University of Virginia Library

A called meeting of the Board of Visitors was held on this date at 11 o'clock in the office of
the President, with the following present; The Rector R. Gray Williams, and Visitors Lewis C. Williams,
Christopher B. Garnett, James H. Corbitt, Edward C. Anderson, and Dabney S. Lancaster, and President Newcomb.

R. Gray Williams and Christopher B. Garnett, whose terms as Visitors expired on February 29, 1944, having
been reappointed, had qualified as members of the Board.

The election of a Rector of the Board being in order, Mr. Edward C. Anderson was called to the chair and
announced that nominations for the position were in order. Whereupon, Mr. R. Gray Williams was placed in
nomination for the position and, there being no further nominations, the roll was called and he was declared
duly elected to the office, and assumed the chair.

The minutes of the meeting of January 20, 1944, which were copied and mailed to the members, were approved.

The Rector announced to the Board the death of Senator Aubrey G. Weaver, a member of this Board, which
occurred in Richmond, Va., on March 10th, and he was requested to prepare appropriate resolutions and
present them at the next meeting of the Board.

President Newcomb announced the following:

ENROLLMENT TO DATE FOR THE SESSION: 1303.

GIFTS:

             

Cash and securities received from the trustees of the Rucker Estate on February 10, 1944, a total of	$269,960.61
From the General Education Board, toward the support of a program of population and industrial research, for two years beginning July 1, 1944	45,000.00
From the General Education Board, for the salary, $3750, and travel expenses, $250, of a Visiting Professor in Plant Genetics to assist in the development of work at the Blandy Experimental Farm, for the year beginning July 1, 1944	4,000.00
From the General Education Board, for a Workshop on Community Development, for high school principals and representatives of health, recreation and agriculture groups, and for travel expenses connected with this program	1,800.00
From Prof. Alfred Akerman, of the Seward Forest, to be added to his earlier gift of $1,350, for a scholarship in the Department of Engineering	1,350.00
From Mr. Michael S. Kovalenko, three bonds of the International Telephone and Telegraph Company, for the establishment of the JESSIE KOVALENKO FUND in memory of his wife.
From the First National Bank of Greenville, S. C. Trustee, the income from $25,000 to establish a fellowship to be designated the SIDNEY ERNEST BRADSHAW FELLOWSHIP IN ENGLISH.

PROMOTION OF DR. MARTINEZ-GALINDO:

Upon the recommendation of the President, Dr. Martinez-Galindo was promoted from Instructor to
Assistant Professor of Neuro-Surgery at a salary of $3400 to be paid from departmental earnings, effective
January 1, 1944.

HENRY G. BURNETT'S INDEBTEDNESS FOR LOANS FROM STATE STUDENTS LOAN FUND:
AUTHORIZATION REQUESTED OF THE GOVERNOR TO CHARGE SAME OFF.

The President advised the Board that the University held 8 notes of Henry G. Burnett, representing
loans made to him for the sessions of 1925-26, 27 and 28, with an unpaid balance of principal of $528.77;
that said Burnett had died, leaving no estate, and that his co-makers were without funds to meet the
same; that every effort had been made to collect from both maker and co-makers, and requested that action
be taken by the Board to request the Governor for approval to charge them off, whereupon the following
resolution was adopted:

KAPPA SIGMA FRATERNITY-REQUEST FOR SUSPENSION OF PAYMENTS ON LOAN, ETC.

The President presented a letter from Cochran Fisher, District Grand Master, and J. G. Korner,
Jr., Alumnus Adviser, of the Kappa Sigma Fraternity, that due to existing conditions the local chapter of
Kappa Sigma found it impossible to operate McCornick Hall (the Chapter House), with the result that the
Chapter could not meet its obligation to make the required payments on its loan from the University, and
requesting (1) suspension of payments to the University for the duration of the war, or until such time
as the house can produce some revenue; and (2) that the interest rate on the loan be reduced to 4%.

The matter was disposed of in the following motion, adopted:

CHI PHI FRATERNITY-REQUEST FOR SUSPENSION OF PAYMENTS ON LOAN, ETC.

The President presented a letter from Harry Frazier, Jr., representing the Chi Phi Fraternity,
with respect to its loan from the University, payable, principal and interest on the installment plan, the
principal of which is now $10,869.12, requesting that the Chapter be permitted to refinance the loan on
the following terms and conditions:

That no moneys be paid to reduce the principal for a period of three years. If however,
during the first three years moneys would be available the fraternity would have the right to make
payments.

That interest will be paid semi-annually. If, however, it is impractical for the students
to meet these various interest payments that the right will be given them over a three year period to
add the unpaid interest to the last maturing principal amount, provided that they can show that their
income was not sufficient to meet these payments.

It was voted that suspension of principal payments be granted, but not forgiven to March 1, 1945.

