Repository: UIHistories Project: Board of Trustees Minutes - 1924 [PAGE 390]

EXTRACTED TEXT FROM PAGE:

1924]

UNIVERSITY OF ILLINOIS

387

STATEMENT OF INTENTION OF JOSEPH CARTER AND JANE P. CARTER, CREATORS OF THE CARTER-PENNELL TRUST

(12) The following statement of intention of Honorable Joseph Carter and his wife, Jane P. Carter, relating to the interpretation of clause 9 of the Declaration of Trust made by them to the Board of Trustees of the University of Illinois and accepted by the Board of Trustees (see minutes, March 13, 1923, page 149) has been sent m e by our Legal Counsel, Judge 0. A. Harker.

STATEMENT OF INTENTION OF CREATORS OF A TRUST

1. WHEREAS, the undersigned Joseph Carter and Jane P. Carter, on March 12, A. D . 1923, by a good and sufficient Deed of Trust, created the Carter-Pennell Trust, a Public Trust for educational purposes, by conveying approximately 350 acres of Vermilion County, Illinois, real estate, described in said Deed, to the Board of Trustees of the University of Illinois, and to their successors in office, which said Trust was duly accepted by said Trustees on March 13th, 1923, all as shown by said Deed, duly recorded on March 14th, 1923, in Volume 324, on pages 101 to 106, of the Deed Records of Vermilion County, Illinois; and 2. W H E R E A S , said Grantors of said Trust Estate made said conveyance of their said lands in their own lifetime so that they might personally direct and watch over the creation and operation of said Carter-Pennell Trust and cooperate with said Trustees in working out plans for the successful and practical operation of said Trust; and 3. W H E R E A S , in Clause Nine (9) of the Declarations of Trust, in said Deed of Trust, the expenses to be paid out of the gross earnings of said Trust Estate were limited for any 10-year period to an amount in the aggregate equal to approximately 10 per centum of such gross earnings each year; and 4. W H E R E A S , said Trustees, in planning and operation of said Trust, have suggested that said 1 0 % limitation m a y possibly, for some such period, by reason of the expense incurred in the upkeep of buildings, fences, and soil fertility, or because of fire or flood or other unusual damages or unforseen conditions, prove to be too small, therefore, 5. W I T N E S S E T H : That said Joseph Carter and Jane P. Carter, Grantors and Creators of said Carter-Pennell Trust, do hereby expressly state that if it should ever become necessary, in order to replace or keep up buildings on said Trust Estate, or to preserve said Trust Estate, to expend a greater percentage of the gross earnings of said Trust Farms than said 10 per centum provided for in said Deed of Trust, it will meet with our full approval and be within the spirit of our original wishes in creating said Trust, to allow said Trustees, if such action becomes necessary, to increase the amount of such expenditures for such purposes from said 10 per centum even u p to 25 per centum of such gross earnings, and that a liberal construction of said Deed of Trust would, in our judgment, justify said Trustees in making any reasonable and necessary expenditure, out of said gross earning, for the purpose of preserving and protecting said Trust Estate, even though the expense might for a short time exceed the limitations specified in said Deed of Trust. 6. W e further state that it was not our intention, in fixing said 1 0 % limitation, to handicap said Trustees in the handling of said Trust Estate nor unduly to restrict their judgment in carrying out the main purposes of this Trust, but _ w e intended to provide adequate means for administering said Trust, and w e believe that a liberal construction of said Trust Agreement will show that the Board of Trustees of the University of Illinois, and their successors in office, have been granted, either expressly or by necessary implications, whatever powers are now necessary to be exercised, or which may, by reason of unforseen causes or casualty become necessary to be exercised hereafter, to preserve and protect said Trust Estate for the uses and purposes for which it was created; and that such powers would authorize and justify said Trustees, in case of fire or other casualty or un-