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license to do so. He was fined £2 10s. and costs, and his license has not been renewed. Captain Hutchison, of the " Auriga," was prosecuted for shipping a boy without putting him on the articles, and was fined ss. and costs. Colonial Pilots. —Captain B. Butt having piloted the barque " Dundale " from Wellington to Dunedin without obtaining a renewal of his license, which had expired over a month before, proceedings were taken against him, when he was fined Is., and £1 Bs. costs. Proceedings were also taken against Captain Galbraith on a charge of having acted as pilot of the s.s. " Gothic " from Lyttelton to Dunedin without a license, but the case was dismissed. The Staff. —The cadet mentioned in the last paragraph of my report for last year has now been promoted to be a clerk after four years of service, and in order to overtake the increasing work of the office without the necessity for obtaining extra clerical assistance a cadet has been appointed. I have, &c, W. T. Glasgow, Secretary.

The Nautical Adviser and Inspector of Lighthouses to the Secretary, Marine Department. Sir,— Wellington, 30th April, 1898. I have the honour to inform you that during the past year I have inspected all the lighthouses (with the exception of two) in the colony. The result of my inspection is most satisfactory ; the lighting apparatus and towers at all the stations I visited are in good order and well kept. The keepers' dwelling-houses, almost without exception, are well kept. Several of the older dwellings have been thoroughly renovated and repaired, and in some instances additional rooms have been added to the dwelling-houses, which were not considered large enough. Also, at some of the stations more modern out-offices have been erected, and where required the keepers have been supplied with suitable material to erect cowsheds and fowlhouses. The repairs to the houses and the additions were executed by the Lighthouse Artificer and the department's carpenter, assisted by the keepers. In some cases it was necessary to obtain outside assistance. The work alluded to has been well and faithfully done, and should last for an indefinite period. At two or three of the oldest lighthouse-stations the keepers' dwellings are only in fair condition, and will require overhauling shortly. At several of the stations portions of the fencing round the lighthouse reserve have been repaired and renewed where required. As regards the keepers themselves, I can only indorse what I have already stated in my former report—that is, I found them a steady, reliable body of men, attentive to their duties, and. fully alive to the responsibility of their position. Deaths. —Mr. Nicolas Sciascia, the first assistant lighthouse-keeper at Portland Island, met his death by being gored by a bull, which was partly owned by himself. After the sad accident the animal was destroyed. Four months ago I saw the bull, and it appeared to me to be particularly tame and quiet. During the year much has been done to improve the lighting system on the coast, and also in several of the harbours. South Head, Hokianga River. —On the 15th March last a bright light was exhibited for the first time at South Head, Hokianga Eiver. This light is of great assistance to vessels bound into Hokianga Eiver. For the further convenience of vessels bound in or out by night, two white lights are kept at the station for the purpose of being used as temporary leading lights for guiding vessels across the bar when required. These lights are only used when the Harbourmaster .thinks it is prudent to do so. Otago Harbour. —For the convenience of vessels using the harbour by night, the Otago Harbour Board have exhibited two bright lights. One is situated off Deborah Bay and the other is situated on the west point of Quarantine Island. Westport Harbour. —The Westport Harbour Board have introduced a new system of harbour lights and night-signals, which are a great improvement on the old system. Picton Harbour. —For the convenience of shipping at Picton Wharf, dolphins, mooring-posts, and ring-bolts have been provided. East Cape, East Island. —ln March last the Marine Engineer and I visited Bast Island for the purpose of selecting sites for the lighthouse and dwellings. Suitable sites have been chosen, and plans are now being prepared for the tower. There is no fresh water on East Island, consequently large water-storage will have to be provided. On the west side of the island, opposite the mainland, there are good landing-places in moderate weather. Cook's Cove. —On our return journey from East Island Cook's Cove and Sporing Channel, Tolago Bay, were inspected by us, with a view of ascertaining their suitability as harbours for small vessels. We found that, owing to the shallowness of the water at low tide and the rocky uneven bottom, they are only suitable in their present condition to be used as boat-harbours. I have, &c, Geo. Allman, Nautical Adviser and Inspector of Lighthouses.

The Principal Examiner of Masters and Mates to the Secretary, Marine Department. Sir,— Wellington, 30th April, 1898. I have the honour to inform you that since my last report I have inspected the examina-tion-rooms at the four principal porta where the examination of masters and mates are held. I have also interviewed the Examiners concerning the new examinations which came into force at the commencement of the year. I find that the examination-rooms are thoroughly equipped for conducting the new examinations, and the Examiners have a thorough grasp of the new require-