STATE FOREST SERVICE. ANNUAL REPORT OF THE DIRECTOR OF FORESTRY FOR THE YEAR ENDED 31st MARCH, 1930.

Appendix to the Journals of the House of Representatives, 1930 Session I, C-03

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1930. NEW ZEALAND.

STATE FOREST SERVICE. ANNUAL REPORT OF THE DIRECTOR OF FORESTRY FOR THE YEAR ENDED 31st MARCH, 1930.

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 of State Forests. Sir, — Wellington, 7th August, 1930. I have the honour to submit herewith the annual report of all operations of the State Forest Service for the year ended 31st March, 1930, as required by section 64 of the Forests Act, 1921- 22. I have, &c., E. Phillips Turner, Director of Forestry. Hon. E. A. Ransom, Commissioner of State Forests.

CONTENTS. Pago Chapter 111. —The Timber Trade — Page Introductory .. .. .. .. ..2 Production IB Chapter I. The State Forests Industrial Technique " !'. !! '.'.17 I Exports .. 17 Legislation 3 18 finance .. .. .. •• .. Timber Industry and Markets .. .. .. 20 Afforestation operations m general .. 5 J Forest Reconnaissance, Inventory, Demarcation, and Surveys .. .. .. 8 Chapter IV.—General — Forest Protection .. .. .. .. 8 Wild Life in state Forestg ~ _ .. 22 Forest Fires .. .. .. 8 Staff .. .. .. .. 24 Timber Sales .. .. .. 9 Honorary Forest Rangers .. .. 24 Forest Extension .. .. .. .. 9 Unemployment .. .. .. ..24 Tree-planting by Afforestation Companies, &,c. .. 10 Common and Botanical Names of Species .. 25 Local Collection of Seed .. .. .. 10 Publications.. .. .. .. ..10 Reference Library .. .. .. .. 10 Appendices: I. Summarized Reports on State Afforestation in Chapter IT. —Research and Experiments— Forest-conservation Regions .. .. 25 Forest Entomology .. .. - ..11 11. Areas of State Forests .. .. ..27 Silvicultural Investigation in Westland .. .. 12 111. Summaries —Nursery and Plantation OperaForest Working Plans .. .. 12 tions .. .. .. 28 Other Studies . . .. .. 12 IV. Summary of Expenditure out of State Forests Forest Ecology .. - • - - 13 Account .. .. .. 30 Experiment Stations and other Experimental V. Receipts and Payment Account .. ..31 Work .. .. .. .. ..13 VI. Loan Account .. .. .. ..34 Forest-products Investigation ~ ~ 15 VII. State Forests Account ~ ~ .. 34

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RE POET. INTRODUCTION. The following is a brief review of the major operations carried out during the year :— Afforestation. —The new area planted was 56,630 acres (including 30 acres of direct formation), which far exceeds the area planted in any one year by any other State in the Empire. This brings the total plantation establishment to 253,603 acres, which, as far as afforestation is concerned, makes New Zealand the leading State of the Empire. The programme mapped out for 1930 planting involves the afforestation of approximately 54,600 acres. Thinning, &c. —An outstanding achievement for the year was the thinning, partially thinning, and cleaning of the majority of the older-age classes in the State plantations. That this silvicultural treatment was overdue had long been recognized, and although experimental thinning of sample plots had been undertaken from time to time, it had not been possible to operate on an organized scheme of any magnitude. The opportunity came, however, when the Service was called on to assist in providing work for the unemployed, and from the month of October, 1929, till March of the present year, gangs were employed on thinning, partially thinning, and cleaning in Rotorua, Canterbury, and OtagoSouthland regions. Some 2,000 acres in a portion of Conical Hills Plantation (Otago) still remains to be dealt with, but the work already accomplished must have an important effect by improving the health of the trees, lessening the fire-risk, and, where thinning was done, by increasing the productive volume of the ultimate timber-crop. Unemployment.—At the peak period 1,820 hands were engaged on forestry work, and when it is remembered that many of these were city dwellers unaccustomed to the rigours of country life and to camp conditions during a wet season, it is pleasing to record that the results from a forestry viewpoint were comparatively satisfactory. Waipoua Research Station.—The establishment of a silvicultural research station in Waipoua State Forest —the last of those large magnificent kauri-forests of the North—was authorized during the year, and the necessary preparations are now in hand to enable operations to be commenced there without delay. The functions of this Station are outlined in Chapter II of the report, and although definite results cannot be obtained for some time, it is confidently expected that when the five-year experiments and investigations alluded to have been completed, the Service will have secured data which will solve the many problems regarding the rate of growth, regeneration, habits, &c., of New Zealand's finest timber-tree. Timber-sales. —The year's sales of indigenous timber show an increase over the figures for the previous year, and appear to indicate generally that the sawmilling industry is gradually emerging from the period of depression through which it has been passing for some years, and is becoming gradually more stabilized. Forest-management.—A perusal of the report will show that this important branch of forestry has been given careful attention, and good work has been done with respect to forest entomology, silvicultural investigations, botanical research, &c. Branch of Forest Products.—Timber-testing has been continued and the comparative and actual strengths, &c., of seven indigenous timbers and four imported ones were investigated. Various industrial studies —e.g., air seasoning and kiln drying, testing suitable timbers for fruit and butter boxes, testing of insignis pine for bridge-stringers, testing ereosoted rimu poles for telegraph and power lines, investigating insignis pine, kauri, &c., for supplies of turpentine, oil, &c., to name but a few— together with an extensive economic pulp-wood survey to ascertain the commercial possibilities of establishing the industry in the Dominion have also been undertaken. General. —To sum up, the work of the year has been varied and arduous, and for the satisfactory results herein recorded I desire to express my thanks to officers of all ranks for their loyal co-operation and untiring energy, often under trying and very difficult circumstances, brought about by the big programme occasioning the employment of large extra numbers of labourers. CHAPTER I.—THE STATE FORESTS. 1. General. Summary of Areas under Control. Appendix II of this report shows that the total area controlled by the State Forest Service under all headings is approximately 7,700,000 acres. At first glance this may appear a very large area indeed, but when it is observed that it comprises less than 12 per cent, of the total superficial area of the Dominion, and that in an insular State such as New Zealand 25 per cent, under forests could not be considered too high to ensure a reasonable margin of safety, the figures can be viewed in their true perspective,

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The location and distribution of the indigenous forests and exotic plantations are illustrated by the attached map from which it will be seen that the major forested portion is confined to the mountainous hinterland of the Dominion. These are protection forests, and mainly serve the very useful function of preventing erosion and rapid run-off by regulating and conserving stream-flow, and exercise a moderating influence on climate. It is most important, therefore, that this high country should not be denuded of its forest-cover, and it is becoming increasingly apparent as time goes on that any agencies which assist in the destruction of the standing bush or prevent regeneration should be rigorously suppressed. The prime offenders in this category are fire —the forests' greatest enemy' —- and deer. The adoption of a " wait and see " policy can only have one possible result—the slow but sure extinction of our native forests. The milling-forests will be held for timber-production, but such areas as are suitable for settlement will be made available for that purpose after the millable timber has been used. In passing, it may be stated that this latter total is a very small quantity compared with the aggregate area. Large areas of bush land in both Islands are still held by Native and private owners, and it is desirable that these blocks should be placed under proper forest management. On analyzing the figures shown in Appendix II it will be noticed that whilst 13,768 acres were proclaimed under the Forests Act in 1929-30, 58,967 acres were withdrawn, making a total reduction of 45,199 acres when compared with last year. The principal areas withdrawn were in Canterbury and Westland Regions, and are mainly forest lands which are now included in Arthur Pass National Park. In Nelson Region the reservation over a large area of provisional State forest was cancelled and the land was included in the scenic reserve surrounding Lake Rotoroa. Many areas were withdrawn for settlement purposes ; the grand total in this connection being 17,262 acres, of which 8,377 acres were located in Auckland and 6,886 acres in Westland Regions respectively. The most notable acquisition was approximately 12,300 acres of milling-bush in Southland Region. The statistics relating to the areas under control of the Service have been extended since last year and now show national-endowment forests separately. Estimated Total Area of Indigenous Forest in the Dominion. , T Area. Y ear. « 1847 .. .. .. .. .. .. .. 27,626^000 1869.. .. .. .. .. .. 23,517,000 1886.. .. .. .. .. .. .. 21,196,000 1893.. .. .. .. .. .. .. 20,578,000 1909.. .. .. .. .. .. .. 17,073,000 1923.. .. .. .. .. .. .. 12,593,000

Graph 1. —Total Area of Land under Forest in Dominion and Area of State-forest Dedications.

Legislation. The following is a brief summary of the year's legislation which affected the Forest Service : — Section 4 of the Finance. Act, 1929, empowered the Minister of Finance to borrow an additional £500,000 for the purposes of the Forests Act, 1921-22. Section 9 of the Reserves and other Lands Disposal Act, 1929, cancelled the reservation as a provisional State Forest over Section 10, Block IV, Arapawa S'urvey District (Marlborough), and set apart this area of 95 acres as a scenic reserve, while similar provision was made by sections 10 and ] 1 of the same Act with respect to 10,470 acres in Blocks 11, VI, VII. X, XI, XIV, and XV, Rotoroa Survey District (Nelson), and 145 acres in Blocks 111 and VII, Wataroa Survey District (Westland).

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2. Finance. A review of the year's operations in the form of a Keceipts and Payments Account and a comparative analysis of receipts and payments from 1920-29, supplemented by statements covering the loan authorities and working-balances of the Service since 1927, are presented hereinafter under Appendices IV, V, VI, and VII. In addition, financial accounts on a commercial basis are published by the Treasury in parliamentary paper (8.-l [Part IV]). Receipts. The forest receipts for the past financial year from all sources were £105,637, which is an increase of £1,553 over last year. Details, together with comparisons over a period of three years, are appended:—

TABLE 1.

Payments. The net expenditure from the State Forests Account for the past financial year was £427,418, a detailed analysis of which is set out hereunder : also comparisons with the years 1926-27, 1927-28, and 1928-29."

Item. 1929-30. 1928-29. 1927-28. 1926-27. I ■ I Forest receipts— £ £ £ £ £ £ £ £ Timber-sales .. .. .. 60,711 49,009 75,756 85,542 Timber royalties .. .. .. 6,592 7,818 5,274 3,816 Timber trespass .. .. .. 198 137 354 71 Leases Grazing .. .. .. 2,115 2,332 3,088 2,806 Sawmill-sites, industrial, &c. .. 2,850 1,339 1,845 1,225 License and transfer fees .. .. 241 128 121 117 Miscellaneous licenses .. .. 33 137 102 280 Permits —Grazing and miscellaneous 5 255 333 456 Kauri-gum .. .. .. 214 221 132 238 Fees for inspections and reports .. 776 314 703 620 Interest on overdue promissory notes 230 93 135 213 Rental of houses .. .. 117 117 80 92 Opossum revenue .. .. 4,953 4,741 4,098 4,680 Miscellaneous .. .. .. 3,116 2,798 2,209 544 National Endowment Account alio- 12,156 8,249 9,898 14,114 cation : 94,307 77,688 104,128 114,814 Less adjustments .. .. .. .. .. 749 94,307 77,688 104,128 114,065 Nurseries and plantations — Trees .. .. .. .. 6,852 8,572 7,711 10,229 Seeds .. .. .. .. 1,230 977 1,667 1,934 Firewood and poles.. .. .. 1,117 1,014 276 178 Grazing .. .. .. 775 639 438 854 Rental of houses, &c. .. .. 784 885 879 763 Miscellaneous .. .. .. 572 339 299 543 11,330 12,426 11,270 14,501 Totals .. 105,637 90,114 115,398 128,566

TABLE 2. Item. 1929-30. >1928-29. 1927-28. 1926-27. Fixed charges and staff salaries— . ££££££ ££ Interest and loan expenses .. .. .. 59,884 .. 44,189 .. 35,040 .. 29,077 Allocation of revenue— National Endowment Account .. .. 6,971 7,469 13,885 15,659 Local-body payments.. .. .. 11,522 7,284 6,983 9,061 18,493 14,753 20,868 24,720 Staff salaries— Capital .. .. .. .. 23,450 23,184 16,476 17,075 Operational .. .. .. .. 24,367 21,364 27,194 22,783 47,817 44,548 43,670 39,858 Management, establishment, and development—Capital charges— Indigenous State forests — Buildings, equipment, &c. .. .. .. 7,076 4,815 3,474 4,204 Fire-fighting equipment, &c. .. .. 39 287 182 73 Educational —Reference library, &(;. .. 113 140 180 107 Research and experimental equipment .. 3,277 1,732 2,059 2,402 Afforestation —Nurseries and plantations 239,674 154,184 108,876 78,418 Sand-dune reclamation .. .. 1,689 1,263 1,966 2,312 251,868 162,421 116,737 87,516 Opera tional expenses— Indigenous State forests and general .. 21,444 17,218 15,840 17,839 File-prevention .. ... .. 1,256 1,967 3,166 1,524 Educational —Publications, &c. .. .. 412 758 472 1,094 Utilization and silvicultural research .. 3,110 5,218 5,181 2,472 Preparation of planting plans, &c. .. 8,730 4,944 2,918 1,611 Miscellaneous .. .. .. ..1,446 5,943 257 744 36,398 36,048 27,834 25,284 Land- purchases— Indigenous forest areas .. ' .. .. .. 830 18,639 Plantation-extension .. .. .. 12,958 23,211 18,352 11,181 12,958 23,211 19,182 — 29,820 Totals .. .. 427,418 325,170 263,331 236,275

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3. Afforestation Operations in General. The year's planting objective of 47,000 acres set last year was exceeded by approximately 9,000 acres due to the fact that the Department was again called upon to increase its programme very considerably in order to provide employment for many who could find no other means of livelihood for several months of the year. That the Service was able to respond to the call and rearrange its plans so as to find work for approximately 1,800 men at very short notice and accommodate them in the field for nearly five months, speaks well for its organization and for the willing team-work and loyal co-operation of all members of the Staff. The total area planted was 56,630 acres (including 30 acres of direct formation), which brings the aggregate area of State softwood plantations (in round figures) to 253,600 acres ; and constitutes the largest area of State-owned and State-planted forests in any single State in the Empire. Pull statistics with respect to the year's plantation activities, &c., will be found in Appendix II of this report.

TABLE 3. Areas planted to Date and Areas available for Future Planting, etc.

