GOVERNMENT RAILWAYS SUPERANNUATION FUND. REPORT OF BOARD.

Appendix to the Journals of the House of Representatives, 1935 Session I, D-05

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1935. NEW ZEALAND.

GOVERNMENT RAILWAYS SUPERANNUATION FUND. REPORT OF BOARD.

Laid before Parliament in pursuance of Section 124 of the Government Railways Act, 1926.

The Board has the honour to transmit for the information of Parliament the following report upon the transactions of the Government Railways Superannuation Fund for the year ended 31st March, 1935. The Revenue Account, Balance-sheet, and statements in connection therewith will be found appended. The expenditure for the year exceeded the income by £1,006 12s. 2d. The improvement as compared with the previous year is mainly due to the special subsidy received from the Treasury in accordance with the provisions of section 17 of Finance Act (No. 2), 1934. Members' Contributions. —The income under this heading showed an increase of £3,831 Bs. 10d. The number of contributors at 5 per cent, increased by 63, while contributors at 3, 4, 6, 7, and 8 per cent, decreased by 68, 22, 1, 2, and 3 respectively. The increase in amount of contributions is due to the partial restoration of salary and wages reductions and appointments to the permanent staff. Contingent Contributors. —During the year 86 casual employees elected to contribute to the fund, so that in the event of their subsequently being permanently appointed they would not be faced with a liability in respect of service prior to permanent appointment. The total number of employees so contributing at the end of the year under review was 241, and the amount standing to their credit £10,507 16s. sd. Subsidy. —ln addition to the sum of £170,000 paid into the fund by the Working Railways Department, a subsidy of £87,000 as mentioned above was received from the Treasury. Interest. —The interest earned amounted to £67,993 17s. 4d., a decrease of £7,226 4s. as compared with the previous year. Table D, Statement of Investments, shows that the average rate of interest on securities held at the 31st March, 1935, was 4-672 per cent., and the average rate earned on the mean funds for the year 5-697 per cent., as against 4-716 per cent, and 5-75 per cent, respectively for the previous year. Life Allowances. —The expenditure on account of life allowances to members amounted to £422,477 11s. 10d., a decrease of £2,715 13s. as compared with the figures for the previous year. Year ended 31st March, 1934, showed an increase under this heading of £1,625 ss. Table A, Statement of Allowances, shows that the average amount of the eighty allowances granted during the year was £142 12s. Id., and the average amount of ninety-one allowances discontinued was £139 2s. 9d. Allowances to Widows and Children. —The expenditure under the heading of allowances to widows and children showed an increase of £39 18s. lid. The sum of £12,999 Bs. 3d. was received from the Working Railways Account during the year on account of the increased payments to widows and children as provided in section 114, Part 111, of the Government Railways Act, 1926. Approval was received for the continuance of the cost-of-living bonus to annuitants in cases of special hardship where the allowance was less than £80, the amount of bonus granted being sufficient to bring the allowance up to £80, but with a maximum bonus of £26. The bonus is provided for out of the Working Railways Account, and is not a charge on the Superannuation Fund. At the 31st March, 1935, there were 2,336 members, 620 widows, and 372 children, making a total of 3,328 persons actually on the fund, involving an annual liability of £439,031 11s. 10d. Investment of the Fund. —As the result of the operation of the Local Authorities Interest Reduction and Loans Conversion Act, 1932-33, the Investment Account has been credited with the sum of £1,342 10s. 4d., premiums on conversion. Jambs H. Gunson, Acting-Chairman, Government Railways Superannuation Fund Board.

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Table A.—Statement of Allowances for the Year ended 31st March, 1935.

