Repository: UIHistories Project: Board of Trustees Minutes - 1942 [PAGE 704]

EXTRACTED TEXT FROM PAGE:

1941]

UNIVERSITY OF

ILLINOIS

70I

Section 25 of the Constitution. 1 T h e Governor's Secretary returned the contracts with the Skelton Coal Company and the Tilton Mining Company which have been approved by the Governor, but the contract with the Globe Coal Company was returned without his approval. His Secretary asks that this contract be transferred to the Republic Coal and Coke Company, Chicago, which has indicated that it will be willing to fill the contract at the same price as quoted by the Globe Coal Company, in accordance with the spirit of an act of the General Assembly providing that purchases of coal for State institutions shall be pro-rated among various mines of the State to provide for an equitable distribution, taking into consideration the number of miners employed. It is recognized by the Governor's Office that the University is not bound by the statute but suggests that it recognize its spirit. No bid was received from the Republic Coal and Coke Company at the time bids were considered in July. Its mine is located in Vermilion County. According to our information, this company is owned by the United States Steel Corporation, and coal from it has not been sold commercially heretofore. It is clear that any action by the Board of Trustees in awarding a contract for the purchase of coal is subject to the approval of the Governor. On the other hand, it would be contrary to the established practice of the Board of Trustees and of the University if a contract were transferred from the lowest responsible bidder to another party which did not submit a bid when the original contracts were let and subsequently was given an opportunity to meet the lowest bid submitted at that time. Under the circumstances it would seem that the Purchasing Agent should be authorized to readvertise for bids and to make another award to the lowest bidder subject to the Governor's approval.

On motion of Mr. Davis, this authority was granted; the officers of the University were directed to confer further with the Governor before readvertising for bids.2

ADVANCE OF F U N D S FOR CONTRACT PAYMENTS ON ILLINI U N I O N BUILDING

The Secretary presented the following report:

T o secure payment from the United States Government of the final installment of the grant, and from the Connecticut Mutual Life Insurance Company of the final installment of the proceeds of the loan it made for the Union Building, it will be necessary for the University to advance the sum of $16,820. This amount is needed to help make final payments due on contracts for the construction of the building. T h e advance would be repaid in the near future, as soon as final settlement has been made. Since prompt action was necessary to close this matter, the Executive Committee authorized an appropriation of $16,820 from the General Reserve Fund for these contract payments.

This report was received for record.

COMMITTEE ON CHICAGO DEPARTMENTS Mr. Jensen presented the following report: The Committee on Chicago Departments met at Urbana on Saturday, November 1, 1041. Dr. Karl A. Meyer, Chairman, and Mr. F r a n k A. Jensen were

2 The Constitution provides that "The general assembly shall provide, by law, that the fuel, stationery and printing paper furnished for the use of the state; the copying, printing, binding, anda distributing the laws and journals, and all other printing ordered by the general a S m y sn ^ n ' ^ be * et D v contract to the lowest responsible bidder; but the general assembly shall fix a maximum price; and no member thereof, or other officer of the State, shall be interested, directly or indirectly, in such contract. But all such contracts shall be subject to the approval of the governor, and if he disapproves the same there shall be a re-letting of the contract, in such manner as shall be prescribed by law." The Comptroller reported on December 3 that he had received the three original contracts, approved by the Governor, making further action unnecessary.