SECRETARY'S OFFICE,

IOWA AGRICULTURAL COLLEGE.

Ames, Ia., Jan. 25, 1890.

HALLIDAY & FINCH, Ithaca, N. Y.

DEAR SIRS.-In answer to your favor of 9th inst., would say:

First-The Supreme Court of Iowa has decided that since the State would be called upon to pay taxes on the land derived under the Congressional Act, said lands are non-taxable even when leased with the right of purchase. No other decisions bearing on the law.

Second-All of the fund goes to the Iowa State Agricultural College.

Third-The College has always been able to realize more than five per cent. on its investment. Congress passed a special Act by which Iowa is allowed to invest the fund in farm mortgages.

Fourth-In the loaning of the endowment fund, the State pays the salary and expenses of the agent. (See Sec. 6 page 8 of pamphlet.) Under the expense clause, the Auditor of State has so far allowed and paid all of the expenses of the office, including exchange, recording of mortgages and releases, foreclosure of mortgages, etc.

The State appropriates $1,000 annually for the repair of buildings and for necessary expenses incurred in the management of College Lands. (See Sec. 1, Chapter 67 on page 13 of pamphlet). You will notice that the law in relation to the management of the land department found on page 9 of pamphlet, does not provide for the payment of salary of land agent.

The Board of Trustees allows the agent to charge the leasee fees as follows: $14 for making lease; $1 per annum for collecting rental; and $2 for procuring patent. This method is recognized by all as in conflict with the law, but it seems necessary since the State has made no provision for meeting its obligation in this case. In enacting a new law, the Legislature would probably provide for the payment of salary of land agent from the General State Fund, as it has done in the case of the financial agent who negotiates loans. All expenses of the land department other than salary of agent, are paid from the $1,000 annual appropriation mentioned above.

Fifth-The enclosed statement marked Exhibit "A" will show you how the funds of the College are invested.

Sixth-No sir.

Seventh-The endowment of the College as shown in Exhibit "A" is $649,396. 16. This fund has been derived from the following sources :

From the Congressional land grant, From transfer and investment of interest fund, .

$582,716 65

66,679 51

$649,396 16

I send you pamphlet containing laws relating to the management of the endowment fund. As soon as our bi-ennial report is issued,-which will be in a few days-I will send you copy. It will give full statement in regard to all of the College Funds.

When the suit you mention is decided we shall be pleased to be informed as to the result.

Very truly yours,

E. W. STANTON, Secretary.

EXHIBIT A.

The following statement shows the condition of the lands and funds which constitute the endowment of the College :

The lands and funds yielding income are as follows:

HALLIDAY & FINCH, 22 East State Street, Ithaca, N. Y.

GENTLEMEN.-Your circular letter of Sept. 12, 1889, directed to our State Treasurer, has been placed in my hands for answer. I will endeavor to answer each proposition or interrogatory by itself.

As to the First-I answer no.

Second-Our State University.

Third-Our fund draws interest at 4%, 5 and 7 per cent., aggregating over 5 per cent., consequently the question of making up deficiency not raised.

Fourth-All expenses paid out of State Revenue

Fund.

Fifth-Lands sold on 30 years time, contracts drawing 7 per cent. and 5 per cent., also some Minnesota State Bonds, drawing 41⁄2 per cent.

Sixth-No.

Seventh-$526,837.96.

Lands not all sold.

Yours truly,

W. W. BRADEN,

Auditor.

DELAWARE COLLEGE.

Beautiful and Healthful Location.

Five Full Courses of Study.--Classical, Latin-Scientific, Scientific, Engineering and Agricultural.

DR. A. N. RAUB, President.

Newark, Del., Feb. 10, 1890.

MESSRS. HALLIDAY & FINCH.

DEAR SIRS.-The enclosed circular has finally drifted into my hands. I will answer, as far as possible, the questions in the order given.

First-I think there has been no judicial construction of the Act in this State.

Second-Delaware College.

Third-The State pays the College 6 per cent., as the money received for the Land Scrip is invested in 6 per cent State bonds.