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 | Board of Visitors minutes December 13, 1946 |  |
The regular monthly meeting of the Rector and Visitors of the University of Virginia was held on this
date at 10 o'clock in the office of the President, with the following present: Visitors Garnett,
Anderson, Calcott, Wailes, Willis, Black, Gay, Dr. Trout, Mears, and Miller, and President Newcomb.
In the absence of the Rector, Mr. Garnett was elected Chairman of the meeting.
The minutes of the November meeting, which had been copied and mailed to the members were approved.
The President made the following announcements:
Enrollment to date 4386.
Gift: From Mrs. Henry W. Greenough, to purchase books on Italy and Italian Affairs for the University
of Virginia Library, as a memorial to her husband, Mr. Henry Waldo Greenough, $1,000.00.
The following recommendations of the President for promotions and elections were approved:
PROMOTIONS
Dr. Daniel Rutledge Vining, Associate Professor of Rural Social Economics, to Professor of Economics,
at a session salary of $4,500, plus the Tuck Formula, effective January 1, 1947.
Mr. Raymond C. Heidleff, Assistant Professor of Physical Education, to Associate Professor of Physical
Education, at a session salary of $3,750, plus the Tuck Formula, effective January 1, 1947.
Mr. Robert N. Hoskins, Assistant Professor of Physical Education, to Associate Professor of Physical
Education, at a session salary of $3,750, plus the Tuck Formula, effective January 1, 1947.
ELECTIONS
Dr. Willard R. Thurlow, elected Assistant Professor of Psychology, at a session salary of $2,800 plus
the Tuck Formula, encumbency to begin February 1, 1947.
Dr. Walter S. Flory, Jr., Professor of Experimental Horticulture at the Blandy Experimental Farm, at
a salary of $6,000 per calendar year, encumbency to become effective as soon as he can be released
from the Virginia Polytechnic Institute. This is a replacement of Dr. Baldwin, who resigned October 15,
1946.
LALLA GRESHAM BALL SCHOLARSHIP FUND FOR MARY WASHINGTON COLLEGE:
Presentation of an indenture between Jessie Ball duPont and the Rector and Visitors of the University
of Virginia for establishing the Lalla Gresham Ball Scholarship Fund in the Mary Washington College
of the University of Virginia. The indenture was approved by the Board subject to approval by the
Attorney for the University:
RESOLVED, by the Board of Visitors of the Rector and Visitors of the University of
Virginia that it accepts with pleasure the $7,000 in cash and 300 shares of common stock
of E. I. duPont de Nemours and Company as Trustee for Jessie Ball duPont.
RESOLVED FURTHER, that the Lalla Gresham Ball Scholarship Fund be and it is hereby established
in the Mary Washington College of the University of Virginia and that the Rector
of the University of Virginia be and he is hereby authorized to sign the indenture on behalf
of the Rector and Visitors of the University of Virginia, and the Secretary be and he is
hereby authorized and directed to attest the same.
BAYLY-TIFFANY SCHOLARSHIPS AT MARY WASHINGTON COLLEGE:
Mrs. Charlotte Parks Stone, of Onancock, Virginia, made a request for the awarding of a Bayly-Tiffany
Scholarship to each of her daughters, Charlotte Byrd Stone and Judith Woolling Stone, both of whom are
now students at Mary Washington College, Dean Edward Alvey, Jr., of Mary Washington College, submitted
report on the grades of each of the ladies, advising that the former was now in her junior year, the
other lady in her sophomore year, and that both had made unusual grades.
On motion both of the ladies were awarded Bayly-Tiffany Scholarships at Mary Washington College for the
present year.
REQUEST OF ENGINEERING DEPARTMENT FOR ERECTION OF TEMPORARY STRUCTURES:
The Engineering Department of the University of Virginia submitted a request for the erection of two
temporary structures, one to house an electronics laboratory and a sanitary engineering laboratory
and the other to house an aeronautical engines laboratory.
The foregoing request was disposed of in the following resolution adopted:
RESOLVED, by the Board of Visitors of the Rector and Visitors of the University
of Virginia that a request from the Engineering Department for the erection of two
temporary structures, one to house an electronics laboratory and a sanitary engineering
laboratory and the other to house an aeronautical engines laboratory, be and the
same is hereby approved.
RESOLVED FURTHER, that Mr. F. E. Hartman, Director, Department of Buildings and
Grounds, be authorized and directed to apply to the Federal Works Agency for an allocation
to the University of Virginia of these buildings, to be used for the aforesaid
purposes.
LOAN NOTES OWED BY STUDENTS KILLED IN WORLD WAR II:
The President presented a list that had been prepared by the Bursar giving the names of the students
of the University who secured loans from the University loan fund and who were killed in World War II
whose notes had not been paid with the suggestion that the same be charged off. The list was referred
back to the Bursar with suggestion that he write to banks in the communities in which the parents or
other endorsers are living and ascertain their financial responsibility or if the parents who were comakers
of the note had received life insurance that might enable the payment of the notes without working
a hardship on the parents.
REPORT OF BUILDINGS AND GROUNDS COMMITTEE:
Mr. Garnett made a verbal report for the Buildings and Grounds Committee and stated that full meeting
of the committee would be held on January 9th when it was hoped that the Rector could be present. During
discussion the question of the plans and construction of the new dormitories were raised and discussed
at some length and a special committee consisting of Mr. Gay, Mr. Anderson, Dr. Miller, and President
Newcomb was appointed to consult with Governor Tuck concerning plans for the new men's dormitories.
DOCTOR TROUT'S REPORT ON WOODROW WILSON HOSPITAL:
Doctor Trout, Chairman of the Board's Committee on the Medical School, stated that pursuant to the Board's
prior request, he had recently investigated the possibility of the University's making use of the Woodrow
Wilson Hospital at Staunton, Virginia, for housing the Medical School of the University of Virginia,
in view of the fact that it was being offered by the United States Government as surplus property, and
it was thought could likely be obtained by the University at nominal cost.
Doctor Trout stated that after fully investigating the matter and conferring with Doctor Miller, Superintendent
of the State Board of Education, who was considering a similar proposal on behalf of the State
for that organization, he was satisfied that the use of Woodrow Wilson Hospital by the Medical School
of the University was not feasible and recommended that it be no longer considered in this connection.
CONTRACT WITH THE STATE-PLANTERS BANK & TRUST COMPANY TO ACT AS CUSTODIAN OF THE UNIVERSITY'S ENDOWMENT
FUNDS:
RESOLVED that, WHEREAS at the last meeting of the Board of Visitors the Finance Committee was instructed
to prepare and present a contract between The Rector and Visitors of the University of Virginia
and the State-Planters Bank and Trust Company of Richmond, under the terms of which the Bank was to act
as Custodian and as Financial Adviser in regard to the investment of the securities of the Consolidated
Endowment Fund; and,
WHEREAS, the Committee has today presented to the Board such a contract, dated December 13, 1946,
approved in the form presented by W. Allan Perkins, Attorney for the University of Virginia, and approved
also by the State-Planters Bank and Trust Company; and,
WHEREAS, a majority of the said Committee has recommended the adoption of this contract and this
Board has carefully considered it,
That this contract is hereby adopted as the contract of the Rector and Visitors of the University
of Virginia, and J. L. Newcomb, President of that Corporation, is hereby authorized and directed to
execute the same in the name of the Corporation and E. I. Carruthers, Secretary of this Corporation,
is hereby authorized to affix the corporation's seal thereto and attest the same, and to deliver the
said contract to State-Planters Bank and Trust Company of Richmond for execution by that Bank.
THIS AGREEMENT MADE AND ENTERED INTO THIS 13th day of December, 1946, by and between the Rector
and Visitors of the University of Virginia, a corporation existing under the laws of the State of
Virginia, hereinafter for convenience called the Principal, party of the first part, and State-Planters
Bank and Trust Company, a corporation created by and existing under the laws of the State of Virginia,
hereinafter for convenience called the Agent, party of the second part.
WITNESSETH:
That on or about January 15, 1947, the Principal will pay over, assign and deliver to the Agent,
to be held and administered by it, upon the terms and conditions hereinafter set forth, the securities
listed on the schedule to be hereto attached.
The Principal reserves the right hereafter from time to time to pay over, assign and deliver to
the Agent, to be held and administered by it upon the terms and conditions of this Agreement, other
securities or sums of money. The above mentioned securities and any other cash or securities which
may be added thereto, are hereinafter for convenience referred to as the Agency Fund, which said
in said Agency Fund are for convenience sometimes referred to as securities.
1. The Agent shall keep under review the securities held in the Agency Fund and, whenever it
deems it advisable to make changes in such securities or to invest a portion of any cash in such
fund, whether at the time of making the monthly reports hereinafter in this clause referred to or
during the intervals between the dates for such reports, it shall submit its recommendations with
respect thereto to the Chairman of the Finance Committee of the Principal with its reasons for
such recommendations supported by brief investment memoranda upon the securities in which investment
is recommended. At monthly intervals the Agent shall report to said Chairman a list of the assets
in its hands so prepared as to show the cost of each security (the cost of securities not acquired
by the Fund through the Agent to be furnished by said Chairman), the current market value thereof,
the aggregate of bonds, preferred stocks, common stocks and mortgages and the percentage of diversity
in each category.
Notwithstanding that the deposit of securities may not be made with the Agent prior to January
15, 1947, yet the Agent shall keep under review, from and after the effective date hereof as defined
in paragraph 6 hereof, the list of securities of the Principal furnished the Agent by the Chairman of
the Finance Committee of the Principal to Mr. L. B. Gunn, Vice-President and Trust Officer of State-Planters
Bank and Trust Company, under date of November 16th, 1946, and such later lists supplemental
thereto or amendatory thereof, as may be hereafter likewise so furnished the Agent prior to the delivery
of the securities as contemplated by this agreement and, whenever it deems it advisable to make
changes in the investments shown on such lists, so advise such Chairman with its recommendations as
to the changes thought desirable and its reasons therefor.
2. At the written request of the Principal, the Agent shall invest any cash which it may have on
hand in the Agency Fund in such securities as the Principal may request it in writing so to do. Likewise
at the written request of the Principal, the Agent shall sell any securities held in the Agency Fund
and shall invest and reinvest the proceeds of sale thereof in such securities as it may be directed in
writing so to do by the Principal. The Agent shall have no authority to make investments of the Agency
Fund except at the request of the Principal, and the Agent shall have no authority to sell any securities
held in the Agency Fund except at the request of the Principal. The request of the Principal with respect
to the sale of securities and investment of funds shall be made by the Chairman of the Finance
Committee of the Board of Visitors, who shall, therein, state that such request was authorized by the
Board of Visitors or by the Finance Committee thereof, and the Agent is, by this contract, authorized
to carry out such request of said Chairman without any further reference to the Board itself. In carrying
out the instructions as to purchase and sale of securities the Agent shall handle all details of
delivery and receipt of securities. All securities shall be safely kept in Agent's vault and Agent shall
clip coupons, collect dividends and other income and maintain cash accounts thereof and shall receive
and account for cash payments of principal arising from the sale of securities, the redemption thereof,
or from any other source.
3. The Agent is authorized to, and shall to the extent found practicable, register any securities
held in the Agency Fund in the name of its nominee, Hamac and Company, or in the name of any other nominee
or nominees selected by it, without disclosing or describing this Agency Agreement. The Agent shall,
upon the request of and in accordance with the directions of the Chairman of the Finance Committee of
the Principal, have its nominee or nominees execute and deliver proxies, either general or restricted,
to vote any shares of stock held in the Agency Fund registered in the name of such nominee or nominees,
or in the absence of such requests and directions, the Agent may forward proxies executed by such nominee
or nominees to the said Chairman for such disposition as he sees fit.
4. The agent shall collect the income from the Agency Fund and upon collection thereof and, after
paying therefrom all commissions and other expenses properly chargeable to income, shall pay the net
income to the Bursar of the Principal quarterly on the 15th days of January, April, July and October,
or in such other convenient installments as may be agreeable to the Bursar of the Principal, and at
said intervals shall render to the Bursar statements of all of its receipts and disbursements as Agent
under this Agreement, received or disbursed since the last preceding statement made to him.
5. The Principal reserves the right at any time and from time to time to withdraw any or all of
the Agency Fund from the Agent.
6. This agreement shall be effective as of December 1, 1946, and it shall continue in effect for
one year and thereafter until terminated by either party. It may at any time be altered by mutual agreement
of the parties.
7. Any powers herein expressly reserved to the Principal (except the power to alter or terminate
this agreement) the exercise of which are not herein elsewhere provided for, may be exercised by the
Chairman of the Finance Committee of the Principal who is by this agreement thereunto duly authorized
by the Principal.
8. As its compensation hereunder the Agent shall be entitled to take and receive at the end of
each accounting year a commission of five per cent of the gross income (capital gains are not considered
as income for this purpose) collected by it during such preceding year, or One-Fourth of One Per
Cent of the total market value of any stocks and bonds and the total face value of any real estate
mortgages and other notes held in the Agency Fund at the end of such accounting year, whichever of
these two is the greater, and in addition thereto, One-Fifth of One Per Cent annually on the total face
amount of real estate mortgage notes or bonds and other real estate notes held in the Agency Fund at
the end of such accounting year which require maintinaing individual loan files. The compensation on
the excess of $2,000,000.00 in the Agency Fund shall be at the rate of 50% of the above base rate.
9. This agreement shall be executed in duplicate, each copy of which shall be deemed an original.
10. The execution of this Agreement by the Principal has been authorized by resolutions of its Board
of Visitors at a meeting duly called and held on the 13th day of December, 1946, a certified copy of which
is attached to this Agreement.
IN WITNESS WHEREOF the parties hereto have caused their corporate names to be hereunto signed by
their respective Presidents or Vice-Presidents and their corporate seals to be hereto affixed and duly
attested by their respective Secretaries or Assistant Secretaries, all as of the day and year first
above written.
/s/ E. I. Carruthers, Secretary, Bursar
/s/ C. L. Batkins, Assistant Secretary
The meeting then adjourned.
RECTOR
SECRETARY
| Board of Visitors minutes December 13, 1946 | |