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is satisfactory to note that a total of 5,697,582 of the mentioned pines are now accounted for on the plantations, and the future extension of these blocks will receive the greatest attention of the Department. The commercial value of Pinus radiata timber for rough indoor purposes will not be lost sight of, although so far we have given preference to the yellow and Corsican species. In the fertile gullies Frazinus excelsior and Psevdo-tsuga taxi-folia, are flourishing, and no more profitable trees could be introduced into such positions. Much consideration was given to the growing of the various piceas at the beginning of forestry operations, probably on account of the simplicity in propagating and cheapness of the seed and a minimum loss in establishing the spruces on the plantation areas. For some years past, however, the Department has almost ignored the supplementing of the 1,267,825 Picea excelsa, Picea sitchensis, and Picea alba trees now in various stages, principally in the South Otago forests, and present indications pointing to only partial success, our early decision to discontinue planting any of the mentioned species may be regarded with favour. The spruces, however, behave most inconsistently, for while at Dusky Hill Plantation their height on the sidlings has onh 7 been increased by from 18 in. to 4 ft. in twelve years, a much greater vigour has been displayed by those occupying almost similar situations at Conical Hills in about half that time. Plantation-wokk, and Acquirement of Land. Taking into consideration the adverse conditions under which we have had to labour, the output of 2,420,710 trees (as per Schedule V) may be regarded with approval. Of this number, 172,010 were utilized in replanting failures in previous plantings. The area under trees being augmented by 828 acres (against which an expenditure of £6,735 15s. 7d., including the value of prison labour performed, must be written) has now increased to 6,937 acres, containing 17,913,475 trees, as summarized in the associated table. It will doubtless be pleasing to persons interested in the proposition of afforesting certain areas in Central Otago to learn that by establishing 608,250 trees at Naseby Plantation this season the total planted here over the past three years is advanced to a million and a half, which number greatly exceeds that similarly dealt with during the previous- nine years of operations in the locality. The comprehensive system of tabulating the cost of carrying on the various works prefacing these remarks will permit of instant comparison of one station with another, and the differences and annual fluctuations in costs may generally be attributed to the varying conditions under which the work is performed. For instance, the expense attached to the preliminary clearing, preparation of ground, and tree-planting at Hanmer Springs amounted to £1 14s. 6d., whereas the same operation was undertaken for £1 Is. 10d. at Naseby; but the very hard state of the surface at the former station prohibited good progress being made, and, in fact, contractors were loth to attempt the digging-work at times even at a greatly increased rate. It is satisfactory to refer to the general curtailment of expenditure in the item " General upkeep per acre," notwithstanding an almost equivalent amount of work being conducted. Treepruning, clearance of interfering vegetation, fire-break, and other maintenance works were carried on most economically at Dusky Hill and Hanmer Springs Plantations; but the fact of only a comparatively small number of trees requiring attention at the former station should not be overlooked. The importance of almost immediately acquiring suitable ground for plantation-extension purposes is apparent. At neither of the chief stations is there a sufficient area to contain at the present rate more than two seasons' output of trees from the distributing nursery. In selecting future areas for tree-planting, not only should the altitude, character of soil, proximity to railwaj'-communication, and rainfall statistics be considered, but the wind factor should also greatly influence the acquisition, as the retarding effect on tree-growth of strong prevailing south-westerly and north-westerly winds in certain districts, and particularly on the higher levels, niakes the success in creating artificial plantations more problematical. Fire-preventive Measures. With an efficient protection against fires the problem of establishing forests becomes less difficult, and as more local experience is acquired annually, it is possible to effect improvements in this direction upon the more fecent areas afforested. Although we might advantagoeusly make greater use of the deciduous poplar and birch by increasing the width of the external fringe of these trees, and including strips on either side of the existing internal fire-lines, it is questionable if we could safely dispense with the custom of suppressing vegetation either near our boundary-lines or over the main areas now set apart as "fire-barriers." Two-years ago it was resolved to include in future a few external lines of the partially fire-resisting poplars; but in this connection perhaps it would have been better, in view of the rapid depletion of the kahikatea forests and consequent necessity for substituting a suitable timber for converting into fruit and packing-cases, &c, to have decided upon the Canadian species (Populux deltoides) in place of the smaller-growing Populus pyrarmdalis, which, however, is recognized as an excellent shelter-tree throughout Central Otago. It is gratifying, however, to be able again to place on record the complete absence of any conflagration over our young forests. Perhaps in no previous year has less uneasiness been felt by responsible officers for the safeguarding of their plantations, and this fact must be ascribed to the moist conditions prevailing almost throughout that period when fires are most likely to occur. As referred to in the detailed report of Conical Hills Plantation, a grass fire was started near the planted reserve, and at one time became threatening; but after directing our full gang upon the outbreak, it was quickly subdued. Although generally varied experience is gained by employees in the