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Sauerbier Wing" has been given. This pleasant and airy room gives ample space for twenty-four more beds, which are set apart for boys. The dormitories for both boys and girls are now so arranged as to give bgress from them to the exterior of the building at each end, as well as in the middle of the building, thus minimizing the danger in case of fire. The Board have long felt it desirable that the man employed about the Home should reside on the premises, so that his services might be immediately available by night or day in any case of urgency or alarm. With this view they have had a cottage erected at the entrance to the grounds, which is generally admitted to be both a useful and an ornamental addition to the Home. Through the kind, representations of Mr. Moss, M.H.E. for Parnell, the Government have connected the Home with the telephone exchange on very favourable terms, thus greatly facilitating communication between the officials in town and those at the institution. The Board during the past year have had the Home connected with the Parnell Borough water-supply, and have also had the gas laid on to the children's play-room. The vistors to the Home will have, no doubt, observed the improved access given to the Home by the cutting down of the road leading from the Avenue, for which good service the Board and subscribers are indebted to the boys of the St. Stephen's Native Institution, under the gratuitous and able direction of Mr. Smith, the manager. The income for the year amounts to £2,155 16s. 4d., and the expenditure to £1,594 3s. 7d., particulars of which will be found in the Treasurer's statement of accounts. The Board have received £12,000 on account of the bequest of the late Mr. Costley, £11,300 of which is invested on mortgage, and the balance stands on deposit at interest. Messrs. Pierce, Eawlings, and Walker have been appointed by the Board trustees of the properties and moneys receivable under this bequest, and they have executed the requisite deed of trust. The Board would reiterate the opinion expressed in their last year's report " that they can only deal with that bequest as an endowment for the institution," and would impress upon the friends of the Home that there should be no diminution of their efforts and liberality if they desire the Home to be efficiently and successfully carried on, and its usefulness extended. The Government Department of Education having suggested that the school at the Home should be periodically inspected and reported upon by the Inspector of the Board of Education, your Board have concurred in the suggestion, believing such an inspection will tend to greater emulation in the scholars, and to a higher standard and better classification in the work of the school. The Board have to record with regret the loss the institution has sustained by the death of Mr. Barton Ireland. Mr. Ireland had been a useful and energetic member of the Board for the last five years, prior to which period he had acted for several years as one of the Auditors, and had always shown a great interest in the Home and in the welfare of the children. General Gosset has been elected to the vacancy on the Board occasioned by Mr. Ireland's death. The Board have also, with regret, to announce the resignation of Mrs. Judd, in consequence of change of residence, of the office of Superintendent of Clothing, held by her for the last ten years. The service rendered to the institution during that period by Mrs. Judd can only be fully appreciated by those who are aware of the time and labour which she devoted to the office, and the great self-sacrifice she practised in performing its duties. The Board desire to place on record their high estimation of the services rendered by Mrs. Judd to the institution, and of the great loss it sustains by her resignation. The Board desire to tender their very hearty thanks to the lady canvassers for their self-denying services during the past year, and trust that they will not allow themselves to be discouraged, but will prosecute the forthcoming canvass with renewed zeal and vigour, keeping in mind that every pound they collect is supplemented by one from Government, and that thus they are doubly promoting the good work in which they and the Board are engaged. The Board would also express their grateful acknowledgments to the clergy who organized and reported the canvass for subscriptions in their respective parishes, and to the many kind friends who have in various ways contributed to the support of the Home, or the improvement or entertainment of the children. Without disparagement to others, they desire especially to refer to the Union Steam Shipping Company, Mr. T. Henderson, jun., their local manager, and Captain McGee, of the "Te Anau," for the annual treat and trip to Motutapu; to Mr. Crowther for his usual gratuitous supply of conveyances for the children to and from the steamer; to the Devonport and Northcote Steam Ferry Companies for free passes for the children of the Home by their boats; to Mrs. Holland for the gift of a cow: to the Eev. W. Tebbs and Mrs. Tebbs for the examination of the school; to Mrs. Eeader Wood for her annual kind treat and presents to the children ; and to Mr. and Mrs. Eaynes for their annual liberal gifts for the children's Christmas dinner. The Orphan Home has now been established a quarter of a century. During that period it has maintained, educated, and placed in a respectable station of life many orphan and destitute children, who would otherwise have been left to swell the numbers of the vicious and depraved in our community. To mention one simple instance : The Board had recently an application from a respectable couple to adopt a child from the Home. It transpired that the female applicant was, as a child, one of those for whose special care and maintenance the revered founder of the Home made himself personally responsible under solemn promise to their dying mother, and for whom in the first instance he established the Home. The institution by its work commends itself not alone to the social economist, the philanthropist, and the earnest Christian, but to the hearty and liberal support of all classes of the community. The report of the honorary Medical Officer (Dr. Coon) shows that the health of the children during the year had been good.

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