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During the absence from the Dominion of Mr. R. B. Morris, who represented New Zealand at the Postal Union Congress at Madrid, Mr. A. T. Markman acted as Secretary. Cost-of-living Bonus and Married Officers' Allowance. From, the Ist April, 1920, the cost-of-living bonus was cancelled and salaries were increased by £50 per annum for officers in receipt of over £140 per annum, and by £20 for those in receipt of salaries not exceeding £140. From the same date the minimum payment to married men of twenty-one years of age and over was fixed at £207 16s. per annum for salaried officers and 15s. per diem for wages-men. ' Travelling-allowances . Owing to the general increase in the charges for accommodation, it was necessary to revise the schedule of travelling-allowances. An improved scale of allowances came into force from the 12th August, 1920. Overtime Rate and Relieving-allowances. From the 23rd March, 1921, an improved scale of payment for overtime was adopted providing for rates up to a maximum of 3s. 6d. per hour. From the same date an improved schedule of relieving-allowances came into force. Board and Residence for Junior Officers in Wellington. In view of the difficulty experienced by junior officers of the Department in obtaining suitable board and lodgings in Wellington, the Department inserted an advertisement in the local newspapers inviting private householders in the city and suburbs who could accommodate such officers to have their -names recorded at the General Post Office. As a result of the advertisement, several junior officers were suitably placed. Appeal Board. Section 10 of the Post and Telegraph Amendment Act, 1920, made retrospective to the Ist April, 1919, the right of appeal against promotion granted by section 30 of the Post and Telegraph Amendment Act, 1919. During the year there were three sittings of the Board, covering a period of approximately eleven weeks. The number of appeals dealt with was 413. Of these, sixty-six were appeals the hearing of which was made necessary by the legislation referred to in the preceding paragraph. The percentage of appeals allowed was small. At the last sitting of the Board none of the appeals were allowed. Mr. E. C Cutten, S.M., of Auckland, was appointed a member of the Board to fill the vacancy created by the resignation of Mr. F. V. Frazer on his appointment to the position of Assistant Public Service Commissioner. Mr. Cutten was also appointed Chairman of the Board, which position had been held by Mr. Frazer. Examinations. During the year 1920-21 the number of officers who sat for efficiency examinations was 1,640, of which number 1,027 were either wholly or partially successful. Departmental Correspondence Technical Classes. The departmental correspondence classes, by means of which members of the service may receive instruction in technical subjects, have maintained their popularity. The total number of students registered since October, 1919, is 1,170. The number on the roll at the end of 1920 was 642. A course for the Overseers, Construction Branch, has been added; and tuition is now given in six courses. Taken over nine examinations, the percentage of passes obtained by candidates from the departmental classes is 89, a satisfactory indication of the efficiency of the instruction. Telegraph Schools and Classes. A telegraph school was opened at Sydenham on the 23rd July, 1920. On the 15th March, 1921, a class in telegraphy was established at the Hamilton Technical School. Twenty junior officers of the Department are attending. Salaries of Non-permanent Postmasters and Telephonists. The scale on which is based the salary of a non-permanent Postmaster or Telephonist was increased from the Ist August, 1920, by 38$ per cent. In connection therewith the salaries paid at all non-permanent offices have been reviewed, and increases due have been granted. Establishment of Chief Post-office at Hamilton. On the Ist November, 1920, a new postal district was established with Hamilton as the chief post-office. The establishment of the now district was found necessary owing to the growth in recent years of the , Auckland Postal District. By the change the Auckland District has been brought within reasonable limits. The new district contains 232 offices to commence with. Its boundaries are—North : The south line of the Waikato River from the west coast to and including Mercer, and thence to the west side of the Firbh of Thames, but excluding Kaiaua and Miranda. East: The western boundary of the Thames district as far south as the Auckland and Gisborne boundaries. South and west: The boundaries of the Auckland District.