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The Chancellor op the University of Otago to His Excellency the Governor. Your Excellency,— In compliance with the provisions of the University of Otago Ordinance, 1869, I have the honour to forward herewith a report of the proceedings of the University of Otago for the year ending 31st March, 1912. . - . The Council. There have been no changes in the personnel of the Council during the past year. The constitution of this body will, however, be very largely altered by the University of Otago Council Act, 1911 : The number of members will be increased from twelve to seventeen, and the Education and High School Boards, primary- and secondary-school teachers, as well as School Committees, will in future have representatives on the Council. The new Council will come into office on the Ist day of July. The Staff. The most important change in connection with the staff is the retirement of Dr. Black, after forty years of service, from the position of Professor of Chemistry. J. K. H. Inglis, M.A. .D.Sc, late Professor of Chemistry at Reading, has been appointed to this post. A further change has been rendered necessary by the retirement of Mr. A. R. Barclay from the position of Lecturer on Constitutional History ; and in his stead the Council has appointed Mr. J. Lang, M.A. During the year it was found necessary to grant assistance to Dr. Barnett, Professor of Surgery. Dr. Newlands, formerly Tutor in Surgery, has been appointed as Dr. Barnett's assistant, whilst Dr. Allen has been appointed to the tutorship. Further appointments, rendered necessary by the extension of the University work to the teaching of accountancy and law, are noted in detail in a later part of this report. Home Science School. The home science classes, which were inaugurated during the year, were attended by a fair number of students, and there is a considerable increase in the enrolments for the present year. The action of the Senate in setting up a special degree in home science will no doubt tend to encourage young women to take up this course of study. Law Lectures. Attempts have more than once been made in the past to establish law classes in connection with the University, but these attempts have not been an unqualified success. During the past year, however, the Dunedin Law Society has interested itself in the matter, and has offered to contribute £100 a year in support of law classes, if they could be established. The Council, unfortunately, was not in a position to afford further financial assistance ; but to meet the emergency six well-known legal practitioners very generously offered their services. Mr. P. S. K. Macassey volunteered to give lectures in criminal law; Mr. A. A. Pinch in property, Part I; Mr. C. G-. White in property, Part 11, and procedure ; Mr. W. D. Stewart in evidence ; Mr. J. B. Callan, jun., in torts ; and Mr. H. D. Bedford in contracts. The Council is much indebted to these gentlemen, who are doing much to assist the law students of this city, and whose only monetary recompense is the £100 donated by the Law Society, together with the students' fees. The formation of these classes is much appreciated by the students, and they are being well attended. Veterinary School. Last year 1 had the honour to report that the Council hoped to have a veterinary school established by the beginning of April, 1912. It has not been found possible, however, to carry out this project. Very great difficulty has been experienced in acquiring at a reasonable price a suitable block of land which would not be inconveniently remote from the city. Until further financial assistance can be obtained from the Government, therefore, the matter of establishing a veterinary school must still remain under consideration. Dental School. The report of the Director of the Dental School is submitted herewith. 1 should, however, like to make some reference to the work done by the honorary staff. It is only fitting that the Council's appreciation of the honorary services of these gentlemen should be noted in this report. The public, perhaps, is not fully aware of the amount of time and labour devoted by them free of charge in the interests of the public well-being. Finance. I regret to report that the finances of the University are not in a sound condition. During the past year, even after allowance was made for such extraordinary expenditure as remodelling the drainage system, there was an actual deficit on the year's workings. This deficit is to be accounted for by the fact that the Council lias been forced to incur increased expenditure to cope with the increasing needs of the institution. As an example of these additional calls on the finances I would point to the establishment of the Chair of Bacteriology and to the extension of the teaching of midwifery in the Medical School. In addition to this, two members of the staff, the Professor of English and the Lecturer on Latin, have asked the Council for assistance. With a full knowledge of the facts, the Council could not but grant the requests ; but the payment of the assistants will be a serious strain on the finances. Further calls on the finances are the necessity of paying a retiring-allowance of £300 a year to Dr. Black, in