Repository: UIHistories Project: Board of Trustees Minutes - 1930 [PAGE 275]

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I-JI

B O A R D O F TRUSTEES

[July 17

REBATE O N FREIGHT O N COAL.

(27) A letter from the Legal Counsel: July 17, 1929 President David Kinley, 355 Administration Building Dear President Kinley: On October 13, 1928, the Board of Trustees authorized me to take the necessary steps to institute proper proceedings to recover excessive freight payments made on coal shipments to the University. The action of the Board appears on page 44 of the Minutes for October, 1928. W e asked the Commerce Commission for an early hearing but did not receive notice of the date until a few days ago when the Commerce Commission advised that the matter would come up at Chicago on July 25. W e prepared the necessary complaint and the evidence has been largely prepared in our offices. The matter, however, is highly technical and practice in rate cases is highly specialized. I, therefore, feel that I should have the assistance of a specialist in this field in order to insure against the miscarriage of justice due to lack of familiarity in this technical field. W e , therefore, yesterday and again this morning interviewed Mr. H. M . Slater who is more thoroughly informed in thisfieldthan any individual of whom we have knowledge in Illinois, and he proposes to give us the assistance required upon the following terms: A 15 per cent commission upon the amount recovered with a minimum fee of J1,500, no commission nor fee to be paid hi m in the event that the University recovers nothing in this action. According to our calculations, the University may recover or seem to be entitled to recover approximately $25,000 as a maximum. O n this basis, Mr. Slater may be entitled to a commission of $3,750 as a maximum and i the ref covery is not over $10,000, his commission would be $1,500 as outlined above. You should be advised that rate experts usually take cases of this sort on the basis of a commission of 50 per cent of the recovery. Because of the work which we have done in preparing the case, Mr. Slater came down to the basis outlined. W e recommend in the circumstances that we be authorized to accept this proposal and to engage the services of Mr. Slater on the basis outlined. You understand, of course, that i there be no recovery there will be nothing f due from the University to Mr. Slater. Yours very truly, Sveinbjorn Johnson Legal Counsel On motion of Mrs. Evans, the employment of Mr. Slater was authorized, on the terms explained in Judge Johnson's letter, with the stipulations that no commission shall be paid unless there is recovery and that the commission shall not exceed the amount recovered. THE BUDGET FOR 1929-30 (28) I submit the budget for thefiscalyear beginning July 1, 1929, and the academic year beginning September i, 1929, with the request that it be approved and that the President of the University be authorized to make such changes and adjustments as may be necessary, to make such additional appointments as are necessary, and to accept resignations offered, in accordance with the needs of the University and the equitable interests involved. O n motion of M r . Simpson, the budget w a s approved as presented, a n d authority w a s granted as r e c o m m e n d e d . T h e vote w a s as follows: A y e , President Armstrong, M r s . Busey, M r s . Evans, M r s . Grigsby, D r . Noble, M r . Simpson; no, none; absent, M r . Barr, M r . Blair, M r . E m m e r s o n , M r . Fisher, M r . Trees.