 | Board of Visitors minutes October 13, 1898 |  |
October 13th, 1898.
At a meeting of
The Board of Visitors of the University of Virginia, held
at the University, at the call of the Rector, on the 13th day
of October 1898, in pursuance of notice.
Present, the Rector, and Visitors, Bryan, Chandler, Downing,
Glass, Harmon, Irvine and Miles.
Absent, Visitor, McIlwaine
The Chairman of the Faculty handed in reports and petitions
as follows:
Faculty's report, Proctor's report, Dr Barringer's report
on water supply, Report of Dr Barringer, Chairman of the
Advertising Committee - External relations etc. - Report of
Col Thos H. Carter Chairman of the Committee to organize the
local Alumni throughout the country - Report of Prof Kent
Chairman of the Committee of Correspondence - Report of same
as chairman of advertising Committee on Bilical Instruction.
Petition of Prof. Kent for an appropriation of $200. for
the benefit of the School of English Literature.
Petitions of R. K. Crockett, Estes Paine and J. F. Taylor,
respectively.
Petitions of M. W. Swartz and L. A. Richards, respectively,
for appointment to the John Y. Mason Fellowship.
Petition of W. M. en and J. Stroy Yen, Chinamen, to be
allowed to enter the University as students upon the footing
of citizens of Va.
After consideration the following was enacted:
Resolved: That the Contract with the Virginia Trust Company
for acting as depositary for the securities of the University,
together with the Company's receipt for such securities
be spread upon the records of the minutes of this meeting.
said contract and receipt are in the following words and figures,
to wit
University of Virginia.
Referring to_interview with you this A. M. in
relation to caring for securities and handling the Sinking Fund
Accounts of the University. We beg to state our construction
of the agreement arrived at and if correct will be pleased to
have you confirm same
The arrangement as at present existing and charges made
for acting as Registrar and Transfer Agent to continue, but it
is understood that the University will forward to us the 153
bonds, say $76,500. for registration. To receive $25.00 per
annum for the following, viz, Receive and hold such securities
as may be sent us or purchased for account of the Sinking Fund
Old Debt, collect income thereon and invest such income or funds
that may be sent for that purpose under instructions of the Finance
Committee of the University.
The same as above to be carried out as to Sinking Fund
New Debt.
1898
The correspondence with the Va Trust Company has been
returned to me as Proctor and is placed in the safe of the
office. Thos H. Carter. Proctor & Supt of Grounds & Buildings
and registered
If we have made this clear and it agrees with your idea,
please so advise.
Vice President.
July 20th 1898.
Vice President, Va Trust Co.,
Richmond, Va.
I am in receipt of your letter of July 19th,
I beg to state that my understanding of our agreement concurs
with yours therein expressed.
and Superintendent.
University of Virginia.
We have your favor of 22d and are in receipt
of securities listed in same, by Express. We register on our
books 153 bonds $500. each= $76,500. in name of Rector and
Board of Visitors of University of Virginia, and hold the same
for safe keeping. We have changed Virginia Century Bonds, $28,000.
made by Auditor of Virginia for the change. Please remit.
We have opened an account "University of Virginia Sinking
Fund, Old Debt" and hold following securities for collection
of income:
Georgia Pacific R. R. Co 6% Bonds,
| #3,013 | $1000. |
| #3 026 | 1000. |
Registered Virginia 2 - 3 Bonds,
| # 439 | $10,000. |
| 440 | 10,000. |
| 381 | 5,000. |
| 842 | 1,000. |
| 913 | 100. |
| 914 | 100. |
Account of "University of Virginia, Sinking Fund, New Debt"
Registered Virginia 2 - 3 Bonds
#1,058/1060 $1000. each $3000.
Vice President.
University of Virginia.
We are in receipt of Virginia Century Bonds
$20,800., advised as purchased in ours of yesterday, and have
had same registered in the name of the Rector and Board of
Visitors of the University of Virginia.
