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work is done. The Fushun line, having originally only been laid down for temporary use, required absolute relaying.

The work of making embankments, bridges, and earthworks generally commenced in the middle of August, the line for this purpose being divided into three sections.

With the receipt of the 5 m. 14 ch. south of Kwangchengtzu the work of converting the existing track to narrow gauge was taken in hand at once. A temporary station of Changchun (Hsi-Kwancheugtzu) was established at the same time at a point on the line 437 m. 17 ch. distant from Dairen, while a branch line was laid to the town of Changchun proper from a point on the line distant 435 m. 2 ch. from Dairen. The earthworks, &c., on this particular part are finished, and part of the new track has been laid.

In the meanwhile, at Dairen itself arrangements were being made for laying down broad-gauge trucks for the reception of the newly-arriving locomotives and cars. In addition, sheds were erected for their storage not only at Dairen, but also at Liaoyang and Tichling. Work in connection with the installation of new signal boxes, &c., was also started at all stations, and alterations made in the latter according to their relative importance.

Mulden-Antung Line.--Alterations were made in nine stations and temporary platforms were in places lengthened.

Locomotives and Cars.

The following are the details of the locomotives and cars put together during the period under review :—

Classification. Broad Gauge, Narrow Gauge, Total Locomotives 8 8 Gondola cars.. 181 181 Flat cars 21 21 Caboose cars 5 5 Total 218 10 Special passenger cars 6 6 2nd class cars A 3rd class cars Goods cars 25 25 Grand total 248 5

Harbours, Bays, &c.

The survey of the harbour of Dairen was started on the 29th June, 1907, the total area under consideration being 8,200 yards by 1,500 yards.

Of this 6,600 yards by 1,500 yards are completed.

For purposes of examination of the sea bottom, the area between the wharf inside the breakwater and the Chinese town was divided into 100 sections approximately. Work was started in July, and on forty sections has been concluded.

Wharves, &c.

Repairs have been made in the sea wall of the Dairen wharf, fenders placed for the protection of ships, and the rail tracks for the transportation of merchandize increased. When the Company came into possession nine sheds were taken over, three new ones, covering an area of 1,064 "tsubo," have been built, and still five are in course of construction.

Workshops.

Workshops have been established at Dairen, Liaoyang, Kunshuling, and at Antung. The one at Dairen attends to shipping repairs, and takes outside orders in addition to the regular railway work.

Under this heading the most noteworthy features are the erection of a new shop at Dairen, and the enlargement of that at Liaoyang by 273 "tsubo." A new carpenter's shop has also been built at the latter place, while at Kunshuling there is a new forge covering 123 "tsubo."

Hotels.

At Dairen the most suitable building for the purpose among those in our possession was converted into an hotel, and opened to business on the 1st August. Besides this, hotels are either in course of erection or under consideration at Port Arthur, Changchun, and Mukden.

Buildings.

About 5,000 buildings, covering an area of 220,000 "tsubo," came into possession of the Company with the railway. Repairs and additions for office purposes, and for quarters for the employés of the railway, were everywhere necessary.

The following are the chief items of repairs or alterations :--

Offices repaired 53 enlarged 8 (150 "tsubo") Quarters repaired 441 Annexes enlarged 56 (264 "tsubo")

Electric Enterprises.

The number of poles for communication purposes taken over by the Company on the main line was 5,974, on the branch lines 1,020, with 2,181 miles of wires laid and 283 installations in existence.

In Dairen the Company also took over an electric light plant with its accessories. The following shows the principal items of work done under this heading during the period under review :-

1. Repairing of telephone call offices.

2. 1,814 poles were erected between Suchiatun and Hsienchinchai (34 m. 10 ch.).

3. The work of laying new wires between Tiehling and Szupingchieh (72 m. 72 ch.) and Szupingchieh and Menchiatun (66 m. 18 ch.) was taken in hand, 1,398 poles being erected. In addition, 482 miles of wire were laid along the main line in various localities and installations placed at sixty-three localities. Surveys were also completed over 183 miles.

Finally, arrangements have been made for the supply of electric light in Dairen.

Repairs have also been made at the main office at Dairen, as well as at stations along the line as far as Tashichiao.

Local Enterprises.

In addition to the changes referred to in the Settlers' Assemblies, mentioned in the opening remarks of the President of the Company, surveys have been made at Changchun, Kunshuling, Tiehling, Liaoyang, Tashichiao, Wanchienling, Wafangtien, and Dairen.

At the latter place repairs to roads, drains, &c., have been executed.

An hospital has been opened at Dairen, with a branch at Hsienchinchai and agencies at Wafangtien, Tashichiao, Liaoyang, Mukden, Tiehling, Kunshuling, Antung, and Tsaohokou. There are also nursing stations at Shichiaotzu and Chikwauchan. Suitable precautions have been likewise taken in matters relating to sanitation.

Schools.

Suitable assistance has been rendered to the Settlers' Assemblies at Wafangtien and Liaoyang, with the result that elementary schools have been opened at those two places. Further developments in this direction may be expected.

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