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McCallum, W. H. Macey, W. B. Parker, and A. P. Seymour. The members retiring by rotation in July were Messrs. Duncan, Litchfield, and McCallum, who were re-elected without opposition. The Board held seventeen meetings during the year, three of which were special and two adjourned meetings. Schools.—The number of schools open at the end of 1902 was 60, and at the end of 1903 the number was 59, graded as follows : Grade 0, 26 ; grade 1, 13 ; grade 2,6; grade 3, 3 ; grade 4, 2 ; grade 5, 3; grade 7, 2 ; grade 8, 3; and grade 10, 1 (including side-school). The mean average weekly-roll number for the four quarters of the year 1903 was 1,989 or 165 less than in the preceding year ; the mean average attendance for the four quarters was 1,644, or 101 less than in 1902. The average attendance for 1903 was therefore 82-6 per cent, of the average roll, a decline of about 2 per cent, from the previous year, which is no doubt due to the unusual prevalence of sickness in the district during the year. The falling-off in the roll-number is partly due to the number of scholars who accepted free places instead of remaining another year or two in the primary schools. Teachers.—The number of teachers employed under the Marlborough Education Board at the end of the year was 74—viz., 21 men and 53 women, in addition to which there were 10 female pupil-teachers. Thirty-four of these teachers are certificated, and classified as follows :3, CI; 11, Dl; 2, D3; 1, D4: 5, E2 ; 3, E3; 3, E4. The remaining 40 are uncertificated. It is of course quite impossible to procure certificated teachers for schools in grade 0, but it should not be difficult to obtain the services of young teachers who have lately gained their certificate to take charge of all schools which yield an annual income of £80 or thereabouts. There are now ten positions of this value or thereabout held by uncertificated teachers, and the Board purposes to require all such teachers to sit for their certificates at the next examination, and to call upon them to resign if unable to gain the same. There are several young teachers in the district who hold certificates and who are acting as pupil-teachers, and it is only fair that those who have taken the trouble to qualify themselves according to law should be considered in preference to those who have not. Finance.—The present method of apportioning the funds to the several education districts is, in the opinion of this Board, fraught with grave injustice to the smaller districts. To pay all Boards a uniform sum, plus a capitation allowance, places this and similar districts at a great disadvantage. The sum received by the Board for general expenses in 1903 was £1,182, out of which all the expenses of the Board have to be met, including the cost of inspection and the office staff and_ grants to Committees for incidental expenses. Return No. 4 shows that in 1903 this Board paid £570 towards incidental expenses, exclusive of the cost of minor repairs. This at once disposes of 48-2 per cent, of the Board's income ; so that in this district the Committees cannot complain of niggardly treatment. Only four of the other twelve education districts paid a larger proportion of their incomes to the Committees. Scholarships.—The Board would point out to the Department the fact that out of seventyone scholars who qualified in this district for " free places " in the High School only those residing in the vicinity of the High School or adjacent to a station on the Blenheim-Picton Railway (twenty-seven in number) have taken advantage of free-place privileges; the remainder (62 per cent, of the whole), who may be classed as country scholars, being evidently debarred from secondary education by reason of the expense of living away from home. The Board is of opinion that wider systems of scholarships would to a certain extent relieve this difficulty, and strongly urges the Government to favourably consider the question of an increase in the scholarship capitation so that some of the brighter country scholars may be provided with the means of attending the High School. Physical Drill.—The requirements of " The Physical Drill in Public and Native Schools Act, 1901," are fully satisfied in all the Board's schools, and, even in many of the small aided schools, simple " extension " exercises are given at the commencement of each sitting. Sturrock v. Education Board.—Undoubtedly the most momentous event of the past year in this education district is the result of the legal proceedings with reference to the head teacher of the Blenheim Boys' School. If the effects of the decision were confined to this district the case would be sufficiently serious, but it at once deprives all the Education Boards of the colony of a right which not even the most aggressive of trades-unions has yet succeeded in snatching from any other body of employers whatever. In the past it has often been very difficult to get rid of an incompetent, an indifferent, or an insubordinate teacher; but in future it will be almost impossible to dismiss a teacher, except in cases of outrageous offenders against morality. The following is a brief history of the case :— At a meeting of the Board held on the 9th March, 1903, a letter was received from the Blenheim School Committee, requesting the Board to terminate the engagement of Mr. Sturrock on the ground of unsatisfactory results for some years past in the two highest standards, which were taught by the headmaster himself. After careful consideration of the case the following resolution was carried nem. con., all the members of the Board being present: " That Mr. Sturrock's engagement with the Board be terminated on the Ist day of July, 1903, and that during the present month the Secretary notify him accordingly, on the grounds : First, that the Blenheim School Committee have requested the Board to take this action on account of the unsatisfactory nature of the last four reports on the examination of the boys' school; and, second, that the provisions of ' The Public-school Teachers' Salaries Act, 1901,' may be brought into force in Blenheim." In consequence of this notice, Mr. Sturrock brought the matter before the Court of Appeal, under "The Public-school Teachers Incorporation and Court of Appeal Act, 1895." A sitting of the Appeal Court was accordingly held on the 2nd May, 1903. As regards the constitution of the Court the Board considers that it has grave cause of complaint. It is provided that the Court shall consist of three persons : the Stipendiary Magistrate of the district, one person nominated by the Teachers' Corporation, and one nominated by the

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