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SMITHSONIAN INSTITUTION

annum. The growth of these two funds was illustrated by graphs prepared by Scudder, Stevens & Clark.
 
The representatives of Scudder, Stevens & Clark also discussed in some detail the long-term performance of the securities in both the major funds previously mentioned. They analyzed the distribution of common stocks by industry groups as of September 1957, 1960, and 1963. It was pointed out that petroleum and business equipment have continued to represent the largest industrial groups, but are less substantial than in earlier periods. There has been an important increase in holdings in electric utility, automobile manufacturing and banks and a de-emphasis over the same time in mining and gas utilities.

Following this specific discussion of the special funds of the Smithsonian and of the distribution of various classes of securities in these funds the representatives of Scudder, Stevens & Clark turned to a presentation of general economic matters which, in their opinion, might influence the investment policy, especially in 1964, and to some extent in 1965. They indicated their belief in the continued rise of the gross national product and of industrial production at least through 1964.

The Secretary was asked to present a report on the Robert Lee Forrest bequest while the representatives of Scudder, Stevens & Clark were still in attendance. He made the following statement:

The Third and Final Administration Account has been filed by the Mercantile Safe Deposit and Trust Company of Baltimore, Maryland, as Executors of the will of Robert Lee Forrest. The Smithsonian Institution was named in the will as the residuary legatee.

The following is the listing of the distribution made to and received by the Smithsonian Institution:

Cash (check recd July 19, 1963) $ 400,000.00
Cash (check recd July 23, 1963)   500,000.00
Cash (check recd Nov. 9, 1963)    201,416.19
Cash (check recd Nov. 19, 1963)  269,205.00*
Total cash received  $ 1,370,621.19

5,498 shares the Borden Company Common Stock. Fair Market value on date of our receipt (Aug. 5, 1963) 347,748.50
Total value of cash and stock received $1,718,369.69

*This check in the amount of $269,205.00 represents the distribution of cash in the liquidation of the John G. Grau Company, the assets of which were a part of the bequest. Also included in the assets of this company are three parcels of real properties, the deeds to which were recorded in the name of the Smithsonian Institution on November 29, 1963. The properties are:

JAVA FARM: The following information on this

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