Repository: UIHistories Project: Board of Trustees Minutes - 1948 [PAGE 1148]

EXTRACTED TEXT FROM PAGE:

1948]

U N I V E R S I T Y OF

ILLINOIS

"47

cases and as late as 1943, in the case of People vs. Barrett, 382 111. 321, involving the University, the Supreme Court reiterated this principle and stated that the University could only acquire and hold property as Trustee and agent for the State and that all the property of the University of Illinois though held by the Board of Trustees belongs to the State. While there have been some exceptions to the principle above stated, particularly in the Olmsted case, 328 111. Z77, involving certain property held in trust by the Board of Trustees in Vermilion County, the principle enunciated in the Industrial University case and the Barrett case above cited nevertheless seems to be the law and there seems to be no doubt that all property, title to which is in the Board of Trustees of the University and used by the University is exempt, and if the courts adhere to the principle established in the Industrial case and the Barrett case above referred to, to the effect that the property of the University of Illinois though held by the Board of Trustees belongs to the State, all property, title to which is in the University, would be exempt from taxation under the provisions of the Constitution and the existing revenue law of the State. There may be some question as to the exemption feature of certain properties held by the University where they are leased with a view to profit, or where they have been conveyed to the University in trust for certain purposes, particularly in view of the fact that in the Barrett case the Supreme Court held that the University is not a part of the state government, but that it has been created as a state agency and the corporate entity created is a public corporation. The same is true of the University of Illinois Foundation. The Foundation is a corporation not for profit organized under the laws of the State to assist in developing and increasing the educational facilities of the University, and in reality has been created as an agency of the Board of Trustees of the University of Illinois, and it could very well be that if the Supreme Court followed the principle involved in the Barrett case it might hold that any properties belonging to the Foundation were held in trust for the State, in which case obviously the constitutional exemption and the legislative exemption found in the Revenue Act could be invoked for the benefit of any properties held by the Foundation. In addition, it is our understanding that the Legislature has made no specific appropriation for payment of taxes. Under the Barrett case above referred to there is considerable question as to the authority of the Trustees of the University to apply appropriations for the payment of taxes in the manner contemplated without first having had an appropriation made by the Legislature, unless the courts specifically determine that certain properties are taxable and that by operation of law they are payable from any one or more of the pertinent objects for which appropriations were made for the biennium. Under the circumstances, we do not believe the decisions of the court are sufficiently clear for us to recommend to the Board of Trustees payment of taxes on any of the properties without an appropriate decision by the Supreme Court involving the facts surrounding the ownership and use of the particular properties Very truly yours,

CHAPMAN AND CUTLER

After general discussion, and on motion of Mr. Williamson, the Legal Counsel was authorized to take whatever steps may be necessary to clarify and maintain the rights of the University in this matter.

MATTERS PRESENTED BY PRESIDENT STODDARD

The Board in executive session discussed the agenda for the meeting and took action on the following matters presented by the President of the University.

APPOINTMENT OF TURPIN CHAMBERS BANNISTER AS PROFESSOR AND HEAD OF THE DEPARTMENT OF ARCHITECTURE (1) I request authority to appoint Dr. Turpin Chambers Bannister, now Dean of the School of Architecture and the Arts, and Head Professor in the Department of Architecture, Alabama Polytechnic Institute, as Professor and Head of