Repository: UIHistories Project: Board of Trustees Minutes - 1932 [PAGE 608]

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606

BOARD OF TRUSTEES

[June II

APPROPRIATION FOR LEGAL SERVICES IN CONNECTION W I T H ISSUE O F TAX W A R R A N T S (8) A report from the Comptroller that the purchase by the First National Bank of Chicago of $600,000 of tax anticipation warrants issued by the State of Illinois against the University of Illinois Fund required the approval of the securities by Chapman and Cutler, attorneys. Payment for these services must be made by the State or the University. Inasmuch as the State officers who authorize the issue of warrants cannot legally pay for such services out of State funds, i will be necessary for the University to meet the expense. The t amount involved is $400. I recommend that an appropriation of $400 be made from the Reserve and Contingent Fund to meet this expense and that the Comptroller be authorized to make this payment to Chapman and Cutler. O n motion of M r . Trees, this appropriation w a s made, by the following vote: Aye, M r . Armstrong, M r . Barr, M r . Barrett, Mrs. Grigsby, Dr. Noble, M r . Trees; no, none; absent, M r . Blair, M r . E m merson, Mrs. Hopkins, M r . Williams. PROPOSAL CONCERNING THE BOND OF H. S. CAPRON, FORMER TREASURER (9) A proposal from the Principal and Sureties on the bond of Hazen S. Capron, former Treasurer of the Board of Trustees. Judge Johnson m a d e a statement concerning this matter. M r . Trees offered the following resolution and m o v e d its adoption: W H E R E A S , the following, being the Principal and the Sureties on the bond of Hazen S. Capron as Treasurer of the Board of Trustees of the University of Illinois, which bond was delivered to the Board of Trustees and approved by i on April 8, 1931, namely, Hazen S. Capron, Principal, and N. M. t Harris, B. B. Harris, Julia Harris Dodds, and Barbara H. Dobbins, Sureties, have made the following proposal to-wit: "To the Board of Trustees of the University of Illinois: " W e are very much interested in the movement, which already has made substantial progress, to re-open the First National Bank. As is well known, the bank cannot re-open without the co-operation of its depositors. An audit of the Treasurer's account carried for the University of Illinois in the First National Bank of Champaign shows a balance due on said account of $92,571.18, after crediting thereon the amount reported as the proceeds of the sale of the collateral securities which were furnished by the bank for the purpose of securing this account. W e , the undersigned, being the principal and sureties on the bond of the Treasurer of the University, executed by us on February 28, 1931, and approved by you on April 8, 1931, propose the following: "That you defer action to recover on the aforementioned bond the amount due thereunder until such time, not to exceed three years from date, as a fair opportunity shall have been had to realize the maximum reasonably possible on the balance of the assets of the First National Bank which, under the plan of reorganization, will be held in trust and will, after the loan to the Reconstruction Finance Corporation has been paid, be available to pay a dividend on 4 0 % of the deposits of the general depositors, including that of Hazen S. Capron as your Treasurer, as outlined in the attached Creditors' Agreement. All depositors are being requested to sign this Creditors' Agreement and hundreds have already done so. "It is understood and agreed by us that if you assent to this proposal, and authorize the signing of the Creditors' Agreement aforesaid, the Treasurer's bond, and our liability thereunder, will continue in full force and effect, and that our obligations thereunder will remain in full force wholly unaffected by this grant of extension of time to your Treasurer and to us to account fully Champaign, heldreceivedofpursuant thethe official; the First National Bankshall be applied in reduction by from such saidof i being understood that of dividends received by you him asto on Creditors' Agreement aforesaid, any lor all moneys in trust our liability assets bond." t