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stipulated in section 3 of the principal Act, which obviates any advantage being given to any particular section of shopkeepers. There is still, however, a certain amount of friction among the shopkeepers, caused through the small shopkeepers being allowed to choose their own closing-day. The concensus of opinion appears to be that all shops should observe the closing-day as fixed by the Act in sections 10 and 11. If this were done it would most effectually silence any complaints which may arise in this connection. In support of the foregoing opinion, I may state that, out of 134 small shopkeepers in this district who have the option of choosing their own closing-day, only some fourteen have signified their intention of keeping open on the recognised day of closing. Employees' Liability. There is grave cause for complaint amongst certain sections of workers in this district in respect of the arbitrary manner in which deductions are made from men's wages by employers to provide premiums for accident insurance. In many instances the employes' wishes are never consulted, and they are not aware of such an arrangement being in existence till pay-day arrives. Where work is constant the deductions are not so severely felt, but instances have come under my notice where sums of 10s. and under paid for casual labour have been taxed to provide premiums. In the latter cases no intimation is given to those concerned as to what benefits they are entitled to, or how long they continue ; and it is very problematical whether any would be forthcoming in the event of accident or disablement. It is, moreover, doubtful whether this scheme of insurance is beneficial to the employe. If an accident happens, the employer is powerless to pay the claim unless the insurance company permit him to do so, and the company can fight a claimant from Court to Court until the latter's means fail, and he has to abandon his case ; in fact, the employe is fought with funds found by himself and his co-employes. " Servants Eeqistey-offices Act, 1895." In accordance with the powers vested in me by the above Act, I have taken over from the City Council all books and documents in connection with this department. There are twenty offices on the register for Dunedin and suburbs, whom I have notified of the alteration of the law, likewise given personal explanations on its application; and have also served them with the new scale of fees chargeable to employer and employed. Notwithstanding this, I have had to prosecute one of those who come under its provisions for a deliberate breach of sections 8 and 16, when substantial penalties were inflicted. I successfully opposed the granting of a license in the case of a person who was practically put up as a dummy for a licensee whose license had two convictions indorsed thereon. I have, &c, H. Maxwell, Inspector. E. Tregear, Esq., Chief Inspector of Factories, Wellington.

Sir, — • Department of Labour, Dunedin, Bth April, 1896. I have the honour to present my report for the year ending the 31st March, 1896 :— The year just ended has been characterized with a growing improvement in trade. Especially so has this been the case in the building line, which may be attributed to the lowering of the rates of interest, along with a more hopeful view of things generally. During the year 226 men have been sent to Government works, also 87 to private employment, making a total of 313 adults, with 941 persons depending on them. Comparing the two last years, there is a falling-off in the numbers so employed this year by 190. This can be partly accounted for from the fact that the number of men usually sent from here to the Catlin's district has been greatly lessened. In fact, the number now sent is almost nil, in consequence of the settlers there having, it is averred, a preferential claim to the work in that district. In viewing this change, I cannot help thinking that the idea may be prosecuted to too great an extent, which will ultimately tend to create jealousy among the men as a whole. At the same time this may help to increase the spirit of selfishness among those who get the monopoly of the work. It will be conceded, I think, that men in the country districts, with their little plots of ground from 10 to 100 acres, are in a far more impregnable position in keeping the wolf from the door than the class of unemployed who frequent the towns. Most of them are aged, and burdened with large families. If some scheme were devised in which the latter could be put in possession of a few acres of ground at a small rental in close proximity to the town, it certainly would obviate the difficulty to a large extent. Along with this I feel convinced that a State farm in Otago, systematically managed, would also tend to lessen considerably the ranks of the unemployed, and at the same time make the farm a paying concern. In going amongst the men from time to time on the different co-operative works, and closely observing their movements, I have been agreeably surprised to witness them working so energetically, without that eternal slavish supervision which becomes so necessary under the old contract system. This fact, I think, goes to prove beyond a doubt that the co-operative system cf labour is far more natural and consonant to men's minds than the one above-mentioned. It was also satisfactory to notice that some of the men had been able to take up land, and were improving it, while others, who were at one time engaged on the Otago Central Railway, had found remunerative employment in one district prospecting for gold. Speaking of this, lam credibly informed that one of our Dunedin mechanical engineers has patented a cheap and simple machine which will fall within the means of a few working-men. As the demand for them increases, it is expected that they will entirely revolutionise the gold-dredging industry of our riverbeds, and also give employment to vast numbers of men.

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