Proceedings of the Board of Regents (1939-1942)

DECEMBER MEETING, 1940 489
in the donee full title thereto in trust, without any right of revocation in the donor
whatsoever, the following list of securities as of the present values set forth, to-wit:
COMMON STOCKS: Shares
Belt Railroad & Stock Yards............................... 200 $ 11,200.00
Fletcher Trust Company, Indianapolis...................... 100 15,000.00
Merchants National Bank, Indianapolis..................... 50 13,000.00
First National, Boston.................................... 100 4,875.00
Chase National, New York................................ 100 3,700.00
National City, Cleveland.................................. 120 3,600.00
National City, New York................................. 50 1,500.00
Bank of America, California.............................. 300 12,000.00
Union Trust Company, Indianapolis........................ 50 15,000.00
Lincoln Life Insurance.................................... 200 6,400.00
North Western National Insurance......................... 50 6,500.00
Continental Insurance Company........................... 300 10,800.00
Fidelity Phoenix Insurance Company....................... 300 10,800.00
American Alliance Insurance............................... 400 9,200.00
Northern New York Insurance Company.................... 100 9,750.00
Swift International....................................... 100 3,200.00
General Electric.......................................... 100 4,000.00
Van Camp Milk.......................................... 200 2,200.00
$142,725.00
PREFERRED STOCKS:
Indianapolis Water....................................... 190 19,570.00
Indiana Hotel Company................................... 155 15,500.00
Kentucky Utilities....................................... 10 1,000.00
$ 36,070.00
BONDS:
New York City........................................ 9 8,640.00
Government of Canada-52................................ 6 6,000.00
Toledo Laundry Building mortgage note..................... 10,000.00
$ 24,640.00
T otal............................................... $203,435.00
This agreement, and the transfer of the aforesaid securities, is not made in contemplation of death.
II. The donee hereby acknowledges the receipt of said securities and accepts the
transfer thereof as the principal fund of an irrevocable trust for the uses and purposes
hereinafter expressed and covenants and agrees that from the date hereof it will administer said trust fund in perpetuity, segregated from all other funds, as a separate endowment fund, for a Chair or Professorship in the field of Philosophy in the College of
Literature, Science, and the Arts of the University of Michigan, to be designated as "The
James B. and Grace J. Nelson Endowment for the Teaching of Philosophy"; and upon
the following further terms and conditions:
(a) In the administration of said fund the donee shall have the right to sell, exchange
or otherwise dispose of any or all of said securities at such, time, for such price or in
such manner as, in the discretion of the donee, shall be deemed wise and prudent in the
exercise of its best business judgment, and from time to time make such reinvestment
thereof in other income-producing securities as may become necessary or desirable, having in mind at all times the purpose to preserve the principal of said trust fund intact and
safely invested, and, if possible, consistent with safety, so invested as to produce an
income substantially equal to the income now currently being realized from the securities
received from the donor; provided, however, that during the life of the donor the donee
will consult and advise with the donor as to any sales, exchanges or reinvestments which
involve the reinvestment of the principal of said fund.
Not in limitation of the foregoing powers but as explanatory of the present intention
of the parties, it is understood that, except as retired or redeemed by the issuing corporations, the present investments of said fund will be held by the donee so long as good
business judgment and prudent management shall permit and such holding shall not be
deemed to be in any respect a breach of trust although some of said securities may not
be eligible as trust investments under applicable statutory provisions: and provided,
further, that the donee shall not be considered responsible for any depreciation in any
of the present investments of said fund, or in any of the investments made by it under
the direction of the donor.
(b) The donee covenants and agrees to pay to the donor, now sixty-nine years of age,
to Jean Nelson Penfield, sister of the donor, now sixty-eight years of age; to Julia Jean
Nelson Rudd, daughter of the donor, now forty-five years of age, and to Grace J. Nelson,
wife of the donor, now seventy-one years of age, sometimes hereinafter referred to collectively as the "annuitants" for and during the term of their natural lives and the life
of the survivor of them, an annuity in the amount and in the proportions and order
of succession as among said annuitants as follows:
(1) The amount of the annuity payable in any year shall be a sum equal to the
income from said trust fund received by the donee during such year, without the deduction of any fee or charge by the trustee for administering said trust, which annuity shall
become due and payable semi-annually after the date hereof.