We charge the respective Sinking Funds as per statement
below and hold bonds for account of same. You will notice
that this makes the Sinking Fund Account, Old Debt show debit
of $95. and to the credit of Sinking Fund account New Debt
$15.
Vice President.
| Statement. | ||
| Sinking Fund Old Debt. | ||
| Amount received of you | $13,970. | |
| Bought $19,400. Va Century Bonds 72 1/4 & 1/4 Com. |
14,065. | |
| Debit | $95. | |
| Bonds registered & held for above: | ||
| No. 442 | $10,000. | |
| 382 | 5,000. | |
| 1062/1065, $1000. each | 4,000. | |
| 1243/1246 $100. | 400. | $19,400. |
| Sinking Fund New Debt. | ||
| Amount received of you | 1,030 | |
| Bought $1,400. Va Cent. Bonds 72 1/2 & 1/4 com. | 1 015 | |
| Credit | $15 | |
| Bonds registered and held for above: | ||
| No 1066 | $ 1 000. | |
| 1247/1250 $100. each | 400. | 1,400. |
Resolved: That all questions growing out of the joint
use of the Old Reservoir and the New Reservoir & pumping station
use by the University of the Sewers of Charlottesville
be referred to a Committee of two composed of Mr Harmon and
Dr Barringer, who shall confer with the Authorities of Charlottesville
on the subjects and make report with recommendations
to the next meeting of this Board.
Whereas certain suits have been instituted against the
University of Va by several contractors
Resolved: That John B. Moon, att'y, be and he is hereby
empowered to take such steps in the premises as in his judgment
may be necessary to protect the interests of the Institution.
Resolved: That the application of the P. K. Club for the
use of the Gymnasium for their annual German on June 10th 1899,
be granted.
Resolved: That the Secretary notify Mr Page the Librarian,
that his letter asking for increase of salary, has been
duly considered by the Board, and that it regrets that it does
not see its way clear to comply with his request.
Resolved: That the action of the Chairman of the Executive
Committee and of the Proctor in allowing Prof. Thornton
upon his request and representations to transfer to the Mechanical
Laboratory the 10 horse power C & C Electric motor purchased
to drive the fan for ventilating the Rotunda, for use and to be
taken care of in the Mechanl Lab. until it shall be needed for
running the Rotunda fan, is hereby confirmed.
Resolved: That the Proctor's bond when renewed, shall be
reduced to the sum of twenty thousand dollars, a bond in that
penalty being now deemed sufficient.
Resolved: That the Secretary write to Samuel B. Woods,
that his communication asking for increased compensation for
auditing the accounts of the Proctor has been duly considered
by the Board, and it regrets that it can not comply with his
request.
Resolved: That the sum of $250. is hereby appropriated
to complete the publication of the Annals of Mathematics for
the current year.
Resolved: That for the session of 1898-99 both Mr John
E. Williams and Mr H. C. Ford be appointed to the Mason fellowship
and the of $83.75 is hereby appropriated for the purpose
of making up the sum necessary for that purpose.
Resolved: That the Proctor is authorized, if in his
judgment it is necessary, to spend $1500. out the Fayerweather
bequest when the same is fully and finally settled and received,
for the purpose of erecting a dwelling suitable for
the Janitor. Meantime the Proctor is requested to take such
steps as he may deem proper to make the present residence of
the Janitor more comfortable.
Resolved: That the future policy of this Board in awarding
the Mason Fellowship shall be to give it to the same person
for but one session, unsless special reasons shall be presented
why there shall be a departue from this avowed policy
of the Board. The said Fellowship shall be awarded by the
Board upon applications to be made directly to the Board at
its June meeting of each year, and the award must be made to
some suitable applicant who was born in Virginia, and unable
to attend the University without such assistance.
The application of Prof. Perkinson for the payment of
$60. expended in excess of appropriation made for repairs of
Pavilion No. 6 having been received and duly considered by
the Board,
Resolved: That it is the polocy of this Board not to
pay expenditures in excess of appropriations, and therefore
it regrets that it can not reimburse the excess expended in
this instance.
