 | Board of Visitors minutes April 10, 1931 |  |
A special meeting of the Board was held on this date at 8:00 P. M., with
the Rector, Fred W. Scott, and Visitors Buchanan, Carson, Sidney B. Hall, McIntire,
Shackelford, Walker and Williams, and President Alderman.
The President announced the enrollment for the session, 2,512.
Upon the recommendation of the President, the following leave of absence,
promotions and elections were voted:
Leave of absence was granted Dr. Scott M. Buchanan, Professor of Philosophy,
for the session of 1931-32 (without salary) for study abroad.
Promotions; effective with the session 1931-32.
Carl Casky Speidel, Ph. D., Associate to Full Professor of Anatomy, at a
salary of $4,500.
Melvin G. de Chazeau, Ph. D., Assistant to Associate Professor of Commerce,
at a salary of $3,750.
Oreste Rinetti, Ph. D., Assistant to Associate Professor of Italian, at a
salary of $3,750.
Elections; effective with the session of 1931-32.
Dr. Tiffany J. Williams, Professor of Obstetrics and Gynecology, at a
salary of $4,500.
Ernest Jackson Oglesby, Professor of Engineering Mathematics, at a salary
of $5,000.
Herman C. Hesse, Associate Professor of Engineering Drawing, at a salary
of $3,750.
Dr. W. D. Macon, Clinical Instructor in Obstetrics, without salary.
Harold D. McEwen, Instructor in Biochemistry and Research Fellow in Surgery
and Gynecology. Salary to be paid from the Surgical Department, and will, therefore,
not appear in the general budget.
School of Public Health and Hygiene in the Department of Medicine changed to
School of Preventive Medicine and Bacteriology.
On motion, duly made and seconded, being unanimously adopted, it was
RESOLVED, by the Rector and Visitors of the University of Virginia,
That the School heretofore known as the School of Public Health and Hygiene
in the Department of Medicine, be now called the School of Preventive Medicine
and Bacteriology, this change having been recommended by the Head
of the school and approved by the Dean of the Department of Medicine, since
Bacteriology is no longer associated with the School of Pathology but is
now in the School above mentioned.
Mr. Perkins presented to the Board a report upon the gift made by Mr. John
Armstrong Chaloner by two deeds, one dated February 8, 1907, and the other dated March
12, 1913, of the property in Albemarle County, known as "Merry Mills" as a "Home for
Professors Emeritus", under which gift provision is also made by Mr. Chaloner for the
perpetual use of the swimming pool upon said property by certain persons residing in the
neighborhood thereof.
This report, which was read by Mr. Perkins, was ordered to be filed as a part
of the minutes of this meeting in order that a complete record of the whole situation
may be preserved.
The Board, being of the opinion that Mr. Chaloner's request should be complied
with, and after a full discussion of the whole matter, it was
RESOLVED, That should Mr. Chaloner see fit to institute a proceeding
in any court of competent jurisdiction, seeking to have the deeds aforesaid
declared null and void, or seeking a revocation of the trusts created thereby,
the Attorney for the University is hereby directed, in the name and on
behalf of the Rector and Visitors of the University of Virginia, to file an
answer in such proceedings in which shall be stated the fact that the University
does not desire to insist upon the validity of said deeds, or either
of them, or upon the enforcement of the trusts created thereby, and that
it leaves the determination of all questions raised in such proceedings to
the discretion of the court.
REPORT OF W. ALLAN PERKINS, ATTORNEY.
Upon the present status of gift of John Armstrong Chaloner to the
University.
Under date of January 23rd, 1905, John Armstrong Chaloner, the owner
of a tract of land near Cobham, in Albemarle County, known as "The Merry Mills",
and containing some 400 acres, conveyed said property to George Perkins and
John W. Fishburne, Trustees, to secure two bonds aggregating $4500.00 of principal,
both dated January 23rd, 1905, and both payable two years after date.
See D. B. 129, p. 493, Clerk's Office of Albemarle Circuit Court.
