Repository: UIHistories Project: Book - History of Illinois Land Grant Endowment [PAGE 9]

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Land Grant Endowment Fund

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turn of the land scrip and to buy interest-hearing securities so as to provide an income for the support of the University as early as possible. The responsibility for administering and selling the 480,000 acres of scrip rested with the Hoard of Trustees. During the year 1867, they sold 280.0(H) acres of scrip at an average price of 57.5 cents per acre, realizing a sum of $160,192.41. In addition, the Finance Committee recommended the sale, which was made, of another block of 100,000 ( acres at H) cents per acre. No additional sales of land scrip were made until 1870 when 50.080 acres were sold for 89.5 cents per acre. The final sale of 24,480 acres of land scrip was made in 1873 for $1.00 per acre. The total amount realized from the sale of the 454,560 acres of land scrip was $319,494.01, at an average price of 78.8 cents per acre. It was the original intention of the Board to use at least 100,000 acres of the scrip for locating wild land (timber lands easily accessible by water communication), and accordingly, in addition to the above 454,560 acres, 16,099.91 acres were located in Minnesota, and 9,340.09 acres in Nebraska during the year of 1867. Their plans called for the location of additional acreage as soon as desirable lands could be found. Locating lands in Kansas was considered, but no locations were ever made. The failure to realize a quick return from the Nebraska and Minnesota location coupled with the management expense, taxes, and a poor market for land, no doubt caused the Board to give up the plan. The initial location was made in 1867, but the first sale was not made until 1884. During this sixteen-year period, the Board of Trustees received practically no income from the investment, but had management expenses and taxes. The first record of any desire to sell the wild lands was in 1869. From 1871 to 1880, a number of attempts were made to sell these lands at not less than $4.00 per acre. A sales circular was prepared, the Nebraska lands were advertised in the Nebraska papers, and a local land agent was employed. In 1880, it was decided "that for the present Nebraska lands should be withheld from sale as it was the belief that they would be worth much more." In the same year it was felt that there was no good market for Minnesota lands. In 1883 it was recommended that the Nebraska lands be sold for $12.50 to $13.00 per acre, one fourth cash, balance on terms not to exceed 8% interest. The following year an attempt was made to lease the unsold Nebraska lands. Ultimately the University realized $329,518.90 from the sale of these 25,440 acres of wild lands, or an average price of $12.95 per acre. The Treasurer, under the direction of the Hoard of Trustees, was responsible for the investment of the proceeds r« eived from sale of land scrip or wild !andv He was restricted to investing the fund in United States i<>cks# stocks of the State of Illinois, or county bonds