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The amount got this year from Government, and received at bank to Wanganui Eiver Trust Account up to 31st March, 1898, was £760. In regard to the work done since Ist April, 1897 : In April and May, 1897, a wall was put across the upper end of a second channel at Karatia so as to turn more water into the channel in use for navigation. The quantity of large stone in this wall was approximately 570 cubic yards. The work was then discontinued for the winter season. The principal work done afterwards during the year has been above Pipiriki. A channel has been cleared and snagged as far up as the Whakataka Eapids, which are about twenty-two miles above Pipiriki, and about four miles below the junction of the Tangarakau Eiver. The heaviest part of this work has been in the rapids in the first six miles above Pipiriki. At Paparoa Eapid, besides clearing out boulders and snags, an extensive papa reef in the channel has been lowered. This work had to be done under water, in a rapid current. The reef had to be broken up by blasting with dynamite and powder, and the loosened rock picked up and loaded into the punt and removed, involving necessarily tedious work, several times interrupted by partial rises of the river. The extent of reef lowered was 240 ft. long by 40 ft. wide. A similar work was done at Autapu Eapid, about three miles higher up the river, on a papa ledge or reef, 90ft. long and 20ft. wide, on the left bank of river, so as to widen the channel; the blasting being done under water, and in a rapid current. At Upper Ngapore Eapid, at Mangaio Eapid, at Aratira and at Euahinetoro Eapids, a large number of rocks and large boulders under water were broken up by blasting, and removed out of the channels. Many snags and accumulations of imbedded drift-timber were also removed in this distance of six miles above Pipiriki. In the portion of river higher up, between this and the twenty-two miles above Pipiriki, the work was chiefly removing snags and timber out of the channels, but many rocks and boulders were also blasted and removed. The accompanying sketch-plan of the river between Pipiriki and the Tangarakau shows the numerous rapids, all requiring clearing in the channels. Although a channel has been cleared for twenty-two miles above Pipiriki, further improvement on several of these rapids still requires to be done to give more room and straighter channels, and in some places more water in low levels of river. The remaining part of river, of about four miles, to the junction of the Tangarakau requires a good deal of work, and has not been touched this season. There are here many snags to be cleared, especially in the two miles next to the Tangarakau Junction. Below Pipiriki a punt was employed removing snags and stones from various rapids and shallows. Some of these snags had lodged in late freshets, and others required removal to improve the channels. A second punt assisted in this work for a few weeks towards the close of the season. The river service has been kept up by Messrs. A. Hatrick and Co. during the whole year without interruption, and in an efficient manner. The larger steamers, "Wairere" and "Manuwai," ran for eight months with passengers and cargo, while the new and lighter steamer " Ohura, " with passengers, and sometimes light cargo, has kept up the communication when the river was too low for running the larger steamers; and this through a summer of exceptionally dry weather and low river-level. This dry season and general low river lasted during the months of December, 1897, and January, February, and March, 1898, or for four months. During this dry period, however, several small rises in the river enabled the larger boats to run, and thus partially to relieve the inconvenience of the delay in sending up and bringing down cargo. Thus, in December the " Wairere " made one trip, on the 4th; in January the " Manuwai " made one trip, on the 18th ; and the " Wairere " made two trips —viz., on the 18th and the 20th. In February the " Manuwai " made one trip, on the Bth ; and the " Wairere " made three trips—viz., on the Bth, 9th, and 11th. In March the " Manuwai " made one trip, on the 18th ; and the " Wairere " made five trips —viz., on the 14th, 18th, 20th, 22nd, and 25th. The remainder of the trips during these four dry months were, as before said, made by the " Ohura, " mostly without cargo. The " Manuwai " carries 15 to 20 tons, according to state of river, besides passengers. The "Wairere" carries 5 to 15 tons, according to state of river, besides passengers. The " Ohura " carries up to 5 tons; she has taken up to fifty passengers in low river. In down traffic the " Manuwai" has taken 132 bales wool, and the "Wairere" 80 bales wool, besides passengers. The licensed capacity for passengers is : " Manuwai," 400; "Wairere," 250; "Ohura," 150. But numbers approaching these have, however, hitherto only been taken on the lower tidal portion of the river. Thus it will be seen that the river between Wanganui and Pipiriki now affords passage by small steamers even during very low levels, such as were experienced last summer, and which last generally from three to four months of the year; whilst the larger steamers, with passengers and cargo, can run usually for eight or nine months of the year, and also at intervals during the dry season, whenever an occasional rise in the water-level occurs. It is advisable, however, to continue improving the shallow parts between Wanganui and Pipiriki, as it is to this part of the river that the general cargo traffic is as yet confined. The continuation of the clearing of the channel above Pipiriki to junction of the Tangarakau, and onward above this, is also most important, as inducing to settlement, and as a tourist route. It is obvious that for many years the river will be the only highway available for heavy goods, cargo, and produce transit into this interior district on both sides of the river. The river is capable of improvement in a similar manner to that portion already improved, as far at least as a few miles above Whenuatere, or to about sixty-six miles above Pipiriki, being about 123 miles by river above Wanganui. The Crown lands on both sides of the river would manifestly be benefited by this, as, for instance, those in the Eetaruke Valley, which are favourable for settlement, the junction of the Betaruke with the Wanganui being about forty-seven miles above Pipiriki.