CO129-529-1 Diocesan Boys' School and Orphanage- appeal for money 2-1-1931 - 10-5-1932_Part_001





CLOSED UNTIL No. 82700 SUBJECT. Hong Kong Diocesan Boys School 129/529/1 Previous 30127/27. Subsequent 85065 780/13 5,000 7/48 N.M.Ltd. 1 Gov 24 States that the school in difficulties wurths in arrean. and sentit. fund.. the school. the. financial then suc -respect of interest on loan made Recommend be permitted Committel way to suspend payment for the lume being happerssona As the school cannid the $7,000 the $14,000 duc in suspension for the time being due in 1530 of hagments To approved. ? But reps coting tuw Zan school Cauner Lay these sums it fresent & requesting an caly you financial position the future. a huhods for G. C. Miles ? Approve &ack for a refort towards the as to the financial position of end of the year the school and the prospects of the resumption of these payments in 1932, J. A. Calder Thand a lay latter with 17° featherstone - Handmeston of this schola font days ago, for what he tre me and the paper reports on the school that he пириватнов Shannah me I shamba wimagine that it desires all ponible support and that it exerts a good and eventually British influence in Humytiny. Ver. For that I was doutput of the the midon the town at the time 1. V Jo Jor. 94 (ames) con 23 2.3 W.T. Fantherstone interview The school but support it as I have _ any affliction fee such ruschert must He for _ Me with Mewill, and in 4. W.J. Frotherstone & also. Frod School. History. the school I see that Sam Yat Sen was an Old Goy. The school prospectus is at the end of the volume. ? Thank for most interesting the memo, a my the Gonsent is being asked to see for his brous on the scale a system of assistance to the school. Cofy corr? (include the memo, but not the volume) to Sov. byderf. casting his Dsons on 12. Feritierstone's memo, and in particules, on the scales system of assistance 6 the School горовает 1.20.70 in 16.6.34 Mr Mayhem about the course proposal. 17" "Fest is the Handmuster of the Institution, wher come in its intent during history in is doing what he England. What I had in mind when I suggslynn Seeing him was that it had ve maful for me t have had a lith with him in the wart of the Schade mergement making an appeal to the secting of State, and that it embl справьт bremseful for him within the 5-ofs. 'find at if prible form gen wilt on able taki arguisence of such July with than any appeal in which t 5.fs. in to take action to the extent of referring it on the Hongking Geornment, ought comm managing committee the school and not from the Headmaster, I support that the Hundesten the Committee in hongking are at verience but the tin hand the H.K. Guernment might claim that ther Committe not with my with the far as I The Ha. Dnuna negotiation and still grinj in babe th Committer ward the Ingkang Grommet. Would it not fuchefs be cough for your to achandbags with the why the mums and MELE D'Youth in the in that that he bay gaich pwritten in will be licken ist cant ccant if, sufs. by that There any appeal in made the s Committer through the H.K. fut. I would out f coux encorey him to make his Committed appeal- but what want sy tit will win win To Rev. Featherstone (4 Aur!). 6% - 24 JUN 1931 DESARCTED DEN FATUTE 7 here quen 17 "featherstone licking & informent or on thing and above. He agrees that it whe not be in the im ve done al min of the Then Putly 6. Bishop of London Irs. Comp. 51/12/31 letter from Victoring to outstanding portion of the loan of $175000 Bechet of hom DESTROYED UNDER STATHE to this school to its financial fosition is made in faras Comunes Report 38-43 of the Retrenchment- on the Education Deft was forwarded by the low in his desplata No 256 Reserved Nos. on 82798/31). In his commentary on the Prefort which • forwarded by desfatér No470 (No3 on the same file), that negotiations froceeding with the school authonties & that it would be fremature at this stage disclosure. ally tork Bogdósig Refly, that understands that negotiations regarding the Diocesan Bags School I Hong Kong are in frogness between the Gov & the school authorities what but that no get been received from Hong Kong. When received definite froposals have are received they will be given proposals careful conson Jameso Halle offre 5/1/32 11.32 for To Bishop of Ron. (6 And) ___ Irs petition from the Committee wishing the Goat van & all outelanding interest & sinking fund charges de cancelled. Recommends that the request be not acceded to & states reasons It is very unfortunate that the Diocesan Boys Scnool should have got into serious financial difficulties. Any setback in British educational enterprise in Hong Kong is to be deprecated, and I feel that possible possible should be done to avoid the closing down of the School. A decision having that effect would almost certainly be the subject of criticism. It appears to be beyond question that the School is doing a good work, though, not unnaturally, the School authorities rate the value of their activities more highly thun does the Governor. A perusal of the names in the School Register which will be found on pages 179-204 of the "History and Records" sent as a subenclosure to the despatch, makes it clear that the great majority of pupils are Chinese. Sun Yet Sen was a Day Boy in 1883. The School had very bad luck in the failure of two successive purchasers of its former site and in the fall of land values which followed. This resulted in the sale of the after site to the Government) at a price which, withsout taking into account$ 95,000 forfeited by the second purchaser, left a deficit of $131,866 on the original purchase price. The addition to this deficit of $40,000 expended by the School in interest on temporary loans etc, which had to be raised as a result of the purchasers default, made up the deficit to $171,866 which was wiped out by the Government loan of $175,000. The factor which secured the Secretary of State's concurrence in this loan was the undesirability of an English institution being indebted at my theat time to Chinese contractors. Ten months after the occupation of the new buildings, the School suffered a further set-back, through the occupation of these buildings for a period of 12 months by the Military Authorities. But in their petition the School authorities give no figures to indicate the extent of the damage suffered. References to the occupation of the School by the Military Authorities will be found in the "History and Records", in marked paragraphs on pages 7-71, 77-78, and 116 -120 from which it appears that the Military Authorities paid $5658 per month rental for the new building during occupation. After evacuation, the School agreed to pay $25,000 for the top storey which was added by the Military Authorities but agreement was reached to defer payment for five years and it is then to be made in ten instalments. The School also agreed to pay $4000 for material left by the Military Authorities. Against all this has been set off $20,000 which the Military Authorities agreed to pay as compensation. From the same pages of the "History and Records" it appears that the average attendance of pupils at material times before, during and after the military occupation, was as set out below: - March, April and May, 1926. 3 months after the move to the new buildings). March, April and May, 1927 6 months in temporary premises after occupation of new buildings by Military Authorities). March, April and May, 1928 After reoccupation of new buildings evacuated by Military Authorities). On the above figures it is clear that there was a serious drop in attendance at the School attributable to the military occupation, and this was by no means entirely recovered immediately the school took over its new buildings. ter a statement sent to Mr. Ellis- enclosure to (4) on this file in June, 1931, Headmaster stated, however, that the numbers again risen to about 300. From the above, it seems clear that the School has suffered a series of misfortunes which have been, to a large extent, outside the control of the school authorities. On the other hand, a definite proposal made by the Hong Kong Government which would have enabled the School to repay the loan in full and to start afresh without further assistance, though on modest modest lines, has been turned down by the School authorities and only a very cursory reference to it is made in their petition (para. 18). The Govr. has come to the conclusion that for many years the School has consistently failed to make an effort to adjust itself to its financial position, and he considers that even if the loan were cancelled, it is probable that a further request for financial assistance would sooner or later be made. Moreover, he sees no justification for giving such exceptionally favourable treatment to the Diocesan Boys School, as the remission of their debt would represent, when grants and subsidies to other schools are on a scale which is admittedly inadequate. These points seem to me to carry considerable It does not appear from the petition that any special efforts have been made to raise funds to meet the interest and sinking fund payments due to the Govt. On the contrary, the petition confirms the view expressed by the Government representative on the Committee, that the Committee do not appear to realise their responsibilities and think that the debt due to Government need not be paid. It is apparent that no half measures such as a further postponement of payment and payments interest and/or sinking fundes would meet the case, and I do not think that a strong enough case has been made by the School authorities for the remission of the loan and outstanding charges. I am not at all happy about the effect on the Sonool of refusal to cancel its indebtedness to Government. cannot, however, see in the case as presented, a sufficient reason for a decision other than that the request