Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 925]

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BOARD OF T R U S T E E S

[October 25

ACTION OF EXECUTIVE COMMITTEE

PURCHASE OF COAL

The Secretary presented for record a report of the action of the Executive Committee on October 21, 1949, authorizing the purchase of twenty-five cars (approximately 1,250 tons) of i J 4 " washed screenings, at $5.25 a ton, f.o.b. mine, freight rate $2.05 a ton, total cost a ton $7.30 and total for this order, $9,125, from the Republic Coal and Coke Company, Chicago. In this connection, the Comptroller reported that the bid of the Republic Coal arid Coke Company had been conditioned on immediate acceptance, and that the price had been raised to $5.50 by the Company before the action of the Executive Committee could be communicated to them.

MATTERS PRESENTED BY PRESIDENT STODDARD

The Board considered the following matters presented by the President of the University.

PURCHASE OF COAL (1) On October 21, 1949, the Executive Committee authorized the purchase of twenty-five cars (approximately 1,250 tons) of l%" washed screenings, from the Republic Coal and Coke Company, Chicago, to increase the University's coal supply at Urbana-Champaign in view of the coal strike. As of October 12 the University had in storage in Urbana-Champaign approximately 4,000 tons of coal which, under normal operations, would be sufficient for twenty-six days. The additional twenty-five cars would add approximately eight days to the present supply. T h e Director of Purchases has located, through the Republic Coal and Coke Company, a source of coal mined at Staunton, Illinois, by members of the Progressive Mine W o r k e r s Union who are not on strike. The Republic Coal and Coke Company is a distributor. T h e University now has a contract with this Company to supply coal as needed throughout the fiscal year 1949-1950 from a Danville mine in which United Mine W o r k e r s are employed, but this coal can not be delivered because of the strike. T h e recommendation to the Executive Committee was based on an oral offer. T h e Company is now unable to supply this coal at the original price of $5.25 a ton but will accept an order at $5.50 a ton (plus freight at $2.05 a ton, or a price of $7.55 a ton delivered) for twenty cars to be shipped a car a day. The order will be subject to cancellation by the University at any time. In view of the coal shortage and the uncertainty of deliveries from Danville under the University's standing contract, the Director of Purchases recommends that an order be placed with the Republic Coal and Coke Company at $5-50 a ton. T o avoid further price increases he has placed an order for twenty cars on this basis, subject to approval by the Board. H e is trying to find additional coal and has located eight cars which were bought at the price of $5.25 a ton f.o.b. mine, the price authorized by the Executive Committee. Under current market conditions, price competition is not feasible and it is a matter of purchasing coal wherever it is available as a protection against curtailing power plant operations further. Immediately after the coal strike started on September 19 all Physical Plant operations were reviewed in order to reduce to a minimum the use of steam and electric power. I recommend approval as an emergency measure, and that further purchases be authorized between this time and the next meeting of the Board, by concurrence of the President of the Board and the Comptroller; and that the President of the University be authorized to transmit to the members of the staff a statement of the situation, to the end that the greatest economy in the use of coal be promoted. O n m o t i o n of M r . F o r n o f , t h e s e r e c o m m e n d a t i o n s w e r e a d o p t e d . C H A N G E IN STATUS O F PROFESSOR WILLIAM E. BRITTON (2) Professor William E. Britton of the College of Law has also been serving as Legal Counsel since September 1, 1045. H e accepted this assignment with the expectation that he would be able to teach part time as his predecessors had