LIBRARY OF CONGRESS 014 434 127 2 ^ REPORT THE ORIGIN, CONSTITUTION, AND PRESENT STATUS SEVERAL FUNDS AND TRUSTS The Historical Society of Pennsylvania IN WHICH IT IS BENEFICIALLY INTERESTED ACCOMPANYING THE ANNUAL REPORT OF THE COUNCIL OF THE SOCIETY FOR THE YEAR ENDING DECEMBER 31, 1804 Ionian instTii^ ^om] Wu':ev>«^ it//V -:, 1914 ^5*0 5" THE ORIGIN, CONSTITUTION, AND PRESENT STATUS OF THE SEVERAL FUNDS AND TRUSTS OF THE HISTOEICAL SOCIETY OF PENNSYLVANIA OR IN WHICH IT IS BENEFICIALLY INTERESTED. (In accordance with the directions of the Council of the Society the following statement was annexed to its annual report for the year ending December 31, 1894, for the information of the members of the Society.) I. General Fund. Prior to the creation in 1877 of the Endowment Fund, all legacies, donations to the Society for the purposes of investment but for no specific object, and life membership payments were carried by the Treasurer of the Society to a separate account called the General Fund. The investments thereof have been made in the corporate name of the Society, and the interest therefrom is applied generally for its uses. This fund amounted on December 31, 1894, to . . $11,000 00 Which sum is derived from : Legacy of Paul Beck Donation of the Athenian Institute Legacy of Peter S. Du Ponceau Legacy of Thomas Sergeant , Legacy of George Chambers Legacy of Jesse George Legacy of Mrs. Eliza Gilpin Life membership account Profits on investments, etc. . 11. The Publication Fund. This, the first of the Special Funds established by the Society, was originated by virtue of the following resolutions adopted at a meeting of the Society held February 13, 1854, viz. Whereas, The publications by the Society, notwithstanding the valu- able matter they contain, are a heavy drain upon its funds, and are unsatisfactory in their form because of their liability to loss; and it being desirable to secure a permanent efficiency in the mode of pre- serving the materials of history ; be it . . $100 00 te . 350 00 . 200 00 100 00 100 00 1,000 00 5,100 00 . 3,616 00 434 00 $11,000 00 2 Funds and Trusts of the Historical Society of Pennsylvania. Resolved, That any person, member or other, who shall pay to the Treasurer the sum of twenty dollars for that purpose, shall be, during his life, entitled to one copy of each book or other matter published by the Society subsequent to the date of contribution. Resolved, That the Treasurer open an account under the head of Publication Fund, in which shall be entered all payments for this object and contributions thereto, as also the sums received from time to time from the sale of the Society's publications. Resolved, That the payments and contributions to the Publication Fund be invested at convenient times in good securities, and that the interest accruing thereon be the only money from that fund to be used in the expenses of publication. At a meeting of the Society held May 8, 1854, it was Resolved, That George W. Norris, M.D., John Jordan, Jr., and Thomas S. Mitchell be constituted Trustees of the Publication Fund, with power to invest the same on good security, and apply the income for the objects of said fund, as stated in the resolutions of February 13, 1854. By resolution of the Society dated April 13, 1857, the constitution of the fund was changed, and provision made that in every second year after 1856 one Trustee of the fund should be elected by the Society upon the nomination of the Executive Committee, and that vacancies occurring in the mean time should be filled in a similar manner. It was also then provided that all investments of moneys by the Trustees of the fund should be made in the corporate name of the Society, and that the Trustees should annually present full reports in writing to the Society. In 1866 the amount of the subscription to the fund was increased to twenty-five dollars. The Trustees of the Publication Fund of The Historical Society of Pennsylvania, elected by the Society (hereafter by the Council), now consist of: Charles Hare Hutchinson, elected to serve until May, 1896. Hon. James T. Mitchell, elected to serve until May, 1898. Charles J. Still6, elected to serve until May, 1900. The capital of the Publication Fund on December 31, 1894, amounted to $36,964 75 Which sum is derived from : Life subscription account . . $36,364 75 Legacy of James Hamilton . $500 00 Legacy of Miss Anne Willing Jackson 100 00 600 00 $36,964 75 Funds and Ih^usts of the Historical Society of Pennsylvania. 3 III. The Building Funds and Eeal Estate Account. The "First Building Fund" was established in pursuance of a reso- lution of the Society of August 13, 1855, which provided for the col- lection of money for the erection of a building for its use, the amount to be held by the Trustees of the Publication Fund, and the interest arising therefrom to be devoted to the same purpose as the interest of the Publication Fund until the capital of that fund should amount to $20,000, whereupon the capital of the two funds was to be separated, and the interest arising from the Building Fund was to be added to its capital until the entire fund should be needed to furnish the Society with a fire-proof building. Subscriptions amounting to $4950 were collected for this purpose, and when the capital of the Publication Fund reached $20,000, the funds were separated, and the interest of the Build- ing Fund was added to the capital until the building at Locust and Thirteenth Streets was eventually purchased as hereafter stated. As it was found impossible to raise sufficient funds to erect a building entirely fire-proof, and as the growth of the Society required more ex- tensive quarters than those it had been occupying in the