University of Virginia Library

The Finance Committee respectfully reports as follows:

I. On July 11th, 1947, a resolution was adopted by the Poard authorizing the payment of maintenance
charges on the President's home up to the amount of $5,000 per year, and further authorizing that
these charges be paid out of the unrestricted income of the Consolidated Endowment Funds of the University,
provided that this course met with the approval of the Finance Committee.

The Finance Committee has, with the assistance of Mr. W. Allan Perkins, Attorney for the
University, and Mr. Vincent Shea, the Bursar, carefully checked on the amount of unrestricted income
from the Consolidated Endowment Funds, and it has been ascertained that there is ample unrestricted
income to be used for the above purpose and that there is no legal obstacle to such use.

II. At the meeting of the Board of Visitors held on June 13th, 1947, the matter of the purchase
of a residence property located on Rugby Road and known as "Four Acres" for the use of Admiral
Halsey while heading the University drive for endowment funds, was referred to Rector Stettinius and
President Darden, with power to act. These gentlemen consulted the Finance Committee in regard to
this matter, and after considerable correspondence it was decided that the purchase of this residence
be made from the general income of the Consolidated Endowment Funds. The opinion of Mr. Allan Perkins
was sought as to the legality of this and he has written the Finance Committee to the effect that it
is within the power of the Board of Visitors to appropriate this income for the above stated purpose.
Inquiry was then made of Mr. Vincent Shea, the Bursar, as to whether the use of $40,000 of this income
would cramp the University in any of its other efforts, and the reply was received that this result
would not obtain. It was also ascertained that there was sufficient available unrestricted income for
this purpose.

On August 29, 1947 Mr. Allan Perkins reported to the Finance Committee that he had closed
the transaction for the purchase of "Four Acres."

III. There was referred to the Finance Committee the question of the handling of a certain
trust fund created by the will of Evelyn May Bayly Tiffany, by the trustee, the Safe Deposit & Trust
Company of Baltimore. Without going into any great detail in this matter, the trustee has proposed
that certain of the securities of the trust be sold at a profit and certain other securities be purchased
enabling the trust to have available a sufficient income so as to be able to pay the annuities
provided thereunder out of the income and thus preserve the principal of the trust which has been left
to the University upon the death of the annuitants. The members of the Finance Committee have now
studied this plan carefully and have come to the conclusion that the proposal of the trustee should
be adopted. The Committee respectfully requests that the Board pass a resolution approving the proposal
of the trustee.

IV. The State-Planters Bank & Trust Company which is acting as financial adviser for the
Board in the investment of funds under the control of the Board, has proposed that an agreement be
entered into between it and the Rector and Visitors of the University of Virginia. This agreement
is supplemental to the Agency Agreement dated December 13, 1946 now in effect between the Board and
the State-Planters Bank & Trust Company.

The State-Planters Bank & Trust Company points out that there are occasions when it is advisable
to join in the lease, mortgage, consolidation, merger, foreclosure or reorganization of some
corporation or other organization, the bonds, stocks or other securities of which are contained in
the Agency Agreement, or to pool the voting rights, or to deposit the securities with some protective
committee or some committee representing security holders, or to vote securities, whether they be
stocks or bonds, in favor of or against some such plan or reorganization, and to take and hold securities
or investments issued under such a plan or reorganization and to pay assessments involved therein.

There does not appear in the present Agency Agreement any specific authority granted to the
Finance Committee to give to the Bank instructions along these lines; nor is there in the agreement
any authority for the Bank, as agent of the Rector and Visitors of the University of Virginia, to accept
and act upon any such instructions. Of course, both of these powers might be implied, but the
trustee desires that they be specifically stated and this is the purpose of the proposed Memorandum
of Agreement. The Finance Committee has considered the matter and is of the opinion that the agreement
should be entered into. It respectfully requests that a resolution be passed authorizing and
directing the proper officers of the Board to sign, seal, attest and deliver the Memorandum of
Agreement, copy of which is attached to this report.