for cancellation of the outstanding portion of the loan and the interest and sinking fund charges, should be refused. Should a decision to that effect be taken, I hope a way may still remain open for further regarding the scheme proposed by the negotiations Govr, although the Govr. does not say so, the Committee of the School appear to have completely rejected the proposal. Unless the School authorities agree to some such proposal or can find some new source of revenue which seems very improbable) it a decision to refuse cancellation of of its indebtedness to hoo! well make it inforsible for the school on its work. This has been held Refoit of the Retrenchment Commission Which contains observations on the lover on fe for als for the future of the a when is siffe in circulation) school. In the meantime a letter has been received from the Theval Secreting of the Missioning Comicil Stue lurch Assembly which is attacked belves. We had better deal with ties first 10 Church Assembly Macron Emil Engunes whether has yet been regard to I do not suffore that the Missionary Cancel of the Church Assembly, likely to give material assistance the School to the extent required, if at all. ? Refly that the matter is still under conson or that the sofs would be willing consider remo from the Council the Subject. BuJameron J. A. Calder We had bellis wait from the Church Assembly; the information before me I see d lo dissml from the Gourmoi's recommendations. Hollowell Tell them that in with await their memo, as froioned "! To tursimery Council - (10 and)-23-2-32 12 at trust of Report of Retrenchment Commen. забришете Ch. Ameubly Menwary (onment. Wil sutart memo DESTROYED UNDER STATUTE Pure dag. 14 Minute by Mr. Mayhew It will be very difficult to persuade the H.K. Gost. that it should assist this ore liberal reale much more the it can afford to give afford to give to other schools. Moreover I am the view of impressed by the Retrenchment Commission that the maintenance of the school in its prent buildings & on the wisting site is altogether beyond the recouver Committe. The Goot' offer gives an offortunity for erecting to ambitions buildings on a cheaper site. J. A. Calder 15.3.327 rayhew has rut very strongly the argum- ents in favour of further overnment as-ist- ance to the school. ut I should feel much hesitation to over rule the overnor in such a matter. In particular I am impressed by the overnor s remark that it would not be desir- able to acord to a single institution, the financial management of which has not been wise. such exceptional treatment as is now asked for." e shall, I presume, continue to wait for the memo. from the Church Assembly. In the meantime I see no sufficient ground for pressing the overnor to reconsider his decision. #Rlowell 16.3.32. Continue to awant the nemo. Church Vernonang Juris memod". regarding be future of the school. I am afraid that there is nothing very helpful in the letter from the Missionary Council of the Church Assembly - no suggestion of material support for the Diocesan Boys' Stress is laid upon the importance of intimate cultural relationship with China. which we already fully appreciate. The Missionary Council would look upon the closing dorm of the school as a disaster for the whole of China. Here again we are, in at any rate some measure, in agreement. The acceptance of the offer made by the Governor of Hong Kong would, however, have avoided the closing down of the school. To this no reference is made. At the end of their letter the Council be reedn't rub Ly stress the inadequacy of the salaries at present paid to the staff. The Governor pointed this out and gave it as a reason for expecting that, even if the loan from Govt. and the interest and sinking fund charges were reritted, the school would still be likely to approach the Govt. for further financial assistance. The letter from the Church Assembly in fact merely amounts to a strong plea for the cancellation of the unpaid balance of the loan, together with interest and sinking fund charges. No new arguments in favour of such cancellation are brought I fear, therefore, that the request of the school for the remission of loan and sinking fund charges must be turned down. ? Inform the Governor that the petition of the school authorities has been very carefully considered but that the S. of S. is impressed by the view of the Retrenchment Commission that the maintenance of the school in its present building and on the existing site is altogether beyond the resources of the Managing Committee, and by the Governor's contention that it would not be desirable to accord to a single institution the financial management of which has not been wise] such exceptional treatment as is now asked for. Express a hope that the way may be still open for further negotiations on the Governor's proposals for the future of the school; but say that the S. of S. is unable to intervene on behalf of the Committee of the School, and ask that the Committee be so informed. Subsequently Subsequently a letter will be required to the Missionary Council of the Church Assembly telling them what has been done. Hufgamerzy Headmaster, Liverpool College (15) ? As froposed by Mr. Jameson. &. A. Calder Sir S. Wilson. Arlowell mn Vischu You may wish to send HE MENT ÉS This is a paper which Sir R. Hamilton on grounds, viz:- (1) as technically a "petition" and (2) as relating to a question in which the Educational Committee is likely sooner or later to interest Moreover, the matter is one that may well arouse interest in Parliament. The Hong Kong Diocesan school is unique of its kind, and I share Mr.Mayhew's reluctance to see it disappear. But, circum- stances being what they are, I do not see how we can do otherwise than accept the Governor's view. Bir R. Hamilton You should see his R. Hamilton spoke to me about this. Drafts her with for VS. 2/5/32 6 MAY 1932 18 To Missiomay 19. C: 122. (9) Messimary. Wichs, (18) with thank; 2ECTROHEY UMWER STATUTE Pure dag, 82790/1931. Hong Kong. Mr. Calder. 30/4/32. Parkinson. Mr. Tomlinson. Sir C. Bottomley. XSir J. Shuckburgh. 2 Permt. U.S. of S. ★ Parly. U.S. of S. Secretary of State. HONG KONG. 2 drafts. Downing Street, April, 1932. With reference to your despatch No. 533, of the 23rd of December, I have, etc. to inform you that the petition from the Committee of the Diocesan Boys' School asking that the loan and all outstanding interest and sinking fund charges should be cancelled, has been very carefully considered, but that I am impressed by the view of the Retrenchment Commission that the maintenance of the school in its present building and on the existing site is altogether beyond the resources of the Managing Committee no less than by your view that it would not be desirable to accord on a single institution such exceptional treatment as is asked, for. 2. In the circumstances, I have to request you to inform the Committee of the School that I regret that I am unable to grant their petition that the loan and all outstanding interest and sinking fund charges should be cancelled. I trust, however, that the way may still be open for further negotiations as to the future of the school, as I agree that it would be unfortunate if it were closed down. The Committee should give serious consideration to the proposal made by your Goverment, or alternatively, it should submit proposals by which the finance necessary to continue the school on its present lines may be obtained without relying solely on exceptional terms from the Government. I have, etc. (Sad) P. CUNLIFFE-LISTER. Calder. 30/4/32. Mr. Parkinson. Mr. Tomlinson. Sir C. Bottomley. Sir J. Shuckburgh. 2/5/32 Permt. U.S. of S. 5. Whelt Parly. U.S. of S. Secretary of State. 82790/1931. Hong Kong. Downing Street, 1939 April, 1932. I am etc. to ack. the THE SECRETARY OF THE MISSIONARY COUNCIL. 2 drafts. receipt of your letter of the 17th of March, reference AWD/BJG, and to request you to inform the Missionary Council of the Church Assembly that he has given careful consideration to the views expressed in your letter in support of the appeal made by the Committee of the Diocesan Boys' School, Hong Kong. While he fully appreciates the good work in the cause of education which has been accomplished by the School, he regrets that he has felt compelled to concur in the view of the Governor of Hong Kong Hong Kong that it is not possible to accord to the school such exceptional treatment as would be' implied by cancelling the Government loan and all outstanding interest and sinking fund charges. 