When the date for Mr. Schuster’s retirement approached it was advisable to utilize the experience so far gained in reorganizing the Office. Professor Pearson and myself, in consultation with the authorities of the University of London, elaborated a scheme at the beginning of this year, which is a decided advance, and shows every sign of vitality and endurance. Mr. David Heron, a Mathematical Scholar of St. Andrew’s, is now a Research Fellow; Miss Ethel Elderton, who has done excellent and expert work from the beginning, is deservedly raised to the position of Research Scholar; and the partial services of a trained Computer have been secured. An event of the highest importance to the future of the Office is that Professor Karl Pearson has undertaken, at my urgent request, that general supervision of its work which advancing age and infirmities preclude me from giving. He will, I trust, treat it much as an _annexe_ to his adjacent biometric laboratory, for many studies in Eugenics might, with equal propriety, be carried on in either of them, and the same methods of precise analysis which are due to the mathematical skill and untiring energy of Professor Pearson are used in both. The Office now bears the name of the Eugenics Laboratory, and its temporary home is in 88 Gower Street. (It is now, 1909, housed in the University buildings.) The phrase ‘National Eugenics’ is defined as ‘the study of agencies under social control that may improve or impair the racial qualities of future generations, either physically or mentally.’ The Laboratory has already begun to publish memoirs on its own account, and I now rest satisfied in the belief that, with a fair share of good luck, this young Institution will prosper and grow into an important centre of research. APPLICATION OF THEORIES OF PROBABILITY TO EUGENICS.