PROTEST OF THE PRESIDENT AS TO SALARIES.-HOW IT WAS AFTERWARDS DISREGARDED.

The opinion expressed by the Vice-President, in the foregoing Resolution, and sustained by the Council, as the impropriety of increasing the "already overburthened" expenditure of the University, was upon a subsequent occasion, confirmed by the President, the Lord Bishop, in a protest, which his Lordship found himself called on, to enter on the Minutes, on 1st April, 1844, against a recent order of the Council, by which an increase of salaries had been indirectly voted by the Professors, to themselves, by the substitution of sterling money for Halifax currency. The following extract from the above mentioned protest shows his Lordship's views, at that time, on the subject of increased expenditure :—

(Dissentient,) Because the said Minute is impracticable, or rather perhaps cannot be carried out without incurring debt, trenching on the Endowment, or impeding the measures in contemplation for increasing the efficiency of the University.*

On the 20th of July, 1848, the Council decided that in future no more protests should be entered on the Minutes. See page 239 of the Seventh Volume of this History.

The above argument of the President appears exceedingly forcible and pertinent; and should have served the Council as a useful admonition against every sort of augmented expenditure.

Though the President and Vice-President had, in December, 1843, and April, 1844, so explicity avowed their disapproval of increased expenditure, yet, in October, 1844, the former moved, seconded by the latter, that an allowance of £100 a year be paid to the Reverend Professor Beaven, for his services as University Chaplain; and that this allowance should be extended back to the commencement, in 1843. (See page 23 of this Chapter.)

The extra services, for which Professor Sullivan asked compensation, were rendered in the Dissecting Room, and in the Anatomical Museum; and his entire time was devoted to professional labours. The Commissioners find that, Professor Sullivan's claims were not favourably entertained by the Council, until 1847, when a gratuity of £50 was voted to him for his extra services in the current medical session; a second and last grant was made in 1848, of a like

amount.

INDIRECT WAYS OF INCREASING EMOLUMENTS.-THE GENERAL QUESTION DISCUSSED.

Another indirect means of bestowing increased emolument on the Professors of the University, and which was subsequently extended to the Bursar, consisted in the privilege accorded by the Council, of obtaining free tuition for the sons of these Gentlemen in Upper Canada College. In July, 1848, the Council passed the following Resolution :—

Moved by Professor Gwynne, that in future, no allowance in lieu of salary, for duties performed, or to be performed, be made to Professors, or others, without the sanction of a Statute duly passed Which motion, being seconded by Solicitor General, Mr. W. H. Blake, was put and carried.

The amount paid to Students, thirty-three in number, for Scholarships, etcetera, has been £786. 15s., including the allowance to the Student officiating as Chapel Clerk. This sum, considering the limited extent, to which the educational services of the University, have yet attained, is respectable, and shows that the University offers to the youth of the Country, pecuniary attractions, which must operate advantageously to its popularity. No doubt, due care will be taken, that this salutary provision be extended, so, as to meet the increased demands of the Institution, when the classes shall have attained greater numerical strength.

The Salaries paid to twelve College Officers and Servants, of subordinate rank, and employed at various times during the second period, have amounted to £2,599. 3s. 3d. The Commis

*This extract is "number four" of an extended "Protest" of the President of King's College, entered on the Minutes of Council, and dated the 1st of April, 1844. See pages 138, 139, of the Fifth Volume of this Documentary History.

This Protest of the President of King's College against the charge in the amounts, as payments made to the Professors, as salaries, called forth strong protests from three of the Professors concerned. The proceedings of the Council in regard to these protests, and my note on the subject, as printed on page 141 of the Fifth Volume of this Documentary History, are as follows:

April 24th, 1844. The Reverend Doctor Beaven and Professors William C. Gwynne and Henry H. Croft obtained leave to enter on the Minutes of the Council objections to the Statements contained in the Protest of the 1st of April, 1844, of the Right Reverend the President of King's College University, against the Minute adopted on the 27th of March, 1844, by the Council, on the subject of Professor's Salaries.