3. Sir Philip Cunliffe-Lister trusts that the Committee of the School will now give careful consideration to the proposal which has been made by the Hong Kong Government which would enable the school to continue on more modest lines on another site, or that alternatively, the Committee may be able to obtain the finance necessary to continue the school on its present lines without relying solely on exceptional terms from the Government. (Signed) H. R. OOWELL THE HEADMASTER. TEL. ROYAL LIVERPOOL COLLEGE J.H. Calder, Esq., The Far East Department, The Colonial Office, Mar. 31st., 1932. Dear Sir, I venture to introduce myself first as a close friend of Mr. Arthur Kayhew, with whom I spent five years on the staff at Eton, before coming here, and also as the educational commissary to the Bishop of Victoria, Hong Kong. It is on his behalf that I have recently been negotiating, with Canon Davies, for the appointment of a new headmaster of the Diocesan Boys' School at Kowloon, who will be asked to take over the school at a very difficult period in its existence. We have, however, secured an exceptionally able man in Mr. Sargent, of Wellington College. I enclose a statement about him, setting forth the details of his career. Mr. Sargent is fully aware that the Diocesan School at Kowloon is going through a financial crisis, but from all he has heard of the School, he is quite prepared to burn his boats' at Wellington, and is going out to Hong Kong in the hope that the School will weather the present storm, and continue its useful work as an educational centre for the THE HEADMASTER. TEL. ROYAL LIVERPOOL College important area in which it stands. I may say that Ir. Sargent is not only throwing up a valuable post as Sixth Form Physics master at a leading Fublic School; he has also just refused a House mastership at Wellington, in order to be free to go to Hong Kong. I mention these points because I believe that an appeal is now before the Colonial Office for relief from the Government debt on the buildings. Obviously the future of the School will be vitally affected by the decision taken by the Government over here, with regard to this appeal. I do not know when that decision will finally be made, but in case the matter is coming up for settlement this week, I felt I ought to let you know about Mr. Sargent's appointment, which was only made finaly yesterday. Canon Davies, who was, I believe, responsible for the forwarding of the appeal to the Colonial Office, as Hon. Secretary of the Advisory Council of Christian Education Overseas, is away from London till next Monday. I understand that Mr. Mayhew has given your name to someone at the Advisory Council as being kindly willing to keep them in touch with the matter. I thought, therefore, that in case the matter was urgent, I should let you know at once how the position stands with regard to the Headmastership of the School. If no decision is to be taken until after Monday, doubtless Canon Davies (to whom I am sending a copy of this letter) will write himself, on his return to the office. Yours very truly, (Rev.) Ruy Howard- The Diocesan Boys' School, Kowloon. The vacancy created at the Diocesan School, Kowloon, by the retirement, this winter, of the Rev. W.T. Featherstone from the Headmastership, has now been filled by the appointment of Mr. C.B.R. Sargent, Sixth Form Physics Master at Wellington College, in Berkshire. Mr. Sargent, (who is a son of the Rev. D.H.G. Sargent, vicar of St. Luke's, Redcliffe Square), educated at St. Paul's School, entered St. Catharine's College, Cambridge, as a Science Scholar in 1925, and obtained a First Class in Part 1 of the Natural Science Tripos in 1927, and a Second Class in Part II (Physics) in 1928. In addition to his Science work at Wellington College, Mr. Sargent has been assistant Scout master of the second Scout Troop, President and Founder of the Newtonian Society, and Toc H correspondent. He will take up his duties at Kowloon next June. As he is now only 25 years old, it is believed that his appointment may break the record recently set up by the recent appointment of yet another Wellington master, Mr. H.B. Jacks, to the headmastership of Willaston School, Cheshire. The Diocesan School was founded in Hong Kong in 1869, and since 1924 has occupied an excellent site and fine new buildings on the mainland opposite, at Kowloon. There are some three hundred boys in the School, of whom many are boarders. The Bishop of Victoria, Hong Kong, is Chairman to the Governing Body, which includes many leading men of the district, both British and Chinese. Ansa (18) ACKD. BY P.C. routine letters should be addressed "The Secretary of the Missionary Council." CHURCH ASSEMBLY. MISSIONARY COUNCIL. 18 PARIS32 CHURCH HOUSE, Telephone: VICTORIA 1326 & 1327. Telegrams: "Asmisscil," PARL, LONDON. WESTMINSTER, S.W.1. 17th March 1932 1. I have the honour to refer you to your No. 82790/31, dated February 23rd, 1932, in which you state that the Secretary of State will be kind enough to await a memorandum on the subject of the Diocesan Boys' School, Hong Kong, from the Missionary Council of the Church Assembly. 2. The Missionary Council wishes to express its great appreciation of the opportunity afforded to it by submitting a memorandum on this subject. 3. It desires to support the appeal made by the Chairman and Committee of the above school for the cancellation of the unpaid balance of the loan granted by the Hong Kong Government on the authority of the Colonial Office in 1927, together with such interest and sinking fund charges as are overdue. The importance of the Diocesan Boys' School and its value to the Colony have been fully set forth in the memorandum submitted to His Majesty's Government by the Chairman and Committee of the school. Without repeating the arguments set out in the said memorandum for the continuance of the school, the Missionary Council is desirous of drawing the attention of His Majesty's Government to two considerations which have, in its opinion, considerable bearing on the situation. The Report of the British Economic Mission to the Far East, 1930 1931, drew attention to the extreme importance of establishing a more intimate cultural relationship between Great Britain and China, and this not only with a view to promoting trade but because of the benefit they believed would accrue to China itself, now passin through a complete transfor- mation of her political, social and industrial life. The The Under Secretary of state for the Colonies. 17th March 1932 Commission considered it a great misfortune to China that the urge of this transformation should have come chiefly from the industrial civilisation of the United States and the Soviet Republic of Russia, countries presenting, though in very different ways, the greatest possible antithesis to the older culture of the Chinese Empire, with the result that the reactions brought about were correspondingly violent and extreme. They felt that had more of the youn, leaders of China been educated in En-lish traditions, much that was best in the old Chinese civilisation might have been preserved and the changes might have been accomplished with less pain and greater benefit to all classes of the people. With this in mind, the Commission urged that steps should be taken to devise means for attracting Chinese students in considerable numbers to British universities and workshops. In this connection the Missionary Council would desire to press an even wider consideration. The English educational tradition is fundamentally a Christian tradition and in the best English educational ideals the school has been regarded as a society in which a way of life is both learned and practised. With this has gone freedom for development of personality and for experiment. It is this fundamental contribution of English education that Eastern nations appreciate and seek. While it is no doubt highly desirable to attract Chinese students in increasing numbers to British universities and workshops, it is surely of even greater importance to secure that wherever possible a strong British cultural influence should be exerted in the country itself and that every effort should be made to promote In and foster this influence in its educational institutions. this respect Hong Kong, as a British Colony and the centre of British cultural influence in China, presents an unrivalled opportunity. To close down a school with the past traditions and future possibilities of the Diocesan Boys' School at the present time would seem to the Missionary Council to constitute a real disaster, not only for the Colony, but for the whole of China. 4. A second consideration, and one with which the Missionary Council is immediately concerned, is the effect which the financial position of the school must have upon the recruiting of masters from this country. The Bishop of Victoria (Hong Kong), Chairman of the The Under Secretary of State for the Colonies. 17th March 1932 School Council, requested the Secretary of the Missionary Council to try to find for the school a Headmaster and Assistant Master. In view of the financial position of the school the salary which is offered for these two posts is such that experienced Headmasters of En lish public schools express the utmost doubt as to whether any one could be found who was willing to accept the posts on such terms. Nevertheless we have received a definite offer from a member of the staff of Wellington Colle e to go out as Headmaster, and two young Oxford men have offered to take the post of Assistant Master. The Missionary Council has felt gravely doubtful whether it is justified in advising these men to accept the serious risks which would be involved in taking up these appointments in the present circumstances. It feels confident, however, that where young Englishmen of their type are to be found who are ready to forgo their own prospects at home because of the opportunity of service which a school like this affords, it cannot be the wish of His Majesty's Government that the Colony should be deprived of an institution which brings the boys and young men of the colony under influences of this kind. In conclusion I am to express again the Missionary Council's high appreciation of the courtesy which has allowed this memorandum to be submitted. Your obedient Servant, The Under Secretary of State, The Colonial Office, And arres General Secretary. The traditions end history of this school entitle its present request to serious consideration. This was recognised by the Governor in his despatch of 22. 1. 