Caption: Board of Trustees Minutes - 1938
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292 BOARD OF TRUSTEES [June 9 U n d e r the terms of the deed of gift, this fund must be invested separately. This change will make a considerable increase in the income of the fund. Finance Committee: OSCAR G. MAYER K A R L A. MEYER L O U I S C. MOSCHEL On motion of Mr. Cleary, this sale of securities and reinvestment of funds was authorized. RECOMMENDATION OF FINANCE COMMITTEE CONCERNING INVESTMENT C O U N S E L M r . M a y e r reported also as follows: T h e Comptroller has placed before the committee the difficulties with which he is faced with respect to securing adequate information on problems relating to the investment of our endowment funds. H e feels the need of a reliable source which will supply information at all times both as to desirable changes in securities held and as to desirable purchases when funds require investment. After carefully reviewing the matter the committee is convinced that some regular arrangement for assistance of this kind should be concluded. T h e Comptroller has reviewed the problem with several Chicago banks and has secured proposals from them for this service. T h e University now has a custodial agreement with the First National Bank of Chicago which is also the depository of University funds in the hands of the University Treasurer. T h e custodial arrangement provides for safekeeping of all securities and collection of interest coupons. The cost of this service is approximately $425 a year. T h e First National Bank is willing to extend this service to include all necessary advice concerning investments at a total cost, based on the present total of our investments, of not over $1,000 a year. This amount is considerably less than the regular rates charged for this service in Chicago banks and is as good a proposal as any bank has offered. Under this arrangement our list of securities would be checked continuously by the Trust Department of the bank and whenever any change is found to be desirable a recommendation would be submitted to the finance committee. W h e n funds become available for investment, recommendations for investment also would be submitted. All such recommendations are made from lists approved by investment committees of the bank of which the T r e a s u r e r of the University, Mr. F r a n k M. Gordon, is a member, so that the benefit of his advice on our particular problem would always be available. No purchases or sales of securities would be made without approval of the finance committee or the Board of Trustees. T h e committee recommends that this arrangement be authorized beginning July 1, 1937, and that provision for the added expense of approximately $600 a year be included in the budget for 1937-1938. T h e Finance Committee of the Board of T r u s t e e s : K A R L A. MEYER L O U I S C. MOSCHEL OSCAR G. MAYER, Chairman On motion of Mr. Mayer, these recommendations were adopted. RECOMMENDATION OF FINANCE COMMITTEE FOR SALE OF SECURITIES Mr. Mayer presented also the following report: T h e Finance Committee requests authority to sell the following low-yield securities as favorable opportunity is presented, and to reinvest the proceeds in other securities of quality similar to those previously approved by the B o a r d :
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