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Seventy classes were held at Dunedin, and of these twenty were for continuation subjects, seventeen for commercial subjects, and thirty-three for technical subjects. The total number of individual pupils enrolled during the year was 966, being an increase of 138 on last year's enrolment figures, and eleven higher than any previous enrolment. Many pupils enter for two or more subjects, and the class attendances are therefore usually taken as the index of the extent of the work. The number of applications for free places under the departmental regulations was 357, compared with 229 last year, but twelve of this year's applicants did not enter on their free course, while another twelve failed to make the minimum number of attendances required to entitle them to the continuation of the privilege. Under the Association's own regulations students ineligible for these free places are, when circumstances seem to warrant it, granted partial or total remission of fees. The concession was this year made to thirty-one such young people. Compared with the previous year, more than double the number of students availed themselves of the afternoon classes. The country contributed largely to the increase, a total of sixty-seven day-scholars coming from the following mentioned places : Clinton, Kakapuaka, Romahapa, Balclutha, Kaitangata, Stirling, Lovell's Flat, Lawrence, Waitahuna, Milton, Clarendon, Milburn, Evans Flat, Henley, Moeraki, Dunback, Puketeraki, Flag Swamp. It will be necessary next year to make special arrangements to meet the requirements of the country- pupils. Referring now briefly to the subjects of instruction, 1 have to report that good work continues to be done in the group designated "continuation classes" —English and arithmetic in the above list—and pupils are at last beginning to realise that a thorough grounding in these forms an excellent foundation for and facilitates the study of the subjects in the commercial and the strictly technical courses. But the recognition of this fact is not by any means general, and this year there were in the classes for plumbing students who stated that the simple arithmetical operations required were beyond them. Owing to weakness in English several members of the shorthand classes were unable to make any progress in their study of the subject. And of the eighty-nine present in the junior book-keeping classes on the opening night, eighteen had to be refused admission owing to their inability to do correctly the very simple calculations necessary. The classes constituting the commercial group were again well attended. They evidently maintain their popularity. During the year numerous inquiries were made at the school for youths desirous of taking up a commercial life, but the response was not by any means equal to the demand. With the object of still further enhancing the value of the Association's certificates in these subjects the standard of examination has been again slightly raised. The quality of the instruction given in the so-called technical classes varied, but on the whole good work was done. The course in practical mathematics is now proving of great benefit to the members of the engineering classes. The examiners make special reference to the improvement, and suggest that the drawing pertaining to the subject be similarly dealt with. The machinery 7 for practical work has been recommended by the Committee, and this, when procured, will add greatly to the efficiency of the instruction given in mechanical engineering. Practical electricity was well attended during the first quarter, and fairly during the second. But many of the students were without the elementary knowledge required as a basis for the profitable study of this subject. It is, in my opinion, necessary to have provision for more practical work, and 1 purpose making suggestions whereby students will be required to spend half the time at actual construction and practice. Dressmaking was again in great demand, the nine classes held being well supported to the end of the session. The cookery classes were larger than usual, several of the pupils attending more than one class. In order to give students the full benefit of the teacher's attention in demonstration and practice the class for horticulture was limited to nineteen, several being refused admission each quarter. In physics the work was characterized by an earnest thoroughness on the part of both teacher and taught, while in the class for painters' work the effect of the teachers' enthusiasm was apparent. The work of the other classes does not call for any special mention. I have again to place on record the Managers' appreciation of the generosity of Professors Black, Gilray. and Shand in each continuing to grant a free place in their University classes. This year James Turner gains the free place in physics, Harry S. Tilly in chemistry, and Miss Dorothy Bradley in English. The honorary examiners give a good deal of time and attention to the supervision and examination of the work. All are entitled to credit, but special mention must be made of the examiners for cookery. The members of the staff have been regular and zealous in the discharge of their duties, and to them is due the credit of bringing the year's work to such a successful issue. . , r , _ , ,-.. , A. Marshall, Director. Statement of Receipts and Expenditure for the Tear ending Slst December, 1907, in respect of Associated Classes conducted at the Dunedin Technical School by the Dunedin Technical Classes Association. Receipts. £ s. d. Expenditure. £ s. d. Balance at beginning of year .. .. 101 4 1 Salaries of instructors .. .. .. 1,339 0 0 Capitation on associated classes .. .. 1,009 3 8 ; Office expenses (including salaries, stationery, Capitation on account of free places .. 371 13 7 ' &c.) .. .. .. .. .. 138 2 2 Furniture, fittings, and apparatus.. .. 224 0 0 Advertising and printing.. .. .. 64 14 0 Material .. .. .. •• 52 8 8 Lighting and heating .. .. .. 66 18 8 Subsidies on voluntary contributions .. 249 00 j Insurance and repairs. .. .. .. 72 11 0 From Education Board on account of janitor 28 6 8 Rent .. .. .. .. .. 110 0 Fees .. .. .. .. • • 404 3 6 i Material for class use .. .. .. 72 4 6 Voluntary contributions .. 192 10 6 j Janitor.. .. .. .. .. 86 0 0 Water rates .. .. .. .. 6 2 0 Furniture, fittings, and apparatus.. .. 392 10 6 Balance at end of year .. .. .. 392 17 10 ! . £2,632 10 8 £2,632 10 8 George M. Thomson, Chairman ) „,, Angus Marshall, Secretary j anagers.

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