Meter-house.—The meter-house and valve-room is the best-arranged part (internally) of all the present arrangements. In the block plan I retain it as a meter-house, but propose that ultimately the inlet and outlet valves-room be shifted to the centre of the gasholder site, which will minimise the quantity of piping requisite to connect the gasholders. Uasholders.—The gasholders are scarcely sufficient for present maximum wants. The maximum storage

and maximum day's consumption are nearly equal — ench amounting .to auosit. HoOifiOpft. tit ; i3 usual to .allow, a.. storage of on'i. i'ni p.-I^K day's ■■maximum make, so that- the miniiniiit; storage ought- to ;be about sOu,Ooott. It.: is inot necessary lor'the-present to entertain this ques tion • but as by the terms of my instructions, I am expected to travel ova;..all the ground specilled,-I would remark that should tliero h%& large, increase in consumption it might ,te nectssaiH' to- erect a 12oft or-UOft telescope gasholder on the site I Imv'' indicated on tlie block plan. The plan I-show would also, necessitate the taking. down and the re erection of the : 80ft telescope gasholder. The columns are exceedingly weak—dangerously so—and' when re-erected, stiffer columns, to ensure its, stability during a gale, would have to be erected with it. The new plant required at present is— new condensers, engine-room, engines, pumps, and boilers. When these are completed, tlie question of a retort-house ought to be entertained without much lurther delay. The roof of the present new one is a very strong roof, and can, of course, he utilised for a new house, I cannot conclude this report without remarking that I think it unfortunate that part of tlie suburbs are supplied with gas by a company, which the Duuedin Corporation could have supplied at enormously less cost and with considerable profit to themselves. The profits made by the Dunediu das Department have sometimes been compared with those made by gas companies such, as tiiose ot Cliristcliureh,, Wellington, and Auckland, but previous to doing so it would be well to inquire whether the circumstances were precisely analagous. 