People's Pilot, Volume 6, Number 44, Rensselaer, Jasper County, 22 April 1897 — STATE IS RESPONSIBLE [ARTICLE]

STATE IS RESPONSIBLE

MUST RESTORE FUNDS OF THE ILLINOIS UNIVERSITY. By Its Agreement with the Federal Government the Institution Slut Be Preserved—Trustees Are Accused of Neglecting their Daty. The state of Illinois is responsible to the federal government for the state university endowment fund which has been hypothecated by ex-Treasurer Spalding, president of the Globe Savings Bank, which recently suspended at Chicago. This endowment fund was originally received from the government by the state, and was then in the shape of lands. Before giving this fund the government required that ths state agree to forever maintain it, and in case of its depreciation from any cause to make it good. In accordance with the proposition made by the government to the state, the endowment fund was accepted. After a few years the lands became valuab.e and were sold. The proceeds from the sale of these lands, together with the interest, were invested in bonds. These bonds, amounting to $418,810, were deposited with ex-Treas-urer Spalding, and are the ones hypothecated by him with Chicago banks. Ex-Treasurer Spalding’s shortage will have to be made good by the state, and the investigation of the ex-treas-urer begun by the board of trustees may be taken up by the state authorities. The trustees favor the investigation by tho state.