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The construction of the Wairoa Exchange is expected to be completed shortly. The establishment of proposed exchanges at Alfredton, Opunake, and Waipukurau will be put in hand immediately. Metallic Circuits. Additional metallic-circuit telephone trunk wires have been established between Featherston and Greytown North, Palmerston North and Rongoiea, Palmerston North and Longburn, and Gisborne and Te Karaka. It is proposed to superimpose a Morse circuit on the two circuits last mentioned. Metallic circuits have also been provided by looping a telegraph-wire with a telephone trunk wire between the following offices: Feilding and Kimbolton, New Plymouth and Waitara, New Plymouth and Inglewood, Inglewood and Stratford, Stratford and Eltham, Hawera and Patea, Patea and Waverley, Waverley and Wanganui, Marton and Bull's, Martinborough and Featherston, Napier and Pohui. Morse circuits are superimposed on these sections. Condenser metallic circuits have been established between Wellington and Palmerston North, and between Waipawa and Napier, with Hastings intermediate, two telegraph-wires being used in each case. These circuits are working satisfactorily. Nelson District. Construction. The following new lines and wires have been erected during the year: — Poles. Wire. M. eh. M. eh. Twelve-mile Landing ... ... ... ... 0 4 Progress Junction ... ... ... ... ... 172 172 Forsyth Bay ... ... ... .. ... ... 10 0 10 0 Puponga ... ... ... ... ... ... 10 10 Greymouth to Stillwater (metallic circuit) ... ... 20 53 Stillwater to Moana (metallic circuit) ... ... 28 0 Westport to Granity (metallic circuit) ... ... 180 Westport to Burnett's Face (metallic circuit) ... 15 0 Moana to Rotomana (metallic circuit) ... ... ... 040 14 60 Little Wanganui Ferry... .. ... ... 0 3 Tapawera ... ... ... ... ... " 01 Totara Flat (loop) ... ... ... ... 0 65 Waimea West ... ... ... ... ... ... 2 40 2 40 Korere ... ... ... .... ... ... 7 30 7 30 Blenheim to Picton (trunk line) ... ... .. 18 0 Picton to Mahakipawa .. ... ... ... 12 0 Blind River extension ... ... ... ... ... 1 73 1 73 25 15 152 1 The line from Okarito to Bruce Bay has been constructed as far as the Waiho Gorge. There are 1,019 miles 66 chains of line and 2j940 miles 49 chains of wire maintained in this district. Maintenance. The following sections have been overhauled and strengthened during the year: Ahaura to Reef ton, Reefton to Inangahua Junction, and Inangahua Junction to within 3 miles of Lyell. The Kaikoura-Clarence Bridge section has been cleared of scrub, and a deviation of the line made on the whole Kaikoura.section in several places to clear heavy slips. The Okarito—Ross section suffered very much from bad weather and lightning. This section needs overhauling and will receive attention. The Greymouth-Kumara section and the Mokihinui section at Westport have had the angles strengthened, and the sections have been cleared of undergrowth. A loop has been put in at Totara Flat and the office there converted into a Morse station, thus relieving the telephone circuit. An overhaul of the Collingwood-Farewell Spit line and its branches is required, and will shortly be put in hand. The lines generally have been very free from interruptions during the year, and have received careful inspection. At Hokitika it was found necessary to erect a number of large poles, owing to alterations to the approaches of the railway bridge. Offices. During the year 11 new offices have been opened, making a total of 169 for the district, of which 25 are Morse and 144 are telephone stations. The offices at Flaxbourne, Pakawau, and Stoke have been removed to other premises, and several other offices have been refitted. The office building at Greymouth was moved back to make room for the erection of a new building. The conduct of business was not thereby interrupted. New post and telegraph buildings are in course of erection at Greymouth and Nelson.

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