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SMITHSONIAN INSTITUTION 

report aloud. 

The report is as follows:

REPORT OF THE CHAIRMAN OF THE EXECUTIVE COMMITTEE OF THE BOARD OF REGENTS OF THE SMITHSONIAN INSTITUTION AT THE ANNUAL MEETING OF THE REGENTS, JANUARY 23, 1964

The Report of the Secretary of the Smithsonian Institution for the fiscal year ending June 30, 1963 has been in your hands for some days. This report, as is customary, includes a record of the actions of the Executive Committee during the period covered. The operations of the Smithsonian Institution, including the financial transactions of the Institution and the records of the state of the investments and income from the private funds of the Institution from July 1, 1962 to June 30, 1963, are presented in this report.

As has been customary it is now my privilege to review some matters that may be considered as supplemental to this report, and also to comment on activities that have taken place during the first part of the present fiscal year, that is, from July 1 to December 31, 1963.

May I first express my appreciation to the other members of the Executive Committee for working with me in such an effective way during the year on the problems of the Smithsonian Institution. The members of the Committee have considered with me the detailed actions that must be taken in connection with the management of the investments of the Smithsonian. During the year I have been in constant touch with the Secretary and with the Treasurer of the Smithsonian in regard to details of the management of the Investment Portfolio of the Institution. In addition, it is necessary that there be a good deal of official correspondence, as well as personal conferences, with the Secretary, not only with respect to the Portfolio but with regard to problems and business of the Institution. 

A formal meeting of the Executive Committee was held on December 11, 1963. At the invitation of the Chancellor this meeting was conducted in the Chambers of the Chief Justice. Mr. George S. Johnston and Mr. James F. Lawrence, partners in the firm Scudder, Stevens & Clark, the investment counselors of the Smithsonian Institution were present during the first part of this meeting to discuss with the members of the Committee the present state of the investment portfolio of the Smithsonian Institution and general financial considerations that are likely to affect the investment policy of the Institution during the coming year. 

The representative of Scudder, Stevens & Clark presented a report dealing with the funds of the Smithsonian Institution. They first discussed the long-term performance of the Freer and Consolidated Funds from 1945 to September 30, 1963. They pointed out that during the years indicated the value of the Freer Fund has increased from $6.2 million to $15.9 million, and the annual income has risen from a rate of $213,000 to $496,000. It was noted that during this period there have been no additions of new capital from the outside or withdrawals of capital from the Freer Fund. They also discussed the Consolidated Fund for the same period of time. The adjusted capital value of this fund has risen during these same years from $1.5 million to $4.2 million. Income has risen from a $50,000 annual rate to $215,000 per