Resolved: That the John W. & Belinda Randall Charities
Corporation gift of $20,000. be expended in the erection of
aditional dormitory facilities at the University, to be known
as the John W. & Belinda Randall Building, and that the Rector
appoint from the Board a Building Committee to correspond
with Architects and invite plans and estimates of cost, said
plans and estimates to be submitted to a meeting of this Board
to be held in February next, for consideration. The Rector
appointed as the Committee under the foregoing resolution,
Visitors,
Geo. W. Miles, Building Committee.
D. Harmon, & Building Committee.
A. B. Chandler Building Committee.
Resolved: That the sum of $525. be appropriated for the
purpose of purchasing law publications, to be selected under
the spervision of the law faculty.
Resolved: That the recommendation of the Proctor concerning
the painting of the cement work intended to be painted,
be adopted and the Proctor is authorized to proceed with said
work in his discretion.
Resolved: That the petitions of Profs R. C. Minor and
J. S. Davis to be made full professors in the departments of
law and Medicine respectively, be passed by for action, until
a future meeting of this Board, the Board regretting that owing
to the financial necessities of the University it cannot
take favorable action on said petitions at this time.
The letter of Mrs Annie Rives Chalmers Owen, of Sep.
11th 1898, written to Mr Daniel Harmon as a member of this
Board, relative to a proposed donation to the University of
certain articles obtained from the Smithsonian Institution,
was read to the Board, whereupon it is,
Resolved: That the Board expresses its great pleasure
at the sentiments contained in Mrs Owen's letter and its appreciation
of the value to the University of the proposed
donation, and of the kindness that prompts the offer. Such
donation when received will be accepted by the Board in the
spirit in which it is offered, and dedicated to the purposes
desired by the donor. Resolved further, that a copy of this
resolution be sent by the Secretary of this Board to Mrs
Owen.
Resolved That Mr Aubrey E. Strode is authorized to
matriculate in the school of Law for 3 months and to pay
proportionately for that period.
Resolved That the fees of Mr William Gilmore of Clinton,
La, paid this session, in view of his enforced absence,
be held available for him for another year should he see fit
to return.
Resolved: That the Proctor is authorized to return to
Estes Paine, and P. K. Crockett the fees paid in by them at
this term, pursuant to the recommendation of the Chairman
of the Faculty, and also that to J. F. Taylor be refunded the
proportional part of the fees of the last session as requested
by him and in accordance with the recommendation of the Chairman
of the faculty.
Resolved: That the duties of Dr Wm A. Lambeth be continued
as at present and that his salary be increased to the
sum of $1500.00, payable as though this sum had been so fixed
at the beginning of the present fiscal year.
Resolved: That so much of the sum of $200. as may be
necessary be and is hereby appropriated for the entertainment
of the Modern Language Association of the United States,
at its session to be held at the University in December next,
as recommended by the faculty.
Resolved: That all fees and charges against Charles M.
Della for the current year be and they are hereby remitted,
and the Proctor is directed to repay to said Della any sum
already paid by him. This action is taken in consideration
of the work of said Della in connection with the Alumni Association
of the University.
Mr Joseph Bryan, submitted and read to the Board his report
touching the nature and value of the securities in which
the estate of Arthur W. Austin, of Milton, Norfolk County,
Mass. is now invested. On consideration whereof the following
resolution was adopted:
Resolved: That the report of Mr Joseph Bryan in regard
to the Arthur W. Austin legacy with papers filed therewith
be accepted and spread upon the records.
