring in silver-beech, of timber cut from native and exotic trees, and of photographs and transparencies illustrating the highly diversified operations of the Forest Service, formed the main items of interest in the interior display. In the grounds immediately adjoining the Government Pavilion an extensive tree nursery containing seedlings of the exotic species raised by the Forest Service for tree-planting purposes, and equipment demonstrating the simple means by which the durability of fencing-posts, house-blocks, &c., may be increased by their treatment with creosote, attracted the attention of thousands of farmers, landowners, and other interested visitors to the Exhibition.

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CHAPTER IV.—RESEARCH AND EXPERIMENTS. ]. FOREST-MANAGEMENT. Forest-management—broadly defined as the application of forestry in the conduct of the business of forest-production —to be carried out in a definite and systematic manner requires an exact knowledge of the fundamental factors affecting the forest and the growing stock therein. Collection of data concerning growth and yield of exotic timbers established in the Dominion has made steady progress during the period under review, thirty-six yield tables covering seventeen species of conifers being constructed. Established plantations in the North Island have now reached the point where systematic control is possible. The detail inventory of the 8,500-acre Waiotapu Forest Plantation, embodying yield tables and volumes of timber by both diameter classes and species was completed, together with the field-work of a similar stock-taking of the 9,940-acre Whakarewarewa Plantation. Valuable data concerning adaptability, growth, and yield of naturalized timber-producing trees grown under forest conditions in New Zealand has been obtained from these investigations, which will be continued during the current year in other State plantations. Initial examinations preliminary to the establishment of planting working-plans were inaugurated during the year for the Riverhead, Kaingaroa, Wellington, Sounds, Nelson, North Canterbury, and Southland projects. An area of 4,000 acres, portion of the current season's planting programme at Haumer Springs, was mapped topographically, so that the lay-out of roads and fire-breaks, and the distribution of planting, could receive the necessary consideration. Topographical surveys of all areas to be planted during the 1927 season arc being executed during the current year. Exhaustive preliminary studies in the indigenous forest relating to the rate of growth of the important species of native taxads, totara, matai, silver-pine, miro, kaikawaka, were brought to completion. ■2. ECOLOGICAL RESEARCH. Tawa Forests. During the year 1925 26 Dr. L. Cockayne, F.R.S., Honorary Botanist to the State Forest Service, continued his investigations of the tawa (Beilschmiedia tawa) forest, studying such (I ) near Lake Rotoma, (2) in the Urewera country, (3) in the neighbourhood of Ohakune, (4) near Wellington, and (5) in Marlborough-N elson. The investigation —quite complex in character —is not yet complete, but it is hoped that sufficient knowledge of the subject will be acquired to enable a fairly full report to be furnished at the end of 1926. Up to the present the following facts, amongst others, have come to light: — (1.) That the tawa forest is a climax association following after that group of associations in which taxads, or even kauri, play a prominent part; (2.) That this final dominance of tawa is owing to that tree being essentially shade-tolerating, whereas taxads and kauri require far more light for their proper development; (3.) That, compared with Nothofagus, tawa is of slow growth, but in this respect, however, probably faster than most of the forest-trees, the kauri excepted ; (4.) That tawa forest left to itself will regenerate naturally into tawa ; (5.) That the undergrowth is usually too dense for the employment of rapidly growing exotic trees for restocking the forest, but that it may be possible, subject to future investigations, to use kauri for that purpose, while Nothofagus can certainly be established where the light is suitable. During the current year Dr. Cockayne will pay particular attention to the moss and liverwort (bryophyte) content of New Zealand forest in general, since these plants function as seed-beds and as recorders of climate, and an accurate knowledge of the species present in the associations is fundamental in forest classification. It is proposed to send specimens, of which a good many have already been procured, to British and American specialists for their determination—a necessary preliminary towards their ecological study from the standpoint of silviculture. 3. FOREST ECONOMIC RESEARCH. Ever-increasing values of forest-products and rapidly decreasing stocks of native timber demand careful investigation into the use of timber, its supply, and all other factors pertaining to its national economic status. Mr. F. E. Hutchinson, B.Sc.F., of the School of Forestry, Canterbury College, has undertaken such an investigation on behalf of the Forest Service, and completed " The Economic Forest Survey of Canterbury," Part I, which deals principally with the forest resources and the use of forest-produce in that province. The part received is splendidly written, contains a fund of valuable statistical data, and is illustrated by forty-three excellent full-plate photographs, together with a large number of graphs and maps. Building on the results of the investigations in Part I, a forest policy for Canterbury—a plan of future action having for its objective the satisfaction of the forest-produce requirements of the community —will be formulated by the Canterbury School of Forestry, and will comprise the second part of " The Economic Forest Survey of Canterbury."

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4. SILVIOULTUKAL INVESTIGATIONS. Westland Forest Experiment Station. The experimental work in connection with restocking the cut-over indigenous forest lands near Hokitika with exotic species was further advanced by the planting of 109,268 trees on 130 acres, and the total area restocked, including 12 acres on dredge tailings, now stands at 482 acres. The principal species planted were insignis pine (Pinus radiata), Pinus muricata, Pinus laricio, and Pinus pinaster, while trial lots of Cupressus macrocarpa, Cupressus Lawsonicma, Cryptomeria japonica, Sequoia sempervirens, Populus fastigatd, Populus monilifera, Gunninghamia sinensis, Eucalyptus viminalis, E. Macarthuri, E. obliqua, E. regnans, and E: Gunnii were also planted in selected positions located in the detail surveys executed prior to planting operations. Two-year transplants, instead of yearling trees, have been used during the past planting season, so that they might compete upon more favourable terms with the vigorous growth of fern and scrub, which has necessitated periodocal clearing in order to save the young trees from suppression. The establishment of sixteen sample plots permits the compilation of accurate and valuable data relating to the growth and adaptability of the various species introduced, and the ultimate planting of only proved acclimatizable timber-trees. Recognizing the importance of this experimental work to the whole of the Westland Province, special precautions against loss by fire have been taken. In addition to the usual lookout and patrol system, water-holes have been dug at short intervals along the adjoining niuch-frequentedjtourist road from Hokitika to South Westland, and fire-buckets and portable fire-fighting pumps installed.

The Ubiquitous Insignis Pine (Pinus radiata): Planted in 1924 on Dredge Tailings near Hokitika.

Experimental Planting on Dredge Tailings. As tlie results obtained from the experiments undertaken at the request of the Hon. G. J. Anderson, Minister of Mines, of planting exotic species on dredge tailings at Rimu, near Hokitika, were so successful a further 7,532 trees of the same species were planted on 12 acres of dredge tailings during the recent planting season. It is yet too early to comment definitely 011 the recent planting, and results will be available next season from the sample plots established 011 the area. Rangitikei Sand-dune Experiment Station. This station was established 011 an experimental basis in May, 1921, for the purpose of the Forest Service developing a definite procedure of construction, cost, method, and result for reclaiming and bringing into national production the several hundred thousand acres of New Zealand's wandering sand-dunes. Building upon the results and experiences of past years, excellent productive work has been accomplished at the station during the reporting period, when 222 acres of marram-grass and 73 acres

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of trees (principally insignis pine) were planted. Marram-grass has now been planted upon 673 acres of sand-dunes, on 185 acres of which exotic trees have been established. The tree nursery at Tangimoana produced 201,720 trees, and, as a result of extensions, will provide all trees required for sand-dune reclamation work at this station during the 1927 planting season. The übiquitous insignis pine has proved most adaptable to sand-dune conditions, and experimental sowing of Pinus canadensis, P. echinata, and P. torreyana have been made for the purpose of testing their suitability under prevailing conditions. Sand-sedge (Carex pumila) and silvery sand-grass (Spinifex kirsutus) were further experimented with, the former materially assisted the rising of low portions of the dune complex, which are flooded in winter and early spring, and the latter in blocking up wind-channels. Statistical Growth Studies of Exotic Trees. Growth studies of naturalized trees were continued, and by the addition of thirty-six studies completed during the period under review forty-three yield tables are now available. At Hillersden, Marlborough, one growth study of insignis pine was made, and two yield tables of Larix europea were compiled at Hanmer by rangers attending the instruction course. Thirty-four tables were prepared in the Rotorua plantations of sixteen species, comprising Pinus strobus (2) ; P. ponderosa (3) ; P. austriaca (3); P. laricio (5); P. Jeffreyii (1); P. radiata (4) ; P. rigida (1); P. resinosa (1) ; P. Murrayana (2); P. Lambertiana (1); P. teocote (1); P. pinaster (1); P. taeda (1) ; Larix europea (3) ; Pseudotsuga Douglasii (1) ; Cupressus Lawsoniana (1). (The number of sample plots in each species being shown in brackets.)

Insignis Pine (Pinus radiata), Four Years old, firmly established on Fixed Sand-dunes near Rangitikei River Heads.

