Repository: UIHistories Project: Board of Trustees Minutes - 1930 [PAGE 362]

EXTRACTED TEXT FROM PAGE:

1929]

U N I V E R S I T Y O F ILLINOIS

359

Committee of the Key System Transit Company. A reorganization is planned by the Company, which contemplates, among other things, that holders of the class of bonds which the University has m a y receive par for par offiveper cent cumulative second preferred stock provided that they purchase at $25 per share one share of six per cent cumulativefirstpreferred stock for each J100 of bonds held. The University would have to purchase for cash 81250 offirstpreferred stock in order to receive second preferred stock in exchange for our bonds. This investment would yield a total of $325 a year. The actual value of the preferred stock which it is proposed to issue appears to be uncertain. O n August 16, Judge Johnson received a telegram from Cushing and Cushing in which they stated that the time to deposit the bonds would not be extended after August 20; that the present market value of the bonds was about 20 per cent and that i the bonds were not deposited the amount received by bondholders after foreclosure f would probably be less than the present market value. O n August 21 the Legal Counsel received a letter from Cushing and Cushing to the effect that the time to deposit had been extended to September 20. O n September 3, Judge Johnson received another telegram from Cushing and Cushing in which they again advised the University to deposit the bonds under the reorganization plan or to sell at present market. Judge Johnson wrote m e on September 4 that he believed the proper course was to deposit the bonds, take the receipts and sell them or sell the bonds at the current market price, if they have any. Under date of September 11, President Armstrong of the Board suggested in a letter that the securities be forwarded by the Treasurer to some bank in Oakland, California, to be held subject to telegraphic instruction after the Board Meeting on September 18. Accordingly, on September 12, I directed Mr. A. M . Burke, Treasurer of the Board, to send the securities to some depositary in Oakland, California, to be held subject to instructions of the Board after its meeting on September 18. M r . Trees, for the Finance C o m m i t t e e , presented a r e c o m m e n d a tion that the Treasurer b e authorized a n d directed to deposit these b o n d s with the proper officer or agent of the c o m p a n y a n d to take certificates a n d sell t h e m at the m a r k e t price. O n m o t i o n of M r . Trees, this r e c o m m e n d a t i o n w a s adopted. LISTING UNIVERSITY EMPLOYEES (23) The last General Assembly passed an act requiring State Departments and officers, including the Board of Trustees of the University, to file "in the office of the Auditor of Public Accounts before the end of each calendar year, a list of all employees in their respective offices or departments for the past calendar year, stating the names of the persons employed, the total salary paid each employee for the past calendar year, their addresses, showing the streets and cities and counties in which they vote." I request instructions as to the method which the Board wishes to be followed in complying with this act. O n m o t i o n of M r . Barr, the President of the University w a s directed to compile the list a n d to m a k e the report as required. AMERICAN LEGION BUILDING IN PARIS (24) A request from Lt. Col. Francis E. Drake, President American Legion Building Corporation, that the University provide a bronze memorial tablet to be placed in the new building erected by the American Legion in Paris. T h e President of the University w a s asked to get the opinion of the Legal Counsel o n this matter.

REPORT ON MODIFICATION OF AGREEMENT CONCERNING RESEARCH A N D EDUCATIONAL HOSPITAL

(25) Following instructions of the Board at its meeting on M a y 17, 1929 (Minutes, page 198), the agreement between the Department of Public Welfare and the University concerning theThe amendment agreement was signed by Honorable Rodney amended, as directed. operation of the Research and Educational Hospital was