PUBLIC SERVICE SUPERANNUATION BOARD (TWENTY-SIXTH ANNUAL REPORT OF THE), WITH ACCOUNTS, FOR THE FINANCIAL YEAR ENDED 31st MARCH, 1934.

Appendix to the Journals of the House of Representatives, 1934 Session I, H-26

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1934. NEW ZEALAND.

PUBLIC SERVICE SUPERANNUATION BOARD (TWENTY-SIXTH ANNUAL REPORT OF THE), WITH ACCOUNTS, FOR THE FINANCIAL YEAR ENDED 31st MARCH, 1934.

Presented to Parliament pursuant to the Provisions of the Public Service Superannuation Act, 1927.

REPORT.

The Board has the honour to submit the following report upon the transactions in connection with the Public Service Superannuation Fund : — The Revenue Account, balance-sheet, and statements regarding membership and retiring and other allowances will be found appended. The Board. —Extraordinary vacancies occurred during the year due to the resignation of Messrs. J. T. Carr and H. A. Lamb, representatives of contributors belonging to the Post and Telegraph Department, Messrs. R. H. Brown and E. H. R. Green being elected unopposed to fill the vacancies. Mr. A. E. Allison, Government Insurance Commissioner, a statutory member of the Board, retired during the year and was succeeded by Mr. W. E. Arnold. Contributors. —The number of new contributors who joined the scheme during the year, and other particulars, are contained in the following table : —

The following table contains particulars of the public servants who were contributing to the fund on the 31st March, 1934 (after allowing for deaths, retirements, and withdrawals), grouped according to their respective rates of contribution :—

The number of male contributors increased by 169 ; female contributors decreased by 19. The net increase in the annual contributions amounts to £1,714.

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I Number. Rate per Cent. Annual Contribution as provided — Annual balary. Contributions. by the Aot. Male _ Female. Total. £ a. d. £ s. d. 5 422 228 650 66,426 6 8 3,321 6 4 6 18 5 23 4,565 8 4 273 18 6 7 7 1 8 2,040 8 4 142 16 7 8 1 3 4 497 5 10 39 15 8 9 3 .. 3 684 3 4 61 11 6 10 Transferred from other 5 .. 5 1,647 6 8 82 7 4 funds —— ~ Totals .. 456 237 693 75,860 19 2 3,921 15 11

J at < 3 . Number. per Cent, of Annual Contribution as , Annual Salary. Contributions. Pr t°he Act y Male ' Pemale ' | TotaL £ s. d. £ s. d. 5 12,452 1,952 14,404 3,389,079 15 0 169,453 19 9 6 1,319 141 1,460 413,889 15 10 24,833 7 9 7 820 91 911 260,426 5 0 18,229 16 9 8 402 45 447 130,994 15 10 10,479 11 8 9 115 13 128 38,464 3 4 3,461 15 6 10 17 2 19 5,562 1 8 556 4 2 Totals .. 15,125 2,244 17,369 4,238,416 16 8 227,014 15 7