31., where he points out that the closing down of the school would mean "not only a serious loss to the community of educational facilities, but also a set-back to British educational enterprise" 2. So far as I can make out, it is the only aided secondary institution in Hong Kong in which essentially British influence of the right type is brought to bear on students not only from Hong Kong but from China proper, in combination with Christian religious influence. I doubt very much whether any Government institution could do the same work that is being done by this school. If the school were closed, the Government would, I think, have eventually to support in its place a school of their own, which would not be, from the point of view of character training and British influence, so effective, and would impose a far heavier burden on public funds. It seems to me unlikely that the Diocesan authorities in Hong Kong will ever accept the proposal that has been made by the Government, which is virtually to place a Government school, at present badly situated and housed, on the site and in the buildings now occupied by this school, and to give the Diocese a chance of opening & school of quite a different kind on a inferior site and in far humbler buildings. This will naturally not appeal to those who have subscribed considerable sums in the past towards the maintenance and buildings of the school on its present site. it is quite possible that if their hand is forced, the Managers may have to give up the site, get what they can for the buildings, and divert their attention from secondary education. In the present financial circumstances, and more particularly with reference to the line taken in the Retrenchment Committee Report, it would be useless, I imagine, to consider even the possibility of remitting the loan. But I suggest that the Government ought to be invited to consider rather more seriously than they have done the desirability of raising their annual grant to the school with special reference to its present financial embarrassment and the claims that it has for preferential treatment. This would be quite in accordance with the general policy advocated in the Grant-in-Aia Memorandum of the Advisory Committee on Education, significant extracts from which have been quoted in the Managing Committee's letter. Would it not be possible for the Government to remit, say for a period of ten years, payment by the school of the interest and sinking fund charges on the and to treat such remission as an annual addition to the grant? From the accounts point of view it would probably be easier to remit a payment of $14,000 per annum than to increase the estimates with a view to payment of en additional grant to this extent, though if that additional grant were spent in payment of the interest, it would, of course, come to the same think in in the end.. In support of this suggestion the accounts of the school require careful consideration. From the accounts for a nine months' period, which have passed unchallenged through the Government, I gather that for this nine months' period staff salaries and pensions cost $42,000, while the Government grant amounted only to $87,545. The total income from fees and Managers' funds, etc., amounted to $56,000, i.e. more than seven times the amount of the Government grant. If to the present annual grant of $10,000 the amount of interest and sinking fund charges of $14,500 were added, the total grant for the year would amount only to $24,5000, which is only slightly in excess of the salary bill for the English recruited masters on the staff. Malaya the Government grant covers the difference between the cost of the staff salaries as approved by the Government and the fee income of the school. In England and Wales the Government pay a capitation grant for secondary schools of 7 guineas per pupil. There are about 320 pupils in this Diocesan School and the total grant for this number, calculated on English rates, would amount to approximately the same as the total grant of $24,5000, as now suggested for the school. It has also to be noted that the Government gave no grant towards the school buildings, though it is true, of course, that they provided the site. If the grant were increased in the manner proposed for a period of ten years, it might be possible before the close of that period, if the financial position improves at home, for & fund to be raised by the Church, either towards re-payment of the Loan, or payment of the interest, or the financial position in Hong Kong may so much have improved that grants to all secondary schools may have become possible on the generous, but, in my opinion, not excessive, scale now proposed temporarily for this particular school. 9. 3. 32. The Diocesan Boys School Extract of Report of Retrenchment Commission Although the question as to the future of the Diocesan Boys' School, Kowloon, has not been specifically referred by the Government to the Commissioners, and although they have been given to understand that the matter is sub-judice, they feel it incumbent upon them to sound a grave note of warning in this connection, as the subject has been forced upon then by the Head Master, the Rev. Mr. Fetherst one. They would first of all note that the Government has advanced to the Diocesan Boys' School the sun of $175,000 and that at present the School Authorities are in default as regards the payment of sinking fund and interest. The Cannissioners regret to have to record their opinion that adequate safeguards have not been taken for the security of these public funds, and they consider that in future any such advances of money or grants of land by the Government should only be made with the express sanction of the Legislative Council. It would seem also to the Commissioners a matter for regret that a site so fine and extensive, and indeed possibly the best, in the residential * Encl Nol to (1) on 82798/1/31 residential portion of Kowloon, should have been allotted for the purpose of building this school: the lack of policy on the part of the Education Department would hereagain appear to be demonstrated. Two of the finest sites in the Colony (i.e. the Diocesan Boys' School, Kowloon, and St. Stephens' College, Stanley), have been allotted to den aninational schools, while the Government has not only built King's College - at a cost of one. million dollars in what one may tenn a back street of Hong Kong and without adequate or suitable surroundings, but also proposed to build a new Central British School, likewise at the cost of one million dollars, in a place remote from the inhabitants whose children it is proposed to educate therein, and near the purlieus of old Kowloon City. The population of Kowloon numbers about 300,000. For the education of the sons of the Chinese section of this population the Government has provided one out-of-date District School at Yaumati, which is one of the most congested areas in the peninsula. It may be remarked in passing that not even this much provision is made for the education of the Chinese girls. Further, while cognisant of the fact that the Diocesan Boys' School has filled an important place in the educational life of the Colony, the Commissioners cannot but wonder how Government reconciles its liberality in granting to the school this large site (covering as it does twenty three acres) and the sun of $175,000, while it permits the Central British School, where 240 boys and girls are educated, to be housed in a jumbled up collection of wooden huts with no proper school amenities. The Commissioners even at this late date would suggest that it might yet be possible to take over the Diocesan Boys' School as the new Central British School, sell that portion of the ground not required and, with part of the one million dollars which it is at present proposed to spend on the erection of the new Central British School, to provide instead a school for the Diocesan Boys in a building and situation more commensurate with the resources of that institution and on a less ambitious scale than the existing huilding. From an inspection of the present premises it can be realised that the School has been built and the grounds laid out in the most lavish manner, with the result that the upkeep will be a heavy annual charge, and one which will very likely and from time to time cause applications to be made for further aid from the public funds of the Colony. Although such assistance on the part of the Government might be considered a laudable action, the Commissioners feel that it would be unfair to finance only one single institution when it might mean neglect of the elementary education of those thousands for whom the Government at present does nothing, though the Commission considers considers that it will be compelled to do so in the future. The Commissioners would at this juncture point out that they can find no record in the Reports of the Director of Education or of the Inspectors of English Schools of these officers having in any way commented upon the heavy expenditure on buildings by the Diocesan Boys' School, nor do they appear to have foreseen a possible default in the repayments to the Govern- ment, although they must have had sufficient details and statements of account to have realised the financial situation of the institution in question. 43. The Commissioners would finally suggest that, if such an arrangement can be arrived at, the proceeds of the sale of the site of the present Central British School, together with the balance, after providing for the Diocesan Boys' School, of the one million dollars proposed for the erection of the new Central British School, be earmarked in the future, and as the finances of the Colony permit, to provide establishments which will be necessary for the provision of elementary education for the children of the Chinese residents of the Kowloon peninsula. Extract of the Governor's Commentary on the Report of the Retrenchment Commission. Paragraphs 38 - 43. Government is in touch with the authorities of the Diocesan Boys School and * Encl witi (3) on 82798|1|31 negotiations negotiations are proceeding. It would be premature at this stage to make any disclosure. The Executive Council is being kept fully informed. Incidentally it may be remarked, with regard to the last sentence of paragraph 39 that the loan of $175,000 to the Diocesan Boys' School was made with the full knowledge and concurrence of the Secretary of State the Executive Council and of the Finance Committee which contains all the Unofficial Members of the Legislative Council. The reference to the proposed new Central British School is based on inadequate information. Government is unaware of the source from which the Commissioners derived the erroneous idea that the cost was to be one million dollars while the site was selected after consultation with the Board of Education including the representative of the Kowloon Residents Association and with its concurrence. The cost is estimated at about half a million dollars for the buildings necessary to enable the present school buildings to be evacuated but the finances of the Colony will not permit of the early commencement of the work, however desirable. Mr. Delahunt. 