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Fish-hatching is carried on now under a divided and confusing system namely, somewhat erratic efforts by the various local societies, and some hatching operations carried on by the Tourist and Marine Departments. The work of importing and hatching fish under the .Marine Department is doing at present only a fraction of the work, not altogether ineffectively, which could be done with greater advantage and with immensely greater results under a central and uniform system of Dominion fishculture. The hatching of sea-fish would come under a Dominion scheme. While it must be admitted that the Portobello Marine Hatchery has been doing splendid work, and accomplishing some remarkable results in the acclimatization of such fish as the turbot. the lobster. Arc., the operations are too limited to be of great benefit to the fisheries. Such an institution would come under the scheme which I suggest, as also would a proposed marine hatchery for the North Island. At very little expense the hatching and rearing accommodation could be extended fifty-fold, and the culture of valuable marine fishes carried on for the purpose of benefiting the inshore waters by way of increasing the fiat fishes and other species on a large scale. The culture of mullet, though not without difficulty, could be included. The mullet is a highly esteemed fish, and there have been several mullet-tinning factories operated. 1 understand, however, that in some localities the supply of this fish has considerably fallen off. On the other hand, I was informed by a reliable authority that immense quantities of mullet still frequent the west coast of the North Island and some of the shores north of the Bay of Islands. It might, I think, be advisable to try some experimental hatching of this fish by procuring spawn when the fish approach the shores for breeding purposes. The depleted areas could then be restocked by this highly desirable fish. The Transportation of Ecus ami Young Fi.su. The present annual shipments of eggs and young lish to various localities from central hatching establishments seem to me to be capable of considerable improvement. With a small staff' and with the lack of a general Government scheme great dangers are incurred when valuable eggs and fry are sent long distances. In Canada no shipments of salmon, trout, or other fish eggs are made unless accompanied by a qualified officer. Such shipments are regarded as of great value and importance. and worth every protective measure when in transit by rail or steamer. It is impossible in New Zealand under the present system, or lack of system, to have this always done, and serious results, in my opinion, often arise from rough and improper treatment of the shipments of eggs and fish en route from one hatchery to another. They are subjected at times to the roughest handling, and are often turned upside down ill spite of large official labels. " Handle with great care," and '" Keep this side nil." They may be placed near odorous oil. or casks of dangerous materials, or close to stoves or hot pipes, often with the risk of fatal results, and not infrequently they are unnecessarily delayed. In one case which came to my notice a case of valuable trout-eggs was turned up on end and used for some time as a desk by a wharf tally-clerk. Four cases had been shipped, but only three arrived at their destination, the missing case being subsequently discovered doing service as a desk, as stated above. In other cases, eggs directed to be sent by rapid Steamer were found to have been forwarded by slow freight-boats. With a proper staff under a Dominion Fish-culture Branch a trustworthy and qualified official would attend such shipments, and thus avoid the dangers which at present attend eggs in transit eggs which, after many months of care and labour, are ruined at the last stage by rough handling en route, and the efforts of hatchery officers thereby nullified and practically thrown away. I am also convinced thai many of the parties who plant the fish, under the present system, or lack of system, do not take the precautions which qualified officials would take. Sudden changes from the water of the hatchery-tanks or of the transportation-cans into lakes or rivers several degrees colder or warmer are generally fatal. 1 have been asked on many occasions why no results followed the planting, year after year, of quantities of fish, and in numerous cases the answer must be that the cans of fish were planted with such lack of knowledge and absence of necessary precaution as to render any good results impossible. Injuries in- River-pollution. Many fine rivers, suCh as the Taieri, with fine banks, splendid scenery, and perfect augling-pools, have been utterly ruined by gold-mining pollution. Apparently there is no cure for this, but while New Zealand cannot help the loss of such fine fishing-waters, there are a number of rivers into which pollution is being poured where steps should be taken to prevent it. There are a few eases of sawdust pollution which should be most rigorously dealt with. There is no reason why sawdust or mill-refuse should be poured into any streams suitable for fish, especially as sawdust and such refuse can be now utilized as indicated in another portion of my report. The use of cyanide of potassium in quartz gold-mining, which is likely to largely increase in the future, is also a source of great danger to fish and all aquatic life, owing to the deadly effect of this cyanide on such life. The most effective steps should be insisted upon in order to prevent this waste going directly into public waters. In North America such mining operations have in every case been permitted only on the condition that the cyanide pollution is conveyed over certain waste areas where by a natural system of filtration it ultimately reaches the rivers or streams deprived of its most serious poisonous qualities. That sawdust and mining pollution has been effectively dealt with in other countries is a proof that stringent measures would be successful in New Zealand. Waste Fishery Products. I have observed that in New Zealand practically none of the waste products resulting from the fish industry are utilized, and the surplus catches of fish which are not marketed are usually consigned to the sea or to municipal destructors. Most valuable commercial products can be made of such