Athenaeum Building, at the corner of Sixth and Adelphi Streets, since the year 1848, a subscription was taken up, under a resolution of the Council of Jan- uary 25, 1869, with the object of furnishing the Society with more com- modious quarters. While subscriptions for this purpose were being solicited, a building known as the " Picture House," originally erected for the accommodation of Benjamin West's painting of " Christ Heal- ing the Sick," situated on the south side of Spruce, between Eighth and Ninth Streets, on the grounds of the Pennsylvania Hospital, was in 1871 offered to the Society at a nominal rent for ten years, the Society to make whatever alterations were necessary to render it suitable for its needs. The subscriptions which had been paid in under the resolution of Council of January 25, 1869, amounting to $5825, were invested, and became known as the "Second Building Fund," the interest arising therefrom being added to the capital until the property at the corner of Locust and Thirteenth Streets was purchased in the year 1882. The uncollected subscriptions under the resolution of January 25, 1869, were, with the consent of the subscribers, applied, when paid, to the improve- ment of the Spruce Street building. All other outlay for the alteration, fitting up, and furnishing of the same, over and above the amounts con- tributed for the specific purpose, was paid for out of the general funds of the Society not held by trustees for special purposes. In November, 1882, a portion of the property now occupied by the Society, at the southwest corner of Locust and Thirteenth Streets, originally built in the most substantial manner for Johu Hare Powell, and subsequently, for many years, occupied as a residence by General Robert Patterson, the lot containing in front on Locust Street ninety- five feet and in depth on Thirteenth Street one hundred and twenty 4 Funds and Trusts of the Historical Society of Pennsylvania. feet, was offered to the Society for $50,000. Steps were at once taken to raise a sufficient amount for the purchase and alterations of the prop- erty, and the sum of $67,601.34 was readily obtained. The house and lot, together with thirty feet additional to that first offered, adjoining it on the west, were accordingly purchased. The securities of the " First Building Fund" were sold, realizing $8381.21, and those of the "Second Building Fund," $14,115.44. These sums added to the $67,601.34, col- lected as above mentioned, and money received from interest on de- posits, the sale of old material, etc., amounting to $1870.92, together with $5500 borrowed from the General Fund of the Society, covered the entire cost of the hall and buildings, with the alterations of the same, as at first adapted to the Society's use. In accordance with the provision that the building erected with the proceeds of the " First Building Fund" should be fire-proof, the money of that fund was used in constructing the northeastern wing of the building at the corner of Locust and Thirteenth Streets. In the year 1886 the late Joseph E. Temple, who had been one of the contributors for the purchase of the building, and who had watched with interest the rapid growth of the Society, expressed the opinion at one of its social receptions that before long the Society would need ad- ditional room, and that to provide for this contingency and for protec- tion against fire it should secure the lot of the width of twenty-five feet which still remained vacant adjoining its building on Locust Street on the west. The price asked for the lot was $13,000, of which sum he offered to contribute $5000 if the Society would raise the balance. The Misses Cope, the owners of the lot, generously contributed $2000, and in a short time the entire sum, with $732.50 in addition, was obtained. In 1889 the late John Jordan, Jr., a life-long benefactor of the So- ciety, who saw its growing needs, presented the Society with $15,000 for the erection of the fire-proof building on the southern part of the Thir- teenth Street front of its property, the only condition being that if the Society should move from its present location and the money received from the sale of its present building should not all be required for its future quarters, the $15,000 which he then presented should be trans- ferred to the Trustees of the Library Fund and the interest used for the purchase of books. From this it will be seen that the cost of the hall, buildings, and ground containing one hundred and fifty feet on Locust Street and one hundred and twenty feet on Thirteenth Street, as now occupied by the Society, amounted to $126,201.41, all of which money was contributed by its members for purposes for which it has been used, with the ex- ception of $5500 borrowed from the General Fund of the Society, which it is hoped will some day be repaid. The title to the hall, buildings, and lots of ground stands in the name of " The Historical Society of Pennsylvania." Funds and Trusts of the Historical Society of Pennsylvania. 