82790/31. HONG KONG. 22. 2.32. Bickle 22 75 Mr. Parkinson. Mr. Tomlinson. Sir C. Bottomley. Sir J. Shuckburgh. Permt. U.S. of S. Parly. U.S. of S. Secretary of State. Downing Street, February, 1932. THE SECRETARY THE MISSIONARY COUNCIL, THE CHURCH ASSEMBLY. I am &c. to acknowledge the receipt of your letter of the 8th of February relative to the future of the Diocesan Boys' School, Hong Kong, and to inform you petition appeal from the Une Committee I Ichool fons Knough the that theater is still under N.P. H. SJS. consideration, and that he will 2 Before cominy com-rý decision on the matter Joy I will act on the subject by. await emorandum on the Missionary 'A which Council of the Church Assembly des vé li suemér. on the matters I am &c., (Signed) H. R. COWELL, utine letters should be addressed "The Secretary of the Missionary Council." Telephone VICTORIA 1326 & 1327 CHURCH ASSEMBLY. MISSIONARY COUNCIL. CHURCH HOUSE, WESTMINSTER, S.W.1. Telegrams: "ASMISSCIL," PARL, LONDON. 8th February 1932. Curice- (ill The Missionary Council of the Church Assembly is interested in the future of the Diocesan Boys' School, Kowloon in the Diocese of Hong Kong, and I have been in correspondence with the Bishop of Victoria, Hong Kong about it. I should be obliged if you could let me know whether a decision has yet been taken in regard to the appeal sent home by the Bishop, since if it is not too late the Missionary Council would like to be allowed to make representations on the subject, either by submitting a Lemorandum or by interview. I have the honour to be, The Right Hon. Sir Philip Cunliffe-Lister, K.B.E, M.C., M.P., His Majesty's Secretary of State for the Colonies The Colonial Office, hitehall. Your obedient servant Andaires General Secretary. No. 533. Encl. No. 1. Encl. No. 2. GOVERNMENT HOUSE. HONG KONG. 23rd December, 1931. With reference to Lord Passfield's despatch No.94 of the 23rd of March, 1931, on the subject of the Government loan to the Diocesan Boys' School, I have the honour to forward a petition from the Committee of the School asking that the loan and all outstanding interest and sinking fund charges be cancelled. A copy of the Balance Sheet and state of the Working and Profits and Loss Account for first nine months of this year is also enclosed. circumstances under which the loan was originally made were fully set out in Sir Cecil Clementi's despatch No.61 of the 11th of February, 1927. 2. The main argument advanced by the petitioners in support of their claim is that the only alternative to cancellation of the loan is the closing of the school, with the consequential loss to British prestige and educational culture in the Far East. う。 This contention is not wholly correct. Government has made to the School an offer which, whilst it would enable the School to repay the loan in full, 30127/27 THE RIGHT HONOURABLE SIR P. CUNLIFFE-LISTER, G.B.E., M.C., M.P., Enclosure No. 1. HONG KONG, November, 1931. The Right Honourable Sir Philip Cunliffe-Lister, G.B.E., M.C., His Majesty's Principal Secretary of State for the Colonies. I have the honour to transmit to you, through the good offices of His Excellency the Governor of Hong Kong, an Appeal from the Chairman and Committee of The Diocesan Boys' School & Orphanage in regard to the unpaid balance of a loan granted by the Hong Kong Government in 1927 on your authority. The School has been unable to meet the half-yearly charges for interest and sinking fund since July 1930 and its financial situation is such that there is no prospect of it being in a position to resume payment of these charges. Hong Kong Government has not seen fit to accede to the Committee's requests for relief and assistance and as the Committee are strongly adverse to the alternative of closing the School, which has an honourable record of over sixty years' service to the Colony, they beg to place before you the attached statement setting forth, as briefly as possible, the history of the school and the circumstances in which the School has become financially embarrassed. They feel sure that you will appreciate the importance of maintaining in this Colony an institution which is definitely engaged in the diffusion of British influence and they trust that their case will convince you that the School is worthy of exceptional treatment. The Committee accordingly appeal to you to authorize the Hong Kong Government to cancel the outstanding portion of the loan and to cancel such interest and sinking fund charges as are overdue. I am, Sir, Your obedient servant, P. S. CASSIDY Hon. Correspondent, THE DIOCESAN BOYS' SCHOOL & ORPHANAGE. © &c&c & & & & & & & & & & & & &&&&&&&&&& & & & & & & & & & &&&&&&&&& THE DIOCESAN BOYS' SCHOOL & ORPHANAGE. HONG KONG. c &c &c &c &c &c &c &c &c &o &c &c & & & & & & & & & & &c & c & & & & & & & & & c & c &c &c &c & c E Separately THE DIOCESAN BOYS' SCHOOL AND ORPHANAGE, HONG KONG. (1) The history of the Diocesan Boys' School is fully recorded in the book which accompanies this Appeal. Stated briefly, it commenced as a School for girls in 1860. It admitted boys in 1869 and in 1892 was divided into two Schools, one for girls and one for boys. It is the boys' School which is the subject of this Appeal. (2) From 1869 to the present day the School has been under the control of a Committee of business and professional men in the Colony, under the Chairmanship of the Bishop of the Diocese. (3) Boys of any nationality are eligible to join the School either as Boarders or "Day Boys", and of these a few receive free board, lodging and tuition, whilst others receive free education only or education at reduced fees. (4) It is a Church of England School, the only one in Hong Kong available for boys other than Chinese, but, unlike other Church Schools, receives no support from the Church Organizations established in England for work abroad. (5) The Scholars are mainly recruited from the Colony of Hong Kong, although some come from other Ports of the Far East. These latter return eventually to their homes, carrying with them the cultural influence of the School which reproduces as faithfully as possible British ideals in Education. (6) The School depends on two principal sources for its its fees and the Government Grant. (7) The principal annual expenditure, as might be anticipated, is in connection with the Teaching Staff who, with the exception of the late Headmaster, have been and are most inadequately paid. A statement, showing the salaries paid, accompanies this Appeal (Appendix "A"). (In this connection it is necessary to point out that the School cannot be managed on the same financial basis as the Roman Catholic Schools which are staffed by teachers who are generally members of a religious order. On the other hand it is felt that the more distinctive English ideals in education in this School are worth the extra cost involved). The next most important item of expenditure is "Maintenance" which represents the cost of Board and Lodging of the Boarders and such of the Staff as live on the premises. (8) The School's present financial difficulties result from the political disturbances which have also affected the Colony and date more particularly from 1925 when the Strike- Boycott occurred in the Colony. This, most unfortunately for the School, coincided with a period during which the School was being transferred from Hong Kong to its new site on the mainland. Its old premises on the Island of Hong Kong had become congested and unsuitable, and the new site was in every way advantageous to its well being. (9) The site in question, consisting of 23 acres, was granted free by the Hong Kong Government for the purposes of a School. It was a very uneven piece of land however, and a sum of $135,000.- had to be spent on levelling it. On the site thus prepared buildings ultimately costing $553,000.- were erected. (10) This new scheme was not undertaken by the Committee without careful thought. It was based on sound business considerations. (11) The old site had been sold, the documents signed and the deposit paid. With this money in view the contracts were let and the new school commenced. Unfortunately the purchaser failed but the Committee were able to find another purchaser to take over the contract and were apparently in the same satisfactory position as before. (12) The calamitous Strike-Boycott in 1925 referred to above resulted in a serious fall in land values and the second purchaser failed. The Earnest money from the defaulting purchaser was forfeited but nevertheless the later sale of the property to the Government entailed a loss to the School of $131,866.50 made up as follows:- Sale of old site less Earnest money $480,366.50 95,000.00 $385,366.50 Price paid by the Government 28.7.27 253,500.00 $131,866.50 (13) In addition to this loss and as a result of the default, the School was forced to incur an expenditure of some $40,000.