Said report is in the following words and figures, to
wit:
In compliance with your request to make enquiries touching
the nature and value of the Securities in which the estate
of Arthur W. Austin, of Milton, Norfolk County, Massachusetts,
is now invested, I have the honor to report that I corresponded
with Mr Bentley W. Warren, one of the Trustees of that estate,
and received from him a letter under date of Sep. 24 which I
herewith file, enclosing a statement of the Securities and their
value as of Sep. 18th which I also file. I sent a list of these
securities to Messrs W. H. Goadby & Co. Bankers, of New York,
and asked them to ascertain their values, and received from
them a letter under date of October 10th giving me the market
values of all, save the stocks of three National Banks, the
Boston and Maine RailRoad preferred stock, the East Middlesex
Railway stock, and the Ogden & Lake Champlain R. R. bonds.
The report of Messrs Goadby & Co confirmed the estimate of Mr
Warren, adding somewhat to the value of some of the securities.
I file herewith a statement showing the value of the securities
under Mr Warren's estimate, showing a gross market value of
$262,945. In this is not included the $80,000. invested in the
Massachusetts Hospital Life Insurance Co. About this wrote Mr
I should say from the statement furnished in Mr Warren's
letter that the real estate is worth about $50,000., and assuming
that the $80,000. in the Insurance Co. is worth its
face, the total present value of the Estate is $392,945.
The letter of Bentley W. Warren of 24th Sep. referred to
above is in the following words and figures, to wit:
Richmond, Va.
I am very sorry that the receipt of your letter
just after I had begun my vacation has prevented an earlier
reply to your inquiries relative to the investments in the
Arthur W. Austin Estate.
Schedule C. of the Trustee's second account shows what
the investments of the Trust Estate were at that time. The
mortgage investments consist of notes secured by mortgages
of real Estate, with the exception of that of Andrew J. Peters,
$20,000.00 which was a loan secured by collateral, and
which has since been paid. The list of stocks, you will notice,
contains a valuation for each stock. In the case of
stocks which were in the Estate when Mr Proctor became trustee,
the valuation is that put upon the stock by the appraisers.
In the case of stocks purchased since Mr Proctor became
trustee, which was in the spring of 1894, the valuation
represents the cost of the stock to the estate.
I enclose herewith, on a separate sheet, a schedule of
the stocks at present in the Estate, showing the number of
shares of each stock, and the valuation on December 1, 1897,
the date of the last trustee's account.
For your information I would add the following facts
about the stocks:-
The Boston & Lowell Railroad is leased to the Boston &
Maine Railroad, on an 8% guaranteed annual dividend.
The Old Colony Railroad is leased to the New York, New
Haven & Hartford Railroad Co. on a 7% guaranteed dividend.
The West End Street Railway Co's preferred stock is entitled
to an 8% guaranteed dividend, before the common stock
receives anything. In addition to this guarantee, however,
the West End St R'y. Co. is leased to the Boston Elevated
Railway Co. for twenty five years, on an 8% guaranteed dividend
for the West End preferred, and a 7% guaranteed dividend
for the West End Common.
The East Middle Six Street Railway Co. is leased to the
Lynn & Boston Railroad Co. on an 8% guaranteed dividend until
1901, and on a 10% guaranteed dividend the ninety-one years
following.
The Boston & Albany Railroad has paid 8% dividends for
many years, and the market value of its shares is an indication
of the opinion investors entertain of it in this vicinity
The Bell Telephone Co. you probably are thoroughly familiar
with. The New York, New Haven & Hartford Railroad Co.
has a virtual monopoly of all the business between New York
and Boston, and pays 8% dividends.
The Fitchburg Railroad preferred stock pays 4% dividends.
The Boston & Maine Railroad preferred stock pays 6% dividends
The Merchants National Bank pays 6%, and the two other
banks 4% each.
The Lake Shore & Michigan Southern Railroad Stock, which
the trustees held on Decr. 1, last, has been sold since that
date, the Estate realizing from the sale $19,150.00.
The West End common, the National Bank of Commerce, and
the New York Central Railroad stocks have been purchased since
the date of the last account.
The real Estate held by the trustees consists of the following
properties:-
Land and buildings on A. St So. Boston. This property
was taken by Mr Austin, before his death, on a mortgage, as security
for a $25,000.00 loan. At the time Mr Proctor became
trustee the property was unoccupied, and the interest in arrears.
