Los Angeles herald., 1891-03-06
THE UNIVERSITY.
vICE-PRESIDENT MATTHEW'S FUR
NISHES A STATEMENT.
tion-WhatI 1t Needs and WhatIt Ought
to Have.

DIR. w. s. Matthews, vice-president of
the University of Southern California,
has prepared the following statement of
that institutions financial condition:
In your reference to the services at
Fort-street church last Sunday morning,
as contained in your issue of the I'd,
there are one or two statements of so
incomplete nature as to mislead the
ordinary reader. The work of the uni
yersity is of such public interest that /
trust you will allow me space for more
complete statement than was possible
in the brief time allowed for my address
on Sunday morning, or in your brief
and kindly editorial note.
The University of Southern California
has endowment in money and lands
amounting to $500, 900; it has six good
college and seminary buildings, worth
with their grounds at least $3.50, 900. On
these there is no debt; by the terms of
the charter no mortgage or lien of any
kind can ever lie against any of the en-
dowment lands, or against any of it's
buildings. Any debt incurred must be
secured by the board of directors per-
sonally, or by lien upon property of
the institution not part of the endow-
ment fund. Thus it will appear that
the university has property aggregating
$3.50, 900, all unincumbered.
| But now must follow statment OF
| facts that are embarrassing to our pres
ent work The university has debts in
the aggregate of $50 900; this is secured,
$11 900 of it by certain properties used
as collateral, SIC, 1000 of it by the notes
of the individual members of the board
of directors; there are unsecured bills
and accounts amounting to $500; the
remainder is of unpaid bills and salary
account at San Fernando and Ontario
small in each case. AS an offset to this
$50, 900 of debt the university has inter-
est due and unpaid aggregating $40, 900 !;
! if we could collect this, we could dis
charge all our obligations and put by
$4,000 for future enlargement of our
educational work.
But, as everybody in Southern Cali
fornia knows, interest on deferred pay
ments is not at the present time gener-
ally collectable. Ii the University of
force the collection of interest by law,
it would simply do two things. neither
of which it desires to do: First-It
would get back lands already sold, OF
lands held by mortgage for money
loaned. Second-It would make enc
mics of scores of people who are now
it's friends. The institution does not
want lands; it does not want enemies
So its declared policy is to wait on those
who owe it interest until their financial
condition shall enable them to pay.
1t is this condition of affairs which
caused me to say in my address last
Sunday that, unless the friends of the
university shall rally to its support, il
is inevitable that it must close its doors
If we can raise this year $4,000 al
contemplated, it will enable the univer
sity to meet all present liabilities ant
thus tide over the immediate emergency
The balance of indebtedness can stant
until the accumulation of interest shall
enable the directors to take up all out
standing notes. This, gradual AM
general improvement of the country a
, large must, from the nature of the case
soon bring about.
We have already raised in cash an,
subscriptions $4,000. Surely, the friend
of this Institution will not allow us t
D fail of reaching the $4,000 necessary t
: carry us through the present emergency
, Surely, an institution which has don
SO much for higher education in Soutf
ern California will not now be permitte
to fail. 5