Untitled - eCommons@Cornell - Cornell University

FOUNDATION AND GOVERNMENT 7
of said institution, and not hold it subject to the restrictions which
the Act of Congress places upon the funds derived from the sale of
college land scrip, or as a donation from the Government of the United
States, but as a donation from Ezra Cornell to the Cornell Univer
sity."
The State made an agreement with Mr. Cornell on August 4,
^
1866, in which his stipulation was accepted. The sixth paragraph
of the agreement distinguishes clearly between the College Land
Scrip Fund, the receipts from the State's sale of the scrip, and the
Cornell Endowment Fund, which was to be constituted of the pro
fits made by Mr. Cornell from selling the lands and of his other gifts
to the University.
Mr. Cornell purchased scrip representing 913,920 acres. He sold
scrip for 381,920 acres at prices ranging from 85 cents to $1 an acre,
receiving therefor $3 5 7 , 748.6 1 . With
the remaining scrip for 53 2 ,000
acres he located about 511,000 acres, mostly in Wisconsin. Of the
land thus located he sold about 111,000 acres for $470,364.88. He
held the remainder till October, 1874, when a new agreement was
made, with the consent of the proper State officers, under which Cor
nell University was "to take the place and assume the duties and
obligations of Ezra Cornell, in his contracts with the State of Novem
ber, 1865, and August, 1866, accepting from him a conveyance of his
entire interest, and of all his rights under such contracts, and of all
the lands located by him with college scrip, and paying at once in
cash to the Comptroller the full amount of Cornell's bonds to the
State, principal and interest, and henceforward assuming the burden
lands."
and sale of such
of the care, management,
The University
thus took the place of Ezra Cornell in his contract with the State;
but the Legislature by an act passed May 18, 1880, directed the
Comptroller, upon the request of Cornell University, to transfer to
the University "all money, security, stocks, bonds and contracts
constituting a part of or relating to the fund known as the Cornell
Endowment Fund, now held by the State for the use of said Univer
sity,"
and a short time thereafter that transfer was made. From the
lands handed over by Mr. Cornell, about 400,000 acres, the Board of
Trustees have realized a net return of about $4,000,000.
The Cornell Endowment Fund, including Mr. Cornell's direct
gift of a half million dollars, amounts to $5,381,925. The absolute
ownership by the University of that fund was, on May 19, 1890, es
tablished by a decision of the Supreme Court of the United States
a similar decision of the New York Court of Appeals.
affirming
The College Land Scrip Fund amounts to $688,576.12. By
Chapter 78 of the Laws of 1895 it was turned into the treasury of the
State and a certificate of indebtedness for an interest thereupon of
five per cent per annum was issued to the University by the State.
On June 30, 1925, the University's productive funds amounted to
approximately $20,000,000. The estimated value of its lands, build
ings,
and equipment was $9,000,000. Its income applicable to cur
rent expenses for the fiscal year 1924-25 was $6,186,617.84.