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The " Southern Cross " has not been found suitable for an exercising vessel; but, if a small schooner (for the purchase of which a sum is on the estimates) is obtained, so that the boys can be taken on short cruises in Auckland Harbour or the Hauraki Gulf, great good to the school will no doubt result. Weather Reporting. —l forward herewith a report by Captain Edwin on the Weather Reporting Office. It was found necessary about the close of the financial year to appoint an officer to assist Captain Edwin. The number of warnings sent during the year has been very great, and, according to the returns, a large percentage proved correct, although many of the warnings did not refer to great or marked changes in the weather. I propose to instruct Harbour Masters at the various ports under the control of this department, and all lightkeepers, to keep simple tidal and meteorological records, which I have no doubt will be valuable aids towards the more important work of the Weather Reporting Department. Wrecks and Casualties. —During the year, 61 casualties were reported to this office, 52 of which occurred on or near the coasts of the colony. Of these, 23, affecting vessels of an aggregate of 4,162 tons, were cases of total wreck (in this, however, is included the " Hydrabad," which it is possible may be recovered), while 29, affecting vessels of 3,479 tons in all, were cases of partial loss only. The number of lives lost on or near the coasts of the colony was 20, viz., 5 from the " Lionel," 6 from the " Excelsior," and 4 from the " Clan Alpine " (all hands in these vessels being lost), 2 each from the " Echo" and the "Zion," and 1 from the "Queen Bee." Nine casualties were reported as having occurred beyond the colony, consisting of 6 total wrecks, with an aggregate tonnage of 1,615, 2 partial losses (tonnage 2,588), and 1 case of only loss of life. The total of lives lost in these cases was 12, viz., 7 from the "Hinemoa" (lost with all hands), 2 from the "Emma," and 1 each from the "Bencleuch," "Kedar," and "Kentish Tar." The usual returns showing expenditure, wrecks, and casualties, &c, arc appended hereto, as is also the usual wreck chart. I have, &c, R. Johnson, The Hon. the Commissioner of Customs, Wellington. Officer in Charge.

Enclosure 1. The Marine Engineer to the Officer in Charge, Marine Department. Sir,— Marine Office, Wellington, 30th June, '878. I have the honor to forward, for the information of the Hon. the Commissioner of Customs, the annual report on works executed for new lighthouses during the year, viz. : — Brothers. —At date of last annual report all the works in connection with this lighthouse were near completion, and the light was first exhibited on the 24th September, 1877. Portland Island. —The contract for this work was completed after considerable delay, and the light established on the 10th February, 1878. The description of the light is as follows : —Tower, 28 feet high, of timber, painted white; the light is of the second order revolving white light, visible all round ; greatest brilliancy every thirty seconds. It is 300 feet above the level of the sea, and, allowing 15 feet for height of eye, it will be seen 24 nautical miles, in clear weather. A fixed red light, having an arc of about six degrees, is shown in the direction of the Bull Rock, from the lower part of the tower. Centre Island, Foveaux Strait. —The works of this lighthouse have been all satisfactorily completed under contract; the lantern and apparatus have since been fixed, and it is expected that everything will be ready for lighting up about the end of August. The light is of the first order, fixed; with red arcs thrown over the inshore dangers. Puysegur Point, Preservation Inlet. —The contract works at this lighthouse have also been satisfactorily completed, and the tower is now ready to receive the lantern and apparatus, the erection of which will be begun in a few days. Moeraki. —Since my last report all the works have been completed under contract, the lantern and apparatus fixed, and the light exhibited on the 22nd April, 1878. This is a third order fixed white light, visible 19 miles. The site of this lighthouse is on the southern extremity of the Moeraki Peninsula, overlooking the Kargiti Beach. Timaru Harbour Light. —As reported last year, tenders were called for this work, which consisted of the lighthouse tower and a dwelling for the keeper. A contract was entered into, which, after numerous delays and difficulties, was completed long after the contract time. The lantern and apparatus were then fixed, and the light will be exhibited on the Ist July, 1878. The official description of the light is as follows : —lt is a fixed white light of the fifth order; it will be visible from N. 20° W. to S. 20° E. The tower is 30 feet in height. The light is elevated 85 feet above the sea, and will be seen, in clear weather, at a distance of 114 miles. Hokitiku Harbour Light. —The lantern and apparatus for this have been ordered from Home, but no advice of their shipment have been received. Cape Maria. —A working party was sent to this place in August last, and I am now glad to be able to report that all the buildings at this station will he completed about the end of August, and ready for the reception of the lantern and light apparatus. The works here have gone on very steadily, and without hitch of any kind, although the landing-place at times offers serious difficulties in landing materials under certain states of the wind,