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Retiring and other Allowances.—Pensions for £23,723 7s. per annum were granted during the year as follows : For age or length of service, £15,056 lis. to 58 members (50 male and 8 female members) ; for medical unfitness for duty, £4,968 10s. to 36 members ; to 3 contributors retired under the provisions of section 14, Finance Act, 1931, £343 6s. per annum ; to widows and children of deceased members, £2,263 per annum to 73 widows, and £1,092 per annum to 42 children. Under section 114 of the Public Service Superannuation Act, 1927, the statutory allowances to widows and children were increased from £18 to £31 per annum, and from ss. per week to 10s. per week respectively. The additional expenditure on this account is recovered from the Consolidated Fund. Those officers who retired during the year and who possessed compensation rights under the Civil Service Act, 1866, would have been entitled to receive the sum of £560, the amount of compensation accrued to the date when they joined the Superannuation Fund had they not become participants in the benefits of the fund. The total amount of such compensation for which the fund became liable since the initiation of the scheme is £561,134. To this amount must be added accretions to the date of retirement, approximately £143,000, for which the Consolidated Fund would otherwise have been liable, and the whole may be fairly set against the total subsidies paid to the fund during the past twenty-six years, amounting to £2,071,433. One hundred and eighteen retiring or other allowances were discontinued by death, and fifty-one for other causes —viz., four widows remarried, and forty-seven children reached the age of fourteen. M I Wom 1 o! Annual Amount. Total number and value of retiring and other allowances ales " 6 ae- £ s . d. granted during the year .. .. .. 109 103 23,723 7 0 Number and value discontinued .. .. .. 109 60 18,240 12 1 Net increase for year 43* £5,482 14 11 "Includes 41 widows. The annual amount payable at the close of the year was £488,074 25., as shown in the statement attached. Income. —The total income for the year was made up as follows :— £ Members'ordinary contributions .. .. .. .. .. 229,301 Subsidy, Cook Islands and Samoan Administration .. .. .. 599 Contributions from Government .. .. .. .. .. 143,529 Fines, &c. .. .. .. • ■ • • • • • • 732 Interest .. .. .. • • • • • • ■ ■ 157,200 Premium on conversion, Government inscribed stock .. .. .. 3,732 Total income for year .. .. ~ .. .. £535,093 Outgo. —The pensions paid during the year to contributors who have retired and to dependants of deceased contributors amounted to £486,925 ss. 9d.—viz., £448,761 Bs. 9d. to members, and £38,163 17s. to widows and children. Refunds of contributions to contributors who have left the Service amounted to £23,406 ss. 4d., while the refunds under section 42 to personal representatives of deceased contributors and annuitants amounted to £12,466 lis. 3d. Five contributors who were retired elected to accept a refund of their contributions under section 34, amounting to £1,678 ss. 10s., in lieu of retiring-allowances. One contributor was transferred to another fund in accordance with the provisions of section 120, and his contributions, amounting to £17 9s. Id., were accordingly transferred to such fund. The salaries of the staff and other office expenses were £2,218 17s. 6d. and £1,864 os. 4d. respectively. The total outgo for the year was £532,944 ss. 7d. Accumulated Funds.—These amounted at the end of the year to £2,899,564 ss. 6d. Balance-sheet. —On the 31st March the total assets of the fund, which include provision for the outstanding accounts, amounted to £2,972,390 17s. 3d. The balance-sheet appended gives full particulars as to the liabilities and assets.

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Investment of the Fund.—The total investments of the fund at each rate of interest were as follow :—- Inscribed stock— £ s. d. 4 per cent. .. .. .. .. .. 498,110 0 0 Rural Advances bonds— 5 per cent.* .. .. .. .. .. 236,155 10 0 Rural intermediate credit bonds — 5§ per cent.* .. .. .. .. • ■ 29,000 0 0 Debenture securities. £s. d. 4| per cent.f .. .. .. .. 6,000 0 0 5 per cent.f .. .. .. .. 32,102 12 7 5J per cent.f .. .. .. .. 17,523 0 0 5| per cent.l .. . . .. .. 3,700 0 0 5§ per cent.f .. . . .. .. 6,539 8 5 6 per cent.f .. .. .. .. 452,296 4 7 518,161 5 7 Mortgage securities — 5 per cent. .. .. .. .. 1,516 8 0 5J per cent.f .. .. .. .. 5,817 7 5 6 per cent.f .. .. 1,510,441 15 0 6J- per cent.f .. .. .. .. 12,440 16 7 1,530,216 7 0 £2,811,643 2 7 * Subject to an interest-tax at the rate of 20 per cent, charged on all interest on and from Ist April, 1933. Vide section 6, Finance Act, 1932-33. f Interest on and from Ist April, 1933, 20 per cent, lower than the rate prescribed by the securities or to the rate of 4-Jr per cent, per annum, whichever rate is the higher. Section 5, Local Authorities Interest Reduction and Loans Conversion Act, 1932-33. { Subject to a reduction of 20 per cent., but not to be reduced below the rate of 5 per cent, per annum. Tart 11J National Expenditure Adjustment Act, 1932. A special payment into the fund was made by Treasury (amounting to £30,633) being the amount of the reduction in the interest-rate of the four classes of securities. The above total includes £22,439 Bs. 2d. invested on Stipendiary Magistrates' account. The average rate of interest earned for the financial year on the mean funds was £5 lis. 6d. per cent., a reduction of 7s. 3d. per cent, as compared with the previous year. In this connection it must be understood that the amount of interest due and outstanding and interest accrued but not due at the balance date is taken into account in arriving at the before-mentioned rate. Reference to the balance-sheet discloses the sum of £63,642 ss. 4d. is overdue on mortgage securities. The Courts, acting under the powers contained in the Mortgagors and Tenants Relief Act, 1933, have written off during the year the sum of £4,747 17s. 7d., being arrears of interest; in addition, the rate of interest has been reduced from 5 per cent, to as low as 2 per cent, in a number of cases for periods varying from one to three years. Progress of the Fund. —The following table illustrates the position of matters in relation to the fund since its inception : —

