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ing patients may be described as being greatly improved both in the condition of the lungs and in general health, while 17 were improved, though not in a marked degree. The remaining 9 cases discharged all gained somewhat in weight and in general condition, but exhibited either no change in lung-condition or some advancement of the disease. As in former years, a number of unsuitable cases were sent to the Sanatorium, sometimes from a very considerable distance and not in a fit condition to stand the return journey, and consequently we were obliged to retain them in the institution until the end. lam glad, however, to be able to report that there has recently been a marked improvement in this respect, the cases, sent forward for treatment having apparently been more carefully selected. I trust this will continue to be the case, as otherwise a quite unnecessary amount of suffering, discomfort, disappointment, and pecuniary loss is inflicted upon the unsuitable patients and their relations and friends. The system of treatment of the patients has not been materially altered ; breathing and other exercises have been used more systematically, and have proved to be useful and beneficial in the great majority of cases. The patients take to them readily and often enthusiastically, the result being generally an increase in chest-expansion, greater vital capacity, less breathlessness on walking or hill-climbing, and often a marked improvement in carriage. Following on the lines indicated in my last yearly report, the patients have been encouraged to engage in work suitable to their conditiou of health as a part of their treatment quite irrespective of their position as paying or non-paying patients. The result has been very satisfactory. They have, I think, been happier and more contented, and their work has been of value to the institution as well as beneficial to their health. In the Plunket Colony the men have kept themselves usefully employed in attending to their shelters, keeping the paths, flower-borders, and grass in good order, and have besides assisted materially in removing the old fowl houses and yards and erecting a new poultry-run on modern lines. Over four hundred birds, chiefly white Leghorns of good stock, were raised, the hatching being by natural means. All the work of raising, feeding, cleaning, &c, has been done by patients, and the excellent condition of the birds and of the run generally has been very favourably commented upon by several poultry experts who have recently visited the Sanatorium. The poultry-run is in charge of Mr. Cooke, who, from a small beginning three years ago, has by his knowledge, industry, and unremitting attention now made, at this institution, the poultry-raising for eggs and table-fowls a paying concern. The expenditure on the poultry-run during the past twelve months amounted to £106 65., and the receipts amounted to £196 3s. IOJd. The expenditure represents the cost of feed and pullets for fattening for the table, and the receipts are represented by taking the amount received for cockerels sold, and eggs and fowls used at the Sanatorium calculated at current market rates. Besides this work the patients of this colony have considerably enlarged their croquet-lawn, raising, levelling, rolling, resowing, and protecting it by a neat fence. They have also cleared about a quarter of an acre of fern and scrub to form a small kitchen garden. The general surroundings of this colony reflects the greatest credit upon those patients who have worked so hard to bring it to its present state. The patients in the Ward Colony have also done a considerable amount of work. Two tracks have been cut through the bush by Mr. Somerville; some small streams have been bridged and good paths formed, thereby providing a most useful and pleasant walk for the patients in the summer season. They have also re-formed and relaid their croquet-lawn and made a new flowerborder and kept in order those already existing. The women patients have formed two small gardens, and we hope to see them also much more fully employed in outdoor work in the coming year than they have been in the past. During the year many worn-out mattresses were destroyed and replaced by new ones; shortages of linen, crockery, silver, and furniture were made up to a suitable inventory. The blinds in the Ward and Mason Colonies as also in the doctor's office and the kitchen were renewed, and those in the Plunket Colony were repaired. Twenty wicker chairs and lounges were provided. A new stove has been placed in the emergency shelter and one in the doctor's office, the old one from the latter having been placed in the Plunket Dining-shelter. A new stationery-cupboard was provided for the clerk's office, new baths obtained for the Mason and Plunket Colonies, and a new dray purchased for the farm-work. The exteriors and interiors of the main building and shelters were scoured and cleaned; thirteen shelters were painted; windows of the Mason Colony shelters were frosted instead of the old gelatine papers, which were removed; the doors of each shelter in all the colonies -were cramped and in some instances rehung; extension effluent-pipes were added to the septic tanks, and the bush around latter for some distance was cleared; the grease-trap at the Plunket Colony renewed and relaid. Two high-pressure caliphonts were constructed by the engineer, one of which was placed in the Plunket bathroom and the other in the Ward Colony. These cost about £2 less than if purchased in the open market, and are a great improvement, as they provide water for a hot shower. The Plunket bathroom was enlarged, and new box and linen rooms were constructed. In October the new ferro-concrete dairy was ready for use, and at the same time the building of the coal, wood, and vegetable sheds was completed. Two bedrooms were added to the nurses' cottage. In November a new path was made to the top of the hill to take the place of the old road which leads through the Plunket Colony; a small summer-house was erected half-way along this path. The concrete wall of the dam was repaired, and the half-yearly cleaning of the dam was carried out; a flume was also built to carry off the dead leaves in flood-time. In December the model shelter which was shown at the Exhibition was erected at the Plunket Colony as an emergency shelter. The fowlhouses were built, and the new shed to contain the recently acquired multitubular boiler for supplying steam to the dry-shed and for disinfecting was erected. This boiler was put into working-order by the engineer, the brick and concrete work alone being done by outside labour. The boiler serves as a destructor for all sputa and rubbish; it supplies

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