On the 6th day of October, 1920, notation was made on the margin
of the deed book where said deed of trust is recorded, by L. W. Wood, Attorney-in-Fact
for John Armstrong Chaloner, whereby under Section 5827 of the
Code of Virginia of 1919, the period of limitation upon said deed was properly
extended. Said two bonds have since passed by assignment and are now held
by some friend of Mr. Chaloner, whose name I am not advised of.
By a deed dated February 8th, 1907, recorded in said Clerk's Office,
in D. B. 134, p. 145, said Chaloner conveyed said property known as "The
in said deed, to The Rector and Visitors of the University of Virginia.
In said deed said Chaloner reserves a life estate to himself in
all of said property, and said conveyance is likewise made subject to a
life estate in Ernle G. Money should said Money survive said Chaloner.
It may be well here to state that said Money departed this life several
years prior to the date of this report.
But said conveyance is specifically made IN TRUST —— "as a
home for such Professors Emeritus of said University as said The Rector
and Visitors shall deem best". And said property is also made subject
to the privileges reserved to the — "gentry, i.e.- persons distinguished
by birth or position in the neighborhood, and the ladies of their families",
to use the swimming pool on said property, free of charge, on Tuesdays,
Thursdays and Saturdays.
At a meeting of The Rector and Visitors of the University held on
the 15th day of October, 1907, the following Resolution was adopted:
"Resolved that the Board of Visitors accept with gratitude
the gift to it from John Armstrong Chaloner of his property
in Albemarle County, Virginia, known as "The Merry Mills",
and that the thanks of the Board be conveyed to the generous
donor".
And by deed dated March 12th, 1913, and recorded in said Clerk's Office,
in D. B. 152, p. 42, said John Armstrong Chaloner likewise conveyed to
said The Rector and Visitors of the University of Virginia, subject to the
same trusts and conditions set out in the aforesaid deed, a tract of 6-4/10
acres of land, situated near the Chesapeake & Ohio Railway, and about one
mile east of Campbells Station, being the same land in all respects that
had been conveyed to said Chaloner by deed of Mrs. S. S. Bacon, dated March
4th, 1913, and recorded in said Clerk's Office, in D. B. 152, p. 40.
During the past year the original holders of said bonds insisted
upon payment and Mr. Chaloner, through his Attorneys, proposed that if the
University would take an assignment of these bonds he would execute a deed,
in which deed he would remove the trusts from the title to this property
created in his original deeds of gift. Upon consideration of his proposition
I was of opinion that the trusts created by Mr. Chaloner's deed of
February 8th, 1907, were of such a character that it was beyond his power
to revoke the same, and if the University was ever to claim under said deed
it must assume the burdens as well as the benefits. There were other considerations
involved in the proposition which led me to the conclusion
that it was thoroughly impracticable, and I, therefore, advised Mr. Chaloner
that while it was the desire of the University to comply with his wishes in
every respect, and to do all that we could toward the furtherance of his
plans, that in my opinion the plan proposed involved an exercise by him of
a power which he did not possess, and that we must, therefore, undertake to
reach some other solution of the difficulty.
The matter rested in this way for several months, but within the
last few weeks Mr. R. C. Walker, Attorney for Mr. Chaloner, tells me that
Mr. Chaloner is exceedingly anxious to get back the fee simple title to
"The Merry Mills", free of any and all trusts and encumbrances.
Mr. Walker believes that arrangements can be made to pay off the
indebtedness above referred to, and he also expresses himself as being of
opinion that the trusts which attach to this property under Mr. Chaloner's
deeds to the University aforesaid will be declared null and void by a
Court of competent jurisdiction in a Chancery Cause instituted for that
purpose, and the fee simple title will thereupon again become vested in
Mr. Chaloner. He even goes further than this, and expresses himself as
believing in such a suit the Court will enter a decree absolutely annulling
the deeds, which of course would revest the title in Mr. Chaloner.