As it was realized that an accelerated planting-programme wo -Id result in all the land available at Riverhead and Maramarua Plantations, Auckland Region, being planted up before the close of the year 1930-31 and as the area thus established would be insufficient, Ito supply the future requirements of the raj)idly expanding Auckland Province, steps were taken to a/cquire further land for afforestation activity ; this has resulted in the selection of Tairua project which comprises an area of approximately 52,000 acres of State and provisional State forest land lying along the east coast in Thames and Ohinemuri Counties on the eastern side of Coromandel Peninsula. An inspection of this block by the Auckland Advisory Committee set up in terms of the Land Laws Amendment Act, 1929, confirmed the departmental opinion that the great bulk of the land couls be more economically utilized for tree-planting than for farming purposes, and action will be taken to that end. The better-quality areas will be demarcated in due course and handed over to the Lands Department for settlement purposes. On certain occasions the Service has been subjected to criticism for allegedly afforesting lands which could more profitably be used for farming, and it must be admitted that plantation units of 10,000 acres or upwards in the Dominion must sometimes ihclude within their boundaries some small areas of farming value. Wherever possible, however, such lands are excluded, the securing of boundaries which will minimize fire danger to the growing trees, being, of course, the deciding factor. A new field nursery has been established at Tairua and it is anticipated that sufficient young stock will be available to plant an area of 1,500 acres during the coming winter and to provide, in addition, five or six million seedlings for lining out in the nursery for the following year's requirements.

Balance » • . „ i»i t Approximate Q TTQ 1 I Q M|Q TAl 1 -wi Region. ■ Plantation. Area planted.* Planting, Planting including Firebreaks. Acres. Acres. Acres. Auckland .. .. Riverhead .. .. .. 8,878 1,646 1,646 Maramarua .. .. .. 5,840 6,740 6,126 Tairua .. .. .. .. 52,000 1,500 Minor areas .. .. .. 1,083 650 100 Rotorua .. .. Wliakarewarewa .. .. 7,591 82 Waiotapu .. .. .. 7,920 166 Kaingaroa .. .. .. 145,963 93,280 30,000 Wellington .. Karioi .. .. .. 9,471 6,650 2,737 Minor areas .. .. .. 671 4,938 100 Nelson .. .. Golden Downs .. .. 5,556 6,540 3,500 Minor areas .. .. .. 347 Westland .. .. Westland .. .. .. 1,688 6,072 Canterbury .. Hanmer Springs .. .. 7,680 197 197 Balmoral .. .. .. 18,671 2,007 1,906 Eyrewell .. .. .. 12,008 4,134 3,758 Minor areas .. .. .. 220 22 22 Southland.. .. Blue Mountains .. .. 8,713 Naseby .. .. .. 2,580 1,163 1,047 Greenvale, Dusky and Conical Hills 8,017 56 Minor areas .. .. .. ' '06 New scheme .. .. .. .. 6,866 2,000 Totals.. .. .. 253,603 193,127 54,629 * Includes 7,078 acres direct-seeded.

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The hopes expressed in last year's report that State afforestation in Southland would not be much longer delayed will shortly be realized as, at the close of the year, Government approval was obtained for the acquisition of an area in that province of approximately 6,000 acres known as Pebbly Hills, and it is expected that active planting operations will be put in hand there within the next few months.

Graph 2. —Comparison of Areas planted annually since the Commencement of State Afforestation.

TABLE 4. Statement showing Area established, Area maintained, Net Cost of Afforestation, and Comparative Cost of Establishment per Acre.

For this purpose it has been assumed that the average cost of establishing 1 acre in trees is equivalent to the maintenance of 6 acres or the direct seeding of 3J acres. These costs do not include the value or cost of the land, or depreciation on capital expenditure prior to 1922. Such a costing unit is an arbitrary one, and of value only for comparative and average costing purposes. Costs of establishment and maintenance vary considerably by reason of climate, locality, and other factors, but the above accumulated costs are allocated to each project, and appear annually in the summary of plantation operations, published as a part of parliamentary paper 8.-l [Part IV]. The marked increase in the gross and net costs of afforestation during the year is due to the inauguration of a programme of thinning and cleaning in the older plantations. In addition a considerable sum was also expended on preparatory work for the 1930 planting season. Both were undertaken as unemployment relief measures and were carried on for a period of five months beyond the normal planting season. A further important factor was the decision to pay increased wages to relief workers.

Year - established S?edtac; "Cosf 'paries?' paid on Total Cost. Irom Sales, Net Cost. C( ?^ cr established. Seeding. tained. Cost. &0 _ oan3 Tr ees, Ac. Acre - Acres. Acres. Acres. £ £ £ £ £ £ £ s. d. 1922-23 .. 2,800 .. 11,400 30,800 8,600 22,000 61,400 7,400 54,000 5 12 2 1923-24 .. 7,300 .. 44,200 37,300 9,300 18,200 64,800 8,200 56,600 3 17 7 1924-25 .. 10,600 .. i >1,500 50,200 9,000 17,400 76,600 11,300 65,300 3 8 4 1925-26 .. 16,000 .. . >2,100 63,900 11,100 21,000 96,000 13,500 82,500 3 2 10 1926-27 .. 20,300 1,300 r ,'8,100 80.700 17,100 24,500 122,300 14,500 107,800 3 4 1 1927-28 .. 34,300 2,400 110,800 22,000 33,800 166,600 11,500 155,100 3 0 2 1928-29 .. 57,400 3,300 19.6,400 155,400 23,200 44,200 222,800 12,500 210,300 2 11 11 1929-30 .. 56,600 30 197,100 241,363 23,450 63,800 328,613 11,300 317,313 3 11 0 Total for 205,300 7,030 710,500 770,463 123,750 244,900 1,139,113 90,200 1,048,913 3 4 5 eight years i

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Plantation Cleaning and Thinning. The cleaning and thinning of the older-age classes in the plantations carried out during the year was a distinct forward move in the forestry history of the Dominion, and served a twofold purpose, for not only will this treatment greatly benefit the plantations by diminishing the fire-hazard, reducing the liability to disease and insect attack, increasing the annual increment and improving the final crop, but for several months the work provided employment for a large number of labourers recruited from the ranks of the unemployed. Cleaning in Rotorua Region was completed on a total area of 11,807 acres as follows : Whakarewarewa Plantation, 5,370 acres ; Waiotapu Plantation, 4,516 acres ; Kaingaroa Plantation, 1,921 acres. A total area of 3,194 acres of twenty- to twenty-one-year-old trees were lightly or partially thinned, the malformed and totally suppressed trees being removed ; the average percentage thinned per acre ranging from 27 to 38 per cent. Fifth line thinning was also carried out over an area of 71 acres, while a further area of 14 acres in Whakarewarewa Plantation was thinned by contract. This operation consisted of selecting the final-crop trees at about 16 ft. apart and felling the four trees closest to the chosen trees. An area of 2,654 acres at Hanmer Springs Plantation was cleaned and lightly thinned, and at Balmoral Plantation 226 acres were similarly dealt with. The cleaning was carried to a height of 7 ft., all-age classes over ten years being treated. A total area of 17 acres at Hanmer Springs was experimentally thinned and the logs cut into 8 ft. lengths for disposal as firewood. At Dusky Hill and Conical Hills Plantations (Otago) fifth-line thinning was carried on for six months, the areas treated being approximately 561 acres and 897 acres respectively. A portion of the latter plantation still remains for treatment. At Naseby Plantation the thinning of 7 acres was carried out. Summarizing these figures gives the following result: — Acres cleaned. Acres thinned. North Island Plantations .. .. 11,807 3,279 South Island Plantations .. .. 4,345 1,482 16,152 4,761 The high cost of thinning and the lack of a convenient market owing to the location of the older plantations have hitherto severely handicapped the Service in undertaking this work, except on an experimental scale, nor can it be said that an early solution of this problem is in sight, but the establishment of a wood-pulp industry would probably go far towards absorbing this forest-produce.

Graph 3. —Progress of State Afforestation from Year of Commencement.

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4. Forest Reconnaissance, Inventory, Demarcation, and Surveys. Fieldwork in connection with, tie revised inventory of forests of the Dominion received attention in all forest-conservation regions during the year, and covered a total area of 1,025,000 acres of State and provisional State forests. The major portion of this area is situated in the Westland Region, the Conservator of Forests reporting that 50 per cent, of the State Forest areas having been dealt with. There are approximately 12,592,000 acres of native forest areas to be dealt with, of which 7,195,000 acres are State and provisional State forests. These figures will indicate the magnitude of the undertaking to compile an inventory of the Dominion's forest resources. In Regions other than Westland the progress recorded can be regarded as satisfactory, especially in view of the abnormal projects carried out during the period in connection with the exotic plantations. The attention of field officers had to be concentrated on this latter work, consequently forest inventory operations were at a minimum. Moreover, the work was further retarded by the unseasonal weather during the early summer. An analysis of the present data discloses, as was anticipated, that the extensive areas of State forests in the high country contain large areas of protection forest and open areas and comparatively small areas containing merchantable timber. An example is a State forest of 65,000 acres situated on the eastern slopes of the Ruahine Ranges which is classified as follows : — Acres. Protection forest area .. .. .. .. 54,096 Open fern and manuka country .. .. .. 8,839 Merchantable forest .. .. .. .. 2,065 Total .. .. .. .. 65,000 It will therefore be apparent that in the interests of the timber industry and future developments an accurate knowledge of available timber-supplies is a matter of great importance. Incidental to afforestation operations, topographical surveys covered 4.3,295 acres, while 49,600 acres were subdivided into blocks and compartments together with the necessary firebreaks and access roads. In accordance with the pronounced policy in respect to land-utilization, close contact has been maintained with the Departments of Lands and Survey and Agriculture in respect to areas proposed to be utilized for afforestation. Joint inspections have been made of various areas, totalling approximately 133,000 acres, and with the exception of a few small areas comprising 586 acres the examining Committee decided that the land was of low agricultural value and should be utilized for afforestation purposes. 5. Forest-protection. Fire Districts. Fire districts constituted under the Forests Act, 1921-22, and its amendment now number thirty-eight, and cover and area of nearly 2,000,000 acres. Of this number four districts were constituted at the requests of local bodies and two to meet the needs of private afforestation companies. It will thus be seen that the value of fire districts as a means of regulating and controlling forest-fires and preventing indiscriminate burning is recognized outside the Forest Service. This is further borne out by the fact that from time to time requests have been made to the Department from private owners of flax areas grown for commercial purposes to have these constituted fire districts. At present Jiere is no statutory authority to do this, but the question of extending existing legislation in the direct .on indicated is receiving consideration. 6. Forest-fires. Again it is pleasing to rep< rt that, owing to a very favourable season, the fire-hazard was low, and with the exception of two fi ;es, one at Kaingaroa (Rotorua Region), where 132 acres of two-year-old trees were destroyed, and t 1 B other at Longwood (Southland Region), where 252 acres of young trees were likewise burned. Th damage caused to State indigenous forests was practically negligible. As usual a number of settlers' 'mrning-off fires got out of control, but these were in every instance extinguished without serious dan'age to green bush. Realizing as it does that the forest has no greater enemy than fire, the Service, during the summer months, leaves no stone unturned to safeguard the great national asset with which it is entrusted, and although the wet summer of 1929-30 largely accounted for the favourable fir<?-hazard and the consequent immunity from fire damage so far as the forests were concerned, yet numerous small fires did occur, and had they not been detected and extinguished in their incipient stages by vigilant fire patrolmen, more serious results would undoubtedly have occurred. In one case of lighting a fire without a permit in a fire district in Wellington Region the offender was convicted and substantially fined. The Cheney spark-nullifer has been a contributing factor in minimizing fires from tramway locomotives, log-haulers, &c. Th'.s device is being used by all sawmill-operators in State forests. The reports of the various Co nservators of Forests show that the number of fires in State forests was twenty-eight, while the total urea burnt was 1,642 acres, the major portion of which was bracken find scrub country and cut-over bush land.

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An untreated Pine Plantation.

A Pine Plantation after clearing and thinning.

[To face 'page S.

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Kaingaroa State Plantation: Douglas Fir (Pseudotsuga Douglasii) planted 1921.

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7. Timber Sales. The following table, which records the timber sales made by the Service for the year 1929-30, bears out the opinion expressed in last year's report that it would appear as though the depression through which the industry has been passing for the past few years is gradually disappearing, although it may be some little time before a definite return to assured economic stability can be expected.

TABLE 5.

Note. —Receipts shown above for the periods 1920-21 to 1923-24 do not include the half-share of receipts paid into the National Endowment Account from State forests on national-endowment lands.

Graph 4.—Statistics of the Service Timber-sales for the Years ended 31st March, 1929 and 1930. (Quantities shown in feet, board measure.)

8. Forest Extension. Sale of Trees and Seeds. It will be noticed by the attached table that the past year's sales of trees and seeds show a marked falling-off when compared with the previous five years. This is largely attributable to an agreement which has been entered into as a matter of Government policy with the Horticultural Trades Association whereby sales of trees from State nurseries will be considerably curtailed and eventually discontinued. The association is thus being afforded an opportunity to demonstrate that the requirements of tree-planters generally can be satisfactorily and adequately met by private enterprise. The arrangement made is in accordance with Government policy to engage as little as possible in business competition with private commercial interests. If it is found, however, that this arrangement is not working as satisfactorily as was anticipated, the position will be reviewed. The Service will, however, continue to raise nursery stock for State afforestation and to sell treeseed as heretofore. Small packets of tree-seed have been distributed gratis to schools, and a total of 131 lb. was absorbed in this manner.

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Vainp nf Timhpr O.iantitv nf Receipts from all Estimated Estimated pori-mtnm-Fiscal Year. differ " " -"A near. during the year. the Year. during the Year, during the Year. J-'orests. £ Feet, B.M. £ Feet, B.M. Feet, B.M. Per Cent. 1929-30 .. 58 73,865 60,053,000 79,657 56,086,200 270,214.000 20-7 1928-29 .. 53 44,732 41,465,355 65,213 42,835,500 270,000,000 15-9 1927-28 .. 49 34,000 24,310,100 91,282 36,654,000 306,504,000 12-0 L926-27 .. 52 52,125 43,144,000 103,524 64,639,000 353,225,000 18-3 L925-26 .. 65 80,565 73,659,000 130,132 79,009,000 344,095,000 23-0 1924-25 .. 54 96,158 69,253,000 134,731 102,369,900 317,069,000 29-8 1923-24 .. 61 266,388 212,085,000 68,295 52,297,000 304,351,000 17-2 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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TABLE 6.

