BBHRBgBBl ilii 1 1 m ! r^ Mitt fjfi GIFT OF 2=. Contents 1 Memorial showing; the wants of the University. Nc 1875. 2 Same . 1875-1876. 3 Same. 1877-78. 3a Report of the Regents to the Constitutional convc 4 Report of Commission to examine into and report c condition of certain funds, etc. in relation tc State university, 1879. 5 Memoifrial of the Regents on the wants of the Uni-v Deo. 31, 1880. 6 Same. Feb. 3, 1880. 7 Memorial to Congress (regarding investment of mor derived from sale of lands donated by Congress) 28, 1882. 8 Report of Law committed of the Regents on the act Congress of July 2, 1862. 9 University of California meeds} Jan.l, 1885. 10 Senate bill No. 49. Jan 18. 1887. An act to provi for the permanent support of t v e University. 11 Reasons for supporting bill to provide for the p* manent support of the University. Jan. 1887. 12 Communication regarding funds for Experiment stat Dec. 6, 1887. 13 Report of the specie 1 committee on the Morrill cc aid act. Mar. 1891. * 14 Appeal to the Alumni of the University by a Comml on legislation ap-ointed by the Regents to arov interest in securing funds for t v e University. 25, 1894. ^, 1887 > for appropriation c 17 1250,000 for buildings. 18 Report of Committee on ways and rneans. May 20, 1C 19 Report on establishment of fee for incidentals. rl 14 contact with the rest of the rising and cultured youth of the State ; and if Mr. Merrill's own statement is to be believed, that was assur- edly not the object of the " Morrill grant." In conclusion, allow me to suggest, that the first thing needful for rendering the aid of science accessible to the rural population is, that the rudiments at least of natural science should be effectually, and not only nominally, taught in the common schools. The reason why this is not now done is simply that there are too few teachers com- petent to give such instruction, and if the University does no more than supply these teachers it will have done the greatest possible service to the cause of agriculture. Then, indeed, " farm schools " scattered over the country could do real service, because they would have suitable material to work upon. But so long as there are no teachers, nft law or constitutional provision can create efficient schools. If there is any farther information that I can furnish you, please let me know, and I will do so as rapidly as possible. Very respectfully yours, EUG. W. HILGARD. REPORT OF COMMISSION TO EXAMINE INTO AND REPORT CONDITION OF CERTAIN FUNDS, ETC. IN RELATION TO THE STATE UNIVERSITY, SACRAMENTO: STATE OFFICE : I ' F. P. THOMPSON, SUPT. STATE PRINTING. 1879. REPORT OF COMMISSION EXAMINE INTO AND REPORT CONDITION OF CERTAIN FUNDS, ETC. IN RELATION TO THE STATE UNIVERSITY. SACRAMENTO: STATE OFFICE : : : F. P. THOMPSON, SUPT. STATE PKINTING, 1879. REPORT. SACRAMENTO, November 4th, 1879. To the Honorable the Senate and Assembly of the State of California'. GENTLEMEN: The Legislature of 1877-8 enacted as follows: SECTION 1. The Controller of State, the Surveyor-General, the Attorney-General, and State Treasurer are hereby appointed a Commission for the purpose of examining and reporting to the next Legislature the condition and disposition of the Congressional Seminary Land Grant of seventy-two sections and interest arising therefrom, the Congressional Public Building Land Grant of ten sections and interest arising therefrom ; the transfer of certain bonds in accordance with an Act entitled "An Act requiring the Controller of State to transfer certain funds," as provided for in Section 1 of said Act, approved March 26th, 1868; the condition and amounts of money received from the sale of tide lands and invested under an Act entitled "An Act for the endowment of the University of California," approved April 2d, 1870; the amount of money paid to the Eegents of the University of California in conformity with an Act entitled "An Act to provide for the support of the University of California/' and the several dates of payment thereof, approved April 1st, 1872. SEC. 2. As soon as practicable after the passage of this Act the persons named in Section 1 of this Act shall proceed to examine the books of the State Controller, the Surveyor-General, the State Treasurer, and the various Acts concerning the State University, for the purpose of determining the condition and disposition of the various funds mentioned in Section 1 of this Act. SEC. 3. It shall be the duty of the said Commission to report the results of their examina- tions, as provided in Sections 1 and 2 of this Act, to the next Legislature of this State. In obedience to the above recited Act we have the honor to report