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interfere too much with the haulage of ballast from the Awatere pit and constructional work beyond. Goods traffic is being worked by the Public Works Department in the meantime to give settlers the advantage of railway communication. Ward Section (37 m. 7 eh. to J r B m. 9ch.). —Earthworks to 40 m. 79 eh. are practically complete. At this point the formation runs across Lake Grassmere. During last summer the lake dried up to a considerable extent, and advantage was taken of the opportunity thus afforded to rush the formation of the bank across one arm of the lake. The bank across the other arm has been tipped in from a movable stage. Formation-work from the south side of the lake to 47 m. 45 eh. is practically complete. Kaparu Station yard, which has had to be cut out of the solid, was almost completed during the year. Hauwai Station yard formation is completed. Work at Ward Station yard is in hand. Stream-diversions have been cut at various places. A dam was constructed near Kaparu Station yard to obtain fresh water for locomotive. The bank across Lake Grassmere has been fascined, and in order to minimise the risk of its being damaged by floods till the pitching is done, an outlet was cut at the sea end of the lake. A culvert with tide flap was also put in, allowing the lake water to run out at low tide, and. preventing the inrush of the sea at high .tide. Seventeen concrete culverts of various sizes and two three-span bridges have been put in on this section, and preparation made for the erection of the remaining bridges. Platelaying has been completed from 37 in. 7 eh. to 40 m. 60 eh. The first lift of ballast has been completed from 37 m. 7 eh. to 40 m. The line has been fenced on both sides from 37 m. 60 eh. to 39 m. 4ch., as also has the ballast-pit line, and Kaparu dam. A road has been constructed from the Kaparu Station to give access to the main coach-road, a distance of Im. 20 eh. This road has also been fenced on both sides. A telephone-line was erected along the line from Seddon to Ward Station. Midland. Nelson-W estland Section, North End. Tadmor-Kiwi Section 29 eh. to £6 m. 38 eh.).— This section was completed and handed over to the Railway Department on the 18th December, 1908. Kiwi to Tui (£6m. 38 eh. to Ifim. 51 r .). —All banks and cuttings have been completed from Kiwi 46 m. 38 eh. to 49 m., and the greater part of the next two miles, 49 m. to .51 m., is finished. The Tui Station yard is approaching completion. Glenhope Section (Ifim. 51/. eh. to Hope Junction). —Cuttings are in progress at various points up to 55 m. 24 eh. (Tadmor Saddle), and for the next mile beyond. Also some 25 chains of shallow bank-formation from side pits has been partly completed as far as 57 m. Bushfelling and clearing have been done up to the same point. Bridges and Culverts. —At the bridge at 48 m. 58 eh., concrete abutments have been completed, piles driven, and walings and braces are being fixed. At bridge at 49 in. 30 eh., all concrete foundations for trestles have been completed and two pile piers are being driven. All timber is on the site. Overbridge at 49 m. 55 eh : concrete foundations have been put in, and timber for completing is on the ground. Bridge at 50 m. 68 eh.: excavations for concrete abutment and foundations of other piers are in hand. Contracts have been let for the necessary ironwork and timber in connection with these bridges. Various culverts have been constructed where required, and the line has been fenced on both sides for most of its length as far as Tui Station. Platelaying and ballasting have been carried on up to 48 m. 56 eh. A deviation of the line about three-quarters of a mile in length at 52 m. in order to avoid two crossings over the Tadmor River has been surveyed and approved. Bushfelling and clearing on this deviation are now in hand. Nelson—Westland Section, South End, or lleefton-Inangahua. On the 7th August, 1908, the section to Cronadun (45 m. 40 eh. from Stillwater) was opened for traffic. Since that date the turntable and water-tanks at Reefton Station have been erected, as also have all gates for private crossings. Gronadun-Landing Section (lf.sm. eh. to s£m. 30 eh.). —Larry's Creek bridge, commenced during the previous year, was completed in August, 1908. Boatman's Creek bridge was commenced in September, and completed in January, 1909. . A little formation-work had been done previously, and on completion of the Cronadun Section gangs were moved forward. Earthwork is in hand as far as the big cutting at the Inangahua Landing. The bushfelling is complete. Most of the formation is of an easy character; the heaviest portions being the approaches to Boatman's Creek and Larry's Creek bridges and the Landing Cutting. The two former works are practically complete, and the last well in hand. The culverts and minor water-openings are all being constructed, while the remaining small-bridge sites have been examined and plans prepared. Ganterbury-Westland Section, West End,. Otira Section (50 m. 39 eh. to 51m. Ifich.). —The formation from end of the opened line to commencement of tunnel contract has been completed. A considerable amount of stone protective works and'groins have been put in, and this work is now nearly finished. A tramway was laid into Goat Creek above the road, and a considerable quantity of big stone obtained. Rails have

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