Based upon the data obtained from yield studies, the field-work of a complete inventory of the Whakarewarewa and Waiotapu plantations was carried out. Calculations connected with the Waiotapu area have been completed, with the result that the total volume of all species (3 in. D.B.H. and over) has been estimated at 28-9 million cubic feet of timber. Calculations connected with the Whakarewarewa area have not yet been finalized. 5. FORESTATION STUDIES. Forest Service efficiency in tree-growing technique has been further improved by investigations and experiments in nursery procedure and cultural practice, and the replacement of man-power by machinery. Weed-eradication Experiments. Further trials of chemical weeding by the application of zinc-sulphate solution of various strengths were carried out at three stations. Weak solutions of the chemical at the rate of 8 grams and 6 grams per square foot of bed were made in two series of three dilutions (15-2 oz. in I3|, 6f, 3§ gallons on 54 square feet of bed), while dry applications of the sulphate were also experimented with. Results have so far been varied, probably due to abnormal difference in climatic conditions experienced. Observations of tin; effect of treatment on these beds will be continued during the current year.

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Trials on a larger scale were initiated with Pabco-Thermogen paper mulch as a weed-reducer. Results were, on the whole, unsatisfactory —in most cases the efficacy of the mulch in smothering weeds was lost by the impossibility of fixing the paper so as to adhere closely to the ground. The effect of the mulch on plant-growth varied —in one case seedlings touching the paper appeared to be " burnt," while better plant-growth was observed in some lines treated with mulch. Generally speaking, however, no great difference in growth was found. Soil analysis made showed that no " souring " of the soil was produced by the application of the mulch in the lines. The use of sawdust as a cover on seed-beds was again demonstrated as effective against weedgrowth, but this method is only economically possible where a local supply of suitable material is available. Nursery-line Method of Propagation. Building 011 the experimental work of past years, all nursery stations adopted the lino method for propagation of the following species : Pinus radiata, P. muricata, P. ponderosa, and P. laricio. Seedsowing, weeding, and cultivating by power-driven implements was carried out at Hanmer Springs Nursery with such satisfactory results that these implements will be introduced into the other State nurseries during the current year. Wrenching—one of the most important factors in successful treepropagation —has received particular attention with reference to the frequency, season, and age at which the best results may bo obtained from this operation. Nursery Growth ard Season of Sowing Trials. Standardized trials for the purpose of collecting data relating to the best time for sowing seed of various species have been carried out at five nurseries under different climatic conditions. Seeds of sixteen species were sown at periods of either two or four weeks throughout the year, and valuable indications were obtained from these trials, which will be repeated to obtain corroborative data. Indications from the extreme north and to the south of the Dominion point to better results being obtained, from many species by earlier sowing. Germination and plant-production trials were incorporated with these seasonal experiments for the purpose of obtaining data for formation of future plantations in newly acquired areas. Experiments against Grass-grub. Damage by the grass-grub has again occurred in South Island nurseries, and the Service has endeavoured to prevent attacks and protect tree crops from the ravages of this grub. Experiments were carried out with the aim of arresting the flights of beetles in the vicinity of seedling crops and thus preventing egg-deposition on the area. Screens of plain calico provided with a drowning-trough along the base and of calico covered with an adhesive mixture were placed as barricades to the prevailing direction of flight from adjoining badly affected grass-land. Negative results, however, were obtained. Establishment of Plantations by Direct Seeding. Extensive experiments in direct-seeding methods have been carried out at Waipoua, Kaingaroa Plains, Hanmer Springs, Blue Mountains, and Westland Experiment Station. Spot sowings, using two or three seeds on prepared and unprepared areas, were made at month intervals on the Canterbury - Otago plantations for the purpose of collecting information concerning the influence of weather and soil conditions upon this method of tree-propagation. Sowing on prepared spots has from present indications been a failure, the seed having been either eaten by birds and mice, or, where germination has taken place, been nipped off by birds, hares, and rabbits, which are attracted by the disturbance of the soil. Seed scattered on unprepared land has given best results, but germination has been lowall through. The following table discloses the percentage germination of certain species experimented with :—

Forest Demonstration Plots. Trial plots, aggregating 9 acres, of insignis pine, maritime pine, Douglas fir, and white stringybark (Eucalyptus eugenioides) were established 011 gum land at Waipoua, North Auckland. With the exception of Douglas fir, excellent results, as shown by the low mortality per cent, (insignis pine 6 per cent., maritime pine 3-4 per cent, white stringy-bark 7 per cent.) were obtained. Mr. Arthur McKee, of Tasman, Nelson, generously donated an area of 5 acres of freehold land to be utilized bv the Forest Service as a forest demonstration plot. Eleven species were embraced in the planting programme, and mortality percentages of the young trees were : Pinus ponderosa, 23-7 per cent. ; P. laricio, 13-2 per cent. ; P. Banhsiana, 10-5 per cent. ; P. pinaster, 8 per cent. ; P. rigida,

I I Balmoral. Hanmer. Blue Mountains. Species. Sown. ! Prepared Unprepared Prepared Unprepared Prepared . Unprepared Spots. Spots. Spots. Spots. Spots. I Spots. ! 1 I ! Per Cent. Per Cent. Per Cent. Per Cent. Per Cent. Per Cent. P. radiata .. 1925 0 4 0 24 41 21. P. larioio .. 1925 0 4 0 8 0 33 P. ponderosa .. 1925 0 5 0 4 0 13

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3 per cent.; P. patula, 844 per cent. ; Cupressus macrocarpa, 10-5 per cent. ; C. Lawsoniana, 5-3 per cent.; Pseudotsuga Douglasii, 0 per cent. ; Cryptomeria japonica, 7-5 per cent.; Cunninghamia sinensis, 25 per cent. The adaptability of the various species to the climatic conditions of the district is demonstrated from such plots, which are consequently of the utmost value to intending planters residing in their vicinity. Fire-pumps. A Pacific fire-pumper has been added to the plantation fire equipment at one South Island station, and trials under various conditions have proved its efficiency for use where a local water-supply is available. A'cne-man portable fire-pump designed by an officer of this Service has been used in several regions, and has proved its practical utility.

Insignis Pine (Pinus radiata) established by Direct Seeding, November, 1921, Kaingaroa Plantation (near Rotorua).

6. FOREST ECONOMY. Forest Products Investigation. Wood waste is a forest problem in the same class with timber-growing; whereas trees grow slowly, lessening wood waste gives immediate results, and a tree saved is a tree grown overnight. It is, therefore, not sufficient to create State forests and plantations for timber-production and to assist private owners to keep their forests and plantations productive. It is equally necessary to build up a practical science of wood-use —to determine the right use for each and every wood, to make one house do the work of two by prolonging its life, and to lessen waste in forest and sawmill. As the Government's contribution to these problems, the Forest Service is seeking to materially expand its attack on timber waste. Demonstration by means of a well-equipped laboratory is the only effective means of securing sustained progress in manufacturing, seasoning, wood-preservation, and utilization technique, and a forest-products laboratory is urgently required to centralize and extend the work now carried out in the Universities and other co-operating institutions. The wide range of forest-products studies carried out in the past year permits mention only of a few typical results. The completion of strength tests on green or air-dry material of eight species of native and exotic woods, including matai, miro, white-pine, rimu, kauri, hard beech, insignis pine, and Douglas fir, has advanced the testing programme of the Forest Service to such a point that a manual of mechanical and physical properties, together with recommended working-stresses and structural grading rules, will shortly be made available. By adopting international testing methods it has been possible to corelate the results of the local studies with similar investigations in the United States of America, Canada, and India, and to confirm the laws first established by the Madison Forest-products Laboratory of the U.S. Forest Service, relating specific gravity to the various mechanical properties. It is now possible, as a result of this work, to predict within close limits the mechanical and physical properties of woods based upon determinations of their specific gravity and structural composition. Strength tests of full-sized telephone-poles were extended to include larch (Larix euro-pea), drooping-gum (Eucalyptus Risdoni) and white stringy-bark (E. obliqua).