as follows : The books of the Register of the State Land Office show that of the seventy-two sections (46,080 acres) of Seminary Land above referred to, 46,042.13 acres have been selected by the State, and 47,771.35 acres have been sold (1,760 acres was sold and afterwards forfeited and sold again); from which it appears that said grant is about exhausted. According to the Register's books there has been paid to the several County Treasurers of this State, on account of the sale of the said seventy-two sections, the sum of $89,736 76. The Controller's books show that of the said sum. of $89,736 76 there has been paid into the State treasury, from date of first sale to July 1st, 1879, the sum of $67,012 47, of which $44,632 24 is principal and $22,380 23 is interest. The disposition of the said sum of $44,632 24 principal was as fol- lows: $3,094 87 was paid into the State School Land Fund ; $9,665 05 was paid into the Seminary Fund, and $31,872 32 was paid into the University Fund. The said sum of $22,380 23 interest, as above, was disposed of as follows : $3,281 50 was paid into the School Fund ; $10,364 25 was paid into the Seminary Fund ; $8,107 28 was paid fnto the University Fund, and 627 20 was paid into the University Endow- ment Fund. Thus it appears that while the Register's books show sales of said Seminary Lands to the amount of 89,736 47, the Con- troller's books show but 67,012 47 as the amount actually paid into the State treasury as the result of said sales, leaving a balance appar- ently unaccounted for of 22,724 29. Of Public Building Lands mentioned in the foregoing Act (creat- ing Commission), the books of the Register of State Lands show that of the ten sections granted, the State has selected 6,195.99 acres, and has sold 7,055.82 acres (974.24 acres having been sold and for- feited and resold, leaving 6,081.58 acres as the amount actually sold by the State), and that there are 320 acres thereof yet unsold; that there was realized from said sales the sum of 10,186 14, making the total amount received bv County Treasurers for sales of both kinds of land (as per Register's books) to be 99,922 90. The Controller's books show that of the said sum of 10,186 14 there has been paid into the State treasury for principal 5,451 91; for interest, 2,104 99; total, 7,556 90. The said principal sum of 5,451 91 was disposed of as follows : 306 25 was paid into State School Land Fund; 374 05 was paid into the Public Building Fund, and 4,771 61 was paid into the Univer- sity Fund. The said interest of 2,104 99 was disposed of as follows: 171 OS was paid into School Fund; 834 86 was paid into the Public Building Fund, and 1,099 05 was paid into the University Fund. From which it follows that of the said sum of 10,186 14, result of sales as shown by Register's books, there is apparently unaccounted for by Controller's books the sum of 2,629 24. This, added to the amount of sales of seventy-two sections apparently unaccounted for, to wit, 822,724 29, makes a total (from sales of both kinds of land) of 25,353 53 that does not seem to have found its way into the State treasury. Of the above amounts produced by the sales of Seminary and Public Building Land, and paid into State treasury, the Control- ler's books show that the School Fund received the sum of 3,452 58, and the State School Land Fund received the sum of 3,401 12. In reference to the balance aforesaid of 25,353 53, apparently unaccounted for by Controller's books, it is impossible to speak with certainty, as the Auditor's reports, upon which County Treasurers made their settlements with the State from the first sales up to the latter part of the year 1863, did not give the necessary information to enable the Controller to tell, in many instances, whether the land money reported was for School Land, Seminary Land, or Public Build- ing Lands. In a number of instances where the Register's books show that Seminary and Building Land money should have been reported from the different counties, the Auditor's reports from said counties for said time show no money other than School Land money. From all the facts we can gather in the matter, we are of the opin- ion that most of the said sum of 25,353 53, given above as apparently unaccounted for by the Controller's books, was paid into the State treasury to the credit of the School Fund. There was a portion of the said sum lost to the State on account of defalcations of County Treasurers how much your committee cannot ascertain. Consider- ing that the whole of said sum was truly accounted for by County Treasurers, and that the State was to be held responsible for the same to the