University Finance.

Otago Daily Times, Issue 15301, 15 November 1911, Page 21

University Finance.

DEDUCTION OF INDEBTEDNEBBi A NOTABLE PUBLIC WORK. In the year 19012 matters in connection with the linanco of the OtagO'University reached ft crisis aa 1 a result of a steady and lieivy decrease in the income derivable from the endowments that wero, vested in the governing body. The plight into which thp University Council,; through no fault of its own, had fallen,' was so serious that it became manifest' that energetic efforts must be taken to plucu the institution upon a, more assured looting, and to prevent its being crippled in its performance of a valuablo educational work. With the sk'pti that were then instituted to set tiic finance of the institution for the future on a stable basis the Otago Daily Times woa prominently associated,

At the capping ceremony in 1902 Mr E. 11. Cargill, then the chancellor of the University, made reference to the cultiea which were being experienced in the way of adequately carrying on the work that waa aimed at; and thereupon Mr James Allen, M.P., who has Ion:; boen closely identified with tho cause of university education, and is now chancellor of tho University of Otago, convened a meeting of the Otago members of Par. liament in Wellington in order to secure, if possible, that the interest of tho Government and ,of Parliament as n wholo might be enlisted in a movement to free tho University Council from tho anxiety inseparable from its " eternal lack o*f pence." JJofoic this meeting he laid the financial position fully and clearly, showing that tho University waa handicapped b.v the existence of a debt of some £16,000 I incurred upon the erection of its buildings), and an overdraft of £1500. In addition to these financial obligations the council in its effort to economise had been compelled In cut down expenditure at every turn, and 1 the corvequonce was that ils capacity for useful work waa in danger of being crippletj. The explanation of the'crisis, he pointed out, lay in the fact that the proceeds of the rentals from endowments had fallen off to an oxtent exceeding £3000, and that there had been other losses on tho attempted subdivision of runs, on tho resumption of land for railway purposes by the Government, and an annual loss on the maintenance of tho Museum—tho Mnaeum endowment providing a sum insufficient for the purpose it wa? designed to serve. Including items that ihiglit fairly bo charged to capital, the annual deficit the University Council mi«lit be expected to faco was about £360. Savings had been made in prolessors' salaries, by curtailing lccturcs. in the supply of apparatus, and in miscellaneous ways, but the limit of economy had been reached, and unless the position could be remedied the council would bo obliged to take into consideration the question whether either the School of .Medicine or the School of Mines should bo dispensed with;—the law faculty had already gone.

On this position being placed so clearly before then), the Otago members recognised that a serious state of affaire had artKn, and it was immediately resolved to approach the Acting Premier (Sir Jo3eph Ward), Sir Soddon being nbsent. in England ot. tho time, to naeortam what aiu the Government was prepared to extend. The basis of the odor made on this occasion was that, if tho people of Otago rawed £500, tho Government would contribute £1000 for the Immediate relief of the overdraft of £1500. A low weeks later this offer was extended in rcspcct of another £250, making a total sum available, when rami, of £2250. The liquidation of the overdraft fortbo tuna bolus; plainly represented, however. but a temporary palliative for so long as there was an annual deficiency of some hundreds of pounds, it was evident that it would merely ho a matter of time before tho overdraft would again bo as large rw ever. And, further, the existence of the permanent debt of ±/10,000 necessitated a large expenditure each year in tho payment of interest, and it wm stated tliat from £1000 to £1200 a year of the University's precious HKoilie was calcn up in tho payment ot rents and in tho dofrayment of interest charges. Accordingly became clear that if anv permanent assistance was to bo extended to tho University, and tlie council wtw to bo enabled not only to .clear off immediate encumbrances, but to provide for tmcli an extension of the equipment of tho Medical Scliool as was necessary to ensure tliat department of tho University being brought up-to-dato. some larger nn<l more extensive sell emu than that proposed by Sir Joseph Ward was necessary. It had been proposed that a Royal Commission should be appointed to consider and report upon the condition of the Uniwnity, but this waa oonsWerod

unnecessary in some quarters, as nil information was already available. Filially, tho liborality of the ciliwiw of Dunediti and CHaro in ru Inscribing an independent fund to cane tho finances of tho University rcmovod any occasion for tho appointment of a commission. Recognising tho desirability of' scouring more pennanont relief for tho Univcrrity Council than tho liquidation of its overdraft would afford, Mr George. Fenwick, editor of the Daily Time*, tindertook an extonaive campaign for the raising of funds that might be applied to the reduction of tho indebtedness on the University Buildings end towards live provision of an endowment which would admit of moro extensive work being entered upon in the future. On August 7, 1902, he was able to announco that, na tho result'of much personal effort, a fund had boon aUrted with this object in view, and that it already amounted to over £1000. Messrs' Rosa and Glendining (Ltd) headed the lift with the hamlsreno subscription of £500. Mr John Sidcy contributed £200, and the Otago Daily Company and Mcffra J. Speight and Co. followed vritli £100 each. The fund so auspiciously started grow with rapidity, ils crowth being, promoted by tho expenditure of no small amount of personal effort on tho part of Um editor. A great deal of correspondence had to bo conducted bv him in connection with tho project. iMrect personal appeal had to bo made to leading firms and prominent business men. Former rec-edenls ct Dunediu and thoao believed to bo still miflreatod in the welfare of Otago University wero communicated with, and from far-off liondon various sums of welcomo magnitude came to sweU tho total. An a result of tho effort instituted by tho Otajjo Daily Times the aum of £2120 was raised, anil the committee appointed by tho council succeeded in obtaining promises of further: sums totalling £2080, so that tho finances of tho University benefited to tho extent of over £4000 na tho outcome of the iesponso to the appeal ( mado to the public. Moreover, very welcome and substantial aid camo to tlw fund from the Dimodin Pavings Bank. At a meeting held on August 18, 1902, a resolution wiut pnfsod, on tlie motion of Mr Keith Ramsay, seconded by Mr J. T. Mackerras, that tho Birm of £6500, accrued profits from its investments, should be paid over to the University _of Otago, in acwrdancc with the provisions of " The Savings Bank Profit Act, 1878." Before this could bo dono an amendment of the law had to be passed by Parliament providing that tho ward "institution" in that act nitfhl ba intarproted to includo an eduoatianal institution, so that the University might participate in the distribution of surplus profits oamcd bv tho bank.