Repository: UIHistories Project: Board of Trustees Minutes - 1914 [PAGE 191]

EXTRACTED TEXT FROM PAGE:

1913]

PROCEEDINGS. OF THE BOARD OF TRUSTEES.

189

past two years. From this item must be paid the general administrative expenses of the University, estimated for the coming biennium at $158,000 in round numbers; miscellaneous expenses amounting to $40,000; expenses for operating the plant, labor, heat and light, supervising architect, etc., $200,000; summer session, for the benefit of the teachers of the State, $30,000 ; various departments, including University Library, .physical training for men, physical training for women, high school inspection, $175,000; expenses of the College of Science, $431,000; of the College of Literature and Arts, $380,000 ; Library School, $18,000 ; music, $38,000, etc. -We sincerely trust that you will find it advisable to grant the entire sum as asked for. The last General Assembly granted the sum of $60,000 per annum for the support of the Medical School. The Supreme Court threw out the appropriation on a technical ground, and the University lost the money. We had been leasing a plant for the conduct of the Medical School from the College of Physicians and Surgeons in the city of Chicago. After the loss of the appropriation the latter corporation declined to renew the lease, and as there was no opportunity to secure a similar plant elsewhere in Chicago the University was compelled to close its Medical School, which it did upon June 30, 1912. The graduates of the University Medical School and other friends of medical education throughout the State were greatly disturbed by this outcome of the experiment in medical education which the University had- been carrying on for some fifteen years. They asked the trustees whether they would reopen the Medical School if the alumni would secure the control of the property of the College of Physicians and Surgeons and present the same to the University. The trustees replied in»the affirmative, if all the stock of the corporation of the College of Physicians and Surgeons were presented in a block on or before February 1, 1913. This condition was fulfilled, and the University accepted the property, real and personal, of the College of Physicians and Surgeons, subject to the encumbrances upon the same, but without assuming any responsibility whatever for the payment of any debts or obligations of the College of Physicians and Surgeons. The entire plant, real and personal, was deeded to the University, subject to mortgage obligations amounting to $245,000, the annual interest charge being $14,320. The trustees,' in accordance with their agreement, authorized and directed the President of the University to reopen the Medical School in the plant thus acquired, which was done on Thursday, March 6, 1913. Through this action of the alumni the University has come into the control of an extremely valuable property, very well located for the purposes of a medical school. There will naturally be some difference of opinion as to the value of the property which the alumni presented to the trustees. There is no market for medical schools, and consequently if this property and school were put up for sale tomorrow, probably it would have no bidder other than some person wishing the real estate for some other purpose. If the University, however, were to stare in de nova to acquire as good a site and buildings and equipment with a well established school, such as it has built up during the past fifteen years in cooperation with the College of Physicians and Surgeons, there is little doubt that it would cost the University easily more than a million dollars; for much more than that sum has been spent in the development of this Medical School. The real estate of the property was valued in the spring of 1907 by a committee of the Chicago Real Estate Board, at seventy thousand dollars ($70,000). The State Architect, W. Carbys Zimmerman, associating with himself Minard L. Beers, another architect, estimated the value of the buildings at- the same date to be two hundred and thirteen thousand dollars ($213,000). The real estate has undoubtedly appreciated in value, as quotation's for the sale of property in that neighborhood amply show. The buildings have, of course, tended to depreciate, but a considerable sum of money has been spent in repairs to maintain them in a usable condition. With the building and grounds go also an inventoried plant, including a medical library, valued at about $100,000. But if the inventory should be cut in two, it would still represent a plant of ground, buildings and equipment of considerably more than $300,000, on a very modest estimate. No one would undertake to get a block of ground as conveniently located as the present block and get buildings upon it as well adapted for the purpose with equipment as good as the. present for less than $400,000, and it would probably •take a full half million to do it. The obligations consist of mortgage obligations as follows: I. (a) Due Chicago 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 these obligations at 5% per cent per annum. II. Bonds secured by mortgage on the new Medical Building, bearing 6 per cent interest, due July 1, 1926 109,000 00 III. Bonds secured by mortgage on the old Medical College Building due July 1, 1932, bearing 6 per cent interest 60,000 00 Total T $245,000 00 The total interest charge is $14,320 per annum. So long as the University of Illinois pays the interest oh these obligations it will retain control of the property, and if the State should ever appropriate money to enable it to pay off the indebtedness it would possess the property in fee simple. There is no obligation, however, resting upon the University or upon the State to do this, and the property may be given up at any time when the Legislature sees a more valuable' property for the same or less money.