The mortgage was, therefore foreclosed, and the title
to the property vested in the trustees. Since then we have
succeeded in finding a tenant of the property, the Ipswich
Mills, who are conducting a manufacturing business there.
They pay an annual rental of $1050.00. and also pay the taxes
assessed upon the property. The assessed valuation of the
property is $23,000.00. What its real value may be is very
difficult to say, as the demand for property of this nature
is not very great.
There is some property, with tenement houses, in the city
of Chelsea which is valued by the assessors at $21,350.00. The
the most desirable order, and real property in Chelsea is
pretty heavy I doubt if the property is worth any more than
the assessed value, and might bring less.
There is a house and lot in the City of Malden, assessed
for $3700.00, which is probably all that it is worth, as its
present annual rental is only $240.
There is also a small piece of land in the town of Sharon,
valued by the Assessors at about $350.00.
There was a piece of real estate in the town of Milton,
the greater part of which, however, was taken by the Metropolitan
Park Commission, and the small remaining balance of which
we have recently sold. This has been the subject of recent
correspondence between Col Carter and myself.
Regarding the investment of the $80,000.00 of Massachusetts
Hospital Life Ins. Co., I understand that the Company
does not make separate investments of the different moneys deposited
with it, but treats all such deposits as a common fund,
similar to the practise of savings banks, and holing itself
liable to pay to the designated beneficiaries, when the trust
terminates, the same amount as that received from the original
depositor. Over the management of this $80,000.00 fund of
which I understand the University of Virginia is ultimately
the beneficiary, the trustees under the will have no control,
as the trust was created by the late Mr Austin during his life-
time.
I might add that most of the stocks mentioned in the
schedule enclosed are quoted somewhat higher in the market
last account, December 1, 1897.
The Edward D. Pelletier Mortgage, the principal of which
was $1600.00, was a Kansas mortgage taken by Mr James W. Austin,
the former trustee, which has been foreclosed by us, but
the value of which is, at the present time, entirely problematical.
If there is anything not clear to you, or about which you
would like further information, I hope you will let me know,
and I shall be very glad to supply it, if possible.
[For the schedule of stocks referred to in the foregoing
letter, see the following page, Page 310, of this record.]
Richmond, Va.
Replying to your favor of the 30th ult., I
would say that in my opinion the $80,000.00 investment in the
Massachusetts Hospital Life Ins. Co. is undoubtedly good, and
that the University will receive the same when the same becomes
payable by its terms.
Richmond, Va.
We give below quotations on the securities
which we were unable to furnish in our last letter, viz=
(continued on page 311)
[Schedule of stocks referred to on P. 309.]
| Stocks. | No. of Shares. | Appraised value when taken by Trustees or when bought by them in the market. |
Market Value Decr 1, 197- |
Value Sep 15/98 |
|
| Boston & Lowell R. R. Co. | 250 | 50,314.67 | 216 | $54,000 | 226 |