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The redesign of butter-boxes, made possible by the installation at the Canterbury testing-station of a modern revolving drum-box testing-machine, produced a package cheaper than the previous box, yet almost fourteen times stronger and using 15 per cent, less timber. Much valuable data, which became available, regarding improved air-seasoning practices has been broadcasted to sawmillers and wood-users, and is already being applied throughout the Dominion. The installation of the proposed experimental dry kiln, however, awaits the establishment of the proposed forest-products laboratory. The study of shrinkage in wood and of microscopic structure is fundamental to all wood-drying practices, and continued progress in both studies is recorded. Suitable open-tank creosote treatments for fourteen species of native and exotic timbers were developed, and a standard specification for vertical-retort creosotes prepared in co-operation with the Dominion Laboratory and local manufacturers. New Zealand is now in a position to meet all demands for the best grades of creosotes and carbolineums for many years to come. In co-operation with the Imperial Institute, London, a study was completed of the deresinating and pulping of kauri wood, a good grade of both resin and paper being produced. The study demonstrated that kauri-fibres are amongst the longest of the commonly known softwoods, being exceeded only by those of redwood and Douglas fir. With a view to undertaking extensive thinning the State plantations, an economic survey has been instituted to determine the possibility

Revolving-drum Box-testing Machine installed at School of Engineering, Canterbury University College, Christchurch.

of pulping the extracted material. The results secured will have far-reaching effects upon the establishment of a pulp and paper industry in New Zealand. Continued attention was given to insect and decay problems. Mr. D. Miller, M.Sc., Entomologist, Department of Agriculture, issued on behalf of the Forest Service a treatise 011 the forest and timber insects of the Dominion, and continued his survey of the insects introduced on imported poles, piles, and other wooden products. The complete removal of bark from poles and piles before shipment from Australia, a measure undertaken voluntarily by pole-users on the advice of the Forest Service, has materially reduced the number of insects introduced by these timbers. Studies under Way mid Investigations. Altogether over thirty major investigations are in progress. These include : Basic mechanical properties of woods grown in New Zealand ; treatment of wood by non-pressure processes ; sawmills and woods-waste survey ; grading rules and working-stresses for structural timbers ; cross-arm tests ; pole tests ; prevention of sap-stain ; development of box specifications ; ply-wood tests ; microscopic structure of woods ; resistance of woods to borer attack ; shrinkage of wood ; wood requirement of secondary wood-using industries ; kauri-bleeding ; tests of manufactured carriages and wagon parts ; air seasoning of wood ; service tests of wooden products ; wood-preservatives ; pulping and paper-making with New Zealand woods ; statistical survey of sawmilling industry; destructive distillation of woods ; tests of box-bindings ; introduction of foreign insect pests ; nail-holding power of New Zealand woods ; woods for butter-boxes ; utilization of little known species.

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CHAPTER V.—GENERAL. 1. REPORT OF THE TIMBER TRADE FOR THE YEAR ENDED 31st MARCH, 1926.

Production. The following tables, showing the reported output in feet board measure of the various species of timber from New Zealand sawmills during the years ended 31st March, 1923, 1924, and 1925 have been compiled from figures supplied by the Government Statistician.

Reported Production of Sawn Timber by Species.

The sawmill production as reported to the Government Statistician was approximately 344 million feet b.m. for the year ended 31st March, 1925. This represents an increase of 8-5 per cent, over the reported production for the previous year, and constitutes the third highest reported annual cut by the industry, being exceeded only by the production for the years ended 31st March, 1907 and 1908, which were 432 million feet b.m. and 414 million feet b.m. respectively. The production for the year ended 31st March, 1926, is estimated at 350 million feet b.m.

Graph showing Production of Rough-sawn Timber for Years ended 31st March, 1923, 1924, 1925.

Graph showing Trend of Sawn-timber Production by Forest Conservation Regions for the Period 1886 to 31st March, 1925.

The trend of regional timber-production for the period 1886 to 1925 is shown in the accompanying graph. The statistics were compiled for provincial districts, which correspond closely to forest-conservation regions. Auckland and Rotorua regions combined, together with Gisborne (i.e., Auckland Province), not only maintained the premier position, but increased their cut over that for the previous reporting period (i.e., the year ended 31st March, 1924). As predicted in last year's annual report of the State Forest Service, Westland replaced Wellington as second on the list. This trend reflects the wider exploitation of the South Island markets consequent upon the opening of the Otira Tunnel. The Auckland and Taranaki regions, too, are absorbing increasing quantities of South Island timbers. The relative position of the other timber-producing regions remained unaltered. With the exception of totara and matai, the production of all timbers during the year ended 31st March, 1925, was greater than for the preceding period. The principal increases included 14J million feet b.m. of rimu and 9 million feet b.m. of white-pine. Hardwoods, although comprising 40 per cent, of the forest, still form less than 3 per cent of the annual_cut.

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Species. 1923. 1924. 1925. I i Feet, B.M. ! Per Cent. Feet, B.M. Per Cent. Feet, B.M. Per Cent. Kauri .. .. 22,461,000 7-38 19,743,000 6-23 22,892,000 6-66 Rimu .. .. 155,628,000 51-13 181,094,000 57-12 194,565,000 56-52 White pine .. 66,088,000 21-72 56,699,000 17-88 66,539,000 19-38 Totara .. .. 20,844,000 6-85 18,904,000 5-96 18,507,000 5-38 Matai .. .. 23,747,000 7-80 24,326,000 7-67 23,392,000 6-79 Beech .. .. 5,227,000 1-72 6,529,000 2-06 7,439,000 2-16 Insignis pine .. 7,684,000 2-52 7,386,000 2-33 7,706,000 2-24 Other .. .. 2,674,000 , 0-88 2,387,000 0-75 3,055,000 j 0-87 I . Totals, all species 304,353,000 j 100-00 317,068,000 100-00 344,095,000 100-00 I ; ;

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Manufacturing technique has improved during the year by an increase in horse-power installed per employee, and more accurate sawing, but room for further improvement still exists. The most hopeful tendency is towards the wider adoption of multiple saws, by the use of which waste in sawdust is only one-third of that produced by circular bench-saws. Opportunity oilers in the development of powerfed equipment which will replace the old-fashioned breast-bench, increasing its capacity, and eliminating the inaccurate sawing arising out of faulty aligned bearings, rollers, and saws, &c. An increasing number of operators are taking advantage of the consulting service, which the Forest Service is at all times prepared to give on the lay-out and design of sawmills and allied equipment. Millers are becoming increasingly alive to the economy of improved drying methods, and improved stacking practice is more noticeable throughout the timber-yards of the Dominion. Two new dry kilns were operated with varying success. There is still an unfortunate tendency to experiment with the detailed design of this equipment. Intending users will save much needless trouble and monetary loss by purchasing the necessary specifications and plans from reputable manufacturers. Less progress has been achieved in the field of grading and marketing than in any other phase of the industry. Certainly a closer study of market conditions would assist materially in stabilizing markets and holding the field against overseas timbers. The average f.o.r. mill value per 100 ft. b.m. (all species) for the year ended 31st March, 1925, was 20s. Id., compared with 20s. for the preceding year. Exports. (For Customs returns see Appendix V, page 35.) The year ended 31st December, 1925, was one of signal achievement in the export trade, 51,54-9,439 ft. b.m. of timber, valued at £605,187, being exported. This not only represents the largest annual export since 1922, but creates a new record in unit values, the average for all species being 235. 6d. per 100 ft. b.m., compared with the previous record of 225. Id. per 100 ft. b.m. for the year ended 31st December, 1924.

Graph showing Rough-sawn Timber and Kauri-gum Exports for Years ended 31st December, 1923-25.

White-pine maintained its premier position on the Australian markets, the total export of this valuable non-tainting softwood for the year ended 31st December, 1925, amounting to almost 40 million feet b.m., valued at £446,298. This represents an increase of 6f million feet b.m. over the previous year. The average Customs export value per 100 ft. b.m. was 225. 5d., compared with only 21s. 7d. for the year ended 31st December, 1924. Rimu felt the serious competition of Pacific coast and Baltic timbers on the Australian markets, and exports again showed a marked decrease, 3,709,934 ft. b.m., valued at £32,757, equal to 17s. Bd. per 100 ft. B.m. being shipped during 1925, compared with 5,451,106 ft. b.m., valued at £45,953, equal to 16s. 10s. per 100 ft. b.m., shipped during 1924. The export of kauri, amounting to 3,238,693 ft. b.m., was the largest annual export since 1922, a quantity of low-grade timber being exported from old stocks found unsaleable on the domestic market. Beech continued to find favour abroad, and 2,221,293 ft. b.m. were shipped during the period under review, representing an increase of almost one million feet b.m. or 65 per cent., over that of the year ended 31st December, 1924. Imports. (For Customs returns see Appendix V, page 35.) The import trade created a new record, for the shipments into New Zealand ports during the year ended 31st December, 1925, were 81,923,784 ft. b.m. of timber, valued at £1,178,972, equal to 28s. lOd. per 100 ft. b.m. The previous record was 66,585,051 ft. b.m. valued at £1,019,288, equal to 30s. 7d. per 100 ft. b.m. imported during the preceding year. The increase is accounted for largely by softwoods, principally Douglas fir, western red-cedar, spruce, and hemlock from the coast of western North America. The sustained demands for hardwoods reflects the active development policies of the Public Works Department, the Electric-power Boards, and other authorities,

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While the low prices ruling on foreign markets have undoubtedly assisted to stimulate consumption of imported timbers, it is just as certain that the inherent qualities of these woods, their accurate manufacture, grading, and careful drying have contributed materially to their increasing popularity. Douglas fir still ranks first in popular favour, over 17 million feet b.m. being imported during the year under review, compared with 14,000,000 ft. b.m. during 1924, 8,000,000 ft. b.m. during 1923, and only 4,000,000 ft. b.m. during 1922. The average Customs import value per 100 ft. b.m. for 1925 was only 14s. 8d., or 4s. 7d. below that of the peak value in 1923. The outstanding development of the import trade during 1925 was the importation of over 6|- million feet- b.m. of western red-cedar (Thuja plicata) for use in weatherboards, joinery, and similar constructions. This timber was originally classed for import purposes as a furniture timber, and therefore admitted duty-free. Southern markets absorbed most of the rough-sawn hemlock for general building-construction, while the fruitgrowing industry used about half a million hemlock box-shooks for the export apple trade.

