university of illinois - UIHistories Project

1957] UNIVERSITY OF ILLINOIS 955
and as long thereafter as oil or gas is being produced from said farms if the same
is being produced therefrom at the expiration of said six-month period, for a
consideration of $1.50 an acre, or a total of $624.00, to be paid the University by
Development Associates, Incorporated, for said leases. In the event oil or gas is
produced from the farms under the provisions of the leases, the University will
receive the usual one-eighth royalty upon the oil and gas produced therefrom.
The Board of Trustees authorized the giving of oil and gas leases covering
these farms to Mr. C. R. Cochonour on June 27, 1956, for a consideration of $1.00
an acre. Those leases also contained the one-eighth royalty provision. Those leases
expired on December 31, 1956, and, subsequent to their expiration, no one has
manifested any interest in securing oil and gas leases covering the farms from the
University until the present offer from Development Associates, Incorporated, was
received. No other offer has been received.
I recommend that the Board authorize its Comptroller and Secretary to accept
(he offer of Development Associates, Incorporated, on behalf of the University
and to execute oil and gas leases covering said farms, upon approval of their form
and provisions by the Legal Counsel, and deliver the same to Development Associates,
Incorporated, upon the payment by the latter of said consideration to the
University for the leases.
On motion of Mr. Bissell, this was referred to the Executive Committee
with power to act.
INVESTMENTS
Mr. Swain, for the Finance Committee, reported the following changes
in investments of trust funds:
Endowment Funds — General
Sale
$42,000 U. S. Savings Series K bonds, 2.76 per cent, due August 1,
1966
Purchase
$40 698 00
$10,500 U. S. Treasury bonds, 2 l /2 per cent, due August 15, 1963 $ 9 791 25
51,000 U. S. Treasury bonds, 2j4 per cent, due September 15, 1959... 49 278 75
9,000 U. S. Treasury bonds, 2J/2 per cent, due August 15, 1963
12,000 C.I.T. Financial Corporation, iVi per cent, due September 1,
8 392 50
1970 10 920 00
30,000 General Motors Acceptance Corporation, 3% per cent, due
September 1, 1975 26 400 00
118 shares Peoples Gas Light and Coke Company common 4 734 75
44 shares Inland Steel Co. common 3 829 62
r , Endowment Funds — Miller Estate
Sale
$50,000 U. S. Treasury bonds, 2j4 per cent, due August I, 1957 $49 968 75
; Purchase
, $50,000 Southern California Edison, 4% per cent, due July 1, 1982 $50 365 00
240 shares Aluminum Company of America common 23 m 93
1 80 shares Tampa Electric Company common 2 200 00
\ n , Current Funds
Purchase
: $1,022,500 U. S. Treasury bonds, 2% per cent, due March 15, 1959 $999 813 28
',032,500 U. S. Treasury bonds, 2*4 per cent, due September 15, 1959. . 999 589 06
504,000 U. S. Treasury bonds, 2% per cent, due June 15, 1958 499 083 75
: Exchange
. $10,000 U. S. Treasury certificates, 3^4 per cent, due October 1, 1957, for $10,000
U. S. Treasury notes, 4 per cent, due August 1, 1961
; 20,000 U. S. Treasury notes, 2 per cent, due August 15, 1957, for $20,000 U. S.
Treasury notes, 4 per cent, due August 1, 1961