NOTE. These Protests are very elaborate documents, aud, while they do not defend the principle of the right of the Professors to increase their own Salaries, yet they give an elaborate explanation of the reasons why the writers supported the Minute of the Council dealing with the simple question (as they maintained,) as to whether the Salaries should be paid at the rate of sterling exchange, as interpreted by the Solicitor of the Council. It will be noticed that the censure of the Chancellor on the action of the Professors is very clear and distinct as against them. (The protests occupy four closely written pages of the College Minute Book, but it is unnecessary to reproduce them here.-J. G. H.)

sioners are not competent to judge to what extent this branch of the University service requires to be carried. It is, however, to be remarked, that the above sum does not cover the whole disbursements in payment of Servants. From the account of Wages, and the Report of the Dean, (Doctor Beaven), furnished in September, 1848, it will be observed that wages and clothing for Servants amount, annually, to a considerable sum.

Other heads of disbursement will be noticed in the review of the Ledger Accounts, in another place. The foregoing have been, here alluded to, in connexion with the subject of general management, as affording occasion for some remarks illustrative of the system of administration, pursued by the Council at various times, and suggesting those restraints, or changes of fiscal policy, which the interests of the University, and the present unsatisfactory condition of its endowment and finances, certainly call for.

The foregoing closes the Report of the Commissioners on the administration of the affairs of the University during the "Second Period " beginning in 1839,at the close of the term of office of Colonel Wells, as Bursar.

A SET OF ACCOUNT BOOKS INDISPENSIBLE, so as to ARRIVE AT CORRECT RESULTS.

In dealing practically with the Inquiry into the financial affairs of the University, the Commissioners found that they could do nothing with the few, and most unsatisfactory, Account Books in use by Bursar Wells, as already explained. They, therefore, decided, as stated in a former part of their Report, that :

An entire new set of account books, framed upon correct commercial principles, was considered by them as indispensable, alike for the purposes of their investigation and the future service of the University. The work to be performed was not a mere examination of, or report on, existing accounts, but the actual formation of them; and this undertaking, so far from being made more casy by the aid of the accounts found in the books and papers placed at their command, was but rendered the more formidable and intricate by the imperfections and irregularities which were, from time to time, discovered to abound in them. It would have been a simple and unperplexing task to have made up a proper set of accounts, from correct day books, in which all transactions, requiring fiscal record, had been duly and regularly entered, coincidently with the occurrances; but the Commissioners sought in vain among the University books for these elementary financial records.

In consequence of observing this defect at an early period of their investigation, the Commissioners addressed a formal communication to the Bursar, Doctor Boys, who succeeded Colonel Wells, with a view of ascertaining the facts of the case. The replies of Doctor Boys shewed that the Account Books desired could not be found.

(NOTE. The Commissioners' detail, on pages 11-13 of this Chapter, the many difficulties which they experienced in arriving at any satisfactory basis, on which to place the University Accounts, as a starting point of certainty.

J. G. H.)

CHAPTER II

SPECIFIC INFORMATION OBTAINED FROM THE PROFESSORS BY QUESTIONS FROM THE UNIVERSITY COMMISSIONERS OF INQUIRY.

In order to obtain specific and authentic information from the chief Officers of the University, the Commissioners addressed, in August, 1848, a series of ten questions to the President, and to the three Professors, as well as to the Principal of Upper Canada College. The answers given by these Gentlemen are embodied in this Chapter. A large number of details on minor matters have, however, been omitted from the voluminous replies of Professor W. C. Gwynne, as noted in several places, chiefly in his answer to the fifth question proposed to him by the Commissioners. From these replies, they were able, in many cases, to satisfy themselves as to their own statements and conclusions. These replies also fully justified the necessity and expediency of subjecting the Accounts and proceedings of the Council, and especially those of the First Bursar, from 1828 to 1839, to the most rigid scrutiny, which they underwent at the hands of the Commissioners.

The following are the Questions proposed by the Commissioners. They practically include a history in brief, of the University,-its endowment and management, up to the time of the Inquiry of the Commissioners :

:

1.-First At what time and by whom was application first made to the Imperial Government, for a grant of Land for the purpose of endowing a University?

2.-Second, What quantity of Land was, in the first instance, appropriated; and at what time ? 3-Third-Are the Lands, which were first appropriated, those which have since constituted the

property of the University; or if not, when were the Lands first appropriated, reinvested in the Crown, and in what manner; and on what conditions, were they so reinvested? 4-Fourth At what time, did you become a Member of the College Council, and in what state did you find, then, the management of the University endowment?

5-Fifth. Did you suggest any change in the management; if so, has that change been carried into effect?

6-Sixth. Can you state whether the College Council had any, and if any, what distinct object, or purpose, in view, in appropriating the proceeds, from time to time, as the sales of the lands progressed; and have the proceeds always been so applied, or how have the same been applied?—

7-Seventh. Has the interest paid on arrears of purchases, or on securities, been held applicable to any particular purpose, or object; and, if so, to what purpose, or object? and has the same been so applied?