A. T. Ngata Chairman.

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Year ended 31st December, Year ended 31st March, 1924. 1931. 1934. Total number of contributors .. .. 7,235 13,313 15,021 18,197 17,369 Total amount contributed annually .. £79,831 £141,844 £217,692 £270,316 £227,015 Interest on investments .. .. £1,295 £42,314 £113,608 £162,888 £157,200 Number of pensions and allowances payable 122 1,233 2,362 2,953 3,558 Annual value of retiring and other allow- £8,881 £88,392 £251,894 £383,923 £488,074 ances payable „ Total amount of contributions refunded .. £484 £23,391 £53,303 £40,754 £37,551 Expenses of administration .. .. £890 £2,318 £6,229 £8,418 £7,180 Total amount of accumulated fund .. £71,481 £896,568 £2,039,043 £2,917,154 £2,899,564

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PUBLIC SERVICE SUPERANNUATION FUND. Revenue Account for the Year ended 31st March, 1934. Dt. £ s. d. Cr. To Amount of fund at beginning of year .. 2,897,415 3 1 By Retiring-allowances— £ s. d. Members'contributions — To members .. .. .. .. 448,761 8 9 Under section 19 (ordinary) .. .. 227,766 19 5 To widows and children .. .. 38,163 17 0 Transferred from other superannuation Contributions returned — funds .. .. .. .. 882 17 2 Under section 37 (left service) .. .. 23,406 5 4 Interest on arrears of contributions .. 650 18 10 Under section 42 (death) .. .. 12,466 11 3 Government subsidy— Under section 34 (retirement) .. .. 1,678 5 10 Statutory .. .. .. .. 86,000 0 0 Contributions transferred to other superSpecial, section 29, Finance Act (No. 2), annuation funds (section 120) .. .. 17 9 1 1933 .. .. .. .. 40,775 13 1 Interest (section 38, Public Service SuperSection 114, Public Service Superannuation annuation Act, 1927) .. .. .. 21 5 7 Act, 1927 (widows and children) .. 16,753 14 10 Loss on realization of security .. .. 1,248 14 7 £ s. d. Expenses— Interest on investments .. 131,314 13 3 Salaries .. .. .. .. 2,218 17 6 Less amounts written off Medical fees .. .. .. .. 7180 by Court Orders, Mort- Audit fees .. .. .. .. 60 0 0 gagors and Tenants Rent .. .. .. . . 123 15 0 Relief Act, 1933 .. 4,747 17 7 Cleaning .. .. .. .. 49 3 8 126,566 15 8 Messenger service .. .. .. 35 8 8 Reimbursement by Treasury on account Public Trustee's charges .. . . 3,097 10 4 reduction of interest* .. .. .. 30,633 0 0 Contingencies .. .. . . 7 113 Subsidy, Cook Islands and Samoa .. 599 9 8 Post and Telegraph Department charges .. 1,000 0 0 Premium on conversion, New Zealand Go- Furniture and fittings .. .. .. 7 12 vernment inscribed stock .. .. 3,731 12 4 Typewriters and other machines (upkeep).. 4 14 10 Recoveries: Realization of security .. 75 0 0 Legal charges .. .. .. 172121 Fines, fees, and sundries .. .. .. 593 5 5 Heating and lighting .. .. .. 15 7 4 Stipendiary Magistrates' Account: Adminis- Printing and stationery .. .. 100 7 4 tration expenses recovered .. .. 64 1 7 Postages, telegrams, and services .. 206 19 6 Travelling-expenses .. .. .. 911 6 Balance as at 31st March, 1934 .. .. 