Repository: UIHistories Project: Board of Trustees Minutes - 1924 [PAGE 414]

EXTRACTED TEXT FROM PAGE:

1924]

UNIVERSITY OF ILLINOIS

411

In re:

February 8, 1924 INVESTMENT OF McKINLEY HOSPITAL F U N D

President David Kinley, Administration Building M y Dear President Kinley: I have carefully examined the bond of A. M . Burke, treasurer of the University of Illinois, and can not understand how the investment of the McKinley hospital money by the Comptroller can effect the validity of the bond. You say that Mr. Herbert demurred to the proposition to so invest because i might invalidate the t bond. Mr. Herbert evidently had in mind some decision with reference to the liability of county treasurers and other public officials whose duties were broader than merely preserving the funds which came into their hands officially. Thefirstpart of the condition of the bond i that the treasurer "shall well and truly perform s and faithfully discharge the duties of the treasurer of said University during his term of office." Then follows the specific requirement of keeping and truly accounting for moneys, securities, etc. The treasurer of the University is not required to make any collections or make investments. His duties are more Hmited than those of county treasurers who after a certain date are required to make collections. The decisions of our courts making a county treasurer liable for neglect of duty because of his failure to make collections have no application to a case of this kind. The liability of the surety on the bond would not be affected by the Board of Trustees directing an investment of funds in his hands. I am clearly of the opinion, also, that the Board of Trustees has the legal right to carry into effect the recommendation made by you as to the investment of the McKinley hospital funds. Of course, the acts of the Comptroller in that regard should be subject to your approval, the approval of the Finance Committee, or the approval of the Executive Committee. Respectfully submitted,

0. A. Harker

Legal Counsel February II, 1924 In re: INVESTMENT OF McKINLEY TRUST F U N D S

President David Kinley, Administration Building M y Dear President Kinley: Complying with your request for m y views concerning your statement on "Committee on Investments," I am pleased to say that in m y opinion your proposition to have the investment and reinvestment of trust funds put in charge of the Finance Committee of the Board of Trustees, is sound. I do not think the Committee should be given full power to act in all cases, however. For instance, should the Committee think i advisable to change from one character of investment to t another, i should report the fact to the Board with its recommendation and make t the change only when specifically authorized. The order or resolution authorizing the Committee to invest and reinvest should contain the limitations on its powers. Respectfully submitted,

0. A. Harker

Legal Counsel On motion of Mr. Armstrong, the duties of the Finance Committee with respect to investment of trust funds were defined as suggested by the President of the University.