University of Virginia Library

Your Finance Committee, appointed May 14, 1920, consisted
of the following:

       

Frederic W. Scott, Chairman,	Richmond
John Stewart Bryan	Richmond
C. Harding Walker	Heathsville
Walter Tansill Oliver	Fairfax

who served thereon until April 26, 1922, when they were
succeeded by your present Committee consisting of

     

Frederic W. Scott, Chairman	Richmond
Paul Goodloe McIntire	Charlottesville
Edgar Lee Greever	Tazewell

Purchases

The following purchases of securities have been made by
your Committee since May 14, 1920, Viz:-

[See Page 208 for security purchases]

                                         

Amount	Security		Price Paid			Price Today		Income
$ 3,000	A.C.L. R.R. Co.	7's	1930	98.04	2,941	106	3,180	210
2,000	Patrick Young Co.	8's	1925	100.00	2,000	101	2,000	160
32,400	Royster Guano Co.	8's	1941	99.00	32,076	106	34,344	2,592
10,000	N.Y. Central Deb.	6's	1935	92.90	9,290	105	10,300	600
20,000	Nor.Pac-Gt.Nor.Jt.	6½s	1936	100.96	20,193	106	21,200	1,300
10,000	Am.Tel. & Tel. Conv	6's	1925	100.65	10,065	115½	11,550	600
6,500	Belgian 7 1/2's		1945	101.19	6,577	109	7,085	487
34,000	Int.Merc.Marine	6's	1941	81.07	27,565	97	32,980	2,040
12,000	Va.Caro. Chem.	7½s	1932	96.24	11,549	105	12,600	900
7,500	Rep. of Chili	8's	1946	99.50	7,462	104	7,800	600
10,000	Argentine Govt.	7's	1927	99.00	9,900	100	10,000	700
25,000	Albemarle County	5's	1947	100.00	25,000	100	25,000	1,250
35,000	Southern Bonded W.H.	6's	1927	99.00	34,650	99	34,650	2,100
28,300	Richmond Mtge & Loan	6's	1926	99.25	28,088	99¼	28,088	1,698
14,500	Richmond Mtge & Loan		1927	99.00	14,355	99	14,355	870
2,300	Richmond Mtge & Loan		1928	98.87	2,274	98	2,274	138
5,000	Richmond Mtge & Loan		1930	98.50	4,725	98½	4,725	300
8,000	Richmond Mtge & Loan		1931	98.38	7,870	98	7,870	480
15,000	Va. Ry & Power	5's	1934	80.25	12,037	80	12,000	750
280,500	Totals				$268,617		$282,021	$17,775

You will note from the foregoing statement that the
annual income from these securities is 6.62% on the
purchase price, while the increase in value as of June 7,
1922, is equal to 6 on the purchase price.

The income for the year 1920-21 on the Securities
held for Sundry Endowment and Other Funds, as shown on pages
12 and following of the Bursar's report, was $98,148 on a
book value of $2,196,241, or 4.4%.

Sales

The following sales of securities have been made by
your Committee during the period above mentioned, viz:-

       

$24,000	American Tel. & Tel. Convertible 6's, 1925 at 115 1/2, realizing a profit of $3,484, or 14.3% on the purchase price. These bonds were convertible into the common stock of the company at 106 and as this stock has been paying 9%, it has advanced until it recently sold as high as 123. We considered it wise to realize the profit on the original cost inasmuch as we would only have received par for the bonds if they had been held to maturity.
$ 1,000	Patrick Young Company 8% Notes, 1925, at 101
$25,000	Albemarle County 5% Bonds, 1947 at 100-7/8
$12,000	Virginia Carolina Chemical Co. 7 1/2's, 1932, at 105

Other sales and exchanges will probably be made by
your Committee from time to time whenever it may appear to
the advantage of the University to do so.

Maturities

All of the maturities falling due during the period
covered by this report have been paid with the exception of
the following:-

       

$ 2,500	Note of George T. Rison, 6%, due March 24, 1921, secured by property worth $10,000, located in Chatham, Va. Extended for 2 years.
$ 1,000	D. K. E. Corporation 6%, due June 1, 1921. Extended for one year. Now due and application for an extension of six months or a year is now pending.
$ 3,000	John L. Livers, et al, Note 6%, due Ja. 31, 1923, secured by property worth three times value of loan, located in Charlottesville. Note originally for $10,000. $4,000 paid thereon August 1, 1921, and $3,000 on September 28, 1921, and proportionate part of property released.
$50,000	Bentley K. & L. P. Stearnes Note 6%, due July 1, 1920. Secured by a large farm (1587 acres) and by town property near Pulaski, worth several times value of loan, and also secured by $50,000 Life Insurance on L. P. Stearnes, which policies are fully paid. Renewal requested for 3 years with understanding that in event of Mr. Stearns' death, loan would become due and payable. Loan has not been extended nor has it been paid, but on account of the illness of Mr. Stearnes, we did not want to foreclose the property and at the request of the family we have temporized until the present time.

Past Due Maturities

     

$ 4,000	William H. Gaines 6 Note, due October 1916, with about 3 1/2 years interest due thereon. Extended from time to time, last extension being granted in June 1920 on condition that interest would be paid, but although frequent requests have been made, no interest has been paid. Property securing note consists of 700 acres of farm land near Warrenton, on which there is a first mortgage of $8,000, our note being part of same. We are now proceeding with the other noteholder to sell off the property in small parcels and have hopes of closing it out without any loss, although it may take a year or so to clear up all the property.
$ 4,000	J. A. Edwards 6% Note, due July 8, 1916, secured by farm. Assumed by R. L. Thomas, who is expecting to sell his farm and pay off the loan.
$ 8,000	Charlottesville School Board 5% Bond, due Oct. 10, 1910. Extended by former Finance Committee until School Board issues further bonds, when these will be taken care of. Security perfectly good and interest paid regularly.

Conclusion

Your Committee has devoted much time and thought to the
handling of the various Endowment and Other Funds coming under
its control.