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The circumstances are briefly these. Early last year, in consequence of the high rate of home rent, the Bishop of Victoria was anxious to invest some of the trust funds of the college in the erection of houses for hire on a portion of the upper College Lot (4.76) which Sir John Bowring gave a verbal consent to the arrangement, allowing the Surveyor General to overlook the work. Two houses were accordingly built at a cost of about £2,000, and are now let at the annual rental of £300 each - thus returning 15 per cent on the outlay.
It does not appear to have occurred to either Sir John Bowring, the Bishop, or to the Surveyor General at the time, that there was anything irregular in the proceeding; but it is now found to be in opposition to the instructions of the Secretary of State, and in contravention of the terms of the lease, as explained in the annexed report.
The Surveyor General suggests that the Trustees of the College should be called on to pay an annual rental of £40 for the land thus improperly applied.