The University's Deals In Land

Considerable comment has resulted from the alleged plans of the regents of the University of Michigan to erect with university funds a huge apartment house on the west side of Woodward avenue, on which Street the university at present owns 14-1 feet. As sub-divisions of the state generally have no rights to do so, it was thought by some that the university was overstepping its privileges.

The institution now owns property also in New York city and in some of the western States and its recent departure is not its first connection with real estate deals or even litigations where the university's funds were involved.

A deed was filed last Monday showing that an addition had been made to the original Woodward avenue property of the institution comprising 53 feet on Woodward avenue, 195 feet deep, for which the comparatively low sum of $5,000 is to be paid David C. Whittney and Charles Stinchfield.

A lot on the northwest corner of Bates and Larned streets was in 1863 sold by the university to the Detroit Young Men's society for $21,000. They defaulted in the payments and the university brought suit to enforce the contract. The society in defense brought out a claim that the university had no right to hold and rent any real estate for money making purposes.

In the twelfth Michigan reports of supreme court decisions appears the quotation from the state constitution which caused a decision in favor of the university: "The regents of the state university are a body incorporate as a part of the state. (Which is equivalent to a charter.) Those regents have the power to take, hold and convey real estate for any purpose tending to promote the interests of the university and to increase its funds and otherwise further the great public objects for which the institution was corporated and created."

Further decisions were made and the following can be found on page 112 of the compiled laws of the state for 1897, reading: "Under the constitution the state cannot control the actions of the regents. It cannot add to or take away from its property without the consent of the regents.  In making appropriations for its support the legislature may attach any conditions it may deem expedient, and wise and the regents cannot receive the appropriation without complying with the conditions. But when money is appropriated by the state it passes to the regents and becomes the property of the university to be expended under the exclusive directions of the regents and passes beyond the control of the state through its legislative departments."

The university at one time owned the city hall, a young ladies' seminary on Griswold street, and many other valuable pieces of city property.

The funds utilized in real estate speculations are only the bequeathed funds. The moneys resulted from the original United States land donation to the state, its interest to be used for the benefit of the university, are not, however, used in real estate investments. As other real estate disposed of by the university the funds became the sole property of the institution and can be handled at the pleasure of the regents without any restriction. But funds from sales of government land are placed to the credit of the university fund over which the state has the control. Such money is not subject to investment by the board of regents. - Detroit Tribune