University of Virginia Library

The Committee appointed by the Rector to investigate and report on the proposal of Mrs. Florence
K. Sloane that there be an arrangement made between the Hermitage Foundation and the University of Virginia,
whereby the latter would direct and carry on the work of the Foundation after Mrs. Sloane's death, respectfully
reports as follows:

The Hermitage Foundation is a charitable corporation organized in 1937 under the laws of the
State of Virginia.

It is the owner by deed from Mr. and Mrs. William Sloane of a tract of land of seven acres located
in Lochhaven, an extremely desirable residential section of the City of Norfolk. The property is in
the form of a peninsula jutting out into the Lafayette River. There are three buildings, in the English
Tudor Style, the major one being partially occupied as the home of Mrs. Sloane.

This house has fourteen galleries filled with many rare paintings and objects of art, with
special emphasis on Eastern art. This is the lifetime collection of Mr. and Mrs. Sloane and it has been
transferred to the Foundation.

A copy of a newspaper clipping giving a more detailed description of the property and containing
pictures of the house and of some of the objects of art is attached hereto.

At the present time the building or museum is open from Tuesday through Saturday from 1:00 to
5:00 p.m., and on Sunday from 2:00 to 6:00 p.m. In addition a series of art lessons for both children and
adults is conducted in another building.

The Committee has received the general impression that the facilities of the museum were not
being very widely used, perhaps due to the rather remote location, and possibly also to the manner in
which it has been conducted.

The Foundation is now being financed by the income from an irrevocable trust created by Mrs.
Sloane. The trustee, The Guaranty Trust Company, now holds the principal sum of approximately $270,000;
the income from this fund for the last five years has been as follows:

Under the terms of the trust nine-tenths of each year's income is available for the support of
the Foundation. The remaining tenth is added to the principal until $100,000 is accumulated when the entire
income becomes payable to the Foundation.

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Under the will of William Sloane, a trust was created of which the present principal amounts
to $250,000. This sum is held in trust for the life of Mrs. Sloane. Under its terms she was given the
power to invade the principal, but she is about to surrender this power. Upon the death of Mrs. Sloane
one-half of the principal is paid to the Foundation and the balance is to be divided into two funds,
each of which is to be held in trust for the life of one of Mrs. Sloane's sons. Upon the death of each
son the principal of his trust is to be paid over to the Foundation.

Mrs. Sloane's will also makes a bequest to The Hermitage Trust, of an amount estimated to be at
least $100,000.00. This will make an aggregate ultimate amount available to the Foundation, directly or
through the trust, of not less than $620,000.00.

The buildings upon The Hermitage property, and owned by The Foundation, are valued at approximately
$225,000.00. The extensive water frontage enhances the value of the land. It is conservatively
estimated by real estate agents to be worth $150,000.00.

The art objects, paintings and the like, which are the property of the museum or Foundation, are
estimated to be worth $200,000.00.

Thus the aggregate involved in value in the proposal made by Mrs. Sloane is at least $1,200,000.

Mrs. Sloane proposes that the University of Virginia have a minority representation on the
Board of Trustees of the Foundation during her lifetime - (she is a woman well over seventy), that the
name of the University be linked with that of the Hermitage Foundation; that the University, through its
representatives on the Board, contribute advice and assistance in the conduct of the museum and school.
She would be willing to agree in advance to a definite program of activities. She would reserve for
herself and her family a portion of the second floor of the museum building for living quarters.

Upon Mrs. Sloane's death she would expect the University to have a majority representation on
the Foundation Board, although she would like to continue to have her family represented thereon for a
period of years.

Mrs. Sloane's proposal contemplates that the present plans of the Foundation be carried out
in general by the maintenance of the museum and art classes in Norfolk. If it should appear subsequently
that public interest in these activities has ceased, or if the site should become undesirable, Mrs. Sloane
would be willing for the activities of the Foundation to be transferred to Charlottesville to a suitable
fireproof, air conditioned building which could be erected, we believe, with the proceeds of the real
estate in Norfolk. She expresses a desire to have the building in Charlottesville patterned as closely
as possible on the present building in order that the beautiful panelling, part of which was imported
from Europe, may be reinstalled and the paintings appropriately reestablished. The committee doubts that
the English Tudor style of house, in which style the museum is constructed, would harmonize with the
architecture at the University. However, while the point has not been discussed with Mrs. Sloane, we do
not believe that she would insist on the building being reconstructed exactly as it now is if the activities
were transferred to Charlottesville.

The Committee does not believe it wise to approach the matter with any idea of transferring these
activities from Norfolk because extremely unfavorable political implications might arise from any report
that such a step were contemplated. However, it can do no harm to have in the agreement with the Foundation
a saving provision to the effect that the property could be sold and activities removed.

It is the view of the Committee that the proposal of Mrs. Sloane is an attractive one, involving
as it does in itself little or no increased financial obligation.

However, the Committee considers that it would be an anomalous situation for the University to
undertake what might be described as an extension or branch in the fine arts in view of the fact that
there is no present school of painting and sculpture at the University. Indeed, Mrs. Sloane's proposal
is predicated upon the establishment of such a school.

The Committee, therefore respectfully reports that the first decision to be reached is whether
or not the University desires to establish a School of Painting and Sculpture. That decision must, of
course, be made by the Board, after whatever study and investigation it may deem proper.

The matter has some urgency because we are informed that on account of her age Mrs. Sloane desires
to settle as promptly as possible the carrying on of the activities of the museum. In addition,
the letter from her attorney informs us that she has been approached by another large institution of
learning outside of Virginia. She, however, would prefer an affiliation with an institution within the
State.

The Committee spent the better part of a day conferring with Mrs. Sloane and viewing the
property and its contents. In addition the chairman has had four conferences with Mrs. Sloane.