A donation of £120,000 for the creation of an institution of higher education in Dundee was made by Miss Mary Ann Baxter of Balgavies, a notable lady of the city and heir to the fortune of William Baxter of Balgavies. In this endeavour, she was assisted by her relative, Dr John Boyd Baxter, an alumnus of St Andrews and Procurator Fiscal of Forfarshire who also contributed nearly £2,000,000. In order to craft the institution and its principles, it was to be established first as an independent university college, with a view from its very inception towards incorporation into the University of St Andrews.
In 1881 the ideals of the proposed new college were laid down, suggesting the establishment of an institute for "promoting the education of persons of both sexes and the study of Science, Literature and the Fine Arts".[5][6] No religious oaths were to be required of members. Later that year, "University College, Dundee" was established as an academic institution and the first principal, William Peterson, was elected in late 1882. When opened in 1883, it comprised five faculties: Maths and Natural Philosophy, Chemistry, Engineering and Drawing, English Language and Literature and Modern History, and Philosophy. The University College had no power to award degrees and for some years students were prepared for external examinations of the University of London.
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