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During the*year considerable exterior and interior renovations were carried out to the main institution buildings, Pedestals, cabinets, and. floor-rugs have been provided in the cubicles'; and a three-bed hospital, which is well equipped, was completed during the year. To provide extra bedroom and bathroom accommodation for the single officers, extensions wore carried out to the officers' quarters. The question of providing adequate sewerage for the institution and the staff cottages has been investigated and arrangements made for the work to be put in hand. Since the western portion of the estate was exchanged with the Mental Hospitals Department in 1927, the buildings taken over with the property have been occupied as a separate institution. When the musters were high this arrangement was found quite convenient, and the " Camp " buildings served a useful purpose as an overflow block. Recently, with decreased musters, only a minimum number of men could be quartered at the " Camp," and it has been found expedient to transfer the men to the main buildings and transport them to the outlying portions of the farm each day by means of motor-trucks. This arrangement has resulted in labour economy, and there has also been a certain number of the staff released for other dutiesThe farm section has progressed satisfactorily, and, although the dairy herd has been reduced, increased market-values have maintained revenue at the high level of £17,023 for the year, exclusive of the value of a large quantity of produce consumed at the institution for rations purposes and on the farm itself. Nearly all branches of farm-work are carried out, including dairying, cattle, sheep, horse, and pig raising, vegetable, fruit, honey, and tobacco culture, and ordinary crop-production. Topdressing on the usual maintenance basis was carried out, and an area of 53 acres was sown down in permanent pastureDairying is the main farm activity, and during the season 1937-38 an average of 416 cows were milked, with an average butterfat production per cow of 291 lb. The total milk-yield was 2,804,485 lb. ; cream-yield, 258,618 lb.; and butterfat produced, 103,534 lb. The average cream and milk tests were 40-61 per cent, and 4-28 per cent, respectively. Of the total cream supplied to the factory, 88-42 per cent, was graded first quality. Herd-testing was carried out by inmates, and the heifers were subjected to the tuberculin test by a veterinarian of the Department of Agriculture, with the result that very few were reactors. All supplies of beef and mutton both for this institution and that of Auckland Prison were obtained from the farm. The quality of the meat produced on the farm received favourable comment from visitors to the institution. Good prices were obtained for all hides, skins, and tallow disposed of through the auction-rooms. I n the sheep section a total of 102 bales of wool were produced during the season, while 2,340 lambs were sold for export. The garden continues to be a valuable asset and provides the institution with the whole of its requirements of vegetables, and any surplus finds a ready market at satisfactory prices. Young trees are grown in the nursery for eventual planting out on the farm to provide essential shelter for the stock. During the past season no tobacco was grown, but a further 4 acres were planted out in the spring, and if weather conditions remain favourable a good crop should result. For the orchard the season was a poor one and only 1,830 cases of apples were produced, giving a revenue of £305. Apart from the apples supplied to the institution as a change of diet for the inmates, the whole of the apple crop was disposed of either locally or through the auction-rooms. A much heavier yield is expected during the coming season. During the off-season a further 450 young trees were planted out, and an excellent strike was obtained. These extra trees should make a valuable addition to the orchard at a later date. Prom the apiary 6,890 lb. of honey received a ready market, the revenue from this source being £177. The prospects for the coming season are, however, not so bright, and apiarists, generally, are expecting a much lower crop, mainly through unfavourable weather conditions in the spring and early summer. The following crops were harvested during the year : Ensilage, 251 tons ; hay, 162 tons ; oaten sheaves (for chaff), 49 tons ; potatoes, 77 tons ; artichokes, 24 tons ; and horse carrots, 30 tons. The swede crop proved a failure, and after an investigation by an officer of the Agriculture Department the trouble was traced to dry-rot, which had been seed-borne. The majority of the crops are raised for the requirements of the institution and stock, but potatoes are disposed of to all prisons in the North Island. The usual display was made at the annual show held under the auspices of the Te Awamutu Agricultural and Pastoral Association, and several firsts and numerous second prizes were secured. The institution exhibit always attracts considerable attention and favourable comment from the general public. The conduct of the staff generally has been very satisfactory, and a suitable standard of industry and discipline has been maintained by them throughout the year. In conclusion, I desire to record my appreciation of the co-operation of the members of my staff throughout the year. Point Halswell Borstal Institution. (Superintendent, Miss A. E. Stswkll.) For the second year in succession the number of inmates in the Borstal Section has shown a decrease ; we commenced 1938 with 15 inmates, 8 were admitted during the year and 11 discharged, leaving 12 girls in the institution on the 31st December. Ail the 11 girls discharged were released on probationary license.

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