Repository: UIHistories Project: Board of Trustees Minutes - 1932 [PAGE 575]

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UNIVERSITY O F ILLINOIS

573

N o major improvements are contemplated for either farm during the coming year. T h e houses on both farms are n o w in good repair. T h e out-buildings have been greatly improved since the property was taken over, several minor structures such as chicken houses have been built, and the one major improvement was made on the North farm when the cow barn was built. A community drainage project is being contemplated which will affect the North farm and which involves the town of Rankin. A proposal of drainage work costing $480 is under discussion. T h e share assigned to the North farm will amount to from $75 to $150 if the proposed project is carried out. The benefits to the farm should easily justify the expenditure. A n adjustment has been made in the lease on the North farm. M r . Hanson is doing a good job of farming and has family help available. There seemed to be an opportunity for him to develop farther the sale of milk, at retail, in the town of Rankin. It did not seem advisable for the University to become involved in the project because of the expense of bottling milk and other expenses incident to the retailing of milk such as poor collection, bottle breakage, and other expenses. It is recommended that the University receive $2 per hundred for its share of all milk sold at retail. All of the additional income will go to M r . Hanson as payment for the extra labor and other cost involved in the retailing of milk. T w o dollars per hundred net for milk is a good price at present. This provision, written into the lease, offers Mr. Hanson the opportunity to secure a larger income in proportion to the efforts of him and his family. Although full settlement could not be made in the rent on the North farm for 1031, no adjustments are recommended at this time. A s has already been noted, the unfavorable showing on the two farms can be attributed quite largely to the drop in the price of crops and livestock n o w held at the farms. In spite of this, the fact that there is a cash reserve of $2053.27 on hand would seem to justify recommending that $500 of the cash on hand be transferred to the Carter-Pennell student loan fund. It is expected that there will be sufficient current income even during the early part of the year to meet necessary operating expenses. The inventories of produce on hand were marked down to the present price level at the end of the year, which should make it possible to make a better record on the farms during the current year, even with a continuation of low prices. Schedule A CARTER-PENNELL F A R M S B A L A N C E SHEET AS A T F E B R U A R Y 29, 1932 Assets Operating Cash $2 053 47 Accounts Receivable 617 87 Stock and Unsold Crops (Schedule B) 2 776 25 Deferred Charges to Future Operations 201 18 $5 648 77 Capital Estimated present value of original gift: North Farm (186 Acres) S24 >+9 57 South Farm (160 Acres) 18 058 47 42 208 04 Improvements by University (Schedule C): North Farm 3 596 31 South Farm 2 397 47 5 993 78 48 201 82 Total Assets til 850 59 Reserves and Surplus Reserved for 1926 and 1927 Taxes (being contested) 1 254 68 Surplus: * Net Operating(arisingandandgift) E M E ND) E B ROPERATING SURPLUS 04 $2 993 09 Sio 387 87 Less: Consisting Student1937Schedule TF OF U A R Y 29, 1932 42 208 87 4 394 78 $14 754 68 Transferred February fromSurplus TO below) Reserved forAssets fromS 1932 (above) Income from Farms 29, T A Fund see Donated to of: (Seeprofits, Balance, Reserves LoanTaxes Fixed Assets Liquid 1926 Total (arising T 10 387 5 254 00 t-Si 142 55 1 500 68 gio 850 59 52 595 91 3 387 87