9. Tree-planting by Afforestation Companies, Local Bodies, etc. In addition to the area afforested by the State, it is estimated that the total area of exotic plantations established by the various afforestation companies, local bodies, &c., is now approximately 180,000 acres, of which about 75 per cent, is located on the pumice lands in the vicinity of Rotorua. These plantations should make a valuable contribution to the future timber requirements of the Dominion. 10. Local Collection of Seed. The year has seen advances in the matter of local collections of seed required for State afforestation. All regions save Westland, which is unsuitable, have made a start with this work, while Rotorua and Nelson regions have developed highly satisfactory seed-collecting organizations. The coming year will witness greater improvements generally since the year under review has in some cases, been, to a large extent, experimental. Rotorua and Nelson have proved that a proper seed-collecting organization can produce seed of as good quality as and at a lower cost than overseas supplies. The Service by this operation is, therefore, reducing an establishment cost as well as utilizing a product of our forests and employing labour in its collection. 11. Publications. Forest Alias. During the year seventy-two general-purpose plans were recorded under the permanent forest altas and the mapping of topographical features of portion of Riverhead and Kaingaroa Plantations was continued. Plans of the layout of firebreaks, planting blocks and compartments in parts of Riverhead, Maramarua, Kaingaroa, Golden Downs, and Eyrewell Plantations have been compiled, and the species plans of the areas subsequently planted are under preparation. Compiled plans, tracings, graphs, &c., totalled 1,4-32, while the assistance of another Department was obtained to make 1,248 white prints and seventy-five photostat prints. Four atlas sheets and one map of opossum-trapping blocks were lithographed and 1,400 copies printed. Photographic Record. The total number of negatives recorded was increased by 1,573, and now stands at 9,327. In all, 10,319 prints, nine lantern slides, and seven enlargements were prepared, of which 2,199 prints and two lantern slides were made by this Department. A considerable number of prints have been supplied on request to overseas Governments and to private individuals both here and abroad. Educational Publications and other Literature printed during the Year. 1,000 copies Leaflet No. 11 : " Firewood on the Farm." 1,000 copies Leaflet No. 12 : " The Properties and Uses of Tawa." 500 copies Leaflet No. 13 : " Waste Kauri Wood as a Source of Paper Pulp and Resin." 1,000 copies Leaflet No. 14 : " The Properties and Uses of Silver Beech." 1,000 copies Leaflet No. 15:' "The Properties and Uses of Taraire." 1,000 copies Circular No. 27 : "The Flora and Vegetation of New Zealand." 1,000 copies Circular No. 28: "Paper Pulp from New-Zealand-grown Woods." 12. Reference Library. New books, pamphlets, special reports, &c., to the number of 393 were added to the library during the year under review. The library is an authoritative source of reference on all matters of practical and theoretical forestry generally and cognate subjects, and as such its value is incalculable. The Service by its reciprocal arrangement with other Forest Services continues to receive annual reports, bulletins, special reports on particular lines of scientific research, experiments, &c., from all parts of the Globe and records its thanks to its many contributors in this respect. Regional libraries are being strengthened from time to time as funds permit.

,» Trees for planting. Forest-tree Seeds. v Trees for planting. Forest-tree Seeds. (Number.) (Weight in Pounds.) ear ' (Number.) (Weight in Pounds.) 1921 520,702 240 1926 ! 4,227,174 2,692* 1022 897,552 | 436 1927 4,760,490 3,861* 1923 1 1,475,581 ! 746 1928 3,481,398 2,156* 1924 I 1,839,512 618 1929 3,260,916 2,035* 1925 | 2,831,932 2,529* 1930 2,061,113 1,104* * Includes domestic and overseas sales.

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CHAPTER lI.—RESEARCH AND EXPERIMENTS. 1. Eorest Entomology. General. As mentioned in last year's report, forest entomological-research work is now being carried out at the Cawthron Institute, Nelson, under the direction of Dr. David Miller, assisted by the Forest Service Entomologist. The latter was seconded for duty to the Forest Biological Research Station, Cawthron Institute, as from the Ist January, 1930, and took with him the necessary Service equipment. The Institute insectaries have been placed at his disposal where necessary, pending the erection of those to be used solely for forestry investigations. Researches. Good progress with a wide programme of researches has been made and the results obtained jvere very satisfactory. In view of the large afforestation schemes now being developed in the Dominion, the investigations have been confined mainly into the insect pests of exotic timber-trees. Minor routine studies of matters affecting the indigenous timbers have, however, received attention, and preparations have been made to further extend this line of research during the coming year to embrace the more outstanding problems connected with the growth and utilization of the native timbers. Insect Survey. The insect survey has as its object the collection of data upon the distribution and degree of infestation of insects affecting exotic timber-trees. Of necessity as much matter concerning site factors, growth, and the silvical treatment of the various stands must be procured at the same time ; in fact, while the prevalence and degree of damage caused by insect pests is measured, all the factors which enable the conditions so measured to obtain must be noted and weighed. The survey has been extended this year to the Auckland and Rotorua Regions. While much valuable data were obtained the field work undertaken in Rotorua Region is only considered to be a preliminary reconnaisance in preparation for more intensive work next year. To facilitate this further work the establishment of a permanent field station has been decided upon. The survey is considered to be a vitally important part of the researches, the results determining to a large extent the particular pests upon which investigations shall be carried out. Sirex juvencus.—The control of Sirexjuvencus by use of the ichneumonid parasite Rhyssa persuasoria has been undertaken. Consignments of this insect have been received from Farnharn Royal, and from these adults have been successfully reared. No difficulty was encountered with mating, and a distribution of the parasite to infested stands at Hanmer Springs, Dumgree, and Blenheim, in the South Island, and at Palmerston North in the North Island, has been made. It is yet too early to state definitely whether the insect has become established, but observations made at the time of liberation are most encouraging, oviposition upon infested trees being observed. While the biology of Sirex is known generally, more intensive studies into the question are being prosecuted in view of the arrival in the near future of a further parasite from Europe. On all occasions the improvement of the silvicultural conditions of the infested stands has been urged. Neomyzaphis abietina. —-The spruce aphis attacks members of the genus Picea in New Zealand, and is particularly severe in the case of P. excelsa and P. sitchensis. These two trees are subject to repeated defoliation and are rdtimately killed. Studies have been carried out upon the biology of the insect, and one complete generation has been followed through. The occurrence of allate forms and the question of migration is receiving close attention, the possibility of the insect alternating with some plant outside the genus Picea is a most important one. Records of past fluctuations in the degree of infestation have been searched, and attempts to correlate ecological factors with these have been but partially successful, the paucity of reliable date proving a considerable handicap. A Hemerobid parasite of the spruce aphis has been discovered in New Zealand, but its occurrence has been ascertained to be too slight to have any marked controlling influence upon the pest. The aphis does not attack the spring foliage of the spruce, but the advent of the conifer spinning mite, which does attack this foliage, has made a complication in the investigation which has consequently been extended to include the mite. Inquiries for suitable parasites of N. abietina have been made, and it is hoped that such an insect will reach the Dominion next year. The investigation into the insect enemies of spruce is one of the station's most important activities, as it is well known that spruce is a valuable tree for the production of paper pulp. Hylastes ater. —The initial outbreak of this insect which occurred at Foxton was recorded in July. The insect was quickly identified and a survey made to ascertain the extent of the infestation with a view to putting into force measures for the total eradication of the pest. Unfortunately it was found to be firmly established over an area too large in size for such measures to be attempted. The insect develops in the stumps and roots of pines and in the adult stage attacks young conifers. The lifehistory of the insect has been worked out, and plans for its control by means of trap stems formulated. Sample plots have been placed in the infested area and careful records are being kept of the actual loss which this insect is causing. Eucalypt-pests. —The research.into the pests of eucalyptus concerned two insects.

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(а) Gonipterus scutellatus. —The control of this weevil by the introduction of a Mymarid parasite was attempted in 1927-28, when the parasite was reared and widely distributed throughout both Islands. Efforts to recover the parasite in the field not having been successful it was decided to make a further introduction. Supplies of parasitized material were received from the Australian Bureau of Entomology and from this material adult parasites were obtained. The breeding of New Zealand generations was completely successful, and adults from each generation as well as parasitized material were distributed in Nelson, Canterbury, and Wairarapa. In January, however, Mymarids, the progeny of the original 1927-28 introduction were recorded in the field at Auckland and Cambridge, proving that the insect was already established in these localities at least. The work of rearing further supplies of the parasite was therefore discontinued, and the whole of the parasitized material distributed. (б) Eriococcus coriaceus.—The collection and distribution of the ladybird Bhizobius ventralis both in the adult and larval stages has been continued. The ladybird is plentiful in, the South Island where it controls the scale insect, but is not so common in the North Island where the scale is a comparatively recent arrival. Consignments of ladybirds are therefore sent from the South to the North at intervals. During the past year larvae have been worked with upon most occasions on account of the rather heavy mortality occurring amongst the hibernating adults. Skin-infesting Insects. The damage caused by insects infesting opossum/skins was ascribed by the fur trade tp the " weevil," but is was found upon investigation that a number of insects were responsible. This work has been finalized, and a short account is given in the Journal of Agriculture, Vol. 39, No. 4, October, 1929, to which the reader is referred. Insects infesting Forest-tree Seeds. The infestation by foreign chalcids of the seeds of Douglas fir and wattle grown in New Zealand led to an extensive investigation of all imported tree-seeds. The results showed that not only were the seeds themselves infested at times, but that live insects in all stages were present in the accompanying debris. A cheap and effective method 'of fumigation is now applied successfully to all tree-seeds, both imported and locally collected. 2. SILVICULTURAL INVESTIGATIONS IN WESTLAND RIMU FORESTS. The State Forest Service in conjunction with the Canterbury School of Forestry is carrying on investigations on the silvicultural characteristics of rimu forests. In 1921 a study of the life-history of the rimu forests in Westland was begun by Mr. C. E. Foweraker, M.A., and since that time much data has been collected in regard to the silvicultural characteristics of rimu. Portions of this project upon which definite advance has been made are the proportion and distribution of the sexes in rimu, finalized in 1929 ; a study of seed production and germination, still in progress ; and a study of the natural conditions favourable to seed germination and development, also still in progress. Rate of growth and yield of these forests has been attacked by the installation of a considerable number of permanent sample plots which will be remeasured in 1933. Interim measurements which have been made, though indefinite, are encouraging. The formulation of silvicultural methods of treatment has been begun, but must necessarily follow on a fuller knowledge of the forest. A small nursery has been established for " wildling " rimu seedlings, and various treatments are in progress. Also cleanings and thinnings have been made in sapling rimu stands, the results of which will be watched with interest. A small plantation of rimu has been established on a typical cut-over area, but no observations are as yet possible. All work has been put on a more permanent basis by careful survey and " tying in " to the standard survey of the area. This has involved a considerable amount of work, but it will safeguard subsequent references to the plots in the event of a change in the personnel of the investigators. In the coming year it is intended, along with the ordinary progressive work of the investigation, to prepare a volume table for young rimu. 3. Forest-working Plans. A working-plan for Waiotapu Plantation was partially compiled during the year, and when completed will show the present quantity of timber in the plantation, the quantity at various future periods, and a suggestion as to the volumes which can be obtained by regulated cutting operations. The main difficulty in compiling any plantation-working plan is a solution of the problem of utilization of the forest-produce, and in view of the possibility of the establishment of the wood-pulp industry in New Zealand the Service at present regards this question with an open mind. 4. Other Studies. Microscopic Anatomical Investigation of Coniferous Foliage. A study of the microscopic structure of the foliage of various pines was completed and this work will materially assist in the identification of many coniferous species.

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Forest Mensuration. Further mill studies were carried out to obtain more data with respect to mill conversion of logs and also to discover the effect which biological defects in logs may have on the yield of some timber. Volume Tables. The compilation of a volume table for tawa —the first one for our hardwood species—was completed during the year. Generally speaking, the other New Zealand hardwoods do not lend themselves to volume tables owing to their irregular growth. Yield Tables for Exotics. For several years past yield tables for many exotic conifers have been collected, and have now been assembled for the information of officers. 5. Fobest Ecology. The Honorary Botanist (Dr. L. Cockayne, C.M.G., F.R.S.) continued his studies on the wild hybrid plants of the Dominion and several new forest hybrids have been added to the list which, including all the wild hybrids, now numbers no fewer than 426 groups. This particular investigation is of special importance to forestry, since it concerns several first-class-timber trees, and affords valuable information with respect to the incoming of certain life-forms into the undergrowth which previously may have been rare or wanting. The investigation of the growth of silver pine was also continued, and to this end Dr. Cockayne visited several areas of regenerating forests in Westland. In the vicinity of Arthur's Pass the Honorary Botanist studied the successions which have followed the burning of mountain-beech forest, and found that, whilst regeneration is non-existent in a forest which was burned twenty-five years ago, in a near-by area which had been felled and not burned, mountain-beech regeneration was evident in many places. 6. Experiment Stations and other Experimental Works. Westland Forest Experiment Area. A satisfactory year was experienced at this station and the majority of the trees in the plantation made good growth. Altogether fifty-one species have been experimented with (including eighteen species of eucalypts), but with the exception of Thuya plicata, C. Lawsoniana, Cryptomeria japonica, and P. ponderosa, which are all well established, the remainder can be written down as generally unsuccessful. A total new area of 200 acres was planted for the year, which included 32 acres on dredge tailings and 205 acres were blanked up. The results of the dredge-tailings experiments over a number of years show that P. ponderosa, P. laricio, Douglas fir, and special species of eucalypts can be successfully grown on this class of land. The fire-hazard at the plantation was considerably reduced by clearing up four miles and a quarter of fire-breaks and removing all dead trees and logs from the Mananui tram-line boundary. Work at the nursery has been somewhat curtailed, but the output for the year numbered 449,500 trees, of which 297,550 were planted locally, 2,200 were sold, and the remainder transferred for planting in Wellington and Nelson Regions respectively. The soil in the spare nursery blocks has been considerably enriched by ploughing in lupin crops as green manure. Weed-growth is still a serious factor in increasing the cost of producing nursery stock. The usual maintenance work has been attended to and all buildings, implements, &c., are in good repair. Rangitikei Sand-dune Station. A survey of the planted areas at this station was recently carried out, and showed that 671 acres have now been established in trees, made up as follows : P. radiata, 508 acres ; P. murioata, 45 acres ; P. pinaster, 118 acres. This total includes 158 acres of young trees planted during the year being 46,230 P. radiata, 27,450 P. muricata, and 38,285 P. pinaster, a total of 98,065, while blanking accounted for a further 5,630. In July last year the experiment was tried of raising P. radiata from slips and a 90 per cent, strike was obtained. The slips used were the leader or the top branches of two-year-old nursery stock, and at the close of the year the average growth was 12 in. with a good root system. While these results are academically interesting, it is questionable whether the experiment will have much practical value. The trees in the plantation, particularly radiata, are looking well, and last year made good growth due to a favourable season and an absence of wind. As mentioned in last year's report, this station is on a maintenance basis, and only minor operations are now being carried on. Waipoua Silvicultural Research Station. By the recent decision to establish a silvicultural research station in the Waipoua State Forest, the Service has. achieved an. objective towards which it has been working for several years. The station will be under the control of Mr. Arnold Hansson, M.F., formerly Chief Inspector of Forestry, whose first duty will be to report on the following aspects :—

