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This act re-organized the University and gave it a new charter and provided that the chancellor of the University should be a member of the board of regents and at the same time ex-officio the superintendent of public instruction. Neill was immediately elected by the regents as chancellor and served until he resigned Feb. 25, 1861, to become chaplain of the first Minnesota regiment of volunteers for the Civil War. Mr. Neill was very active and zealous in University affairs during the time he was chancellor but under the circumstances could accomplish but little. It is to be said, however, that he began the agitation to secure for the University its right to benefit by the grant of land made by Congress to a state university when it adopted the enabling act for the admission of Minnesota into the Union as a state. After his con. nection with the University ceased, the regents continued this agitation and the grant was finally made available for the benefit of the University in 1870.

THE INVESTIGATION.

When the legislature of 1859-60 met, the affairs of the University were in such bad condition that a committee was appointed to investigate and report. In their report, although they exonerated the territorial board from all suspicion of dishonest dealings, they censured its carelessness. They pointed out the fact, to which the regents in their annual reports had repeatedly called attention, viz: That the board. was too large for the best business results. Important business had often been delayed or entirely neglected because it was impossible to get a quorum for the transaction of business. They also pointed out the fact that the method of their election was a most pernicious one. A body of men elected directly by the legislature was apt to be so mixed up with politics that the interests of the institution intrusted to their charge were likely to suffer. They also reported that the proceedings of the board had been marked by unnecessary haste and precipitation. In the main this report seems fair and

THE RE-ORGANIZATION OF 1860.

The new charter of February 14, 1860 provided for a board of regents to consist of five electors appointed by the governor and confirmed by the senate. Besides these five members, the governor, the lieutenant governor and the chancellor of the university were to be ex-officis members of the board.

The territorial board had selected 34,799.24 acres of lands which were approved by the Secretary of the Interior. Besides this they had selected 11,280.61 acres which had not been approved when they were superseded by the new board. Of these lands, 14,785 acres were subsequently sold to pay the debts incurred in the purchase of the campus and the erection of the University building.

JOHN S. PILLSBURY APPOINTED.

In November, 1863, John S. Pillsbury was appointed to the board in the place of George F. Batchelder, resigned. This was the beginning of Governor Pillsbury's connection with the University. It was not without great reluctance that he consented to serve as regent; he declined the office when it was first offered to him, and it was only when Governor Swift insisted that no one else could serve the University so well that he consented to accept the place.

This board was authorized and instructed to continue the investigation of the affairs of the territorial board.

It was the opinion of the new board that the affairs of the University up to that time had been conducted in a loose manner. They closed their first report with the following words:

"It would be improper, after the examination of the transactions we have made, to conclude this report without a distinct expression of our belief that there was no design on the part of the territorial regents to injure the cause of learning or aggrandize themselves, but that, blinded by the glare of imaginary riches, so prevalent in 1856 and 1857, they supposed

that the University, like themselves, could never be embarrassed for want of money."

This "state" board was greatly hampered by the belief, on their part, that at least a part of the debt of the territorial university was contracted without proper authority.

They were also in doubt as to whether they had the right (also whether it was advisable) to sell enough of the congressional grant of land to settle that part of the indebtedness which had been unquestionably contracted by authority. During the first two years of their service, they were engaged in investigating the affairs. of the boards which preceded them and in the

any hope that the University would have any land left after having paid all its debts.

SPECIAL BOARD OF 1864.

When Governor Pillsbury became a member of the board of 1860 he took up the task which was before him with characteristic enthusiasm and applied his remarkable business talent to University affairs. He soon discovered that if these old debts of the University were ever to be cleared up and the University placed on a sound. financial basis, the board must have larger powers and be made up of a smaller number so as to get prompt action whenever necessary.

determining of the liabilities of the University; also in devising some method of dealing with the large and rapidly accumulating debt.

The legislature of 1862 authorized this board to make such adjustment of this debt as they considered equitable. The board then made. offers of land at fair prices in exchange for notes or other evidences of indebtedness held against the University. A few accepted this offer but the great majority of the creditors of the University preferred to hold the notes and bonds rather than exchange them for lands. At this time the debt amounted to about $110,000. Very few of the friends of the University had

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This was at the time when the victories of Vicksburg and Gettysburg improved the prospects for an early return of peace, and business conditions began decidedly to improve. In 1864 Governor Pillsbury was representing the University district in the senate and he devoted his main attention to the securing of legislation needed to clear up the distressing situation of the University. After consulting with Judge Berry, the latter drew up a bill covering Governor Pillsbury's views regarding the settlement of the affairs of the University. By the terms. of this bill, which became a law March 4th, 1864, John S. Pillsbury, O. C. Merriman and

John Nicols were appointed a "special board" of regents of the University and were given authority to sell all the land necessary, up to twelve thousand acres, to settle the entire indebtedness of the University. This bill was afterwards modified by a bill approved March 2nd, 1865, increasing the amount of land available for the said purpose by authorizing the board to confirm the deeds given by the preceding board for 1193.26 acres of land in settlement of debts owed the St. Anthony Water Power company; and, again, by an act approved February 28th, 1866, making the total amount of lands available for this purpose 14,000 acres, exclusive of the lands covered by the act of 1865.

