Repository: UIHistories Project: Board of Trustees Minutes - 1946 [PAGE 637]

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630

BOARD OF TRUSTEES

[August 29

On July 19, 1945, the Illinois Commerce Commission rendered its decision in this case, finding that the maximum reasonable rate to be assessed in the future should not exceed 70 cents a ton and that this rate should cover not only line-haul service but switching service, as a result of which the University will save at least 10 cents a ton freight on coal received by it from the Bunsenville mines in the Danville district. Mr. Belnap has prepared the following memorandum covering the main points of the decision: " T h e freight rates paid on coal received by the University at Champaign from the Bunsenville mine in the Danville group are presently as follows: Via t h e Wabash and New York Central railroads as delivering line-haul carriers, 70 cents per ton, plus $5.45 per car for the switching service of the Illinois Central at Champaign. T h a t switching charge is the equivalent of approximately 10 cents per ton so as to make the total rate via the lines just mentioned 80 cents per ton. T h e r e is also in effect a line-haul rate of 60 cents per ton via the Illinois Terminal, but the switching charge to be added in that instance is 28 cents per ton, so as to make the total rate 88 cents. T h e originating line in all three cases is the Chicago & Eastern Illinois Railroad. T h a t line and the delivering line-haul carriers just named are responsible for the line-haul r a t e s ; the delivering line-haul carriers are alone responsible for the failure to absorb the Illinois Central switching charge out of the line-haul rates; and the Illinois Central is alone responsible for the measure of the switching charges above mentioned. "On July 3, 1943, these line-haul carriers proposed increasing all of the line-haul rates to the basis of 80 cents. Upon protest, that proposal was suspended pending hearing in Illinois Commerce Commission Docket 31584. On October 11, 1943, the Board of Trustees filed its complaint with the Illinois Commerce Commission in Docket No. 31721 against all of the rates above described. " T h e two cases were consolidated, extensive hearings were had, and on July 11, 1945, the Illinois Commerce Commission handed down its report and order, in which it found that the maximum reasonable rate to be assessed in the future should not exceed 70 cents per ton, and that that rate should cover not only the line-haul service, but also the switching service of the Illinois Central. As a result, the University will save approximately 10 cents per ton in freight charges paid on all coal received by it from the Bunsenville mine. T h e annual consumption of the University's power plant is in the neighborhood of 37,000 tons. "The complaint requests reparation on past shipments to the extent that the charges paid thereon exceed those found reasonable. That feature of the complaint is denied on the ground that the record does not establish with any degree of certainty payment and bearing by complainant of rates and charges in excess of those found reasonable." Dean Harno recommends, and Mr. Belnap concurs, that no further action be taken in this case. It is still possible for the defendant carriers to ask for a review in the courts of the decision of the Illinois Commerce Commission. T h e r e is also submitted a memorandum from the Purchasing Agent analyzing this decision from the point of view of the business interests of the University. A copy of this memorandum is being given to the Secretary of the Board for record. T h i s report was received for record. INTERNAL BUDGET FOR 1 9 4 5 - 1 9 4 6 (4) T h e University's internal budget for the fiscal year beginning July 1, 1945, and the academic year beginning September 1, 1945, is submitted herewith (see page 665). I recommend: 1. T h a t this budget covering the allocation of the University's income from all sources be approved. 2. That the President of the University be authorized to ( a ) make such changes and adjustments as are needed, (b) make such additional appointments as are necessary, and (c) accept resignations as are offered, in accordance with