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Dr. Duncan reports: — " In the aggregate there lias been an increase in ths general receipts for bhe year : this mainly due to fees from the Sanatorium patients and baths. "In July, 1919, the Sanatorium was handed over by the Defence Department, and reconstituted for civilian patients. Also, later in the year, the King George V Military Hospital was able to deal with the majority of their patients requiring mineral-water treatment. This made our own baths available for a greater number of the general public "For the first half-year the consultation fees were markedly diminished, owing, no doubt, to the various administrative changes. "During the past year many changes have occurred in Ihe massage staff, which al times lias led to considerable difficulty in the work. However, the present staff, which has been chosen with a keen regard to qualifications and efficiency, are quite alive to the besi interests of Ihe place, and the work should be maintained at a higher standard. " Naturally, following upon a portion of the strictest economy in expenditure during the war, there will be a greater outlay required on repairs and additions to keep the baths and treatments in line with the progress of science during the past few years. Already equipment brought from the New Zealand General Hospital in England has been purchased from the Defence Department, and lias, in part, been installed; however, extra accommodation will ]>c required to bring our treatments to the level of the most up-to-date spas in Europe. " Also, at the present time various works are in hand for an augmented supply of mineral waters, as the past season has indicated an increasing popularity of this place, and with I he present tide of tourists and patients we have not a sufficient supply of mineral waters to meet the demand for our treatments. " The work of painting and repairing the main bath building is in progress, and, when finished, will greatly add to the attractiveness of this place. " Since I have taken over administrative control of the baths at Itotorua 1 have had the opportunity of appreciating the zeal and good work of the various members of my staff, and would like to place on record my indebtedness to their interest and co-operation in carrying out my work as Government Balneologist. "In conclusion, 1 should like to state thai, with the closing of the spas in foreign countries to British and Allied nations, one expects that a fair proportion of patients will migrate to our Jiotorua Spa for treatment. Especially does one anticipate an influx of visitors from America and Australia. Therefore, it would bo a wise policy to put our house in order to meet this highly probable contingency." The total revenue from this branch was £7,621, against .£7,264 for last year. Waitomo Caves. The year just ended has been very successful. The increased popularity of this resori has resulted in an increase in cash of £2,833 over hist year, and 3,10!) more people visited the hostel and caves than last year. All buildings, fences, and tracks have been maintained in good order throughout the year, and lately a start was made on the work to provide a gravitation water-supply for the hostel. Uood progress has been made on this work, and a temporary supply of water has been laid on until more labour is available to enable the work to be completed. The following is a statement of receipts received for the year: Accommodation, .£3,597; cave fees, £2,785; equipment, £267; rent, £11; cattle, £32; photographs, £7: total, £6,699. dumber of visitors, 7,721. A commencement has been made in carrying out a scheme which will provide for a greatly improved water-supply for this establishment. Rights have been secured to the output of a good spring, situated in high country about 7() chains from the hostel. This will enable the water to be brought by gravitation, thus eliminating the present expense of an inferior water from the river. The reservoir has been placed in the hill above the house, which will enable the water to be delivered at the hostel at a fair pressure in case of fire, Te Aroha. Altogether Te Aroha has had a most, successful year, the receipts showing a satisfactory increase from £1,370 to £1,798. The baths taken increased from 28,466 to 38,376. All the bath buildings, springs,'and playing-areas were maintained in good order, and the ground for two new playingareas was surveyed and a start made in a work which will have the effect of relieving the congestion which at holiday time sometimes prevails. Waikauhmoana, Tβ I'uia, and Morere, There is little to report in connection with these resorts. At the first-named it was decided to discontinue the system of paying a subsidy to the management, and to place a permanent married couple in charge. Various minor repairs will be effected before the coming season; but there is great need for a more commodious and up-to-date building. The proposed new building at Te Puia was not proceeded with on account of the cost, and the caretakers, Mr. and Mrs. Cottrell. have maintained the baths at great difficulty and inconvenience. Minor improvements were effected at Morere, and it is intended to place a caretaker permanently in charge. Tongabiro National Park. The shelter-hut at Whakapapanui was oompleted and was largely availed of. It will certainly be found to be inadequate for the growing traffic, and the erection of further huts and Ihe making of road is now under discussion between the Department and the gentlemen most interested in the sport and development of the district. Hermitage. The season has been an exceptionally heavy one at this resort, Over nine hundred people visited the Hermitage, and Ihe managemeni wa<* compelled to occasionally decline visitors, though

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