Repository: UIHistories Project: Board of Trustees Minutes - 1944 [PAGE 518]

EXTRACTED TEXT FROM PAGE:

1943]

UNIVERSITY OF ILLINOIS

515

stock to supplement the present reserve supply. T h e following bids were received: 1. Globe Coal Company, Chicago, f.o.b. mine, $2.00; present freight, $.81; delivered, per ton, $2.81. Shipments to be made through August, September, and October. This is a firm bid which will hold even though increases in basic prices are granted. It is anticipated that the ceiling price of Illinois coal probably will be increased in the near future as a result of the new wage agreement. 2. Peabody Coal Company, Chicago, f.o.b. mine, $2.10; present freight, $.60; delivered, per ton, $2.70. This covers deliveries during August and September only. T h e bid is subject to increase in the event of an advance in the ceiling price. 3. Peabody Coal Company, Chicago, washed screenings, f.o.b. mine, $2.40; present freight, $.60; delivered, per ton, $3.00. This price is the prevailing ceiling price on this coal, and in the event there is an increase in the ceiling price before the order is completed, we will have the option of accepting any balance due at the new price or cancelling the order. Although the Globe Company delivered cost is slightly higher than the Peabody bid for raw screenings, the quantity offered is greater and covers a longer period of time, and the price is not subject to adjustment in the case of change in ceiling prices, as is true of the Peabody bid. Purchase of the additional quantity of washed screenings will provide a reserve of 20,000 tons, which, with the Globe purchase estimated at 8,000 tons, would protect our requirements until April, 1944, both in quantity and in price. The Purchasing Agent recommends and the Director of Physical Plant and the Comptroller concur that contracts be awarded the Globe Coal Company for 160 cars of 2" Bunsenville Screenings (Danville District") at a firm price of $2.00 f.o.b. mine, and the Peabody Coal Company for 100 cars Westville washed screenings at a price of $2.40 f.o.b. mine, subject to adjustment in case the ceiling price is changed with the option of cancelling the order in such event. Because of the emergency, the matter was submitted to the members of the Executive Committee and was approved by all members. T h e contracts have been arranged accordingly, subject to the approval of the Board and approval of the Governor as required by the State Constitution.

On motion of Mr. Jensen, these actions were approved and ratified.

COAL FOR CHICAGO POWER PLANT (33) Sealed bids were opened on August 11 for 9,000 tons (with 10% more or less variation) i%" Illinois screenings for the power plant in accordance with uniform specifications. A schedule of bids received is attached. It indicates that on the basis of B.T.U. per 10, the lowest bid is that of the Silver Creek Coal Company, at a delivered price of $4.08 a ton, the coal being that from the United States Coal & Coke Company's mine in Bunsenville, Illinois. A trial car of this coal has been delivered at the power plant and has been inspected and approved by the Physical Plant Department. The Business Manager of the Chicago departments recommends that a contract be placed with the Silver Creek Coal Company on this basis for a total expenditure of approximately $44,820. T h e Director of the Physical Plant approves this recommendation, and the Comptroller concurs and requests authority to execute with the Secretary of the Board a contract for this purpose subject to approval of the Governor as required by the State Constitution. I concur and recommend approval.

On motion of Mr. Fornof, this recommendation was adopted.

PURCHASES RECOMMENDED (34) I request authorization for the following purchases, and this request is concurred in by the Purchasing Agent and the Comptroller: 1. Sixty yearlings, average weight 700 to 750 pounds, and 11 two-year-olds, steers, average weight 900 to 950 pounds, from the Chicago Producers Commission Association, at an estimated cost of $6,700. These are non-competitive items as the price will be determined by the market. The Chicago Producers Commis-