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SMITHSONIAN INSTITUTION 1340

and Clark as investment counsel, an arrangement that has been continued for the present year with the approval of the Executive Committee. Recommendations from this firm relative to the endowment portfolio of the Institution come to me as Chairman with copies to the Secretary of the Institution. The recommendations are checked against information available in the Trust Department of the Riggs National Bank under my direction, and appropriate action then is authorized. We also receive from the investment counsel a quarterly statement as to our investments that we may keep fully informed. Copies of this are on the table representing our current picture as to our investment holdings as of December 31, 1951. 

In addition to the recommendations described, Mr. D. L. Richardson of Scudder, Stevens and Clark who has the direct supervision of our portfolio and maintains contact as necessary with our Treasurer's Office, met personally with the Executive Committee at the meeting on November 15. This allowed full discussion as to current views of the firm on the present securities market with discussion as to the policies that should be maintained. After this review, it was agreed that the percentage of securities as held at present should be maintained. It will be noted that in the portfolio as of December 31, 1951, the inventory of the Freer Fund with a book value of $6,615,759, had a market value of $8,253,390.00 showing an appreciation, therefore, as of that date, of $1,637,631.00. In the Consolidated Fund, with a book value of $2,126,843, the market value was $2,633,185.00 showing an appreciation of $506,341.94. 

There was also reported to the Committee in connection with the sales of securities which have taken place through September 28, 1951, that common stock sales had resulted in a profit or a gain in book value in the Freer Fund of $166,382.00 and in the Consolidated Fund of a gain of $1,931.00 over the book value, making a total gain between the two accounts of $168,313.00. The two funds also show a net reduction in stocks of $205,784.00 through sales. 

A.W.