New Standard Metal-bound New Zealand White-pine Butter-box developed by the Forest Service for Export Trade. The Box uses less Timber, is cheaper, yet Fourteen Times stronger than the Old Standard Box.

In spite of the warnings issued by the Forest Service, dairy producers continued to pack their butter in increasing numbers of Baltic-spruce boxes, which are liable to seriously taint the butter, a fact which English importers have not been slow to appreciate. Recent reports, however, from the London Agency of the Dairy-produce Control Board to the effect that buyers were actually discriminating against butter packed in spruce boxes has caused that body to issue a general warning to producers argainst their further use.

Graph showing Timber and Tanning-bark Imports for Years ended 31st December, 1923-25.

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Both domestic and. export markets followed a normal trend during tie year ended 31sb March, 1926. Buying was brisk during the first three-quarters of the year, but, as usual, fell away during the January to March quarter. As in previous years, the increased production of native timbers was accompanied by increased importation of foreign woods, and the per capita consumption rose to about 285 ft. b.m., which is almost 90 per cent, above the 152 ft. b.m. per capita consumption in 1918. There were few alterations to wholesale-price lists during the period under review, although the tendency was still to increase the prices of upper grades, with a view to stimulating consumption of the lower grades. Prices were well maintained by the various associations, but some operators offered discounts up to 20 per cent, off list prices during the January to March quarter. The railway freight ta.riff charges on timber were increased by approximately 17 per cent, during the year, representing ail average increase of about Is. per 100 ft. b.m. In ex-truck orders this extra charge is automatically assumed by the consumer, but with ex-yard orders merchants have in most localities not passed on the charge. The increased railage charges have had two far-reaching effects : one was to stimulate the consumption of imported timbers in the seaports, and the other to bring the South Island timber-producing regions into more active competition on the Auckland, Wellington, and Now Plymouth markets. The Westland region has also become a serious competitor to Southland in the South Canterbury and North Otago regions. Retail-list prices remained almost unaltered during the year ended 31st March, 1926, but discounts up to 30 per cent, were given to allow matai, &c., to compete with imported western red-cedar. Thoroughly seasoned lines were at a premium throughout the year. 2. THE FOREST ATLAS. Eighteen atlas maps were compiled during the year, thus making a total number of 54 maps recorded under the permanent Forest Atlas. Ten maps were certified by the Surveyor-General, as required by section 25 of the Forests Act, 1921-22, thus bringing the total number of certified maps on record to 39. Up to date, 94 Atlas sheets have been printed, while 106 sheets remain yet to be completed. Nineteen hundred miscellaneous lithographs were printed, and 1,850 compiled plans, atlas sheets, tracings, graphs, &c., prepared. :S. PHOTOGRAPHIC RECORDS. The total number of negatives now on record is 3,297, and 3,582 prints, 137 lantern-slides, 100 enlargements, and 44 transparencies were made during the period under review. i. EDUCATIONAL PUBLICATIONS AND OTHER LITERATURE PRINTED DURING THE YEAR. 2,000 copies Bulletin No. 2 : " Forest and Timber Insects." 2,000 copies Bulletin No. 4-: " Monograph on the New Zealand Beech Forests." 5,000 copies Circular No. 3 : " The Insignis Pine." 3,000 copies Circular No. 19 : " Preservative Treatment of Fence-posts." 2,000 copies Circular No. 20 : 1 Eucalypts in New Zealand." 1,500 copies Circular No. 21 : " The Air-seasoning and Kiln-drying of Timber." 5,000 copies Circular No. 22 : " Forestry in New Zealand." 40,000 Price-lists of trees and seeds : 25,000 forest calendars. 8,000 Leaflets, " Propagation of Forest-trees " : 4,300 fire posters. 5,000 Leaflets, " Eradication of Gorse " : 3,000 posters —" Plant Trees." 5. FOREST SERVICE REFERENCE LIBRARY. The Central Office library now contains a total of 3,335 books and pamphlets, of which 381 were added during the year, and, as in previous years, has proved invaluable as a source of reference to the general public and to forest officers on all matters pertaining to forestry and allied subjects. Increased accommodation has made it possible to more adequately display the books and periodicals in the library, and it is hoped that still further improvements in this respect will be effected in the near future. Regional libraries are strengthened from time to time by the inclusion of standard reference works, and field officers are thus enabled to keep au fait with the latest developments in forestry practice throughout the world.

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APPENDICES.

APPENDIX I.—STATE AND PROVISIONAL STATE FORESTS AND FOREST RESERVES. Area in Acres at End of Fiscal Year, 1926.

APPENDIX lI.—SUMMARIZED REPORT UPON STATE FORESTATION IN THE NORTH ISLAND. By W. T. Morrison, Conservator of Forests, Rotorua Conservation Region. The establishment of 10,803 acres ol plantations creates a new record for the region, and last year's acreage is exceeded by 2,191 acy:es. Tree-sales also surpassed the previous year by £1,202 55., the respective figures being, 1924-25, £6,927 ss. 6d., and 1925-26, £8,129 10s. 6d. The output of trees from Rotorua Nursery totalled 8,937,228 trees, 5,121,355 of which were despatched to State plantations, and 3,815,873 to farmers, proprietary planting companies, local bodies, and others, while tree stocks have increased, in round figures, from 11,500,000 last year to 19,000,000 in 1926. Tree-seeds to the amount of 2,462 lb., valued at £1,110 75., have been sold, while the total amount of seed sown at Rotorua and Kaingaroa Nurseries was 3,684 lb., and the total estimated yield, in round figures, is 16J- million seedlings. Direct Sowing. Results of the direct-sowing experiment carried out in November, 1921, at Kaingaroa show that this system has proved a very economical and highly satisfactory method of establishment in suitable country. Mechanical modifications in the sowing-apparatus at present under experiment will, upon perfection, enable even better results. Thinning. In the Waiotapu Plantation 203 acres of nineteen-year-old Corsican pine were underscrubbed and cleaned up preparatory to thinning, while 80 acres were thinned to 900 trees to the acre. Thinning under permit was continued in Blocks VII and VIII, Whakarewarewa Plantation, a total of 14 acres, practically all Eucalyptus amygdalina, being thinned. The total area thinned during 1925-26 was 94 acres, making a total to date of 868-65 acres, comprised as follows : Waiotapu Plantation —Larch, 435-65 acres ; pines, 145 acres. Whakarewarewa Plantation —Larch, 216 acres ; pines, 18 acres ; eucalypts, 54 acres.

"" | " ' "" — " - Area in Acrcs at End of Fiscal Year 19M-26 Area in Acres at End Fiscal Year «(£ I g £ Year 1925. Net Increase in Acres'. 192e - | jots Land District. : 1 J : °|Sja 1 ! .. Sg^®§ ot„t„ ir„™t i Provisional Forest State Pr( S 1 ®j° nal Forest st t irnrpst Provisional Forest | , gla pH ' j State Forest. Reserves. Forest. Forest Reserves. ' State Forest. Reserves, g 31 oc j _ __ _l £ N.Auckland.. 105,701 57,772 .. .. 1,470 .. j 105,701 59,242 .. 13-7 Auckland .. 224,210 471,003 2,316 11,694 499* .. 235,904 470,504 2,316 8-0 Gisborne .. 87,696 208,609 11,160 .. .. .. 87,696 208,609 11.160 8-7 Hawke's Bay 113,128 1,500 5,254 .. .. .. 113,128 1,500 5,254 4-1 Taranaki .. 69,503 43,197 40,594 7* 3,191 .. j 69,496 46,388 40,594 6-5 Wellington .. 456,672 144,272 14,007 4* 1,166* .. 456,668 143,106 14,007 8-7 Nelson .. 19,196 1,932,981 8,470 .. 51,703 .. 19,196 1,984,684 8,470 42-7 Marlborough.. 89,497 120,625 12,062 .. .. .. 89,497 120,625 12,062 8-0 Westland .. 2,190 1,711,784 119 .. 241* .. 2,190 1,711,543 119 44-3 Canterbury .. 320,021 .. 319 .. .. ] 320,021 .. 319 3-4 Otago .. .133,107 335,123 2,108 550 .. .. 133,657 335,123 2,108! 5-1 Southland .. 137,592 603,802 .. 165* 1,574 .. 137,427 605,376 .. 9-4 Totals .. 1,758,513 5,630,668 96,409 12,068 56,032 .. 1,770,581 5,086,700 96,409 i * Not decrease.

