The paper is limited to the application of hydraulic power to lathes designed for shell making although, in the author's opinion, there is an immense field for the application of the same principles in other directions. Self-contained hydraulic machine tools have been dealt with by Mr. H. C. Town,† but in the system to be described all the machines are operated from a central hydraulic plant. Three complete installations on this principle have been established by the author, and the present paper contains an account of this work from the first experiments in 1915 until about four years ago. The first plant was constructed in 1915 for the production of 3·29-inch shells, known as “18-pounders”, from the solid bar. The output was 2,000 shells per week of 135 hours, with girl operators working on three shifts. The second plant was put down in 1916–17 for an output of 500 9·2-inch howitzer shells per week of 135 hours, also with girls working on three shifts. The third plant is of recent design. It was started in 1938 for the production of 3·45-inch shells, known as “25-pounders”; and was laid out for an output of 1,000 shells per week of 47 hours. This plant included four types of hydraulic lathes which the author was engaged to design for the War Office. Soon after the commencement of the last war in 1914 it became evident that shell production would have to be greatly increased, and engineering firms were pressed to take up shell manufacture. The author, on behalf of his firm, undertook to help in the movement, and he at once set about the construction of some simple machines for the job. These conformed on general lines to the practice of the period as regards design and operation. He soon realized, however, that drastic changes would have to be made if production was to reach the high level that circumstances demanded. Although quite familiar with hydraulic machinery of various types and of many applications in presses and certain types of heavy tools, he was not aware of any instance in which hydraulic power had been applied to the movements of a lathe. It appeared to him, nevertheless, that it would be possible to construct a very useful machine on these lines, and he accordingly started immediately to carry out experiments and to prepare designs. It was considered essential that machines for the duty which the author had in mind should be much heavier and more rigid than the ordinary machines of the time, so that they should be free from vibration and “chatter” or spring with the heaviest possible cutting. The standard of rigidity aimed at was that which would permit a half-crown coin to remain balanced on edge on the moving saddle or turret while the tools were making the heaviest cuts. This object was achieved, and the demonstration was frequently made in the presence of those who came to see the lathes at work.