| Boston & Albany R. R. Co. | 200 | 41,407.37 | 218 | 43,600 | 237 |
| Old Colony R. R. Co. | 200 | 35,544.74 | 184 | 36,800 | 191 |
| West End Street R'y Co preferred (par $50) |
200 | 19,249.99 | 100 | 20,000 | 105 |
| West End Street R'y Co common (par $50) | 100 | 8,337.50 | Not bought until Feb. 98 83½ |
8,350 | 87 |
| American Bell Telephone Co. | 50 | 10,200.00 | 262 | 13,100 | 277 |
| New York, New Haven & Hartford R.R.Co. | 25 | 4,437.49 | 180 | 4,500 | 190 |
| Fitchburg R. R. Co. preferred | 100 | 6,900.00 | 95½ | 9,550 | 105 |
| Boston & Maine R. R. Co. preferred | 100 | 14,800.00 | 157 | 15,700 | 164 |
| Merchants National Bank | 50 | 7,977.50 | 155 | 7,750 | 154 |
| Third National Bank | 50 | 4,500.00 | 90 | 4,500 | 88½ |
| National Bank of Commerce, Boston | 60 | 6,258.75 | Not bought until Apl 98 105 |
104½ | |
| East Middlesex Street R'y Co. | 25 | 4,125.00 | About 175 | 4,375 | |
| New York Central & Hudson R.R.R.Co | 150 | 17,850.00 | Not bought until about Aug 98 |
117 | |
| Ogden & Lake Champlain R.R.Co, Common | 50 | 250.00 | Probably worthless | probably worthless |
|
| Bonds. | |||||
| Wisconsin Central 5s | $10,000 | 6,100.00 | 34 | 3,400 | 53 |
| Wisconsin Central Income | 500 | 3 | 150 | 5 | |
| E. & O. E. | |||||
(continued from page 309)
| Boston & Maine p f d. last sale Oct. 7th 1898, at | 166 1/4 |
| Merchants National Bank last sale Oct. 8th 1898, at | 156 1/8 |
| Third National Bank, last sale Oct. 8th 1898, | 88 1/4 |
| National Bank of Commerce, last sale Sep 21 1898, | 104 3/4 |
| Ogdensburg & Lake Champlain Common last sale Jan'y 1895 at |
1 7/8 |
| do 6% bond receipts of 1920, last sale Oct 5, 1899 at | 93 3/4 |
| There is no market for the bonds. | |
| East Middlesex Street Ry. Co, last sale Sep 1, 1894 at |
120. |
Since this time the dividend has been increased to 8% and it
should be worth 160.
1 Estimated value of the estate of Arthur W. Austin decd as of
Sep. 15th 1898, as per statement filed with Mr Bryan's report
| Stocks= | Amount | Market Value. |
Total Value |
| Boston & Lowell R. R. Co.— | 250 shs | 226 | $ 56,500. |
| Boston & Albany R. R. Co. | 200 shs | 237 | 47,400. |
| Old Colony R. R. Co | 200 shs | 191 | 38,200. |
| West End Street Railway Co. preferred (par $50.) |
200 shs | 105 | 21,000. |
| West End Street Railway Co. Common (par value 50) |
100 shs | 87 | 8,700. |
| American Bell Telephone Co. | 50 shs | 277 | 13,850. |
| New York, New Haven & Hartford R. R. Co. |
25 shs | 190 | 4,750. |
| Fitchburg R. R. Co; preferred. | 100 shs | 105 | 10,500. |
| Boston & Maine R. R. Co, preferred | 100 shs | 164 | 16,400. |
| Merchants National Bank. | 50 shs | 154 | 7,700. |
| Third National Bank. | 50 shs | 882 | 4,425. |
| National B'k of Commerce, Boston | 60 shs | 1042 | 6,270. |
| East Middlesex Street Ry Co. | 25 shs | 175 | 4,375. |
| New York Central & Hudson River R. R. C. |
150 shs | 117 | 17,550. |
| Ogden & Lake Camplain R.R.Co. Common Bonds |
|||
| Wisconsin Central 5s | 10,000 | 53 | 5,300. |
| Wisconsin Central Income | 500 | 5 | 25 |
| E. O. & E. | $262.945. | ||
| Investment in Massachusets Life Ins. Co., face value |
80,000. | ||
| Real Estate as per letter of Bentley W. Warren, Sep. 24, 1898, say |
50,000. | ||
| $392,945. | |||
2 Estate of Arthur W. Austin - values of stocks & Bonds reported
by W. H. Goodby & Co, New York, October 10th 1898, and
filed with Mr Bryan's report.
