Repository: UIHistories Project: Board of Trustees Minutes - 1944 [PAGE 190]

EXTRACTED TEXT FROM PAGE:

1942]

UNIVERSITY OF ILLINOIS

l87

M r . Davis offered the following motion which, after discussion, was a d o p t e d : T h a t the President of the University be instructed: 1. T o write to the President of the University of Chicago, and to the President of its Board of Trustees, and to the President of Northwestern University, and to the President of its Board of Trustees, to inquire whether the firm of Booz, Fry, Allen, and Hamilton made surveys of those institutions, what was the scope of such surveys, whether the firm made recommendations that were feasible and to what extent they were adopted, and what their opinion was of the competence of the firm of Booz, Fry, Allen, and Hamilton to make such surveys. 2. T o request the Director of Finance to have Dean W o r k s give his opinion of the competence and adequacy of the Booz, Fry, Allen, and Hamilton survey of the University of Illinois. 3. T o request the appropriate sub-committee of the General Advisory Committee to give their opinion of the competence and adequacy of the survey. 4. T o request the Commission of the American Council on Education to give its opinion on the competence and adequacy of the survey, particularly as to the basic recommendations of three vice-presidents with specific duties as outlined in the report. 5. T o give the members of the Board of Trustees copies of the correspondence arising from these steps, and of the replies as soon as they are received. 6. T o give the members of the Board of Trustees copies of the report of the Commission of the American Council on Education on its investigation of the charges of the Attorney General of the State of Illinois against the Board of Trustees and the administration of the University. REPORT OF FINANCE COMMITTEE M r . K a r r a k e r p r e s e n t e d t h e f o l l o w i n g r e c o m m e n d a t i o n s a n d r e p o r t s of the F i n a n c e C o m m i t t e e .

INVESTMENTS

The Finance Committee recommends: 1. That the following investments of surplus cash of student loan funds be approved: $15,000 Liggett and Myers Tobacco Company 7% debentures due 1944 at about i n . $10,000 Lorillard Company 7% debentures due 1944 at about i n . 2. That the offer of Bethlehem Steel Company to redeem at 181 $20,000 par 6% bonds due 1908 held at an average book value of about 140 be accepted. 3. That the following investments of endowment funds, to the amounts indicated, be authorized for purchase as funds become available: $10,000 additional Canadian National Railway 5% due 1969 at about 112. $20,000 Canadian Northern Railway 6% debentures due 1946 at about m . $20,000 U. S. Savings bonds, Series G, 2j4%.

BABCOCK ENDOWMENT

In 1933 the University received from the late Kendric C. Babcock $1,000 of Chicago & West Towns Railway, Incorporated, 5% bonds due 1942, as a part of a gift for a fellowship endowment. In 1937 interest was suspended on these bonds. Within the past year there has been some reorganization of this company, and a small payment of interest was made in January, 1942. As a result of these changes, the price of the bonds has risen from a market of 16 in December, 1941, to the current market of S3j/2- On recommendation of our investment counsel and after inquiry, the Committee concluded that it would be desirable to sell these bonds at the current market, which has been done. When the bonds were received they were entered at a book value of $1,000. The difference between the realization of $535 and the book value, amounting to $465, has been charged to the principal account of the Kendric C. Babcock Fund.