Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 481]

EXTRACTED TEXT FROM PAGE:

1935]

UNIVERSITY OF ILLINOIS

479

investment, $10,000 Sanitary District of Chicago 4%, refunding bonds, due 1955, with optional redemption 1945, at 101J4. This report w a s received for record.

INVESTMENT OF ENDOWMENT FUNDS

Mr. Karraker, for the Finance Committee, reported also that the Comptroller reports that on December 1 there will be available for investment approximately $18,000 in endowment funds for which no provision has been made. After canvassing the possibilities of various securities, he has submitted to the Finance Committee for consideration the following suggestions: 1. The purchase of Swift and Company 3J#% bonds, due 1950, with a call price of 103, at a present market of approximately 10434, yielding 3.3%. These bonds are now the only bond obligation of this most important unit of the packing industry. The record and financial position of the company are both excellent. The bonds are priced at some premium and also somewhat above the call price of 103. However, since they represent a recent issue put out for the purpose of refunding other securities, it seems unlikely that they will be called in the near future and, in the meantime, the University can amortize the premium down to the call price. 2. That because of difficulties of securing bond investments at a satisfactory income, the Board consider purchasing additional real estate mortgages. At the present time such investments represent only 13.8% of the total endowment funds of the University. The Comptroller has suggested a statement of policy concerning real estate mortgages for consideration by the Committee and for discussion by the Board if that appears desirable. On motion of Mr. Karraker, the purchase of bonds was authorized as recommended; and the matter of the purchase of mortgages was referred to the Finance Committee for consideration and report.

MATTERS PRESENTED BY PRESIDENT WILLARD

The Board resumed its consideration of matters presented by the President of the University.

HEADSHIP OF THE DEPARTMENT OF ENGLISH

(19) An informal report of progress in the work of securing a suitable head or chairman of the Department of English. This matter was referred to the President of the University for further consideration.

AMENDMENT OF CONSTITUTION A N D BY-LAWS OF UNIVERSITY OF ILLINOIS FOUNDATION

(20) A report that at a special meeting of the Board of Directors of the University of Illinois Foundation, held on November 9, Article I, Section 4B, of the constitution and Article I, Sections 1 and 5, and Article II, Section 1, of the by-laws were amended. These changes were incorporated in the copy of the constitution and by-laws of the Foundation as submitted to the Board of Trustees on October 25, and these documents as amended have been printed in the minutes of that meeting (pages 442 to 447). On motion of Mr. Barr, this report was received for record.

OFFER OF RESEARCH FUNDS FROM PHENOLPHTHALEIN RESEARCH, INCORPORATED

(21) At the meeting of the Board on February 23, 1935 (Minutes, page 133), a report was made of a grant of $3,000 for one year (at the rate of $250 a month) from Phenolphthalein Research, Incorporated, New York City (a New York corporation organized for the purpose of scientific investigation of phenolph-