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gentlemen whom I can thoroughly rely on to do their duty faithfully and impartially, and at the same time maintain an even temper and pleasant manner, so that no candidate has ever had cause for a word of complaint. The number of candidates for foreign-going and home-trade certificates has again steadily increased, though the increase, as in the previous two years, is principally confined to Auckland, where the total number of examinations has considerably exceeded that of all the other principal ports put together. The total increase in the number of examinations held during the last year for foreign-going and home-trade examinations is nearly 25 per cent., but the number of successful passes for the year only shows an increase of 15 per cent. In January of this year two very important additions were made to the work and knowledge required of candidates for foreign-going certificates, viz.: — (1.) A candidate must have attended the course of five St. John Ambulance Association lectures, and must produce the authorised certificate signed by the surgeon instructor, as also a certificate in the approved form of the association from the surgeon examiner that he has attended the full course, and has successfully passed the required examination showing that he is qualified to render first aid to the injured. (2.) Candidates for examination for certificates of competency for all grades of foreigngoing and home-trade certificates are now required to be conversant with the Morse and semaphore alphabets, and with the British Signal Manual. Candidates for the extra-master certificate are, in addition to the ordinary examination in the method of signalling, required to show practical proficiency in both the Morse and movable semaphore methods of signalling — i.e., the ability to make and take in signals by both these methods with reasonable speed and accuracy. It has been no easy matter for the Examiners to find time, in the midst of their many and various other duties, to study, exercise, and make themselves proficient in this latter very important examination. I am glad, however, to be able to report that having lately paid a visit to the Examiners at Auckland, Lyttelton, and Dunedin, I find that at each port one at least of the Examiners is conversant with the methods of signalling by both the Morse and semaphore, and at the first two places the Examiners are getting fairly expert at both reading and making the signals. Captain Marciel, of Lyttelton, even exceeded the test speed of six and ten words a minute. Captain Beaumont, of Dunedin, hopes soon to make himself an expert, but he has been somewhat handicapped lately by a rheumatic arm. As it requires constant practice, which it would be very difficult for the Examiners to get, to keep themselves up to the mark of being able to read and make signals at the rapid rate required for the voluntary examination —viz., six and ten words a minute respectively for the flag waving and semaphore signals—the senior officers of the Defence Department at the various ports have kindly promised to lend one of their expert signallers to assist the Examiner, should he so desire, when such an examination is being conducted. Captain Dykes, whose appointment was mentioned in last year's report, has conducted nearly all the examinations in Auckland during the past year, Captain Fleming or Captain Atwood assisting in the viva voce examination when necessary. The examination rooms in Auckland are now in the Customhouse, which has lately been enlarged. No candidate has yet applied to be examined for the grade of second mate home-trade, notwithstanding that the regulations have been amended to allow one year and a half of service as second mate to count towards qualifying for a master's certificate. There have been very few examinations this year for fishing-boat or cargo-vessel master, and not one for the restricted limits sailing-vessel master. With regard to this latter examination and qualification, I mentioned in my last year's report about the curious anomaly arising, and it will be unnecessary for me to repeat myself again. Regulations were made last year to entitle the master of a cargo-vessel plying in the home-trade, or extended river limits, whilst holding a certificate of competency as master of a fishing-boat or cargo-vessel under 25 tons register, to be examined for a certificate as master of a home-trade vessel. No alteration has yet been made in the law allowing a master with only a river steamer's certificate, and only one year's service in a harbour, lake, or river, to command passenger-vessels running to all ports of the extended limits, such as between Auckland and Whangarei. Although ship-owners, in their own interests, generally secure masters with hometrade certificates, or with many years of experience in the trade, to take charge of their larger steamers when running in the extended limits, yet there is the possibility, under our present laws, of the lives of passengers being risked by some young man without experience taking charge of his own vessel to save the expense of a more competent and experienced master. In August of last year Mr. John King Davis, chief officer of the Antarctic exploration ship "Nimrod," passed very successfully the examination for extra master. It was pleasing to see the pains lie must have taken to acquire such a grasp and knowledge of the subject of naval architecture as he showed that he possessed, both by his written answers and the viva voce examination. In January of this year the extra master's examination has been still further stiffened by requiring candidates to be proficient in the Morse and semaphore signalling, in addition to all the other work, and the proficiency required can only be obtained by frequent and constant practice. No doubt the increased difficulty of the examination will deter some from attempting it but I believe there will still be found in New Zealand, as in other countries, those who will be spurred on by the very difficulty of the examination to fresh determination to overcome the difficulties, especially as the new work is of a practical and useful nature. I wish the navigational part of the examination could alsp be made more practical and of a more useful nature to navigators. I have, &c, Harold S. Blackburne, Principal Examiner of Master and Mates

2—H. 15,

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