2,899,564 5 6 £3,432,508 11 1 £3,432,508 11 1 * Payment by Treasury of amount of statutory reduction of interest on mortgage securities, National Expenditure Adjustment Act, 1932, Part 111, £15,412 ; interest-tax, rural advances bonds and intermediate-credit debentures, section 6, Finance Act, 1932-33, £2,818 ; statutory reduction of interest, New Zealand Government inscribed stock, New Zealand Debt-conversion Act, 1932-33, £6,332; statutory reduction of interest, local-body debentures, section 5, Local Authorities Interest Reduction and Loans Conversion Act, 1932-33, £6,071: total, £30,633. Balance-sheet as at 31st March, 1934. Liabilities. Assets. Superannuation Fund Account— £ s. d. Balance due from Revenue £ s. d. £ s. d. Amount invested by the Board .. .. 2,789,203 14 5 Account .. .. 2,899,564 5 6 Contributions due in course of transmission .. 29,190 12 2 Add value of office furni- £ s. d. ture, fittings, and ma- Interest due and outstanding .. 63,642 5 4 chinery .. .. 351 18 3 Interest accrued but not due .. 29,685 9 2 2,899,916 3 9 93,327 14 6 Subsidy— Retiring and other allowances due in course of Cook Islands and Samoa .. .. .. 53 4 11 payment — Section 114, Public Service Superannuation To members .. .. .. .. 2,385 5 7 Act, 1927 .. .. .. .. 177 14 10 To widows and children .. .. .. 298 19 1 Contributions transferable from other superRefunds of contributions due in course of pay- annua.tion funds .. .. .. .. 115 14 1 ment — Rates, fees, and premiums paid on account of Under section 37 (left service) .. .. 371 14 4 mortgagors (recoverable) .. .. .. 1,624 0 6 Under section 42 (death) .. .. .. 1,320 15 5 Office furniture, fittings, and machinery .. 351 18 3 Expenses due in course of payment — Retiring-allowances recoverable (Pensions DeHeating and lighting .. .. .. 0 16 0 partment)' .. .. .. .. 31 0 6 Printing and stationery .. .. .. 6 19 10 Sundry debtors (Rarotongan Administration) .. 375 17 4 Post and Telegraph charges .. .. 236 2 6 Cash in hand, Public Trustee .. .. f56,471 7 2 Typewriters and other machines (upkeep) .. 0 4 0 Cash in bank .. .. .. .. 1,017 14 3 Public Trustee's charges on accrued interest .. 3,140 6 0 Cash in hand, Post and Telegraph Department 450 4 4 Contributions paid in advance or in error .. 132 18 1 Balance, Government subsidy* .. .. 64,500 0 0 Unclaimed Account (contributions, &c.) . . 79 8 8 Balance Cost-of-living Bonus Account . . 14 0 £2,972,390 17 3 £2,972,390 17 3 * The Government subsidy is paid n January of each year; owing to the change in the date of the financial year, to show the true position of the fund it is necessary to state this item as a liability. t Includes £50,000 on deposit at call; interest, 3J per cent. Note. —The liability under the provisions of section 9 (2), National Expenditure Adjustment Act, 1932, as amended by sections 24 and 25, Finance Act, 1932-33 (No. 2), amounted to £72,685 7s. lOd. as at 31st March, 1934. Subsidiary Account. Cost-of-living Bonus paid to Annuitants of the Public Service Superannuation Fund on behalf of the Treasury. Dr. £ s. d. Gr. £ s . d. To Amount disbursed for period Ist April,'l933, By Amount received from Treasury .. .. 1,106 3 8 to 31st March, 1934 .. .. .. 1,104 19 8 Balance carried forward .. .. .. 14 0 £1,106 3 8 £1,106 3 8

