F.—l.

Engineering Branch : Reorganization. The Telegraph Engineers' offices at New Plymouth and Timaru were closed as from the Ist April, 1939, and the relative engineering districts were incorporated in the Wanganui and Christchurch districts respectively. At the same time the Mart,on, Taihape, and Ohakune construction and fault areas were transferred from the Wanganui to the Palmerston North engineering district, and the Oamaru construction and fault area, previously included in the Timaru district, was transferred to the Dunedin engineering district. Promotion Board Election. Mr. M. W. W. Cummins, the sitting member on the Post and Telegraph Promotion Board, was re-elected unopposed in January last as the elective member of the Promotion Board. Appeal Board. The Post and Telegraph Appeal Board, under the Chairmanship of Mr. H. A. Young, Stipendiary Magistrate, Christchurch, sat at a number of the more important centres during the year. The session commenced at Dunedin on the 31st July and terminated in Wellington on the 13th September. Appeals totalling 309, received from 229 officers, were adjudicated upon, with the following results : Allowed, 20 ; conceded by Department, 33 ; withdrawn, 13 ; did not lie, 20 ; disallowed, 223. Sick Benefit Fund. During the year 552 officers were granted assistance from the Sick Benefit Fund. In December last the fund was accepted as a " like " society within the meaning of the Social Security Act, and officers receiving benefits from the fund are now treated in the same manner as are members of societies registered under the Friendly Societies Act. CORRESPONDENCE SCHOOL. During the year, 775 officers purchased technical courses from the Correspondence School, which now issues fourteen'courses—namely, magnetism and electricity; introductory course for outside plant; introductory course for telephony and telegraphy ; Morse telegraphy ; multiplex systems ; teleprinter systems ; radio (a) ; outside plant, Stages I and II; private automatic branch exchange systems ; telephony, Sections I, 11, 111, and IV. Of the officers who availed themselves of the facilities provided by the school, 80 per cent, passed the examinations held at the conclusion of the courses. SUGGESTIONS. With a view to promoting beneficial"changes in the Department, a general invitation was extended to officers in June, 1939, to submit suggestions for the better working of the Department in respect not only of systems and methods of work, but also of the welfare of officers generally. The response was most gratifying, over two thousand five hundred suggestions being received. That officers accepted the invitation in a spirit of co-operation was evident from the time and thought that had obviously been given to the formulating of most of the suggestions. Many of the proposals put forward involved extensive investigation. Partly as a result of this and partly as the outcome of conditions created by the war, it has not yet been possible to reach finality in some instances. Notwithstanding this, it is evident that the advantages that will accrue from the adoption of certain suggestions will be of appreciable benefit to the Department and to officers themselves. Suggestions Board. Some 226 suggestions for the better working of the Department were received from officers during the year, and ten awards, involving a total sum of £24, were made for meritorious proposals. COMMERCIAL BRANCH. Business transactions representing an annual revenue value of £61,116 were dealt with by the Commercial Branch during the year. The decrease of £16,075 compared with the total for the preceding year is attributable to a reduction in staff and a curtailment of activities consequent upon the outbreak of war. . Of the revenue earned during the year, £41,613 represents telephone business, and the balance (£19,503) advertising, postal, and miscellaneous business.

8