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is, to say the least, unwise. Two such institutions would not only increase the expense per student, but would of necessity interfere with efficiency, it being a well-accepted fact that one large and well-equipped school can more easily and more efficiently deal with the work than two, which of necessity must have smaller staffs and fewer students. It appears to me that if it is necessary on the score of expense to the student that instruction should be given nearer home, the simpler way out of the difficulty is for centres at a distance to offer scholarships which will be of sufficient value to enable the holder to take up residence at a school already established and fully equipped. I am pleased to note that the Public Works Department has appointed several Engineers from the ranks of our graduates, and is also offering special facilities for a two-years course to those of their officers who wish to avail themselves of the opportunity. Since it is necessary for Government Engineers to be corporate members of the Institute of Civil Engineers, the fact that the course at the Canterbury College School of Engineering is one of the few that is recognized by that body is, in this connexion, of considerable value to our students. Only three such schools of engineering outside Great Britain are thus recognized —viz., those of the McGill University, Canada, the University of Sydney, and the University of New Zealand. The numerous appointments held by ex-students of this school bear evidence of the fact that the training given is thorough, and that there is no difficulty in well-qualified men obtaining good positions. School of Art. —This account shows a profit on the year's working of £218. The Government capitation for free places fell from £151 in 1912 to £48, but the capitation for technical classes shows an increase of £273 on that received for the previous year. Fees received from students totalled £470, as against £412 in 1912. The amount paid in salaries was £1,778, an increase of £111 on the total paid in the preceding year. The credit balance at the end of the year was £1,008. In 1912 the Director was able to report that the attendance was higher than in previous years, and it is pleasing to record that the value of the school is fully recognized, as is shown by the fact that a still larger number of students avail themselves of the opportunities offered them. There are only two means by which the public can judge of the class of work that is being carried on in the school—viz., the annual exhibition of work at the close of each year, and the display made at the exhibition in the Art Gallery. At the latter this year a Board room was designed and equipped for the purpose of this display, and this showed very clearly the excellence, both in design and decoration, of the work of the students, while the completed work shown on the walls and in the rooms of the school itself pointed very clearly to the thoroughness of the teaching given, and proved that steady advance is being made in the various departments. The students again competed with the students of the schools of art in Great Britain, and it is a matter of congratulation that they met with a considerable measure of success, one obtaining a National prize, while five others were commended for their drawing and painting from still life. As the conditions of competition have now been so altered that students from outside Great Britain can no longer enter, there will not be the same means of comparing the work done here with that done at Home. In view of this it would be a wise thing if the Government of New Zealand was approached with the idea of arranging for a competitive display of the work done in the various schools in the Dominion, and of giving some distinctive award to the successful ones. At present the only examination held by the Government is that for teachers belonging to the Education Department, and that is only for such drawing as may be required to obtain a primary-school teacher's certificate. Were some such scheme as I have mentioned above adopted it would be a means of enabling those who take up art as a profession to obtain a diploma. This is done in England by some, of the educational bodies, and the diplomas granted have a distinct value. I have in a former report suggested that a travelling scholarship should be granted to a brilliant student, and it appears to me that the time has come when such a scholarship should be established, and this proposal, in conjunction with the one mentioned above, might be submitted to the Education Department, and the Government thus approached with a view of enabling successful students to obtain fuller recognition of their work. For some time it has been felt that more accommodation was required at the school, and as by careful management a balance of £1,000 is available for use in this direction, an effort will be made to build additional rooms for painting and for lectures. If such an effort is successful it must greatly improve the conditions under which the staff and the students can work. Extract from the Report of the Professor in Charge, School of Engineering. The attendance at the school probably reerched low-water mark in this year; the number sitting for examination was also a minimum. Many causes have operated to bring this condition of affairs about. In the case of University students the change in the length of course had a marked effect, many preparing for entry deciding to study for another year before going up for examination. The teaching of engineering at technical schools in other centres has diverted students who would have come here for the associateship courses, and who in some cases have been led to believe that they are undergoing a preparatory course of training for the School of Engineering. It cannot be too widely made known that the training given at these institutions is no more fitted to prepare a student for taking up our engineering courses than it is to prepare him for those leading to the B.A. and B.Sc. degrees: this will be the more evident when it is remembered that a University student has to keep terms for at least one year in B.A. subjects before sitting for the Engineering Entrance Examination. The number of evening students has been much reduced by the competition of the local Technical College, where efficient free instruction is given by old Canterbury College students in many of the engineering subjects taught here. Such duplication of teaching in the same town is to be deplored; indirectly, however, it