Repository: UIHistories Project: Board of Trustees Minutes - 1904 [PAGE 253]

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1903.]

PROCEEDINGS OF THE BOARD OF TRUSTEES

229

under the direct management of the University. We also learned that the College of Physicians and Surgeons would also be glad to have the College of Dentistry, or a part thereof, occupy a part of one of the buildings of the College of Physicians and Surgeons. This would involve the payment of reasonable rent, and the adjustment of some other business matters which we were assured would be made upon a fair and mutually acceptable basis. Subsequently the Board of Directors of the College of Physicians and Surgeons adopted the preamble and resolutions hereto attached, the terms of which we recommend be accepted, except the provision that the College of Dentistry shall pay insurance, taxes and ordinary repairs, which we think should not be accepted. Discussion with the officers of the Chicago College of Dental Surgery developed the fact that they would be glad to convey the property and good will of the college to the University on some such arrangement as that originally made with the College of Physicians and Surgeons if mutually acceptable valuations of their property could be agreed upon. To reach such agreement as to values each party employed a well known architect to appraise the real estate, and the Business Manager of the University made inventories and a careful estimate of the equipment of the college. In this way we came to the conclusion t h a t the sum of $140,000 was not an unreasonable cash value of the real estate, and the sum of $44,000 a fair cash value of the equipment. The college had urged that the property and good will should be estimated at the sum of $260,000 for the purposes of such transaction. This sum seems to us too large, but it did not seem unreasonable that some allowance should be made for the fact that it was not to be a sale for cash, but rather a joint venture, and that the University was not to assume any financial liability, and that the purchase price was to be paid out of the earnings of the institution. I t also seemed reasonable that some allowance should be m a d e f o r the good will of the college, in view of the fact that we were not only acquiring the property, but also a prosperous and successful school which had been built up by the capable and energetic men with whom we were negotiating. We therefore agreed among ourelves upon the sum of $200,000 as a fair value of the property, both real and personal, and good will, and all of the effects and rights of the college, and urged the acceptance of that sum, and that was finally done. Thereupon we proceeded to consider the details of a joint contract to be executed between us, and agreed upon the form herewith submitted. We have caused the same to be examined by Hon. George W. Gere, of Champaign, and submit herewith his written opinion approving the same. We therefore recom^ mend that such contract be approved and executed on the part of the University, and that the President and Secretary of the Board be authorized and directed to execute the same on the part of the Board, and attach thereto the seal of the University. We also recommend that it be understood and agreed with the College of Physicians and Surgeons that if the University so desires the School of Pharmacy shall after this year occupy a part of the building now occupied in part by the School of Dentistry, and that in t h a t event the rent charged against the College of Dentistry shall be reduced by so much as would be a reasonable charge for rent against the School of Pharmacy.

S. A. BULLARD, ALEXANDER MCLEAN, A. S. DRAPER, S. W. SHATTUCK.

Committee.