190 SECOND ANNUAL MEETING. 



in connection with recent events interest has lately been paid. Four 

 dollars credit per acre on 94,573 acres, amounting to $378,292, 

 should have been drawing interest otherwise the income from the 

 Land Fund is diminished at the rate of $37,829 per annum. 



A still more serious evil appears in the fact that the Regents have 

 so framed their regulations that the purchaser is not obliged to pay 

 interest on the credit portion of his purchase-money until his title is 

 obtained. The time intervening between the application and render 

 ing of patent may be extended for years while the land is occupied 

 and cleared of timber. No bonds had been given guarding against 

 such a contingency up to the first day of July last, while on page 

 36 of the Regents Statements we find that 8,840 acres have been 

 forfeited and returned to the Land Fund. 



We have seen from the Regents Statements that $79,709 96 of 

 the Agricultural Land Fund was drawing six per cent, interest in 

 the Bank of California, and $94,573 drawing no interest at all up to 

 the 1st pf July last, as appears from the books. 



In the statements we are informed that &quot;the remainder, $34,- 

 315 51, was temporarily invested in the purchase of four full blocks, 

 with extensive improvements, in the heart of the growing city of 

 Oakland, being the property formerly owned by the College of Cali 

 fornia, and the Brayton estate. This property is subject to a mort 

 gage of $50,000, bearing interest at the rate of nine per cent, per 

 annum,&quot; (and they are loaning nearly twice the amount to the Bank 

 of California at six per cent, at the same time!) &quot; It has cost to date, 

 including $11,386 25 paid as interest on the mortgage, +he sum of 

 $112,476 25, and is valued by the most competent experts at a min 

 imum of $150,000.&quot; This statement is not correct. These four 

 blocks cost the University far more than is here represented. Block 

 No. 1, known as the College Block, cost the University $49,030 04. 

 Other property was received with this block, and turned over to 

 Mrs. Brayton in part payment for blocks Nos. 2 and 3. Blocks Nos. 

 2 and 3 cost $94,315 51, in this manner. The Regents assumed a 

 $50,000 mortgage for Mrs. Brayton, &quot;and transferred to the vendors 

 the outside property, valued at about $30,000, adjoining the Univer 

 sity site at Berkeley, which had been obtained from the College of 

 California. The property (blocks Nos. 2 and 3) was thus obtained 

 without any additional cash expenditure.&quot; On the $50,000 mort 

 gage, $11,386 25 interest was paid by the Regents, and also, $2,- 

 929 51 for some unexplained purpose, amounting to $94,315 51, the 

 entire cost of blocks Nos. 2 and 3. 



The fourth block, vacant, and of no use to the institution, was 

 subsequently purchased of the Brayton estate for the sum of $20,- 

 000. Block No. 1 cost $49,030 04; block Nos. 2 and 3 cost $80,- 

 000; block Nos. 2 and 3 interest on mortgage $11,386 25; item for 

 which no account is given, $2,929 26; block No. 4 cost $20,000. 

 Total cost of four blocks in the heart of the growing city of Oak 

 land,&quot; as shown by the Regents, $163,345 55. 



On the same statements, the following glaring misrepresentation 

 appears with regard to these same blocks: &quot;Since the removal 

 of the University to Berkeley, this property is no longer essential. 

 It is growing in value, however, year by year. Should it be deemed 