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Fire Protection and Maintenance. A well-distributed rainfall occurred during the fire season, consequently the fire hazard was comparatively low. The usual fire precautions were taken, however, patrolmen and lookout men engaged, and maintenance and establishment of fire-breaks attended to. Costs on the various plantations for fire protection and maintenance (including repairs to fences, buildings, &c.) were —

Buildings. A ranger's cottage for the Wliakarewarewa Plantation was completed and a cookhouse erected at Kaingaroa Plains. One building at Rotorua Nursery was also raised and altered to provide more office accommodation. Underplanting- in Native Forests. Lawson's cypress continues to show the best results, and generally has made excellent growth. Other species, while making fair to good growth in open spaces, are poor or entirely suppressed where the undergrowth is heavy or the shade dense. Success in underplanting indigenous forests with exotic trees depends principally upon the selection of certain tolerant species, and periodical clearing of the undergrowth. Forest Wild Life. Deer. —These animals continue to increase in the region, and are exceedingly troublesome to settlers and the plantations. With the progress of settlement it has become exceedingly undesirable to have deer in the district, and the uplifting of protection is fully warranted. The sporting value of the herds is low, good heads being the exception rather than the rule, consequently an open season the year round and a thorough thinning of the herds would be to the advantage of everybody concerned. Forest-extension and Forestry in Schools. Increased output and sales of trees denote the substantial advancement made in extension of forests by private enterprise and local bodies, &c. This satisfactory increase is the direct result of the policy of the Service in inculcating a wide appreciative knowledge of the splendid returns which can be secured from tree-growing, of producing and selling proved naturalized trees at lowest prices, and providing the planter with free advice and the services of trained forest-extension officers. Forestry in schools is receiving good support from the Education Department, and the scheme has been generally elaborated and consolidated. Stocks of trees suitable for distribution have been increased, and a very comprehensive collection is now available for disposal. Farmers in the North Island are realizing more every year the importance of shelter as a factor in increased production, and tree-sales for this purpoes during the period under review created a record. The planting of trees as an investment for the production of farm timber and utilization of unproductive farm land is now widely appreciated. The farm woodlot is a necessity and the best paying of any forest investment. Sales of Trees and Seeds. The increase noted in last year's figures in regard to the sales of planting-stock over previous seasons has been steadily maintained by a further advance of 66-3 per cent., the total being 3,815,873. The number sold to proprietary planting companies rose from 237,685 in 1923-24 to 2,339,250 in 1925-26, whilst a very satisfactory increase in sales to farmers and others is recorded. All species of trees were in demand, conifers totalling 3,239,669 comprised the bulk of the output. 2,709,828 insignis pine and 51,769 redwood (mostly two-year-old plants) were despatched to customers in districts suitable for their establishment. A disposition to plant the better class of eucalypti rather than those species which produce only timber suitable for fencing and firewood has been apparent, while stock sold has given great satisfaction, and complaints have been practically nil.

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tji ... » lire Protection. Maintenance. Plantation. Area. n . » n , A Cost per Acre. Cost per Acre. Acres. s. d. s. d. Whakarewarewa .. .. .. .. 8,037 4 7*4 2 1*3 Waiotapu .. .. .. .. 7,010 2 11*6 2 0-3 Kaingaroa West .. .. .. .. 16,385 2 11-6 4 3 Kaingaroa Plains .. .. .. 23,621 2 1 3 6

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A short summary of results is as follows : — 1922. 1923. 1924. 1925. Trees sold .. .. .. 1,105,164 1,399,334 2,293,932 3,815,873 Conifers planted .. .. 3,239,669 At 8 ft. apart .. .. .. 4,764 acres Eucalypti planted .. .. 576,204 ~ .. .. .. 847 ~ All species planted .. 3,815,873 At 8 ft. apart .. .. .. 5,611 acres Trees sold: — 1922. 1923. 1924. 1925. To farmers and others .. .. 801,398 838,755 1,805,648 3,528,187 To public bodies .. .. 184,130 363,575 316,935 25,138 To other Departments .. .. 20,033 103,276 162,062 17,362 To soldier settlers .. .. .. 88,517 To schools and colleges .. .. 9,603 5,211 9,287 10,609 To other regions .. .. .. .. .. 234,577 1,015,164 1,399,334 2,293,932 3,815,873* * Total does not include 27,200 trees distributed under forestry-in-schools scheme. Sales of tree-seeds amounted to £1,110 75., and plans for increased collecting and extraction of seeds have been formulated to enable the Service to fulfil satisfactorily the large number of seed orders received from local and overseas sources. Revenue. Following are particulars of revenue from nursery and plantations received during the last three years 1925-26. 1924-25. 1923-24. £ s. d. £ s. d. £ s. d. Sale of trees .. .. .. 7,974 12 7 6,882 3 5 4,074 12 9 Sales of tree-seeds.. .. .. 1,079 19 0 906 19 11 546 1 6 Sales of firewood .. .. .. 12 9 6 7 13 11 47 13 11 Sales of posts, &c. .. .. 76 6 2 63 8 5 72 10 11 Grazing.. .. .. .. 186 16 11 228 9 0 222 13 10 Rental of departmental cottages .. 342 3 1 373 11 3 334 16 3 Inspections and reports .. .. .. .. 51 19 6 Sundries .. .. .. .. 106 3 6 238 9 6 184 12 9 £9,778 10 9 £8,700 15 5 £5,535 1 5 Proposals, 1926-27. 1. Establishment of 13,000 acres of new plantation, 2. Raise 20,000,000 trees. 3. Sell 5,000,000 trees. 4. Sell 3,000 lb. seed. 5. Maintain and protect 55,000 acres of plantation. 6. Erect ranger's cottage at Rotorua Nursery. 7. Improvement of implements used in nursery practice to speed up operations and reduce cost of production. 8. Improvement of direct-sowing machinery. 9. Installation of up-to-date seed-extraction plant. 10. Installation of break-down and breast bench at nursery. 11. Finalization of creosoting experiments. 12. Extension of present fire-fighting depots and engines, &c. 13. Fencing and general cultivation of arboretum area, possibly planting portion. 14. Thinning and silvicultural treatment of portions of Whakarewarewa and Waiotapu Plantations. 15. Survey of area for 1926-27 lay-out and preparatory clearing, &c. 16. Reconnaissance and demarcation of native forests.

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APPENDIX 111 .-SUMMARIZED REPORT UPON STATE FORESTATION OPERATIONS IN THE SOUTH ISLAND. (By W. G. Morrison, Conservator of Forests, Canterbury-Otago Region.) Tree-growing. Seed sown for the region amounted to ,1,497 lb. 6J oz., an increase of 453 lb. 6| oz. on the previous year, the average germination being about 4,400 per pound, the greater part of the seed being sown under the open-drill system. Trees sent out from the various nurseries numbered 4,401,598, an increase of 2,280,001 on the previous years figures. The output to farmers, local bodies, tree-planting companies, &c., increased from. 538,000 to 724,303, while 3,677,295 trees were despatched to State plantations, compared with 1,583,365 last year. Extension of Plantations. Established plantations at all stations appear to be in excellent growing-condition and present a healthy and vigorous appearance generally without any disease of a serious nature. During the period under review 4,861 acres were planted in trees, an increase of 2,669 acres on the previous year's operations. An additional area of 1,600 acres has been resumed on the Blue Mountains and 1,500 at Hanmer for the current season's planting programme, together with 549 acres at. Greenvale and 8,608 acres at Balmoral, making a grand total of 12,257 acres immediately available for the formation of future plantations. Forest-Protection. Fire. —No damage was done to State forests, owing to the wet weather conditions and adequate fire-prevention precautions. Several serious grass-fires on private property occurred in January and February, and caused damage to buildings, fences, and private plantations. These outbreaks show that settlers must make adequate provision for fire protection when their plantations are surrounded by grassland, and the extension of the " fire district " system to private lands will prove of great assistance. Deer. —Red and fallow deer are still numerous in the back country, and are a serious menace both to the indigenous and exotic forests. The total number of deer-tails received by officers in the region was 4,350, of which 271 were procured in the Hanmer district, and 4,079 in the Tapanui district. Of the latter number 3,890 tails were from fallow deer shot in the Blue Mountains. Insects.—The spruce-aphis has not been so destructive this year, and many trees have almost recovered from previous attacks. The pine-aphis continues to damage insignis pine, Corsican pine, and Austrian pine in some areas. The golden-oak scale continues to do serious damage to oaks in the vicinity of Christchurch, and the gum-scale to Eucalyptus globulus throughout the region. In the spring some hundreds of the green lacewing-fly were liberated in Christchurch. The acclimatization of this insect, the larvae of which prey on all species of aphis and scale insects, will act as a control on these pests. Fungi.—Little damage has been caused by fungi, and the serious danger which threatened insignispine plantations last year is almost absent, though odd trees still die out without any cause being discernible. Afforestation and Forest-extensions. Increased public interest in afforestation is disclosed by the fact that farmers and others have planted more trees during the past year than ever before. Tree disposals amounted to 724,303, of which 69,100 went to State plantations in other regions, 40,297 to local bodies, 604,581 to farmers and others, and 10,325 to schools in the South Island. Disposals of seed totalled 469§ lb., 221 lb. being sold to farmers and other individuals, 117J lb. distributed to schools, and 131 lb. forwarded to other regions. Apart from the trees distributed to schools, the tree-sales increased by 186,000, or almost 35 per cent, on last year's figures, and the number sold to farmers by 134,500. The increase in numbers is a healthy sign, and shows that the public, and especially the farmers, are taking a more lively interest in treeplanting. The number of local bodies who were engaged in tree-planting during the year is nineteen, and the area planted was approximately 1,100 acres. The activities of local bodies are greatly hampered by lack of funds, and in many cases by lack of suitable areas for planting operations. The forestry movement in schools has made marked progress, and, after the experience gained during the period since its inauguration, excellent results are anticipated during the ensuing year. Revenue. 1925-26. 1924-25. 1923-24. £ s. d. £ s. d. £ s. d. Sale of trees .. .. .. 2,306 14 9 1,822 3 6 1,893 18 8 Sale of tree-seeds .. .. 430 3 11 63 3 0 82 11 0 Sale of firewood .. .. 25 17 6 73 • 6 3 89 12 6 Sale of posts, &c. .. .. .. 5 2 0 5 18 6 Grazing .. .. .. 160 13 9 202 11 6 235 8 11 Rental of departmental cottages .. 295 7 8 282 17 3 297 2 1 Sheep and wool.. .. .. 35 9 6 14 10 0 53 12 5 Miscellaneous .. ~ .. 259 11 7 39 7 10 25 0 0 £3,513 18 8 £2,503 1 4 £2,683 4 1

