Repository: UIHistories Project: Board of Trustees Minutes - 1914 [PAGE 175]

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1913]

PROCEEDINGS OF THE BOARD OF TRUSTEES.

173

thousand dollars ($386,000), for the purpose. This appropriation was vetoed by the Governor, along with other appropriations, on the ground that the. Legislature had exceeded the sums available for appropriation. On September 1, 1910, the University assumed full responsibility for the Medical and Dental schools, hiring the plant of the College of Physicians and Surgeons at a specified rental for the term of one year with an option for two years longer. At the session of the Legislature beginning in January, 1911, the University requested one hundred thousand dollars ($100,000) per annum for the support of the Medical School. The Legislature granted the sum of sixty thousand dollars ($60,000) per annum. Through a technical ruling, however, of the Supreme Court of the State that the constitutional • forms had not been strictly observed in the passage of the bill by the Legislature, the University lost the appropriation and could not avail itself of the option offered for a second year's lease. The College of Physicians and Surgeons thereupon gave notice that it would no longer lease its property to the University, and announced that it would reopen a medical school in its own plant as soon as it gained possession of it. The University, having no money with which to purchase or construct its own plant and no money with which to lease a plant, was compelled to close the Medical and Dental schools. This was done on June 30, 1912, and the College of Physicians and Surgeons opened a Medical School on the 1st day of July following, admitting to the school the students who were enrolled at that time in the University School of Medicine. This action caused great consternation among the alumni of the University Medical School, and was viewed with much disfavor by many people who were interested in the progress of medical education and research. A committee waited upon the Board of Trustees to ask whether if the alumni and other friends of medical education in Chicago would secure the capital stock of the College of Physicians and Surgeons and present the same to the Trustees of the University of Illinois, the University would accept the property and reopen its Medical School. The Executive Committee, at its session of August 23, 1912, [p. 99], expressed its deep interest in * this proposition, and after it was made evident that the alumni were really in earnest with their proposed plan, the Trustees of the University, on September 19, 1912, voted as follows: "That the Board of Trustees will accept the property of the College of Physicians and Surgeons, provided that all the stock has been secured and donated to the University on or before February 1, 1913." [P. 118.] Relying upon this action, the alumni appointed a committee, and, associating with them others who were interested in the progress of medical education in the State, made a determined effort to secure the donation of the stock of the corporation, and, so far as the owners would not donate it, to raise money enough by private subscription to purchase said stock. On January 31, 1913, Dr. D. A. K. Steele, acting for the Alumni Committee, informed the Board of Trustees of the University of Illinois that his committee had secured all the stock of the corporation of the College of Physicians and Surgeons, and was ready to turn it over to the Board of Trustees of the University, thereby complying in full with the only provision required by the Board of Trustees as a condition of their accepting the property. The director of the corporation of the College of Physicians and Surgeons have been authorized by the stockholders to deed the entire property of the corporation, both real and personal, to the Trustees of the University of Illinois, subject to the mortgage and bonded indebtedness upon said property. This mortgage indebtedness at present consists of the following obligations: I. (a) Due Chciago Board of Education, July 1, 1913 $ 10,000 00 (b) Due Chicago Board of Education, July 1, 1914 10,000 00 (c) Due Chicago Board of Education, July 1, 1916 56,000 00 Interest on all these obligations at 5% per cent per annum. II. Bonds secured by mortgage on the new Medical Building, due 1925, bearing 6 per cent interest • •. 109,000 00 III. Bonds secured by mortgage on the old Medical College Building, due July, 1932, bearing 6 per cent interest 60,000 00 Total $245,000 00 The Board or Directors of the College of Physicians and Surgeons adopted, for the present academic year ending June 30, 1913, a .budget with an estimated income of .'. 78*000 00 Estimated expense of operating Medical School 59,100 00 Leaving a surplus of $18,900 00 From this surplus the interests on obligations, etc., had to be met. From a statement submitted by the President of the College of Physicians and Surgeons, under date of February 11, 1913, it appears that up to that date the sum of $67,786 44 had been collected. There was still due on . fees from students the • sum of 15,749 50 If this latter sum should all be collected, the total income of the year would be $83,535 94 or an excess of $5,535.94 above the estimated income. It is not probable, however, that all the fees due from students will be collected, and the deficit in the collection of these would represent a corresponding diminution in the total income of the year. The expenses have not thus far outrun the estimate of the budget. The floating indebtedness of the institution has been entirely paid off, and the cash balance in the treasury to be turned over to the credit of the University Medical Department is 10,751 11