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Statement of Expenditure. „ , Amount at 31st March, 1909 ... ... ... ... 7,444 7 3 Tree-growing ... ... ... ... ... ... 437 211 General maintenance and repairs ... ... ... ... 65 3 7 Nursery-formation ... ... ... ... ... 9 11 6 Horse-feed purchased and grown ... ... ... ... 121 7 2 Manures ... ... ... ... ... ... ... 950 Tree-seeds ... ... ... ... ... ... 9 12 0 Tools, implements, &c. ... ... ... ... ... 0 3 8 Water-supply ... ... ... ... ... ... 0 15 6 Miscellaneous works ... ... ... ... ... 0 7 5 Proportion of Nurseryman's salary ... ... ... ... 150 0 0 Supervision ... ... ... ... ... ... 25 0 0 Proportion of clerk and accountant's salary ... ... ... 44 0 0 £8,316 16 10 Value of Stock, Improvements, <£c. £ s. d. £ s. d. £ s. d. Amount at 31st March, 1909 ... 5,292 4 11 Less value of trees ... ... 1,601 7 6 horse-feed ... 150 0 0 „ tools written off during year ... 24 1 9 1,775 9 3 3,516 15 8 Trees, as per Schedule 2 ... ... ... ... 175 0 0 Tools and implements ... ... ... ... ... 038 Water-supply ... ... ... ... ... ... 0 15 6 Nursery-formation... ... ... ... ... ... 9 11 6 Horse-feed in stock ... ... ... ... ... 140 0 0 Value of young horses bred or increased value during year ... 5 0 0 £3,847 6 4 Summary. £ s d Value of present stock and general improvements ... ... 3,847 6 4 Value of trees sent out since initiation of nursery ... ... 4,696 1 4 8,543 7 8 Expenditure to date ... ... ... ... ... 8,316 16 10 Credit balance ... ... ... ... £226 10 10 A. Gordon, Nurseryman in Charge. Puhipuhi Plantation. (Area, 2,100 acres; altitude, 1,000 ft.) The rainfall exceeds that of the previous year by 18 in., rain being recorded on 196 days, with a total fall of 89 - 02 in. During twenty-one days in July 13"67 in. fell. Several times during this month the Wairiki Stream was in flood, making it impossible to take the horse over the ford, the trees having to be carried from the timber dam to the planters, a distance of over a quarter of a mile, adding considerably to the cost of planting. There were 125,325 eucalypti planted out permanently at 6ft. apart, occupying 104 acres, costing 13s. 3d. per thousand, as against lis. sd. for the previous year. The extra cost of planting can be accounted for by the fact that nearly all the trees that were received from the nursery this year were lined-in closely in nursery rows, the cost being added to the item "Planting.'"' Ihe lining-in was done to avoid carting when the roads were bad during the months of July and August. The remaining 200,000 trees were used to replace blanks in eucalypti and totara failures over an area of 450 acres. 251,950 spade and grubber pits were made," at an average cost of 19s. sd. per thousand. All standing dead timber and manuka within the fenced area, about 300 acres, was felled by day-labour, at a cost of 2s. 2d. per acre. 350 acres of fern, &c, was burned off, costing 2s. 11 Jd. per acre. The bulk of the land cleared is fairly good, with about 40 acres heavy gum land and 40 acres gravelly. Fein was cut and burned 1 chain wide on 960 chains of boundary (ire-breaks, and of this, 235 chains was ploughed and harrowed. The main road from Whakapara to the plantation is in a very neglected state, and £5 16s. 6d. was expended in removing land-slips and clearing water-tables in order to make the road passable. Portions of the boundary-fence, close to the Wheneroa Creek, were constantly being carried away