E.—6

2

sent to each candidate, not later than the sth day of October, of the place and time of examination in each subject. The notice will be sent to the address furnished by the candidate. Endmoments. —A purchaser of part of the Forest Hill Estate, sold in 1881, has paid off a sum of £421, which remained as a mortgage on the land, and has received his deeds. The sum paid is now awaiting a suitable investment. The tenants of the run known as the Museum Eeserve have made complaints about the disturbance of stock by the mining operations in progress at McPhee's Point, on the Taieri Eiver, and complain that the proclamation of the whole run (11,000 acres) as a mining area, has been a serious injury to them. The Council has taken steps to make a claim for the land taken from the Barewood Bun for the Otago Central Eailway, and for the depreciation of the property by the severance of a portion of the run. Mining operations are still carried on at the quartz reefs on this run, but the return to the Council is very small. The Council regrets to state that the general financial position, as disclosed by the appended balance-sheet, is confirmatory of the general statement made in last year's report, that the present revenue does not meet the fixed engagements of the Council and the ordinary current expenditure on the lowest possible scale. Any extraordinary expenditure which might be called for cannot be provided for, nor can proper provision be made for the laboratories, nor for such a very necessary adjunct to a university as the library. School of Mines.- —After considerable negotiations with the Minister of Mines, the Council are glad to be able to report that in a short time a complete cyanide and crushing plant will be erected in the School of Mines, the total cost of the whole plant being about £750. Besides being of the utmost importance in the systematic training of students in the working of the cyanide process, the crushing plant will be of great value to the local mining industry, as, for the first time, the school will be able to accept samples of some considerable bulk for treatment and report. Numerous applications have already been made for reports on several tons of tailings, &c. The report of the Director of the School of Mines gives a summary of the work done during the year. Since the writing of the report a large number of students have come forward to join the school, so that at the present time all the class-rooms are full, and the furnaces and benches fully occupied. There are also the names of fourteen students already recorded who desire to commence their course next year. -It is probable that not more than ten or eleven of the present students will complete their course this year and leave. The Director reports that already the class-rooms and laboratories are not sufficient, so that it seems imperative that further accommodation, in the shape of additional furnaces and microscopes, should be provided. This will necessitate a considerable outlay, and the state of the University funds appears to preclude the carrying-out of any expensive improvements. The sole additional income to the University from the increased number of students is only the single guinea college-fee from each student. Museum. —The report of the Curator of the Museum, Dr. T. Jeffrey Parker, is appended. The audited balance-sheet for the year ending 31st March, 1896, is appended. Joshua Strange Williams, Chancellor, University of Otago.

APPENDICES.

A.—Balance-sheet, 1895-96. Receipts. £ s. d. Expenditure. £ s. A. Balance forward, 31st March, 1895— Salaries — Current account .. £1,006 10 2 Professors .. .. 5,050 0 0 Fixed deposits .. 1,443 5 6 Lecturers .. .. .. .. 1,178 1 8 Eegistrar .. .. .. .. 250 0 0 2,449 15 8 Attendants .. .. .. .. 370 16 3 Less outstanding cheques 1,022 3 8 Fees— 1,427 12 0 Professors and lecturers .. . 1,883 19 0 Eents of reserves — Apparatus— Burwood and Mararoa .. .. 1,300 0 0 Chemical laboratory .. .. .. 34 19 10 Barewood .. .. .. .. 900 0 0 Physical laboratory .. .. .. 22 19 0 Barewood (79 of c) .. .. .. 21 16 6 Biological laboratory .. .. .. 6 9 2 Benmore .. .. .. .. 3,000 0 0 Medical School .. .. .. 68 0 0 Forest Hill .. .. .. .. 53 11 4 School of Mines .. .. .. 52 2 4 Castle Street, house .. .. .. 28 0 0 Repairs and alterations .. .. .. 38 6 8 Leith Street, houses .. .. .. 23 14 4 Library .. .. .. .. 88 1 8 Professors' houses .. .. .. 240 0 0 Insurance .. .. .. .. 52 1 4 Church Board of Property .. .. 1,800 0 0 Water, fuel, and light .. .. .. 246 12 4 Fees — Printing, advertising, and stationery .. 102 16 6 College .. .. .. .. 202 3 6 Incidentals .-. .. .. .. 31 13 3 Professors' .. .. .. .. 2,003 8 5 Interest on loan .. .. .. 900 0 0 Interest — Expenditure on Leith Street house .. 7 8 0 On fixed deposits .. .. .. 82 7 8 „ Castle Street house .. 6 6 0 On deferred payments .. .. 25 7 6 „ reserves .. .. 7 10 4 Government subsidy, School of Mines .. 500 0 0 Law costs .. .. .. .. 14 10 4 Goldfields revenue .. .. .. 78 10 0 Interest on overdrawn account .. .. 811 9 Burwood timber .. .. .. 11 14 9 School of Mines scholarship .. .. 12 12 0 Incidental receipts .. .. .. 4 2 7 Transferred to Museum Account .. 16 11 5 Payment of mortgage (Macdonald) .. 421 4 4 Fixed deposits in Bank N.Z. £1,443 5 6 Credit balance .. .. 781 16 3 2,225 1 9 Less outstanding cheques 550 17 8 1,674 4 1 Less overpaid .. .. 10 0 1,673 4 1 £12,123 12 11 £12,123 12 11