Mr. Walker asks that the Board of Visitors will adopt a Resolution
to the effect that if such a suit is instituted it will interpose no
objection to the revocation of the trusts, or to the annullment of the deeds,
but that it will file an answer in which it merely states to the Court that
its interest in the matter is of such a character that it does not desire
to insist upon the enforcement of the deeds.
I can see no valid reason why the Board should not comply with
this request, although there is considerable doubt in my mind as to the
form of proceeding which Mr. Walker has in mind, and also as to the sufficiency
of any form of proceeding that might be instituted for the purpose
of revoking the trusts or of annulling these deeds. However this may be,
if you feel that the property will be of no value to the University as a
"home for Professors Emeritus", I can see no objection to the filing of
such an answer as Mr. Walker requests. The question of whether the deeds
are valid or invalid will then be for the Court to determine.
In my opinion the filing of such an answer could in no sense be
construed as an attempt on the part of this Board to convey or surrender a
vested right in real estate. Such action would, of course, be ultra vires.
The action requested is nothing more than a formal admission that this
Board does not consider a four hundred acre farm, under present conditions,
an especially suitable home for its Professors Emeritus, which is a self-evident
fact, too plain to admit of argument. Mr. Chaloner has never offered
to give us the place free of this trust, and you are not passing
upon the question of whether you would take it if he made such an offer.
I am, therefore, submitting herewith a form of Resolution, which,
if adopted, will direct that such an answer be filed if the suit in contemplation
is instituted.
With much deference to Mr. Walker's opinion as to the sufficiency
would be for this Board to say to Mr. Chaloner that if he desires
you to do so you will recommend to the next Session of our Legislature
the passage of an Act which will recite Mr. Chaloner's gift to the University,
and the acceptance thereof by The Rector and Visitors; of the fact
that during the passage of years the purpose of the gift has become no
longer practical, and therefore the Legislature revokes the action of the
Board in accepting the gift and respectfully declines to take title under
said deed. Such an Act would unquestionably have the effect of annulling
the conveyance, at least so far as the University is concerned.
I am also submitting a Resolution which provides for such an Act.
If both Resolutions are adopted, then Mr. Chaloner and Mr. Walker will be
in position to adopt either form of proceedure without further action on
your part.
Petition from the Committee on Graduate Studies, requesting that graduate students
be relieved from the payment of athletic fees was considered and, on motion, same
was not granted.
A communication from a committee of the Board of the University Y. M. C. A.
was read in which it was set forth that the financial condition of the organization made
it necessary to dispose of the unimproved lot lying north of Madison Hall, and that before
steps looking to sale were taken, an opportunity would be given the University to acquire
it. The matter was disposed of in the following resolution, adopted:
RESOLVED, by the Rector and Visitors of the University of
Virginia that a sub-committee consisting of the Rector, and Mr. Hollis
Rinehart and Mr. Virginius Shackelford, be and is hereby appointed to
confer with a committee of the Madison Hall Board concerning the disposition
of the Unimproved Madison Hall property, and report back at a
subsequent meeting of the Board.
With reference to rebuilding the Observatory Road and the building of a new road
therefrom to the west side of the Stadium, the following was adopted:
RESOLVED, by the Rector and Visitors of the University of
Virginia, that the State Highway Commission be and is hereby requested
to construct a road from the Observatory Road to the west side of the
Stadium, and to re-surface such parts of the Observatory Road as shall
be designated by the University, the University agreeing to reimburse
the State Highway Commission for the cost of materials and labor.
Statement from the Architectural commission requesting increased compensation on
plans and supervision of extension to Chemical Laboratory, and the Clark Memorial Law
Building was read and considered, and disposed of in the following resolution, adopted:
RESOLVED, by the Rector and Visitors of the University of
Virginia that the petition of the Architectural Commission for increased
compensation for plans and supervision of the addition to the Chemical
Laboratory and the Clark Memorial Law Building be and the same is hereby
referred to the Building Committee of the Board, for its action.
Report in detail of the General Athletic Association for the fiscal year ended
September 1, 1930, which had been examined and certified to as to its correctness by A.
