University of Virginia Library

duPONT COMPANY SECURITIES

Mr. Mears, quoting from a long letter from the State Planters Bank, University fiscal agent,
reported that the Finance Committee had overruled one of the Bank's proposals for sales of certain
stocks and the purchase of bonds as a means of bringing total investments into better balance,
namely, the sale of a portion of the stocks held by the University in the E. I. du Pont de Nemours
Company. After consulting with Messrs. Gray and Talbott, Mr. Mears had directed the Bank to retain
all of the du Pont stocks. The Committee had been moved in part, Mr. Mears said, by a high regard
for du Pont stocks as investment property and confidence in the current favorable outlook for these
stocks, and in part out of courtesy to the du Pont family who donated these securities to the
University. Mr. Mears requested the Board's opinion on (1) the current decision of the Finance
Committee and (2) the policy to be followed in regard to du Pont stocks.

After extensive discussion the Board adopted the following resolution

RESOLVED by the Board of Visitors of The Rector and Visitors of the University of Virginia
that the recent decision of the Finance Committee of the Board to retain all the University's present
holdings of securities of the E. I. du Pont de Nemours Company be and it is hereby approved

RESOLVED further that the foregoing resolution of approval of a specific action shall carry for
future policy no implication of a special sentimental attachment for du Pont stocks, which now constitute
18 per cent of the total value of the University's common stocks, that, in the absence of
special stipulations by a donor, all stocks shall be considered purely on the basis of their soundness
and value to the University as investment property, with due regard for diversification in accordance
with prudent investment policy.