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College, in consultation with Mr. Ferguson, consulting engineer, has been able to produce a good class of carbon, which has carried us over the emergency, and which I hope may prove of commercial value in the future. The Electric and Barrack Store Accounts are kept in a satisfactory condition by the Royal New Zealand Artillery. 55. Artillery Armament. There is but little change in this armament. The alterations involved by lists of changes in war materiel have been carried out, and local improvements in connection with the fort guns have been executed, adding materially to the effect and rate of fire of these guns. An Ordnance Store Corps has been established which will be ultimately of great service in saving of expense to this Department. 56. Medical Stores. The medical equipment for the use of the New Zealand Forces was during last year and this year brought up to a serviceable standard, the various medical corps and regiments in the Dominion being supplied with new and complete stretchers, medicine-chests, and surgical haversacks. The requirements of the Expeditionary Force have, in a measure, reduced this equipment, and various ambulance units are being provided with a supplementary issue to enable their training to be effective. 57. Veterinary Stores and Horse Equipment. All units in the earlier part of the year had been provided with veterinary chests and the necessary appliances for their use. The system of picketing and of each unit providing its own saddles, bridles, &c, at home-defence and training camps not being suitable for service abroad, arrangements had to be made for large supplies of picketing-gear, various horse-appliances, and saddlery for service abroad. Considerable difficulty arose in connection with this, and as far as reports are available results seem to be quite satisfactory. 58. Stores, Buildings, and Magazines. The store buildings in Wellington, which were considered ample, have been taxed to the utmost by the quantity and variety of stores requisitioned for the complete equipment of our Forces going abroad. Recently the congestion was so great that it became necessary to lease a store to relieve the pressure. This store comprises a flat in Taranaki Street, and being fairly near the main store buildings is proving of great service for the receipt and examination of saddlery, supplies, &c. It will shortly become necessary to make provision for a new magazine at Auckland for the storage of ammunition, owing to the increased annual supply of cordite which is now necessary for the additional supply for small-arms ammunition contracted for by the Colonial Ammunition Company. The departmental magazine at Kaiwarra has recently been relieved of the storage of merchants' explosives, and the magazine-keeper has now only departmental ammunition, &c. The merchants' explosives have been removed to a new magazine built at Shelly Bay, under the control of the Internal Affairs Department. A good store is urgently needed at Christchurch, and this is being arranged for. The supply of military stores for the Wellington Military District has been hitherto arranged from the Defence Stores, Wellington, but a small store for camp equipment and other such stores for camp has been established at Palmerston North this year, and a Mobilization Storekeeper appointed. It is most necessary that a suitable store building be erected, also a small-arms-ammunition magazine and a central armourers' shop, so that all work for the district will be controlled from District Headquarters. 59. Waterproof Sheets. The supply for the use of these useful articles is being maintained, and although in a few Territorial camps there was a shortage, the supply will be made good for this year's training-camp. 60. Stock-taking. 1 regret to report in regard to annual stock-taking in 1914 the provisions of the Public Service Regulations could not be carried out. Our annual stock-taking should have taken place in September, when the training season usually ends, but owing to the outbreak of war on the 4th [August it became utterly impossible to conduct the stock-taking, which will have to stand over meanwhile. 61. Drill-books, Forms, etc. The supply of drill-books ordered in England has been considerably restricted owing to the war. Nevertheless, minimum supplies were obtained, enabling the latest instruction in military training to be carried into effect at Trentham and at the Territorial camps. The great demand for forms, printing, &c, has been a heavy tax on the Government Printing Office. 62. Drill-halls, Stores, and Offices. During the past year the Department's drill-halls, stores, and offices have been maintained, repairs and renovations being effected where necessary. The drill-halls generally are in a good state of preservation, and in the majority of centres where established provide ample facilities for the training and administrative requirements of the local units. Since the passing of the Defence Amendment Act, 1912, drill-halls have been directly under the control, ot the Department, provision has been made for adequate caretaking, and their administration placed on a sound basis.

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