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established for the purpose of rescuing young boys and girls from the paths of vice and infamy, and providing them with such a training as would fit them to become useful members of society. The master and matron were provided with an excellent code of rules for their guidance, and, by adhering to those rules, they were enabled to carry out to a considerable extent the intentions of the founders of the institution. The school is situated about three miles from Dunedin, on a low-lying mountain range called Look-out Point, and commands a magnificent view of the ocean and southern part of Dunedin. The area of ground attached is 21 acres, but ; unfortunately, most of it is very rough, and not suitable in many respects for its present use. The chief objection is that it commands a south-easterly aspect, thus depriving the children of the sun's rays during the winter months, as there is a higher range at the back, or north-west side, of the house and grounds, behind which the sun sinks about 2 o'clock in the afternoon, thus giving a gloomy appearance to the place, in addition to making it very cold. The buildings have a ricketty, tumble-down appearance —especially the dormitories for the boys. These consist of a long range of wooden buildings, very old, having been used as an hospital in Dunedin, twenty-five years ago, and removed here for temporary use. The ground available for culture is made the most of, being kept in a good state of cultivation by the gardener and boys under his charge, so that we never lack a plentiful supply of vegetables. The institution is under the control of the Minister of Education. There is one Honorary Inspector —H. Houghton, Esq., who pays frequent visits to the institution. The master is the person into whose hands are committed the control and management, he being subject to the control of the Honorary Inspector, as all requisitions, and everything bearing upon the expenditure of public money, are approved of by that gentleman before any expenditure is incurred. The success which has attended the working of the institution is of a very satisfactory nature. Many of the former inmates who were, years ago, brought from the lowest places of infamy, are now getting well married. There were four girls married last year, who presented their marriage certificates to the master, and received, in the aggregate, £56 Is. 7d. —this money representing the amount of their earnings while at service, and under the control of the school authorities. ' The institution is frequently visited by former inmates—boys and girls of the early period of its existence —and a finer lot of young men and women could not be found. I have no hesitation in saying that the school is doing the work which its founders intended it should do. I may here state that I know of but one case of any former inmate having fallen back into criminal habits—that of a boy, who js now an inmate of the Dunedin Gaol, as also is his father. The crime in this case would appear to be hereditary, both father and mother having been members of the criminal class, from Tasmania. The girls who have been brought up in the institution are, generally, conducting themselves well; those who are not married are in good situations. I know of but two instances where there is a likelihood of their leading vicious lives. I could not offer any suggestions whereby the present system of working this institution could be improved. I have, &c, E. Titcheneb, The Secretary, Education Department, "Wellington. Master. 2. Report of H, Houghton, Esq., Honorary Inspector.

2. Report of H, Houghton, Esq., Honorary Inspector. Sir, — Dunedin, 29th June, 1881. In July last, when I had the honor of submitting my report on the Industrial School, I drew attention to the increasing numbers of children of a tender age that were then being committed to that institution. Reviewing that report on the present occasion, I might almost adopt its substance, so little has occurred during the interval to vary the general tenor of my remarks. The same good order, cleanliness, parental care, observable tben, remain as the distinguishing features of the management, and leave me nothing to add or withdraw at the close of another general inspection. On previous occasions I have drawn special attention to the numbers of infant children in the school, and abuses connected with their admission. I would now direct attention to the mortality that has taken place among these children. Out of 26 committed, during the past two years, 8 deaths have followed the withdrawal from the mother's nursing. Among the list of deaths are those of two infants of three weeks old, one of three months, and one of four, the remainder being under two years of age. If magistrates refused to admit children under two years old —there being few mothers who would not make some effort to maintain their infants—the serious cost of putting these infants out to nurse at a cost of 10s. per week would be saved. As at present arranged, only the most worthless thrust their children on the State for support. In most cases, by the course adopted, the State is holding out a premium for profligacy, the mothers considering themselves wholly relieved from any further charge on their behalf. In the proposed alteration of the existing law, provision should be made by which children could be committed for short terms, if only to give the parents temporary relief whilst seeking employment, or from any other cause for which it might be deemed advisable to send children to the school for a short time, rather than commit them for the long term now adopted. Once sent to the school, only a small percentage find their way back to their parents. In the great majority of cases, the school is looked on in the light of a public charity-school, into which it is desirable to obtain admission for children, where education and maintenance are provided until they are able to take care of themselves. The present state of the school is something like the following: Every boy and girl of any age has been sent away, because of the increasing number of young children in the school, and to keep them within the capacity of the present buildings. In the last report of the Inspector-General, Mr. Habens refers very pointedly to the advantages of the boarding-out system for such children. Looking to the increasing numbers, I should like to see that gentleman's suggestion tried, by offering to steady, well-conducted married people such a payment as would induce them to bring up children committed to their care. I am of opinion that it would