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the principal medical officers to inspect or make themselves acquainted with details which should come within their view, their administration practically being limited to the town in which each resides. I need not point that this is almost fatal to the proper administration of the service. From reports furnished I judge that on the whole medical officers are taking more interest in their work, a larger number having earned capitation than formerly. There is still, however, a great deal of room for improvement, and there are a certain number of officers whose names are on the medical list, but whose civil duties apparently preclude their being able to attend to their military ones; these should be struck off. Authority has now been granted to add to the establishment four men per company to act as regimental stretcher-bearers or " first-aid men," and earn capitation purely as such. In training these men the medical officers will have the opportunity afforded them of having these definite duties to do, and of being something more than honorary members of their units, and therefore should take more interest in their work. There is an improvement in the standard of education in the Field Hospital corps, and these men are gradually growing into a useful body of trained hospital orderlies who can be of considerable benefit to their respective districts. The strength of the companies remains about the same as last year, while the Wellington company which was disbanded has been started again with a respectable roll, and will, I have little doubt, now prosper. Certain equipment is still required, such as medicine-chests for camps, stretchers, &c.; these should be provided in the form of " medical companions " such as I have already recommended, also a supply of " first field dressing-pads " for use in emergencies at field training, &c. The training of the new regimental stretcher-bearers will require more stretchers, as at present each battalion has only one. One ofthe new ambulance wagons is just finished, of the two authorised, and will shortly be sent to headquarters for approval. A second one should be supplied for each district. The equipment on issue to field hospitals and forts is reported to be in good condition. lam entirely against purchasing more stores or equipment than are actually required; they soon become obsolete, and the money is wasted, and my recommendations only include what is necessary—such articles as could not be readily obtained on the outbreak of war. Transport and Supply Corps. No transport or supply corps exists. I have repeatedly applied to be allowed to establish the nucleus of such a corps, and pointed out how necessary it is men should be trained to these duties. It is unnecessary that companies such as exist in standing armies should be formed, but sufficient to meet the requirements of peace manoeuvres, capable of expansion to what would be required for the work connected with the troops called out for the defence of the country in the event of war should be available. As has been truly said, " No part of the military mechanism is more delicate or more important than the question of providing the men with the right kind of food, in the right quantity, and at the right time." Certain corps have generously volunteered to establish company and battalion carts in return for a pound-for-pound subsidy, but I am not in favour of this arrangement. A mixed lot of transport impossible to control would be created, and confusion would result. Veterinary Corps. No veterinary corps —except on paper- —exists. I applied for the appointment of a gentleman as principal veterinary officer, but the application was not approved. With a principal veterinary officer the corps could very soon be organized, and regulations have been approved which, with the exception that capitation is not to be granted to veterinary officers, are suitable. Capitation should certainly be granted; it is given to medical officers, and veterinary officers should not be treated differently. Much benefit would result from the establishment of this corps, and officers and men would receive instruction as to the care of horses, &c, which, in very many cases, is greatly required. The cost to the country would be very small; indeed, a saving might possibly result, as regulations now admit compensation for accident to horses, and loss in such cases would often be avoided were the services of such officer available. Cadet Corps. There are fifty-nine cadet corps under the Defence Department. So far as has been possible cadet battalions have been formed, and seven of these now exist; this organization has been productive of satisfactory results. Nearly all corps went into camp during the past year, and derived much benefit therefrom. The capitation grant has been increased to 7s. 6d., but is still too low, especially in the case of senior cadet corps — i.e., those composed of boys who have left school; even the £10 per annum granted to these corps in addition to their capitation does not enable them to exist. The corps attached to schools are in a very satisfactory state as regards efficiency. Of those outside schools, some corps are not in a very satisfactory state, mainly owing to want of funds. The system of training has been improved, and more attention is now paid to thorouhgly grounding the cadets in the fundamental portions of a soldier's training. It is a mistake to try and teach cadets too much, and gives them an idea they know all there is to be learnt and a disinclination to join adult corps. I would recommend an increase of fifty rounds of ammunition per cadet. No corps can afford to buy ammunition, and the extra practice would be very beneficial in many ways. Under present regulations little or no control can be exercised over cadets in the senior cadet corps; they cannot be sworn in, and the personal influence of their officers is the only controlling

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