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After a liberal trial of the much-favoured shelter-tree Pinus muricata it has been decided to revert to the formerly used Pinus radiata for creating shelter-barriers, as although the latter pine is more brittle, susceptible to frosts, and apt to break off near the top during the prevalence of high winds, the former species, owing to its faulty lateral-rooting system, is persistently being blown over, and consequently cannot be expected to form a durable wind-break. From 6 lb. of. Pinus radiata seeds 27,000 plants were raised, and have developed strongly. We were fortunate in obtaining what appears to be true Pinus ponderosa seed, and from 39 lb. sown, some 210,000 plants were realized. Smaller sowings of other pines were equally satisfactory. Perhaps the Picea sitchensis crop of 130,000 seedlings from 3 lb. of seed is the most productive issue for some years, and Pseudo-tsuga taxifolia, although scarcely up to the average in germination, have grown with unusual vigor. Small quantites of Acacia dealbala and A. decurrens, Cwpressus Lawsoniana, C. macrocarpa, and various species of the eucalypti family were experimented with favourably, as a perusal of the associated tree-schedule will disclose. Notwithstanding the dryness, water was only applied artificially to seed-beds on two occasions, but care was taken to retain the scrim covering on frames until March, so that seedlings would benefit by the increased humidity thus fostered. Tree-growth. —Tree-growth throughout is much above the average, particularly in the larch-breaks, where scarcely a transplantation failure is noticeable. A minute inspection, however, will show that the grass-grubs have destroyed a small percentage. Almost equally well-rooted pines are available for permanent planting, although only medium success attended the lining-out of some thousands of small one-year-old P. Laricio. Some 1,600,000 trees have developed sufficiently for permanent planting during the coming winter. This anticipated output would be materially increased by including small-sized two-year-old trees. but the fallacy of transferring undergrown stock to exposed positions is usually exemplified by subsequent heavy plantation losses. " Wrenching " was deferred until late in March, when heavy rain, thoroughly saturating the ground, permitted this operation to be conducted with every degree of safety. Lining-out was commenced on the 6th August, and during the following eight weeks some 2,100,000 one- and two-year-old seedlings were removed from beds to nursery lines, at Is. 7d. per thousand. An approximate 89,000 smaller plants were also lined in closely at Is. Id. per thousand, but wherever possible this method should be discountenanced, as " drawn-up " weakly specimens are generally produced in this way, and rarely succeed even when placed in the most favoured situations on plantations. Buildings, Improvements. —No accommodation being available locally, it was decided to erect a small cottage within the grounds for the horseman, whose duties necessitate his almostj constant presence at the nursery. The building is now almost completed, and will be tenanted before the transporting season is far advanced. To permit of all implements being systematically arranged under cover when not in use, an additional open shed was constructed. This building will also be brought into requisition for packing and sizing trees during unsuitable weather for outdoor labour. Two flood-gates and protecting concrete walls in Whisky Creek, over which our boundary-fence lines cross, were completed, and, judging by the present stability of the structures, they should be entirely effective in reducing to a minimum the future scouring of the creek-bed. All shelter and ornamental plantations attached to this station have made remarkable growth, and as trees were well established and each succeeding year the weeds were becoming more troublesome, the whole of the area planted was sown down in grass, with good effect. Well-grown specimens of trees in stock, together with a few more rare varieties received in exchange, were utilized in creating an ornamental fringe in the vicinity of the lower sizing-shed, whilst an undrained piece of ground, also conspicuous, was planted with English ash for working under the coppice system. The somewhat neglected appearance of another small area has also been relieved by flax-planting, and, being adjacent to the bundling-shed, ties will thus be conveniently procured from this source. Horse-feed. —About 17 tons of prime oaten sheaves were harvested from 12 acres, and the double cutting of 4 acres of rye and clover yielded close on 7 tons of this winter feed. The carrot-crop proved to be exceedingly slow in beginning, but having since made a good recovery, probably 6 tons of this produce will be duly lifted and pitted. Water-supply. —During the springtime the absence of water in horse-paddocks and Whisky Creek demanded attention, and immediate steps were taken to convey water by means of f in. pipes from the small upper reservoir to the extension nursery, a distance of some 60 chains. Standpipes were erected at horse-paddocks and sizing-shed, and also at'convenient positions adjacent to the seed-beds. Sufficient pressure was obtained to allow of one hose being used, and the result has fully justified the expenditure incurred. The annual expenditure amounts to £1,749 12s. 7d., providing employment for 11-16 men, and expenditure to date is £20,821 2s. Bd. The year's output to plantations, public institutions, &c, is 1,565,300 trees, which are valued at £4,566 ss. Id. (as per schedule), and the transportation of a similar number is anticipated dining the coming season. Eevised statements of expenditure, Property Account, Trees Account, and meteorological records are appended.

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