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Section 102. Section 111 Section 113. Section 113. Total Retiring and other On Attainment of Retiring Age or for Medically Unfit Widows. Children. Allowances. Length of Service. Number. Number. Number. Number. , , , . - . , Num- Annual Amount, . , Annual Amount, Annual Amount. Annual Amount. Annual Amount. foer. at £31 per Annum. at £26 per Annum. M. F. Total. M. F. Total. M. P. Total. M. Ī. Total. .. 1,850 1 1,851 366,796 16 *4 496 .. 496 57,491 15 *1 606 18,% 0 \ 193 205 j 398 10,L J <j 2,539 | 812 3,351 «3,422 11 <5 Granted durinl year .. .. 39 .. 39 5,747 15 0 41 .. 41 5,660 12 0 28 868 0 0 22 21 43 1,118 0 0 102 | 49 lol 13,394 7 0 Total .. .. 1,889 1 1,890 372,544 11 4 537 .. 537 63,152 7 ] | 634 j 19,654 0 0 215 226 J 441 11,466 0 0 2,641 «613,502 466,816 18 5 Discontinued during year .. 72 .. 72 10,538 13 7 19 .. 19 2,122 13 0 14 j 434 0 0 35 34 j 69 1,794 0 0 1J3 48 174 14,889 Existing at end of year .. 1,817 1 1,818 362,005 17 9 518 .. 518 61,029 14 1 j 620 | 19,220 0 0 j 180 192 372 9,672 0 0 2,515 8133,328 451,927 11 10 Particulars of Retiring and other Allowances discontinued during the Year. H< Bydeath tlmled " .. .. 72 .. 72 10,538 13 7 19 .. 19 2,122 13 0 7 217 0 0 2 2 52 0 0 03 7 100 12,930 6 7 By expiry .. •• 7 217 0 0 33 34 67 1,742 0 0 33 4] 74 1,959 0 0 Total .. .. 72 .. 72 10,538 13 7 19 19 2,122 13 0 14 434 0 0 35 34 69 1,794 0 0 126 48 174 14,889 6 7 Progress of Retiring and other Allowances since Establishment of the Fund to 31st March, 19o5. Total granted*+ .. .. 3,142 2 3,144 505,960 8 2 838 1 839 88,364 8 3 976 | 27,656 0 0 881 873 1,754 36,595 0 0 4,861 18526,713 658,575 16 5 Total discontinued* .. .. 1,325 1 1,326 143,954 10 5 320 1 321 27,334 14 2 | 356 8,436 0 0 701 681 1,382 26,923 0 0 2,346 10393,385 „06,648 4 7 Total existing at 31st Mai ch, 1935.. 1,817 1 1,818 362,005 17 9 518 .. 518 61,029 14 1 620 19,220 0 0 180 192 372 9,672 0 0 2,515 8133,328 451,927 11 10 i J__ _J j _ Less amount receivable from the Working Railways Account on account of increased payments to widows and children .. .. . . . • ■ • • • • • • • ; 12,896 0 0 £439,031 11 10 * Total allowances granted and discontinued include 200 widows at £18 only, and 693 children at £13 only, exeunt prior to increase of allowances. t These figures include 134 allowances totalling £15,620 lis. per annum granted under section 14, Finance Act, 1931.

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Table B. —Statement of Contributors.

Table C.—Peogress of the Fund. Balance forward. Allowances granted. £ s. d. £ s. d. 1903 .. .. .. .. .. 7,056 11 9 1904.. .. .. .. .. 40,357 17 3 12,010 14 8 1905 .. .. .. .. .. 68,670 7 8 8,519 7 8 1906.. .. .. .. .. 90,984 1110 6,348 13 7 1907.. .. .. .. .. 110,736 12 3 4,398 14 11 1908.. .. .. .. .. 126,642 18 11 7,332 7 11 1909.. .. .. .. .. 157,15114 9 6,359 11 0 1910.. .. .. .. .. 173,876 1 8 11,828 0 6 1911.. .. .. ... .. 207,242 7 11 8,064 11 5 1912.. .. .. .. .. 233,457 8 6 7,065 16 4 1913 .. .. .. .. .. 264,455 5 4 8,568 6 6 1914 .. .. .. .. .. 295,469 11 6 9,865 17 8 1915.. .. ... .. .. 346,155 18 2 11,87114 3 1916 .. .. .. .. .. 362,810 4 2 9,662 2 5 1917.. .. .. .. .. 377,585 2 1 11,733 1111 1918 .. .. .. .. :. 373,097 12 7 8,386 4 0 1919 .. .. .. .. 363,804 4 4 9,252 17 8 1920.. .. .. .. .. 408,232 10 8 20,341 7 3 1921.. .. .. .. .. 464,490 17 0 20,346 8 9 1922.. .. .. .. .. 543,53110 8 23,050 2 0 1923.. .. .. .. .. 584,219 2 4 22,791 1 0 1924 .. .. .. .. .. 671,827 6 6 21,272 4 0 1925.. .. .. .. .. 734,112 8 11 36,409 14 0 1925 (increased allowances to widows and children) .. 12,246 0 0 1926 .. .. .. .. .. 862,139 3 6 23,509 6 0 1927 .. .. .. .. .. 985,828 4 0 28,281 4 0 1928.. .. .. .. .. 1,111,199 11 2 21,120 12 0 1929.. .. .. .. .. 1,238,673 11 8 23,006 11 0 1930.. .. .. .. .. 1,371,918 12 3 27,986 14 0 1931.. .. .. .. .. 1,488,565 18 3 40,573 13 0 1932.. .. .. .. .. 1,454,173 8 4 143,807 12 0 1933 .. .. .. .. .. 1,333,245 8 1 26,199 19 0 1934.. .. .. .. .. 1,240,830 15 8 12,970 9 0 1935.. .. .. .. .. 1,239,705 5 0 1.3,394 7 0 £ s. d. 658,575 16 5 Less members died, &c. .. .. 206,648 4 7 Less liability of Working Railways Account on account increased payments to widows and children .. .. .. 12,896 0 0 219,544 4 7 Annual liability at 31st March, 1935 .. .. £439,0311110

