Repository: UIHistories Project: Board of Trustees Minutes - 1952 [PAGE 470]

EXTRACTED TEXT FROM PAGE:

i95i]

UNIVERSITY OF

ILLINOIS

567

w o u l d m a k e it p o s s i b l e f o r f a r m a n d h o m e a d v i s e r s t o p a r t i c i p a t e m o r e fully i n t h e U n i v e r s i t y R e t i r e m e n t S y s t e m of I l l i n o i s . T h e p l a n p r o p o s e d is e x p l a i n e d i n t h e m i n u t e s of t h e B o a r d m e e t i n g of J u n e 15, 1948 ( p a g e 1 1 4 8 ) . O n m o t i o n of M r . M c L a u g h l i n , t h i s p l a n w a s a p p r o v e d a n d a u t h o r ity w a s g r a n t e d f o r t h e e x e c u t i o n of t r u s t a g r e e m e n t s b e t w e e n t h e University and the participating county farm and h o m e bureaus, subject t o a p p r o v a l of t h e f o r m a n d p r o v i s i o n s of t h e t r u s t a g r e e m e n t b y t h e L e g a l C o u n s e l a n d o t h e r a p p r o p r i a t e U n i v e r s i t y officers. E N D O W M E N T INVESTMENTS Mrs. W a t k i n s reported that the F i n a n c e Committee h a s approved the f o l l o w i n g c h a n g e s in e n d o w m e n t s e c u r i t i e s a t t h e a p p r o x i m a t e p r i c e s indicated: gaje. Approximate 200 shares Northern Indiana Public Service Market Total Co., common stock 2ij/2 $4 300 10/100 shares Eastman Kodak, common stock 46^ 5 Purchase: 65 shares Industrial Rayon, common stock 66%j 4 346 O n m o t i o n of M r s . W a t k i n s , t h e f o l l o w i n g r e s o l u t i o n w a s a d o p t e d : WHEREAS, The Board of Trustees of the University of Illinois is the owner of the following described securities: 200 shares Northern Indiana Public Service Company, common stock; 10/100 shares Eastman Kodak, common stock; and, whereas the Board of Trustees has approved the sale of such securities, Now, therefore, be it resolved, That Lloyd Morey, Comptroller, and A. J. Janata, Secretary, be hereby authorized to execute any and all documents necessary to complete such sale. INTEREST IN AERMOTOR COMPANY STOCK RECEIVED FROM T H E ESTATE OF L A V E R N E NOYES M r s . W a t k i n s p r e s e n t e d t h e f o l l o w i n g r e p o r t of t h e F i n a n c e C o m mittee : The University holds a beneficial interest in the Estate of LaVerne Noyes, consisting of 175 shares of Aermotor Company stock presently held by the trustees of the estate. Forty-seven other colleges and universities also participate under the will and hold varying amounts of stock. A committee consisting of representatives of four institutions so participating, one of which is the University of Illinois, has considered ways of liquidating these interests at the present time, and a plan has been worked out whereby the present management may acquire the company on terms which, it is believed, are advantageous to all parties. Upon approval by the University of Illinois and the other three institutions, it is then to be submitted to all forty-seven participating schools. Briefly stated, such terms provide for the sale of the investment portfolio of the company and a liquidating dividend paid to the schools from the proceeds. It is estimated that this payment will amount to something in excess of $850 per share. In payment of the net operating assets of the Company, 4 ^ per cent, twenty year debentures of the Aermotor Company will be issued in the amount of $369.59 for each share held by the schools. Through the operation of a sinking fund, it is anticipated that such debentures will be entirely retired during the twenty-year period. In addition, the trustees hold investments and cash with a present value of approximately $566,500, which will be distributed to the participating schools upon the death of the last annuitant. T h e total amount that will then be received by the University is estimated to be in excess of $1,500 per share,

or $262,500.