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Proposals, 1926-27. 1. Establishment of 7,000 acres of new plantation. 2. Raise 15,000,000 trees. 3. Sell 1,000,000 trees. 4. Sell I,ooolb. seed. 5. Maintain and protect 21,000 acres of plantation. 6. Improvement in implements and methods for maintenance of fire-breaks efficiency. 7. Extension of fire-fighting depots and other appliances, &c. ; formation of fire-gangs. 8. Improvement of implements used in nursery practice to speed up operations and reduce cost of production. 9. Installation of up-to-date seed-extraction plant. 10. Extension of seed-collecting operations. 11. Formation of nursery area at Balmoral. 12. Improvement of direct-sowing machinery. 13. Thinning and silvicultural treatment of portions of plantations at Hanmer, Tapanui, and Naseby. 14. Erect ranger's dwelling at Hanmer Springs. 15. Installation of break-down and breast bench at Hanmer Springs. 16. Extension and finalization of creosoting experiments. 17. Survey of areas for 1926-27 lay-out and preparatory work on areas for 1927-28 planting operations. 18. Cutting out of grazing-areas from State forests. Reconnaisance and demarcation of beech forests at head of Waiau and Hope Rivers, North Canterbury. 19. Formation of Woodland Park at Hanmer Springs.

APPENDIX IV.—SUMMARIES. Summary of Operations in Nurseries during the Year ended 31st March, 1926.

Summary of Operations in Nurseries from 1896 to 1926.

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Total Expenditure. Trees in Nurseries Output of Trees. Name of Nursery. Estimated NumbeHn Tree-growing. Maintenance. Buildings, &c. Total. Trees raised - rrnoo Trees sent Nurseries at during Year. to O"^ e 31st «» ch ' during Year. duf^g 7 ear "*«■ £ s. d. £ s. d. £ s. d. £ s. d. Rotorua .. 9,226 18 0 236 15 3 820 11 0 10,284 4 3 16,488,284 6,779,555 3,843,573 19,027,284 Tapanui .. 1,850 9 10 1,973 8 9 122 12 5 3,946 11 0 1,106,600 1,009,725 381,050 3,814,550 Hanmer Springs 2,149 4 3 1,850 11 4 1,038 1 11 5,037 17 6 4,803,400 2,509,670 282,390 6,419,500 Naseby .. 336 16 2 172 12 4 4 17 6 514 6 0 682,000 j 157,900 60,863 1,171,000 Totals .. 13,563 8 3 4,233 7 8 2,086 2 10 I 19,782 18 9 23,080,284 ! 10,456,850 4,567,876 30,432,334

Total Expenditure Trees in Nurseries. Name of Nursery. Estimated Output of Trees. Tree-growing. Maintenance. Buildings, &c. Total. iSJS lreea raised r p ft OiitaiHp during Period. To Plantations. p^ees £ s. d. £ s. d. £ s. d. £ s. d. Rotorua .. 111,355 6 0 9,626 4 "5 15,873 12 11 136,855 3 4 114,028,845 85,142,204 11,590,485 Tapanui .. 43,693 6 10 17,353 12 11 7,905 6 1 68,952 5 10 25.983,014 19,328,618 2,839,846 Hanmer Springs 26,864 3 9 11,275 9 7 7,261 3 10 45,400 17 2 24,632,133 16,331,765 1,880,868 Naseby .. 1,535 3 5 458 0 1 62 1 1 2,055 4 7 1,784.843 464,215 149,628 Ranfurly* .. 18,425 16 3 4,236 18 2 4,552 16 1 27,215 10 6 7,280,501 6,465,593 509,858 Starborough* .. 6,399 9 10 .. 2,856 17 3 9,256 7 1 3,059,610 1,965,095 1,094,515 Kurow* .. 960 4 2 .. 2,109 18 5 3,070 2 7 172,460 .. 172,460 Totals .. 209,233 10 3 42,950 5 2 40,621 15 8 292,808 11 1 176,941,406 129,697,490 18,237,660 * Nursery now closed.

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Summary of Operations in Plantations during Year ended 31st March, 1926.

Summary of Operations in Plantations from 1896 to 1926.

Trees. Total Expenditure for \, Name of Plantation. Year, including Cost nlnnted Number received Number used to Number planted of Trees from Nurseries. 1 from Nursery. replace Losses. on New Area. £ s. d. Acres. Whakarewarewa .. .. 22,800 22,800 .. 4,999 18 10 Kaingaroa Plantation .. .. 6,733,755 55,675 6,678,080 19,033 11 9 10,803 Waiotapu .. .. .. 23,000 23,000 .. 3,210 4 4 Puhipuhi .. .. .. 43,450 43,450 .. 520 15 8 Conical Hills .. .. .. 1,950 1,950 .. 1,157 17 3 Pukerau .. .. .. 1,950 1,950 .. 377 12 7 Dusky Hill .. .. .. .. .. .. 329 3 7 Greenvale .. .. .. 279,500 92,500 187,000 2,714 8 4 275 Blue Mountains .. .. 691,325 .. 691,325 5,191 15 5 980 Naseby .. .. .. 192,900 130,900 62,000 1,989 16 9 69 Hanmer Springs .. .. 989,780 66,000 923,780 9,243 16 7 1,358 Balmoral .. .. .. 1,519,890 24,570 1,495,320 9,807 110 2,179 Raincliff .. .. .. .. .. .. 0 15 0 Waitahuna .. .. .. . . Dumgree .. .. .. 58,000 .. 58,000 983 3 1 85 Westland .. .. .. 116,800 .. 116,800 3,167 19 8 142 Tangimoana .. .. .. 49,765 .. 49,765 377 5 6 73 Totals .. .. 10,724,865 462,795 10,262,070 ! 63,105 6 2 15,964

Trccs - ExpendiTotal Expenditure ture per ■Kr_ m . . r,,, .. -» T , to Date, including Total Area Acre Name of Plantation. Number Number used T . , 1S r 11Ttlhp _ Cost of Trees planted. planted, S ™ received from to replace from Nurseries. including heed sown Nureery . Lo £ e3 . in Plantations. Cost of Sllu - Buildings. £ s. d. AoreB. £ s. d. Whakarewarewa .. .. 109,725 20,626,050 3,999,464 16,736,311 125,909 6 3 8,037 15 13 6 Waiotapu .. .. .. 83,121 23,529,152 4,883,134 18,729,139 94,867 3 7 7,010 13 10 7 Kaingaroa Plantation. . .. 124,600 39,635,715 3,243,835 36,516,480 177,217 12 5 40,006 4 8 7 Puhipuhi .. .. .. .. 1,462,450 462,450 1,000,000 13,286 15 0 1,200 11 1 5 Conical Hills.. .. .. .. 10,760,951 1,474,655 9,286,296 65,376 15 3 3,533 18 10 1 Pukerau .. .. .. .. 905,085 85,088 819,997 10,359 11 2 573 18 1 7 Dusky Hill .. .. .. .. 3,061,997 881,160 2,180,837 24,903 2 8 746 33 7 7 Greenvale .. .. .. .. 3,980,245 465,355 3,514,890 49,897 2 7 2,926 17 1 0 Blue Mountains .. .. .. 691,325 .. 691,325 5,191 15 5 980 5 5 11 Gimmerburn.. .. .. .. 936,235* 783,339 152,896 6,907 0 1 88 ! 78 9 9 Naseby .. .. .. .. 5,926,598 927,580 4,999,018 48,707 15 3 2,366 20 11 8 Hanmer Springs .. .. .. 11,433,403 1,920,699 9,512,704 66,312 11 7 5,591 1 11 17 2 Balmoral .. .. .. .. 5,078,337 764,560 4,313,77-7 49,153 3 7 4,667 10 10 7 Raincliff .. .. .. .. .. .. 50,000 1,143 17 2 206 1 5 11 0 Experimental Group. Waitahuna .. .. .. .. 42,025 11,500 30,525 330 7 9 11 30 0 8 Dumgree .. .. .. .. 1,770,265 1,110,125 660,140 17,866 18 9 342 52 4 10 Galloway .. .. .. .. 6,930 3,050 3,880 84 19 10 2 42 9 11 Omarama .. .. .. .. 4,390 .. 4,390 80 12 9 2 40 6 5 Westland .. .. .. .. 332,250 .. 332,250 6,324 5 0 482 13 2 2 Tangimoana.. .. .. .. 96,765 .. 96,765 584 5 5 141 4 2 10 Totals .. .. 317,446 130,280,168 21,015,994 109,631,620 764,505 1 6 78,909

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APPENDIX V.—EXPORTS AND IMPORTS OF SAWN TIMBER AND OTHER FOREST PRODUCTS. Exports.

