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3. Professors and Lecturers. —No change has taken place in the staff of professors and lecturers. The salary of the Professor of English (Mr. Bgerton) was increased £50 per annum, from the Ist January, 1897. 4. Endowments. —These consist of the following lands : —■ (1.) 10,000 acres in the Parish of Taupiri. Of these, 7,516 acres have been offered for lease in five small grazing runs, but none have been disposed of. A very large proportion of these lands is not worth the cost of keeping down briers; it is only the swamps and small portions between the hills which are of any value. 46 acres 32 poles have been leased to the Taupiri Eeserve Colliery Company from the 21st January, 1895, to the 21st October, 1899, at a rental at the rate of £100 per annum. The remainder of the reserve has been cut up into twenty-four lots, of about 100 acres each. Of these, twenty-two have been disposed of for the most part at 6d. per acre, but where held by perpetual lease the rent is only 4'Bd. per acre. These sections yielded a rental during this year of £46 16s. 2d. (2.) 10,000 acres in the Parish of Karamu and County of Baglan. These have been subdivided into nine small grazing runs, which have been offered for selection at 6d. per acre, but only two have been taken up. These yield a rental of £39 18s. 6d. (3.) 10,000 acres in the Parish of Waimana and County of Whakatane. These lands have all been let at 3d. per acre, and yield a revenue of £124 per annum. 17a Waimana. —By "The Auckland University Land Exchange Act, 1892," 50 acres (17a Waimana) were conveyed to the College in error, as it has since been found they belong to Mr. E. King, of Opotiki. The matter has been reported to the Government with a view to having it rectified in such manner as shall be agreed upon. (4.) 354 acres in the Parish of Ararimu and County of Waitemata. These allotments have not hitherto been a source of revenue, but it is proposed to offer them for selection at an early date. The total amount of revenue received in 1897, from the 30,000 acres which form the land endowments of the University College, was £156 12s. 6d., and the expenditure in connection with these endowments for the same period was £31 6s. 3d., leaving a net revenue of £125 6s. 3d. It seems but right to note these facts, as it may be generally supposed that an endowment of 30,000 acres would be a great help to the University College, whereas it is of scarcely any value : the fact being that the endowment consisted for the most part of the most worthless land in the Province, and which, at the time it was made an endowment, was unsaleable. The result is that the College is nearly altogether dependent upon the annual grant of £4,000, and there is no prospect of any increase of revenue unless Parliament should see fit to increase the grant. Under the Act establishing the College all fees go to the Professors, so there is nothing to come from an increase in the number of students. At present one Professor has to hold the professorship of both Chemistry and Physics, and another holds the professorship of both Biology and Geology. In Dunedin the Chairs of Chemistry and Physics are separate, whilst Canterbury College has seven Professors and four lecturers to carry on University teaching, as compared with five Professors and two lecturers at Auckland. It will easily be seen, therefore, how great a disadvantage this College labours under from the smallness of its staff. 5. Physical Laboratory. —Prior to the commencement of the session a new room 35 ft. long and 28 ft. broad was added to the chemical laboratory, at a cost of £328 4s. 6d. This room, which contains special arrangements for the carrying out of physical experiments, has made it possible to give systematic and useful practical instruction in electricity, heat, and allied subjects, which had previously, owing to want of room, been dealt with only with great trouble and inconvenience. 6. Biological Laboratory. —A large addition has been made to the apparatus of this laboratory at a cost of £173 17s. Bd. 7. Technical Education. —lt has always been the endeavour of the Professors to render the College as useful as possible to those who require a knowledge of science for manufacturing or technical pursuits, and in the laboratories especially help has been given to many students in this way. It is a source of regret that the lectures formerly given on agricultural science have ceased to be delivered owing to the lack of interest in the subject. The subject, it is true, is generally taught in the Board schools, but cannot be dealt with efficiently unless the teachers thoroughly understand and are competent to illustrate it. The resources of University Colleges are not at present fully utilised in this direction. 8. Special Lectures. —A special course of ten lectures was given by the Professor of Geology on mining geology. These were intended to meet the requirements of all persons interested in goldmining. These lectures were attended by nineteen students, and were -much appreciated. Professor Thomas also delivered in the large lecture-hall of the College, to the members of the Auckland Provincial Agricultural Association, a lecture on "The Parasitic Diseases of Animals." There was a full attendance of members, and the lecture is to be published by the Association. 9. The accounts are made up, and will be sent forward so soon as they have been certified by the Audit Inspector. I am, &c, G. Maueioe O'Bokke, Chairman.