Repository: UIHistories Project: Board of Trustees Minutes - 1942 [PAGE 914]

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

911

members are permitted by the governing boards to engage in remunerative outside activities so long as the activity does not materially interfere with the duties of the staff member to the institution. In this way the income of members is augmented to a very substantial extent in large numbers of cases. It is clear that in almost countless cases staff members could not be kept in their positions but for the fact that this is permitted. Members of medical faculties, faculties in chemistry, in engineering, law, and elsewhere would be drawn into private industry and the professions but for this latitude which governing boards allow. This is not an uncommon situation, and in view of limited financial resources of institutions, the policy of governing boards above described is reasonable and necessary. In the case of Mr. Johnson, for example, he was offered a retainer nearly double what the University was paying him a few years ago, with the privilege to practice law in addition. It is, of course, well known that every institution of major importance in the country has contributed staff members and their services in whole or in part to the Federal Government in recent years, as well as now and since the war began. It has never been supposed that such service was either tainted or criminal. The Attorney General misrepresents the relation of Mr. Hodges, who is listed in the University budget as "Assistant University Counsel." Mr. Hodges handles student loan fund collections. These are University trust funds given to it by private donors. Their administration is a sizable business, since the University now has loan funds exceeding $350,000. T h e bulk of Mr. Hodges' salary is paid out of the income from these loan funds. The University Counsel is ultimately responsible for servicing student loan accounts which cannot be adjusted without going into the courts. Mr. Hodges spends approximately two months in Chicago, devoting all his time to the servicing of these loan fund accounts. In addition, he is gone for several days each week, attending to these accounts, often outside the State. After doing this work for several years as a member of the University Bursar's organization, it was found that in critical cases Mr. Hodges needed a more professional status in order to render effective service, and after due consideration it was concluded to give him the position of Assistant University Counsel since he has had legal training, is a member of the Bar, and is qualified to handle the legal phases of this trust fund business. He receives $2,100 a year for this collection service and $000 a year from general University funds for other University services. Respectfully yours,

A. C. WILLARD

President

Mr. Cleary presented the following statement.

Six issues affecting the University of Illinois have been raised in recent weeks by Attorney General Barrett. 1. The Attorney General of Illinois has challenged the right of the University of Illinois to employ legal counsel. This issue must be decided by the courts. Although this right is of utmost importance to the efficient, independent functioning of the University, until a court decision is reached further consideration by this Board seems to me superfluous. 2. The Attorney General has challenged the right of the University to permit its employees to accept additional compensation from outside sources. Until some member of this Board joins the Attorney General in attacking a policy long established at this and other universities, there seems to be nothing for us to discuss along this line. 3. T h e Attorney General has implied that Judge Johnson's service to the Federal government has been secret and unauthorized. The fact that such employment was formally authorized by this Board, and such action distributed in printed form to all members of the Legislature and State officials, should be publicized together with whatever statement in this regard President Willard cares to make as the executive officer of the University responsible for adjusting terms of employment of all members of faculty and staff. 4- The Attorney General has stated that Judge Johnson, in addition to his $9,ooo salary from the University, drew "an additional income of $3,800 annually