Repository: UIHistories Project: Board of Trustees Minutes - 1900 [PAGE 266]

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246

UNIVERSITY OF ILLINOIS.

F e b . 9,

This contract, in all matters save one, is in exact accord with the vote of the Board, and in other regards is more favorable to the University than the Board required. The exception relates to the fixing of minimum and maximum amounts to be paid to the University annually from the net earnings of the School of Medicine. Upon discussion the committee concluded that the provision was not expedient and would not operate advantageously, and it was accordingly eliminated. Briefly stated the contract provides: (1) That the value of the real and personal property, equipment, and good will of the College of Physicians and Surgeons is, for the purpose of this agreement, $217,000: (2) That this entire property shall be leased to the University for the term of twenty-five years, or until the termination of the agreement, at $12,000 per year and taxes and assessments: (3) That the net earnings shall in the meantime belong to the two institutions and that out of what has accrued under the lease now in force the University shall have and own $8,000 and the College the remainder, and that under the new agreement the University shall have one-third and the stockholders of the College two-thirds of the net earnings: (4) That the College shall forthwith make a sufficient conveyance to the University in escrow of all its property and good will and shall make a sufficient conveyance of all properties which may hereafter be acquired: (5) That the share of the University in the net earnings shall be paid annually in cash and be set apart in a separate fund for the purchase of the property and kept invested: (6) That when this fund equals the purchase price of the property it shall be paid over and the conveyance delivered with the option to close the matter out by paying the existing difference in cash at the end of the twenty-five years if the agreement shall not have been already consummated: (7) That during the continuance of the lease the right of initiative as to the nolicy of, and appointments in, the College shall be with the faculty thereof, including » the President of the University, but that ultimate authority shall be with the Board of Trustees; and any enlargement of expenditures shall be by concurrent action: (8) That the University will use the revenues of the College to upbuild the same and advance medical science without being confined to any particular branches of study or methods of instruction: (9) That the College shall not carry on any medical work except in connection with the University: (10) That the University shall not be bound to pay any moneys whatever in connection with the matter except out of the revenues of the College of Medicine. Many minor details have claimed close attention and are covered by the formal agreement, but the foregoing is a statement of all points believed to be important. In a word, the agreement does not bind the State in a financial way in any respect, and it is confidently expected to result in the acquisition of a valuable property and good will by the State, and in the promotion of the symmetrical organization and the enhancement of the general usefulness of the State Uni^ versity, through extending the influence of the State in an entirely legitimate and commendable way to the advancement of medical education; and there are substantial reasons for believing that this may be completed inside of twenty-five years. The Committee recommends that the Board approve the subjoined agreement, and authorize the proper officers to execute the same in duplicate on behalf of the University. February 9, 1900.

A. S. A. S. S. DRAPER, W. SHATTUCK, F. NIGHTINGALE, A. BULLARD,

Committee.