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has also been the means in numerous instances of preventing the payment of incorrect dividends. Improvements in totalizators and new methods in their administration have been continually introduced, so that it has become necessary for every Inspector, in order to carry out his duties efficiently, to obtain a general knowledge of the machines used and to make a full study of their efficient administration. Even a knowledge of the sources of mechanical faults is required. With the introduction of new and more improved totalizators, Inspectors will be required, more than ever, to specialize in this work. 245. This form of control is essential, and we recommend its continuance. We incidentally also recommend that the Department of Internal Affairs be given every facility to obtain the services of and to train officers competent to carry out efficiently the multifarious duties now falling, under the heavy strains of race-day workingconditions, to the lot of its Totalizator Inspectors. Such men must act promptly in making decisions in emergencies arising from mishaps to the intricate and delicate electrical installations which are increasingly coming into use, and a high standard of training and experience is consequently necessary. SECTION 4.—TOTALIZATOR TAXATION, COMMISSIONS, AND FRACTIONS 246. It was ten years after the first statutory regulation of the totalizator that the State began to exploit the machine as a source of revenue. Prior to 1881 the only deduction from the pool was the commission deducted by the clubs operating the machine. The history of State taxation is shown in the following table :

Total Totalizator Year. Act. Nature and Extent of Taxation. Deduction for State Taxation. Per Cent. Prior to 1891 Tax free . . 1891 Stamp Amendment 1£ per cent, on gross totalizator turnii Act over 1909 Stamp Duties AmendIncrease to 2£ per cent. n ment Act 1915 Finance Act In addition to above, dividend duty 6d. 4f in the pound 1921 Finance Act (No. 2) Dividend duty increased to Is. in the 7 pound 1930 Finance Act Totalizator duty increased to 5 per cent. 9f 1932 »» Totalizator duty decreased to 4 per cent. 8 & 7/20th 1934 Finance Act, 1933 . . Totalizator duty increased to 4\ per cent. 8 & 17/20th 1935 Finance Act (No. 3), Totalizator duty decreased to 4 per cent. 8 & 7/20th 1934 1936 Finance Act (No. 2) Totalizator duty decreased to 4 per cent. 8 & 7/20th 1937 Finance Act (No. 2) Totalizator duty continued at 4 per cent. 8 & 7/20th 1938 Finance Act (No. 2) Totalizator duty continued at 4 per cent. 8 & 7/20th 1939 Totalizator duty reverted to 5 per cent. 9f