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the spread of gorse and broom to properties lower down the valleys will likely in the near future prove disastrous to holders of properties in that direction if the matter is not attended to. Drains were made at various places through the property to assist in draining the low-lying portions. It is proposed to prepare 30,000 pits during the coming winter, in readiness for planting the enclosed area with suitable hardy trees in the early spring-time. The expenditure incurred since the initiation amounted to £39 9s. 7d.—total cost of fencing material not included—providing employment for two men for two months. Details of expenditure and values are appended. D. Bisk, Foreman. B. G. Bobinson, Nurseryman in Charge.

Hanmer Springs Nursbey. (Area, 20 acres ; altitude, 1,225 ft. (approximately).) During the past year rain fell on 164 days, with a total of 62-18 in. September and February were the wettest months, 10-45 and 10-37 in. respectively being recorded. The maximum shade temperature (91 deg. Fahr.) occurred on the 13th December, and the minimum, 13 deg., on the sth June. No records of the rainfall were taken previous to this year, so that a comparison with other years cannot be made ; but old residents regard the rainfall as the heaviest experienced for many years. Seed-sowing was commenced on the 31st October—fully a fortnight later than the year previous—and was finished on the 6th November. All species germinated well, and are a good crop, with the exception of Oregon pine, this being practically a failure. As only 3 lb. was sown, the loss was not great. Lining out was started early in August, and finished on the 20th September, 416,840 trees being dealt with, at a cost of 3s. 7Jd. per thousand, the area occupied by the same being about 4-J--acres. Trees to the number of 118,000, comprising larch, Oregon, and Aleppo pines, were lined out, at a cost of 2s. 5Jd. per 1,000. Showery weather was experienced while the work of transplanting was in progress, giving the trees a splendid start, and all have done well, except Pinus halepensis, of which fully 30 per cent, have died. Apparently this tree is not suitable for planting at Hanmer. The number of trees raised in the nursery during the year was 750,000, valued at £759 ss. (See Schedule E.) The estimated number of trees in the nursery on the 31st March, 1906, was 1,395,840 (see Schedules Eto E 2 ), valued at £2,268 ss. 2d. The total number of trees grown in the nursery since its initiation is 1,378,000, valued at £1,402. Trees —number, 35,210, valued at £61 4s. 7d.—were transferred from the nursery to the plantation. The estimated number available for the coming season is 400,000. Nine new seed-frames were made by prison labour in a very satisfactory manner. About 2 acres of scrub was cleared off a portion of the nursery area, and the ground ploughed and cultivated in readiness for lining-out purposes next season. The average number of labourers (free) employed during the year was four (including one boy). Details of expenditures and values, and schedules of trees are appended. The following is a record of rainfall and temperature for the year : —

W. Cromb, Nurseryman in Charge.

Month. Rainfall. I Number j| of Days |! Rain fell. I I Maximum! Tempera- J ture. Date. Minimum Temperature. Date. 1905. Inches. 2-85 3-07 7-705 Degrees. 83 69 64 Degrees, 27 25 13 April ... May ... June ... 10 10 14 1st 10th 14th, 23rd, 24th 24th 18th 17th, 18th 24th 5th, 29th 13th 19th 19th, 26th 5th July ... August September October November December 1906. 4-01 3-45 10-45 5-28 4-67 3-135 11 13 21 14 14 13 66 68 66 74 78 91 17 18 29 26 32 34 3rd, 4th 11th 2nd 15th 12th, 16th 2nd, 24th January February March 4-13 10-37 306 17 16 11 86 81 82 14th 2nd 2nd 32 33 30 7th, 24th 19th, 20th 14th, 27th Totals... 62-18 164