Repository: UIHistories Project: Board of Trustees Minutes - 1958 [PAGE 160]

EXTRACTED TEXT FROM PAGE:

1956]

UNIVERSITY OF ILLINOIS

157

O n motion of M r s . W a t k i n s , this recommendation was approved. The Secretary was instructed to express to the appropriate representatives of Mr. Schlader's estate the appreciation of the Board of Trustees for this generous bequest.

ESTATE OF FRED S. BAILEY

(14) Representatives of the Fred S. Bailey estate have requested an appearance before the Board of Trustees to advise the Board of the estate and the nature of the trust created under Mr. Bailey's will, and to discuss plans for administration of those portions of the trust which affect the University of Illinois. Representatives of the University Y.M.C.A. have also requested an opportunity to be present on this occasion so that they may be informed of the provisions of the trust affecting the University Y.M.C.A., which is a beneficiary of Mr. Bailey's will in that it establishes scholarships for students at the University of Illinois, said scholarships to be awarded by the Y.M.C.A. The bill to contest Mr. Bailey's will which was pending in the Circuit Court for Champaign County has now been dismissed and the will is confirmed. It is therefore an appropriate time to establish the mechanics of the trust. Messrs. Wallace M. Mulliken, of the law firm of Thomas, Mulliken, and M a m e r , Champaign, attorney for Mr. Bailey; William O. H e a t h and Merwyn Q. Lytle, Vice-Presidents of the H a r r i s T r u s t and Savings Bank of Chicago, executors of the estate of F r e d S. Bailey; H . B. Ingalls, General Secretary of the University Y.M.C.A., and T o m S. Hamilton, Chairman of the A w a r d s Committee of the Y.M.C.A., a p peared at the meeting and were introduced. Mr. Heath related the historical background of M r . Bailey's bequest, his life-long interest in the University and the community of Champaign-Urbana, and the considerations which led him to establish a trust for the benefit of the University and its students. H e also reported on the attempt made to contest Mr. Bailey's will which was successfully defended by Messrs. John L. Franklin, Special Counsel for the H a r r i s T r u s t and Savings Bank in this litigation, and Ralph F. Lesemann, University Legal Counsel. M r . Heath then presented a financial statement of the present status of the Bailey T r u s t and estimates of future income. Copies of this statement were distributed to the Trustees, and a copy has been filed with the Secretary of the Board for record. Most of the trust assets are bonds and common stocks, but they include a farm of 230 acres in Champaign County, conservatively valued at $138,000. M r . H e a t h stated that the H a r r i s Trust and Savings Bank will welcome suggestions from the Board of Directors of the University Y.M.C.A. and the Board of Trustees of the University of Illinois, beneficiaries of the trust, as to whether or not this farm should be sold and the proceeds invested in securities. Mr. Lytle reported on the investment portfolio of the trust. A s the senior officer in charge of personal trusts in the T r u s t Department of the H a r r i s T r u s t and Savings Bank, he will have personal supervision of the Bailey T r u s t . M r . Lytle asked that the Board of Trustees of the University of Illinois adopt a resolution accepting the income from the trust and designating the appropriate officer to receive the funds, and that the Board of Directors of the University Y.M.C.A. adopt a similar resolution. These resolutions may also specify how the beneficiaries desire to receive payments, i.e., annually, semiannually, or quarterly.