- in Interest on temporary loans raised during the construction of the new Premises, and on overdue Building Certificates. (14) It should be particularly noted that in consequence of the change in general conditions the original Building Plans were modified as far as practicable to effect whatever saving was possible. (15) As a result of the above circumstances over which, it will be appreciated, the School Committee had no control, it became necessary to obtain from the Government a loan of $175,000. (16) The change over to the mainland was itself a disturbing factor, to overcome which, continuity of possession of its new buildings was essential. The School had actually been in occupation for ten months only when it was compelled to vacate the premises, which were required by the Military Authorities for use as a Hospital, in consequence of the presence in the Colony of a large number of troops forming part of the Shanghai Defence Force, who were stationed on the mainland. (17) The period of this dislocation was approximately twelve months, during which time the School was forced to occupy premises of an entirely unsuitable nature and it will be readily realized that its financial troubles were further aggravated as a result. (18) The necessity for putting the School on its feet fi nanci ally has received the Committee's anxious consideration for some time past. Suggestions have been made by the Hong Kong Government which the School Committee have found themselves unable to accept as they would have involved the extinction of the School as an individual unit of the character which it now has, and which it is felt to be most important to retain. (19) The possibilities of retrenchment and economy have been explored, but a thorough investigation has shown that the School is administered as economically as possible. (20) The possibility of augmenting its income by an increase in fees has also received careful consideration. No increase is possible at the present time, as the School is to a large extent on a competitive basis. (21) It might be suggested that a saving could be effected if it did not take free boarders or grant free education or education on reduced terms in connection with the Eurasian Orphans and others which it receives. The saving on this score would, however, be small, as the number of boys involved is not large (in November 1931 there were 12 Free Boarders and 3 Free Day Boys plus 8 Boarders and 35 Day Boys on reduced terms out of a total on the Register of 322 Boys in all), and a certain amount is collected in Subscriptions and Donations annually against this item. (22) It might here be recalled that the School was originally started as a School and Orphanage and it would hardly be in keeping with British tradition to relinquish this side of the work to obtain a minor financial benefit at the expense of these poorer boys. (23) In this latter connection particularly and in its general operation, emphasis must be laid on the fact that, apart from all other considerations, the School definitely relieves the ratepayers of the Colony by providing a sound education at a very low cost to the Government. (24) This is readily apparent from the fact that for many years it has averaged considerably more than 250 boys on its Register, the Government Grant varies of necessity but over the last four years has approximated $10,500.- per Taking these figures as a basis, the cost of education to the Government has been $42.- per head. (25) If it is argued that the cost to the Government this year has, in actuality, been greater than $10,500.- owing to the non-payment of Interest and Sinking Fund charges on its Loan (representing together a sum of $14,000.- per annum), on the other hand it must be remembered that the total cost to the Government this year, even taking this figure into account, is approximately $24,500 $98.- per head. (26) In giving consideration to the above figures it is felt desirable to draw particular attention to the fact that the Hong Kong Dollar, which had averaged 2/- for some years, fell during 1929 and 1930 until it reached a level of just under 1/- and its value has remained at this figure during the greater part of 1931. The cost of education, therefore, per head, in terms of Sterling, has not risen materially in spite of the increased Dollar cost. The School itself has suffered materially from this drop in value of the Dollar in that payments for Passages and Home Leave have practically doubled in terms of Dollars, and in this connection an important point to be recorded is that Masters on Sterling pay while in the Colony have received no compensation for the drop in the Dollar. It is only while on Home Leave that salary payments are made in Sterling at the current rate. No compensating increase in Income has been received to offset items of "Passages" and pay on leave, the Government Grant, for example, has remained the same in Dollars. (27) The continuation of the School as a separate Unit depends entirely on the attitude likely to be taken up by the Government in connection with the loan to the School, the Interest and Sinking Fund on which are a burden which it is unable to meet. (28) A cancellation of the loan of $175,000.- plus Interest and Sinking Fund payments from 30th June 1930 would enable the School to carry on, in spite of general World conditions, provided it encountered no further dislocation from outside political disturbances, but in order to enable it to be developed as it should be and to compensate its Teaching Staff adequately, further assistance in the way of an Annual Grant from the Government of Hong Kong is needed. (29) The Committee of the School had anticipated that a revision in the Grant-in-Aid system which is contemplated and Budgeted for this year would have provided substantial aid in this direction, but, contrary to anticipations, the additional payment to the Diocesan Boys' School (a matter of less than $300.-) will be so small as to be practically negligible. (30) Nevertheless, while the School Committee feel the pressing need of an immediate increase in the Government Grant, they are content to await what they feel, eventually, to be inevitable, that is a general revision of the system of Grants, so long as they can obtain freedom from the present load of the loan of $175,000.- plus the Interest and Sinking Fund charges already referred to. (31) It is therefore the intention to continue the School until such continuation becomes entirely impossible for financial reasons, a position which will rapidly be reached unless relief is forthcoming. (32) To summarise the position, what the School needs imperatively if it is to survive, is freedom from such charges for Interest and Sinking Fund as it has had to provide in the past and found itself unable to do for the first time in the latter half of 1930. (33) Commencing next year (1932) and for the years 1933, 1934 and 1935 the School has to provide for payments of $2,500.-, $2,500.-, $2,500.- and $1,900.- respectively to the Military Authorities in respect of certain work to the School buildings completed by the Military Authorities and taken over by the School on these terms. More than this the School is unable to (34) The School has thus reached a crisis. Its continuation at all depends on the goodwill of its Teaching Staff and their willingness to accept the meagre salaries paid them together with freedom from the Interest and Sinking Fund Charges already referred to, and, unless it is to receive immediately an ingreased Grant-in-Aid, the School will require a period of at least five years under these conditions in which to recover its position. It requires freedom from the burden of the loan to enable it to contemplate the possibility towards the end of that period of some moderate increase in pay for its Teaching (35) A copy of the last Balance Sheet and Accounts of the School is attached here to (Appendix "B"), which sets out its financial position, and attention should be drawn to the fact that the Endowment Fund, already small, has since been depleted in order to meet pressing financial engagements. The amount thus expended is $25,000 leaving the sum of only $25,000.- in the Fund at the present time. (36) The School Committee would not have had recourse to this extreme measure had it had any other means of satisfying outstanding creditors who had already displayed great patience in connection with amounts due. (37) If the School is closed it will be one centre less for the diffusion of British cultural ideals in China. The Report of the Economic Mission to the Far East already deplores the meagre part played in that respect and strongly urges that prompt measures should be taken to extend British cultural influence to the same extent as that exerted by the United States of America, and also to combat Russian influence. It is claimed that the School has been discharging that imperial duty for the past 60 years and is therefore worthy of such support as will enable it to continue to perform a task, which the report of the Economic Mission stresses as urgent and highly important. (38) The Committee would specially emphasize that the necessity for the continuation of the School is amply illustrated by the general expansion of the Colony since 1913, and the steady growth of the demand for education. If the graph on page 37 of the Report of the Director of Education for Hong Kong for the year 1930 is examined, it will be seen that the growth of the School population in the English Teaching Schools has been from 6,442 in 1913 to 17,561 in 1930. The Government appear to recognise this need for the provision of educational facilities by the fact of their having recently made a Building Grant to the La Salle College (a Roman Catholic Institution whose Teaching Staff will presumably belong to the Foreign Religious Order responsible for the erection of the building), now approaching completion and situated within half a mile of the Diocesan Boys' School. (39) It would be a grave misfortune for the Colony if its educational facilities were contracted at the expense of the oldest Non-government School and if an honourable tradition built up laboriously in the course of 60 years were lost. (40) The only existing