8.—6

2

Museum. —A number of living plants were received from Mr L. Cockayne, of Christchurch, for the botanic garden at the Museum. The special thanks of the Council were conveyed to Mr Cockayne for the very acceptable and valuable present. The biological lecture-room at the Museum has been entirely refitted and made much more convenient. Half of the cost was paid by the Otago Institute. Endowments. —The lease of the Benmore Eun (100,000 acres) falling in, the Council, after obtaining the opinion of an expert on the subject, found that it would be to the best interests of the revenue of the University to let the run as a whole. The necessary power having been obtained by Act of Parliament, the run was relet to Messrs. Bobert Campbell and Sons (Limited). In consequence of the state of the wool market and the depreciation in the value of pastoral property the rent realised at auction was only £3,000, being a reduction of £600 on the rental previously obtained. Just as the year closes the tenant of Barewood Eun (30,000 acres) has intimated that he will be unable to pay the amount due for rent for the next half-year, and has requested the Council to take over the run. He has been informed that the Council are unable to comply with his request. It is highly probable that a considerable loss of revenue will result in this case. Last year the University lost £150 a year from the Museum Eeserve, and this year £600 from Benmore. This serious fall in the revenue will necessarily entail considerable reductions in the expenditure. This, however, is rendered very difficult, as the engagements of the Council are so nearly equal to the revenue under the former scale that a very small margin remained. Stringent measures have been taken to cut down the expenditure on laboratory requisites and apparatus, but as these were not on a very liberal scale previously the saving is comparatively small. With a view to obtaining income from the block of land between Union Street and Albany Street, belonging to the Universitysite, the Council have made inquiries into the probable cost of reclaiming the land and putting a concrete wall along the bank of the Leith, but the matter appears at present to be beyond the means of the Council. Buildings. —lt was found that the whole of the drainage-system of the professors' houses was thoroughly disorganized and extremely dangerous to the health of the occupants of the houses. An entirely new set of pipes has been laid down, and every care taken to make the service in accordance with the most modern views in sanitation, frequent inspection being provided for The cost of the work —over £200 —has been a serious drain on the finances. A catalogue of the University library has been printed. In addition to the books in the library of the University, the catalogue contains lists of the books in the scientific library at the Museum and of the books belonging to the Otago Institute in the same building. The scale of charges for timber of various sizes from the Burwood Bush has been lowered to meet the requirements of the settlers, on the suggestion of the local agent of the Council. I have, &c, D. M. Stuart, His Excellency the Governor of New Zealand. Chancellor.

Balance-sheet of the University of Otago for the Tear ending 31st March, 1894. Receipts. £ s. d. Expenditure. £ s. d. Balance forward, 31st March, 1893 610 15 7 SalariesFixed deposits in Colonial Bank 1,343 5 6 Professors .. . 5,100 0 0 Rent of runs— Lecturers 1,512 10 0 Burwood and Mararoa 1,300 0 0 Registrar 250 0 0 Barewood 1 750 0 0 Attendants 392 11 0 Benmore 3,600 0 0 Fees—Professors and lecturers 1 632 1 0 Benmore, as payment in advance 1,000 0 0 Apparatus— Forest Hill 53 10 4 Chemical laboratory .. 83 4 4 Castle Street, house 44 10 0 Physical laboratory 63 18 2 Leith Street, house 17 8 4 Biological laboratory 49 13 4 Church Board of Property 1,800 0 0 Medical School 78 16 8 Fees— School of Mines 99 8 11 College fees 199 0 0 Repairs and alterations . .. 54 12 4 Class fees 1,802 16 0 Law costs . .. 82 8 O Interest— Library .. . 33 15 10 On fixed deposits 65 12 3 Insurance . 80 15 6 On deferred payment 28 13 4 Water, fuel, and light 215 18 8 Government subsidy, School of Mines 500 0 0 Printing, advertising, and stationery 157 10 3 Goldfields revenue 8 14 0 Rates 119 13 2 Barewood timber 8 0 7 Incidentals 36 7 6 Expenditure on Castle Street house 6 6 0 Expenditure on Leith Street house 11 5 4 Reports on runs, and expenses of sale of lease 67 6 9 Transferred to Interest Account . 900 0 0 Special expenditure— Retiring allowance to Janitor . 70 0 0 Models, Dr. Colquhoun 31 1 10 Drainage of professors' houses .. 228 5 3 Transferred to Museum Account 327 11 10 Balance—Credit balance at Colonial Bank, 31st March, 1894, fixed deposits 1,343 5 6 Current account 1,893 14 7 Less outstanding cheques 789 15 10 1,103 16 9 Amount overdrawn. 0 2 0 £14 132 5 11 £14,132 5 11