Repository: UIHistories Project: Board of Trustees Minutes - 1944 [PAGE 339]

EXTRACTED TEXT FROM PAGE:

336

BOARD OF T R U S T E E S

[April 29

Last year the University purchased coal for storage, bringing its stock up to 17,006 tons. This stock was used during the season to the extent that there is remaining 9,000 tons. In view of conditions in the coal and transportation industries, it is desirable to maintain ample storage and again build up the stock before another winter. T h e following quotations (ton prices at mines) were secured by the P u r chasing Agent: Price at Mine Freight Delivered Cost Peabody Coal Company— Washed Screenings $2 40 So 63 ?3 03 Globe Coal Company— Bunsonville 2" Mine Run 2 35 o 84 3 19 Southern Coal Company— Pana Lump 2 40 I 23 3 63 The Globe Coal Company and the Peabody Coal Company operate in the Danville District, in which the freight rate is lower than in any other district. T h e Globe Company offered 2" mine run from the Bunsonville ( U . S. Steel) Mine at $2.35 a ton at the mine, but the present rate from that mine is 84^ as against 63$* from the Peabody Mine in the same vicinity. Action is being taken to have this rate lowered. T h e Southern Coal Company, St. Louis, Missouri, operates from a mine at Pana, Illinois, from which point there prevails the next lowest freight rate on coal shipped to Urbana, which is $1.23 a ton. This company offers 6" lump at $2.40 a ton, but the freight rate makes the delivered price much higher than the Peabody screenings. The Comptroller and the Purchasing Agent recommend the purchase of 100 cars of washed screenings from the Peabody Coal Company for the following reasons: 1. It is advisable to have an ample stock of coal on hand. If this coal is bought we will have approximately 14,000 tons May 1st. 2. T h e quality of this coal is good for storage, and tests and previous use have shown it to be more efficient than other coal available at comparable prices. 3. It is unlikely that this coal or any other will be available in the future at as low a price. This price is higher than we paid for the same coal in 1042, which was $2.00 a ton, but due to the demand the ceiling price is being changed generally. When a new mine wage agreement is reached the ceiling price probably will be raised. T h e Peabody Coal Company agrees to fill this order at $2.40 a ton, regardless of adjusted prices. I concur in these recommendations. Since this is an emergency matter, I am submitting it to the Executive Committee for such action as it may wish to take. As indicated above, it will be necessary to purchase the coal and complete deliveries before the end of April in order to secure this coal at the price offered. Sincerely yours,

A. C. WILLARD

President On motion of Mr. Davis, this contract was awarded to the lowest bidder as recommended. The Executive Committee adjourned.

P A R K LIVINGSTON, Chairman

H. E. CUNNINGHAM, Clerk

CHESTER R. DAVIS FRANK A. JENSEN

Mr. Davis reported further that the advisory committee on legal fees, consisting of Judge Warren H. Orr, Mr. Herbert M. Lautmann, and Mr. Benjamin Wham, had met in Chicago on April 26, with Judge Johnson and Messrs. Sears and Short present, and had reported a unanimous agreement in writing that the fees of Messrs. Sears and Short be fixed at $15,000. On motion of Mr. Davis, this report was accepted and the fee fixed as recommended, the President of the University was authorized to take whatever steps might be needful to effect payment, and the Secre-