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Caption: Board of Trustees Minutes - 1960
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1136 BOARD OF TRUSTEES mon stock of 140,000 shares, of which 1,867 shares are held in the treasury of the Corporation and 138,133 shares are outstanding. The Corporation owns the building known as the LaSalle Hotel and owns all of the stock of the LaSalle Pharmacy Corporation, which owns and operates the pharmacy located in the LaSalle Hotel. Mr. Brundage desires to assist the University of Illinois Foundation by making it possible for the Foundation to acquire an income-producing asset. H e has offered to sell his stock in the Corporation to the University of Illinois Foundation for a sum not to exceed $8,000,000. T h e terms of purchase would be a down payment not to exceed $750,000 and the remainder in notes bearing interest at the rate of 2^2 per cent. The Foundation would agree to pay to Mr. Brundage an annual sum of $400,000, of which the interest on the unpaid balance would be paid first, the remainder applying on the principal. Under the terms of this agreement, the loan would be paid off in approximately twenty-four years. In addition to the minority stockholders, the Corporation has an outstanding mortgage loan in the amount of $2,650,000 at S% per cent interest, payable serially over a period of twenty-two years. Examination of the operating statements shows a relatively stable income, which will be adequate on the basis of past performance, to meet the obligations the Foundation would undertake. In view of this offer to the Foundation, it is recommended that the Board of Trustees request that the Foundation, on behalf of the University, enter into this transaction with the understanding that when the Foundation has completely paid the obligations to Mr. Brundage, as well as to the holders of the mortgage, the property or the stock, whichever is then held by the Foundation, shall he transferred or conveyed to the Board of Trustees of the University of Illinois to be held in trust, said property or stock, or the income therefrom, to be used to advance the educational purposes of the University. (During the discussion of this matter, Mr. Johnston asked to be excused because of another engagement.) On motion of Mrs. Swain, this recommendation was approved by the following vote: Aye, Mr. Harewood, Mr. Herrick, Mr. Hughes, Mr. Swain, Mrs. Watkins, Mr. Wilkins, Mr. Williamson; no, none; absent, Mr. Clement, Mr. Johnston, Mr. Pogue, Mr. Stratton. On motion of Mrs. Watkins, the Board adjourned. A. J. JANATA KENNEY E. WILLIAMSON Secretary President
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