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KaiJcoura Point. —An order has been placed for an automatic flashing light with open flame burner for this locality, and the apparatus has been landed. In order to proceed with the erection of the light, and to enable it to be attended to after erection, it is necessary to form about 20 chains of road, and this work is now being put in hand. Kahu Rocks. —Provision was made on last year's appropriations for a sum to cover the erection of a light on these rocks. After a careful investigation it was found to be a very expensive matter to build a tower on the rock itself on account of the impossibility in finding shelter for the workmen on the rock itself or a suitable base of operations on the mainland from which the work could be carried out. It was then decided to place the light on the mainland, and after careful examination of the coast it was found that what is locally known as the Honeycomb Rock would provide a very suitable location, giving a clear view up and down the coast, and being comparatively close to the Kahu Rocks, which can be covered by a red sector. It is also of sufficient elevation to give a range of from twelve to fifteen miles. Godley Head. —A modern diaphone fog-signal operated by compressed air has been landed for this station, the excavation of the site has been completed, and the foundations of the shed to house it have been put in. It is anticipated that the signal will be in operation shortly. Cape Brett.—Various renewals and repairs were carried, out to the keeper's residence. Manukau South Head. —Arrangements are being made to convert this light from a watched light to automatic operation. Specifications have been prepared and orders placed for the apparatus. Adjustment and Survey of Ships' Compasses. The regulations for adjustment of compasses of ships, which require that the compasses of every foreign-going, intercolonial, and home-trade vessel shall be examined, adjusted, &c., periodically, have been carried out with care, and the results of all compass-adjustments have been investigated in the Nautical Adviser's office. There are qualified adjusters of ships' compasses in the main ports who are licensed by this Department, and during the year it has been found this important work has been carried out by them with care and skill. The work performed by the licensed adjusters is subjected to examination by this Department's Inspectors of Compasses, and the results of their inspections show the desired standard of this important direction-giving instrument to have been well maintained. During the year it has been found unnecessary to delay any ship owing to inefficient compass equipment, but in a few cases in which the compass errors closely approached the maximum error allowed by the regulations it was found necessary to subject those ships to short periodical inspections for the purpose of ascertaining the stability of their compass system. The gyroscopic compass, an electrical energy-consuming device requiring a constant supply of that energy to enable it to function, is not yet in use on any of our coastal ships. It would appear a considerable time will elapse before it will supplant the magnetic compass. Marine Casualties. The year witnessed a normal number of marine casualties at or near our coasts, varying considerably in their nature. The usual number of minor casualties caused by stranding, collision, fire, &c., continue to occur, and preliminary inquiries have been held by the departmental officers when considered advisable. Formal investigations before a Magistrate for the purpose of endeavouring to ascertain the cause and to allocate the blame, if any, were held in respect of seven casualties. It is extremely gratifying to be able to record that no lives were lost during the year through marine casualties. One casualty, the loss of a pleasure launch near Cape Maria van Diemen, closely approached a catastrophe. This launch, with five persons on board, none of whom was a competent navigator, left Auckland with the intention of meeting a schooner and proceeding with her to Norfolk Island, a very hazardous undertaking should the ships through any unforeseen reason become separated. However, the schooner was not met, and those on board the launch unwisely attempted to proceed to Norfolk Island alone. Fortunately, the weather frustrated this shortly after they had left New Zealand, and they returned to the land. Subsequently the launch became a total wreck, and its occupants underwent much risk in gaining the shore. It would appear this launch was designated a pleasure yacht, and as such would not be subject to the Department's requirements to the same extent as is a trading-vessel. The s.s. " Manaia " was totally lost whilst on a voyage from Tauranga to Auckland. All lives were saved. This was effected with promptitude owing to the " Manaia " having been fitted with a wireless-telegraph installation in accordance with this Department's recent legislation, and communication was established with other vessels immediately. A collision between rival launches engaged in capturing whales in Cook Strait created much interest among the whaling community of Marlborough Sounds. It would appear that rival parties are prepared to take considerable risk when in pursuit of whales, and this becomes much accentuated as the chase become a close one, especially if the whales are scarce or if only one whale is in sight at the moment. The colliding launches suffered from damage, but no injury to persons resulted. Whilst the collision regulations apply to all ships, it would appear that they are ignored by or inapplicable to vessels racing at high speed to capture a whale. Some anxiety was caused owing to a small fishing-steamer, the " Awarua," bound from Chatham Islands to Wellington being overdue, and having signalled a passing steamer that she was short of coal, and required assistance to be sent to her. This information was promptly repeated by wireless telegraphy, and a search was organized, but was much hampered by adverse weather. Eventually and with commendable promptitude she was found and towed to port by H.M.S, " Dunedin,"

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