CO129-524-2 Hong Kong University- financial position- Chinese studies- future of the Chinese school and the Annual... 27-1-1930 - 12-8-1930 — Page 187

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Less than one-tenth of the cost of maintaining the University fell on the public revenues of the Colony.

The expenditure of the University during 1928 amounted to $504,809.82. The income and expenditure account for the year thus shows an excess of income over expenditure of $19,937. The income and expenditure account for 1927 showed a deficit of $3,318.61. During 1928 full and complete provision was made for bad debts,

The excess of income over expenditure on the year's working is to be accounted for partly by the fact that the receipts of fees for the Matriculation and Senior and Junior local examinations showed a remarkable increase. A successor to Professor H. G. Earle, Professor of Physiology, who left the University in January, 1928, was not appointed until September, 1928. Professor J. Anderson resigned in September, 1928, and his successor is not expected here until September, 1929. Mr. Robertson, who succeeded Mr. Keeton as Reader in Law and Politics, did not arrive in Hong Kong until August, 1928. Professor W. Brown, Professor of Mathematics, was seconded for service with the Lester Trust for four months during the vacation of 1928. Substantial savings therefore accrued under salaries.

merce.

The University was fortunate in continuing to receive special grants-$12,000 from the Hong Kong General Chamber of Commerce, and $1,000 from the Chinese Chamber of Com- The University is grateful for these contributions. The Asiatic Petroleum Co. (South China), Ltd., continues to earn the thanks of the University by its contribution of free oil for the University workshop and power station. Mr. Kwok Siu Lau made a donation of $60,000 through His Excellency the Chancellor of the University, and it was decided that this money should be devoted to the development of biology. During the year under review, Dr. G. A. C. Herklots was appointed Reader in Biology and steps are now being taken to convert a building at the western entrance to the University into a biological laboratory. A sum of $170,000 was collected during 1928 for a Chinese School, mainly through the efforts of the Hon. Sir Shou-son Chow and the Hon. Mr. R. H. Kotewall. This sum has already been paid into the University, and a further contribution of $30,000 has been guaranteed. Mr. Tang Chi Ngong also contributed a capital grant of $60,000 towards a

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building for the Chinese School. During the year under review, Government sanctioned for the year 1929 a special and supple- mentary grant of $32,000 in support of the Chinese School.

Great difficulty was experienced during 1928, and is still being experienced, in reinvesting mortgage loans which have been repaid. It will be noticed that a sum of $186,793.20 is shown as cash in hand and with bankers on current and deposit accounts. This is a very serious problem. It means that for a part of the year the University was only getting 2% instead of at least 7% on its money. It appears, however, to be almost impossible to secure investments which will give the University safe and adequately remunerative returns. Mortgage investments are not on the whole very satisfactory, but the University is preclud- ed from investing its endowment funds in shares in joint stock and liability companies.

So long as the University endowment funds continue to be invested in mortgage securities at variable rates of interest, it will never be possible to estimate accurately what the income of the institution will be from year to year. Ten years ago the funds of the University were practically the same as they are now. They were then invested in land and building mortgages bringing in interest at 9% and 9%%. Now the highest rate of interest which the University can get is 7% and at times it is not possible to find sound investments even at this rate. The position will never be really satisfactory until all the funds of the University are invested in gilt edged securities such as 5% War Bonds free of income tax, but in this case the endowment fund will have to be considerably increased.

MANAGEMENT.

Mr. Paul Lauder returned from leave early in the year and resumed the duties of Honorary Treasurer to the University. The University owes a great debt of gratitude to Mr. Lauder for the time and trouble he gives so ungrudingly to its service. The members of the Finance Committee other than the Vice- Chancellor and the Honorary Treasurer, are the Colonial Treasurer, the Hon. Mr. A. C. Hynes and Mr. N. S. Brown.

The Council of the University includes the Chancellor, the Vice-Chancellor, the Colonial Secretary, the Honorary Treasurer to the University, the Colonial Treasurer, the Director of Edu-

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