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PUBLIC SERVICE SUPERANNUATION FUND—continued. Stipendiary Magistrates' Account. Revenue Account for the Year ended 31st March, 1934. Dr. £ s. d. Gr. £ s. d. To Amount of fund, Ist April, 1933 .. .. 23,695 15 2 By Retiring-allowances .. .. .. 3,448 410 Members' contributions, section 63, Public Contributions returned, section 63, Public SerService Superannuation Act, 1927 .. 1,640 8 5 vice Superannuation Act, 1927 .. .. 688 10 0 Interest on investments .. .. .. 1,251 4 7 Administration expenses .. .. .. 64 1 7 Premium on conversion, New Zealand Govern- Balance as at 31st March, 1934 .. .. 22,418 2 3 ment inscribed stock .. .. .. 31 10 6 £26,618 18 8 £26,618 18 8 Balance-sheet as at 31st March, 1934. Liabilities. £ s. d. Assets. £ s. d. Stipendiary Magistrates' Account: Balance due Amount invested by the Board .. .. 22,439 8 2 from Revenue Account .. .. .. 22,418 2 3 Contributions due in course of transmission .. 30 15 9 Retiring-allowance due in course of payment .. 52 1 8 £22,470 3 11 £22,470 3 11 Note.—The liability under the provisions of section 10 (3), National Expenditure Adjustment Act, 1932, as at 31st March, 1934, amounts to £606 ss. 2d. Wellington, 6th June, 1934. R. S. Wogan, Acting-Secretary, Public Service Superannuation Board. I hereby certify that the Revenue Account and balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby, subject to the above departmental notes. —G. F. C. Campbell, Controller and Auditor-General.

Statement of Contributors for the Year ended 31st March, 1934.

Particulars of Contributions discontinued during the Year.

Progress of Contributors since Date of Establishment of the Fund to 31st March, 1934.

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Number. Annual Salary . Col uribuiiODB. M. P. Total. £ s. d. £ s. d. Contributors at the beginning of the year .. 14,956 2,263 17,219 4,189,625 13 4 225,300 11 8 New contributors entered during the year .. 451 237 688 74,213 12 6 3,839 8 7 Contributors transferred from other funds .. 5 .. 5 1,647 6 8 82 7 4 Increase by promotion during the year .. .. .. .. 94,527 8 4 4,786 4 11 Total .. .. .. .. 15,412 2,500 17,912 4,360,014 0 10 234,008 12 6 Contributions discontinued during the year 287 256 543 121,597 4 2 6,993 16 11 Total contributors at end of year .. 15,125 2,244 17,369 4,238,416 16 8 227,014 15 7

Number. i Annual Amount BetiringHow discontinued. — ——— Annual Salary. r paid on allowanceM. P. Total. Contributions. Ketirement granted. £ s. d. £ s. d. £ s. d. £ s. d. By death before retiring-allowance en- 51 5 56 15,446 5 0 910 10 11 10,496 11 9 1,338 0 0 tered upon (sees. 42 and 43) By retirement before retiring-age (sec. 37) 146 238 384 62,913 17 6 3,335 16 2 23,406 5 4 By retirement (sec. 34) .. .. 5 5 1,305 10 0 94 17 2 1,678 5 10 By retirement medically unfit (sec. 32) 31 5 36 11,826 6 8 655 6 10 .. 4,968 10 0 By retirement at retiring-age or for length 50 8 58 27,094 5 10 1,822 7 0 .. 15,056 11 0 of service (sec. 26) By retirement (sec. 14, Finance Act, 1931) 3 3 1,208 6 8 74 6 0 .. 343 6 0 By transfer to other funds (sec. 120) .. 1 1 68 84 385 17 91 By reduction .. .. 1,734 4 2 97 4 5 Total .. .. .. 287 256 543 121,597 4 2 6,993 16 11 35,598 12 021,706 7 0

Number. j Annual Salary. Contributions. M. P. Total. _ _—, £ s. d. £ s. d. Total entered .. .. .. .. 33,221 8,976 42,197 9,664,803 15 10 562,742 9 10 Total discontinued .. .. .. 18,096 6,732 24,828 5,426,386 19 2 335,727 14 3 Total existing at 31st March, 1934 .. 15,125 .2,244 17,369 4,238,416 16 8 227,014 15 7

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i l. O. VVUIjAIN, Acting-Secretary, Public Service Superannuation Board.

PUBLIC SERVICE SUPERANNUATION FUND— continued. Statement of Retiring and other Allowances for the Year ended 31st March, 1934

By Authority: 6. H. Loney, Government Printer, Wellington. —1934.

Approximate Cost of Paper.—Preparation, not given; printing (1,950 copies), £11 10s.

Wellington, 6th June, 1934.

