Viewing page 7 of 119

This transcription has been completed. Contact us with corrections.

-iii-

equivalents. The fund underperformed the S&P 500 and the DJIA averages for the June quarter given its weighing in fixed income, convertible bonds, and cash. This conservative stance, however, is in line with that taken by other non-profit organizations.

[[underlined]] THE SECRETARY'S REPORT [[/underlined]]

Mr. Adams mentioned a variety of Smithsonian developments which had not been represented in the agenda papers distributed in advance of this meeting. He noted that the Institution had closed on the purchase of the Fox House, a townhouse apartment building adjoining the Miller House of the Cooper-Hewitt Museum for a total price of $3,727,000. Renovation of interior spaces will be undertaken as the apartments are vacated.

The Secretary noted that the payback from [[underlined]] Air & Space [[/underlined]] will take longer than expected because of the magazine's inability to increase the subscription base without a larger than prudent investment. The editorial content of the magazine was also discussed. The Secretary concluded discussion by noting that he must hold additional talks with Museum Director Martin Harwit and Publisher Joe Bonsignore before he can report further on these matters.

Mr. Adams described efforts at planning a Corporate Associate Program through which unrestricted funds would be realized through annual "dues" of $25,000 and $10,000 from corporations taking membership in the program. Work is currently under way on drafting a statement for the need for such funding, as well as the benefits of membership, two aspects of the program which the Regents felt needed particular attention. The Regents expressed their full endorsement of the Corporate Associate Program initiative and support for the Secretary's appeal for leadership from the nation's top corporate chief executive officers.

The Secretary noted that several influential members of Congress have strongly recommended that the Smithsonian consider imposing admission fees for visitors, consistent with the practice at national parks and elsewhere. He added that the Smithsonian was poised to conduct an experiment in soliciting voluntary donations in selected museums to determine the extent to which the visiting public would be willing to contribute. In discussion, it was the strong sense of the Regents that neither the Congress nor the public would tolerate either the solicitation of contributions or the imposition of general admission fees, and the matter ought to be dropped.

Mr. Adams informed the Regents that he had appointed Alice Green Burnette to the new position of Assistant Secretary for Institutional Initiatives. He described the range of her new set of responsibilities.

Mr. Adams reported that the staff has offered residents at the Smithsonian Environmental Research Center (SERC) a variety of alternatives to their present arrangements, including life estates, and has attempted to negotiate with them on terms of their choosing. He expressed appreciation for the willingness of Rep. Cardiss Collins' staff to help in bringing this matter to closure. In ensuing discussion, it was questioned whether the Smithsonian would have any interest in affiliating with the Johns Hopkins University research center at the Chesapeake Bay, and it was noted that the Smithsonian's research program was fundamentally different in terms of its orientation and goals.