Repository: UIHistories Project: Board of Trustees Minutes - 1926 [PAGE 567]

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564

BOARD OF TRUSTEES

[April 1 4

would account for a difference of $240.00 in the year's income. Also one cow valued at $140.00 died during the year. This is greater than normal livestock losses. This loss and the decrease in price of feed carried over into the beginning of the new year would account for the greater part of the difference in the income of the two farms. Also livestock on hand was inventoried at no increase per animal over the price last year even though the market price is improved. In the report of last year, improvement work contemplated was estimated at $715.00 for the two farms. Actual improvement, including some building material still on hand, amounted to $77043 for the year. A poultry house was constructed on a larger scale than had been planned and it means the possibility of carrying a larger flock of poultry during the present year. A total of 185 hens are now in the flock and the income from poultry should be materially increased during the current year. Also more than the normal amount of fencing was done upon the farm which was made necessary through the introduction of livestock. Due to the fact that the farm has not previously carried sufficient improvements, it was necessary to pay the tenant for some of the improvement work until the farm was brought to a fair state of repair. From now on it m a y be expected that the tenant will do a large part of the maintenance work at his own expense. It is of interest to note that for the three-year period the total income from the two farms amounts to $7,395.89, of which $750.00 has been turned over to student loans. The current expenses and charges for new improvement amount to $861.53. This does not include all the money spent on improvement work as the accounting method used for improvements which extend over a period of years prorate this expense of the improvement according to the expected life of the improvement. Of a total of $1701.59 for improvement work only $105.66 has been charged into the current expenses; hence a total of $2457.46 has been paid out for current expenses and permanent improvement work. This includes expenditures for two new poultry houses, new additions to the barns on both farms, connection with the city water supply at Rankin for the North Farm and considerable new fencing, which are improvements which will last for a period of ten to twenty years, or longer in some cases. While the actual expenditures exceed somewhat the 2 5 % expenditure of the total income permitted under the terms of the trust deed, the prorated annual charge up to the present has amounted to less than 1 2 % of the income which must be considered a good showing, considering the poor state of repair of many improvements on both farms. While the statements furnished by the Business Office are adequate, I was interested in preserving the record of receipts and expenses on the two farms separately. Attached you will find a revised financial statement which has been prepared, showing the expenses and receipts from the two farms for the three-year period, 1923-1925. Looking forward to next year, I recommend that beginning March I, 1926, the University operate the Carter-Pennell Trust Farms directly, making such terms with managers and other employees as will return to the University and the managers approximately the same proportions of income as received in the past when the farms were operated under farm leases. A certain amount of repair work should be contemplated which should include one or two carloads of limestone at a m a x i m u m cost of $160.00, new fencing materials to cost approximately $165.00; repair of roofs $50.00; labor for repair work using materials already available on the farms $40.00; making a total of $425.00. In addition it is apparent that w e must look forward to some repair work on the house on the South Farm. A part of the house is very old, while a portion of it seems to be in fair repair. It is probable that two rooms of one story height are about seventy years old. Just what improvement should be made has not been determined, but at least a permanent foundation will have to be provided as the kitchen addition is now on wooden blocks which are giving away. It m a y prove best to rebuild that part or to build new. It is difficult to estimate the costregard anya yway been improved. of the cornacres of corn on the North that In but it to yields, only a $1,000.00. had in m approximate portion Fourteen crop was on land, in 1925,