The cash balance on hand belonging to the following funds: From Chicago and Northwestern Railroad Co., rebate on freights 215.75. 37.95 Right of way damages..... 157.00 Total receipts for the year..... .$105,409.11 DISBURSEMENTS. Expended on account of State appropriations..... Endowment fund remitted to State Treasurer for investment.... appropriations...... Interest on State warrants paid contractor.. Invested on sale notes during the year... Total disbursements during year.. Cash balance on hand... Balance..... .$ 12,541.96 22,821.02 8,300.00 53,262.80 215.75 5.06 580.54 .$ 97,727.13 7,681.98 .$105,409.11 The cash balance on hand belongs to the following funds: The system of book-keeping employed in the Treasurer's office gives general satisfaction. The accounts and vouchers of each department are kept separate from the others, and are thus always available to the Professor in charge. They can be examined by the Board of Trustees without difficulty, and are readily intelligible to one not an expert in accounts. The endowment of the College is in round numbers $637,000 and the income there from during the past fiscal year amounted to $46,949.73. Over $500,000 of the College endowment is invested in land leased on ten year contracts with the privilege of purchase at the expiration of the lease. During the next fiscal year leases amounting to $87,000 will become due, and in the year following the leases terminating will ag gregate $134,000. Thus in the next two years over $221,000 of the College endowment will be paid in. The safe and profitable investment of this sum is a matter of vital importance to the College. The last General Assembly memorialized Congress to so amend the national law as to permit the State to loan the College endow ment on real estate securities. The law was amended as desired. To secure its benefits, however, further legislation upon the part of the State is necessary. The General Assembly should provide for the loaning of the fund by the Board of Trustees on farm mortgages under such restrictions as will insure its safety. The endowments of many colleges are thus invested. In no other way can that of this Institution be safely handled and yet made to yield an income sufficient to support and develop the College. Rental on leases is paid in advance. Interest on the fund when it is re-invested will probably be paid at the end of the year. This and the necessary lower rate of interest will cause a considerable reduction in the revenues of the College. If the fund as it is paid in can be invested so as to net the College seven per cent, I estimate the income of the College for the next few years as follows: The expenditures for the present year on account of salaries and the various departments amount to $42,315.13. The balance on hand at the close of the year is nearly $5,000. With this balance rightly distributed over the years, with the privilege of loaning the endowment on real estate securities, and with wise economy in appropriations, I see no reason to apprehend financial embarrassment to the Institution. Attached to this report are exhibits giving full information regarding the condition of the College funds, the income received therefrom and the expenditure of the same. Respectfully submitted, E. W. STANTON, Secretary. EXHIBIT A. The following statement shows the condition of the lands and funds which constitute the endowment of the College: Endowment fund land under lease.... 154,638.30 acres. ..$466,401.62 469.67 acres... 1,569.01 49,098.38 acres... 114,516.02 11,333.17 acres. .. 38,519.51 3,680.00 acres. .. 7,800.00 Land purchased with interest money and sold Total endowment..... Lands and funds yielding income........ 9,000.00 .$637,806.16 .$629,221.13 Lands and funds not yielding income... 8,585.03 $637,806.16 The lands and funds yielding income are as follows: Endowment fund land under lease, eight per cent..... .$466,401.62 rants, bearing in most cases six per cent....... 108,750.00 Amount invested in farm mortgages, seven per cent.. Total investments.. Lands and funds not yielding income are as follows: Cash in the hands of State Treasurer awaiting investment.. 15,550.00 .$629,221.13 Total..... ....... .$ 1,569.01 5,766.02 1,250.00 .$ 8,585.03 Investments by the State Treasurer are as follows: ..... Muscatine city bonds, bearing six per cent bearing six per cent....... .$ 6,000.00 10,000.00 5,600.00 7,000.00 12,500.00 500.00 400.00 9,500.00 400.00 600.00 1,700.00 11,400.00 10,000.00 10,000.00 5,500.00 6,000.00 7.000.00 Independent school district, Poe township, bearing six per cent.. Total... ........ The investments made by agent Bassett on farm mortgages are as follows: Elizabeth Clements. March 12, 1879, five years, at nine per cent....$ Edward Raftery, January 31, 1882, five years at seven per cent ... 1,000.00 per cent 1,400.00 C. P. & Julia Brainard, July 15, 1882, nine and a half years at seven per cent..... 1,050.00 per cent...... Samuel Flack, January 1, 1883, five years at seven per cent. Benson Searle, June 23, 1883; due January 1, 1884, at seven per cent |