loan for the Union Oil Stock and $100,000 cash. The stock was worth $88,000 then. The commit tee bargained some more. The bank came down to $50,000 cash and the stock. The committee talked it over and then went back to the bargaining table. Money was tight and the bank knew the school's plight. "The stock and $25,000 cash — if you will stop bargaining," said the bank official. "If this bargaining goes on," there was a trace of a smile on his face, "you fellows will be coming down here and offering us a five dollar bill." The committee agreed on the latest terms. There was just one hitch in the deal: the school did not have a cent of cash on hand to pay the $25,000. But to Talbot this was not as much of a hitch as it was a chal lenge. He went before his friends at a meeting at the Church of the Open Door and candidly detailed the need for $25,000. The depres sion was still on but at that meet ing church members and radio friends of the school dug deep and came up with $13,000. Talbot took to the radio and in a short time had the additional 12,000. The Institute's board could report on July 8, 1938 that the account with the Farmers and Merchants Bank was closed. Now the biggest debt owed was $548,689.14 to the Lyman Stewart Trust Fund, admin istered by his widow. When the question of this huge debt came up for discussion in August 1938, Mrs. Stewart graciously made full provision to lift this load. As soon as the obligation to the Farmers and Merchants Bank had been cleared and the financial af-
The full-time faculty was slashed to eight. Many months from 1930 through 1940 the business office was unable to meet the payroll. The school's printing press was sold to the Stationers' Corporation. The 13-story north wing of the In stitute building was leased to the Willard Hotel Company. At one period the Salvation Army even discussed with the board the pos sibility of buying the buildings. In December 1932, the school could not even pay its taxes. Negotiations were begun with the Security First National Bank which already held staggering claims against the school. Officials at Security First National were sympathetic to the plight of the school and agreed to advance the money to meet the real property tax bill. In November 1932 in the midst of this financial nightmare, Dr. Louis T. Talbot became acting president. At the time, he was pastor of the Church of the Open Door and a popular radio minis ter. The next year he was made president of the Institute but re signed in 1935 due to pressures of his church and radio work. Then in 1938 he came back as president and it was in that year that hope for the school's survival began to brighten. Farmers and Merchants Bank held a second mortgage against the school for $274,000. They also held the school's 4,000 shares of Union Oil stock as collateral on the loan. At Talbot's request, a committee, including R. B. Robin son, and Ray Myers, was formed to deal with the situation. To stall off foreclosure, the committee started bargaining with the bank. The bank agreed to settle the
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