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SMITHSONIAN INSTITUTION 1570 Freer March 30 - $15,819,622 May 14 - $14,728,243 Decline of $1,091,379 Consolidated March 30 - $5,354,251 May 14 - $4,908,113 Decline of $446,138 Younger March 30 - $150,920 May 14 - $142,253 Decline of $8,667 However, taking the book value, Dr. Fleming stated there was still an appreciation of book value of $4,644,904, and there were still substantial profits. He felt the declines were from the so-called profit squeeze, some foreign selling and profit taking by mutual funds. All the indicators to date indicated that business had improved over the comparative period a year ago. He read from a current publication. Inventories would probably not rise as much because with automation there is not so much overbuying and there is overproduction. Dr. Fleming said that completed the formal part of his report, and he wished to mention two other matters that came up at the annual meeting at which he could not be present. Dr. Fleming spoke of his understanding that the question of the sale of part of the Smithsonian's IBM stock had been considered. Originally, in 1942, at the recommendation of the investment counsel, 500 shares of IBM stock were purchased in the Freer Fund at a cost of $75,025. No additional cash has been placed in these shares except the nominal amounts needed to round out fractional shares received through stock splits or stock dividends. During the years, through stock splits and stock dividends the number of shares increased to 7,503. Of these, 3,503 shares were sold and 4,000 shares remain in the portfolio of the Institution. The total amount realized from the sales of this IBM stock was $1,783,990. The value of the 4,000 shares IBM retained (at 457 per share) is $1,828,000. The total proceeds of sales plus value of present holdings is $3,611,990. This sum less the cost of the original purchase reflects an overall gain and appreciation from IBM investment
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