Price 6cL."\

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Section 26: Section 32: ' Section 61: Police ! Section 39, JK™ Section 14, Finance Act, Section 42: Sections 42 (c) and 43 (a): Total Retiring and other ot f of Servic® Medically unfit. injured on Duty. i93o°No 2X I 1931. Widows. Children. Allowances. Number. 1 Number. ! Number. ! Number. Number. , Annual I Annual ber - Annual ber ' Annual ' Annual _ Annual JLJj Annual — Annual U Annual Amount. j I *3 I Amount. Amount. Amount. Amount. Amount. Amount Amount Amount. M. F. Total. M. ! F. | M. M. M. M. F. •§ F. M. I F. Total. M. F. Total. J j i H i 1 I i J EH |i 1 1 1 '' ■ . ! — : , . Retiring and other allowances — £ s. d.| £ s. d. £ s. d. £ s. d £ s. d. £ s. d. £ : ~ £ s. d Existing at beginning of year 1,599' 250 1,849 400,766 9 o! 21V 41| 258; 24,472 11 7 11 1,653 10 6' 57 8,605 3 0 43 7,014 18 0| | 19 4 23 2,319 15 0 927 28,737 201; 146 347 9,022 2,147 1,368 3,515 482,591 7 1 Granted during year at retire- 50 8 58 15,056 11 oj 31 6 36 4,968 10 0 .. .. I .. j •• 3 .. 3 343 6 0 18 558 j 18 12 30 780 102 43 145 21,706 7 0 Tfb&Tht i ' 1 I Granted during year after re- .. .. i .. .. .. .. -• •• •• .. 55 1,705 7 5 12 312 7 60 67 2,017 0 0 tirement j | | j i Total .. .. 1,649 258 1,907 415,823 0 0 248 46 294 29,441 1 7 11 1,653 10 6 57 i 8,605 3 0 43 7,014 18 0 22 4 26 2,663 1 0 1,000 31,000 226 163 389 10,114 2,256 1,471 3,727 506,314 14 1 Discontinued during year .. 68 2 70 13,972 1 4 15 2 17 1,598 6 9.. .. 1 145 13 0 2 310 11 0 ..;... . .. 32 992 23 24 47 1,222 109 60 169 18,240 12 1 Existing at end of year .. 1,581 256 1,837 401,850 18 8 233 44 277 27,842 14 10 11 1,653 10 6 56 8,459 10 0 41 6,704 7 0 22 4 26 2,663 1 0 968 30,008 203 139 342 8,892 2,147 1,411 3,558 488,074 2 0 Particulars of Retiring and other Allowances discontinued during the Year. How discontinued — ill ! Bv death . .. 68 2 70! 13,972 1 4 15! 2 1 ' 17 1,598 6 9.. .. 1 145 13 0 2 310 11 0 .. 28 868 .. 86 32 118 16,894 12 1 _ , I . .. 4 124 23 24 47 1,222 23 28 51 1,346 0 0 By expiry .. • • .. | .. .. . .. .. .. | ■ ■ • ■ - 1 1_ . Total .. .. 68 2 7o| 13,972 1 4 15 2 1»7 1,598 6 9 .. .. 1 145 13 0 2 310 11 0 .. 32 992 23 24 47 1,222 109 60 169 18,240 12 1 ; i i Progress of Retiring and other Allowances since Establishment of the Fund to 31st March, 1934. Total granted .. .. ' 2,635 298 2,933 568,526 10 0 493 57 : 550 49,497 0 5 15 2,097 14 0 59 8,747 14 0 49 j 7,688 8 0 22 4] 26 2,663 1 0 1,350 39,640 724 654 1,378 29,861 3,997 2,363 6,360 708,721 7 5 Total discontinued .. .. 1,054 42 1,096 166,675 11 4 260 13 273 21,654 5 7 4 444 3 6 3 288 4 0| 8 984 1 0 . . .. .. .. 382 9,632 521 515 1,036 20,969 1,850 952 2,802 220,647 5 5 Total existing at 31st March 1934 1,581 256 1,837 ; 401,850 18 8 233 441277 27,842 14 10 11 1,653 10 6 56 8,459 10 0 41 6,704 7 0 22 J 26 2,663 1 0 968 30,008 203 139 342 8,892 2,147 1,411 3,558 488,074 2 0 i|| i 1 P' ** R. S. Wogan,