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3 per 4 per I 5 per 6 per 7 per 8 per 9 per ! T . , Cent. Cent. Cent. Cent. Cent. Cent. Cent. | ! I Contributors at commencement of year 1,536 69 8,707 1,323 214 12 4 11,865 New contributors during year .. .. .. 361 51 5 J 1 .. 418 Total .. .. .. 1,536 69 9,068 j 1,374 219 13 4 12,283 Contributors discontinued during year 68 22 298 52 7,4.. 451 Total contributors at 31st March, 1935 1,468 47 8,770 1,322 212 9 4 11,832

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Table D. —Statement of Investments.

Per Cent. Per Cent. Average rate of interest on securities held at 31st March. .. 4-672 4-716 Average rate of interest earned on the mean funds, including reimbursements made by the Treasury in respect of reduction of interest . . .. .. .. .. 5 ■ 697 5 • 75 Statement of Accounts in accordance with Section 123, Government Railways Act, 1926. Receipts and Payments Account for the Year ended 31st March, 1935. . Receipts. Payments. Dr. £ s. d. Or. £ s. d. To Balance in hands of Public Trustee on 31st By Retiring-allowances paid to members .. 422,380 3 0 March, 1934 .. .. .. .. 5,717 10 1 Allowances to widows and children .. 29,059 3 0 Contributions by staff .. .. 136,535 17 5 Contribntions refunded to members who have Contributions by contingent contributors .. 2,469 1 6 left the Service .. .. .. 20,994 4 2 Fines .. .. .. .. .. 126 10 0 Contributions refunded to contingent members Working Railways Account — who have left the Service .. .. 1,297 3 4 Subsidy ... .. .. .. 170,000 0 0 Rebates of contributions .. .. .. 153 10 1 Increased allowances to widows and children 12,979 2 0 Refunds to legal representatives of deceased Cost-of-living bonus to annuitants .. 773 10 10 beneficiaries under section 120 (c) of GoSubsidies from— vernment Railways Act, 1926 .. .. 480 11 10 New Zealand Railway Officers' Institute on Contributions transferred to other funds .. 183 13 6 account of Richard Hampton .. .. 18 11 5 Travelling-expenses of Board members .. 77 1 0 Railway Tradesmen's Association on account Public Trust charges (legal costs) .. .. 62 18 11 of Samuel Ingram .. .. .. 24 15 3 Public Trust commission .. .. .. 1,861 13 5 New Zealand Engine-drivers, Firemen, and Rates and fees paid on account of mortgagors Cleaners' Association on account of (recoverable) .. .. .. .. 77 18 3 Thomas H. Stephenson .. .. 60 5 5 Audit Office fee .. .. .. .. 50 0 0 Consolidated Fund .. .. .. 87,000 0 0 Insurance premiums (recoverable) .. .. 0 811 Interest— £ s. d. Salaries .. .. .. .. 1,154 7 0 Investments .. .. 63,608 11 2 Postages .. .. .. .. 194 2 6 Treasury Department .. 12,138 0 0 Printing and stationery .. .. .. 33 12 0 75,746 11 2 Cost-of-living bonus to annuitants .. .. 775 7 11 Investments .. .. .. .. 16,595 16 4 Balance in hands of Public Trustee at 31st Commission on collection of Government Life March, 1935 .. .. .. .. 29,259 16 5 Insurance premiums .. .. .. 48 310 £508,095 15 3 £508,095 15 3 —..... . — .^^—

