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SMITHSONIAN INSTITUTION 1341

During the year one-half of our holdings in the Iowa Apartment House Company, received originally under the Walcott bequest, was called for redemption, on which we realized $33,300, leaving 324 shares still in the portfolio. Careful investigation indicated the desirability of continuing these holdings until final settlement as it appears that the shares in question are worth a substantial sum over par. 

The publishing company known as The Series Publishers, Inc., organized under contract with the Institution to handle sale of the 12-volume series of books known as the Smithsonian Scientific Series from which we receive 10% of the gross sales, has been reported in previous years as in financial difficulties. On January 1, 1951 this firm owed us a series of notes totaling $26,302.06, which was paid during the year with interest amounting to $981.88, or a total of $27,283.94. Royalties reported from sales for the past year amounted to $24,524.82 for which they have given short term notes, this being the present amount of their indebtedness to us. Payments made in 1950 amounted to $18,507.25, so that the amount received this year shows a considerable increase. The future of the company is uncertain but so long as they are decreasing the total of their indebtedness it seems best to carry them. 

The Secretary through care in operations has now accumulated a cash surplus of approximately $95,000 to serve as a reserve should there be any unforeseen decrease in income. The investment from the cash account of the Institution in United States Treasury Certificates of Indebtedness is still maintained at $600,000 which gives an appreciable amount of funds for general use from monies that would otherwise lie idle in the Treasury. 

If it is the will of the Board of Regents, I will be pleased to continue in my present capacity in taking the responsibility of passing on recommendations regarding our investments made by Scudder, Stevens and Clark. I wish to point out to the Board that 

A.W.