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quarters are to participate in this benefit or not. Even though the present scale is adhered to, a fairly large saving ought to be made in this item. Examinations foe Promotion. In my report of the 31st March last I suggested that a system of examination of candidates for promotion should be introduced into the force, and I intended at that time to give immediate effect to the idea. But, on consideration, I have delayed the introduction until I could prepare a volume of police statutes, which should be placed in the hands of every member of the force, and contain in handy and portable form all or most of the statutes in which they would require to pass examination. By these means all candidates would be placed on an equal footing, and would have no cause of complaint that they had not access to our laws. lam strengthened in this decision by the fact that it is unlikely that any promotion will be made in the rank of sergeant or first-class constable for the next two years, since we are, as I have before shown, in excess of our proper strength in both these grades. I attribute great importance to the compilation of this book of statutes, for it cannot fail to assist all members of the force who desire to learn their profession, and will remove from the lazy all valid excuse for not doing so. Duties, othek than Police, peefoemed by the Foece. In addition to the ordinary duties devolving on police officers, no less than thirty-eight sergeants and constables are now employed as Clerks of Courts and as bailiffs. These are in addition to the men who, under the provisions of Circular No. 6, 1881, act as bailiffs in remote districts where the Justice Department have no officers. By these means the last-mentioned department is able to make a large saving. Whether this form of employment for constables will be a success from a police point of view is doubtful, but the system is well worth a trial in those country districts where serious crime is of rare occurrence, for it has the merit of economy, and no complaints have as yet been received that the constables neglect their own special work. At the same time, every man so employed must understand that no excuse will be allowed for failure in the repression or detection of crime, on the plea that they were employed in the work of Clerks of Court. Behaviouk of the Police Fobce. I have much pleasure in reporting that the behaviour of the force has been admirable, not only from the standpoint of moral conduct, but also from the personal courage shown by members of the police on every occasion where there was an opening for such display. Sergeant Stagpoole nearly lost his life by attempting to save the lives of a boatload of people who were upset in Tologa Bay, and Constables Christie, Cartinill, McDonnell, and Nestor have been recommended for the Boyal Humane Society's medal for saving life. I would also bring specially before the notice of the Government the admirable manner in which Inspector McGovern effected the arrest of the Hauhau fanatics at Waihou. These men offered a most desperate resistance, using tomahawks and spears freely. Any hesitation or want of courage on the part of our small party would have been followed by disastrous consequences to the peace of the district, for had our men been beaten off on the first occasion there can be but little doubt that any after attempt at arrest would have been resisted with guns. As a reward for service on this occasion Third-class Constables Sef ton, Hogg, and Hughes have been promoted to second-class, and First-class Constables Moar, Gordon, O'Eeilly, MeGilp, and Coghlan will be rewarded through the Eeward Fund. The arrest of Te Whetu and party at Parihaka by Inspector Pardy deserves similar notice, for here also our men met with a fierce resistance (though not of so serious a character as that at Waihou), and behaved exceedingly well, as did also the Permanent Militia who accompanied them. Under your instructions First-class Constable Kelly, whose seniority, ability, and good conduct have on many occasions entitled him to consideration, has been promoted to acting-sergeant: and Third-class Constables Twomey and Hickman to second-class. Constables Eoche, Eollo, and Hendry will be rewarded by a gratuity from the Eeward Fund. SUPEEANNUATION FUND. There is a very general feeling in the force that steps should be taken by those in authority over them to provide a Superannuation Fund, whereby men of the age of sixty years who have served the colony creditably should retire on a pension at that age. It would appear to me to be impossible to introduce this system generally into the present force, for the reason that so many of the men are middle aged, and consequently the payment of the yearly premium on each pound of future pension, which, at the age of forty would be 4s. 10d. (vide Schedule VII.), would be altogether beyond their means. This premium may be slightly reduced should Parliament see fit to make a yearly grant-in-aid instead of giving a retiring allowance of one year's pay after twelve or more years' service, and by paying all fines collected from the police into the fund. These items, together with possible forfeitures for extreme misconduct, would enable men up to the age of thirty-five to enter into the scheme with advantage to themselves and to the public. To secure a pension of £100 per annum at the age of sixty years a man of twenty-one years would pay annually £7 Is. Bd., and a man of thirty-one years £12 Is. Bd.; and there is no reason why a man should not take a less amount for his pension, provided always that the sum insured should not be for less than £50 per annum. Even though the Government should assist the fund as above indicated, I see no possibility of its application to men now over the age of thirty-five ; and, should the Government not assist, there is still no reason why men already in the force between the ages of twenty-one and thirty-one should not join, or that it should not be made compulsory on all those joining hereafter.