Repository: UIHistories Project: Board of Trustees Minutes - 1942 [PAGE 297]

EXTRACTED TEXT FROM PAGE:

294

BOARD OF TRUSTEES

[May 27

ADJOURNED SESSION, MAY 27, 1941 An adjourned session of the May meeting of the Board of Trustees of the University of Illinois was held at the Abraham Lincoln Hotel, in Springfield, at two o'clock p.m. on Tuesday, May 27, 1941. When the Board convened, the following members were present: President Cleary, Mr. Davis, Mr. Fornof, Mr. Jensen, Mr. Karraker, Mr. Livingston. A little later Mr. Adams and Mr. Wieland took their places with the Board as shown in the record. President Willard was present; also Mr. A. J. Janata, Assistant to the President, Mr. Lloyd Morey, Comptroller, Mr. H. E. Cunningham, Secretary, Judge Sveinbjorn Johnson, Counsel, Mr. J. F. Wright, Director of Public Information, and representatives of newspapers. Mr. Charles K. Morris, of the firm of Charles K. Morris and Company, Inc., was present during part of the day.

HOUSE BILLS 4 7 1 A N D 4 7 2 (REFINANCING)

O n motion of M r . Jensen, M r . K a r r a k e r and M r . Davis were appointed a special committee to call on Attorney General Barrett for his opinion on the constitutionality of H o u s e Bills 471 and 472, authorizing the refinancing of the Medical and Dental College Building bonds and of other obligations, and to take the opinion (if favorable) to Governor Green and request his signature to the bills.

REPORT OF FINANCE COMMITTEE ON NEW BOND ISSUE ON MEDICAL, DENTAL, AND PHARMACY BUILDING

Mr. Karraker presented the following report.

T h e Board on May 15 authorized the Finance Committee to do the following with respect to a new bond issue to take the place of the present 4% bonds of the University of Illinois Foundation on the Second Unit of the Medical and Dental Laboratory maturing serially to 1956: "to consider and approve proposals for such refinancing and to accept the lowest responsible bid if thereby a satisfactory saving to the University may be affected." T h e Committee reports as follows: 1. T h e Committee met on May 20 and decided on the following conditions and procedure with respect to a new issue: ( a ) T h a t the bonds should mature serially, those maturing through 1949 to be non-callable, and those from 1950 on to be callable, in order to make the bonds as attractive as possible. (b) T h a t the same amount be applied to interest and amortization as is now provided in the budget, namely, $86,000 per year, so that the issue can be paid off as rapidly as possible, thus making the largest possible saving in interest cost. (c) That no interest rate should be specified, leaving the way open for bidders to make their own proposals as to interest rates. ( d ) T h a t the issue should be advertised for bids to be received Saturday, May 24, the award to be made on the basis of the lowest net interest cost. 2. T h e Committee received bids at the Medical, Dental, and Pharmacy Building in Chicago, as advertised, on Saturday, May 24, 1941, at II a.m. A schedule of bids received is attached. T h e Committee recommends: ( a ) T h a t the award be made to T h e Milwaukee Company and associates, on the basis of their alternate bid for bonds at 2}4% through 1949 and 2% thereafter, at a premium of $1,100, making a net interest cost of 2.087% for the life of the issue. On this basis the interest expense will be reduced by $167,834 under that which would have been paid on the former issue, and the bonds will have been paid off by May I, 1954, instead of January 1, 1956. (b) T h a t the Board of Trustees adopt the necessary resolutions prepared by Messrs. Chapman and Cutler relating to this proceeding.