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A very heavy gale during the latter end of January, 1939, spoilt the garden display and caused damage to trees and shrubs. The Domain entrance gates and front fence were erected in red brick and tubular iron railings, adding to the attractive appearance of the Domain. The mountain tracks have been regraded to Bald Spur and all kept in excellent condition. A large number of people ascended the summit (3,126 ft.) this season. Main drives in the Domain have been recovered. Mineral waters of Te Aroha in flavoured bottled form have been popular with the public again. Rainfall for the year amounted to 70-89 in., as compared with the previous year's fall of 55-65 in. Passenger Boohing. Impetus has been given to this service, resulting in turnover in sales rising by 73 per cent. Distkiot Manager, Rotorua. The District Manager reports that it is again pleasing to record an increase in revenue, the actual receipts over all sections representing an increase of over 5 per cent, above the previous year, and constituting a record for the ofiice. In the electrical section a reduction in tariff charges was brought into effect on the Ist January, 1939, estimated to benefit the consumers to the extent of approximately £3,200 per annum. These' concessions were very well received by the public, and should have the effect of further encouraging the use of electricity. The actual revenue during the year under review totalled £30,024, an increase of £3,737 over the previous year. Allowing for the reduced charges over two months, this must be regarded as highly satisfactory. Notwithstanding the high standard set last year in respect of baths and games fees, these sections held their own during the year under review. The actual increase in the baths fees was £327, due very largely to the popularity of the Blue and Ward Baths. Although it is the peak period it is interesting to record that from the 24th December to 7th January, 32,918 bathers took advantage of the facilities at the Blue and Ward Baths ; in addition, 5,335 spectators paid admission to the Blue Bath. These figures speak for themselves in regard to the popularity of the baths. It is pleasing to note that greater use has been made of the Ward Baths throughout the year. This is encouraging and, with the view of further popularizing this building and advertising the facilities offered, a large Neon flame-coloured sign was erected a few months ago over the main entrance. In January the New Zealand Junior and Intermediate Swimming Championships were held in the Blue Baths. The function was very ably controlled by the Bay of Plenty Swimming Centre, and competitors from all over New Zealand attended. The meeting was extremely popular, and the Department co-operated to the fullest extent to ensure the smooth running of the event and the success of the championships. Delegates from the various centres were very glowing in their praise of the baths and their appreciation of the Department's efforts. The main treatment building (massage and special-treatment department) maintained the high standard set the previous year. This is really as much as can be expected, for the staff and present facilities available worked to full capacity. The same position applies in regard to the Sanatorium, although in this case a further increase of £363 was recorded, which brings the revenue for this institution equivalent to approximately the peak set in pre-depression years. Considerable essential constructional repair and renovation work has been carried out by the Public Works Department on the Department's behalf to the main bath building during the year. It is again gratifying to record an increase in the revenue received from the playing-areas. A total increase of £220 is shown, £71 of which is from the tennis-courts, the balance (£139) being increased golf fees. The total revenue from the golf-course, although only of nine holes, was £763, and is consistent with an indication given last year that a further increase should be recorded. There is still room for considerably more improvement to the course, and it is recommended that a further sum be made available during the ensuing year. The dry weather has had a very detrimental effect on the greens, and it will be necessary to reticulate the course for watering purposes. The passenger-booking section records an increase in the sale of tours of £1,038, representing a 17 per cent, increase. The usual arrangements were made in regard to the organization of sightseeing, accommodation, luncheons, transport, Native receptions, and guiding of the large conducted parties from visiting cruise liners to New Zealand. Generally speaking, all arrangements worked smoothly and were the subject of favourable comment by the visitors. Electric. —During the year extensions to the lines have been made as follows :— (1) Ngongotaha Valley Road : 2 miles 30 chains. 6,600 volt. (2) Payton's Road, Okere : 40 chains. 6,600 volt and 230 volt. (3) Oturoa Road : 60 chains. 6,600 volt and 230 volt. (4) Dalbeth's Road : 1 mile 20 chains. 6,600 volt and 230 volt. (5) Tarukenga : 1 mile 10 chains. 6,600 volt and 230 volt. (6) State Mill, Waipa : 1 mile 40 chains. 6,600 volt and 230/400 volt. (7) State Houses : 20 chains. 6,600 volt and 230/400 volt. In addition to the above, extensions and reconstruction have been carried out as required to give supply to new consumers adjacent to existing lines. Work on the change-over has been continued, and during the year 251 premises have been changed over, bringing the total to 1,166. It is expected that the work will be completed during the forthcoming year.

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