University, the account would stand as follows, viz.: Whole amount of Seminary Land and Building Land money received by County Treasurers from date of first sale of said lands to July 1st, 1879, and not accounted for by Controller's books $25,353 53 Less Treasurers' commissions on total receipts from sales of said lands, to wit, 3 per cent, on $99,922 90 2,997 68 Leaving the net sum due University to be $22,355 85 To this must be added the sums of $3,452 58 and $3,401 12 of Seminary and Public Building Land money, shown by Controller's books to have been paid into the School Land Fund and School Fund, a total of 6,853 70 Making a grand total of $29,209 55 Which last named sum represents the greatest amount that could have been diverted from the proceeds of Seminary and Building Lands to the School and School Land Funds, from date of first sale to July 1st, 1879, and we find that most of said sum of $29,209 55 was paid into, or should have been paid into, the State treasury prior to March 26th, 1868, the date of the said transfer Act, to which our attention is directed. The Controller's books show, that from the proceeds of Seminary and Public Building Lands, there was paid into the State treasury, up to July 1st, 1879, the sum of $74,569 37 ; that $0,853 70 thereof was paid into the State School Land and School Funds, as aforesaid, and used for school purposes, and the remainder, to wit, $67,715 67 was drawn by the Regents of the University for the support and endow- ment of said institution. TRANSFER OF BONDS AND MONEY. On March 26th, 1868 (see Statutes 1867-8, page 357), the Controller was ordered to transfer to the University Fund State seven per cent, bonds to the amount of $35,100, and also to transfer from the School Fund to the University Fund the sum of $44,064 in coin. In obedi- ence to said Act the Controller transferred from said School Fund to said University Fund the said sum of $44,064, in coin, and transferred to said University Fund State seven per cent, bonds to the amount of $35,000, which said bonds had been purchased for and were held in trust for the common schools of the State. We have endeavored to ascertain the reason for this order to transfer from the common schools to the University the large sum of $79,064. Upon consulting the Journals of the Senate and Assembly for the year 1868, we found that the said bill for said transfer was passed through both Houses with- out reference to any committee whatever it passed the Senate on March 24th, 1868, and in the Sacramento Union of March 25th, 1868, we find the explanation of the bill by its author, Mr. Hager, and by Lieutenant-Governor Holden, in words as follows: "By Mr. Hager An Act to require Controller to transfer," etc. The author stated that the design was to create a fund to put the machinery of the State Uni- versity into motion. The proposition was based upon the fact that the money in question belonged properly to the University Fund. The amount was some $35,100. He suggested that the Lieutenant-Governor have leave to explain the matter more fully, as he was a member of the University Board. The Lieutenant-Governor proceeded to state that the Seminary Fund was derived from the grant of seventy-two sections of land donated by Congress to the State for a seminary of learn- ing. There were in it 46,800 acres, which were sold under an Act providing therefor, and also 6 for the sale of the 500,000 acres, at $1 25 an acre. A portion of the proceeds had been used by the School Fund since 1858-9, and there had grown up an interest, due the Seminary Fund from the School Fund, amounting to $44,064. The bill provided for the return of these amounts, and also for the disposition of a balance derived from the Public Building Fund. The bill was passed and ordered transmitted to the Assembly. The foregoing explanation contains all the light thrown upon the subject of this transfer that our researches have revealed. It does not appear that any one was acting for the State, or on behalf of the School Fund, or that a proper investigation of the indebtedness of the School or State School Land Funds to the University Fund was had at the time either by committee or otherwise. As we have shown in the preceding pages of this report that not more than $29,209 55 could have been diverted from the Seminary and Public Build- ing Land Funds into the School Fund, from the date of first sale to July, 1879, we are forced to the conclusion that more than $50,000 of the transfer of $79,064, made under the Act of 1868, was in excess of the amount due from said School and State School Land Funds to the University Fund. ACT OF EIGHTEEN HUNDRED