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Funds invested at 31st March. 1935. 1934. J £ s. d. ! £ s. d. At 3* percent. .. .. .. .. .. 5,446 9 4 5,000 0 0 „3-5* „ .. .. .. .. .. 2,600 0 0 2,800 0 0 „4 „ .. .. .. .. .. 233,965 5 0 232,149 16 3 „4-25 „ .. .. .. .. .. 146,468 19 10 148,360 0 0 „4-4 „ .. .. .. .. .. 655 0 0 5,130 0 0 „4-5 „ .. .. .. .. .. 43,248 16 3 „4-6 „ .. .. .. .. .. .. 250 0 0 „4-8 „ .. .. 27,613 16 11 „5-0 „ .. .. .. .. .. 717,589 5 8 806,516 10 7 „5-2 „ .. .. .. .. .. 120 0 0 2,630 0 0 „6-0 „ .. .. .. .. .. 3,295 15 0 3,334 0 0 Cask in hand .. .. .. .. .. .. 64,876 2 11 5,999 3 1 1,218,265 14 0 1,239,783 6 10 * Under Court orders.

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Statement of Accounts, etc.— continued. Revenue Account for the Year ended 31st March, 1935.

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EXPENDITURE. 1934-35. 1983-34. INCOME. 1934-35. 1933-34. £ s. d. £ s. d. j £ s. d. £ s. d. To Retiring-allowances to members .. .. .. 422,477 1110 425,193 4 10 By Members'contributions .. .. •■ .. 134,886 1111 133,560 5 5 Allowances to widows and children .. .. .. 29,020 2 11 28,980 4 0 Members'contributions on account of casual service .. 2,505 2 4 Refund of total contributions .. .. .. .. 20,785 2 1 24,539 1 7 Fines .. .. .. •• •■ •• 135 10 0 127 12 6 Refund of contributions in excess of allowance drawn by 480 11 10 529 1 4 Subsidies — deceased beneficiaries Consolidated Fund .. .. •. .. 87,000 0 0 Refund of casual-service contributions .. .. .. .. 19 19 7 Working Railways .. .. .. •■ 170,000 0 0 170,000 0 0 Transfers to other funds .. .. .. .. 183 13 6 43 13 7 Working Railways, on account of increased allowances to 12,999 8 3 13,005 10 4 Reserve for bad and doubtful debts .. .. .. 1,891 1 3 4,556 0 0 widows and children Administration charges-— New Zealand Railway Officers' Institute, on account 18 11 2 19 1 10 Travelling-expenses of Board members .. .. 77 1 0 77 1 0 Richard Hampton Public Trust Office commission .. .. .. 1,581 18 3 1,606 19 3 New Zealand Railway Tradesmen's Association, on 24 15 0 25 9 1 Public Trust charges (legal costs) .. .. .. 62 18 11 72 7 10 account Samuel Ingram Audit Office fee .... .. .. .. 50 0 0 50 0 0 New Zealand Engine-drivers, Firemen, and Cleaners' 31 0 9 29 10 5 Salaries .. .. .. .. .. .. 1,154 7 0 1,069 2 0 Association, on account T. H. Stephenson Postages .. .. .. .. .. .. 194 2 6 U9 4 4 Interest— £ s. d. Printing and stationery .. .. .. .. 33 12 0 44 3 3 \ Investments .. .. .. 55,855 17 4 Treasury Department .. .. 12,138 0 0 67,993 17 4 75,220 1 4 Premium on securities converted .. .. .. 1,342 10 4 2,446 0 6 Commission on Government Life Insurance collections .. 48 3 10 |8i: 47 4 9 Balance carried down, being excess of expenditure over 1,006 12 2 92,449 6 5 income for the year 477,992 3 1 486,930 2 7 477,992 3 1 486,930 2 7 To Balance brought down .. .. .. .. 1,006 12 2 92,449 6 5 By Accumulated funds brought forward on 1st April .. 1,240,830 15 8 1,333,245 8 1 Amounts previously written off now claimed : Refund of 118 18 6 .. Amounts unclaimed written off — contributions Retiring-allowances .. .. .. .. .. 28 19 11 Balance accumulated funds as at 31st March .. .. 1,239,705 5 0 1,240,830 15 8 Widows'allowances .. .. .. .. .. 5 14 1 1,240,830 15 8 1,333,280 2 1 1,240,830 15 8 1,333,280 2 1