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(1) The condition of the forest and the timber species in general, the extent of the timberbearing area, and the non-timber-bearing areas. (2) The means by which the forest can be improved and the range of the valuable species extended over the now non-producing areas, such as those which are covered in native forest scrub and the open manuka-covered land. That the staff will have a wide field of activity will be realized, when it is stated that their duties will cover the following studies (a) The demarcation of the forest types and the assessment of the working capital at present in the forest. (b) The establishment of permanent observation areas to ascertain the causes of the present conditions found within the various forest types, both vigorous and decadent. (c) The creation of those conditions which after observations are deemed to be most beneficial for the growth of the more valuable species, and thereby the possible extension of these species over the large areas where they do not now occur. (d) The investigation of the growth and yield of the main timber species, particularly kauri, in order to arrive at definite facts on a much discussed subject. (e) Investigation of the seeding periods of the main species, the collection of seed, its testing and growing. (/) The bleeding of kauri for resin, investigation of the flow of gum, and the effect of the bleeding on the general condition of the tree and the timber. (g) Investigation of factors influencing fire danger (weather and humidity observations). (h) Investigation (by co-ordination) of fungi, insects, &c., affecting the growth and life of the main timber-trees. (i) Collection of herbarium specimens and the study of the anatomy and structure of the native timbers. Also the maintenance of exchange of such stock with other similar institutions, both domestic and foreign. Waipoua State Forest is a national asset of approximately 40,000 acres, and as the last remaining kauri-forest of any size in the Dominion it has a sentimental and unique interest quite apart from its commercial value which demands that it be zealously conserved and extended if possible. It may be safely asserted that when the investigations mentioned are carried to finality, the resultant data will pave the way for the compilation of a working-plan to enable this last stand of New Zealand's finest timber to be placed under proper silvicultural management. Underplanting in Cut-over Forest. Approximately 12 acres of cut-over beech forest at Golden Downs (Nelson Region) was selected for this experiment and prior to planting-operations several large beech-trees were felled to let in light. The following species were then underplanted in pegged-off plots: Sequoia sempervirens, C. Lawsoniana, and Thuya plicata. An 89 per cent, strike was obtained, and the trees have made very good growth. The object of the plots is to ascertain the most suitable species to underplant cut-over areas of native forest; further work in this connection will be carried out during the coming year, using Cryptomeria japonica and other available species. Silver-pine Sample Plot. At Erua, on the Main Trunk Line (Wellington Region) a silvicultural experiment was commenced in order to observe the growth of silver pines (Dacrydium spp.) under both natural and artificially improved conditions, by draining the soil and neutralizing the acid therein. The sample plot is being operated on the theory that the slow growth of many of our native species may be directly due to an overacidity of soil. Bleeding of Pinus Radiata and Pinus Pinaster. The bleeding of various species of conifers for the production of resin, turpentine, &c. (generally known as the naval stores industry owing to the fact that in the early years of the seventeenth century wooden naval vessels used large quantities of tar and pitch) has been practised for several centuries in many European countries and in later years in America and to a lesser degree in parts of India and Sumatra, but it is believed that the experiment inaugurated by the Service at Riverhead (Auckland) in September, 1929, was the first of its kind so far as the Dominion is concerned. Two species only, Pinus radiata and Pinus pinaster were selected, and one hundred trees of each species were tapped. Samples of the gum were submitted to the Government Analyst, whose analysis showed the average composition to be as follows : — Pinus radiata. Pinus pinaster. Per Cent. Per Cent. Turpentine oil .. .. ~ .. .. 22-4 20-6 Resin .. .. .. .. .. .. 71-7 68-0 Water and impurities .. .. .. .. 5-9 11-4

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This must be considered as very satisfactory, and so far as Pinus -pinaster is concerned the content compares very favourably with the American product. It is not possible to make a comparison with the Pinus radiata figures as the bleeding of this species does not appear to have been practised to any extent in other parts of the world. It is expected that this experiment will be completed during the current year. 7. Forest-products Investigations. The activities of the Branch of Forest Products group themselves into two broad classes —laboratory investigations and industrial studies. Of the laboratory or fundamental studies probably more work centres around the determination of the basic physical and mechanical properties of our indigenous and exotic woods than is the case with any other forest-products activity. The methods of collection and testing employed have been standardized in conjunction with the forest-products authorities of Great Britain, Canada, India, South Africa, Australia, Federated Malay States, and the United States of America, so that strictly comparable properties of the woods of thfese and other countries are becoming increasingly available as the experimental work is continued from year to year. Eleven species have been investigated during the year, four being native hardwoods —kohekohe, silver beech, pokako, and pukatea ; three native softwoods — kaikawaka, silver pine, and tanekaha; and the remainder introduced softwoods — macrocarpa, cypress, Norway spruce, pondosa pine, and prickly-co'ne pine. Besides actual and comparative strength values of both green and air-dry material, the work has yielded much additional information of fundamental character, such as inter-relations of strength and weight, strength and rate of growth, &c. A study supplementary to the determination of basic mechanical properties is the investigation of the effect of defects and physical properties upon the strength of structural timbers. More recently the work has been focussed on insignis pine, some eighty full-sized bridge-stringers having been tested for this purpose. To the critics it may come as a surprise to learn that by the development of appropriate structural grading rules similar to those already in use in other countries it has been possible to assign to insignis pine a higher working-stress for design purposes than is applied to virgin grown pondosa, western white, and sugar pine in North America. The boxing activities have, as in former years, centred around the requirements of the dairy industry. The multiplicity of New Zealand butter-box designs appearing on the overseas markets was considered to be detrimental to the marketing of our produce, and attention has been directed successfully to the evolution of a standardized container which can be adopted without dislocation of trade. Determination of the strength of various species of wood, both indigenous and exotic, when used as telegraph or power poles has been continued throughout the year by actual strength-tests of a number of poles, simulating as nearly as possible actual conditions in service. In the field of wood-preservation notable progress has been hindered by the lack of pressure-treat-ment equipment, and in view of the enormous waste occurring as a result of insect and fungal attack of wood, this is regrettable. Nevertheless, with the equipment and personnel available, good progress has been made. Routine examinations of the various preservatives appearing on the market continue to be made and non-pressure treatments developed for building-timbers, fencing posts and poles, &c. The final test of any wood-preserving process or material lies in the results yielded in actual service, and accordingly experimental post and pole lines are established each year, and inspected periodically. As a result of the development of improved air-seasoning and kiln-drying practices by the Service, the New Zealand Railways has arranged to install two batteries of kilns at the Otahuhu and Addington Workshops, the supervision of design and operation being carried out by the Service. These will be large model installations and the demonstration work possible therewith will, it is anticipated, inaugurate a new era of advanced drying technique throughout the Dominion. The microscopic study of the zonation of rimu and miro, by which it was possible to create a new class of timber known as " medium " for inclusion in the new National Grading Rules, was extended to totara and matai, but the results showed that no transition zone occurred in these latter species, and that the medium classification was not therefore applicable to them. The marketing of the variousjbeech timbers (Nothofagus spp.) has been hindered by difficulties of identification, and a study inaugurated during the year for the purpose of establishing an identification key is, therefore, of considerable significance. Although the economic possibilities of developing an extensive trade in our minor forest products such as tanning-barks, naval stores, distillation products, &c., are not very promising, largely on account of high labour costs, the yields of these are being studied and those products investigated during the last year included turpentine and rosin from insignis pine, bled kauri-gum, solvent extractive from kauri-wood, and the essential oils of camphor and totara. In addition to the industrial studies already outlined, an extensive economic pulpwood survey has been in progress with a view to ascertaining the commercial possibilities of carrying into effect the pulp and' paper studies made during previous years in North America by the establishment of pulp and paper mills in promising localities. This study was also supplemented by the successful demonstration of the practical utility of newsprint manufactured from New-Zealand-grown woods by the production of issues of the Auckland Star, the Wellington Evening Post, and the Dunedin Evening Star, on the paper manufactured on behalf of the State Forest Service in North America. Still other industrial studies included tests of wine-kegs manufactured from tawa and silver beech, the application of the new National Grading Rules to various wood-using industries, and overseas trade-extension work in tawa and beech.

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CHAPTER lII.—THE TIMBER TRADE. 1. Production. The following table showing the reported output in feet board measure of the various species of timber from New Zealand sawmills during the years ended 31st March, 1927, 1928, and 1929, has been compiled from figures supplied by the Government Statistician.

TABLE 7.

The sawmill production for the year ended 31st March, 1929, reported by the Government Statistician as approximately 270,000,000 ft. b.m. agrees closely with the State Forest Service prediction of 269,000,000 ft. b.m. The predicted cut for the year ended 31st March, 1930, is 272,000,000 ft. b.m., as based upon the monthly timber loadings reported by the New Zealand Railways and published by the Government Statistician in the Monthly Abstract of Statistics. The outstanding feature of the year's production was the decrease in production of kauri and totara, the cut being the lowest on record for over ten years, and reflecting the rapid disappearance of our supplies of virgin stumpage of these two most valuable softwoods of the New Zealand forests. The trend of regional timber-production for the period 1886 to 1928 is shown in the accompanying graph. Auckland and Rotorua Regions, combined with Gisborne (i.e., Auckland Province), maintain the premier position, but register the lowest cut for probably forty years. The ranking of other regions remains unchanged, but Westland is rapidly approaching the Auckland figures, and will probably assume the premier position within the next ten years.

Graph 5. —Production of Rough-sawn Timber for Years ended 31st March, 1927, 1928, and 1929.

Graph 6.—Trend ob Sawn-timber Production by Forest-convervations Regions forthe Period 1886-1929.

Tlie average f.o.r. mill value per 100 ft. b.m. (all species) for the year ended 31st March, 1929, was 17s. 10d., compared with 18s. for the preceding year. Owing to the new co-operative sales organizations established in the principal sawmilling regions during the year ended 31st March, 1930, prices have since become stabilized, and it is anticipated that the average f.o.r. value for this period will show an increase over that registered for the year ended 31st March, 1929.

1927. 1928. 1929. Species. ; • 1 — — p -xQuantity. Per Cent. Quantity. Per Cent. Quantity. Per Cent. Feet, B.M. Feet, B.M. Feet, B.M. Rimu .. .. 171,489,000 56-0 156,314,000 58-0 156,240,000 57-9 White-pine .. 65,328,000 21-3 53,736,000 19-9 56,790,000 21-0 Matai .. .. 19,380,000 6-3 15,207,000 5-6 15,753,000 5-8 Kauri .. .. 18,475,000 6-0 15,874,000 5-9 10,743,000 4-0 Totara .. .. 14,179,000 4-6 10,728,000 4-0 8,611,000 3-2 Beech .. .. 8,596,000 2-8 7,923,000 2-9 9,846,000 3-6 Insignia pine .. 6,668,000 2-2 7,695,000 2-9 9,168,000 3-4 Other .. .. 2,389,000 0-8 2,306,000 0-8 3,063,000 1-1 Totals .. 306,504,000 100-0 269,783,000 100-0 270,214,000 100-0 I

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Microphotograph showing Starch but no Heartwood Products in outer white Sapwood Zone of Rimu. 315.

Microphotograph showing Heartwood Products as well as Starch in Transition Zone of Rimu. 225.

Microphotograph showing Heartwood Products and Absence of Starch in Heart Zone of Rimu. 120.

[To face page 16.

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Cross Section of Log showing Sap, Transition, and Heart Zones.

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2. Industrial Technique. In the field of logging, milling, and marketing, industrial technique continues to show some improvement. Logging ranks as the most efficient operation of the industry, and better logging and yarding equipment is being developed, and improved logging tramways installed. Overhead or high lead logging systems continue to grow in popularity, but whether these are adaptable to all classes of forest, either from an economical or a silvicultural point of view is doubtful. Improvement in milling practice is hindered by under-capitalization and by the surplus of second-hand machinery available throughout the Dominion. In many instances also, mills are underpowered and undermachined, but in this latter direction a real improvement is evident. The downward trend of prices since 1921 has forced producers to study more intensively than ever before the possibilities of reducing costs of production, a reflection of which is found in the wider use of electrical motors and of various classes of internal-combustion engines such as diesels, &c., as prime movers; sawing technique, however, has not kept abreast of this development, and the use of better carriages and of handsaws now appear desirable. Signal progress has been achieved in the marketing field, the industry having adopted during the last year the Grading and Classification Rules for Building Timbers developed by the special Government Timber Committee in 1928. This removes, therefore, one of the difficulties under which the industry has been operating for many years, different standards and grades having existed not only in the various sawmilling regions, but also in individual mills. Wood users and consumers have suffered from this handicap, and should accordingly benefit from the new standardized national grading rules. Little progress, however, has been registered in the field of seasoning technique. As noted last year, insanitary yards, poor drainage, low foundations, poor filleting and piling, &c., appear almost typical of the average sawmill operations, and no marked improvement is likely until it is frankly recognized that the ultimate responsibility for the seasoning of timber rests with the producer. Viewed from the practical standpoint, the consumer can purchase well-seasoned imported timber, whereas the local product, even when so-called " dry," at an advance of 3s. per 100 ft. b.m. on green prices, carries no guarantee that it is properly air-seasoned, but may further dry out and shrink after delivery. Obviously, the responsibility for the condition of his timber does not concern the consumer. His one consideration is that it be delivered for use in a satisfactory condition, and the ultimate responsibility for ensuring this must logically rest with the producer. 3. Exports. The export trade in timber for the year ended 31st December, 1929, was higher than for the two previous years of 1928 and 1927, the respective figures being 39,154,000 ft. b.m., valued at £439,950 ; 35,029,000 ft. b.m., valued at £377,480; and 37,181,000 ft. b.m., valued at £425,930. The average f.o.b. value also showed a considerable increase on the 1928 figure, although still a little lower than the 1927 value, the respective figures being 225. 6d., 21s. 7d., and 235. per 100 ft. b.m. Australia continues to absorb practically the whole of our timber exports, but inquiries from the United Kingdom continue to increase, and the Government, in co-operation with various national and regional sawmilling organizations, is increasing its trade-extension activities in Europe to promote the wider utilization of such hardwoods as silver beech and tawa, of which New Zealand possesses a surplus supply. During the past year the Australian timber tariff was revised in favour of New Zealand woods, an increased tariff being placed on Scandinavian and American timbers. Ultimately this should result in an increased export of all species, but it is possible that no marked improvement will take place until the Commonwealth has recovered from its present trade depression. Practically the whole of the exports are of rough-sawn material, dressed lines comprising only 5-8 per cent, of the total exports. As in previous years white-pine comprised the bulk of the export trade, representing in quantity 78 per cent, of the total exports, as compared with only 72f per cent, during the year ended 31st December, 1928.

TABLE 8. Exports of Sawn Timber and other Forest-produce.

