Proceedings of the Board of Regents (1936-1939)

534

SPECIAL MAY MEETING, 1938

1931 of the State of Michigan, having its principal office in the City of Detroit,
County of Wayne, State of Michigan, as Donor, and The Regents of the University of Michigan, a body corporate created by and existing under the provisions of the Constitution of the State of Michigan, having its principal office in
the City of Ann Arbor, County of Washtenaw, State of Michigan, as Donee,
WITNESSETH:
WHEREAS, an Agreement, hereinafter called "Original Agreement," dated
the 7th day of September, 1935, has been made between the above named Donor
and Donee; a Supplemental Agreement dated the 1st day of November, 1935, has
been made between the same parties, enlarging and/or modifying certain provisions of said Original Agreement, leaving the remainder thereof in full force
and effect, and a Second Supplemental Agreement dated June 17, 1937, has
been made between the same parties, providing for the establishment and maintenance of an Arthritis Research Unit at the University of Michigan for the
prevention, cure, and mitigation of arthritis; and,
WHEREAS, said parties desire to further enlarge and/or modify certain provisions of the said Agreements heretofore executed between them;
Now, therefore, it is Agreed between the said parties as follows:
1. Donor agrees to grant, transfer and deliver to Donee forthwith and
Donee agrees to accept bonds, securities and cash of the aggregate fair market
value of Five Hundred Thousand Dollars ($500,000.00) as of the date hereof,
a schedule of which bonds, securities, and cash is hereto attached and made a
part hereof and marked Exhibit "A"; the principal of said bonds and securities
and accrued interest thereon to the date hereof, and the reinvestments and proceeds thereof, are hereinafter sometimes referred to as "Grant." The accrued
interest on said bonds and securities as of the aforesaid date shall be considered
as and is part of the principal of this Grant.
2. The purpose of said Grant is to establish and maintain a Sociological
Research Unit in the Horace H. Rackham School of Graduate Studies of the
University of Michigan for the study and demonstration of Vocational Guidance,
character-building and youth development activities or projects; of the trends
and procedures in the care of dependent and neglected minors, and of juvenile
delinquency, and of all sociological and community problems in a broad sense.
Such studies and demonstrations shall be carried on for the first five (5) years
from the date hereof primarily in Flint, Michigan, and, so far as may be done
during that period, in cooperation with the Flint Community Association, its
Institute of Research and Planning, and other social agencies in said City. The
Board of Governors may, however, in their discretion, allocate any part of the
income herefrom to other communities for said purposes. Publication of the results of such researches shall be made from time to time and shall be made
available to other communities.
Said Research Unit shall be under the supervision and control of the Board
of Governors of the Horace H. Rackham School of Graduate Studies of the University of Michigan, described in said Original Agreement.
3. Except as hereinafter otherwise expressly provided, the powers, duties,
and obligations of and the limitations and restrictions upon Donee, relating to
the holding, management, investment and reinvestment of the principal of the
Four Million Dollars ($4,000,000.00) Endowment Fund described in said Original
Agreement shall be applicable also to the grant created by this instrument just as
if expressly repeated herein; Provided, however, that until the time hereinafter
fixed, this grant shall be kept separate and no part thereof shall be pooled or
commingled with any other Trust Fund or Endowment jFund. It is the intent
of this Agreement that no part of this grant (except the income thereof) shall be
consumed or used in the maintenance of said Unit or otherwise and that said grant
shall remain intact as nearly as possible.
4. So long as said Research Unit is in existence, the income from said
grant shall be used exclusively for the benefit of said Research Unit. Researches
may be comprehensive in scope without limitation, provided the subject matter
is reasonably related to the purposes of the grant. Scholarships and fellowships
for work in said Research Unit may be granted out of said income in the
discretion of said Board of Governors.
The detailed programs, including the full descriptions of the contemplated
studies, investigations and work and the budgets for researches and expenditures
of said Research Unit shall be submitted to the Board of Governors of the
Horace H. Rackham School of Graduate Studies, and the expenditure and
allocation of said income shall be directed exclusively by said Board.