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 the station. We are in Dunedin. Hey! for the comforts and luxuries of the Grand Hotel; and, as we are very tired, we hurry off to bed. Dunedin is worthy of a chapter to itself, and we will not pause now, but continue our trip to the lakes, and return to Dunedin later on.

Leaving the straggling station, the city opens out towards the sea, at Ocean Beach. A great flat of reclaimed land is here being rapidly built upon, and at Caversham there are many good shops, and nice houses.

Forbury Fort, one of the new defences, is rapidly approaching completion, and will protect the city from any bombardment by a hostile cruiser seaward. Above the fort the most prominent landmark is the stately mansion of Mr. E. B. Cargill, whose father was one of the pioneers of Otago, and founders of Dunedin. A monument to his memory graces the great space in the centre of the city. We dash rapidly, with a shrill scream from the engine, through a long tunnel, and on the farther side come in view of the numerous buildings of the New Zealand Drug and Chemical Works. The country around consists of open grassy downs, and at the foot of a high conical wooded hill nestles the neat little village of Burnside. It is a typical Otago village. There is a very pretty church, a large tannery, a fellmongery, a wool mill, with its long flume or water-race on high trestles, carrying water to the noisy, sparkling wheel. All the valleys