University of Virginia Library

At the last meeting of the Board of Visitors report was made by the Bursar of the receipt
by the University of the gift from the late Christopher G. Memminger of the sum of $302,775.00, of
which $186,775.00 was represented by securities and $116,000.00 in cash, and these funds were turned
over when and as received to State-Planters Bank and Trust Company for handling as a part of the
Consolidated Endowment Fund of the University

Prior to the delivery of the securities, the Trustees of the Memminger Estate had acquainted
your Committee with what securities were being held by it, with the view of ascertaining whether the
University, as beneficiary of the trust, wished them sold and their cash values paid, or whether it
would accept all or any part of such securities in kind. After full consultation with the Trust Investment
Department of State-Planters Bank and Trust Company, and acting upon its advices, your Committee
informed the Trustees of the Estate that those of the securities which were subsequently delivered
to it in kind would be accepted by the University, and such as were not acceptable to it we
understand were subsequently sold by the Trustees and the proceeds of their sale constitute a part
of the cash subsequently paid to the University

In view of the large amount involved in this generous bequest, your Committee has felt it
both proper and appropriate to submit to the Board of Visitors a detailed statement showing the
names, par amount, market value and yield at the time of their receipt, and the estimated annual
income from each of the securities so delivered by the Trustees, in the aggregate amount of $186,775.00,
as well as the names of the stocks, their aggregate cost and estimated annual return on the securities
in which the $116,000.00 in cash was invested, and in order accurately and completely to report these
facts, have requested State-Planters Bank and Trust Company to make a detailed report to your Committee
for its submission to the Board of Visitors

Such a report, bearing date November 15, 194, is hereto attached and, as it is self-explanatory,
will not be commented upon except to point out that, as indicated therein, the present
estimated annual yield upon the securities delivered in kind is 4.51% and the present estimated yield
upon the common stocks purchased is 5.80%, giving an average yield of about 5% on the aggregate value
of the Memminger bequest

We are pleased to give you this special report with reference to the Christopher G.
Memminger Estate Inheritance which consisted of the following:

                                     

	Bonds	Inventory Value at time inheritance vested		Market Value and Yield at time of actual receipt		Estimated Annual Income
25,000	Appalachian Electric Power 3-1/4%, 12/1/70	$ 26,562.50	106-1/4	107-1/2	2.73	$ 812.50
20,000	Public Service Electric and Gas 3-1/4%, 7/1/68	21,450.00	107-1/4	108-1/2	2.68	650.00
24,500	U.S. Savings 2-1/2%, Series G, 12/1/56	24,500.00	100	100	2.50	612.50
		72,512.50
	Preferred Stocks
120	American Can Co. 7%	20,970.00	174-3/4	185	3.78	840.00
100	American Tobacco Co. 6%	14,187.50	141-7/8	150	4.00	600.00
100	E.I. duPont de Nemours $4.50	12,075.00	120-3/4	122	3.69	450.00
200	General Motors $5.00	24,950.00	124-3/4	126	3.97	1,000.00
200	Radio Corp. of America $3.50	14,500.00	72-1/2	69-3/4	5.02	700.00
		86,682.50
	Common Stocks
280	General Motors Corp.	17,220.00	61-1/2	61-1/2	8.94	2,240.00
370	Public Service Electric and Gas 1.40 dividend preference	10,360.00	28	28	5.0	518.00
		27,580.00
	Sub-Total	186,775.00				$8,423.00
	Cash	116,000.00				(Yield 4.51%)
	Total	$302,775.00

The investment of the cash was approved by the Finance Committee as follows:

                         

	Common Stocks	Cost		Estimated Annual Income
370	shares American Natural Gas Company	@ 27-3/8	$ 10,225.26	$ 444
300	shares American Gas and Electric Company	@ 46-1/4	13,966.89	900
100	shares Commonwealth Edison Company	@ 27-3/8	2,761.19	150
100	shares Continental Insurance Co.	@ 64-1/4	6,457.43	220
200	shares Firemen's Insurance Company of Newark	@ 18-1/4	3,650.00	100
1,000	shares Marshall Field and Company	@ 22-1/4 to 23-5/8	23,266.86	2,000
400	shares Phillips Petroleum Company	@ 59 to 59-5/8	23,852.72	1,200
290	shares Standard Oil of California	@ 70 to 70-1/8	20,411.73	1,160
52	shares Standard Oil of New Jersey	@ 71-3/8	6,597.59	322
91	shares Texas Company	@ 60-7/8	5,569.40	273
			$116,759.07	$6,769
				(Yield 5.80%)

From the foregoing it will be observed that the estimated annual income on the securities
received in kind and on the investment of the cash aggregates $15,192.00, which is an average yield
of 5% on the Memminger Inheritance. In figuring this estimate of the annual income it should be recorded
that we have used current dividend rates effective in 1949 including extras on the common
stocks. It seems fair therefore to expect some fluctuation from year to year in the income from
common stocks, particularly in view of the very favorable extra dividend declared by General Motors
Corporation this year.

I think it should be stated that the securities which were received in kind were selected
from the inventory of the Memminger Estate and were considered suitable for retention, both from
the standpoint of the investments themselves and from the standpoint of how they would fit into the
portfolio of the University of Virginia. In choosing the investments for the cash consideration
was given to the investments already on hand and the diversification of the Consolidated Endowment
Funds and in every instance except one the new investments represented additions to units already
on hand so as to round them out to more normal size. The only new unit introduced was the Marshall
Field and Company common stock. That explanation will explain the rather odd number of shares of
some of the investments selected.