PHI KAPPA PSI FRATERNITY REQUEST TO BE ALLOWED TO MAKE A GIFT OF ITS FRATERNITY HOUSE AND LOT TO THE UNIVERSITY:

The President presented a communication from Lt. George G. Shackelford representing the
fraternity, requesting advice as to the policy of the University in regard to accepting as a gift a
fraternity house and lot, giving in return a 99 year lease at a dollar a year, or some such nominal
consideration.

Following consideration of the matter, it was the consensus of opinion of the Board that such
a proposition be declined.

CONTRACTS WITH WAR DEPARTMENT FOR SUPPLEMENTAL AGREEMENTS FOR LEASES FOR BUILDINGS USED BY THE
SCHOOL OF MILITARY GOVERNMENT.

The President presented proposed supplemental agreements with the War Department covering
leases Nos. W-2337-eng-2; W-2337-eng-3, and W-2337-eng 769, and, on motion, it was

CONTRACT WITH THE VIRGINIA PUBLIC SERVICE CO. FOR CURRENT FOR THE UNIVERSITY:

The President stated that the State Engineer was having prepared a new contract with the
Virginia Public Service Co. for furnishing electric current to the State Institutions, and he was
authorized to execute the same on behalf of the University, if found to be satisfactory.

PROPOSAL WITH REFERENCE TO SETTLEMENT OF THE ESTATE OF LUCY JAMES DUN:

One of the purposes of this meeting was to discuss the possibility and propriety of undertaking
to reach some agreement looking toward a settlement of the suit of Safe Deposit and Trust
Company of Baltimore, Executor and Trustee under the Last Will and Testament of Lucy James Dun,
Deceased, v. William James Rucker, and others, now pending on appeal in the Court of Appeals of the
State of Maryland from a decree entered by the Circuit Court of Baltimore County, Maryland, on or
about the 5th day of October, 1943.

The President presented to the meeting a copy of a letter dated February 26, 1944, and
signed by G. C. A. Anderson, of Carman, Anderson, & Barnes, of Baltimore, Attorneys for Ari M.
BeGole, Executor of Francis Dodge Whitall.

George Pausch, of Baltimore, and W. Allan Perkins, of Charlottesville, Executors of the
late William J. Rucker, deceased, together with John S. Battle and C. Venable Minor, both of Charlottesville,
of counsel for said Executors were present by request at this meeting and after presentation
of the letter above referred to by the President, Mr. Pausch and Mr. Perkins submitted the following
statement -

Mrs. Lucy James Dun, of Baltimore, mother of William J. Rucker, of Charlottesville, died
in the year 1941, leaving a will which was admitted to probate in the Orphans Court of Baltimore County,
Maryland, on August 31, 1921.

After making a number of specific and pecuniary bequests the Testatrix gives the residue of
her estate to Safe Deposit and Trust Company of Baltimore IN TRUST to hold, manage and administer
paying the income therefrom to Mrs. Dun's only child, William J. Rucker, so long as he shall live, and
upon his death without child or children, two-thirds of said estate shall pass to those persons who
may be the next of kin of said William J. Rucker according to the laws of Maryland at the time of his
death and the remaining one-third of the principal of said estate is to be held by said Company and
the income therefrom paid to the widow of said William J. Rucker during her lifetime, and at her
death this one-third shall pass to those persons who would be the next of kin of said William J.
Rucker according to the laws of Maryland if he were living at the time of the death of said widow.

Said William J. Rucker died on December 19, 1941, leaving no child or children and no widow.
Upon examination of Mrs. Dun's will it would seem that under these conditions it was her intention
that this one-third of her estate should pass to Mr. Rucker's next of kin under the laws of Maryland.
Mr. Rucker's will was admitted to probate in the Corporation Court of Charlottesville, Virginia, on
the 26th day of December, 1941, and contains the following provisions -

On the 7th of August, 1942, Safe Deposit and Trust Company of Baltimore, Executor and Trustee under
the will of said Lucy James Dun, filed its Petition in the Circuit Court for Baltimore County, Maryland, asking
for construction of Mrs. Dun's will and for guidance in the administration of this one-third of Mrs. Dun's
said estate. The Executors of William J. Rucker and all of those persons who under the           
of Maryland were the "next of kin" of said William J. Rucker at the time of his death and that of his wife
were made parties to said Petition.

Voluminous briefs were filed in this cause and on July 6th and 7th, 1943, it was argued at length
before Judge J. Howard Murray, Judge of the Circuit Court of Baltimore County.

Early in October, 1943, Judge Murray handed down his opinion in whidh he held -

1st. That the life estate created by Mrs. Dun's will for the widow of said William J. Rucker,
with remainder over upon death of such widow is void (since this provision violates the rule against
perpetuities) and that Mrs. Dun died intestate as to said one-third of her said estate.

