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I may add that the Government hopes there will be no delay in instituting the School, as it is desirous if possible to obtain the services of this professor before his class is in session, in connection with geological inquiries on the West Coast of the Middle Island. I have, &c, The Chancellor, Otago University, Dunedin. J. Ballance.

No. 17. The Chancelloe to the Hon. the Ministee of Education. Sic,-— University of Otago, Dunedin, 27th February, 1878. I have the honor to acknowledge the receipt of your communication of the 29th January last, on the subject of the establishment of a School of Mines. At the monthly meeting of the Council next after the receipt of your letter—namely, on the 12th instant —the subject was brought under consideration, and the Council being assured of the qualifications of Mr. Ulrich, of Melbourne (with whom I had several interviews in June last), I was requested to communicate with him at once. I accordingly wrote to him on the 20th instant, making him a definite offer, and I enclose a copy of my letter. I am to convey the thanks of the Council to the Government for the annual aid of £500 towards the expenses of the School of Mines, without which the Council would not have been in a condition to establish it. And I am to assure the Government, through you, that, after consultation with Mr. Ulrich (assuming that he will accept their offer), the Council will spare no exertions to place the School in a state of efficiency. I have, &c, H. S. Chapman, The Hon. J. Ballance. Chancellor.

Enclosure in No. 17. The Chancelloe to Mr. Ulrich. Sir, — University of Otago, Dunedin, 20th February, 1878. In the month of June last, I had an interview with you for the purpose of learning whether, in the probable event of the Council of this University being placed in a position to establish a School of Mines, you would be disposed to entertain a definite proposal to accept the Directorship thereof. Though I was not then in a condition to make a definite proposal, 1 understood you to be favourably inclined to entertain it when made. It was only last week that the Council were able to take any steps towards carrying out the object which I mentioned to you, and at their meeting on Tuesday I was requested aud empowered to communicate with you definitely on the subject. On behalf of the Council, therefore, I am authorized to offer you the office of Professor of Mineralogy and Metallurgy, and Director of the School of Mines. The salary attached to the office is £600 per annum, with the fees paid by the students who may attend your course of lectures. The salary to take effect from the day you report yourself at the University. These, you will understand, constitute all the emoluments of the office. But there is a condition attached to the office by the Government in making a grant to the University in aid of the School of Mines. I must first explain that, unlike the English Universities and that of Melbourne, our University year is divided into a single term of six months, from the Ist of May to the Ist of November, with a vacation of equal length, from the Ist of November to the Ist of May, comprising, you will observe, all the summer months, the most favourable for the purpose about to be mentioned. The condition attached by the Government is, that they shall be entitled to secure the services of the Professor and Director whom we may appoint, for any purpose within his proper functions, during any portion of four months of the vacation, without any further remuneration, except the usual travelling allowances. These are the payment of all travelling expenses, such as steamboat, railway, and coach fares, together with one guinea per diem during the time you are absent from Dunedin. Tou will also be virtute officii a member of the Professorial Board. There is also one condition imposed upon all professors by the rules of the University—namely, that they are precluded from taking private practice of any kind. Should you accept this offer, the sum of £60 will be allowed for the expenses of your removal from Melbourne to Dunedin. I send herewith a copy of the Calendar of this University, published in 1877. I have, &c, H. S. Chapman, G. H. F. Ulrich, Esq., Melbourne. Chancellor.

No. 18. The Seceetaey of Education to the Chancelloe. Sib, — Education Department, Wellington, sth March, 1878. I have the honor, by direction of the Minister of Education, to acknowledge the receipt of your letter of 27th ultimo, concerning the establishment of the School of Mines, and enclosing copy of the offer of the Directorship which has been made to Mr. Ulrich ; and have to express Mr, Ballance's satisfaction with the action taken.