alternative for many of the students would be the commercialised schools, housed in odd corners of the Colony and lacking most of the essential qualities looked for in a school. The Government schools cannot provide accommodation for their resources are taxed to the limit the numbers clamouring for admission always being in excess of the places available. (41) Finally the Committee confidently ask for favourable consideration of this Appeal in view of the following statement from the memorandum of the Advisory Committee on Education in the Colonies:- It is not only because aided institutions "may be a cheaper form of education than "Government institutions that voluntary efforts "in education are to be encouraged. Private "management is valuable in any system of "education because it ensures that variety and "play of personality which is important in "every education system. Moreover, a Government "may hold that certain kinds of education are "more suitably given by religious bodies than "by the Government. Lastly, as is recognised "in the Memorandum quoted above, the greatest "importance must be attached in all areas, where "contact with civilization tends to weaken "tribal authority and the sanctions of existing "beliefs, to religious beliefs and moral "instruction. It is recognition of this need "that impels Governments to desire to assist "forms of education which rest on the basis of "religious beliefs.... The statement of policy that "has been quoted above makes it clear that if ""the required standard of educational "efficiency is reached, aided schools should be "regarded as filling a place in the scheme of "education as important as the schools conducted "by Government itself."" (42) Referring to the need of guiding principles in the matter of grants the Report adds:- .while the establishment of definite "principles is clearly desirable, provision "should also be made for reasonable elasticity "in the application of these principles. For "instance, additional help may well be justified "where, for purely temporary reasons, an agency "that has done good work is financially "embarrassed". • C. R. Victoria Hong Kong.... Rt. Rev. the Bishop of Victoria, A. H. Comp ton. Hong Kong. (Chairman). Manager, Messrs. David Sassoon & Co., Ltd. (Vice-Chairman). G. . Archbutt. Fire Manager, Union Insurance Society of Canton, Ltd. Abbekes.. C. Blaker. Merchant, Director, Messrs.Gilman & Co., Ltd. hour posting..... Chau Yue Teng E. Cook. Merchant & Shipowner. Assistant Manager, Hongkong & Whampoa Dook Co., Ltd. Alfred Swann Alfred Swann. Dean of St. John's Cathedral, Hong Kong. H. B. L. Dowbiggin. Bill-broker, Partner, Messrs. Stewart Bros. John Stemming.. John Fleming. L. Forster. L Forster Chartered Accountant, Partner, Messrs. Lowe, Bingham & Matthews. Professor of Education in the University of Hong Kong. L.V. Fulward N. V. Halward. Chaplain to the Bishop of Victoria. tordolemall R. H. Ko tewall. Member of the Legislative Council, Hong Kong. Wwaltons re W. Walton Rogers. W. E. L. Shenton. Vicar of St. Andrew's Church, Kowloon. Member of the Executive & Legislative Councils, Hong Kong. J. M. Wong. Compradore to Messrs.A.S.Watson & Co., Ltd. P. S. Cassidy Merchant, Partner Messrs. John D. Hutchison & Co. (Hon. Correspondent). Hdut Pymes.... H. du T. Pyner. ....... Acting Headmaster, Diocesan Boys' APPENDIX "A". THE DIOCESAN BOYS' SCHOOL AND ORPHANAGE, HONG KONG. 0000000000000000000000000 00000000 SALARIES AS AT 30TH JUNE, 1931. STERLING PAID MASTERS. Annual Sterling 1. W.T.Featherstone. Resident. Headmaster. Monthly Dollar Equivalent paid at Exchange 2/- Allowances Board and Attendance s per Month. per month. 2. H. du T. Pyner. Resident. Second Master. 3. D. Trafford. Resident. 4. E. C. Thomas. Resident. $1,865 per month = $22,380 per annum. See next page for Dollar Salaries. APPENDIX "A" THE DIOCESAN BOYS' SCHOOL AND ORPHANAGE, HONG KONG. SALARIES AS AT 30TH JUNE, 1931. Allowances Monthly Payment. Board and Attendances per Month. per month. 1. T. S. W. Chan. Resident. 2. A. G. F. Prew. Resident. 3. J. L. Youngsaye. Non-Resident. 4. E. Fiddes. Non-Resident. 5. A. C. Benson. Non-Resident. 6. C. James. Non-Resident. 7. K. F. Heron. Mornings only. Student Teacher Fully Qualified in 1931. 8. D. E. Heron. Mornings only. Student Teacher Fully Qualified in 1931 9. M. Hassard. Resident 10. F. Mason. Singing Master. Non-Resident. $5 per hour. Allowances Annual Salary. Monthly Payment. Board and Attendances per month. per month. Brought Forward: - 11. Law Lok Tin 12. Pun Shiu Fung 13. Soo Ming Yuen 14. Sum Ngai Fu 15. Fung Chi Kwai 16. Chan Chung Wan († day). 17. A. Crawford. (Student Teacher and Clerk). 18. C. Fisher. (Clerk). $2,110 per month = $25,320 per annum. APPENDIX "B". THE DIOCESAN SCHOOLS AND ORPHANAGES HONG KONG List of Subscribers to the Joint School Funds, towards the support of English and Eurasian Orphans and deserving cases at reduced fees. Together with the Annual Statements of Accounts for the year 1930. Hong Kong, April 1931. The Committee of the Diocesan Boys' and Girls' Schools make their annual appeal for the Orphanages in connection with the Schools and trust that the same generous support of former years will be forthcoming. A full list of last year's donations and statements are appended. The funds subscribed by English and Chinese friends in response to this annual appeal are devoted to the maintenance of the English and Eurasian Orphans. These orphans are only ad- mitted after careful enquiry has satisfied the school authorities that the cases are deserving of help. Some of the children are foundlings with no known parents, while in most cases there is a Chinese mother who is in a state of poverty. The subscriptions do not cover the full expenses of the orphanages so that the balance has to be found from the general funds of the schools. At pre- sent these funds are in a very low state and the Committees hope that there will be no falling off in the generous response of former years. They will be very grateful for increased subscriptions. The Girls' School curriculum covers all grades from Kindergarten to Matriculation Standard, but as well as the educational part of the work, the girls are trained with a view to becoming self- supporting on leaving school. The number of Free Boarders at the Boys' School is 9 and at Reduced Fees 16. The number of Free Day Boys is 3 and at Reduced Fees 26. The consequential loss in Fees per annum is approximately $13,000. At the Girls' School the number of Free Boarders is 1 and at Reduced Fees 10. There are 2 free day Girls and 15 at reduced fees. The consequential loss in Fees per annum is approximately $4,900.00. Collection by shroff is a slow process and it will be greatly appreciated if Subscriptions are sent direct to The Headmaster, The Diocesan Boys' School, P.O. Box 33, Hongkong, who will issue receipts on behalf of the Joint Schools' fund. P. S. CASSIDY, Hon. Correspondent for the Committee of the Boys' School. W. WALTON ROGERS, Hon. Secretary for the Committee of the Girls' School. To SALARIES :---- European.. .$37,506.34 Chinese... 3,730.00 $41,236.34 $37,113.17 3,585.00 | The Diocesan Boys' School, Kowloon School Working Account for the Year ended 31st December, 1930 $74,389.20 By School Fees and other Income...$69,226.25 Entrance Fees (not refundable).. Locker Rents.... Insurance of Staff Provident 3,364.81 Scheme.... 4,435.99 1,400.00 1,019.00 1,145.07 11,312.00 336.63 1,630.00 627.00 4,191.85 Wages Servants 3,761.00 Subscriptions and Donations... Government Grant for 1929.. SCHOOL STORE ACCOUNT:- Sales during the 3,761.69 10,814.00 3,221.00 Passages.. 5,252.55 $ 3,510.12 21,401.48 Maintenance 17,953.40 2,092.53 Repairs and Renewals.. 1,166.04 Stock at 31st Dec., General School Supplies. Garden Expenses.. 1,405.11 4,915.23 Less Purchases 2,627.77 Sundries.. 1,916.79 during the year.. 3,783.81 1,131.42 2,096.50 Fire Insurance. 2,096.50 Science Equipment Expenses... Motor Car Expenses (less receipts).. 2,246.29 Free Boy's Clothing, Pocket Money, Books, etc. 85,548.83 4,053.07 80,916.73 Surplus for the year, per Profit and Loss Account 6,273.63 $89,601.90 $87,190 36 $89,601.90 $87,190.36 Profit and Loss Account for the Year ended 31st December, 1930 To INTEREST AND SINKING FUND on Hongkong Government Interest (6%) on $175,000.00......$10,500.00 Sinking Fund (2%) $4,053.07 By Surplus on Working Account brought down.... INCOME FROM INVESTMENTS:- Interest on $10,000. Mortgage @ 8% p.a. (7 months)......$ 466.81 Interest $18,708.50 (part Mortgage $25,000.) Instalment terms of Loan. $14,000.00 per contra... 3,500.00 $14,000.00 1,590.22 @ 71% p.a..... 1,403.14 Interest on $25,000. 2,000.00 Mortgage @ 6% p.a. 1,609.45 $14,000.00 Hong Kong, 20th February, 1931. $ 6,273.63 The Diocesan Boys' School, Kowloon Endowment Fund Account for the Year ended 31st December, 1930 To BALANCE, PER BALANCE SHEET:- Share of $25,000 Mortgage on K.I.L. No. 539 Hongkong & Shanghai Bank— Current Account ... By BALANCE, PER ACCOUNT AT 31ST DECEMBER, 1929 18,835.59 .$18,708.50 177.09 18,885.59 $ 18,885.59 $ 18,885.59 Scholarship Fund Account for the Year ended 31st December, 1930 To SCHOLARSHIP PAYMENTS DURING 1930:- Ho Kam Tong Scholarship Piercy Scholarship .. Chan Kai Ming and Arthur Scholarship Woo Hay Tong Scholarship $ 120.00 360.00 ¡ 1,140.00 BALANCE, PER BALANCE SHEET:-- Share of $25,000 Mortgage on K.I.L. No. 539 Included in General Funds $ 6,291.50 2,876.82 9,168.32 10,308.32 By BALANCE, PER ACCOUNT AT 31ST DECEMBER, 1929 9,836.46 INTEREST ON SHARE OF $25,000.00 MORTGAGE $6,291.50 @ 71% p.a. $ 10,308.32 Diamond Jubilee Endowment Fund Account for the Year ended 31st December, 1930 Payments 3,479.40 To COMMEMORATION & OTHER EXPENSES 9,722.16 Dr. 23.24 Less Debit Interest on Current A/c...... 113.23 3,366.17 TRANSFERRED TO CREDIT OF GOVERNMENT LOAN:- Balance:- Allocated for Buildings, per Balance Sheet Receipts By SUBSCRIPTIONS & DONATIONS $33,648.88 INTEREST ON CURRENT A/C... 202,87 33,851.75 Interest on Sink. ing Fund .