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SMITHSONIAN INSTITUTION     1315

After discussion, the Secretary was authorized, with proper legal advice, (1) to renegotiate the present contract with The Series Publishers, Inc., at a flat rate of 5% of the gross sales on all editions, instead of the 10% return on the more important ones and 5% on the cheaper one as at present, this to be effective as of January 1, 150; (2) to take the note of The Series Publishers, Inc. for the $24,118.61 still due under the old contract with interest at 3%, the principal to be paid as soon as practible; (3) and to write in the new contract a clause that will terminate the agreement within three years, if possible.

DISCUSSION OF INVESTMENT PORTFOLIO AND PRESENT MARKET TRENDS

Mr. Richardson presented statements relative to the views of Scudder, Stevens and Clark, investment counsel, as to the present situation in the stock market, with a summary of recent changes in the Smithsonian portfolio, which have brought considerable capital increase. Further details relative to these matters were furnished by the Chairman, and there was a full general discussion of the present status of Smithsonian investments, with the expression that both the Freer and the Consolidated Funds were in definitely favorable condition. As of June 30, 1950, the Freer Fund shows as appreciation over our book cost of $891,561.65, and the Consolidated Fund an appreciation over our book cost of $202,513.35. The portfolio was fully reviewed, and the Committee approved fully the policy that has been followed by the Chairman, and various actions that he has taken relative to Smithsonian investments.

ADJOURNMENT

The meeting adjourned at 10:05 p.m.

A. Wetmore,
Secretary


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