J. Barlow, C. P. A., was received and approved, as follows:
| Liabilities | $58,128.88 | |
| Assets | 26,869.56 | |
| Deficit | $31,259.32 | |
| Income from all sources | $ 48,756.93 | |
| Expenses: | ||
| Sports | $ 8,114.65 | |
| Salaries | 28,592.75 | |
| Other expenses | 5,623.17 | |
| Depreciation on equipment | 5,615.61 | 47,946.18 |
| Net profit for the year | $ 810.75 | |
President Alderman and Senator Buchanan, appointed by the Alumni Board of Trustees
to present the recommendations of said Board adopted at a meeting April 9th with respect
to appropriations from the income of the Centennial Endowment Fund and the Jefferson Memorial
Endowment Fund, presented the said recommendations which were read and concurred in by
the Rector and Visitors.
RECOMMENDATIONS
The following recommendations are submitted:
(1) That this report and all actions taken and things done by the
officers of the Board since the date of the last annual meeting be ratified
and approved.(2) That all appropriations of income made by the Board at this
meeting be submitted to the Board of Visitors for its concurrence, as required
under the deed of gift and the charter of the Alumni Association.(3) That from the net income of the Jefferson Memorial and Centennial
Endowment Funds, over and above the expenses of administration, handling
and accounting, and any amounts which may be set aside for the purpose of
amortizing the premiums of any securities purchased at a premium, the following
appropriations be made for the fiscal year beginning July 1, 1931:129(A) From the income of the Centennial Endowment Fund.
(1) To the Alumni Association of the University of Virginia, to
be paid as and when authorized by the Treasurer, the sum of $4,000.(2) To the University of Virginia, for the special purposes
designated by certain donors to the Centennial Endowment Fund, the sum of
$3,000, or so much thereof as may be necessary, payable in equal quarterly
installments, beginning September 15, 1931.(3) To the University of Virginia, for its general purposes, the
sum of $10,000, payable in equal quarterly installments, beginning September
15, 1931.
(B) From the income of the Jefferson Memorial Fund.
(1) To the VIRGINIA QUARTERLY REVIEW, the sum of $1,000, payable
to the Business Manager of the said REVIEW, at his request.(2) To Miss Rosa T. Bilisoly, payable July 1, 1931, for services
rendered the Treasurer and Board during the periods March 15-June 30, 1930,
and during the fiscal year beginning July 1, 1930, the sum of $129.17.(3) To the University of Virginia, payable in equal quarterly
installments, beginning September 15, 1931, the sum of $40,000, from which
the University shall provide for the support of the Walter Reed School of
Pathology, The James Madison School of Law; The James Monroe School of
International Law, The James Wilson School of Political Science and Economy;
The Edgar Allen Poe School of English, and the Andrew Carnegie School
of Engineering, and make the following special allocations:(a) For the Curry Memorial School of Education, The
Barbour-Page Lecture Fund; the Isaac Cary Scholarship,
the income from the securities held in these
funds respectively by the First and Merchants
National Bank, or so much of said income as may be
necessary.(b) For such other purposes as may be specially designated
by the donors, the income arising from the
gifts made by these donors respectively.
(C) From the income of both funds.
The entire balance of the net income, after the payment of all
other appropriations, including any unexpended balances from the appropriations
hereinbefore made, to the President of the University for such purposes
as may be determined upon by him, the said balance to be set aside by the
said agents and custodians at the expiration of each appropriation period,
and to be paid out by them from time to time on the written instructions of
the President, provided, that at the next annual meeting the President shall
make a report to the Board of the purpose of purposes so determined upon by
him, and the amount expended therefor.