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(From information supplied by the Comptroller of Customs. All figures refer to the years ended 31st December, 1927-29.) 1927. 1928. 1929. Item. ; — Quantity. Value. Quantity. Value. Quantity. Value. Ft., B.M. £ Ft., B.M. £ Ft., B.M. £ White-pine .. .. 27,802,000 289,980 25,439,000 262,390 30,493,000 317,990 Rimu .. .. .. 3,841,000 36,180 4,867,000 42,290 3,122,000 27,140 Beech .. .. .. 2,581,000 37,330 2,24-6,000 29,780 3,016,000 39,700 Kauri .. .. .. 2,476,000 57,090 1,670,000 35,700 2,123,000 51,040 Other (New Zealand) .. 464,000 4,870 750,000 6,850 349,000 3,470 Other (foreign) .. .. 17,000 480 57,000 470 51,000 610 Totals .. .. 37,181,000 j 425,930 35,029,000 377,480 39,154,000 439,950 Tons. £ Tons. £ Tons. £ Kauri-gum .. .. 4,674 298,630 4,394 240,140 4,937 267,610 Tanning-bark .. .. 38 650 43 5S0 53 900 Fungus .. .. .. 141 20,310 12 1,270 76 9,200

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With an expanding dairying industry in several States of the Commonwealth, it is anticipated that the export trade of white-pine for dairy-produce containers will continue to increase. It is certainly significant that Australia, which is endeavouring to improve the marketing of its dairyproduce on the European markets, continues to prefer New Zealand white-pine containers to the Scandinavian and North American spruce boxes which are so widely used in this Dominion. The decreased trade in rimu as compared with the previous year was no doubt due to the intensive competition by Scandinavian and American timbers, but with the revised tariff in favour of the New Zealand woods, Australia should absorb an increasing quantity of this species, and already inquiries and orders reflect this trend in the trade. Beech exports registered a new peak record, exceeding 3,000,000 ft. b.m. for the first time in the history of the trade. This species has a wide variety of special uses, and does not suffer from competition so much by other species imported into Australia as by local hardwoods. Having regard, therefore, to the general trade depression of the Commonwealth, it is not improbable that the export trade in beech will decrease temporarily. Ultimately the trade should increase very materially. A slight increase in the export of kauri was registered during the period under review, 2,123,000 ft. b.m., with an average f.o.b. value of 48s. per 100 ft. b.m.; being shipped during the year ended 31st December, 1929, as compared with only 1,670,000 ft. b.m., valued at 425. 9d. per 100 ft. b.m., exported during the previous year. The high price of this species debars it from any but special and luxury uses, and no considerable increase in its export can be anticipated. While the quantity of miscellaneous timbers exported shows a decline as compared with previous periods, it is anticipated that the trade will improve during the current year. Matai continues as the most important of the miscellaneous species shipped abroad. 4. Imports. The import trade for the year ended 31st December, 1929, reached a total of almost 63,000,000 ft. b.m., which represents an increase of about 2,500,000 ft. b.m. over the 60,500,000 ft. b.m. importations for the year ended 31st Deceniber ; 1928, although still considerably below the peak importation of of 82,000,000 ft. b.m. during the year ended 31st December, 1925. Primarily, the import trade in timber differs from the export trade in the large proportion of hardwoods which it includes. Approximately 40 per cent, of the total imports are of hardwoods, whereas of the exports only 8 per cent, are hardwoods, the remainder in both cases being softwoods. (" Hardwoods " and " softwoods " are the commercial terms applied to the woods produced by broad-leaved and needle or scale-leaved trees respectively.)

TABLE 9. Imports of Sawn Timber and other Foeest Produce.

Notes. —(1) Value represents value in country of export, plus 10 per cent. (2) Allowance has .been made in compiling totals for the fact that for duty purposes dressed timber under 1 in. in thickness is tallied by the Customs Department as if its thickness were increased by 20 per cent. (3) The Customs returns are more itemized than in previous years. To make the above statistics strictly comparable with the items listed in previous annual reports, the items " butter- boxes " and "cheese-crates" should be included under "hemlock and spruce," "oak," and "ash, hickory, &c.," under " other."

(From information supplied by the Comptroller of Customs. All figures refer to the years ended 31st December, 1927-29.) 1927. 1928. 1929. Item. Quantity. Value. Quantity. Value. Quantity. Value Ft. B.M. £ Ft. B.M. £ Ft. B.M. £ Australian hardwoods .. 26,398,000 418,830 23,706,000 356,330 22,116,000 334,430 Douglas fir .. .. 17,638,000 125,680 16,713,000 116,850 16,188,000 113,840 Redwood.. .. .. 7,583,000 85,580 7,478,000 87,350 11,678,000 130,310 Hemlock and spruce .. 2,346,000 22,940 4,903,000 45,210 4,108,000 39,580 Butter-boxes .. .. 1,807,000 25,830 2,006,000 28,770 3,147,000 42,530 Oak .. .. .. 1,837,000 51,620 2,041,000 52,590 2,514,000 66,670 Cheese-crates .. .. 1,433,000 19,120 785,000 9,420 1,373,000 15,210 Cedar .. .. .. 2.390,000 24,270 2,066,000 20,690 1,335,000 13,530 Ash, hickory,.&o. .. .. 160,000 6,130 149,000 5,950 161,000 6,700 Other .. .. .. 176,000 4,720 669,000 15,690 210,000 7,140 Totals .. .. 61,768,000 784,720 60,516,000 738,850 62,830,000 769,960 Number. £ Number. £ Number. £ Laths, palings, shingles, &c. 10,156,000 15,420 7,368,000 11,230 14,215,000 20,230 Tons. £ Tons. £ Ton". £ Tanning-bark .. .. 865 12,350 1,442 23,650 1,918 23,210 Wood-pulp .. .. 3,156 38,470 2,382 28,910 4,327 50,650

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The imported hardwoods are divided naturally into two classes of product, those required for constructional purposes —such as poles, sleepers, bridge and structural timbers, &c. —and those used for building, interior finish, fitments, furniture, car-finishing, &c. To a large extent the constructional timbers do not enter into competition with the local woods, some of which, although suitable for these purposes, exist in such small quantities as to meet only a small portion of the demand. Nevertheless, it has been possible during recent years to extend the utilization of these native timbers, and it is largely due to the increased Government purchases of silver-pine aijd totara telegraph poles and sleepers that the importations of hardwoods have receded from 26,000,000 ft. b.m. in 1927 to 23,750,000 ft. b.m. in 1928, and to 22,000,000 ft. b.m. in 1929. Of the total hardwood importations, Australia supplies almost 90 per cent., the remainder being oak from Japan, and ash, hickory, mahogany, oak, &c., from Europe and America. The extent to which the imported hardwoods might be replaced by locally grown woods is not easily determined. Theoretically, the total might appear fairly large, but from a practical standpoint it is estimated that under existing conditions only 5,000,000 ft. b.m., or 20 per cent., of the total hardwood importations might be replaced by the use of indigenous species. By research and development work, however, it should be possible to increase this percentage considerably. Although the total importation of hardwoods decreased by over 1,500,000 ft. b.m., the total importations of softwoods increased by almost 4,000,000 ft. b.m. from 34,000,000 ft. b.m. for the year ended 31st December, 1928, to 38,000,000 ft. b.m. during the year ended 31st December, 1929. Douglas fir continues to rank as the most popular of the foreign woods, although the quantity imported during the year ended 31st December, 1929, reported as 16,188,000 ft. b.m., is the lowest on record since 1924. Californian redwood appears to be challenging Douglas fir for its premier ranking amongst the foreign woods, the quantity imported for the year ended 31st March having reached a total of 11,678,000 ft. b.m., valued at 225. 4-d. per 100 ft. b.m., as compared with only 7,478,000 ft. b.m., and an import value of 235. 4d. per 100 ft. b.m. imported in the previous year. This increase in trade, fortunately, has not been wholly at the expense of the local woods, but has been shared by western red cedar, the imports of which have receded from 2,066,000 ft. b.m. in 1928 to only 1,335,000 ft. b.m. in 1929. In spite of its high general use value, the cedar does not appear to be able to hold its markets against the competition of the redwood. Practically the whole of the redwood and cedar used is imported in the form of rough sawn material. Most of the hemlock imported comprises dressed building lines, export-fruit cases and cheesecrates. As regards the dressed building lines and export-fruit cases, it would appear that these have been sold not merely on a price advantage, but on superior service in the way of better manufacture and drying as compared with the competing local woods. Cheese-crates, on the other hand, do not exhibit this same advantage over the locally produced article, and there is little doubt that with more care exercised in their seasoning, the silver-beech, white-pine, and insignis-pine crates would not be merely equal in value, but decidedly superior to the imported hemlock package. The situation in respect to fruit-cases is a peculiar one. White-pine undoubtedly yields the best locally manufactured case, but the prices which the white-pine producer can secure for his timber, both for export and for other domestic use, are so much higher than the case-manufacturer can pay that he is only interested in the trade as an outlet for his offcuts, culls, &c. The same remarks apply to silver beach, and while both of these woods may, by improved manufacture and seasoning, become increasingly available for fruit-case production, more promising results are being secured by improving the technique of manufacture and seasoning of insignis pine. In spite of the condemnation of spruce butter-boxes by the Dairy Produce Board and by independent authorities upon the European butter-markets, the imports of butter-boxes continue to increase, the figures for the three years ended 31st December, 1927, 1928, and 1929, being 1,807,000 ft. b.m., 2,006,000 ft. b.m., and 3,147,000 ft. b.m. respectively. Aside from the serious risk of tainting the produce, the boxes are decidedly inferior to the local white-pine and silver-beech packages, as proved not only by scientific box-tests, but by service tests on the various overseas markets. Again, as in the case of the hardwoods, it is difficult to estimate to what extent the softwoods are replaceable by the local timbers. Douglas fir is required for long, light structural members which it is difficult to secure from the New-Zealand-grown woods, and while important Government and localbody building authorities insist upon the wide use of heart timbers for weatherboarding, exterior trim, &c., importations of Californian redwood and Canadian western red cedar are being used to supplement the local supplies of heart timbers. The importation of fruit-cases, which are included in the item " hemlock and spruce," appears to have been justified owing to the difficulty of securing a superfine locally manufactured container for the carriage of export fruit, but it is anticipated that in the very near future considerable improvement in the locally produced insignis pine case will qualify it for the export fruit trade. It would appear that whereas only 17,000,000 ft. b.m. out of the total softwood importations of 38,000,000 ft. b.m. might be immediately replaceable by local woods, by improved manufacturing and seasoning technique, and by research and development work this quantity might almost be doubled. One outstanding feature, of the year's import trade was the visit of a timber delegation from British Columbia. In so far as its objective was to replace American supplied, timber by Canadian woods, the delegation had the support of the Government, this being in line with the declared policy of fostering the internal trade of the Empire, especially with Canada, which is a promising customer for increased quantities of this Dominion's exports of dairy produce, wool, &c. But while New Zealand is fully in sympathy with the Canadian desire to capture as much as possible of the timber imports from other countries, the Government is primarily interested in reducing imports to a minimum, and will continue to encourage and assist the local producers to improve the quality of their products and to secure a larger proportion of the total demand.

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Gbjumi 7.—lnter-relations of Timber-consumption, Building Activities, Population Movements, and External Trade.

5. Timber Industry and Markets. At no time since the pre-war period lias the industry more nearly approached a rational state of stabilization, and in no year has it achieved more rapid progress towards this very desirable objective. Basically the timber trade depends upon the constructional and building industries for its domestic markets, and as these industries move in sympathy with general population movements and trade fluctuations, it follows that so must the timber trade move correspondingly. As illustrative of the inter-relations of the various factors involved, the accompanying graphs covering the period 1900-29 have been prepared. From these it will be seen that as measured by a consistent excess of exports over imports, the decade ending in 1907 was a fairly prosperous one, and that both the natural and external increase in population showed a substantial improvement as compared with the previous decade. The erection of new houses, &c., was considerably stimulated, and in 1908 wood consumption rose to a peak of 390,000,000 ft. As is usual with such trends, house-building tendedjto exceed normal requirements, and whereas the housing ratio or number of houses per 1,000 of population was at 195 during this decade, within the next decade it rose to 204. At no time since the pre-war period has the industry more nearly approached a rational state.

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As compared with the period previous to 1907, that, following it was far from a prosperous one, and the usual reaction set in. The number of houses erected during the 1911-16 intercensal period fell to 5,600 per annum, and during the later war years to less than 5,000 per annum, as compared with 6,400 per annum erected during the 1906-10 period, and timber consumption fell in sympathy. After the cessation of hostilities, the suspended building activities of the war-period began to crystallize, and new homes were in demand. Further impetus to the movement resulted from the abnormal increase in population, the average annual natural increase climbing to over 17,000 for the 1921-26 intercensal period as compared with only 15,000 during the previous period, and the average annual external increase to 10,000 as compared with only 4,000 for the 1916-21 period, so that with the exception of 1924, every year from 1919 to 1929 showed an increase in building activities, the number of new dwellings estimated from the building permits issued in 1926 reaching a peak of over 9,000, with timber-consumption increasing correspondingly. As in the 1906-10 period, the housing ratio increased rapidly, but instead of again commencing to fall after building activities and timber-comsumption had reached their peak, tended to still further increase, the explanation lying in the serious fall both in natural and external population increase (from over 28,000 in 1926 to 16,000 in 3.928) and in a large number of people moving from rented houses into new buildings of their own. It must therefore be considered that building activities and timber-consumption have progressed at a high level during recent years, and that readjustments to a lower level must be found in the near future. Generally speaking, the domestic demand showed an. improvement during the 1929 AprilDecember period as compared with the corresponding period of 1928. The explanation lies in increased building activities as evidenced by the monthly building statistics shown in the foregoing graph. With a drop in the building permits for the 1930 January-March period the domestic demand has slackened. As considered by individual localities, the situation varies considerably, Auckland and Wellington representing the extremes, with Christchurch and Dunedin ranking between. Whereas in Auckland the building permits for the 1930 January-March period totalled only £337,765, as compared with £591,965 for the corresponding period of 1929, in Wellington the respective figures were £800,540 and £628,117, in Dunedin £243,971 and £134,980, and in Christchurch £232,296 and £229,429.

Graph 8. —Value of Building Permits, by Months, for Years ended 31st March, 1925 to 1930.

As to the effect of imports upon demand the consumer generally is sympathetic to the use of local woods, provided he can secure what he wants. If this condition can be fulfilled, he will, as often as not, be prepared to pay a little more for the local article than for an imported timber; but he must have the article he requires. For instance, an import trade in hardwood flooring is now in course of development. Super-machined, kiln-dried, and secret-nailed oak, maple, birch, and beech floor-strips bid fair to establish a new fashion in flooring. Yet in its beech, and probably tawa, the Dominion has two woods of excellent value as hardwood flooring. Can we not produce and market beech and tawa flooring to the same high standard as our overseas competitors ? As far as is known to the State Forest Service there is no inherent difficulty involved. Any such substitution of local for imported woods is of paramount importance, inasmuch as it will assist to offset the fall in demand resulting from decreased building activities in the future. Increased exports, as well as decreased imports, will assist to maintain production at maximum level, and again the solution of the problem lies in improved service. Australia has revised its tariff in favour of New Zealand woods, but even with this advantage it will be necessary to pay improved attention to the marketing of the local woods on the Commonwealth markets. After the revision of the tariff in 1929, inquiries and orders for export increased immediately, but the Australian trade depression which followed afterwards resulted not only in a reduction in inquiries and orders, but also in many cancellations. The natural corollary to the upward trend in production resulting from the increased building activities of the 1919-26 period and the general high level of prices maintained throughout was the entry of a large number of new operators into the industry, as shown in the accompanying graph, which also charts the percentages of its eight-hour cutting-capacity at which the industry operated during the 1920-29 period.

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Graph 9. —Number of Mills reporting to Government Statistician, and their Operating-capacity, for Years ended 13st March, 1921 to 1930.

