 | Board of Visitors minutes January 13, 1875 |  |
Richmond, Jay [January] 13th 1875.
At a meeting of the members of the Board of Visitors of
the University of Virginia setting as a committee held at the
Call of the Rector at the "Ballard House" in the city of Richmond
on the 13th day of January 1875, as contemplated and
authorized by a resolution adopted at the stated meeting of the
Board in June last.
Present- R. G. H. Kean, Rector, Isaac H. Carrington, W. R.
Berkeley, Thomas Smith, E. B. Montague and Micajah Woods.
The following draft of an act of the General Assembly was
prepared and approved and the Rector instructed to present the
same to the proper committee and request its passage, viz
An Act - To Consolidate the Existing debt of the University
of Virginia.
1. Be it enacted by the General Assembly of Virginia, That
be and they are hereby authorised at any meeting at which a
majority of said Visitors shall be present to issue Bonds of
the said Corporation, either registered, or with coupons for
the interest, or in part of the one class, and in part of the
other, convertible from the one class into the other at the
pleasure of the holder, in sums of one hundred dollars, or any
multiple thereof to run not more than thirty years, bearing
interest at a rate not exceeding Eight per centum per annum,
such interest to be payable at such place as the Board of
Visitors shall designate.
2. The amount of the loan hereby contemplated shall not
exceed the sum of ninety-five thousand dollars, and the proceeds
thereof shall be applied exclusively to the redemption
of the existing debt of the University.
3. For the purpose of securing the payment of the said
Bonds, the Rector and Board of Visitors of the University, are
hereby authorized to convey by deed of trust, all the real estate
belonging to, or held for the said University, and also by said
deed to pledge the annual appropriation made to the University,
subject to any previous pledge of said appropriation which has
been heretofore made,
The following letter of the Rector transmitting the foregoing
draft to the Chairman of the Committee of Schools & Colleges
of the House of Delegates was approved, and on motion was
ordered to be apread upon the record:
B. H. Magruder, Esq
Chairman of the Committee on Schools & Colleges of the House
of Delegates of Virginia
The Board of Visitors of the University have directed
me to present the enclosed draft of an Act, to consolidate
and fund the debt of the University, to the General Assembly-
The Report of the Board to the General Assembly shows
the debt to be as follows:
| 1827 | Past due Bond- 6% (M. Randolph loan) | $ 3,000.00 | ||
| Due in 1876 (loan of 1869) | 8% | 10,000.00 | ||
| 1852 | Due in 1877 (old loan) | 6% | $25,000 | |
| loan of 1869 | 8% | 5,000 | 30,000.00 | |
| 1869 | Due in 1878 | 8% | 5,000.00 | |
| 1869 | Due in 1879 | 8% | 5,000.00 | |
| 1869 | Due in 1880 | 8% | 5,000.00 | |
| 1869 | Due in 1898 | 8% | 29,000.00 | |
| Aggregate bond debt | 87,000.00 | |||
| Floating debt | 6,404.51 | |||
| Total Debt | $93,404.51 | |||
The $3,000, past due, has been due for several years- the
interest is regularly paid- and the nolder has not applied
for the principal, but may do so at any time.
The Annual reports since the present Board came into Office,
have shown, that it has been by a great effort of economy, by
restricting the appropriations for repairs &c below what is
by reducing and equalizing the emoluments of the professors to
a point, where the danger is great of driving off some of the
best of them to more remunerative fields, that the present
Board has been able to deal with the current expenses, the
debt falling due during that time-and the interest account-We
have arrested the accumulation of debt, with the cheerful
cooperation of the Faculty, on whom some of the measures for
that purpose have borne hardly-; and but for the panic of 1873,
would have been able to establish a sinking Fund. It has been
ascertained with tolerable precision that that untoward
event, reduced the number of students last year by not much less
than 100. I mean prevented an additional increase of 100, over
the year before. All this debt except $3000, was incurred
before the present Board came into office. During the three
years they have been in office about $8000 of debt has been
paid off.
All the present bond debt except the $3000 of past due bonds,
matures after the present Board will go out of office. Nothing
would be easier than for the present Board to carry the debt
through their term of office, and leave their successors the
task of providing for it. But they have not deemed it either
fair to their successors, or faithful to the University, not to
make timely provision for meeting it as it matures.
Here they have carefully digested the draft which accompanies
this letter, as a means of putting the entire debt in a form,
which will enable the University, in more favorable times than
have existed for the last 14 years, to provide a sinking fund
require a sinking fund to be accumulated year by year- At
present the necessities of the institution, will not permit
this- and the fluctuations of the future may temporarily produce
the same conditions.
Attention is asked to the Annual Report of the Board for
1872-1873 and 1874, and the statements therewith, as illustrating
what has been said above.
By consolidating the whole debt in the manner proposed,
in bonds with thirty years to run, well secured on ample property,
and in other respects attractive to investment bonds which
will then be rendered marketable, the debt can be carried over
the present period of depression, without difficulty. An
economical administration in the future, coupled with an increase
in the number of students, which may fairly be expected
with returning prosperity, will enable the loan to be met at,
or possibly before its maturity.
In spite of the panic, and its still continuing effects,
there has been a steady though small increase in the number of
students—342 in 72-3, 354 in 73-4—361 now, which will be increased
to about 370 before the end of the present session.
This number represents about 300 paying students, and 70 nonpaying,
or free students—300 paying students is the basis on
which our estimates are all founded. Of these about 150 are
from other states, who leave in Va not less than $75000 annually.
As the number increases, this benefit to the state will be augmented,
and the college revenues increased so that a sinking
fund can be established.
Major Carrington can furnish any further information you may
desire.
Jas. D. Jones, Secretary.
| Board of Visitors minutes January 13, 1875 | |