Proceedings of the Board of Regents (1939-1942)

488

DECEMBER MEETING, 1940

STOCKS
Shares
200 General Motors Corporation, $5.00 Series Cumulative Preferred. Purchased
at 125, to yield 4.00%. Total book value, $25,000.00.
SALES
BONDS
15M Louisville & Nashville Railroad Company, Series "C," First and Refunding,
4V2%, dated August 1, 1921, due April 1, 2003. Sold at 98.12. Book value,
$14,712.50; sales price, $14,718.45; profit, $5.95. Moody's rating "Baa."
7M Pennsylvania Railroad Company, General Mortgage, Series "C," 334 %,
dated April 1, 1920, due April 1, 1970. Sold at 98.25. Book value, $6,877.50;
sales price, $6,877.36; loss, $.14. Moody's rating "A."
14M Pennsylvania Railroad Company, General Mortgage, Series "E," 44 %,
dated July 1, 1934, due July 1, 1984. Sold at average price of 102.96. Book
value, $14,415.68; sales price, $14,414.70; loss, $.98. Moody's rating "A."
Actions of the Executive Committee were approved and ratified
as follows (p. 451):
November 20, 1940
Present, President Ruthven, Regent Cook, and Regent Shields.
The committee received and accepted, with an expression of grateful thanks
to the donor, the offer by the Woman's Auxiliary of the Washtenaw County
Medical Society of the sum of $100 to establish for the University year 1940 -1941 the Lou Cummings Scholarship of the Woman's Auxiliary of the Washtenew County Medical Society under the following terms and conditions:
1. The scholarship is to be administered by the Executive Committee of the Medical School.
2. Candidates for this scholarship must be worthy and needy upperclassmen in
good standing in the Medical School, and not of foreign birth. This scholarship carries
with it no obligation to repay. However, if the recipient should later wish to make a
whole or partial repayment, the money so derived is to be offered again on the same terms.
November 22, 1940
Present, President Ruthven, Regent Cook, and Regent Shields.
The committee considered a trust agreement proffered by Mr. James B. Nelson,
of the class of 1893 Law, having for its ultimate object the establishment of an
endowed professorship in philosophy in the University. After one or two modifications, which have been incorporated in the agreement, the committee authorized signature in behalf of the Regents, with appropriate expressions of thanks
to Mr. Nelson. Mr. Nelson has spent most of his life in, Indiana but is now a
resident of Florida. The first conference between him and his attorney and the
president, secretary, and attorney of the Board, took place in June, 1940, and
discussions by letter and otherwise have continued. It was desirable to sign the
agreement in order to complete transfer of the securities before December 1.
The trust agreement with Mr. James B. Nelson is as follows:
TRUST AGREEMENT
This declaration of trust and agreement made and entered into by and between James
B. Nelson of Dade County, Florida, hereinafter referred to as the "Donor" and The
Regents of the University of Michigan, a constitutional corporation created by the
constitution of the State of Michigan, having the control and management of the University of Michigan, at Ann Arbor, Michigan, hereinafter referred to as the "Donee,"
WIT NES SET H:
That whereas it is the desire of the donor to provide an ample endowment for a
Chair or Professorship in the field of Philosophy in the College of Literature, Science,
and the Arts of the University of Michigan and for the accomplishment of such purpose
has proposed to create such endowment fund by the transfer to the donee of certain
securities now held and owned by the donor of the estimated fair present value of Two
Hundred Thousand Dollars $200,000.00) from which the now current annual income is
in excess of Nine Thousand Dollars ($9,000.00), in an irrevocable trust, upon the terms,
conditions and agreements hereinafter set forth, and
Whereas, the donee believes that such an endowment upon the terms offered will be
of benefit to the University and desires to accept said proposed trust:
Now, in consideration of the premises and the mutual covenants and undertakings
herein contained it is agreed by and between the parties hereto as follows:
I. Concurrently herewith the donor shall transfer and deliver to the donee and vest