From the graph it would appear that the entry of new mills kept pace with the increased production. What is more significant is that the 1926-29 depression in the industry has eliminated a large number of units, and that the industry is now operating at a higher percentage of its producing-capacity than during any other year in the last decade. As compared with other industries in the Dominion, such as freezing, woollen, footwear, &c., many of which are operating at under 40 per cent, capacity, it is in a fairly healthy condition, especially when consideration is given to the fact that prices are stabilized and bad debts lower than ever before. Reviewing, however, the various factors involved —that is, possibilities of substitution of local for imported woods, increased exports to Australia, and decreased local building activities—it woidd appear as if the industry is faced for the next year with a decrease in production. CHAPTER IV.—GENERAL. 1. Wild Life in State Forests. As the policy of the Service with respect to the control and administration of forest wild life was referred to in some detail in last year's report it is not proposed to repeat those remarks but it is desired to emphasize the fact that the damage caused by noxious wild animals in the Dominion —particularly deer and pigs—is no longer of parochial concern only, but has reached the stage when it must be faced as a menace to the national well-being. Experience has definitely proved that owing to the natural increase of these animals only measures of control which can be exercised systematically, economically, and continuously can reduce the existing herds to within safe limits ; and with these considerations in mind the Service has formulated its plans as far as possible. The following paragraphs contain a resume of the year's activities in this respect. Deer. The number of deer-tails received was 9,598, made up as follows : Nelson, 3,158 ; Westland, 488 ; Southland, 3,883 ; Canterbury, 2,069. In addition 404 deer were destroyed in plantations, which makes a recorded aggregate of approximately 10,000. It has become increasingly apparent that deer, in addition to the damage they cause in indigenous forests, now constitute a serious menace to the exotic plantations in several of which they are unfortunately established, and their attacks on compartments of Douglas fir raise a new problem in silviculture. Organized deer-destruction is therefore of national importance, and should be dealt with accordingly. In North Canterbury State forests systematic deer-destruction was carried out by three parties working in close co-operation with contiguous run-holders, and as the results were satisfactory to all concerned, it is proposed during the coming year to extend this method of destruction as far as funds will permit. Shooting will be closely supervised, and every care taken to prevent interference with stock. Regular shooting has been undertaken in the Tararua forests (Wellington Region) and at the Blue Mountains (Otago) ; at the latter station the fallow deer destroyed averaged seventy per month. Increasing success has attended the commercial exploitation of fallow and red deer hides. Monthly consignments of hides for export are coming forward from Nelson, Canterbury, and Southland, and 1,200 hides were also sold by the Service for export. It is hoped that this market, when fully developed, will reduce the cost of deer-destruction by at least 25 per cent. Every assistance in this connection has been given to private hunters and skin-buyers alike. At present the cost of shooting averages about Bs. per head, although this may be slightly reduced with better organization and transport facilities.

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For several reasons experiments in marketing venison have not been as successful as was anticipated. The killing is usually done in localities far removed from highways or rail and transport of carcasses is therefore slow and costly. It would appear that to be commercially successful venison should be delivered at the nearest freezing-works at a cost not exceeding 4d. per pound, whereas experiments to date have resulted in a cost far exceeding that figure. In heavily stocked areas shooting by private parties may lower the cost, but the difficulty in maintaining a regular supply over a lengthy period, so necessary to successful marketing, appears almost insuperable at present. Further " salt lick " experiments were carried out in the native forest areas, and although one " lick " was poisoned with strychnine the result was unsatisfactory. Local climatic conditions seem to militate against the success of these experiments, and another contributing factor is the mobility of deer in the native forests and their apparent avoidance of places disturbed by man. In plantations in the pumice areas, however, present evidence indicates that the " licks " eventually attract deer and thus facilitate their destruction. Opossums. The opossum is the only acclimatized animal from which revenue accrues to the State Forests Account. The total receipts from this source during the year under review amounted to £4,575 13s. Bd., a decrease of £164, compared with th 6 year 1928-29. As in past years, this revenue has been applied towards the cost of regulating and supervising opossum areas and in the destruction of deer, wild pigs, goats, and forest vermin with a view to protecting forest-regeneration and food-supplies for birds. For some years opossum-pelts have found ready overseas markets and good prices have been obtained for first-grade skins, but in common with all hides, the prices for this product now show a falling tendency, and it would appear almost certain that the relatively high prices secured by trappers during the past two years will not be maintained in 1930. In addition, an appreciable lowering in the quality of the general average skin coming in to the market from numerous localities is noticeable. This loss in quality and value will show a progressive increase unless and until fresh breeding-stocks are released. Action in this direction must, however, remain in abeyance until the habits of the animal and its effect upon its botanical and biological environment are more definitely ascertained, and with a view to assisting in this direction an experimental opossum-control plot has been established for observation purposes in a State forest in the Wellington Region. The area has been securely fenced against all browsing animals, but is freely accessible to opossums. The experiment commenced in the Wellington Region in 1929 by the demarcation of State Forest No. 35 into twenty opossum-trapping blocks has proved successful, and consequently thirty-two additional blocks have been surveyed and will be balloted for in due course. The scheme is advantageous to trappers as it ensures a certainty of employment during the severest winter months—July and August. Moreover, inspection of blocks by forest officers is facilitated, definite boundaries are established, and this, together with the introduction of branded traps, has resulted in skins being marketed in better condition. An extension of this system to other State forests is contemplated, and will be put in hand as rapidly as staff can be made available. It is satisfactory to record that poaching appeared to be less serious than in previous years, most of the offences being of a minor character ; for this a closer patrol of opossum areas by forest officers and the block system of allotment are to some extent responsible. A feature of the year's work has been the marked interest evinced in the introduction of a more humane type of trap. Several different types have been submitted to and examined by the Service, but apparently one which will be satisfactory from all points of view has yet to be made. Pigs. A bounty of Is. per wild pig was paid on 26,544 pigs killed in the following districts Nelson, 896 ; Rotorua, 2,395 ; Auckland, 7 ; Taranaki, 23,246. As a menace to forests and farms wild pigs are second only to deer and goats and more effective methods of extermination are continually being sought and tested. So far the commercial tanning of pig-skins has been unsuccessful, for research has shown that New Zealand wild-pig hides have not the characteristics of the American product, which produces a very fine grade of leather suitable for many purposes. The American species belongs to the peccary family, the bristles of which are spaced irregularly in groups of three, but the local animal is apparently a product of the domestic variety. Fresh avenues are being explored to find a use for the local product. No satisfactory poison-mixture for pig-destruction on a large scale has yet been found, but further experiments will be continued to this end. Goats. Goats, which are extremely destructive to forests, are increasing in Taranaki, Nelson, and portions of Otago, notwithstanding continuous shooting by field officers. Fjxperimental shipments of goat-skins are under consignment to overseas markets for leather-testing. It is hoped that the quality will equal the hide of the Indian mountain goat, which is the present standard goat-hide on the world's markets. Campers and trappers are now being given free ammunition to shoot goats upon production of their tails—the ratio being three rounds to each tail produced.

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RaU, Stoats, &c. Rats appear to have increased in numbers since opossum-trappers discontinued the baiting of traps, and to assist rat-destruction a royalty of 2d. per skin will be paid for all rats caught in State forests. Stoats are mortal enemies to bird-life and in forested lands where settlement is not affected they should not be protected, but should be regarded as vermin, and dealt with accordingly. Bird-life. As native birds have so many introduced natural enemies and these operate also as disturbers and food-ravagers, it is not surprising that native bird-life generally appears to be on the decline. As far as the presence of exotic animals will permit all State forests function as bird sanctuaries. 2. Staff. The extended afforestation programme and the institution of large-scale relief works subsequent to the cessation of planting, imposed a heavy tax on the energy of all sections of the staff ; and, although this created many new and unexpected difficulties, the year's work was carried through efficiently and expeditiously with no material increase in the permanent personnel. In this connection it is interesting to mention that the ratio between permanent staff personnel and area controlled is smaller in New Zealand than in any of the States of the Commonwealth of Australia or in the Union of South Africa, even though the artificial-plantation area, which demands the most intensive administration of any, far exceeds that of the other countries mentioned.

TABLE 10. Comparison of Total Employees.

3. Honorary Forest Rangers. Honorary Rangers now number 103 and their valuable assistance and co-operation in many forestry matters are again gratefully acknowledged. 4. Unemployment. Being essentially a winter work, afforestation has long been recognized as a suitable medium for unemployment relief. The exigencies of the labour-market again necessitated the creation of certain relief works for several months of the year, and the extent to which the Service assisted in this direction over the past four years is briefly illustrated by the appended table.

TABLE 11. Summary of Labour Complement employed during the Past Four Winter Periouds.

These figures do not include the permanent field staff of some seventy controlling officers, but include the semi-permanent standing labour complement of from, four to five hundred men who are employed practically all the year round upon general maintenance work, fire patrol, &c., in the summer, and during the winter period form the basis of planting crews as foremen, leading hands, &c. As already mentioned unemployment relief work did not close at the termination of the planting season, but was continued for several months thereafter and on two projects gangs were employed till March of the present year; thus it was possible for many men to have had at least six months' continuous employment. At the peak period 1,820 labourers were on the pay-roll of the Service. These men were engaged on plantation cleaning and thinning, road-formation work, preparation of land for future planting, &c.

Year. 1921. 1922. 1923. 1924. I 1925. 1926. 1927. 1928. 1929. 1930. Permanent staff .. 97 99 95 96 95 106 111 112 122 125 Temporary officers .. 8 10 15 23 24 28 31 34 34 33 Labourers*.. .. 168 181 244 280 368 483 764 1,300 1,317 l,740f Total .. 273 290 354 399 487 ! 617 906 1,446 1,473 J,808 * As at September in each year. f Forecast.

a 1926. 1927. 1928. 1929. Month. Number Number Number Number Number Number Number Number of Unem-j of other Total, of Unem- of other Total, of Unem- of other Total, of Unem- of other Total, ployed. ! Labour. ployed. Labour. ployed. Labour. ployed. Labour. May .. .. 50 319 369 60 368 428 340 402 742 310 400 710 June .. .. 98 331 429 120 360 480 630 403 1,033 586 410 996 July .. .. 137 308 445 330 320 650 720 468 1,188 664 425 : 1,089 August .. 158 321 479 460 326 786 740 499 1,239 868 430 1,298 September .. 164 319 483 480 324 804 880 415 1,295 887 430 1,317 October .. 128 284 412 140 325 465 530 379 909 1,113 4-30 1,543

ERRATA. Hickory .. Hicoria spp. Pukatea .. Laurelia novae-zelandiae. Kaikawaka Libocedrus Bidwillii. Redwood .. Sequoia sempervirens. Mahogany.. Swietenia spp. Silver pine .. Dacrydium Golensoi. Miro .. Podoparpus ferrugineus. Tawa .. Beilschmiedia tawa. Pokaka .. Elaeocarpus Hookerianus. [Face p. 25.

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TABLE 12. After-planting Labour employed during the past Three Years.

5. Common and Botanical Names op Species mentioned herein. Common Name. Botanical Name. Common Name. Botanical Name. Ash .. . . Fraxinus spp. Miro .. .. Podocarpus ferruginous. Australian hard- North American woods .. .. Eucalyptus spp. spruce .. Picea spp. Beech (New Zealand) Nothofagus spp. Norway spruce .. Picea excelsa. Beech .. .. Fagus spp. Oak .. .. Quercus spp. Birch .. .. Betula spp. Pokako .. .. Elasocarpus Hookerianus. Camphor-tree .. Cinnamomum camphora. Ponderosa pine .. Pinus ponderosa. Cedar : Western red Thuya plicata. Prickly-cone pine .. Pinus muricata. Douglas fir .. Pseudotsuga Douglasii. Pukatea .. .. Laurolia novce-zelandice. Hemlo.ck-Western Tsuga heterophylla. Redwood .. Squoia sempovirons. Hickory .. .. Nicoria spp. Rimu .. . . Dacrydium cupressinum. Insignia pine .. Pinus radiata. Silver-beech . . Nothofagus Menziesii. Kaikawaka .. Libocodrus Bidwillii. Silver-pine .. Macrydium Colensoi. Kauri . . .. Agathis australis. Sugar pine .. Pinus Lambertiana. Kohekohe .. Dysoxylum spectabile. Tanekaha .. Phyllocladus trichomanoides. Macrocarpa .. Cupressus macrocarpa. Tawa .. .. Neilschmiedia tawa. Mahogany .. Sivistonia spp. Totara .. .. Podocarpus totara. Maple .. .. Acer spp. Western white-pine Pinus monticola. Matai .. .. Podocarpus spicatus. White-pine .. Podocarpus dacrydioides.

APPENDICES. APPENDIX I. SUMMARIZED REPORTS ON STATE AFFORESTATION. Auckland Region. Plantations and Nurseries. Riverhead. —The area planted at this station was 2,791 acres, being 123 acres less than that recorded for the year 1928-29. This brings the total establishment to 8,878 acres. Several small areas required to round out the boundaries of the plantation were acquired. It is expected that all the available area at Riverhead will be planted up early in the coming winter, and the plantation will then be placed on a maintenance basis. Maramarua. —The area planted at Maramarua slightly exceeded the previous year's total by 108 acres, the figures being 2,968 acres as against 2,860 in 1928-29. The total establishment of this unit is also in sight, and will j)robably be completed before the close of next year if the present rate of planting is maintained. Last year, as a measure of relief for unemployment, the preparatory work in connection with next season's planting operations at both stations was undertaken in advance, and for a period of five months from October, 1929, nearly two hundred men were given employment in this way. Puhipuhi and Waipoua. —Experimental planting on a small scale was continued at Puhipuhi and Waipoua, the area planted being 116 and 138 acres respectively. Tairua Project. —This new planting project is fully dealt with in an earlier portion of this report. Rotobtta Region. Tree-raising.—Owing to the wet season continuous hand weeding of nursery-beds was necessary as machine cultivation was practically impossible. Although somewhat delayed, germination of all seeds, with the exception of Douglas fir which was secured from abroad, was very good, and from a total sowing of 3,077 lb. of seed an estimated crop of 18,944,000 trees has been raised. The total nursery stock in round figures is now estimated to be 29,860,000, or nearly 2,000,000 less than last year. Tree-planting. —The area planted was again a record one, being 34,029 acres with 658 trees per acre, or an approximate total of 22,400,000 trees. The average strike over all species was 85-1 per cent., which is regarded as satisfactory. Establishment costs per acre were higher than during the previous year, due to the higher wages paid to labourers. Plantation Cleaning and Thinning. —For several months cleaning and thinning operations were carried on, principally by " relief " labour, as referred to in detail in an earlier portion of the report.

