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formation was recommenced, and is now nearly completed from 31 m. 60 eh. to 35 m., or to Mina Station, near Mackenzie Township. From 35 m. to 36 m. formation-work is of a very light character, and little has been done. An overbridge at 33 m. 42 eh. is well in hand, and the bridge over Crystal Creek is completed. Preparations are being made to lay rails and sleepers, which are both due here shortly. Two platelayers' cottages have been built by contract at Mina Station, 35 m. 30 eh. Catlin's-Waimahaka. Catlin's End. Houipapa Section (21m. 60 eh. to 21/ m,. 10 eh.). —This section is completed, and is ready to hand over to the Railway Department as soon as the quarry sidings and crushing plant are removed. Papatupu Section (21/.m. 10 eh. to 27m. 1/0 eh.). —The earthwork is practically completed. Platelaying is completed to 25 m. 34 eh., and ballasting is three-fourths completed to 25 m. 34 eh. Culverts and pipe drains are nearly completed, only a few points remaining to be clone. Fencing is three-fourths completed. As the present quarry at 22 in. 34 eh. on the previous section has run out, the crusher and bins will be moved on to 24 m. 22 eh. to break ballast for the road and for the line and metal for concrete culverts on ahead. Table Hill Section (25 m. 60 eh. to 31 m. J/0 eh.). —This section, 5| miles in length, runs through heavy bush country along the whole route. The upper Catlin's Valley Road is on the north side, but the line leaves it at 27 m. 40 eh., and after grading round a few small gullies runs along the south side of the Papatupu Stream from 30 in. to the saddle of Table Hill. The country is steep and rugged, similar to the latter end of the Papatupu Section, but more difficult of access from roads, while heavier earthworks are encountered. The gullies are very deep, and the spurs between cause heavy cuttings to prevail. Curves of 7J chains radius are frequent in order to negotiate the gullies and sharp spurs. Work on this section has been pushed on energetically throughout the year, though wet weather and bad roads have made progress difficult. Clearing, logging, and burning have been completed to 29 in. 32 eh. Earthworks have been carried on principally between 25 in. 70 eh. and 28 m. 40 eh. The cutting between 28 m. 23 eh. and 28 m. 32 eh. has been pushed on from both ends, and a drive put through in order to work the cutting more expeditiously and economically. Pipe and concrete culverts have been constructed as follows: 246 ft. of 12 in., 433 ft. of 18 in., 713 ft, of 2 ft., 491 ft. of 3 ft., 342 ft. of 4 ft., and one 6 ft. culvert 163 ft. 6 in. long. Numerous stone drains have been put in to carry the water away from springs and from the bottoms of gullies. Owing to wet weather and heavy cartage, the roads became almost impassable, so that a woodentramway was laid down from 27 m. 30 eh. (where the line leaves the road) to 28 m. 45 eh., and 'is being continued to Christie's Creek in order to get materials for culverts and plant forward. Waimahaka End. Tokonui Section (21/ m,. 1/8 eh. to 33 m,.). —Bushfelling is completed to the end of this section. Logging-up is also done, with extra widths required at deep gullies and cuttings. Formation has been proceeding at intervals between 24 in. 48 eh. and 31 m. 10 eh. Up to the summit at 29J m. formation is nearing completion. From the summit to 31 m. 10 eh. is now fully manned, but a great deal of work remains to be done. From 31m. 10 eh. to end of section no work has been done. Culverts are practically complete to 29J m. The following have been constructed: Six 12 in. pipe culverts, eight 18 in. pipe culverts, two 2 ft, concrete culverts, two 2 ft. 6 in. concrete culverts, three 3 ft. masonry culverts. A bridge consisting of one 18 ft. span was built at 26 m. 12 eh. Fencing is done to 26 m. 76 eh. on the right of line, and to 27 m. 60 eh. on the left. A little remains to be done at Te Peka Siding, 26 m. A service tramway was constructed from 28 m. 60 eh. to 31 m. 6 eh. An officer's cottage was erected at Waimahaka. The location of the line from 29 m. 39 eh. to Tokonui Station was revised, and the greater part of it has been repegged. No platelaying has yet been done, but a commencement will be made shortly. Lawrence-Roxburgh . Evans Flat Section (22 m. to 25 m. 39 eh.).— All earthwork and trimming of formation has been completed. Four pile bridges, totalling 440 ft. in length, have been erected. Platelaying and sidings at Evans Flat have been finished. A siding into Tuapeka Stream for the purpose of obtaining ballast has been laid for a distance of 65 chains. The first lift of ballasting has been done over the whole length. A contract has been let for the erection of station-buildings, platform, and loading-bank, and the work commenced. _ A platelayer's cottage is three-fourths completed. Gates and. cattle-stops are also nearing completion.

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