AND SEVENTY. Under "An Act for the endowment of the University of Califor- nia," approved April 2d, 1870, we find that the Controller, with money received from the sale of salt marsh and tide lands, purchased, for the University, State bonds of the par value of 8750,000, and that said bonds yield an annual interest of $46,350. We are of the opin- ion that he should have invested in bonds, from the proceeds of the sale of said tide lands, a sufficient sum to have yielded an annual interest of 50,000; but whether the University Fund or the School Fund was injured by his failure to do so depends upon the construc- tion to be placed upon the said Act of April 2d, 1870. to which the attention of your honorable body is directed. ACT OF MARCH SECOND, EIGHTEEN HUNDRED AND SEVENTY-TWO. In conformity with the provisions of this Act the Controller, upon the statements of receipts and expenditures made by the Regents of the University, drew warrants in favor of said University for two years, aggregating the sum of 126,437 41, in detail as follows: Dale and Number of \V arrant, and Knnd. ~~~~~~~~ 111 1 .Julv S. IS7:i IM, I'nm-rsilv l-'inid. - '"'- -- - Z Z ~ ~- ~ > > > > > '='=' = '- "z _____ ~ ~ - ; ^ J- ~ " . - - oTcT | i 1 CN CN So 2 C X ! ~~^ X X -~^ " J fiif] f _ \..\ciiilin -i. IST'J :!.:;L".i. I'liivi-rsity Fi - ^.^_ - -- 7:1 i.LM'.s. <;<-n<-riii !' 1 .'J7I. University I 1 ' v:; L,97, General I' 7.'? 2.0IMI. (nMii-r.-il !' > X 1- q ' ^ I F ^ '--'- ~ -- JS5 - i^ i^ ^ = i 1 ^ /z ;v< 1 1 . uwnenu n 4,1 OS, (i,-iier;i 7.3_4 ) ;5i>i, Genera 73_4 f f,C,| . (ieneni 73_4,((| |. O ^t ^ X oc o: CO s.t.iii)!|iii.MK;,| = - i~ -.r ~ ~ l~ vr ~ s o -~ j-i r-: r ~ ~. r~. i~ _ t- r; ~ ~ o E-: rl b' = ~ X .-~. -^ '-= ? C^ t~ Cl 1- ^ ~. X .-. ~ ~ 3 -. - N C 'J- _ r. =- o S 05 OS t-T S * ~ -- ^ - ~ K ? x- a I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 i | CD | 1 i >^^\ Uuivi'i'sitv iiinl University Kudowincnl 1 ( rv, IS74*. teoting July intereit on i'. s. Monds__ tM'tiiiij; .liiniiiirv iiili-ii' 1 mi 1'. S. Hmid livlinn -lulv iiilcrt'slou U. S. Bonds 1 1 1 1 r fc. 1 -- ij -1 j : j Z 1 c<- i- a > -- a t- I 1 s* \ jjLiiij i ; 1 j f - = ; r iilv -. j j - t - < j ^ ] t |.; .1.1 X X i -_ - - 2 - J . -2 -2 -2 -2 -2 -- -2 -2 - - ^ ^ 2222 1 > o c o o < c z ~ z z z z - - - - r 7 : ^ s S~ I- |^ la ^<" ;T E-r: ~ I ^^ si ia II :: I -: .-- ^. -_ ^1 i- ?l ! ?j sf i:e ji !: ^1 t 11 H ? ^ From the above it appears that under said Act the sum of $126,- 437 41 was paid to the University; that $64,468 62 thereof was paid out of the General Fund, and $61,968 79 was paid out of the Univer- sity Fund; but we find upon investigation that in drawing upon the University Fund for said $61,968 79, the Controller erroneously over- drew said University Fund to the extent of $7,312 18, and had to transfer that amount from the General Fund to the University Fund to meet said overdraft. So that, in reality, of the $126,437 41 paid to University, as aforesaid, the General Fund furnished $71,780 80, and the University Fund, $54,656 61. Included in the $54,656 61 of University money used by the Con- troller to pay deficiencies, as in the table above set forth, there was the sum of $9,870 60, which was in the University Fund several months prior to the passage of the Act of 1872. Of this sum of $9,870 60, $2,873 18 was the principal obtained from sale of Seminary Land ; $959 92 was interest from same source, and $6,037 50 was from interest on bonds held in trust for University. Whether any of this $9,870 60 was properly used by the Controller to pay deficiencies under the said Act is, to say the least, doubtful. But we are clearly of the opinion that the sum of $2,873 18 principal, for Seminary Land sold, should not have been used for any purpose but that of a permanent endowment of the University. (See Article IX, Section IV, old Con- stitution.) There was also principal of Seminary Land and Public Building Land amounting to $4,470 49 received into the University Fund after April 1st, 1872, which was used by the Controller to pay said deficiencies, and, as we think, used wrongfully. According to the construction placed upon the said Act of 1872, by the authorities of the University, the Controller used more of the interest on bonds held in trust for the University for payment of deficiencies than was allow- able. Whether he did so or not depends upon the proper construc- tion of the said Act of March 2d, 1872, to which reference is respect- fully made. W. B. C. BROWN, Controller, . JOSE G. ESTUDILLO, Treasurer, JO HAMILTON, Attorney-General, WILLIAM MINIS, Surveyor-General. NON-CIRCULATING BOOK 5334 UNIVERSITY OF CALIFORNIA LIBRARY