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Male and female cadets have been appointed, and are being trained in all the branches of a skilled attendant's duties. In this way I hope eventually to see our own school of massage and physical treatment recognised as the hall-mark of a skilled attendant throughout Australasia. The Old Baths. —The question of the future of these baths yet remains. There will always be a large number of people requiring "free or nearly free treatment, and I would suggest keeping open the majority of the old baths for so many hours a day to meet the demands of this class. An altogether exaggerated idea has got about in regard to the charges that will be made at the new baths, and I would suggest that it would be advisable to make as little increase as is possible in the cost of treatment. Statistics. Receipts for Year ending 31st March. 1907. 1906. Sanatorium fees ... ... ... ... ... 892 5 6 1,014 2 4 Out-patients'fees ... ... ... ... ... 748 16 0 '673 17 0 Bath fees 2,614 8 6 2,513 1 8 Mineral water ... ... ... ... ... 216 16 0 18118 4 Massage and electrical treatment ... ... ... 219 5 9 276 11 6 Players'fees ... ... ... ... ... 137 8 3 120 12 6 Miscellaneous receipts ... ... ... ... 7 6 0 3 18 10 Total ... ... ... ... £4,836 6 0 £4,784 2 2 Total Number of Baths and Special Treatments. Value. _~ , Number. £ p. d. Paid for ... ... ... ... 82,700 3,050 10 3 Sanatorium ... ... ... ... 9,677 696 16 3 Free out-patients ... ... ... 1,635 88 7 3 Total ... ... ... 94,012 3,835 14 0 Correspondence. New Zealand. Foreign. Number of letters received ... ... ... ... 960 20 „ telegrams received ... ... ... 464 „ letters despatched ... ... ... 1,872 45 „ telegrams despatched ... ... ... 276 I have, &c, Arthur S. Wohlmann, Balneologist. APPENDIX 111. REPORT OF ENGINEER IN CHARGE, ROTORUA. Department of Tourist and Health Resorts, Rotorua, 7th May, 1907. The General Manager, Department of Tourist and Health Resorts, Wellington. Sir, — I beg to submit herewith my annual report for the past financial year : •Electric-supply System. The supply of electricity has been maintained satisfactorily throughout the year, no stoppage having occurred. The turbines and generators have been thoroughly overhauled, and are now in better condition than they have been for years past. The sides of the flume have been raised some 30 in. enabling advantage to be taken of the extra head at high water, and thus increasing the 3—H. 2.