Repository: UIHistories Project: Board of Trustees Minutes - 1926 [PAGE 106]

EXTRACTED TEXT FROM PAGE:

1924]

UNIVERSITY OF ILLINOIS

103

TRUST F U N D INVESTMENTS M r . Trimble, for the Finance Committee, m a d e the following report on the investment of trust funds. Pursuant to your request, your Finance Committee respectfully reports concerning University Funds investments, as follows: Attached hereto is a statement of investments of the University Trust Funds, giving detail of the investments. Referring thereto by number w e report as follows: 1. Whalen Pulp and Paper Mills, Ltd., $2000. 6 % . This company is being operated by a receiver, hence, no market for stock. W e recommend depositing bonds with the Creditors Committee now organized under supervision of Peabody, Houghteling, & Company, and waiting results. 2. VancouverLumber Company, 1st Mortgage Gold Bonds, $300. 7J/£%. Unlisted bonds mature 1937. Have written Vancouver for bid; a m advised should be worth par, but no market there; would recommend selling at or near par, and reinvest under general policy. 3. Federal Land Bank of Wichita, $2000 Bonds. 4 . ^ % . Retain. 4. Federal Land Bank of Houston, $1000 Bonds. 4/4%. Retain. 5. Republic of Argentine Bonds, $14,49;. 5 % - These were selected and donated in kind by Robert F. Carr and should be retained in kind. 6. United States Government Bonds, 1952, $3000. 4-H%. Present market about 106. Recommend selling and reinvesting under general policy. 7. United States Government Bond, 2nd Liberty Loan, $600. Retain. 8. Third Liberty Loan Bond, $400. 4 % % . Retain. 9. Fourth Liberty Loan Bond, $50. 4 . % % . Retain. 10. United States Gold Note, $100. 4 ^ % . Retain. 11. College of Physicians and Surgeons, 1st Mortgage Gold Bonds, $6,700. 6%. This is a University enterprise. Retain. 12. Booth St. Louis Cold Storage Co., 1st Mortgage Gold Bond, due 1931, $25,000. 6 % . Retain until worth par, then sell and invest under general policy. This is part of a $500,000 issue dated January I, 1916, of which $140,000 appear to have matured and have been paid, leaving $360,000 outstanding. Bonds were issued by a Missouri corporation controlled by the Booth Fisheries Co. which endorsed the bonds. The latter company has not had a satisfactory earning record for several years, but year ending April 6, 1924, shows substantial improvement, but the latter company is not in a strong current position as its current liabilities exceed current assets; therefore uncertain h o w much the guarantee adds to the mortgage security. Market is quoted 82 bid for limited number of bonds paying on a 9 ^ % interest yield basis. Mortgage covers cold storage plant at St. Louis; well located, near principal produce market, good railroad and loading facilities; building contains 2,000,000 cu. ft. cold storage space, and 500,000 cu. ft. ordinary storage space; 12 stories high in west end and 9 stories high in south end; well equipped refrigerator plant; and entire property kept in splendid condition. Value estimated at $750,000. This value ought to be good security for the bonds, but low market shows no demand for them even at <)l4% interest yield. Rather than sell at 82 w e think best to retain until maturity when they probably will be refunded at par. In the meantime would sell if can get from 95 to par therefor. These bonds were given to the University by Senator William B. McKinley for'Hospital Fund; if necessary to sell same to provide funds for meeting Hospital contracts they must then be sold at the then market. 13. Bank Acceptances. J ^ i % . Retain, as liquid investments for building M c Kinley Hospital. 14. Public Service Company of Northern Illinois, 1st Mortgage Gold Bonds, $1,000. 5 % . D u e February 1, 1956; cost 89 in 1915; present market 89 to 90.