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The expedition had a much more successful season than on the previous year, the catch of whales yielding 32,165 barfels of oil equal to 1,286,000 gallons. During the off season the five whale-catchers have been anchored in Patterson Inlet, Stewart Island, except during the time occupied in overhaul work at Port Chalmers. The company is endeavouring to organize a second expedition consisting of one floating station and five catchers, but it is yet uncertain whether it will be ready in time for next season's work. Meteorological Branch. The sub-committee of the Science Committee of the New Zealand Institute has completed its investigation and has furnished its report. The Committee's recommendations are along the lines of reorganization of the branch in order to extend its value to the community. It is hoped that these recommendations will be put into effect shortly. Staff. I have to express my appreciation of the work of the Heads of various branches of the Department and of departmental officers generally. All have joined in a common effort to better general organization and individual performance of duty and so to enhance the Department's reputation for good service. To achieve this, however, nearly every responsible officer has had to go short of his annual leave : this partly by reason of extra work which inevitably arises out of progressive reorganization and partly by reason of the extraordinary amount of sickness which has occurred amongst the staff during the year. In past years the Marine Department has been in the unfortunate position of having been a " chopping block " between interests which conflict at every possible opportunity. Its responibilities, its many and various functions, and its difficulties have not been fully realized. It is very well to produce marked improvement in financial results. The more essential necessity, to my mind, is to construct and reconstruct so that inefficient officers, if they still exist, may be eliminated, and so to the end that those who remain or may be added, may do their work with thorough efficiency consciously building, as they work, respect for themselves and the Department and creating a departmental structure in which all its servants may take pride. It is due that special recognition should be given to our lighthouse service and to the Master and personnel of the lighthouse tender, the s.s. " Tutanekai." The service is one over which there can be little or no supervision. The best we can do is to carefully select the men, imbue them with a sense of their responsibility and entrust them to perform their duty faithfully at any cost. In no respect have they failed in their trust during the year. Prosecutions. During the year prosecutions for offences under and breaches of the various Acts administered by the Department were taken as follows : Fisheries Act, 77 ; Harbours Act, 2 ; Inspection of Machinery Act, 29 ; Shipping and Seamen Act, 26. Adjustment and Survey of "'the Compasses of Ships. The compasses of ships to which the Compass Regulations apply have been surveyed by the Department's Compass Inspectors at the various ports as occasion demanded, and the results show that the compasses of vessels are maintained in a good state of efficiency. The compasses of other ships in this Dominion which are not required by the Compass Regulations to have their compasses adjusted for survey purposes but which are required to carry an efficient compass in their equipment have in some cases been called upon by the Compass Inspectors to have their compasses adjusted owing to their being found inefficient. Close attention has been given to the compasses of the smaller class of ships which are employed within restricted limits, as it has boon found that in some cases the compasses of those ships are on occasions purposely removed as a precaution against them being pilfered or otherwise interfered with, and such removal impairs their efficiency. As a result of this it may bo found necessary to insist that the compasses of such ships shall always be kept in their proper positions. The adjusters of compasses, who are licensed as such by this Department and who are employed by masters and owuers of ships when necessary, have carried out the adjustment of ships' compasses in a satisfactory manner; and in some cases the masters of vessels,' when in possession of a foreigngoing master's certificate, have swung their own ships, and in a few cases they have adjusted their own compasses, as is al owed by the Compass Regulations. In some ships the work of the licensed adjusters of compasses is rendered difficult owing to insufficient consideration having been given to the necessity for providing for a suitable place in which to install a standard compass when a ship is built, and at times it is found that its nearness to masses of iron, often asymmetrical, is such as to render it difficult of adjustment without impairing its directive force. Similarly, this applies to ships which undergo much structural alteration and to ships which have become trading-ships by conversion, and in both of these latter cases it would appear to be necessary that designs of such structural alterations or conversions should be submitted for investigation for the purpose of ensuring that a suitable place for the standard compass is provided. The compasses of some ships of unusual construction, such as dredgers, ships which have been converted from one purpose for another, or ships which have undergone much structural alteration, require special investigation of their conditions in respect of the manner in which their compasses

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