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to Dunedin, where 61 classes were carried on. Of these classes 15 were for continuation subjects, 21 for commercial subjects, and 25 for technical subjects, the number of technical classes thus again showing an increase. Altogether 828 individual pupils enrolled. In accordance with the regulations for manual and technical instruction free places were granted to 229 pupils. Of these, 9 did not even enter on their course, 5 attended only a few times, and 4 others failed to attend the minimum number of times required to qualify for continuance of the privilege. But, with regard to the 211 holders that did qualify, lam pleased to be able to state that the improvement noted last year was much more pronounced during the year just ended. Indeed, the work of these students was consistently marked by energy, industry, and ability, and is certainly worthy of commendation. The means of instruction provided by the Association for students of this class alone may now be regarded as one of the leading features of our work, and a sufficient recompense to the public for the support so liberally accorded our institution in the past. By subdivision of the larger classes a good working classification of the pupils has now been obtained. Special divisions were formed for those entering at mid-session, and altogether the arrangement worked most satisfactorily. The examiners express appreciation of the efforts made to maintain the standard of the work, and the Association is fortunate in having as instructors of these classes six headmasters and several assistants from the public schools. Commercial correspondence and office routine was attended by 73 students, book-keeping by 94, typewriting by 119, shorthand by 123, and commercial arithmetic by 319. The class for commercial law was this j-ear allowed to lapse. Many of the pupils attending these classes are engaged in commercial work during the day, and are endeavouring to become more proficient and hence better qualified for promotion. And more particularly in commercial work does increased efficiency obtain immediate recognition. Doubtless this is one of the reasons of the popularity of these classes. On the other hand many young people, before seeking office employment, attend our commercial classes for the purpose of qualifying and of obtaining certificates that will be of service to them in obtaining their first situations. Our examiners, therefore, exercise great care, and the standard of pass demanded is undoubtedly high. Consequently the Association's certificate for such subjects, say, as speed shorthand and book-keeping are regarded by commercial men as strong recommendations. The stringency of the examination tests, it should he added, partly accounts for the relatively short pass list. A fair proportion of the students of this section seem to be deficient in ability or application, and it of necessity follows that they make little progress. Against this is set the fact that the teachers of this branch of the work are active practical commercial men of acknowledged ability, who seem to find pleasure in serving the Association. With the introduction of the new furniture, of which the purchase is now authorised, our provision for training in commercial subjects will be complete. The students of the physics class, influenced, doubtless, by the enthusiasm of their teacher, were all earnest workers. The change of quarters, through the removal of the old laboratory and the dearth of suitable appliances, led to a reduction in the amount of expeiimental demonstration and individual practical work. The defects referred to are now, of course, in a fair way to be remedied. To suit the convenience of pharmacy students a class in chemistry was held on Wednesday afternoons, but towards the end of the session the attendance thereat fell away, and the class was closed. Although, unfortunately, the alterations in building necessitated the curtailment of the practical work, the evening class for the same subject was, as hitherto, a large and thoroughly successful one. An afternoon class for botany attracted only eight students, and one advantage of the smallness of the class was the opportunity for individual teaching which was afforded. Under these circumstances, and also owing to the removal of the teacher from Dunedin, the formation of the usual botany class was not attempted. During the second quarter, however, the two classes for horticulture were held, and although one of these was beyond the size recognised as suitable for efficient teaching, good and enjoyable work was done. Lectures and demonstrations were taken at the school in the evenings, and further demonstration and exemplification at the Botanical Gardens on Saturday afternoons. The students who attend for painter's work are fortunate in that their numbers permit of each getting a good deal of individual attention from the teacher. This year the principles and practice in graining and sign-writing was the ground covered. Eight panels, done by students in their first session, were sent forward to the Exhibition. Our class for tailor's cutting and fitting offers facilities that cannot be overestimated by those in the trade desirous of learning this branch. The course being a three-year one, a new class is formed only every third year, and students who show no special aptitude quickly drop out. One of the causes of weakness is neglect of a preliminary course in freehand drawing. The class for practical mathematics, originally formed in the interests of our students of mechanical engineering, electrical engineering, carpentry, and plumbing, is now a recognised part of the course for some of these branches. The value of training given has been affected by the frequent changes of teachers of the subject. The present teacher hopes to remain with us for some years, and I therefore anticipate more beneficial work. Plumbing was again well attended, and students of the subject having in former years evinced a tendency to shirk the drawing and calculation of the theory class, the course was this year so arranged that pupils of the practical class were compelled to attend for instruction in theory. For mechanical engineering a sufficient number of students attended to form two good classes, and here, also, the position was forced, the students who had not previously done so being compelled to attend for instruction in practical mathematics. If arrangements could be made with the Education Board'it would be well to extend the compulsion to the mechanical drawing and machine-construction required for this subject. lamat a loss to account for the neglect of the carpentry class by apprentices of the trade. The room is up to date and well equipped, while the ability of the teacher is recognised. Yet an average of some seven or eight pupils is all that such a class commands. The wood-carving classes were increased to three, with the result that the