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and the result of the survey has since been added to the charts by the Hydrographer to the Admiralty An examination of part of the coast line near Jackson's Bay was also begun, but owing to the " Luna" having to return to Wellington, this work had to remain unfinished. 9. Examination of Masters, fyc. —Certificates have been issued to 101 candidates, 55 of these being masters and mates, and engineers of sea-going steamers ; the remainder were issued to masters and to engineers of river steamers. The Board of Trade Regulations for the issue of Colonial Certificates of Competency, under the provisions of " The Merchant Shipping (Colonial) Act, 1869," have been recently altered, to the advantage of colonial officers. Instead of requiring that a man should have been domiciled in one colony for a period of three years immediately preceding his application to be examined, three years' domicile, during not more than five years preceding his application, in any one or more of the Australian colonies is now only required. 10. Steam Navigation. —During last year, certificates have been granted to 103 steamers, with an aggregate tonnage of 9,265, and horse-power of 3,590; being 12 more steamers, of 1,963 tons and 581 horse-power, than had certificates last year. 11. Wrecks and Casualties. —During the past year, 107 casualties were reported to this office; of these, 95 occurred at or near the coast of the colony, and 12 at sea. Of the casualties that occurred on or near the coasts of the colony, 30, of a tonnage of 2,534, were total wrecks; 60, of a tonnage of 9,217, were partial losses, and 5 were cases of loss of life only. Of the " partial losses," a great number were of a most trifling description, and are solely reported in order to fulfil the requirements of the Board of Trade Regulations. The number of lives lost by shipwreck and casualties on the coast* of the colony was 36—viz., 6 each in the "Pacific" and "Dauntless," 5 each in the " Pearl " and " Tawera," and 2 each in the " Blanche " and " Emily " (these vessels were lost with all hands); 3 lives were lost from the cutter "Hero," and one each from the "Ethel," "Maiden City," "Gazelle," "Jessie," "Florence," "Atalanta," and "Dante." Thirty lives were reported as having been lost beyond the coast of the colony; of these, 23 were in the missing vessels " Chanticleer " and " Comet," which sailed from this colony for Hobart Town, and have not since been heard of. An enquiry was held in November last, under the 241 st section of "The Merchant Shipping Act, 1854," into the conduct of John Mitchell Williams, second mate the ship " Waikato," who was accused by the master of drunkenness, neglect of duty, and resisting the lawful authority of the master, whilst on a voyage from London to Lyttelton. The charge of drunkenness was not substantiated, but the others were, and his certificate was suspended for six months. In October last, the attention of the department was called to the conviction of Edward George Couves, second mate of the " City of Auckland," who was, with others, sentenced to imprisonment at Auckland for having stolen three cases of brandy from the cargo of that vessel on the passage from London to New Zealand. In order to reach the brandy they had to use lights, and crawl over a quantity of gunpowder in the hold. This conviction was reported to the Board of Trade, coupled by a recommendation from this department that Couves' certificate should be cancelled, which was accordingly done. 12. Naval Training School at Koliimarama. —I enclose Captain Breton's report for the past year, from which it will be seen that the institution continues to work satisfactorily. There were 80 boys on the books on the 30th June. I visited the school in May last, and was much gratified with what I saw there. The boys looked cheerful and healthy, and many of them were making good progress in school. After school, the boys work in the garden, or at any light employment they can be put to about the place. The school is pleasantly situated near the waters of the Waitemata, in a bay facing the entrance to that beautiful harbour, and distant from Auckland about four miles by water and nine miles by land. The buildings are commodious, and well adapted for the purposes of the institution: they comprise a large hall, one-half of which is fitted up with bunks and used as a dormitwy, and the other half as a school-room; a smaller building, part of which is used as a hospital, and the remainder for quarters for the seamen instructors and cook; and a large stone building, m which the boys take their meals. The lease for a term of fourteen years from the 4th April, 1875, for the school station and the old mission schooner " Southern Cross," has been signed by the Trustees, and by His Excellency the Governor on behalf of the Queen. The annual rental to be paid is £100, together with cost of insurance on the buildings and schooner, which amounts to about £60. The area of the land attached to the buildings was only 6| acres. This was found to be too small to allow of the school being satisfactorily and economically managed. A lease of an additional piece of land adjoining the school, of 24 acres, waspurchased at a cost of £200; and the Trustees of the Melanesian Mission kindly granted a new lease, with the same currency as that for the school, at the moderate rental of £32 per annum. There is a house on this property, which affords comfortable quarters for the Manager and liis family ; the land is turned to profitable account for grazing, and for raising crops of potatoes and other vegetables for the use of the school. When the Government entered into negotiations for the occupation of the Mission Station at Koliimarama, they were led to understand, from the report of a competent surveyor who examined the vessel only a year before, that the " Southern Cross " was sound and seaworthy, and that very little expense would have to be incurred to make her ready for sea. It was intended to alter her into a brig, and to use her for making short trips on the coast, with a number of boys on board, for the purpose of teaching them practical seamanship, so that they might be sufficiently trained on leaving school to be able at once to begin useful work when apprenticed to the sea. Unless this plan be adopted, it will probably be difficult to get shipowners and masters to take the boys in preference to any others. Before incurring the expenditure that would be necessary to fit the " Southern Cross " for sea, it was considered advisable that she should be thoroughly examined. The surveyors n-ported that the vessel was generally sound and in good order, and recommended that she should be thoroughly repaired and caulked. Tenders for the execution of these repairs were called for, and the work was being proceeded with, when, on removing some of the outside planking close to the stern-post, the vessel was found to be in much worse condition than was expected ; and as the cost of repairs would probably run up to more than she would be worth when they were completed, instructions were given to the Manager not to incur more expenditure than was absolutely necessary; and the idea of fitting her for sea had reluctantly to