Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 1319]

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1316

BOARD or TRUSTEES

[February 21

The First National Bank of Chicago has submitted to the University and to the Young Men's Christian Association of Champaign a proposed distribution of the trust assets which would divide the common stocks and bonds equally, except for the sale of one block of bonds and a distribution of cash to make the total distribution equal between the two beneficiaries. The proposed plan of distribution has been approved by the Finance Committee and it has also approved the merging of these assets with the general endowment pool of the University held by the First National Bank of Chicago. The Bank has recommended the sale of certain of the stocks and bonds and reinvestments of the other securities. The Finance Committee has approved these changes. The Bank has requested adoption of a resolution by the Board of Trustees accepting this request under the conditions cited with the usual agreements to protect the trustee against loss. Submitted herewith is a resolution prepared by the University's Legal Counsel and approved by the Bank. Resolution Be It, and It Is Hereby, Resolved by the Board of Trustees of the University of Illinois that the bequest in favor of this public corporation contained in the Will of Dr. Charles P. Howard, who died on July 21, 1943, of a remainder interest in the trust created of his residuary estate, be, and the same is hereby, accepted by said public corporation for the uses and purposes set forth in said Will and said bequest; and Be It, and It Is Hereby, Further Resolved that the Vice-President and Comptroller of this public corporation be, and he is hereby, authorized to accept payment and delivery of said bequest on behalf of this public corporation, and to execute and deliver to the First National Bank of Chicago, as survivor Trustee of the testamentary trust created by the Last Will and Testament of said Charles P. Howard, deceased, the receipt of this public corporation in satisfaction thereof. O n m o t i o n of M r . C l e m e n t , t h e f o r e g o i n g r e s o l u t i o n w a s a d o p t e d . PROCUREMENT OF LARGE-SCALE COMPUTING SYSTEM FOR ALL-UNIVERSITY USE (32) The Executive Vice-President and Provost and the Vice-President and Comptroller recommend the acquisition from the International Business Machines Corporation on a rental basis, with an option to purchase, of an IBM 7090-1401 high-speed computer system, on the following terms which represent 40 per cent of commercial rates: Annual rental including maintenance for the 7090-1401 system plus peripheral gear for I L L I A C I I : $350,016. Rental of the 7090-1401 system with option to buy plus peripheral gear for I L L I A C I I : rental price of $350,016, of which 62 per cent is applicable to the purchase price; option to buy, $12,580.18, all of it applicable to the purchase price of $1,363,104 (the commercial price would be $3,407,700). T h e term "peripheral gear for I L L I A C I I " refers to input-output equipment needed for the new computer now under construction in the Digital Computer Laboratory. For use with this computer, the International Business Machines Corporation would lend to the laboratory, without additional charge, equipment worth $529,488 at the educational discount price (commercial price $1,323,720). In return, the University agrees: ( a ) to use the equipment for its educational and research purposes only, and solely in connection with I L L I A C I I ; (b) to provide "a non-exclusive royalty-free license to IBM relative to developments resulting from the University's work in adaptation of the input-output units to ILLIAC." No state tax funds would be used either for the rental or for the ultimate purchase of this equipment. Contract research funds are available for the annual rental, and the purchase option will be exercised if sufficient funds from outside sources can be provided by the delivery date. The bid proposal was dated January 16, 1962, and was submitted to the firms listed below, and was also advertised publicly in the official state newspaper in accordance with the Illinois Purchasing Act. International Business Machines Corporation, Springfield Control Data Corporation, Minneapolis, Minnesota