2nd. That William J. Rucker was an intermediate heir and as such could not appropriate to himself
or devise the fund in controversy and as Lucy J. Iglehart, Jane J. Cook and Francis C. Arrowsmith were the
heirs of Lucy J. Dun in being at the time of the happening of the contingency (described in Mrs. Dun's will)
and the resulting intestacy, the whole of said one-third of said estate passed to them in equal portions.

From this decree four appeals have been taken to the Court of Appeals of Maryland and are now
pending in that Court.

During the past few months there have been several suggestions from one source or another that
the whole question be compromised and some agreement reached by all interested parties whereby the fund
(now approximately $846,000.00) will be divided upon some equitable basis and these appeals dismissed.

Under date of February 8, 1944, Mr. Ari M. BeGole, Executor for Francis Dodge Whitall, one of
Mr. Rucker's first cousins on his father's side, sent the following telegram to George Pausch and W. Allan
Perkins, Executors -

While this was in no sense an offer of compromise but merely a question we gave it serious thought,
discussed the whole subject of compromise with our Attorneys and reached the following conclusions as to the
position of the Executors of William J. Rucker's estate -

(1) That if the Executors of Mr. Rucker's estate have any right at all in this one-third of
Mrs. Dun's estate that right is a purely legal right; that the Executors are either entitled to the whole
of this one-third or not entitled to any part of it; and that this question of right is one to be determined
by the Courts and not by the Executors.

(2) That when Safe Deposit and Trust Company instituted its suit for guidance in the administration
of the Dun Trust it became the duty of Mr. Rucker's Executors to employ counsel so that the rights, if any,
of Mr. Rucker's estate might be presented to the Court. This duty was performed by the Executors.

(3) The Circuit Court of Baltimore County has held that the whole of this fund belongs to Mrs.
Arrowsmith, Mrs. Iglehart and Miss Cook to the exclusion of all other parties in interest. For the Executors
to undertake to propose a compromise to these ladies would be equivalent to our making a request that we be
bought off. The Executors are firmly of opinion that for them to make any such proposal of compromise would
be unethical and highly improper.

If some proposal of compromise is made to the Executors and to the Institutions by the next of kin
there is, of course, no impropriety whatever in our exploring the possibilities of an amicable settlement
and in view of the statements contained in Mr. Anderson's letter of February 26, 1944, addressed to the
three Institutions which are the residuary legatees under Mr. Rucker's will, it would seem that serious consideration
should be given by this Board and the Boards of the other interested Institutions to the possibility
of and adjustment of these several conflicting claims.

The Court of Appeals of Maryland may adopt any one of the following three courses -

1. It may affirm Judge Murray's opinion in toto, thus giving the whole estate to the three ladies
in Baltimore;

2. It may reverse Judge Murray upon the question of the application of the rule against perpetuities
and may hold that Mrs. Dun's will is a valid will and that this one-third passes to those persons who were
William J. Rucker's next of kin under the laws of Maryland at the date of his death, December 19, 1941. This
would result in awarding the estate to Mr. Rucker's five first cousins living at the date of his death, namely,
Mrs. Arrowsmith, Mrs. Iglehart, Miss Cook, Captain Louise S. D. Rucker, and Francis Dodge Whitall.

3. The Court may affirm that portion of Judge Murray's opinion which declares Mrs. Dun intestate
as to this one-third of her estate and then instead of holding that the estate passes only to the three ladies
in Baltimore may hold that it passes to the estate of William J. Rucker.

It is only in this last-named event that the residuary legatees under Mr. Rucker's will can have
any possible interest in the fund and if the Maryland Court should take this view of the case and hold that
this one-third of Mrs. Dun's estate passes into the estate of William J. Rucker, Mr. Rucker's Estacutors will
have to institute a proceeding in the Corporation Court of Charlottesville for the construction of Mr. Rucker's
will and for guidance in their administration of the fund, and, in view of the provisions of Mr. Rucker's
will heretofore referred to it may be held in that proceeding either

(1) That Mr. Rucker was intestate as to this fund and that it therefore passes to his next of kin
under the laws of Virginia; or,

(2) That the residuary clause of his will is broad enough to cover this fund and that the fund
passes to the three institutions named as residuary legatees.

At the time of his death (December 19, 1941) Mr. Rucker had no relatives closer in degree than first

cousins, and on the maternal side there are only three, all of whom are now living, namely, Miss
Cook, Mrs. Arrowsmith and Mrs. Iglehart.

On the paternal side, however, the situation is not so simple. One first cousin on the paternal
side is still living, namely, Captain Louis S. D. Rucker. Francis Dodge Whitall, another first
cousin, was living at the time of William J. Rucker's death but he has since died leaving four children
now living. Seven other first cousins died prior to William J. Rucker's death, all of whom left children
or descendants and of these there are at present sixteen, all of whom would share in greater or in
less degree in this fund should the Corporation Court of Charlottesville hold that Mr. Rucker was
intestate as to this fund. While we believe that these are all of the next of kin of William J. Rucker,
it is possible that there are others of whom we have no knowledge.

