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Rotorua Bath Buildings.—Balneologist's Report. The past year has been a very busy one, and the various establishments under my control have been working at the fullest extent of their capacity. As you will see by the accompanying statement of receipts, there has been only a slight increase in the financial returns, but, so far as the Sanatorium is concerned, the receipts do not represent the real activities of that institution, as an amount of £472 Bs. 6d. has been written off on account of irrecoverable fees. The increasing popularity of the Sanatorium has to a certain extent reduced the numbers of out-patients, as the majority of our rheumatic cases, quite advisedly, prefer to be in a place where they can obtain nursing, correct diets, and the aid of wheel-chairs ; moreover, the economic factor is an important one to many such sufferers. There has been a marked increase in fees from baths and massage, and the item " Miscellaneous " represents mainly the sale of our local mud. In relation to mud treatments, I can strongly testify to the value of our natural muds in clearing up conditions of psoriasis and eczemas. In some cases the cures have seemed almost miraculous—cases which have defied all other therapeutic measures have responded rapidly to local applications of silicated mud, and in view of its efficiency I am finding an ever-increasing demand for its supply from many people who have learned of its virtues. In February last the British Medical Association held part of their annual conference here, when I took the opportunity of demonstrating the various aspects of our treatments in baths, massage, and electrical therapeutics ; also, on that occasion I had the honour of delivering a clinical address to the visiting doctors on our work in the Sanatorium. As 75 per cent, of our cases are sent here by doctors, I consider the conference an important event, inasmuch as it stimulated the interest of the members of the medical profession in hydrotherapy. During the year many organizations held their annual conferences in Rotorua, and the success of such functions has done much to promote the popularity of our health resort. The Sanatorium. —Throughout the year the resources of this institution have been taxed to the utmost, and I have found that our establishment is quite inadequate to deal with the demands. The present building is too small, and I trust that in the near future an institution will be built which will be worthy of the premier spa of the Dominion. The Bathhouse and other buildings have maintained their service throughout the year. The Main Bathhouse is requiring very necessary repairs, particularly in reroofing, a fact which is particularly patent during the rainy season. The new X-ray annex with its modern installation has been invaluable in connection with the diagnosis of joint conditions, and the new diathermy apparatus has done signal service. Massage and Electrical Therapeutics.- -Owing to the press of work during this season I have had to augment our massage staff and reduplicate certain elements in our electrical apparatus. The need for a room to install our Plombiere douche equipment still remains to be fulfilled, and I am in hope of having this effected during the coming year. Staff. —In connection with my work at this spa I have had the loyal and faithful service of my staff in every possible way, and I cannot speak too highly of their excellent qualities. Summary. —Again I should like to stress the necessity for expansion in our work, a work whicl is now accepted by all the leading medical authorities as a most important section of modern medical service. In the coming year I shall have the honour to represent the Dominion at an important conference and exhibition at Budapest, in Hungary. This exhibition will be the occasion of an international conference regarding hydrology and tourist resorts ; and 1 hope, in addition to giving addresses at Budapest, to carry out propaganda work for the Dominion in other countries. Waitomo Caves. It is with pleasure I once again have to report that the cash receipts show another record. The cash amount received was £10,224, exclusive of the returns of one railway excursion not yet received. This amount is £323 in excess of the previous year's record ; and, considering the fact that we had less accommodation than last year, the results are very satisfactory indeed, and is further proof that this resort is gaining in popularity with the travelling public, especially with overseas visitors, who almost without exception come to inspect our underground wonders, which they declare are what we claim them to be —the " eighth wonder of the world." The unusual increase in the number of oversea visiters must be very satisfactory to the Department, for it is proof that the oversea publicity is at last reaping the reward of years of patient labour by the officers of this Department; and the foundation of this part of our work, which was commenced years ago, now that it is bearing fruit, should be greatly appreciated by the people of this country. During the past year 13,155 visitors inspected the Caves, as against 13,331 for previous year, a decrease of 176. The shortage is accounted for by the falling-off in the number of railway excursionists, for we only had 625, as against 1,509 last year. Mr. Cole, the contractor for the new hostel, handed over the new laundry, and. it has proved a great success, being fitted with up-to-date machinery. We are now able to do all the laundry-work independent of weather conditions. The contractor will hand over the new hostel, fully completed shortly, and then our work of catering for the public will be greatly facilitated by the appointments of the building. Arrangements have been made for the adequate furnishing of what should prove to be a first-class up-to-date accommodation-house. The question of properly laying-out the grounds will be dealt with later on.

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