President Alderman presented his financial budget for the fiscal year ending July
1, 1932, copies of which had been mailed to all the members of the Board. The budget was
examined in detail, and, on motion, duly made and seconded, adopted unanimously, as per
the following summaries, the detailed budget being filed in the budget binder.
| 1930-31 | 1931-32 | |
| Estimated Revenues | $ 2,142,083 | $ 2,159,841 |
| Estimated Expenditures | 2,132,793 | 2,154,808 |
| Estimated Surplus | $ 9,290 | $ 5,033 |
| Income Estimates: | 1930-31 | 1931-32 | Increase | Decrease |
| FROM ENDOWMENT INCOME AND GIFTS: | ||||
| I. Endowments - Unrestricted | $ 241,926 | $ 235,512 | $ | $ 6,450 |
| Endowments - Restricted | 232,996 | 232,509 | 487 | |
| II. Students' Loan Notes | 13,600 | 13,600 | ||
| III. Gifts | 195,950 | 174,950 | 21,000 | |
| IV. Carnegie Foundation | 16,000 | 16,000 | ||
| V. Institute of Public Affairs | 16,400 | 20,250 | 3,850 | |
| VI. Pantops Farm | 5,250 | 5,250 | ||
| VII. Miscellaneous | 12,600 | 12,600 | ||
| Total Endowment Income & Gifts | $ 734,758 | $ 710,671 | $ 3,850 | $ 27,937 |
| FROM PUBLIC FUNDS: | ||||
| I. Students Fees and Rents | $ 511,400 | $ 514,800 | $ 3,400 | $ |
| II. Summer Quarter | 60,675 | 56,800 | 3,875 | |
| III. Hospital | 209,300 | 211,800 | 2,500 | |
| IV. Commons | 65,000 | 68,670 | 3,670 | |
| V. Blandy Farm | 13,000 | 10,500 | 2,500 | |
| VI. Lectures and Entertainments | 7,800 | 7,800 | ||
| VII. Athletic Fees | 36,000 | 36,000 | ||
| VIII. Miscellaneous | 45,430 | 46,180 | 750 | |
| Total Public Funds | $ 948,605 | $ 952,550 | $ 10,320 | $ 6,375 |
| Total Revenues | $1,683,363 | $ 1,663,221 | $ 14,170 | $ 34,312 |
| FROM STATE APPROPRIATION | $ 458,720 | $ 496,620 | $ 37,900 | $ |
| Total Available Income | $2,142,083 | $ 2,159,841 | $ 52,070 | $ 34,312 |
| Net $ 17,758 |
| Expenditure Estimates. | 1930-31 | 1931-32 | Increase | Decrease | |
| I. | Administration | $ 73,755 | $ 75,185 | $ 1,430 | $ |
| II. | College and Graduate | 465,090 | 474,940 | 9,850 | |
| III. | Medicine | 186,593 | 190,363 | 3,770 | |
| IV. | Engineering | 54,625 | 58,075 | 3,450 | |
| V. | Education | 49,140 | 48,895 | 245 | |
| VI. | Law | 50,165 | 51,685 | 1,520 | |
| VII. | Physical Education | 24,397 | 24,947 | 550 | |
| VIII. | Summer Quarter | 110,125 | 99,450 | 10,675 | |
| IX. | Library | 73,550 | 75,200 | 1,650 | |
| X. | Extension | 57,970 | 58,010 | 40 | |
| XII. | Buildings and Grounds | 143,418 | 148,360 | 4,942 | |
| XIII. | Power Plant | 58,883 | 53,941 | 4,942 | |
| XIV. | Interest and Sinking Fund | 50,100 | 50,220 | 120 | |
| XV. | Publicity & Publications | 7,050 | 7,050 | ||
| XVI. | Pensions and Annuities | 26,300 | 28,300 | 2,000 | |
| XVII. | Scholarships | 163,703 | 163,953 | 250 | |
| XVIII. | Students Loans | 16,600 | 16,600 | ||
| XIX. | Lectures and Concerts | 12,396 | 12,396 | ||
| XX. | Commons | 65,000 | 68,670 | 3,670 | |
| XXI. | Laundry | 12,150 | 11,750 | 400 | |
| XXII. | Institute for Research | 32,500 | 30,000 | 2,500 | |
| XXIII. | Blandy Experimental Farm | 18,934 | 20,249 | 1,315 | |
| XXV. | University Press | 3,000 | 3,000 | ||
| XXVI. | Institute Public Affairs | 16,400 | 20,250 | 3,850 | |
| XXVII. | Athletic Fees | 36,000 | 36,000 | ||
| XXVIII. | Pantops Farm | 4,860 | 4,860 | ||
| XXXI. | Hospital | 294,789 | 297,159 | 2,370 | |
| LXXXII. | Drug Addiction Laboratory | 19,600 | 19,600 | ||
| LXXXIII. | Mountain Lake Biological School |
5,700 | 5,700 | ||
| Total | $2,132,793 | 2,154,808 | $ 40,777 | $ 18,762 | |
| Net $ 22,015 |
Mr. Scott, Chairman of the Finance Committee, presented a report concerning the consolidation
of the endowment funds of the University for the purpose of more efficiency in
their care and study and for the investing of the cash belonging to the many funds. His action
in the matter was approved in proper resolution - resolution and report shown below:
RESOLVED, by the Rector and Visitors of the University of Virginia,
That this Board approves of the action of the Chairman of the Finance Committee
in having the endowment funds of the University under the control of this Board
consolidated into one general fund in order that the investments could be more
carefully guarded, the uninvested cash more easily and profitably invested, that
the several funds be not reduced by reason of decline in values or other loss in
their securities and the general accounting work necessary in keeping the proper
records of the endowments be materially lessened.
of the University of Virginia,
The endowment funds of the University under the control of this Board
having increased in numbers to approximately 80 it was found desirable to follow
the practice of other educational institutions having a number of such
funds and consolidate the securities and uninvested cash belonging to these
several funds into one fund to be known as the Consolidated Endowment Funds.
The advantages to be gained by such consolidation were several, to-wit:
1. In several of the funds it was found that similar securities were
held and these deposited in two or more of the University's four depositories,
and if said securities were brought together in the general fund and deposited
all in one depository, they could be looked after to better advantage to the
University.
2. In nearly all of the 80 funds there were small uninvested cash
balances that could not be readily invested, and if these were brought together
in one fund, investments could be found for them.
3. With each fund separately invested any loss sustained by depreciation
in its securities had to be borne by it alone which might prove a
serious loss to the respective fund and the object sought by the donor in establishing
it.
4. The work on the part of the Bursar's Office to keep the records of
transactions would be materially lessened.
In view of the conditions set out above and the advantages to be gained
by consolidating our endowment funds, the Bursar was instructed to proceed with
the necessary accounting to effect the end desired.
The first step in perfecting the plan was a revaluation of all the securities
so that their respective funds might properly represent their true
values when consolidated with the other funds, where securities had advanced since
their original purchase the respective fund should have advantage of such advance:
The assistance of my office was placed at the disposal of the Bursar in securing
the values as of August 1, 1930, and my secretary who keeps a complete
record of all the securities belonging to the said funds, worked with
the Bursar in arriving at the proper values at which the several securities
should be brought into the consolidation.
I now beg to report that the task has been completed, and that I
have found it much easier to analyze the several securities and to keep them
in shape so as to be responsive to changing economical conditions, that the
uninvested cash held by each depository is in one amount instead of divided
into from 4 to 25 separate funds.
A Profit and Loss account has been set up to take care of profits or
losses arising from sales and calls, and I am pleased to be able to report
that this account, at present, shows a balance on the profit side.
The income from all the funds held in the consolidated fund will be
distributed at the end of the year in proportion as the respective funds bear
to the whole consolidated fund.
Funds held by trustees, such as the duPont, McIntire Business and
Commerce, Alumni, Centennial, Folkes Scholarships, etc., were not, of course,
brought into this consolidation as they are not under the jurisdiction of this
Board and are, furthermore, separately invested and held by separate trustees.
Chairman, Finance Committee.
The meeting then adjourned.
Rector
Secretary.
| Board of Visitors minutes April 10, 1931 | |