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wherever sand has been laid, it must be replaced by proper material. For the completion of the ballasting abundance of material is to be had at excavation No. 4, and northward.

PERMANENT WAY.

Permanent Way has been laid on these contracts at the following places:— Embankments Nos. 5 and 1, excavations 5 and 1, and at Invercargill station and Mokomoko Branch, in all a distance of 5½ miles, being considerably more than one third of the whole.

The remaining works necessary for the completion of the Bluff Harbour and Invercargill Railway are, portions of slopes of cuttings and embankments, and line of formation to be dressed, completion of level crossings, completion of protection of sea face of embankment No. 1. A small amount of siding accommodation at Bluff and Invercargill stations, erection of turnplates, and pumps for supply of the locomotives. None of these works need cause any delay as they can all be completed as quickly as the remainder of the permanent way. Invercargill station buildings have been completed, the whole of the plant and rolling stock has been delivered, the locomotive engines, carriages and wagons are being put together, and may in a very few weeks be in condition for traffic.

GREAT NORTHERN RAILWAY.

The works of this line, which are being executed under contract with Mr. Davies, are in an advanced stage of construction.

From end to end the excavations have been taken down to the formation level, so that everywhere the ballast and permanent way may be laid without interruption. The earthwork in excavation still remaining to be done, consists of material to be removed from the slopes of cuttings at Waikivi, Makarewa, and some moderate portions to the northward.

These, on the portion of the line south of the Makerewa River, can, without interruption to the traffic, be removed after the opening of the first eleven miles, which is proposed to be made in the course of the present month.

The embankments at Waikivi and Makarewa Bush have been raised to the full height. Some little widening out is still required, and there is in both of these embankments — where recently formed — some indication of slipping in the slopes; these will require attention till properly consolidated.

On the parts of the line to the northward of Makarewa, some little filling in at the Junction of embankments with the bridges, is required, but the quantity is quite unimportant.

The above, along with the excavation or embankment for private crossings, constitute the whole of the earthworks to be completed on the line, and may, with ordinary exertion, be completed in a few weeks.

All of the bridges and culverts have been completed, excepting the deck planking of the former.

The fencing, where necessary, has with some not important exceptions, been erected.

Two miles of ballasting have been laid immediately to the northward of Invercargill station; thence to Makarewa, a distance of about five miles, ballasting is in progress at different points. In the neighbourhood of Winton a large proportion of the ballast has been laid for a distance of nearly two miles. The sand, where used for ballast at the south end of the line will have to be replaced by proper material. Towards Winton the ballast is of good quality.

Permanent way has been laid for a distance of six and a half miles from Invercargill, and is being rapidly continued northward. The total length of eleven miles, necessary for the partial opening, will be laid in the course of the present month.

LEVEL CROSSINGS.

The earthwork of the public crossings has been completed. Some additional fencing and finishing will be required at the Riverton road, and several other points.

Some of the private crossings have not been formed; several of these may perhaps be allowed to stand over till the occupation of the adjoining lands renders their completion necessary.

One of the locomotive engines is in working order, the arrival of the second is expected daily. There is a sufficient supply of carriages and waggons ready for the commencement of traffic of the first eleven miles to Ryal Bush.

The works on the northern part of the