Caption: Board of Trustees Minutes - 1936
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1935] UNIVERSITY OF ILLINOIS 121 unsound, it should be changed. I do not believe the_ statute should be construed as a justification for continuing an investment manifestly unwise and unsound. SVEINBJOKN JOHNSON Counsel SALE OF BRITISH COLUMBIA PULP AND PAPER COMPANY BONDS A recommendation that $2,ooo British Columbia Pulp and Paper Company, Limited, bonds be sold and the proceeds invested in other legal securities. On motion of Mr. Trees, this recommendation was adopted. STATUS OF A C C O U N T OF H. S. CAPRON, FORMER TREASURER, IN FIRST NATIONAL BANK OF CHAMPAIGN Mr. Trees submitted a report from the Comptroller concerning the status of the University account with former Treasurer H. S. Capron, in the First National Bank of Champaign, and advised that the Finance Committee recommended that the University Counsel be instructed to confer with the principal and sureties and call attention to the fact that the Board expects them to pay the balance due the University on June 9, 1935, or to make some new arrangement which is acceptable to the Board that will protect the University from any loss. On motion of Mr. Trees, this recommendation was adopted. President A. C. Willard, 355 Administration (W) Dear PRESIDENT WILLARD: January 30, 1935 At the last meeting of the Board it was suggested that I report to the Board concerning the status of the Old First National Bank of Champaign, in which the account of the former Treasurer of the University, Mr. H. S. Capron, was carried. I have secured from the liquidating agent of that bank the following information: Book value of assets, December 31, 1934 Considered good Considered doubtful Considered worthless Total $ 310 061 39 369 105 50 1 001 535 34 $1 680 702 23 $ 788 092 99 Deposit liability represented by participating certificates It will be noted from the above that the book value of all assets is more than twice that of the outstanding liabilities on deposit balances but that the value of assets considered good is only about 40% of the deposit balances. Two dividends of 10% each have been paid on the participating certificates and I am informed that another dividend of a similar amount is to be paid in the near future. With respect to the balance due the University from Mr. Capron, the following is a summary of the principal facts: Balance on deposit, First National Bank, Champaign at date of closing, January 16, 1932 Amount realized from sale of securities held by Board of Trustees as collateral for this account Amount realized through opening of a new bank which took over 60% of the deposit liabilities Amount received from liquidating agent of old bank Balance due from Mr. Capron at this date $887 558 51 794 965 59 55 564 45 7 405 70 $ 29 622 77
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