Repository: UIHistories Project: Board of Trustees Minutes - 1926 [PAGE 477]

EXTRACTED TEXT FROM PAGE:

474

board of trustees

[December 8

On motion of Mr. Trees, the wording of the motion on page 469, line 26, was changed to read as follows: "On motion of Mr. Trees, the construction of wood bleachers on Illinois Field was authorized." O n motion of Mrs. Grigsby, the minutes were approved, with the change indicated above, as printed on pages 457 to 471 above. PARR COKING PROCESS Mr. Armstrong, for the Committee on the disposal of the Parr coking process, reported as follows: To the Board of Trustees, University of Illinois Your Committee appointed April 8, 1925, consisting of Messrs. Armstrong, Barr, and White, to handle the further negotiations with reference to the Parr Coking Process has made two informal reports and now presents the following proposal which is presented in the form of a letter, dated October 10, 1915, to the Chairman of the Committee and signed by M r . A. B. Marvin, which is as follows: New York City, New York October 10, 1925 M r . J. W . Armstrong, Chairman Special Committee D e a r Sir: This is in reply to your letter of September 28th, and is submitted on behalf of Professor Parr and his proposed associates as a modification of his proposal to you of June 24th, 1925, the modification in large part being based on m y talk with you at Madison, August 3rd, 1925. I understand that your Committee has power to act on this entire coke making project, but I a m sure that you and all of us would feel more comfortable if the entire situation were laid before the Board of Trustees of the University of Illinois. Our present offer is as follows: F I R S T : The Board of Trustees has paid or will pay all obligations arising out of the University's research work on coke to date, excepting the unpaid patent attorney charges which on October 1, 1925, amounted to $7256.10 as per statement annexed, and excepting such further obligation or equity, if any, as m a y have arisen because of the contribution of $16,000 which M r . Hert made to the University in the early days on this coal research. S E C O N D : The Board of Trustees will assign to a corporation yet to be organized all its right and title to such inventions as have been conceived by Messrs. Parr and Layng pertaining to the coking of coal (and also the Baille-Barrelle patent purchased through Professor Parr) in consideration of $50,000 in preferred stock in the new corporation, this preferred stock to be non-assessable 6 % noncumulative stock and to constitute all of the preferred stock of the corporation. It is understood that this transfer will relieve the Board of Trustees of any obligation to the Firm of Pennie, Davis, Marvin & Edmonds for past or future services or disbursements in connection with the patent matters here under discussion. T H I R D : The corporation will diligently endeavor to commercialize the process and will agree that if at the end offiveyears from the date of the transfer of the patent rights it has not spent as much as $50,000 in research, development and patent expense, it will reassign to the Board of Trustees for a consideration of $1.00 all rights that m a y have been assigned by the Board to the corporation under paragraph S E C O N D above, but the corporation does not agree under this clause to assign to the Board of Trustees any future patent rights acquired by the corporation through invention or purchase. F O U R T H : The corporation will give to the University of Illinois a license free from royalty under such patent rights as it m a y acquire from the University under paragraph S E C O N D above, including all subsequent improvements therein build a y operate plant at the University to supply the the University gas, that mand be made aor acquired by the corporation so that University with m a y