| Stocks. | |
| Boston & Lowell R. R. Co. | 226 bid. |
| Boston & Albany R. R. Co. | 250 - 255 |
| Old Colony R. R. co. | 192 bid |
| West End Street Railway Co. preferred (par $50.) |
106 bid |
| West End Street Railway Co. Common (par $50.) |
86 |
| American Bell Telephone Co | 280 - 281 |
| New York, New Haven & Hartford R.R.Co. | 190½- 191 |
| Fitchburg R. R. Co. preferred | 104 bid |
| Boston & Maine R.R.Co. preferred. | |
| Merchants National Bank | |
| Third National Bank | |
| National Bank of Commerce - Boston. | |
| East Middlesex Street Ry Co | |
| New York, Central & Hudson R.R.R.Co | 115 |
| Ogden & Lake Champlain R.R.Co. Bonds | |
| Wisconsin Central 5s | 60 - 60½ |
| Wisconsin Central Income | 6½- 7 |
Report of Mr John B. Moon, Atty, in regard to the Arthur W.
Austin Estate, returned with Mr Bryan's report, the same being
in the following words and figures, to wit:-
To the Executive Committee of the Board of Visitors of
the University of Virginia.
Certain papers touching the estate of the late Arthur
W. Austin of Milton, Norfolk County, Mass. having been referred
to me by your Chairman, I beg to submit the following
report thereon
Deposit with the Insurance Company.
Mr Austin, in his life-time, made certain deposits by way of
investment in the Massachusetts Hospital Life Insurance Company
of Boston, aggregating $80,000., the income from which
was go to his three children, Mary, Henry and Florence, during
their lives, and the principal to revert to his estate
upon their deaths respectively. Their shares or interests
were in severalty, separate deposits having been made for the
benefit of each of them for life.
Provision of Will.
By his will admitted to probate September 3d, 1884, after
providing for certain unimportant legacies, he gives the
thereof to go his daughter Mary for life, and after her death
such residium was to pass to the University of Virginia, but
with the further proviso that if the funds deposited with the
Insurance Company should yield less than $1200. per annum to
each of his three children above named, then the amount accruing
annually to each of them was to be made up to that sum
out of the income from the residium, and that if Florence survived
Mary, then her annuity was to be made up to $2000. per
annum from the same source, and if Henry survived Mary, then
his annuity was to be in like manner increased to $1600; and
in case of Mary's death the trustees were directed to retain
such sum from the residium as might be needed, along with the
Insurance investment, to make up these annuities.
Interest of the University.
So that upon the death of testator's daughter Mary, the
University will become entitled to the residium of his estate
(including the funds on deposit with the Insurance Company)
but subject however to the charge of an annuity to his daughter
Florence, if then living, of $2000; and of annuity to his
son Henry, if then living, of $1600., for their respective
lives, to meet which the trustees will retain the Insurance
investment and enough of the remainder of the residium to
cover any deficiency.
The Trust Fund and its Administration.
The papers in hand show the annual settlements made by the
personal representative and the trustees only in part, but
are sufficient to disclose the following facts
The inventory of James W. Austin, as Administrator de
bonis non of the testator made June 3d, 1887, shows assets
there in his his hands as follows:
| Private Mortgages | $ 74,550. |
| Notes | 46,200. |
| Insurance Company Investment | 80,000. |
| Corporate Bonds, (including R.R.Mortgages etc.) |
152,060. |
| Stocks | 41,235. |
| Cash | 9,964. |
| To which add real estate which the Exors were authorized to sell |
56,050. |
| Total | $460,059. |
Note= James W. Austin is named as Executor in
the will. Why he acted as Admr. de bonis non
instead of Exor. does not appear. My surmise
is that some one else (probably one A. S.
Wheeler) first qualified on the estate between
1884 and 1887, but we have no statement of any
of his transactions.
The next settlement we have is the fifth and final accounting
of James W. Austin as trustee under the will which
shows that on May 25th, 1894, he turned over to his successor,
Thos F. Proctor, the following assets:
| Private Mortgages | $110,533.22 |
| Corporate Bonds | 181,520.63 |
| Stocks | 49,556.50 |
| Real Estate | 18,050.00 |
| Cash (principal) | 4,225.84 |
| Total, | $363,886.19 |
| This does not include the Insurance Company investment of |
80,000.00 |
| Which if added make a total of | $443,886.19 |
The above valuation was fixed by appraisers and its diminution
as compared with previous statement appears to be mainly
due to reduced valuation placed on some of the real estate
remaining unsold.
