Heritabilities and genetic and phenotypic correlations among 14 linear type traits were estimated from Holstein Association data by multiple trait REML. Data used for parameter estimation were records of 779,391 daughters of 871 sires included in the January 1988 sire evaluation. Each daughter was represented by her appraisal closest to 30 mo of age. Highest heritability was .37 for stature, and lowest was .10 for foot angle. Gains in reliability from using correlated traits in multiple trait prediction were large for some traits (up to 60% for foot angle for cows). Final score variance parameters were estimated from 953,596 records, which were 43% of records included in the national sire evaluation. Sire models that adjusted or did not adjust for merit of mates were compared. Heritability of final score was .27 with adjustment for merit of mates by subtraction of predicted transmitting ability of dam from daughter's record compared with .29 if mate was ignored. Evaluations for type for several popular older sires were reduced moderately by adjustment for merit of mates, but estimated genetic trend increased slightly. An improved genetic grouping procedure that considers group effects as inherited was adapted for use in sire models. Parameter estimates and models presented were implemented by the Holstein Association for computing July 1988 genetic evaluations for linear traits and final score.