E.—3

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grant of land on the northern boundary of the Orphan Home ground. This has been given for a term of twenty-one years at a nominal rent. The Board look forward to eventually utilize this land, and at the same time extend the usefulness of the institution, by erecting permanent buildings in which to impart industrial training to the children. The Board have much pleasure m testifying to the very satisfactory and able manner m which the matron and governess, and their assistants, have performed their duties during the past year It has been very gratifying to the Board to find their sentiments on this subject fully indorsed by the Inspector for the Department of Education (Mr Pope), in his report to the head of that department. The following is an extract from the letter of the Secretary of the department to the Secretary of your Board on the subject "Mr Pope says that the school is well supplied with furniture and appliances, and the schoolroom is neat and tidy The instruction given is of very good quality, and the order and school tone are most satisfactory The mistress is a valuable teacher, and she deserves great credit for what she has done in the school. Mr. Pope is inclined to think, however, that she requires the assistance of a pupil-teacher The children appear to be very healthy, and they all have a happy look on their faces that shows they are well and kindly treated. The matron has effected a really surprising change since Mr Pope's last visit. Everything is m first-class order, and there is nothing whatever to find fault with. Iron bedsteads might be substituted for the wood and canvas stretchers now in use, to say nothing of cleanliness and comfort, the present appliances do much to obscure the extreme neatness and tidiness that now really exist, and to give visitors an inadequately favourable impression of the institution." In accordance with the suggestion contained in that report, the Board have engaged the services of an assistant teacher, to relieve the governess to a large extent of the charge of the younger children. Part of the new building has been utilized as a class-room for those children, so that a system of tuition better adapted to such young minds may be followed without distracting the attention of the elder scholars. The Board have also substitued iron bedsteads for the stretchers, as recommended in Mr. Pope's report. While the Board have so many reasons for congratulation in their review of the past year, they have, on the other hand, a painful duty to perform in recording the great loss the institution has sustained by the death of its late honorary medical officer, Dr Goldsbro' His kindliness of heart and sympathy with those in trouble or affliction—a sympathy not confined to mere words, but bearing often a substantial form —had endeared him to a very large circle. As honorary medical officer of the Home for years, and one of the Board of Management, his zeal and attention had been unwearied, while his kind and gentle manner with his little orphan patients had won their hearts. His prompt and decisive action has prevented, under the Divine blessing, on more than one occasion, the spread of very serious outbreaks of sickness in the Home. Well has he earned the commendation of the Great Physician, his Divine Master, " Inasmuch as ye have done it unto one of the least of these my brethren, ye have done it unto me." Mr Bichard Coom, M.B.C.S. Eng , having very kindly offered his services as Dr. Goldsbro's successor, the Board have appointed him honorary medical officer of the institution. To the lady canvassers, the clergy who have organized and reported the results of the canvass, and the many kind friends who have specially contributed during the past year to the support of the Home, or to the improvement or entertainment of the children, the Board desire to tender their very hearty thanks. They would especially refer to the Union Steamship Company and Captain Cromarty, of the " Penguin," for the annual treat and trip to Motutapu , to Mr Crowther, for his annual supply gratuitously of conveyances for the children to and from the steamer, to the Devonport Steam Ferry Company, for their continuance of the free pass for the children of the Home by their steamers, to the Bey C M. Nelson and Mrs. Nelson, for the examination of the school, to Mrs. Beader Wood, for her usual treat and presents to the children, to his Worship the Mayor of Auckland, W B. Waddell, Esq., for a large case of toys for the