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transfer of all the Museum's assets -- collections, real and personal property, cash, pledges, stocks and bonds, and the like -- to the Smithsonian within 90 days of our receipt of the above appropriation. At the same time, the Agreement provides that the Smithsonian will assume responsibility for the Museum's outstanding liabilities up to a limit of $400,000. (Present liabilities are $185,000, including mortgage liability).

The provision, Article the Fourth, recognizes that the Museum may have difficulty raising funds during the last months prior to transfers of title, and may have to borrow to meet minimum payroll and operating costs. Publicity of the Smithsonian affiliation has made Mr. Robbins' normally difficult task of balancing a small private museum's budget even harder; and if we were to refuse to accept the Museum's liabilities while taking all its assets, the Museum's present Board of Trustees would be left in an untenable position in dealing with creditors.

While the draft Agreement provides for a limitation of $400,000 on such unfunded liabilities, it is anticipated that the actual figure will be somewhat less, depending on the timing of Congressional appropriations and the outcome of pending grant requests the Museum has made. In any event, we presently foresee the possibility of liquidating any such