Viewing page 178 of 520

This transcription has been completed. Contact us with corrections.

SMITHSONIAN INSTITUTION   1368

the company at present is solvent, some change in economic conditions might place it in difficulty. The Secretary while in California on other business in July last visited the ranch to discuss our holdings with the principal stockholders. Through this an understanding was reached under which, with the approval of the Executive Committee, an agreement was drawn with the two other principal stockholders whereby these two have purchased 115 shares of the Smithsonian stock at $45, yielding $5,175.00, with a five-year option to buy further blocks of stock at a price to increase one dollar per share annually. The Institution thus, finally has received a small sum ($5,175.00) with which to set up the E. W. Nelson Fund, the income to be used to promote the study of birds and mammals of the Americas. Unless unforeseen difficulties arise, it is believed that the Smithsonian may realize substantially on its entire holdings. 

An investment from the cash account of the Institution in U. S. Treasury certificates of Indebtedness is still maintained at $600,000 which gives an appreciable amount of funds for general use of 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 I do not consider myself infallible. 

Respectfully submitted,

/s/ Robert V. Fleming
Robert V. Fleming, Chairman

There was discussion of the Smithsonian holdings in the Ontario Apartment House (of which the interest of the Institution comprises 761 of the total 3603 shares of stock, an option of $900,000 and an appraisal value of $650,000), the following motion regarding the sale of this stock received unanimous approval: