Repository: UIHistories Project: Board of Trustees Minutes - 1938 [PAGE 567]

EXTRACTED TEXT FROM PAGE:

1937]

UNIVERSITY OF ILLINOIS

565

we anticipate, the heating system should be replaced when funds become available. I n order to accomplish Items Nos. 1 and 2, we recommend an appropriation of $37,000 from the General Reserve Fund.

On motion of Mr. Adams, this report was adopted, and the appropriation made, by the following vote: Aye, Mr. Adams, Mr. Cleary, Mrs. Freeman, Mr. Karraker, Mr. Mayer, Mr. Moschel, Mrs. Plumb, Mr. Pogue, Mr. Wieland; no, none; absent, Mr. Horner, Dr. Meyer. At this point, Mr. Adams withdrew.

SALE OF MARTIN FARM AND OF SECURITIES

Mr. Mayer reported for the Finance Committee as follows:

1. Martin farm. On August 2, 1937 (Minutes, page 468), the Board authorized the sale of the Martin farm in Williamson County for $5,500 cash, or $6,000 on a deferred payment plan. T h e Comptroller reports an income of approximately $300 (after paying taxes) from this farm for the year 1937, and recommends that the sale be authorized, if a satisfactory purchaser can be found, at a price of not less than $5,000 net to the University on deferred payments, with interest on such payments at not less than four per cent.

On motion of Mr. Mayer, the sale of this farm was authorized, for a price of $5,000, with $1,000 down and the balance at three per cent if paid within two years, and four per cent if deferred for a longer time.

2. Sale of securities. T h e Board authorized, on J a n u a r y 29, 1937 (Minutes, page 158), the sale of $5,000 Pacific Gas and Electric Company, 35-2 per cent bonds due in 1966. T h e recent review of our securities by the First National Bank of Chicago did not recommend the sale of this item. A recent report of Standard Statistics states that the operating conditions of this company are favorable and that earnings are increasing, and rates the bonds at A i . T h e bonds are legal for savings banks in New York, Massachusetts, Connecticut, Pennsylvania, and California. They are approved by the Comptroller of the Currency for bank investments. T h e present price is 99^2. T h e Comptroller recommends that these bonds be not sold at the present time, and the Finance Committee concurs.

This report was received for record.

STUDY OF BUILDING PROGRAM

Mr. Pogue raised the question of the desirability of making new studies of the building needs of the University, to include, besides the former schedule, new and necessary items like the Auditorium, University Hall, studies of a new Power Plant, and possibly some provision for housing for men and women. At this point, Mr. Pogue withdrew.

CONTRACT FOR A N N U A L AUDITS

Mr. Mayer, for the Finance Committee, presented a recommendation that Arthur Andersen & Co., be engaged to examine the accounts of the University for the ensuing year, making an audit at the end of each six months, at a cost not to exceed $3,000, and that the same firm be engaged to make the examination of the accounts of the Athletic Association and of the University of Illinois Foundation. On motion of Mr. Mayer, the employment of Arthur Andersen & Co. was authorized on the basis recommended.