E.—l2.

sideration, and tenders are also being invited for the erection of two additional class-rooms at the College itself. The rapid increase in the number of pupils is mainly due to the recognition throughout New Zealand of the able management of the College under the Principal and his assistant masters, and the present admirable conduct of the boarding establishment. There has been, however, at both colleges a considerable influx of State-school Sixth Standard pupils, the result of the inauguration of the new system, which will make the past year for ever memorable in the annals of the College, and which system, first proposed to the Government by the Council of Governors, has, with some slight alterations, been accepted by many similar institutions throughout the colony. The Governors therefore believe themselves to be entitled to some credit for the efforts now being made throughout the colony, and which bid fair to be most successful in Nelson, to bring the advantages of secondary education more easily within the reach of all classes. The pupils continue to acquit themselves creditably in the public examinations, though work was a good deal interfered with by the outbreak of measles which occurred in the later part of the year, and which was only prevented from spreading through the whole of the school by the thorough isolation of patients, now easily carried out by means of the new sanatorium. Two kept University terms, and one passed the first section of the B.A. degree. One gained a University junior scholarship, and two obtained credit in the competition for these scholarships. Two passed the Medical Preliminary, and eleven the Matriculation Examination, while the names of seven others appear on the Civil Service lists. Generally the life of the school, both in the class-room and in the playing-field, has been marked by energy and enthusiasm and a wholesome moral atmosphere. Among the distinctions gained by old boys of the College special mention should be made of the appointment of Dr. W. P. Evans, M.A., to the professorship of chemistry and physical science in Canterbury College. The scholastic successes of old boys have been duly chronicled on the Honours Board, and the admirable school paper, the Nelsonian, records their doings in the various walks of life. Girls' College. During the year 1902 the roll of the Girls' College showed again an increase on that of previous years, standing in December at 112. The boarding department was taxed to the utmost throughout the year, and the reference already made to the increase of the numbers at the Boys' College applies also to the Girls'. The Governors have now caused plans to be prepared for large additions to the existing buildings, including three class-rooms, a cooking-class room, a studio, fifteen bedrooms, new kitchen, and many conveniences, as well as a gymnasium. From an examination point of view the school was as successful as ever. Of ex-pupils, Misses E. Kershaw and Ida Crump succeeded in passing the final section of the B.A. degree, the latter gaining the John Tinline scholarship for English. Miss Nettie Child kept first year's terms from the College itself. Thirteen girls entered for matriculation, of whom twelve passed, one being on the credit list in the junior scholarship results. Very little sickness has to be reported. Only three cases of English and four of German measels occurred amongst the boarders during the year. The usual classes were held for swimming, singing, drawing, shorthand, and cookery ; and pupils were individually instructed in the pianoforte, violin, singing, and theory by visiting teachers from the School of Music.

2. Statement of Beceipts and Expenditure for the Year ended 31st December, 1902. Endowment Account. Receipts. £ s. d. Expenditure. £ s. d. Rents .. .. .. ■ • 962 4 1 Rates and taxes .. .. .. 6 5 7 Interests .. .. . ■ • • 326 19 11 Law costs .. .. . - .. 4 4 0 School Commissioners' subsidy .. .. 56 5 0 Insurance .. .. .. ... 10 19 0 Refund . • ■ • • • 0 9 0 Printing and advertising .. .. 13 2 9 Stationery .. • .. .. .. 113 3 Repairs .. .. .. •. 0 3 4 Governors' and auditors' fees .. .. 35 16 8 Office-rent .. .. .. .. 25 0 0 Office-cleaning and gas .. .. 10 6 0 Interest on bank overdraft .. .. 44 16 0 Clearing properties .. .. •. 15 15 0 Contractors'deposits refunded .. .. 91 10 0 Secretary .. .. .. .. 52 1 6 Petty cash, postage, and sundries .. 31 17 8 Boys' College. Boarding fees .. .. •• 2,801 3 4 House expenses .. .. .. 1,879 18 1 Tuition fees .. .. .. ■• 1,769 17 0 Tuition expenses .. .. .. 1,592 15 6 Refund .. .. • • • • 10 0 Scholarships—Foundation, endowed, free tuition .. .. .. .. 365 10 0 Governors' and auditors' fees .. .. 37 6 8 Examiners' fees .. .. .. 2 2 0 Stationery .. .. .. .. 75 19 9 Prizes .. .. .. .. 21 1 0 Printing and advertising .. .. 56 1 6 Chemicals .. .. 35 10 4 Gas " .. .. 92 10 0 S Rates and taxes .. .. .. 15 0 0 Insurance .. .. .. ■. 55 18 9 Repairs .. .. .. .. 143 8 6 Furniture .. .. .. .. 514 6 9 Subscriptions to sports and magazines .. 25 5 0 Secretary .. .. .. •. 52 1 9 Forming and improving grounds .. 24 8 0 Sundries . .. .. .. 23 3 8

22