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- James H. Gunson, H. Valentine, Acting-Chairman of the Government Railways Chief Accountant, New Zealand Railways. Superannuation Fund Board. I hereby certify that the Statements of Receipts and Payments, 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.— J. H. Fowler, Deputy Controller and Auditor-General.

Statement of Accounts, etc.— continued. Balance-sheet as at 31st March, 1935.

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LIABILITIES. 1934-35. 1933-34. ASSETS. 1834-35. 1933-34. £ s. d. £ a. d. £ s. d. £ s. d. Accumulated funds as per Revenue Account .. .. 1,239,705 5 0 1,240,830 15 8 Investment Account — £ s. d. Casual employees' contingent contributions .. .. 10,507 16 5 8,566 16 8 I Investments .. .. .. 1,153,389 11 1 Retiring and other allowances due (not paid) — Cash in hand .. .. .. 64,876 2 11 Members .. ... .. .. .. .. 254 8 11 506 19 5 1,218,265 14 0 1,239,783 6 10 Widows and children .. .. .. .. .. 113 17 10 152 13 3 Current Account — Refund of contributions authorized (not paid) .. .. 346 9 1 299 8 9 Cash in hand .. .. .. .. .. 29,259 16 5 5,717 10 1 Transfers to other funds authorized (not paid) .. .. 17 14 3 17 14 3 Contributions and fines in transit .. .. .. 10,799 10 11 10,353 1 8 Interest paid in advance ., .. .. .. 284 15 4 489 12 2 Contributions outstanding .. .. .. .. 674 9 8 588 19 10 Public Trust Office .. .. .. .. .. 1,220 2 0 4,068 4 9 Contributions due by members in respect of casual service 2,688 8 0 2,597 12 10 Reserve for bad and doubtful debts .. .. .. 5,000 0 0 6,500 0 0 Working Railways — Rebates of contributions (National Expenditure Adjustment 43,016 3 6 43,968 7 0 On account of cost-of-living bonus .. .. .. 65 11 5 j 6Z 14 4 Act, 1932) On account of additional allowance to widows and children 1,037 0 11 j 1,016 14 8 Interest due not paid .. .. .. .. .. 24,109 6 8 31,308 8 4 Interest accrued but not due .. .. .. .. 13,203 16 10 13,657 7 10 Rates and fees paid .. .. .. .. .. 350 0 1 261 12 8 Insurance premium .. .. .. .. .. 12 6 6 22 6 9 Sundry debtors .. .. .. .. .. 0 10 11 29 16 1 1,300,466 12 4 1,305,400 11 11 1,300,466 12 4 \l,305, 400 11 11

