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more highly-paid men having entailed the promotion of a number of juniors to fill their places, I have proposed several small increases in salary to departmental officers this year, which I trust the House will agree to The amounts are in all cases exceedingly moderate, and the total amount of the increases proposed does not exceed £230 per annum So far as the arrangement of the staff is concerned, very little change has been made during the year The appointment of Mr Blow as Under-Secretary was a wise selection, and a promotion well-earned, and the placing under him of the whole of the administrative and clerical portion of the departmental work has proved the wisdom of the choice made, and I have no hesitation m saying that these branches of the department have never been more efficiently carried on, nor under better control, at any previous period. The Acting Engineer-m-Chief, Mr Hales, has been appointed Engmeer-m-Chief, a position to which, from his long experience and position in the service, he was justly entitled, and which he will most efficiently fill. The change made in placing all work of a clerical nature entirely under the Under-Secretary, thus enabling the whole time and attention of the Engmeer-m-Chief to be devoted to engineering and technical matters, has effected a great saving in administration, and has worked most satisfactorily, and the work has been more evenly distributed. On the 31st of October next Mr. John Blackett, who at present fills the position of Consulting Engineer for the colony in England, will retire from the public service on a well-earned pension. Mr Blackett has been m the public service for more than thirty-three years, partly under the Provincial Government of Nelson, but principally under the General Government of the colony During this lengthened period he has successively filled the offices of Provincial Engineer, Nelson, Assistant Engmeer-m-Chief, Engmeer-in-Charge for the North Island, Marine Engineer, Engineer-m-Chief, and Consulting Engineer m England, in all of which positions he has rendered distinguished service to the country On his retirement at a ripe age, and after so lengthened a period of service, it affords me much pleasure to thus bear official testimony to his great worth as a faithful public servant. WORKING RAILWAYS. The length of line completed and handed over to the Railway Commissioners for working during the year has been 31 miles 8 chains—namely, the Glenomaru Section of the Catlin's River Railway, 6 miles 18 chains, and the Hindon-Middlemarch Section of the Otago Central Railway, 24 miles 70 chains —making a total length of railway opened for traffic at the close of the financial of 1,867 miles. The total earnings during the year amounted to £1,115,431, and the net profit, after deducting working-expenses, amounted to £408,914, being £5,086 less than the Railway Commissioners' estimate for the year, and £12,084 less than the net revenue of the preceding year The percentage return on the total capital invested in the railways amounted last year to £2 15s. 9d per cent., against £2 18s. lid. per cent, for the previous year, and £2 19s. sd. for the year 1889-90. I am glad to state that for the current financial year the Railway Commissioners estimate that a larger net revenue will be earned, their estimate being £423,000, but even this amount will only about bring* the net revenue up to that of 1890-91, though the length of line open for traffic will be over thirty miles more than that year The best paying sections during the late year have again been the two coalcarrying lines on the west coast of the Middle Island, the Westport Section having earned no less than £7 6s. per cent, on its cost, and the Greymouth Section £5 15s. sd. per cent. These sections show a substantial increase on last year's return, both as regards the total amount earned and the percentage of profit paid. Next to these two lines comes the Napier-Wanganui-New Pymouth Section, which earned £3 2s. lOd. per cent., also a substantial improvement for the year The Nelson Section earned £1 4s. 9d. per cent., against a loss of about the same percentage during the previous year. The Kawakawa and Picton Sections show more favourable results than in the previous year, while the