The members appointed to the board, by this act, took up the task which had been set them, with a will. It was found that the holders of many of the bonds issued by the University had secured possession of the same at from fifteen to fifty cents on the dollar, and that it would be possible to buy them up at approximately what had been paid for them by their holders, thus reducing the actual amount required for adjustment.

Dr. Folwell, in his History of Minnesota, speaks of this matter as follows:

"This board was authorized to sell land to the amount of twelve thousand acres and use the proceeds in 'extricating' the institution. Taking advantage of a time of general liquidation and scaling down, they bought in claims of many creditors at thirty-three per cent. of their face. The bondholders, satisfied at length that they had no recourse upon the state, moderated their demands and consented to 'equitable terms' of adjustment. In this way a 'great state' redeemed the bonds it had authorized by law, and canceled a body of debts pronounced by the regents of 1860 to be 'honestly due.'"

ADJUSTING CLAIMS.

The first sale of lands undertaken by this board was in Rice county and the proceeds reached a larger figure than had been expected. With the cash received from these sales the regents commenced to purchase, by compromise, the forty thousand dollar issue of bonds secured by mortgage, held principally in New York City. The fifteen thousand dollar bonds secured by

mortgage on the University campus and building, were redeemed at their face value with seven per cent interest, the holders of these bonds being the original purchasers of the same.

The most difficult matter to arrange was the claim of Paul R. George which was in the shape of a mortgage on the original site of the campus, this mortgage being held by the heirs, Mr. George having died several years before. The claim was finally settled and the whole indebtedness was met by the sale of 15,410.85 acres of land, leaving intact the campus, the buildings and 30,000 acres of land of the original congressional grant.

PREPARATORY DEPARTMENT OPENED.

For ten years the building stood gloomy and deserted. The rough wall on the east end gave it a decidedly barn-like appearance. It was a sorry monument to mistaken judgment. The doors were off their hinges and the cattle which used to pasture on the campus those days, sometimes sought the basement for protection from the winter's storms. Such was its condition when the legislature of 1867 voted fifteen thousand dollars, the first appropriation ever made for the University, for the purpose of repairing the building, and purchasing furniture and beginning a course of instruction. The state of the building can be judged from the fact that it cost about six thousand dollars to put the same in a fair state of repair.

On October 7th, 1867, a preparatory department was opened under the direction of the

faculty consisting of the following named gentlemen: W. W. Washburn, principal and instructor in Greek; Gabriel Campbell, instructor in Latin and German; Ira Moore, instructor in mathematics and the English branches.

The question of coeducation in the University was settled for all time by the admission of young women without question to the preparatory department.

FINAL REPORT OF BOARD OF THREE.

When this board made its final report, December 23rd, 1867, there were out-standing debts amounting to about $5,750 and they also had 2,890 acres of land still unsold to pay this

indebtedness. Governor Pillsbury felt that the time had come when a re-organization of the University might be effected and real university work be begun. At this time he was a member of the senate, representing the University district, and it was through his good offices that the land grant of 1862 for the encouragement of agricultural education (about 92,000 acres) which had been made over to the agricultural college established at Glencoe, was given to the University upon the condition that the University establish an agricultural college and a college of mechanic arts. This, however, was not accomplished without some strenuous exertion on the part of Governor Pillsbury and other friends of the University. The representations which these friends of the University made, ar

This provision was included in an act of the legislature approved February 18th, 1868, providing for a complete re-organization of the University and the appointment of a board of regents. This is the act from which the University dates its actual beginning and forms the "charter" under which the University exists today.

The preparatory department was continued and in the following year Edward Hadley Twining was elected instructor in natural science and A. J. Richardson in English. The attendance during the year beginning 1867 reached 72, of which number 16 were young women. The enrollment for the year beginning 1868 was 108, 38 of this number being young

women.

guing for one strong central institution rather than two independent institutions which must necessarily be less adequately supported, won the day and the opposition in the senate dwindled to absolutely nothing and when the vote was finally taken there were but four votes against the proposition in the house. It is hard to overestimate the importance of this act coming at the time it did. It settled for all time the prin ciple that the University of the state of Minnesota should include all work of collegiate grade supported by the state. Under this beneficent principle the University has made marvelous progress and the state has been saved immense sums of money which otherwise would have been required to support two or more independent institutions.

EXPERIMENTAL FARM PURCHASED.

One of the first acts of the newly selected board was the purchase of an experimental farm of 120 acres near the University campus for $7,828.13.

In the re-organization of 1868 the legislature had authorized the regents to purchase an experimental farm in accordance with the terms of the land grant of congress of 1862. $8,500 was set aside for this purpose. In looking about for a farm it was thought that certain lands near the campus would serve the purposes. Governor Pillsbury had already entered into negotiations for the purchase of this tract of land for himself and had made the arrangements at the time when there was a great depression in real estate values, the land having been sold under foreclosure proceedings. He immediately