B.—l.

According to this statement, the Boards should have had on the Maintenance Account, at the end of 1906, a cash balance of £70,864. Of course no such fund is in existence. The total cash in hand on all accounts was only £59,075, while on the joint Buildings Account it was £32,096, or, deducting the special donation of £10,000 mentioned above, £22,096. Time has not permitted a fuller investigation of this matter, but it is evident that the restrictions with which it was intended to invest the funds granted for this special purpose have not been effective. MILITAEY AND PHYSICAL DBILL : PUBLIC SCHOOL CADETS. The Education Act provides that " in public schools provision shall be made for the instruction in military drill of all boys " ; and it is declared to be the duty of the Board in each district " to cause physical drill to be taught to all boys and girls over the age of eight years attending the public schools in the district." The number of children returned as receiving instruction in drill in the public schools of the colony at the end of the year was 135,363. The term " drill " here must be taken to include physical and disciplinary exercises. There were on the 31st March, 1907, 280 cadet corps, with a strength of 14,848 members, equipped with the " model rifles " (dummies) which have been imported by the Department for purposes of drill, and with a percentage of miniature MartiniHenry rifles for target practice. The number of cadet companies in the several districts was as follows : Auckland, 57 ; Taranaki, 10 ; Wanganui, 28 ; Wellington, 35 ; Hawke's Bay, 33 ; Marlborough, 5 ; Nelson, 15 ; Grey, 8 ; Westland, 3 ; North Canterbury, 17 ; South Canterbury, 9 ; Otago, 39 ; Southland, 8 ; Chatham Islands, 1 ; sections attached to corps, 12 : total, 280. The number of battalions formed was 30. The number of model rifles on issue to the cadet corps at the end of the year was 14,000, and of miniature rifles 1,000. At the end of the year the companies in the North and South Islands respectively competed for two challenge shields presented by the Government. The conditions were that each competing squad should consist of ten cadets, all belonging to the same company or detachment; each company to have seven shots at 100 yards (standing), 150 yards (kneeling), and 200 yards (lying), the local range being used in each case. The North Island shield was won by the Terrace (Wellington) Cadet Company with a score of 730 out of a possible 840 ; the South Island shield was won by the Port Chalmers Company with a score of 747. For the valuable prizes presented by the Colonial Ammunition Company and the Weekly Press Company there has not been the competition that was expected. The two cups given by the Colonial Ammunition Company for competition in the South Island have been awarded to the Kaikorai and Waimate Cadet Corps respectively, upon scores of 79 out of a possible 84, made by Cadets Charles Sountagg and Sydney Hurst. The two cups for the North Island have not been awarded. The Weekly Press challenge shield for the South Island was awarded to the Waimate District Hight School Cadet Corps in competition with ten other corps. The North Island shield has not been awarded. By private benefaction for the encouragement of rifle practice, the Wairoa and Frasertown (Hawke's Bay) cadets, the Johnsonville (Wellington) cadets, the cadets of the Marlborough Education District, and those of the Otago No. 3 Battalion have obtained valuable prizes for local competition. The expenditure for the year 1906 was £4,528 7s. Bd., made up as follows :— £ s. d. £ s. d. Salary of Commanding Officer ... ... 310 0 0 Clerical assistance ... ... ... ... 182 10 0 Travelling-expenses of Commanding Officer ... 264 8 0 756 18 0 Capitation ... ... ... ... ••• 1,494 0 0 Arms, accoutrements, ammunition, &c. £2,420 11 5 Less recoveries .... ... 798 18 10 1,621 12 7 Eent, &c, of rifle ranges ... ... ... 105 8 8 Railway fares of cadet corps ... ... ... 195 14 0 Training camps ... ... •■ • •■ ■ 288 10 6 Contingencies ... ... ... ••• 66 3 11 3,771 9 8 4,528 7 8

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