In May 1894, Mr Proctor was substituted as trustee instead
of James W. Austin, and September following Wm Endicott,
3d, was associated with him as co-trustee. Mr Proctor
appears to have died in the latter part of 1895, and in January,
1896, one of his law partners, Bentley W. Warren was appointed
in his place; so the present trustees are Wm Endicott 3d and
Bentley W. Warren. Mary Austin appears about 1890 to have intermarried
with Mr Edward Carrol of Boston, and the correspondence
on file indicates that all of the above substituted
trustees were appointed at her instance. Their trusteeship
however does not include the Insurance Company investment of
$80,000. as to which Walter Austin, at the request of testator's
children, Florence and Henry, was appointed a separate
trustee to succeed James W. Austin.
The next account we have is that of Messrs Proctor and
Endicott, trustees, covering the period from May, 1895, to
Jan'y 1896, showing assets on hand belonging to the principal
as follows
| Mortgages | $ 65,285.90 |
| Corporate Bonds | 67,001.83 |
| Stocks | 175,927.77 |
| Cash | 1,605.40 |
| Total, | $309,820.89 |
(Real Estate not shown)
The last account on file is that of Messrs Endicott
and Warren, trustees, covering the year ending Nov. 30th,
1897 and showing assets as follows:
| Mortgages | $ 96,800.00 |
| Corporate Bonds | 10,500.00 |
| Stocks | 207,287.13 |
| Cash | 1,293.93 |
| Total, | $315,881.06 |
While no real Estate is mentioned in these last two accounts,
yet the income account of the trustees for the year
ending Nov. 1897 shows that they received during that year,
in all, from rents the sum of $3179.07, and it would therefore
seem that they must hold real estate probably worth 30
or 40,000$, though we have no statement thereof.
In the absence of any report on the real estate it cannot
be shown just what the whole estate is now worth. The
last report of Mr James W. Austin showed personalty to the
value of $345,836.19, while the last report of the present
trustees shows only $315,881.06 of personalty, a reduction
in round numbers of $30,000.; but it incidentally appears in
one of the recent reports that a $15,000. mortgage was foreclosed
and the property purchased by the trustees, which would
and one half of the $30,000 loss on the personalty would thus
accounted for and made up. All the reports of the trustees
not being in hand it is impossible to accurately trace the
loss of the other half, (if it has been lost.)
Policy of Trustees as to Investments.
It will be noted that when Mr James W. Austin, who held
the trusteeship some ten years, turned over the funds to his
successors he had not substantially changed the general character
of the investments and the relative amounts placed in
each line of securities from what they were when he received
them, but an examination of the last accounts of the new
trustees show that in the three and a half years of their
trusteeship there have been made the following changes in
lines of investments:
Private Mortgages have been decreased from $110,533.22
to $96,800.
Corporate Bonds have been decreased from $181,520.63 to
$10,500.
Stocks have been increased from $49,556.50 to $207,287.13.
The interest of the University calls for the unquestionable
security of investments. That of the life tenant for the
greater yield of annual income. The stocks in question are
for the most part those of New England Railways, of whose
status but little if anything is known here. They may or may
not be safe securities, but prima facie Corporate bonds are
more stable and less speculative in value than Corporate stocks.
Whether the interests of the life tenant have been given greater
may be a matter inquiry.
The further fact that none of these trustees have ever
made any investments in state, municipal or government bonds,
the line of securities usually deemed safest, is also perhaps
a matter of just comment.
Respectfully submitted,
John B. Moon.
May 18th 1898.
On motion the Board adjourned sine die.
Secretary.
Rector
| Board of Visitors minutes October 13, 1898 | |