REPORT OF THE SECRETARY. INCLUDING A SUMMARY OF PROCEEDINGS OF THE BOARD OF TRUSTEES. MEMBERS OF BOARD OF TRUSTEES. Ex-officio-HON. L. M. SHAW, Governor of Iowa. Ex-officio-HON. R. C. BARRETT, Superintendent of Public Instruction. First District-Hon. S. H. Watkins, Libertyville.... Term Expires 1904 .1904 .1902 ..1904 . 1906 .1902 .1906 .1904 ..1902 .1906 .1906 STANDING COMMITTEES. GROUP I. Finance Committee-Trustee McElroy, Gov. Shaw, Trustees Robinson, Barclay, Penick, and Gabrilsen. Building Committee-Trustees Dixon, Jones, Hungerford, Boardman, and Watkins. GROUP II. Committee on Agriculture, Horticulture, Experiment Station and Veterinary Science-Trustee Barclay, Gov. Shaw, Trustees Boardman, Gabrilsen, and Moninger. Committee on Engineering Departments and Physics-Supt. Barrett, Trustees Jones, McElroy, and Dixon. Committee on Steward's Department, College Hospital and Sanitary Arrangements-Trustees Watkins, Hungerford, Robinson, Penick, and Boardman. GROUP III. Committee on Faculty and Courses of Study-Trustees Jones, McElroy, Supt. Barrett, Trustees Robinson, Hungerford, and Gabrilsen. Committee on College Lands and Investments-Trustee Penick, Gov. Shaw, and Trustee Moninger. Committee on Rules-Trustees Boardman, Watkins, and Dixon. GROUP IV. Committee on Scientific Departments-Trustee Gabrilsen, Gov. Shaw, Trustees Hungerford and Watkins. Committee on Literary Departments and Library-Trustee Robinson, Supt. Barrett, Trustees Boardman and Penick. Committee on Public Grounds and Assignment of Rooms-Trustees McElroy, Jones, and Barclay. Committee on Bonds-Trustees Moninger and Dixon. PURPOSE OF THIS REport. It is the purpose of this report to give a brief history of the fiscal operations of the college during the last two years together with a statement of its present financial condition. The subject, treated will be, I. The college endowment fund. II. New buildings, improvments, repairs, and state appropriation for the purchase of pure bred stock. I. COLLEGE ENDOWMENT FUND. The college endowment fund amounts to $683,708.52 It has been increased during the past biennial period by the following sums: Change in valuation of tract of land in Ringgold county. Total increase... $375.00 500.00 $875,00 The endowment fund had its origin in the grant of lands by the national government in 1862, for the benefit of colleges of agriculture and mechanic arts, and in the transfer and investment, in the early years of the college, of a portion of its annual income. The amount credited to each of these sources is as follows: To the original congressional land grant...... Total...... $589,754.01 93,954.51 .8683,708.52 With the exception of a small tract of land in Polk county, obtained under foreclosure of mortgage, the fund is managed through the land and loan agency, of which agent, Herman Knapp has charge, and the financial agency with W. A. Helsell of Odebolt, Iowa, as agent. The land and loan agent formerly had charge of the loaning of the surplus interest portion of the endowment, in addition to leasing the endowment land. It is the present policy of the board to unite the two agencies and, as soon as practicable, place the management of the entire fund in the hands of the financial agent. To this end all moneys belonging to the portion of the fund managed by agent Knapp are immediately upon collection transferred to the financial agency. The entire fund is at present divided as follows: (a) Managed by the board directly...... (6) Managed through the land and loan agency.. (c) Managed through the financial agency.. Total..... $ 2,418.55 22,454.08 658,835.89 $683,708.52 Dealing with these divisions in their order, the following is a summary of the financial operations connected with each during the biennial period: (a) PORTION OF ENDOWMENT FUND MANAGED BY THE BOARD DIRECTLY. The Polk county tract of forty acres managed directly by the board is leased to B. F. Kemper at an annual rental of $85. It is situated in the coal area, and will probably be sold or rented as coal land in the near future. (b) LAND AND LOAN AGENCY. This agency was charged at the beginning of the biennial period with 8,078.94 acres, appraised at $36,975.45. During the biennial period there has been patented 5,742.92 acres, appraised at $26,921.37. This leaves 2,336.02 acres, appraised at $10,054.08, still owned by the college. It should be borne in mind that all of this land has been held for many years under leases granting to the lessee the right of purchase, or renewal of lease, at the original appraisement. This accounts for the low valuation. The leases now in force bear 8 per cent interest and expire as follows: The loans in the hands of Agent Knapp, at the beginning of the biennial period, aggregated $44,150. Of this amount $31,750 has been collected and transferred to the financial agency, leav ing uncollected loans in the Knapp agency amounting to $12,400. These loans are all payable before July 1, 1902. It is therefore probable that this part of the work of the agency will be closed out entirely during the next fiscal year. (c) THE FINANCIAL AGENCY. At the beginning of the biennial period there was a large uninvested balance in this agency due to the fact that the state law governing the investment of the endowment fund did not permit the trustees to made loans bearing less than 6 per cent interest, which was above the market rate at that time. This restriction was removed by the last general assembly, whereupon the board of trustees authorized the financial agent to loan the fund at the highest rate obtainable, provided such rate should not be less than 5 per cent per annum. The following is a summary of the trans actions of the agency for the biennial period: Uninvested balance July 1, 1899..... Mortgage loans paid during the biennial period. $ 98,250.95 219,088.57 26,921.37 1,575.00 31.750.00 Principal of landleases paid..... Ringgold county tract patented.. Transferred from Knapp agency (loans collected) Railroad right of way damages... Making a total to be loaned of... The agent has loaned, On 6 per cent mortgages... Balance uninvested..... Of this balance there is, In the hands of the state treasurer.. PRESENT CONDITION OF THE ENDOWMENT FUND. The present condition of the endowment fund is as follows: Land under lease at 8 per cent 2336.02 acres. Farm mortgages bearing 64 per cent interest. $ 10,054.08 159,450.00 2,000.00 161,750.00 The following table shows when the loans are payable: Payable in the fiscal year ending June 30, 1901... Total..... $ 72,350.00 131,550.00 124,600.00 71,150.00 155,000.00 67,950.00 41,400.00 $ 664,000.00 A comparison of the books of the secretary of the board with the accounts of agents Knapp and Helsell, and the state treasurer, shows that these officers have accounted for the entire endowment fund under their charge. II. NEW BUILDINGS. IMPROVEMENTS. REPAIRS, AND STATE APPROPRIATION FOR THE PURCHASE OF PURE BRED STOCK. Under this head are included: (a) Special appropriations by the Twenty-eighth General Assembly. (b) Appropriation of executive council on account of fire damage. (c) Annual appropriation for improvements and repairs as per Code of 1897. The following are the special appropriations to the college made by the last general assembly: The trustees asked of the last legislature an appropriation of $150,000 for an engineering hall. The sum of $85,000 was granted with the understanding that the balance necessary to complete the building should be taken from the proceeds of the one-tenth. mill tax allowed the college for buildings. The board of trustees at its meeting in April, 1900, referred the matter of the employment of an architect for this building to |