H.—ls

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power to hold certificates, has considerably increased the work of the Chief Inspector's office and of the Inspectors. The increase of work from this and other causes has necessitated the appointment of an additional Inspector and the employment of additional clerical assistance. Mr. W. J. Jobson, who was one of the first Inspectors appointed after the passing of " The Inspection of Machinery Act, 1874," has retired from the service. He has been stationed in the Auckland District during the whole period of his service, and has been a valuable officer. Mr. Morrison, one of the Dunedin Inspectors, has resigned his position. Hitherto the work in Southland has been performed by one of the Inspectors stationed at Dunedin, but it is now sufficient to render it advisable to station an Inspector at Invercargill, and it has therefore been decided to make that place the headquarters of Inspector Bethune. Messrs. Dalrymple, Calvert, and Walker have been appointed Inspectors. Survey of Steamers. —The report of the Principal Engineer Surveyor is appended hereto. There has been one prosecution for a steamer carrying more passengers than allowed by her certificate, and a conviction was obtained. Examination of Masters, Mates, and Engineers. —The examinations during the year have been satisfactorily carried out. The only alterations made in the regulations have been to provide for the use of the new international code of signals, and to provide for the issue of provisional certificates to enable persons to enter and receive promotion in the Eoyal Naval Eeserve. For certificates of competency 169 persons passed their examinations, and 100 failed. Of those who passed 110 were masters, mates, and engineers of sea-going vessels, and 59 were masters and engineers of vessels plying within restricted limits. The reports of the Principal Examiners of Masters and Mates and of Engineers are appended hereto. Deck Cargo. —The necessity for the amendment of the regulations governing the carriage of deck cargo, especially as regards the carriage of timber on scows and other vessels, having become apparent, the Nautical Adviser has gone into the matter, and has drafted the amendments which he considers necessary. These are now under consideration. Convictions have been obtained against the masters of two vessels for carrying more cargo than allowed by their licenses, and against one for carrying timber on deck without a license. Engagement and Discharge of Seamen. —This work has been carried out in a satisfactory manner. Prosecutions have been instituted in some cases where masters have employed men without entering into agreement with them, and convictions secured. In one case a master has been fined for leaving port with two men short of the number of seamen required by law to be carried. It was found that some shipmasters whose vessels carried foreign articles, although trading nearly all their time on the coast, were giving their men discharges for foreign service for the whole of their time. As this practice was considered to be contrary to the regulations, instructions were issued to Superintendents that it must not be allowed, as the service to be shown in the discharges must be such as had actually been performed. At the same time, the Board of Trade was asked for its view of the matter, and the reply received confirms the action of the department. Government Steamers. —Both steamers have been kept fully employed during the year. The " Tutanekai " has been engaged in the following work —viz., repairing Cook Strait cable, laying a cable between Auckland and Motuihi Island, making a trip to the South Sea Islands, taking the Federal Contingent to Sydney for the Commonwealth celebrations, accompanying the " Britannic " with the Imperial troops round the colony, and in carrying railway rolling-stock, &c, and sleepers. The " Hinemoa " has, as usual, been principally employed in attending to the lighthouses and harbour buoys. She has also visited the Kermadec and the Southern Islands to search for castaways, and to inspect and replenish, when necessary, the provision-depots, and she has towed the Westport dredge from Onehunga to Westport. She will shortly require new decks, as the present ones are becoming worn-out. Wages and Effects of Deceased Seamen. —The estates of eleven seamen, amounting to £43 18s. 7d., were dealt with during the year. Of these, eight were new estates. The sum of £25 4s. 2d. was paid to relatives and other claimants. Wrecks and Casualties. —Tables showing the casualties to ships, and an analysis thereof, h appended hereto. Those on the coasts of the colony numbered forty-eight, representing 19,502 tons, as against forty-two, representing 10,146 tons in the previous year. The total wrecks within the colony were ten, of 1,309 tons, as against six, of 2,247 tons, in the previous year. The number of lives lost was fourteen, as against thirty-five last year. Of these, thirteen were within the colony —viz., seven from the " Wolverine " (all hands), and one each from the " Eliza Firth," " Nancy," " Eonga," " Tararawa," " Hermione," and " Grace Harwar." I have, &c, W. T. Glasgow, Secretary.

The Principal Examiner of Masters and Mates to the Secretary, Marine Department. Office of the Principal Examiner of Masters and Mates, Lambton Quay, Sir,— ' Wellington, 17th May, 1901. I have the honour to inform you that the examination of masters and mates has been carried out by the Examiners at the four principal ports in a satisfactory manner. I have the pleasure of again being able to express appreciation of the gentlemen who have been appointed as my colleagues in the examination work at the four principal ports, which I have visited during the year at different times. There has been a considerable increase in the number of candidates who have presented themselves for examination, especially at Wellington, where most of the examination work has been conducted during the last year, and during the last nine months examinations have been held here (with but few exceptions) in every week. Owing to this, and the difficulty of relieving