D.—l.

To facilitate the handling of spoil and to get earlier access to the Purewa Tunnel a drive 18 ft. by 9 ft. was driven through the approach cutting at the north end, and continued through the tunnel to meet the bottom heading of the other end. In the approach cutting at the north portal at 4m. 57 ch. a rising shaft was driven to the surface of the ground, and the cutting is being broken down through the shaft. To date about 30,000 cub. yd., or rather more than one-quarter pf the cutting, have been removed by this means. The bottom heading, 35| ch. in length, was completed in April last, by which time sufficient of the approach cuttings at each end had been removed to enable a start to be made with enlargement and lining. At the north end 54 ft. have been enlarged to full size, and 38 ft. lined with concrete and fully completed. At the south end progress was retarded by an extensive slip over the portal, but a length of walls and invert is completed. The tunnel will be 29| ch. in length, lined with mass concrete throughout, and will carry two tracks. The formation from the south portal, 5 m. 6ch., to the Point England Road at 5 m. 70 ch., including the excavation of the subway at the road-crossing, is well advanced, and a rail connection will shortly be established between the tunnel and a rock cutting at 6 m. 60 ch., at which point a crushing plant is being erected to supply metal for concrete lining, bridges, &c. From 6m. 60 ch. onward the route has been resurveyed, and some alterations are being considered. Numerous small culverts and several large ones have been completed between 1 m. 33 ch, and sm. 70 ch. No permanent bridges have been commenced as yet, but several sites have been temporarily trestled to facilitate the disposal of earthwork. Designs for all of the bridges are in hand or completed. Practically the whole population of staff, workmen, and their families are concentrated in villages at Campbell's Point, Orakei, and Purewa. At the latter point 86 married workmen's houses and 140 single men's huts have been erected. Metalled roads, electric light, water-supply, and sewerage system have been installed, and other features of the encampment are a Y.M.C.A. hutment, workmen's cookhouse and bathhouses. East Coast Main Trunk Railway—Waiiii Eastwards. Athenree Section (0 m. 0 ch. to Bm. 68 ch. ; length, Bm. 68 ch.).—-The actual formation of this section has been completed for about two years, and a goods and passenger service was run throughout the year with satisfactory results. Two additional cattle-stops have been erected, and fencing and track kept in repair. Additional excavation was undertaken at Athenree yard in connection with the erection of a goods-shed. A road-diversion is being constructed at 7m. 60 ch., and the surplus material is being deposited in Tuapiro bank on the Katikati Section. Platelaying is complete throughout the section, and guard-rails have been placed on all bridges with the exception of the Waimate Bridge at 2m. 62 ch. Ballasting has been completed, and the metalling of Athenree and Waimata yards is almost finished. The total output for the year from the Athenree quarry was 18,200 cub. yd. of ballast, 1,900 cub. yd. screenings, and 196 cub. yd. spalls. 1,332 cub. yd. of the metal and 210 cub. yd. of screenings were sold to local bodies. A goods-shed has been erected at Athenree Station, and this section (with the few exceptions mentioned above) is now complete. Katikati Section (8 m. 68 ch. to 16 m. 28 ch. ; length, 7m. 40 ch.). —Clearing on this section is almost finished. The line is fenced to 14 m. (including approaches to overbridge at 12 m. 59-50 ch.), and fencing generally is in an advanced state along, the remainder of the section. Considerable draining has been done, and a stream-diversion at 15 m. 40-6 ch. has been completed. This section is fully manned as far as earthworks are concerned, and the formation is completed to 14 m. with the exception of a small amount of widening on the Tuapiro bank. Six cuttings have been completed, and seven others are being excavated. Some fillings along this section —particularly the one at 15 m. 45 ch. —are causing trouble through settlement. Culverting-work completed during the year consisted of four 12 in., two 18 in., four 24 in., and one double 48 in. pipe culverts, one 4 ft. box culvert, and one 6 ft. concrete culvert, while another 6 ft. concrete culvert is being constructed. A 4 ft. water-drive was excavated and lined at 14 m. 71 ch. Piles have been driven for a reinforcedconcrete flat-top bridge at 10 m. 61 ch., and a bridge consisting of two 50 it. and four 30 ft. spans on concrete piers supported on reinforced-concrete piles has been erected over Tuapiro Stream. The girders were fabricated at the Department's workshop at Mount Maunganui, shipped to the site, and lifted into position. Timber piers of subway bridge at 14 m. 71 ch. have been erected, and pile-driving on Tahawai Bridge is in progress. Excavation and concreting of foundations for overbridges at 15 m. -38-15 ch. and 16 m. 6-50 ch. is, in hand. A road-diversion at 14 m. 71-40 ch. has been completed, and approach roads for a deviation of the main highway at Katikati Railway-station are nearing completion. Platelaying has been completed to 12 m. 5 ch., and trimming of formation to 14 m. The second lift of ballast is completed to 11 m. 65 ch., and metal has been spread for the third lift. Stock-yards are being constructed at Tahawai Station, and a contract has been let for buildings required at that station. An additional platelayer's cottage has been erected at Katikati, and electric light installed in the three cottages which were erected previously. A passenger and goods service has been run as far as the railhead at Tuapiro Stream, and will be extended shortly approximately 3m. along the line to Tahawai Station. Work on this section as far as 14 m. is being undertaken by the Department with its own staff, but the work beyond that point is included in the contract let to Sir W. G. Armstrong, Whitworth, and Co. Aomjatete Section (16 m. 28 ch. to 21m. 5 ch. ; length, 4m. 57 ch.).- Work on this section is being carried out under contract by Sir W. G. Armstrong, Whitworth, and Co. Clearing is finished, and most of the fencing has been erected. Good progress is being made with the earthwork, and eleven cuttings are finished. The majority of the banks have been completed except at bridges, but most of them will require widening. Four road-diversions have been formed and one metalled, and the construction of two others is in progress. Three 3 ft., two 4 ft., two 6 ft., and one 10 ft. culverts

38