Imports.

(From information supplied by the Comptroller of Customs. All figures refer to the years ended 31st December, 1923-25.) 1923. ! 1924. 1925. Item. j ■ Quantity. Value. Quantity. Value. | Quantity. Value. Ft. b.m. £ Ft. b.m. £ Ft. b.m. £ Totals .. .. .. 48,093,506 471,805 43,323,049 477,944 51,549,439 605,187 Kauri .. .. .. 3,011,151 60,272 1,946,489 38,620 3,238,693 63,624 Rimu .. .. .. 7,575,181 59,926 5,451,106 45,953 3,709,934 32,757 White-pine .. .. 34,897,728 320,409 33,375,876 360,196 39,748,206 446,298 Beech .. .. .. 1,266,869 16,438 1,328,683 17,522 2,221,293 28,474 Others (New Zealand) .. 817,561 8,229 826,572 9,822 1,318,060 16,698 Others (foreign) .. .. 525,016 6,531 394,323 5,831 1,313,253 17,336 Tons. £ Tone. £ Tons.? £ Tanning, bark .. .. 73 1,045 25 250 . -P Kauri-gum .. .. 6,598 596,222 « 5.261 443,576 5,370 414,901 Fungus .. .. 97 9,202 W5

(From information supplied by the Comptroller of Customs. All figures refer to the years ended 31st December, 1923-25.) 1923. 1 1924. 1925. Item. ; —■—• • ■— Quantity. ! Value. Quantity. Value. Quantity. Value. . I l I Ft. b.m. £ Ft. b.m. £ Ft. b.m. £ Ironbark .. ... 12,806,905 194,478 24,416,247 397,900 16,207,338 278,897 Jarrah.. .. .. 8,973,586 127,804 11,081,776 170,176 17,757,960 282,101 Douglas fir .. .. 8,081,088 77,473 13,835,742 122.332 17,115,606 125,710 Cedar .. .. .. .. .. 1,300,000\ „ 9S ssft 6,525,681 81,486 Other .. .. .. 10,457,784 211,478 15,951,286/ -" 8 > 8BU 24,317,199 410,788 Totals .. .. 40,319,363 611,233 66,585,051 1,019,288 81,923,784 1,178,982 Number. Number. Number. Laths, rails, pailings, &c. .. 13,709,189 27,329 10,573,693 24,697 9,937,671 15,962 Tons. Tons. Tons. Tanning-bark .. .. 3,433 38,517 2,469 29,347 2,310 28,229 Wood-pulp .. .. 855 12,784 2,700 36,393 2,035 27,754 Value equals domestic value in country of origin plus 10 per cent.

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APPENDIX VI. Summary of Expenditure out of State Forests Account from 1st April, 1919, to 31st March, 1926.

1919-20. 1920-21. i 1921-22. 1922-23. 1923-24. i 1924-25. 1925-26. Total. ! j i Grand I , I j Total. Capital. Operation.' Capital. Operation. Capital. 'Operation. Capital. Operation. Capital. Operation. Capital. |Operation. Capital. Operation. Capital. Operation. | ' ] I ; i j I ; ££ £££££££££££££££ Salaries .. .. .. .. 7,111 1,937 10,823 6,772 10,400 20,794 8,626 21,475 9,272 21,414 9,035 22,394 11,103 25,912 66,370 120,698 187,068 Development and management of State 222 3,722 4,191 7,575 5,251 12,301 1,563 12,227 2,177 14,094 2,949 14,670 3,082 15,500 19,435 80,089 99,524 forests Forest-fire protection .. .. .. .. .. .. 72 963 95 1,712 81 1,896 151 1,405 38 1,553 437 7,529 7,966 Educational and informational .. .. 188 .. .. 369 479 191 383 119 463 100 819 213 1,164 992 3,496 4,488 Forest research .. .. .. .. .. .. 223 .. 999 1,135 1,089 2,142 1,496 1,750 2,847 3,615 2,158 8,642 8,812 17,454 Afforestation and forest-extension .. 46,072 I .. 49,631 .. 43,792 .. 30,814 .. 37,320 .. 50,182 .. 63,910 .. 321,721 .. 321,721 Purchase of lands for afforestation .. 145 .. 157 .. 2,128 .. 3,585 .. .. .. 476 .. 17,764 .. 24,255 .. 24,255 Purchase of forested lands .. .. 7,294 .. .. .. 7,173 .. 1,064 .. 4,474 .. 105,993 .. 16,161 .. 142,159 .. 142,159 Grants, miscellaneous .. .. .. 100 .. .. 258 1,152 .. 929 .. 2,570 .. 790 .. 6,215 258 11,756 12,014 Advice, assistance, and preparation of .. 28 j .. 1,399 .. 757 .. 686 .. 1,196 .. * 1,358 .. 5,424 5,424 planting-plans for local bodies and g e Net interest and costs of raising loans .. .. 3,577 .. 6,127 10 9,797 3,882 16,766 j .. 17,158 .. 16,431 .. 20,826 3,892 90,682 94,574 Sinking fund and loan charges .. .. .. ' 387 .. 936 389 ' 913 179 893- 85 .. 128 3,129 781 3,910 National Endowment Account, transfers to .. .. .. .. .. .. .. .. .. .. .. 12,612 .. 9,741 .. 22,353 22,353 Totals .. .. .. 60,844 9,552 64,802 ' 20,697 69,840 47,884 51,891 55,727 56.498 59,956 171.529 73,249 115,886 84,555 591,290 351,620 942,910 V / V y / V v , , , v. , * Y ; , v v , Grand totals .. .. 70,396 85,499 117,724 107,618 116,454 244,778 200,441 942,910 Forest income .. .. .. 8,514 19,518 30,784 63,372 93,480 161,469 152,550 529,687 Loans raised .. .. .. 65,000 70,000 86,780 214,221 209 100,000 .. 536,210 Total receipts .. .. 73,514 89,518 117,564 277,593 93,689 261,469 152,550 1,065,897 Notes. —Credits-in-aids and recoveries have been deducted from expenditure. Salaries for 1925-26 include pay of non-permanent officers.

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i ■ APPENDIX VII.—STATE FORESTS ACCOUNT. Receipts and Payments Account foe the Year ended 31st March, 1926. Receipts. Payments. To Cash in hand, Ist April, 1925— £ s. d. £ s. d. £ s. d. By Recoupment of management charges of con- £ s. d. £ s. d. £ s. d. In Post Office .. .. .. .. .. 6,392 9 9 solidated stock .. .. .. .. 31 17 6 In Public Account .. ' .. 4,399 10 10 Stamp duty on transfers .. .. .. 94 19 3 In Investment Account .. .. .. 165,000 0 0 Adjustment of premium on stock 1935-45 .. 1 9 0 169,399 10 10 128 5 9 175,792 0 7 Interest on loans .. .. .. .. •• 28,003 16 7 Interest on securities held by Investment 28,132 2 4 Account .. .. .. .. .. .. 7,178 1 10 Transfer to National Endowment Account .. .. .. 9,740 12 2 Forest receipts— Purchase of Akatarawa Reserve .. .. .. .. 10,548 18 11 National endowment .. .. .. 17,043 19 3 Timber-sales .. .. .. .. 107, 122 7 7 Capital chargesTimber royalties .. .. .. 6,464 8 5 Sub. II.— General development of State Timber trespass .. .. .. 82 11 1 forests— Leases—Grazing .. .. .. 2,527 1 7 Buildings .. .. .. .. 791 14 0 Leases—Sawmill-sites, &c. .. .. 1,231 9 2 Motor-vehicles, field, and office equipment 1,223 0 2 Leases—Industrial .. .. .. 414 5 4 Forest Atlas .. .. .. .. 420 5 3 License and transfer fees .. .. 113 0 0 Roads, tracks, and telephone-lines .. 528 17 3 Miscellaneous .. .. .. .. 166 15 0 .Demarcation.. .. .. .. 225 18 9 Permits—Grazing .. .. .. 50 2 6 Salaries (includes pay of non-permanents) 243 11 4 Permits—Miscellaneous .. .. .. 513 12 0 3,433 6 9 Kauri-gum .. .. .. .. 627 10 10 Sub. 111.— Forest-fire prevention—Fees for inspections and reports .. .. 318 1 1 Equipment .. .. .. .. .. 47 7 2 Interest on overdue promissory notes .. 149 16 9 Rental of houses .. .. .. 76 18 4 Sub. IV.— Educational— Opossum revenue .. .. .. 4,073 15 1 Reference library .. .. .. 181 18 6 Photographic equipment .. .. 31 15 0 140,975 14 0 213 13 6 Less adjustments with territorial revenue Sub. V.— Forest research— and goldfields revenue .. .. 1,969 6 1 Arboretum, Rotorua .. .. .. 281 8 5 139,006 7 11 Forest Experimental Station, Westland .. 3,009 13 4 Nurseries and plantations— Timber- testing equipment .. .. 312 10 4 Trees .. .. .. .. .. 10,281 7 4 Salaries .. .. .. .. 53 5 3 Seeds.. .. .. .. .. 1,510 2 11 — 3,656 17 4 Firewood and poles .. .. .. 114 13 2 Grazing .. .. .. .. 564 12 10 Sub. VI.— General Afforestation— Rental of houses .. .. .. 672 7 5 Nurseries and plantations, planting, &c... 61,568 12 1 Sheep and wool .. .. .. 35 9 6 Salaries— Afforestation (includes pay of Miscellaneous .. .. .. .. 365 15 1 non-permanents) .. .. .. 10,865 6 11 13,544 8 3 Land for extension of nurseries and planta152,550 16 2 tions .. .. .. .. 17,764 0 0 Recoveries of expenditure and credits-in-aid— Sand-dune reclamation .. .. 2,594 11 9 Sub. I.—Salaries .. .. .. .. 375 12 11 92,792 10 9 Sub. II.— General development of State forests— Sub. VII.— Acquisition of indigenous forests— Capital charges— Purchase of Waimarino F and 8 Blocks Sales of motor-vehicles, &c. .. .. 108 4 0 and other lands .. .. .. .. 10,711 10 2 Maintenance charges— 110,855 5_ 8 Destruction of wild pigs .. .. 700 0 0 Operation and Maintenance charges— Timber-cruising, &c. .. .. 108 4 2 Salaries .. .. .. .. 26,230 13 2 Travelling-expenses.. .. .. 49 5 0 Contribution to Public Service SuperannuaSundries .. .. .. .. 37 7 3 tion Fund .. .. .. .. 1,036 7 1 1,003 0 5 27,267 0 3 Carried forward .. .. .. 1,378 13 4 335,520 18 7 Carried forward .. .. .. 27,267 0 3 159,276 19 1