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1927. 1928. 1929. Number of Total Labour Number of Total Labour Number of Number of Total Labour Unemployed, employed. Unemployed, employed. Unemployed, other Labour, employed. November .. .. .. .. 405 .. 524 1,290 530 1,820 December .. .. .. .. 390 .. 491 1,180 514 1,694 January .. .. .. .. 400 .. 490 733 460 1,193 February .. .. .. .. 418 .. 488 705 460 1,165 March .. .. .. .. 437 .. 462 651 486 1,137

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Tree and Seed Sales.—Trees sold to farmers, local bodies, afforestation companies, and Government Departments numbered 1,525,721, including 50,000 sent to Australia. In addition, 274,907$ trees were transferred for planting in other regions. 1,074 lb. of seed were sold, a total considerably smaller than last year. Motor Equipment.—To keep pace with the increased planting programme the purchase of new motor equipment was necessary, and during the year three new trucks, a " Utility " van, and a caterpillar tractor were secured. These vehicles and those already in commission gave good service. Wellington Region. Karioi Plantation.—The new area planted at this station was 2,568 acres with 1,573,300 trees, approximately 610 trees per acre. Indications point to the fact that the strike has been excellent and very little, if any, blanking should be required. Blanking up the 1927 and 1928 planted areas was necessary owing to severe losses due to adverse weather conditions, and this accounted for 503,800 trees. With the exception of 150 acres which was not satisfactory, the strike here was also very good. The species used on the new area were P. ponderosa, P. laricio, Pseudotsuga Douglasii, P. Murrayana, C. Lawsoniana, Thuya plicata, P. muricata, and P. excelsa in that numerical order. Nurseries.—A total sowing of 1,613 lb. of seed was made with very satisfactory results. The young seedlings produced were estimated to number 4,171,000 ; 692,000 trees were lined out. Heavy rains were experienced in the months of December and January and extra labour was necessary to combat the excessive weed-growth. Flax-planting.—A wet area of 65 acres near Karioi Railway-station was planted, in flax. The plants showed a growth up to 2 ft. after three months and the mortality was practically nil. Nelson Region. Tree-raising.—Seed-sowing at Golden Downs Nursery was commenced in September, but owing to the fact that a severe cloudburst in November washed out 185 lb. of seed, it was not completed till January. The total quantity of seed sown was 1,206 lb., and an inspection at the end of the following month revealed an estimated crop of 2,863,000 young plants. The stock carried over from the previous year amounted to 784,800 seedlings, 440,900 transplants, and 9,900 three-year transplants. During the planting season 1,911,300 trees were transferred from the nursery to the plantation. At Dumgree Nursery 47 lb. of seed were sown, which yielded 304,200 seedlings. Trees sold from this station numbered 12,475, while 84,000 were transferred for planting at Golden Downs. One hundred poplarcuttings, comprising ten species, were received from Kew Gardens, London, during the year, and lined out in one of the nurseries at Golden Downs. These have all struck with the exception of P. tremula and P. Ganeseens, and will eventually be used for fire-protection planting and to supply cuttings for other regions. Tree-planting. —At Golden Downs Plantation a new area of 2,617 acres was established with 1,924,000 trees, while 231,100 trees were used to replace losses. The main species planted on the new area were P. radiata, Sequoia sempervirens, and P. laricio in that order, and the strike averaged 77 per cent. Dumgree Plantation is on a maintenance basis, and consequently no planting was done there. This plantation was thinned and cleaned by " relief " labour during the months of November, December, and January, and all dead and dying trees were removed. The thinnings produced 268 cords of firewood. Canterbury Region. Tree-raising.—Practically all the new stock in this region was raised at the main Balmoral Nursery where a crop of 2,700,000 trees resulted from the sowing of 581 lb. of seed. Although the dry spring weather delayed germination, nevertheless a fine crop has been obtained. A small plantation nursery was established at Eyrewell, where 700,000 P. radiata seedlings were raised for planting during 1930, the quantity of seed used being 100 lb. This experiment demonstrates that notwithstanding the light dry soil at this station, trees can be successfully raised there. Tree-growing.—The following new areas were planted : — Station. Area. Number of Trees. Eyrewell .. .. .. ~ 8,872 6,229,300 Balmoral.. .. .. .. 1,381 756,600 Hanmer .. .. .. .. 285 167,000 Although unusually dry weather was experienced soon after planting had ceased, the strike generally was satisfactory, the only exception being in the case of two-year-old P. radiata, which showed a mortality of about 40 per cent. This may have been partly due to the fact that most of the stock was grown in the nurseries at Tapanui and Naseby, and would not stand long transportation. On the other hand, however, two-year-old P. laricio grown at Tapanui recorded a strike of 90 per cent. The total stocks for future planting amount to 5,818,000. Southland Region. The boundaries of the Canterbury, Otago, and Southland Regions were altered during the year, and all plantations, nurseries, &c., in Otago Province are now under the control of the Conservator of Forests, Invercargill. The total new planted area for the year was 477 acres, with approximately 312,200 trees. Details are: Blue Mountains, 395 acres, 256,000 trees ; Conical Hills, 62 acres, 43,000 trees ; Naseby, .20 acres, 13,200 trees. The percentage of survival was very good—the greatest loss being in P. radiata, which showed an average strike of 91 per cent. The total output of trees for the year was 3,517,358, of which 308,900 were disposed of to the public and the balance used for State planting. At the close of the year the total estimated trees in the nurseries, including all age classes, was 6,940,000. The unseasonable weather conditions during the summer months was reflected in the growth of nursery-stock, and until the month of February little if any growth could be seen. For seedgermination the season was the poorest experienced locally for many years.

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APPENDIX II. Areas of State Forests.

I Area at End of Fiscal Year 1928-29. Changes in Fiscal Year 1929-30 Area at End of Fiscal Year 1929-30. Percentage of | — Area of Ro „. _ State Provisional State Provisional Grand * n + s , , Forest Provisional State Grand State Provisional p orest Net state Forest Provisional State Totals. Forest (National State Forest /J?™ State a , Net State (National State Forest *nnJSZll iorest. En(low . Forest. (National iotals - forest. j 0 rest. uiange. ±orest. Endow- Forest. (National sional State ment). Endowment). ment) ment). Endowment). orest. Acres. Acres. Acres. Acres. Acres. Acres. Acres. Acres. Acres. Acres. Acres. Acres. Acres. Acres. Acres. Auckland .. .. 167,662 23,717 264,192 71,938 527,509 6,970 339 525 7,834 160,692 23,717 263,853 71,413 519,675 6-04 Rotorua .. .. 293,783 59,528 158,032 208,562 719,905 1,317* .. .. 1,317* 295,100 59,528 158,032 208,562 721,222 14*34 Wellington.. .. 747,422 .. 162,491 73,901 983,814 145* 1 .. 144* 747,567 .. 162,490 73,901 983,958 6'57 Nelson .. .. 129,402 5,892 1,363,056 747,663 2,246,013 1,523* 95 10,619 9,191 130,925 5,892 1,362,961 737,044 2,236,822 31-81 Westland .. .. 2,309 .. 1,127,861 564,513 1,694,683 .. 11,760 6,617 18,377 2,309 .. 1,116,101 557,896 1,676,306 43-12 Canterbury .. 354,062 1,892 .. .. 355,954 23,565 .. .. 23,565 330,497 1,892 .. .. 332,389 3-50 Southland .. .. 278,845 .. 870,693 67,034 1,216,572 717 13,024* .. 12,307* 278,128 .. 883,717 67,034 1,228,879 7-23 Totals .. .. 1,973,485 91,029 3,946,325 1,733,611 7,744,450f 28,267 829* 17,761 45,199 1,945,218 91,029 3,947,154 1,715,850 7,699,251 11-60 * Increase. t Grand total revised during the year.

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APPENDIX III. Summary of Operations in Nurseries.

During Year ended 31st March, 1930. From 1896 to 1930. Total Expenditure. , Trees in Nurseries. Trees in Nurseries. Year of Output of Trees. Output of Tree?. Name of Nursery. Establishment. Estimated j Number ° f Estimated Tree-growing. Maintenance. Buildings, &c. Total. Number of Number of Number of "J™ Number of Trees raised Trees sent to Trees sent to Qitf m Trees raised Number to ! In umber to during Year. Plantations Outside Places loon' during Period. Plantations. | Outside Tlaces. during Year, j during Year. iJou. £ s. d. £ s. d. £ s. d. £ s. d. ' j Waipoua .. .. 1925 .. .. .. .. .. i 103,000 .. 7,600 203,800 196,200 Puhipuhi .. .. 1925 .. .. .. .. .. .. .. .. 129,800 129,800 Riverhead .. .. 1926 1,108 0 0 549 0 0 6 0 0 1,663 0 0 1,650,000 1,759,300 420,000 2,600,000 10,230,000 7,210,000 420,000 Maramarua .. .. 1928 1,401 0 0 .. .. 1,401 0 0 2,362,200 1,872,500 .. 2,911.200 4,783,700 1,872,500 Tairua .. .. 1929 1,072 0 0 .. .. 1,072 0 0 4,000,000 , .. .. 4,000,000 4,000,000 Rotorua .. .. 1898 5,106 5 6 3,620 4 10 356 13 0 9,083 3 4 4,485,800 I 11,240,000 1,800,600 11,350,000 153,970,500 117,568,700 25,051.800 Kaingaroa .. .. 1927 2,955 14 6 601 8 9 0 10 6 3,557 13 9 14,458,300 ! 11,160,300 .. 18,509,500 45,533,900 27,024,400 Karioi .. .. 1927 3,648 9 0 270 14 0 155 18 9 4,075 1 9 4,171,800' 1,970,800 14.400 10,131,900 14,403,100 4,256,800 14,400 Tangimoana.. .. 1921 143 3 0 224 9 4 .. 367 12 4 2,700 .101,100 45,400 4,600 1,044,300 966,700 73,000 Golden Downs .. 1927 4,180 17 5 240 17 4 528 19 11 4,940 14 8 2,863,500 1,911,300 200 4,099,200 7,142,700 3,043,200 300 Dumgree .. .. 1924 .. .. .. .. 304,200 84,000 12,500 305,000 903,500 480,500 118.000 Westland .. .. 1922 800 11 6 680 8 8 0 6 9 1,481 6 11 946,000 297,500 147,500 949.100 2.885,600 1,286,900 649,600 Hanmer-Balmoral .. 1902 3,864 3 8 2,364 8 4 119 12 9 6,348 4 9 1,805,900 7,340,400 166,400 5,118,200 42,220,400 34,403,900 2,698,300 Tapanui .. .. 1897 2,277 12 8 2,147 2 3 30 4 4 4,454 19 3 1,054,400 3,207,700: 308.700 6,946.200 39,119,200 27,875,900 4,297,100 Naseby .. .. 1921 184 10 0 334 7 4 10 3 0 529 0 4 24,000 319,500 56,900 341,500 2,405,300 1,616,800 447,000 Totals .. .. 26,742 7 3 11,033 0 10 1,208 9 0 38,973 17 1 38,128,800 41,367,400 2,872,600 67,274,000 328,975,800 227,932,300 33,769,500

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APPENDIX III-continued. Summary of Operations in Plantations to 31st March, 1930.

29

J 1929-30. Plantation. eBb &, ! of Trees NewArca ' I j = planted on New used to replace Direct Nurseries. Losses. * Area. Losses. planted. Formation. I I I | ! ! ! Acres. Acres. £ s. d. Acres. £ s. d. Riverhead .. .. 1926 1,870,769 139,715 2,791 .. 15,779 0 0 6,017,523 420,354 8,723 42,024 8 3 Maramarua .. .. 1928 1,922,500 .. 2,968 .. 16,339 0 0 3.820,750 .. 5,840 33,874 3 11 Puhipuki .. .. 1904 70,000 .. 116 .. 2,388 0 0 1,248,700 632,250 783 17,679 16 7 Whakarewarewa .. .. 1898 .. .. .. .. 21,421 11 4 20,626,050 3,999,464 7,591 160,686 16 2 Waiotapu .. .. 1901 303,950 .. 447 .. 15,479 16 7 23,833,102 4,883,134 7,920 130,219 5 0 Kaingaroa .. .. 1913 22,096,900 .. 33,582 30 63,325 10 10 99,476,917 3,568,285 139,445 336,074 17 10 Karioi .. .. .. 1927 1,573,300 503,800 2,588 .. 12,870 7 1 6,492,305 1,046,800 9,154 37,482 17 10 Golden Downs .. .. 1927 1,924,165 231,160 2,617 .. 11,539 13 2 4,167,445 231,160 5,556 24,505 9 1 Hanmer .. .. .. 1901 167,000 360,858 285 .. 17,682 19 7 14,193,961 3,025,382 7,680 111,678 10 3 Balmoral .: .. 1916 757,600 1,917,375 1,381 .. 17,100 5 8 16,523,313 2,905,085 18,583 110,488 7 9 Eyre well .. .. 1928 6,229,380 .. 8,872 .. 37,408 16 0 8,372,770 .. 12,008 53,076 17 4 Rainclifi.. .. .. 1889 .. .. .. .. .. .. .. 159 1,367 18 6 Albury .. .. .. .. .. .. .. .. .. .. .. 61 Blue Mountains .. .. 1925 256,000 646,100 395 .. 6,140 11 3 6,840,510 777,600 8,713 53,110 12 4 Greenv ale .. .. 1917 .. 14,000 .. .. 4,080 3 6 4,576,770 564,880 3,715 88,928 6 2 Conical Hills .. .. 1903 . 43,000 .. 62 .. 6,326 19 4 10,805,700 1,476,405 3,551 87,025 2 11 Naseby .. .. . . 1900 13,200 300 20 .. 1,858 12 11 6,053,493 1,041,575 2,580 55,702 18 7 Dusky Hill .. .. 1893 .. .. .. .. .. 3,061,997 881,160 751 * Pukerau .. .. .. 1915 .. .. .. .. .. 906,685 86,688 565 Experimental Group. Waipoua .. .. 1924 98,290 3,700 138 .. 492 0 0 211,979 13,005 300 1,117 0 7 Tangimoana .. .. 1921 95,495 5,630 158 .. 391 16 5 487,140 133,790 671 5,180 9 1 Westland .. .. 1922 136,000 139,800 200 .. 2,899 1110 1,265,194 451,260 1,688 18,485 16 10 Dumgree .. .. 1903 .. .. .. .. 2,389 5 9 1,802,265 1,165,450 342 18,302 5 8 Tasman West .. .. 1925 .. .. .. .. .. 1,750 127 5 18 10 10 Gimmerburn .. .. 1903 .. .. .. .. .. 936,235 783,339 93 6,909 0 6 Galloway.. .. .. 1915 .. .. .. .. .. 6,930 3,050 2 84 19 10 Waitehuna .. .. 1906 .. .. .. .. .. 42,025 11,500 11 330 7 9 Longwood .. .. 1927 .. 33,975 .. .. 194 1 10 200,380 33,975 35 1,461 19 7 Totals .. .. .. 37,557,549 3,996,413 56,600 30 256,108 3 1 241,971,887 28,135,718 f246,525 1,395,816 19 2 i : * Expenditure included in Greenvale. t Does not include 7,078 acres direct formation.

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APPENDIX IV. STATE FORESTS ACCOUNT. Comparative Analaysis of Receipts and Payments from 1st April, 1922, to 31st March, 1930.