Safe Deposit and Trust Company of Baltimore, as Trustee under the Will of Lucy J. Dun, is
holding one-third of her residuary estate pending final decision of the Court of Appeals of Maryland as
to its disposition.

The Circuit Court of Baltimore County as stated above has held that this fund (hereinafter
called the "Dun Fund") is distributable to Mrs. Dun's next of kin living at Mr. Rucker's death, viz: -
Mrs. Iglehart, Miss Cook and Mrs. Arrowsmith.

Appeals from that decision are pending as follows:-

• 1 - By the Executors of Mr. Rucker, who claim the entire fund.

• 2 - By Louis S. D. Rucker, one of Mr. Rucker's next-of-kin who claims 1/5th of the fund.

• 3 - By the Estate of Francis Dodge Whitall, another of his next of kin, who also claims
  1/5th of the fund.

• 4 - By J. Deane Rucker and his mother, representing his father's estate, claiming 1/10th
  of the fund. (Note - other appeals on a similar basis have been dismissed).

If the appeal of Rucker's Executors is sustained and the fund is awarded to them, they must
institute the proceeding outlined above to determine whether the Dun fund is distributable to either -

• A - His residuary legatees under his will, or

• B - His next of kin as property as to which he died intestate.

If the Virginia Courts award the Dun fund to his next-of-kin then it is subject to -

• A - Virginia inheritance taxes, say $50,000

• B - Federal Estate Tax - estimated at $300,000

A further consequence would be that the Federal Estate Tax heretofore paid by Mr. Rucker's
estate, all of which is payable out of the funds passing to his three residuary legatees and donees, will
be increased because of the increase in the Federal Estate Tax rates occasioned by the inclusion of the
Dun fund. This increase may amount to $30,000.00

Any method of settlement would follow substantially the following course -

(1) An agreement would have to be reached as to the exact amount or proportions to be paid
to the three first cousins in Baltimore, to Captain Louis S. D. Rucker, to the Estate of Francis Dodge
Whitall, to John Deane Rucker, and to the Executors of William J. Rucker, these being all of the
present claimants in the Maryland case;

(2) This agreement should be reduced to writing and executed by all of the above parties
and, in addition, by the three residuary Institutions under the will of Mr. Rucker;

(3) The execution of the agreement on the part of the Executors of Mr. Rucker should be
conditioned upon the approval thereof by the Corporation Court of Charlottesville in an inter-parties
proceeding in which all of the next of kin of Mr. Rucker, under Virginia statute, are to be made parties
as well as the residuary Institutions under his own will.

(4) Upon the entry of an order approving this agreement the Executors would be authorized
to dismiss their pending appeal in the Court of Appeals of Maryland and an order could be then entered
by the Circuit Court of Baltimore County based upon the agreement directing the payment of the amounts
therein agreed upon;

(5) In the above proceeding in the Corporation Court of Charlottesville or in a separate
proceeding in which the same parties are included, the Court would be asked to determine whether under
the will of William J. Rucker the funds to be received by the Executors are distributable to his
residuary legatees or to his next of kin in intestacy. If the latter, then the shares of such of the
next of kin as are parties to the settlement agreement would be paid to the three resuduary Institutions
under the terms of the agreement, assuming that the original agreement included such an assignment.
The shares of the next of kin not so included, however, would have to be paid to such next of kin.

(6) Claims may be made by the Federal Government and the State of Virginia that Estate Taxes
and Inheritance Taxes are payable on the whole of the Dun fund, or on a portion thereof, because the
settlement was based, in part, upon the claims of the next of kin of Mr. Rucker in intestacy, so that
the amounts received in the settlement were by inheritance from him, and any taxes assessed on this
account will be payable from the Rucker Estate.

(7) Furthermore, under the provisions of Section 6072 of the Code of Virginia any unknown party
or other defendant in the Virginia proceedings who was not served with process and did not appear in
the case before the date of judgment, decree or order may within two years from that date petition to
have the case reheard and may plead or answer and have any injustice in the proceedings corrected.

(8) It follows from the above that the agreement should provide that a sufficient amount would
be retained by the Executors pending settlement of the above questions to provide for -

• (a) The Federal Estate Tax which is estimated at $300,000.00

• (b) The Virginia Tax estimated at $50,000.00,

• (c) The possible claims of next-of-kin not parties to the settlement, ranging
  from $133,000.00 to $233,000.00; and,

• (d) Court costs, interest on taxes, counsel fees, etc.

After full discussion of the foregoing report the following resolution, offered by Mr. Garnett, seconded
by Mr. Corbitt, was unanimously adopted;

The meeting then adjourned.