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Receipts and Payments Account foe the Year ended 31st March, 1926— continued. Receipts— continued. Payments— continued. £ s. d. £ a. d. £ s. d. £ s. d. £ s. d. £ s. d. Brought forward .. .. .. 1,378 13 4 335,520 18 7 Brought forward .. .. .. 27,267 0 3 159,276 19 1 Sub. lll.—Forest-fire prevention— Sub. ll.—General development of State Capital charges— forests— Fire-fighting equipment .. .. 8 15 3 Communication expenses, printing and Maintenance charges— stationery .. .. .. .. 1,808 2 2 Wages .. .. .. .. 27 3 3 Fiscal management expenses .. .. 202 15 9 35 18 6 Forest and grazing reconnaissance, timber Sub. IV.—Educational— cruising and appraisal, policing patrol, Capital charges— &c. .. .. .. .. 6 ,165 19 4 Reference library .. .. .. 19 0 Destruction of wild pigs .. .. 1,011 17 2 Maintenance charges— Legal expenses, contingencies, &c. .. 35 0 3 Department bulletins .. .. 31 8 4 Office rent, heating, and lighting .. 2,346 2 11 Sundries .. .. .. .. 3 17 9 Transportation expenses and upkeep of 36 15 1 motor-vehicles .. .. .. 1,077 5 4 Sub. V.—Forest research— Travelling-expenses and transfer of officers 2,704 1 5 Maintenance charges— 15,351 4 4 Sundries .... .. .. .. 34 8 8 Sub. 111.— Forest-fire prevention— Sub. VI.—General afforestation— Communication and locomotion expenses 431 18 7 Capital charges— Wages, &c. .. .. .. .. 1,148 15 7 Bursaries and plantations .. .. .. 239 0 8 1,580 14 2 1,724 16 3 Sub. IV.— Educational-— Contributions received from local authorities Forest exhibits .. .. .. 163 13 2 in respect of the purchase of the Aka- Photographic records, &c. .. .. 222 9 6 tarawa Reserve— Departmental bulletins and professional Wellington City Council .. .. .. 4,343 12 7 publications .. .. .. 619 2 0 Lower Hutt Borough Council .. .. .. 98 6 10 Rangers'lnstruction School .. .. 195 3 2 Petone Borough Council .. .. .. 388 7 8 1,200 7 10 Upper Hutt Borough Council .. .. .. 75 17 10 Sub. V.— Forest Research— Hutt County Council .. .. .. .. 191 19 2 Forest ecology .. .. .. 349 0 9 5,098 4 1 Silvicultural management studies .. 400 13 1 Utilization and timber-testing .. .. 1,442 2 10 — 2,191 16 8 Sub. VI.— General afforestation— Preparation of planting-plans and forestextension .. .. .. .. 1,312 5 1 Tree-seed collection, &c. .. .. 46 2 2 1,358 7 3 Sub. VII.— Acquisition of indigenous forestsYearly rent, Otanewainuku S.D. .. .. 74 0 0 Sub. VIII.— Grants and subsidies— Payments to local authorities .. .. .. 6,141 15 4 —— 55,165 5 10 Cash balances at 31st March, 1926— In Treasury .. .. .. .. .. 2 13 4 In Post Office .. .. .. .. .. 37 16 11 In Public Account .. .. .. .. 2,358 3 11 Imprests outstanding in the Dominion .. .. 2 19 10 Investment Account .. .. .. .. 125, 500 0 0 127,901 14 0 £342,343 18 11 £342,343 18 11 Note.—The receipts include amounts received by the Post Office before the close of the financial year, but not paid into the Public Account until after the 31st March, 1926. E. Phillips Turner, Secretary of Forestry. A. W. Gyles, Accountant. I hereby certify that the statement of receipts and payments has been duly examined and compared with the 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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APPENDIX VIII.—LOAN ACCOUNT AS AT 31st MARCH, 1926. To Loan authority— £ s. d. By Debentures issued .. .. £ s. d. Section 40, Forests Act, 1921-22 .. Finance Act, 1916 (section 50), at Section 50, Finance Act, 1916 .. 4J per cent. .. .. .. 50,000 0 0 Section 32, Finance Act, 1918 [>500,000 0 0 Finance Act, 1918 (No. 2), (sec(No. 2) .. .. .. tion 32), at 4 per cent. .. 100,000 0 0 Section 16, Finance Act, 1920 .. J Finance Act, 1918 (No. 2), (secSection 40, Forests Act, 1921-22, tion 32), at 4£ per cent. .. 100,000 0 0 and section 16, Finance Act, 1924 100,000 0 0 Finance Act, 1920 (section 16), Section 8, New Zealand Loans Act, at 4J per cent. .. .. 45,000 0 0 1908 .. .. .. 4,396 13 5 Finance Act, 1924 (section 16), at 5 per cent. .. .. 100,000 0 0 Stock issued— Finance Act, 1916 (section 50), and Finance Act, 1920 (section 16) — New Zealand consolidated stock, 1936-51, at 6 per cent. .. 1,774 12 10 New Zealand consolidated stock, 1936-45, at 5 per cent. .. 204,396 13 5 Balance of authority .. .. 3,225 7 2 £604,396 13 5 £604,396 13 5 Note.—The authorities under the Finance Acts, 1916, 1918, and 1920 were repealed by section 40, Forests Act, 1921-22.

APPENDIX IX.—STATE FORESTS ACCOUNT, 1917-26.

Approximate Cost of Payer.—Preparation, not given ; printing (1,550 copies), £95.

Authority : W. A. G. Skinner, Government Printer, Wellington.—1926.

Price Is. 3<l.\

Receipts. Payments. Fiscal Year. Income. T-oans raised. Tota1 ' Ca P ltal " Operation. In £SJL° n Total. ££££££££ Balance, 31at March,1917 .. .. .. 2,530 1917-18 .. .. 13,299 28,100 .. 41,399 40,865 988 902 42,755 1918-19 .. .. 7,529 36,900* .. 44,429 39,162 2,182 1,861 43,205 1919-20 .. .. 8,514 65,000 .. 73,514 60,844 5,975 3,577 70,396 1920-21 .. .. 19,518 70,000 .. 89.518 64,802 14,570 6,127 85,499 1921-22 ... .. 30,784 86,780 .. 117,564 69,840 38,087 9,797 117,724 1922-23 .. .. 63,372 214,221 2,935 280,528 51,823 38,591 19,701 110,115 1923-24 .. .. 93,480 209 6,013 99,702 54,323 43,077 23,172 120,572 1924-25 .. .. 161,469 100,000 6,727 268,196 171,920f 56,245 23,157 251,322 1925-26 .. .. 152,550 .. 7,178 159,728 115,886 63,729 28,004 207,619 Balance, 3 1st March, 1926 .. 127,901 1,177,108 1,177,108 * Includes £10,000 from Consolidated Fund. i Includes £100,000 purchase of Selwyn Settlement forest. Note. —Credits-in-aid and recoveries have been deducted from expenditure.