The Lotus Group shows a gain of 18 per cent., as compared with 1897, and Lodge meetings a gain of 29 per cent. The attendance of visitors at the Library increased 16 per cent., and of members at meetings of Pacific Coast Committee for Universal Brotherhood 98 per cent. The especial attention of members is called to the Ethical Class and Secret Doctrine Class as being the most important local channels for the acquirement of a knowledge of ethics and philosophy. The Ethical Class shows a gain of 35 per cent., and the Secret Doctrine Class 33 per cent. for the year. The work at San Quentin Penitentiary was resumed in August, under the direction of H. H. Somers, after a suspension of more than a year. Lectures are given monthly, and the chapel is always filled with listeners. A private meeting of U. B. L. No. 7 was instituted in October, two meetings being held each month. Beginning with January this meeting will be held regularly every Thursday evening, and is expected to accomplish much good by way of bringing members into closer sympathy with each other. Your secretary’s annual report one year ago showed that 1897 had been the most prosperous year in the history of the movement in this city. By the present report it is seen that 1898 far surpasses the previous year, and this in the face of financial distress and general unrest. The prediction is ventured that 1899 will bring a still greater need of success, for it is the beginning of a California cycle. In 1849 the name of California was emblazoned before the world. The closing year marks the passing of the seventh septenate of the cycle, and 1899 will usher in the new cycle which is to bring California again before the notice of the world, but this time as the depository of spiritual gold. This report would be incomplete without reference to the Chicago Convention, held on February 18, 1898, at which time the Universal Brotherhood, or the Brotherhood of Humanity, was promulgated under the leadership of Mrs. Katherine A. Tingley, and of which the Theosophical Society in America and the International Brotherhood League became integral parts. San Francisco Branch at once transformed itself into a Lodge of Universal Brotherhood, becoming Lodge 7—the mystic number—and the results of the year are ample justification of the action taken.