1922-23. 1923-24. 1924-25. 1925-26. 1926-27. j 1927-28. 1928-29. 1929-30. Capital. Operation. Capital. Operation. Capital. Operation. Capital. Operation. Capital. Operation. Capital. Operation. Capital. Operation., Capital. Operation. . _ . . . j . , Receipts — £ I £ £ | £ j £ £ I £ | £ Forest income .. .. .. .. 63,372 93,480 161,469 152,550 128,566 115,398 90,114 105,637 Loans raised .. .. .. .. 214,221 209 100,000 .. .. 160,000 200,000 352,000 Total receipts .. .. 277,593 93,689 261,469 152,550 128,566 275,398 290,114 457,637 Payments — £ £ £ £ £ £ £ £ £:£ £ £ £ £ £ £ Salaries .. .. .. .. .. 8,626 21,475 9,272 21,414 9,035 22,394 11,103 25,912 17,075 22,783 16,476 27,194 : 23,184 21,364 23,450 24,367 Development and management of indigenous 1,563 12,227 2,177 14,094 2,792 14,670 3,082 15,500 4,204 17,839 3,474 15,840 4,815 17,218 j 7,076 State forests Forest-fire protection .. .. .. 95 1,712 81 1,896 125 1,405 38 1,553 73 1,524 182 3,166 : 287 1 967 39 i 1 256 Educational .. .. .. .. 191 383 119 463 100 819 213 1,164 107 1,094 180 472 1 140 758 113 '412 Forest research .. .. .. .. 1,135 1,089 2,142 1,496 1,750 2,847 3,615 2,158 2,402 2,472 2,059 5,181 1,732 5,218 3,277 3,110 Afforestation and forest-extension .. .. 30,814 .. 37,320 .. 50,182 .. 63,910 .. 80,730 .. 110,842 .. 155,447 .. . Lands purchased for afforestation .. .. 3,585 .. .. .. 476 .. 17,764 .. 11,181 .. 18,352 .. 23,211 .. 12'958 Forested lands purchased .. .. .. 1,064 .. 4,474 .. 105,993 .. 16,161 .. 18,639 .. 830 .. .. .. Local-body allocations and grants, &c. .. .. 929 .. 2,570 .. 790 .. 6,215 .. 9,805 .. 7,241 : .. 13,227 i .. 11,522 Advice, assistance, and preparation of planting- .. 757 .. 686 .. 1,196 .. 1,358 .. 1,611 .. 2,918 i .. 4,944 : .. 10 176 plans for local bodies and settlers Net interest and loan charges .. .. 4,818 17,155 913 17,337 893 16,516 .. 20,954 .. 24,525 .. 33,816 .. 40,984 .. 59,884 National Endowment Account, transfers to .. .. .. .. .. .. 12,612 .. 9,741 .. 15,659 .. 13,885 .. 7,469 .. 6 971 Total payments .. .. 51,891 55,727 56,498 59,956 171,346 73,249 115,886 j 84,555 134,411 ! 97,312 jl52,395 109,713 *208,816 Ill3, 149 288,276 139,142 Grand total payments .. 107,618 116,454 244,595 200,441 231,723 262,108 32?, j 427^,418

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APPENDIX V. STATE FORESTS ACCOUNT. Receipts and Payments Account for the Year ended 31st March, 1930. Receipts. [ Payments. £ s. d. £ s. d. £ s. d. I By Permanent charges— £ s. d. £ s. d. £ s d To Cash in hand, 1st April, 1929— ■ Recoupment of management charges of In Post Office .. .. .. .. .. 1,290 13 8 consolidated stock .. .. .. .. 95 10 7 In Public Account .. .. .. .. 16,314 4 5 j Recoupment of stamp duty on transfers on Imprests outstanding in the Dominion .. .. 933 0 1 1 New Zealand consolidated stock, 1935-45 .. 92 10 1 18,537 19 0 Recoupment of charges and expenses of raising loans .. .. .. •• 716 6 10 Interest on advances from Consolidated Fund .. 8,616 0 3 Interest on securities held by Investment Interest on loans recouped to Consolidated Account .. .. .. .. .. .. 3,916 9 4 Fund .. .. .. .. ■■ 54,233 15 7 Inscribed stock and debentures issued .. .. .. 352,000 0 0 Interest on temporary advances .. .. .. 46 5 1) Transfer to National Endowment Account.. .. •• 6,970 15 4 Receipts— Indigenous forests— Capital charges— Timber-sales .. .. .. .. 60,711 4 4 Sub. II.— General development of State Timber royalties .. .. .. 6,592 3 7 forests— Timber trespass .. .. .. .. 197 14 1 Buildings .. .. .. •• 1,486 4 11 Leases—Grazing.. .. .. .. 2,115 10 10 Motor-vehicles, field, and office equipment 2,547 7 3 Leases—Sawmill-sites, &c. .. .. 441 13 0 Forest Atlas .. .. .. ■ • 358 14 0 Leases—Industrial .. .. .. 2,408 4 8 Roads, tracks, and telephone-lines .. 2,124 15 0 License and transfer fees .. .. .. 240 15 6 Demarcation .. .. 411 4 4 Miscellaneous licenses .. .. .. 32 15 7 Re-establishment of Longwood Forest .. 79 8 4 Permits—Miscellaneous .. . . . . 5 5 0 Re-establishment of Erua Forest .. 96 13 3 Kauri-gum .. .. .. . . 213 18 6 ' > 104 7 1 Fees for inspections and reports .. .. 775 19 0 i Sub. III.— Forest-fire preventionInterest on overdue promissory notes .. 229 13 5 Equipment and improvements .. .. .. 39 3 0 Rental of houses .. .. .. 117 9 6 Sub. IV.— Educational— Opossum revenue .. .. .. 4,953 3 2 Reference library .. .. 108 3 8 Miscellaneous .. .. .. .. 3,113 1 4 Photographic equipment .. .. 29 17 10 82,148 11 6 ' 138 1 6 Sub. V.— Forest research— Forest Experimental Station, Westland .. 2,735 2 5 Receipts — National - endowment indigenous Timber-testing equipment, &c. .. 262 0 10 forests (allocation in terms of section 39, Forest Experimental Station, Auckland .. 280 0 8 Forests Act, 1921-22) .. .. .. .. 12,155 14 2 i 3,277 3 11 Carried forward .. .. .. .. 94,304 5 8 374,454 8 4 , Carried forward .. .. 10,558 15 6 70,771 4 7

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APPENDIX Y— continued. STATE FORESTS ACCOUNT— continued. Receipts and Payments Account for the Year ended 31st March, 1930— continued. Receipts— continued. i Payments— continued. £ s. d. £ s. d. £ s. d. £ s . d. £ s. d. £ s. d. Brought forward .. .. .. .. 94,304 5 8 374,454 8 4 Brought forward .. .. .. .. 10,5-58 15 6 70,771 4 7 To Receipts— Nurseries and plantations— By Capital charges— continued. Trees .. .. .. .. 6,851 9 8 Sub. VI.— General afforestation— Seeds .. .. .. .. 1,230 2 8 Nurseries and plantation, planting, &c. .. 241,382 18 7 Firewood and poles .. .. .. 1,116 14 1 Salaries— Afforestation (includes pay of Grazing.. .. .. .. .. 775 3 0 non-permanents) .. .. .. 23,450 5 6 Rental of houses .. .. .. .. 783 19 0 Land for extension of nurseries and plantaMiscellaneous .. .. .. .. 572 2 7 tions .. .. .. .. 12,958 9 0 11,329 11 0 | Sand-dune reclamation .. .. 1,688 16 10 105,633 16 8 j 279,480 9 11 Recoveries of expenditure and credits in aid— Sub. I.—Salaries .. .. .. .. •• 91 17 11 Operation and Maintenance charges— Sub. II.—General development of State forests— Salaries .. .. .. .. 23,712 19 1 .Capital charges— Contribution to Public Service SuperannuaSales of motor-vehicles, equipment, &c. .. 28 13 5 tion Fund .. .. .. .. 745 8 2 Maintenance charges— 24,458 7 3 Policing, patrol, &c. .. .. .. 167 1 1 Timber-cruising, &c. .. .. .. 136 4 10 Travelling-expenses .. .. .. 77 8 0 Sub. II.— General development of State forests— Sundries .. .. .. .. 11 7 3 Postages, cables, &c., printing and stationery 2,402 9 7 420 14 7 Payments to other Departments for services Sub. III.—Maintenance charges— rendered .. .. .. .. 327 5 0 Sundries .. .. •. .. .. 98 12 3 Forest and grazing reconnaissance, timber Sub IV.—Educational— cruising and appraisal, policing patrol, Capital charges: Equipment .... 25 0 0 I and maintenance of permanent equipment 7,225 9 4 Maintenance charges— Destruction of wild pigs .. .. 3,320 1 3 Department bulletins .. .. .. 183 4 4 Legal expenses, contingencies, &c. .. 517 8 8 Sundries .. .. .. •• 7 12 11 Office rent, heating, and lighting .. .. 3,509 3 8 215 17 3 Transportation expenses and upkeep of Sub. V.—Forest research— motor-vehicles .. .. .. 1,930 12 0 Maintenance charges— Travelling-expenses and transfer of officers.. 3,549 13 2 Timber- products testing, and travelling- Wild-life control and destruction of deer ., 1,054 0 11 expenses .. .. .. •• •• 784 21,836 3 7 Sub. VI.— General afforestation— Capital charges— Sub. III.— Forest-fire prevention— Nurseries and plantations .. .. 1, 708 16 7 Communication and locomotion expenses, &e. 180 9 11 Maintenance charges— Wages .. .. .. .. 1,174 12 6 Tree-seed operations, &c. .. .. 507 19 4 1,355 2 5 2,216 15 11 3,051 6 3 Carried forward .. .. .. .. .. 483,139 11 3 Carried forward .. .. 337,688 18 8 70,771 4 7

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APPENDIX V— continued. STATE FORESTS ACCOUNT— continued. Receipts and Payments Account for the Year ended 31st March, 1930— continued. Receipts—continued. Payments— continued. £ a. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Brought forward .. .. .. .. .. 483, ]39 11 3 Brought forward .. .. .. .. 337,688 18 8 70,771 4 7 To Equality of Exchange (Forest Amendment Act, By Operational charges— continued. 1925, section 4) .. .. .. .. .. 3 0 0 Sub. IV.— Educational— Forest exhibits .. .. .. 53 5 3 Photographic records, &c. .. .. 165 6 10 Departmental bulletins and professional publications .. .. .. 383 7 4 Travelling-expenses .. .. .. 15 0 603 4 5 Sub. V.— Forest Research— Forest ecology .. .. .. 352 14 4 Silvicultural management studies .. 374 14 6 Utilization and timber- testing and travel-ling-expenses ... .. .. 2,119 9 0 Forest entomology .. .. .. 270 6 4 3,117 4 2 Sub. VI.— General afforestation— Preparation of planting-plans and forestextension .. .. .. .. 316 9 6 Experimental machinery .. .. 14 0 9 Tree- seed collection .. .. .. 7,407 9 11 Travelling allowances and expenses .. 1,388 19 10 Work for other Departments .. .. 110 14 7 9,237 14 7 Sub. VII.— Acquisition of indigenous forests— Yearly rent, Otanewainuku S.D. .. .. 74 0 0 Sub. VIII.— Grants and subsidies— i Payments to local authorities, &c. 11,521 18 2 ! Empire Forestry Conference .. .. 503 10 8 , Miscellaneous .. • • • • 868 4 0 12,893 12 10 363,614 14 8 Cash balances at 31st March, 1930— In Post Office .. .. . • .. 34 19 11 In Public Account .. =• .. .. 48,719 12 4 Imprests outstanding in the Dominion .. .. 10 0 Imprests outstanding in London .. .. .. 0 19 9 48,756 12 0 £483,142 11 3 £483,142 11 3 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, 1930. E. Phillips Turner, Director of Forestry. W. Riach, A.R.A.N.Z., 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.— 6. F. C. Campbell, Controller and Auditor-General.

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APPENDIX VI. Loan Account as at 31st March, 1930. To Loan authority— £ s. d. By Debentures issued— £ s. d. Section 40, Forests Act, 1921-22* 500,000 0 0 Finance Act, 1919 (section 50), at Section4o, Forests Act, 1921-22, 4J per cent. .. .. 50,000 0 0 and section 16, Finance Act, Finance Act, 1918 (No. 2), (sec--1924 .. .. .. 100,000 0 0 tion 32), at 4 per cent... .. 171,000 0 0 Section 8, New Zealand Loans Finance Act, 1918 (No. 2), (secAct, 1908(charges and expenses tion 32), at 4J per cent. ! 29,000 0 0 of raising New Zealand Consoli- Finance Act, 1920 (section 16), at dated Stock, 1936-45) .. 4,396 13 5 4 per cent. .. .. .. 27,000 0 0 Section 40, Forests Act, 1921-22, Finance Act, 1920 (section 16), at section 6, Finance Act, 1926, 4J per cent. .. .. 8,000 0 0 and section 4, Finance Act, Forests Act, 1921—22, at 4J per 1929 .. .. .. 1,000,000 0 0 cent. .. .. .. 10,000 0 0 Forests Act, 1921-22, and Finance Act, 1924, at 5 per cent. .. 100,000 0 0 Forests Act, 1921-22, and Finance Act, 1926 (section 6) .. 205,050 0 0 Stock issued — 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 New Zealand Inscribed Stock .. 461,950 0 0 Balance of authority .. .. 336,225 7 2 £1,604,396 13 5 £1,604,396 13 5 * Section 40, Forests Act, 1921-22, confirmed the authorities previously issued under the Finance Acts, 1916,1918, and 1920, and repealed all the authorities outstanding thereunder. Note. —Under section 21, Finance Act, 1926, certain appropriations out of the Consolidated Fund for afforestation purposes, totalling £59,250, become repayable to the Consolidated Fund, and bear interest at 4J per cent, from Ist April, 1926, until repayment. This does not include £45,000 advanced from Consolidated Fund in terms of section 7 (1) of the Finance Act, 1927.

APPENDIX VII. State Forests Account, 1917-30.

Approximate Cost of Paper.—Preparation, not given ; printing (2,000 copies, including graphs, illustrations, and maps), £125.

Authority: W. A. G. Skinner, Government Printer, Wellington.—l93o.

Price Is. 6d.]

Receipts. Payments. Fiscal Year. I Income. braised.! Investment. Total - Ca P ital " °P eratioa - 'loan!. 0 " Total - ££££££££ Balance, 31st 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 6,727 268,196 171,920t 56,245 23,157 251,322 1925-26 .. .. 152,550 .. 7,178 159,728 115,886 63,729 28,004 207,619 1926-27 .. .. 128,566 .. 4,552 133,118 134,411 72,787 29,077 236,275 1927-28 .. .. 115,398 160,000 1,224 276,622 152,395 75,896 35,040 263,331 1928-29 .. .. 102,468J 200,000 3,205 305,673 208,816 72,165 44,189 325,170 1929-30 .. .. 105,637 352,000 3,916 461,553 288,276 79,258 63,800 431,334 Balance, 3 1st March, 1930 .. 48,757 2,354,074 2,354,074 * Includes £10,000 from Consolidated Fund. f Includes £100,000 purchase of Selwyn Settlement forest. J Includes £12,034 reimbursement purchase-price Hukinga, &c. Note.—Credits in aid and recoveries have been deducted from expenditure.

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