$ 2,120.00 Funds for Endowment, per Balance Sheet 22,009.59 24,129.59 3,500.00 12,385.25 1,614.75 $14,000.00 $14,000.00 1/1/30 to paid $258.20 258,20 911.27 ARREAR:- 28/1/30 to 31/12/30 3,241.80 $3,500 00 Net Long for the year--Per Balance Sheet... Hong Kong, 20th February, 1931. 3,241.80 13,792.87 $14,000.00 LOWE, BINGHAM & MATTHEWS. Chartered Accountants, Treasurers. $ 33,851.75 $ 33,851.75 LOWE, BINGHAM & MATTHEWS, Chartered Accountants, Auditors. The Diocesan Boys' School, Kowloon Balance Sheet as at 31st December, 1930 The Diocesan Girls' School, Kowloon Income and Expenditure Account for the Year ended 31st December, 1930 Liabilities GENERAL SURPLUS OF THE SCHOOL:~ Per last Account. $509,866.64 Less Net Loss for 1930 on the whole School, per Profit and Loss Account.... SCHOOL BUILDINGS & FIXTURES: Site Formation -per last A/c. $131,380.31 Buildings (including Additional (At cost). 23,286.85 TO SALARIES AND WAGES:- Staff (lass re- 207.13 509,659.51 Architects' Fees $3,730.00) 531,835.20 Heating, Lighting & Sanitary Installations per last A/c. 2,166.00 Servants $27,575.86 2,469.75 30,045.61 35,823.92 6,853.00 693.02 By School Fons (Tuition, Board and Games) Government Grant for 1919... 39,147.72 7,476.00 Sundry Receipts (less pay- 21,353.29 684,568.80 School's Contribution to Sheff 1,295.48 Subscriptions and Donations i BUILDINGS RESERVE :-- Provident Fund... 2,334.07 Allocated from Diamond Jubilee Endowment TENNIS COURTS:-Cost of Construction. 4,018.00 Pension £60 (Mig Skipton)... Fund, per Statement.... 2,120 00 EQUIPMENT:-- 6,832.13 Maintenance (les receipts) 7,727.80 Dr. 127.19 TRUST FUNDS :- Furniture & Fittings, Lockers 447.20 Flectric Light and Telephone.. Endowment, per Statement.....$ 18,885 59 Scholarship, per Statement.. 9,168.32 & General Equipment, per last Account... Repairs and Renewals 1,388.91 22,285.92 Insurance Diamond Jubilee Endowment Additions during the year...... 222.20 22,508.12 Clothing (less recoveries) Fund, per Statement. 22,000.59 50,063.50 Audit Fee SCIENCE EQUIPMENT: per last Account. 1,241.10 2,300.00 Reserve for Staff Passages 200.00 7,263,80 SUNDRY CREDITORS Deposits repayable to Scholars..$ Military Authorities (balance of their claim).. Local unpaid Bills:- 9,400.00 712,336.02 STOCK IN SCHOOL STORE....... 1,405.11 SUNDRY DEBTORS:- Subscriptions & Donations for Sundries..... $ 2,479.30 1930 (balance). Accrued Interest on Mortgages Sundries.... 380.00 364.68 980.27 37,772.22 7,252.84 Furniture, Linen & Furnish- ing 1929 additions writ- ten off... Profit last year (including Donation from Miss Hipton $750.00) Books and Stationery (less payments) Profit on Sale of War Loan INTEREST: On Current Ac- On Hong Kong Government 2,513.38 1,724.95 & Co.)...... MORTGAGES:-(earmarked Works Loan. Dr. 2.30 University Exam: Fees re- 50-190.43 Reserve for doubtful debts written back, not required. Loss for this year per Balence Sheet... Contractor (Lam Woo Little, Adams and Wood, 15,633.00 Architects... 3,730.00 Hongkong Interest due Government on $175,000 @ 6% p.8. from 28/1/30 to 31/12/30 Hongkong Government, against Trust Funds) Secured on R. P. of K. I. L. No. 589 (71%).. R5" (part $150,000) Secured on K. I. L. No. 542 (6%)... .$ 25,000.00 25,000.00 PAYMENT IN ADVANCE:-Salary of Rev. W. 9,725.40 31,567.70 T. Featherstone for January & February, 1931, £130 @ 1/3 3/8.. CASH-In Hand.. Loan (6%)...$ 175,000.00 Less Instal ments of Sinking Fund up to 27/1/30 and Interest accrued to 31/12/30 ... Instalment due 28/1/30 11,647.05 163,852.95 204,500.65 to 31/12/30 $3,241.80 Less Sinking 3.241.80 arrear.... HONGKONG & SHANGHAI BANK- ING CORPORATION-Over- draft on Current Account. Less HONGKONG & SHANGHAI BANKING CORPORATION- Endowment Fund Current Account... 1,461.62 1,284,53 767,628.19 50,000.00 2,029.27 132.84 45,825.06 $ 50,719.74 767,628.19 We have prepared the above Balance Sheet from the Books, Accounts and Vouchers of the School. No Depreciation has been written off Assats, which are shown at cost. LOWE, BINGHAM & MATTHEWS, Chartered Accountants, Hong Kong, 20th February, 1931. Treasurers. Note. The Government Grant is ply brought into account when actually authorised. $ 50,719.74 The Diocesan Girls' School, Kowloon Balance Sheet as at 31st December, 1930. The Diocesan Boys' and Girls' Schools and Orphanages. Subscriptions and Donations to the Joint School Funds for 1930, towards the support of English and Eurasian Orphans and deserving cases at reduced fees. Liabilities GENERAL SURPLUS OF THE SCHOOL:- Per last Account. $132,985.86 SCHOOL BUILDINGS (On K. I. No. 1281) Insured Value, per last A/c/...$120,000.00 E. Abraham, Esq. Ahmed Din 10.00 10.00 Brought forward ... $1,770.00 Anonymous A. Kyum, Esq. The Asiatic Petroleum Co. (S.C.), Ltd. P. Larken, Esq. Add Furniture written off @ 31/12/29, now written back... The Bank Line K. F. Lay, Esq. Additions during the year- East Wing Extensions W. Barnes, Esq. Lee Shui Kai, Esq. 9,466.74 129,466.74 Drs. Black, Balean, Koch and Morrison Messrs. Lee Yu keo & Co. 138,460.86 J. A. Bloomfield, Esq. A. Leong, Esq. Less Fixed Deposit A. Bough, Esq. Li Chor Chi, Esq. (Bowdler Legacy) transferred to Special A/c" in Chartered Bank- Provident Fund ...$3,000,00 Loss for the year, FURNITURE, LINEN & FURNISHING:- Insured Value per last A/c...$ 5,000.00 Messrs. Linstead and Davies Messrs. Bradley & Co., Ltd. The British-American Tobacco Co., Ltd. Li Ping, Esq. F. A. Broadbridge, Esq. Messrs. Little, Adams and Wood W. Broadbridge, Esq. J. L. Litton, Esq. Additions in 1929, previously Messrs. Butterfield & Swire Li Yau Tsun, Esq., C.B.E. written off, now re-trans- ferred The Bank of Canton M. K. Lo, Esq. this Account P. S. Cassidy, Esq. A. A. Lopes, Esq.... per Income and The Estate of the late Mr. Chan Kai Ming J. L. Lindblom, Esq. Expenditure A/c... 3,529.31 129,931.55 Additions in 1930... 1,911.48 7,386.48 Chau You Teng, Esq. N. A. E. Mackay, Esq. Choa Po Sien, Esq. A. S. MacKichan, Esq. Drs. Chaun and (haun E. Manning, Esq.... RESERVE FOR PASSAGES:- Fer last Account @ Exch. 1/73..$ 5,000.00 (Noje.—Furniture and Fittings as well as Employees personal effects, etc., are now insured for $15,000.00). Less Payments during 1930 3,263.80 Sir Shou-Son Chow, Kt. M. S. Churn, Esq. The Colonial Dispensary The Commercial Press, Ltd. N. V. A. Croucher, Esq. 15.00 5.00 Messrs. Ming Yuen E. J. R. Mitchell, Esq. G. B. Mooney, Esq. 1. Mooney, Esq. A. W. Mooney, Esq. SUNDRY DEBTORS (Outstanding Fees, eto.)... 1.877.00 Messrs. Davie, Boag & Co., Ltd. F. II. Mody, Esq. 1,736.20 Messrs. Deacons The National City Bank of New York Add Provision for 1930, Messrs. Dodwell & Co., Ltd. The Nestles Anglo-Swiss Condensed Milk Exch. 1148. 7,263.80 9,000 60 INVESTMENT:- Messrs. Douglas, Lapraik & Co., Ltd. SUNDRY CREDITORS Hongkong Government 6% Public Works Loan 1927 H. B. L. Dowbiggin, Esq. The Netherlands India Commercial Bank Messrs. L. Dunbar & Co. The Netherlands Trading Society 1,000.00 E. C. Fincher, Esq. Thomas Ng, Esq. Messrs. Noronha & Co. E. F. Fincher, Esq. Chartered Bank of India, Aus- tralia & China-Overdraft in Current Account ...$ 1,144.07 Less Hongkong & Shanghai Banking Corporation (Credit Balance in Current A/c) John Fleming, Esq. Messrs. Palmer and Turner H. L. Fox, Esq. The Peak Church... Messrs. Pentreath & Co. J. Fox, Esq. Fung Ping Shan, Esq. A. Perry, Esq. Messrs. Gibb, Livingston & Co., Ltd. Eldon Potter, Esq. Messrs. Gilman & Co., Ltd. S. S. Perry, Esq. II. Gittins, Esq. J. L. Quie, Esq. W. Gittins, Esq. C. S. Rosselet, Esq. S. V. Gittins, Esq. Messrs. Rutonjee and Son (Note. The Trustees hold KI. L. No. Dr. A. Gourdin Messrs. E. D. Sassoon & Co., Ltd. 1281 in trust from the Hong- kong Government to whom, in the event of the School vacating this Site, the original Building Grant of $10,000.00 must be refunded). G. Grimble, Ess. 1. Schnepel, Esq. J. F. Grose. Esq. The Hon. Mr. W. E. L. Shenton F. C. Hall, Esq. Shi Yu Man, Esq. A. E. Hall, Esq. The Sincere Co., Ltd. J. M. Hall, Esq. The Standard Oil Co. of New York G. K. Hall-Brutton, Esq. E. Stone, Esq. G. A. Harriman, Esq. Dr. S. S. Strahan Wallace Harper, Esq. Tong Fu San, Esq. Messrs. Hastings, Dennys and Bowley Dr. Coxion To $ 139,730.22 139,730.22 E. M. Hazeland, Esq. The Tsang Fook Piane Co. Ilo Kam Tong, Esq. The Vacuum Oil Co. Ho Leung, Esq. M. St. J. Walsh, Esq. We have audited the above Balance Sheet and accompanying Income and Expenditure Account with the Books, Account and Vouchers of the School and have satisfied ourselves that they show the position of the School at 31st December, 1930, and the transactions of the Trustees for the year ended on that date. We have verified the existence of the Investment and Funds in hand and have ascertained that the Buildings are insured for the amount stated. LOWE, BINGHAM & MATTHEWS, Chartered Accountants, The Hong Kong and Shanghai Banking Corporation Messrs. C. E. Warren & Co., Ltd. M. Weill, Esq. Sir Robert Ho Tung P. White, Esq. E. S. Howard, Esq. Messrs. Wilkinson and Grist W. J. Howard, Esq. Messrs. Wing On & Co., Ltd. Ho Wing, Esq. Dr. B. C. Wong The Hon. Mr. J. Owen Hughes J. M. Wong, Esq. Messrs. John D. Humphreys and Son Wong Kam Fook, Esq. Messrs. Hung Cheong..... Mrs. Wong Lau Shi Dr. Ip Kam Wah Wong Tak Kwong, Esq. Auditors. F. W. James, Esq. Peter Wong, Esq. Messrs. Jardine, Matheson & Co., Ltd. Messrs. Woo and Nash Hong Kong, 12th January, 1931. Messrs. Johnson, Stokes and Masters Dr. Arthur Woo J. E. Joseph, Esq. Dr. Yamasaki Messrs. Kayamally & Co. Ye Olde Printerie, Ltd. Ko Leong Hoe, Esq. A. V. Youngsaye, Esq. D1. C. H. Kwan ... ΤΟΤΑΙ, ... ..$3,230.05 Caried forward ... $1.770.00 THE DIOCESAN BOY'S SCHOOL (OMILTING CENTS) AS AT SEPTEMBER 1931. LIABILITIES GENERAL SURPLUS OF THE SCHOOL: - Balance as at 31st December, 1930. Add Nett Trofit (estimated) per

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