Repository: UIHistories Project: Board of Trustees Minutes - 1942 [PAGE 904]

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U N I V E R S I T Y OF I L L I N O I S

90I

salary payments on time. T h e effect on the morale of the staff and on the University's ability to obtain desirable additions to the staff can not be discounted. (f) Status of Federal Funds Available to Land-Grant Colleges Under Various Federal Acts. The University Counsel advised with and assisted the Comptroller who worked with other institutions situated like the University on this subject. As a result, and after many discussions and conferences with Federal officials, the Department of Agriculture receded from its position that the University must maintain separate banking accounts for each fund, of which there are several. This matter has been finally settled to the satisfaction of the University and other Land-Grant colleges. IV

REDUCED FREIGHT RATES ON COAL

In 1930 the University Purchasing Agent placed before the University Counsel data indicating that excessive and indiscriminate freight rates were being charged by certain carriers for transporting coal to the University. The Llniversity Counsel prepared and conducted proceedings before the Illinois Commerce Commission without any assistance from the Attorney General. As a result of long, drawn-out and strongly contested proceedings there was paid the University in the form of reparations for excessive and discriminatory rates the sum of $21,508.94. The freight rate on coal was reduced to So cents, which resulted in a saving to the University of $8,000 per year. In 1935 the rate was reduced to 60 cents, resulting in annual savings to the University of approximately $16,000. This represents a permanent and continuous saving. In none of the above activities was any additional compensation received by the present University Counsel aside from his regular salary from the University, except in the cases relating to income tax liability of employees of Land-Grant colleges who receive part of their salaries from Federal funds (III, 2, c, above). In those cases compensation was nominal and was used largely to pay other counsel who participated as attorneys of record in two cases in Minnesota and two in Illinois. The University Counsel participated in these cases because the questions involved were vital to the University of Illinois as well as to all other Land-Grant institutions. Mr. A d a m s presented the following letters written by Attorneys General C a r l s t r o m ( 1 9 3 2 ) , K e r n e r ( 1 9 3 5 ) , a n d Cassidy ( 1 9 3 9 ) . January 5, 1932 Hon. Sveinbjorn Johnson, Box 365, Champaign, Illinois.

M Y DEAR F R I E N D :

It is gratifying to have you say what you did in your letter regarding the contacts you have had with this office. It has been a pleasure to work with you and, through you, with the University. With highest personal respects, I am Sincerely yours,

OSCAR E. CARLSTROM

December 5, 1935 Hon. Sveinbjorn Johnson, University Counsel, University of Illinois, Urbana, Illinois.

DEAR S I R :

Matters have arisen which I think should be called to your attention. Something like a couple of weeks ago I received a letter from a gentleman by the name of Allen who stated that he was doing some research work in connection with the University and sent me a long list of questions on which he desired my opinion.