F.—l

XI

A line has been erected over Spooner's Eange between Belgrove and Motupiko, and a telephonestation opened at the latter place. An examination was made of all poles throughout the Blenheim-Kaikoura section, the result showing only 2 per cent, decayed at the ground-line. The remainder is still in very good condition, although the greater number were erected sixteen years ago without undergoing any preservation process. The decayed poles are now being replaced. The condition of the lines throughout has been such that no important repairs or noteworthy outlay have been required during the year. Cheistchuech Disteict. The section between Arahura Junction and Kelly's Creek, with the exception of four miles, has been entirely re-poled with totara saplings. The line has also been diverted in many places to facilitate inspection. New arms have also been put on. Kelly's Creek to Otira Gorge: Nearly the whole of this piece of line has been diverted and erected on a new road. Otira Gorge to Bealey : This section has received an overhaul, decayed poles removed, and several diversions made so as to avoid the rivers as much as possible. Bealey to Springfield : Several long diversions have been made to clear encroaching rivers. On many sections the spans have been shortened, and new poles erected to replace unsound ones. Hokitika to Greymouth: This section will require to be repoled next summer, as the line is becoming unsafe, especially between Greymouth and Marsden and Kumara. A good deal of bushclearing will also have to be done. Greymouth to Ahaura : The first seventeen miles (Greymouth to Nelson Creek) of this section have been entirely reconstructed, and a great deal of bush-clearing done. The balance of about five miles will be put in hand shortly. All the other sections in this district are in very good order, no expenditure beyond ordinary maintenance having been incurred. A considerable number of private and telephone-exchange wires have been erected during the year. Dunedin Disteict. The Wyndham to Fortrose line, twenty-three miles in length, was completed, and telephone stations opened at Pine Bush and Fortrose in the month of May. A line has been erected between Oamaru and Ngapara, seventeen miles in length, and three telephone-stations opened, viz., Weston, Enfield, and Ngapara. The Dunedin-Seacliff Eailway wire has been extended to connect the Dunedin and Seacliff Asylums, Morse instruments being used. Two railway-stations, viz., Upper Port Chalmers and Purakanui, were put in circuit on the Dunedin-Seacliff line. At the same time Lemon-block instruments were fitted up on block wire at Glendermid, Purakanui, and Waitati. The principal repairs have been the overhauling of the following branch lines : Dunedin to Port Chalmers, Port Chalmers to Otago Heads, Outram, Kaitangata, and Clinton to Waikaia. A few unsound poles were stumped, insulators replaced, and the whole of the lines thoroughly examined. The main line also from Tokomairiro to Edendale was examined. A portion of the Queenstown line between Cromwell and Arrowtown will require shifting on account of the opening of a new road and the abandonment of the old one; this will be done during the summer. The whole of the lines in the district are in excellent order. The Telephone Exchange opened on the 26th April, 1882, with 60 subscribers, and on the 12th November there were 150 connections. At the end of December there were in course of erection thirty additional wires, bringing the number of subscribers up to 180—a very marked increase indeed. Wellington Disteict. The Cook Strait cables, and the cable from Wanganui to Wakapuaka, still give evidence of good condition. The land-lines have been carefully overhauled during the summer, and all faulty poles renewed and defective insulators made good.

The usual plans of circuits accompany this report.

SCHEDULE OF TABLES. Table No. 1. Number and Amount of Money Orders issued and paid in New Zealand. 2. Number and Amount of Money Orders issued in New Zealand, the United Kingdom, and Australian Colonies, and made payable in the respective Countries. 3. Total Number and Amount of Money-Order and Savings-Bank Transactions. 4. Eeturn of Post-Office Sayings-Bank Business since System established. 5. Balance-sheet of Post Office Account. 6. List of Securities held on account of Savings Bank Fund. 7. 8, 9. Statements showing the Times within which Mails delivered by the San Francisco and Galle-Brindisi Services.