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students of the day and evening classes; also some twenty-four scholarships to pupils of the State schools. Arts and Crafts Guild: An important feature of the year was the institution of the Guild of Arts and Crafts, the objects of the Guild being to assist in cultivating amongst art and craft students a friendly and social spirit. Meetings were held each month, at which lectures and demonstrations were given, followed by criticism of members' work. A great variety of subjects were treated, and many valuable criticisms given by well-known artists and craftsmen. As an outcome of the Guild's influence may be mentioned the scheme for the decoration of a " hall " now in the International Exhibition. This really fine piece of work was the combined effort of the design, painters and decorators, cabinetmaking, carpentry, wood-carving, and repousse classes. These classes were brought together by the influence of the Guild to discuss the advisability of executing a combined piece of work, and the corner settle, with its collection of repousse articles, and the wall scheme was the outcome. Mr. Sidney Thompson was appointed instructor in drawing and painting from life at the beginning of the year. Towards the end of the year it was decided by the Board to appoint an expert in metal-work, enamelling, and the relief crafts, with the result that Mr. F. G. Gurnsey, of London, was chosen for the position. It was also found necessary to make a change in the architectural department. Applications were invited for the position of lecturer in architecture and instructor in building-construction. Mr. H. L. White, late of Gloucester, was appointed. The usual examinations were held at the end of the year; certificates and prizes were granted to successful candidates. Thanks are due to Messrs. Gibb. \V. Sey, A. H. Fielder, and Whitcombe and Tombs for special prizes for painting, decorators' work, architecture, and design. R. Hbrdman-Smith, Director. Statement of Receipts and Expenditure for the Year ending 31st December, 1906. Receipts. t s. d. Expenditure. £ s. d. Students' fees .. .. .. 707 3 0 Balance at Ist January, 1906 .. .. 173 7 2 Government grant for technical classes .. 556 18 6 Salaries .. .. .. .. 1,200 11 11 Government grant for apparatus and material 43 14 2 Subsidies to life classes .. .. .. 49 0 0 Contribution from Museum, Library, and Insurance .. .. .. .. 4 7 0 School of Technical Scionce Endowment 500 0 0 Contribution toviards expenses of Registrar's Interest .. .. .. .. .. 024 office .. .. .. .. 40 0 0 Gas .. .. .. .. .. 50 4 6 Repairs .. .. .. .. 9 17 6 Advertising .. .. .. .. 46 10 5 Printing, stationery, &c. .. .. 36 8 7 Fuel .. .. .. .. .. 10 11 H General expenses .. .. .. 28 17 'J, Apparatus .. .. .. .. 30 3 11 Examiners' fees .. .. .. .. 2 2 0 Books for school library .. .. .. 9 3 7 Expenses connected with appointment of Director .. .. .. .. 28 4 1 Painting exterior of buildings and distempering rooms .. .. .. .. 35 13 4 Material for painters'class .. .. 3 11 3 Exhibit, New Zealand International Exhibition .. .. 9 17 10 Balance .. .. .. .. 33 6 6 £1,807 18 0 £1,807 18 0 School of Engineering. As far as the school is concerned, the year has been notable for the number of satisfactory positions obtained by students, and the exceedingly good reports received from those for whom they are working. These positions number fifteen, and the salaries paid aggregate over £3,000. With the exception of two all are in the colony, a fact which should go far towards correcting the impression that there is no opening for the youug engineer in New Zealand. The appointments obtained range from that of engineer and manager of one of the principal gasworks in the colony to those of draftsmen in the offices of local firms and public bodies, and also include those of resident and assistant engineers. A lecturer in electricity and electrical engineering was provided for the Thames School of Mines, a lecturer in electricity for the technical classes at Oamaru and Timaru, and an instructor in drawing for the Christchurch Technical Classes. Attendance. —A hundred and sixty students attended lectures during the year, the hour attendances per week amounting to 1,231. Thirty-five students took the full courses for the University degree or for the associateship of the school, and seven College students attended lectures in electricity and magnetism. There was a slight falling-off in the total number of attendances as compared with the previous year, which is more than accounted for by—(l) The unusually large number of students who completed their courses at the end of 1905; (2) the competition of correspondence schools, and the establishment of technical schools in Christchurch and other centres (the existence of the latter renders it no longer necessary for lads from other towns to lie apprenticed in Christchurch in order that they may obtain evening instruction in drawing and elementary applied science); (3) the fact that numerous apprentices were working overtime in connection with the Exhibition, and therefore unable to attend lectures : (4) the change in the University regulations, which now provide that a student must take a preliminary year in an affiliated college before entering the School of Engineering. The effect of this regulation has been to temporarily divert the supply of men taking a University course. There are, however, indications that a considerable influx of matriculated students may be shortly expected ; whilst, if a system of scholarships is inaugurated by which the best students of local technical schools are enabled to pass on to a course of instruction here, these schools will become feeders to this establish-

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