8.-Eighth.-Have the monies arising from Sales of Lands, and from payments of interest and rents, been kept distinct, so as to shew clear and distinct accounts of each; or have the whole payments been amalgamated, and have the charges and expenses of the University been paid from this fund?

9-Ninth-What course would you recommend to be pursued with reference to the University Lands yet remaining undisposed of? Is it your opinion, that it is not advisable to sell; or would you recommend future sales of the Lands to be made for the purpose of investment in Debentures, Stocks, or other Securities from which to raise an income? 10-Tenth-In what manner do you think the rents of the Lands should be determined? according to a money valuation, or valuation in kind?

I. ANSWERS OF THE REVEREND JOHN MCCAUL, TO THESE QUESTIONS.

Qy. When was the First application made for an Imperial Grant ?*

1. Ans. By the Legislative Council and House of Assembly, in 1797.

Qy. What quantity, and at what time was the grant, of Lands, made?

2. Ans. The quantity of land appropriated for Grammar Schools and for a University in 1798, was about five hundred thousand acres, (500,000) at that time, as appears from a Pamphlet entitled: "Proceedings had in the Legislature of Upper Canada, during the years 1831, 1832, and 1833, on the subject of Lands, etcetera, printed by order of the House of Assembly, Toronto, 1837." It was intended, that there should be four Grammar School, and that the portion for the University should be, at least, equal to that for these Schools.

Qy. What Lands now form the present University Endowment?

3. Ans. In the year 1825, Sir Peregrine Maitland, with a view to the speedy establishment and efficiency of a University, recommended an exchange of that portion of the Crown Reserves, which then remained to the Government, for an equal quantity of the lands appropriated in 1798. In 1827, Lord Bathurst, the Colonial Secretary, authorized this exchange; and King's College was accordingly endowed, in 1828, with these Crown Reserves, said to amount to two hundred and twenty-five thousand, nine hundred and forty-four (225,944) acres, but in reality only containing two hundred and twenty-three thousand, five hundred and thirty-eight and three quarters of an acre, (223,5381).

Qy. When were you first a Member of the Council? In what state was the Management then ?

4. Ans. In January, 1839; soon after my becoming a Member of the Council, (in April, 1839), a Committee of Inquiry was appointed by the Council and full information regarding the £nancial affairs of the University, and the management of its Endowment, is to be found in the Reports of the Committee, and the Minutes of the Council, during that year. +

Qy. Did you suggest a change? If so, was it adopted?

5. Ans. Yes, many. Both during the existence of the Committee, and since that time. The majority, I think, have been carried into effect.

Qy. Had the Council any distinct object in view in its appropriations? Give particulars.

6. Ans. The object, as originally contemplated, seems to have been to erect the University Buildings from the grant of £1,000 sterling per annum, from the payments of the Canada Company for sixteen years; to provide such outfit, etcetera, as might be necessary for the establishment, from a portion of the proceeds of the sales, and to secure an annual income, for the maintenance of the Institution, from the interest on the residue of the purchase money, and from rents, etcetera. But it was soon found necessary to abandon this plan. Before two years had elapsed, the University funds were charged with the expense of building the Upper Canada College, and the support of that Institution; and the payment of the grant of one thousand pounds, per annum, for erecting the University was stopped before the close of the fifth year. During the administration of Sir John Colborne, the establishment of the University was indefinitely postponed; and the Council, during that period, appear to have had no other object in view, than providing the necessary funds for maintaining Upper Canada College, and investing the balance, with a view to the University being put in operation, at some future time. In 1837, soon after the passing of the Act, amending the Charter, preparations were made for carrying that Act into effect; and the plan then proposed, was, to meet the expenses of the Buildings and outfit by such capital as was then available, and by a loan from capital, to be paid from the proceeds of sales; whilst the annual income was to be provided from the interest on instalments, due from Rents, and from the interest on the debt of the Upper Canada College.