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Life Allowances geanted, Year ended 31st Maech, 1935. Name. Amount. Name. Amount. Name. Amount. £ s. d. £ s. d. £ s. d. Andrews, J. .. .. 98 19 0 Gregory, G. W. .. 133 5 0 Park, W. .. .. 155 1 0 Bailey, R. J. .. .. 214 0 0 Hayward, D. A. .. 145 1 0 Patterson, J. S. .. 108 1 0 Barltrop, F. .. .. 169 6 0 Hazlehurst, W. M. .. 149 1 0 Pearce, P. .. .. 154 13 0 Barron, T. .. .. 141 8 0 Henderson, G. .. 149 6 0 Pettit, W. H. .. .. 126 7 0 Bennett, J. W. R. .. 131 13 0 Henderson, R. F. .. 114 3 0 Porter, S. .. .. 127 12 0 Bishop, H. C. .. .. 192 5 0 Herron, J. .. .. 143 14 0 Prendergast, T. .. 125 0 0 Bower, J. M. .. .. 91 18 0 Highet, W. .. .. 198 4 0 Reid, J. K. .. .. 146 17 0 Bowman, J. .. .. 120 15 0 Hughes, J. W... .. 150 14 0 Reynolds, W. J. .. 152 15 0 Boyle, T. .. .. 127 10 0 Kelly, D. .. .. 104 17 0 Rogers, A. .. .. 295 12 0 Brady, J. .. .. 131 14 0 Klempel, J. .. .. 101 14 0 Rose, J. .. .. 158 17 0 Brob'erg, W. G. .. 141 9 0 Knuth, F. J. .. .. 41 13 0 Ross, A. R. .'. .. 166 9 0 Brown, W. .. .. 209 1 0 Laffy, P. .. .. 135 12 0 Saunders, F. C. .. 124 12 0 Callaghan, J. .. .. 100 0 0 Lawrence, G. D. .. 138 18 0 Sohruffer, J. .. .. 129 13 0 Callander, C. W. B. .. 149 19 0 Lee, B. C. .. .. 59 8 0 Seofield, T. W. .. 168 18 0 Charteris, D. J. .. 70 10 0 Marriner, P. F. .. 144 12 0 Simpson, J. .. 121 3 0 Clode, W. .. .. 99 10 0 Miller, P. A. .. .. 150 11 0 Slater, J. .. .. 126 11 0 Coard.A. J. .. .. 166 7 0 Mills, D. C. .. .. 109 9 0 Snowdon, T. E. .. 195 16 0 Collett. A. G. .. .. 190 1 0 Moodie, J. .. .. 131 1 0 Strong, E. H. . . . . 155 0 0 Craig, D. .. .. 136 4 0 Morgan, T. G. .. 241 17 0 Tanner, 1). .. . . 109 2 0 Davis, W. S. .. .. 114 7 0 Moyle, H. A. . . . . 42 8 0 Tempero, C. J. . . 100 13 0 Dennison, C. .. .. 144 13 0 McDonald, ¥. .. .. 69 4 0 Terry, W. .. .. 117 4 0 Drew, W. G. .. .. 135 5 0 McGill, J. .. .. 100 19 0 Turley, G. W. .. 161 9 0 Ferguson, T. G. .. 137 11 0 Mclntosh, W. J. .. 128 5 0 Turnbull, E. J. .. 218 15 0 Fletcher, J. .. .. 189 16 0 McNeil, J. D. .. .. 139 19 0 Walworth, A. E. P. .. 417 15 0 Pox, W. J. .. .. 56 0 0 McPherson, G. .. 119 16 0 Watt, R. .. .. 154 3 0 Freeborn, W. G. .. 284 5 0 Norquay, G. .. .. 119 18 0 Wilson, G. H. J. .. 87 16 0 Gibson, A. D. .. .. 136 18 0 O'Brien, M. F. .. 158 0 0 Allowances to Widows and Children. Widows, £31 per annum; children, £26 per annum. Allison, I. M. V., and six children. Hilliard, C, and two children. Anderson, A. 8., and seven children. Hobson, E. M., and one child. Burton, E. A. Hollis, P. E., and one child. Clifford, J. D., and one child. Leslie, L. J., and three children. Crawford, E. Lippitt, D., and one child. Dawson, E. E. Lock, V. H. F., and two children. Dougherty, M. 8., and five children. Meade, C, and one child. Dunsmuir, F. M. Moroney, E. M. 1., and two children. Gibson, M. A. F. Polglase, M. M. D., and one child. Gubbins, J. H. Robson, E. M., and two children. Hail, C. Scelly, L. E. Hamilton, B. R. Soper, I. M. A. L. M., and one child. Hay, E. M., and four children. Wilson, E. A., and two children. Henson, E. A. Wood, M., and one child.

Approximate Cost of Paper. —Preparation not £iven ; printing (1,160 copies), £11 10s.

By Authority: G. H. Loney, Government Printer, Wellington. —1935.

Price 6d.J

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