In 1842, previously to laying the foundation of the University Buildings, a strict investigation was made into the Financial affairs of the University, and a Report was drawn up, shewing the practicability of meeting the expenditure for building, outfit, and maintaining the establishment, by borrowing from capital, and repaying the loan, so as to extinguish it in 1865. This Report was approved and adopted, with the qualification, however, that as the sum to be spent on buildings should be regarded as capital invested, it was not necessary to provide for its being repaid, and, therefore, the allowance for the support of the University might even, in one or two years, be augmented much beyond the limit assumed in that Report, without any detriment to the Institution. Although the calculations in this Report were evidently intended to regulate future operations, yet the principles adopted in it, have not been carried out. The temporary, (or ex-officio,) Members of the Council, influenced probably, by the expectation of

* For convenience, I have condensed each question, rather than repeat it in full before each answer.

+ See pages 198,199 of the Third Volume of this Documentary History.

For this Report and proceedings thereon by the College Council, see pages 176-189 of the Fourth Volume of this History.

being superseded on the appointment of the Professors,. left this duty to their successors, as peculiarly belonging to them. During a period of about six months, in 1843, there were no meetings of Council, and when this Board, (or Council), was re-organized, the new Members had scarcely become acquainted with the circumstances of the Institution, when a measure was introduced into the Legislature for remodelling the whole establishment. From that period up to the present time, action has been impeded in this, as in other important matters, by the constant expectation of extensive changes being made in the constitution and management of the University.

Qy. How has the interest derived from securities been applied?

7. Ans. I am not aware, that it has been held applicable to any other object, than the current expenses.

Qy. Have the receipts from various sources been accounted for separately?

8. Ans. They have been kept distinct, so that the amount of each, for any period, can be ascertained. It would, however, in my judgement, be better if both the receipts and payments on account of capital and income, could be more clearly and easily distinguished. This was the opinion of the Council also; for, in a Report, which they adopted in June seventeenth, 1845, it was recommended that:

The Bursar shall submit, with his usual quarterly returns, a balance sheet, shewing the Receipts and Expenditures on account of Capital and Income, distinctly separated. For Capital, he shall take as receipts, the proceeds attested of Lands sold; and as Disbursements, all payments of investments for Buildings, for outfit, and such other expenditure as is usually borne by capital. For Income, he shall take as receipts, all rents, interests, dues and fees attested, grants made, and miscellaneous items not before mentioned; and as Disbursements, the expense of Management, and the Salaries and Contingencies of the University and College. If it should happen, that one of these services requires aid from the funds of the other, such circumstances shall be particularly noticed, and the service so borrowing shall be debited with the loan, and charged, with interest thereon.

The whole payments have not been amalgamated, but the charges and expenses of the University have been paid from the whole sum attested. The total amount, however, of the current expenses of the University, does not equal the total amount of income received.

Q. What would you recommend as to the Sale of the University Endowment Lands?

9. Ans. I was formerly of opinion, that it would be advantageous to retain a considerable portion of the Lands, as a perpetual endowment, but on examination of the subject in 1845, I found reason to modify this opinion. I now, think, that the suggestions, which I then made, point out a preferable course; videlicet:

First-That the sale of land shall be continued until all the present Endowment shall have been disposed of, except such lots as may be advantageously kept under lease.

Second-That, with the object of producing an income, the attested proceeds of such sales shall be invested in Debentures, and profitable estates, except a small portion, which shall be applied to the purchase of wild lands in favourable localities. Of these modes of investing the proceeds of sales, the first two have been already adopted, but a considerable amount of the sum at present funded in Debentures, might, in my judgement, be more beneficially laid out in profitable estates. To the third mode of investment, some objections may justly be raised; but in balancing the arguments for and against it, the former, I think, outweigh the latter.

Qy. In what way should the rents of the University Lands be determined?

10. Ans. Rent according to valuation in kind, (whereby I mean a fixed quantity,) not a fixed proportion of produce convertible at average prices, is, in my opinion, more equitable ; but the applicability of this principle to the leased lands of the University is very limited.

TORONTO, September 20th, 1848.

JOHN MCCAUL.

II. ANSWERS TO THE COMMISSIONERS' QUESTIONS BY THE REVEREND DOCTOR BEAVEN :

Qy. When was the first application made for an Imperial grant ?

1. Ans. Application was first made to the Imperial Government, for a grant of land for the purpose of endowing a University in the year 1797. The application was made by the Legislative Council and House of Assembly, in a joint Address.

Qy. What quantity, and at what time was the grant of land, made?

2. Ans. By direction of the Imperial Government, a Report was made by the Executive Council, Judges and Law Officers of the Crown, recommending a grant of five hundred thousand (500,000)-acres for Grammar Schools and a University, conjointly; and that the portion assigned for the support of the University should be equal to that assigned for the Grammar Schools.