5 IV. The Gilpin Fund. This fund is derived from the bequest of the Honovable Henry D. Gilpin, contained in his will, proved at Philadelphia February 3, 1860, to the President and the eldest Vice-President for the time being of The Historical Society of Pennsylvania, Eichard A. Gilpin, Henry D. Gil- pin, Jr., Charles Macalester, and J. Francis Fisher, and the survivors and survivor of them, of one-third of his residuary estate in trust to erect a fire-proof library building in connection with the building of the said Society, to be designated " The Gilpin Library of The Historical Society of Pennsylvania," and to appropriate annually to the use of the said Gilpin Library the entire income of the residue of the said legacy, with a provision that none of the books or other articles should be taken therefrom, but used by students at the library, vacancies in the trust to be filled by the remaining Trustees or a majority of them, and the same being confirmed by a court at Philadelphia having jurisdiction over the subject. On October 28, 1876, the Trustees received authority from the Court of Common Pleas of Philadelphia County to apply the income of the fund to the payment of rent of part of the building occupied by the Society, including the proper fitting up and care of the library room, purchase of books, binding of the same when necessary, and the em- ployment of a proper person as librarian, at a salary to be fixed upon by the Trustees, in lieu of erecting and maintaining a fire-proof library building as provided for in the will of Mr. Gilpin. The Trustees of the Gilpin Library of The Historical Society of Penn- sylvania now consist of the President of the Society, Charles J. Stille, the eldest Vice-President thereof, Hon. Samuel W. Pennypacker, Charles Hare Hutchinson, William Brooke Rawle, and George Harrison Fisher. The capital of the Gilpin Fund amounted on December 31, 1894, to $58,611.65. V. The Binding Fund. This fund was originated by Dr. Thomas B. Wilson, as appears from the following letter : ^^^^^^_ ^^^^^ ^^^^ ^^^ Dear Sir,— In accordance with your suggestion to create a permanent Trust Fund, I would like you to use the seven hundred dollars which I placed in your hands, in the purchase of a one-thousand-dollar bond of the North Penna. R. R. Co. and one share of the Penna. R. R. Co., to be held as a Permanent Binding Fund, the interest to be first used, under direction of the Trustees of the Publication Fund, on the col- lection of books relating to the French Revolution. Yours respectfully, Thomas B. Wilson. To TowNSEND Ward. 6 Funds and D'usts of the Historical Society of Pennsylvania. At a meeting of the Council held March 28, 1861, Mr. Ward an- nounced the donation from Thomas B. Wilson, M.D., of one bond of the North Pennsylvania Railroad Company, for one thousand dollars, and one share of the Pennsylvania Eailroad Company, as a permanent Binding Fund. And on his motion it vras Resolved, That the securities be placed in the hands of the Trustees of the Publication Fund. The Trustees of the Binding Fund of The Historical Society of Pennsylvania, elected by the Society (hereafter by the Council), now consist of: Charles Hare Hutchinson, elected to serve until May, 1896. Hon. James T. Mitchell, elected to serve until May, 1898. Charles J. Stille, elected to serve until May, 1900. The capital of the Binding Fund on December 31, 1894, amounted to $5300 00 Which sum is derived from : Donation of Dr. Thomas B. Wilson (repre- sented by the securities mentioned) . . $700 00 Donation of John Jordan, Jr. . Donation of Penn Manuscript Fund Legacy of William Man . Contributions and profits on investment 1000 00 1000 00 2000 00 600 00 $5300 00 VI. The Library Fund. This fund was originated in consequence of the following letter of George Washington Smith, one of the founders of the Society, entered on the minutes of the Society December 6, 1872 : 911 Clinton Street, Philadelphia, November 20, 1872. My dear Sir, — I have the pleasure to enclose my check for one thousand dollars. I desire that the proceeds be invested in some security lawful for trustees to invest in, in the names of yourself, John Jordan, Jr., and Frederick D. Stone (any vacancy in the trust to be supplied by the remaining trustees or trustee from members of The Historical Society of Pennsylvania), and the interest of the fund applied from time to time, at the discretion of the trustees, by them in the purchase of books, printed or manuscript, for the use of the Society, and to be kept as part of its library. I would be happy if this should prove the commencement of a Per- manent Library Fund securely set apart and devoted to the enlargement and maintenance of the library. I trust that the Historical Society with which I have been so long connected will consider the sum thus given as a mark of my good will and of the sincere satisfaction with which I witness the late efforts made Funds and Trusts of the Histmical Society of Pennsylvania. 7 through the liberality of certain of its members to place its concerns on a base worthy of its object. I remain with sincere regard Your friend Geo. Washington Smith. John William Wallace, Esq., President of The Historical Society of Pennsylvania. At a meeting of the Council held January 27, 1873, it was Resolved, That all bequests or contributions made by any person here- after to the Library Fund be placed in the hands of the same Trustees or their successors, with the same duties and powers on their part as given to the Trustees named in Mr. Smith's said letter. The Trustees of the Library Fund of The Historical Society of Penn- sylvania now consist of: Charles J. Still6, Frederick D. Stone, and John Bach McMaster. The capital of the Library Fund on December 31, 1894, amounted to $20,505 00 Which sum is derived from : Donation of George W. Smith . . . $1,000 00 Legacy of Jesse George .... 4,000 00 Donation of John William Wallace . . 1,000 00 Donation of John Jordan, Jr. . . . 500 00 Legacy of William Man .... 8,000 00 Legacy of Horatio Gates Jones of stock appraised at 4,505 00 Profits on investments, etc 1,500 00 $20,505 00 VII. The Endowment Funds. At a meeting of the Council held January 22, 1877, John William Wallace, Esq., stated that three gentlemen had subscribed some time previously $500 each, and afterwards a fourth gentleman $100, to a paper in the words following : " We the undersigned agree to pay to John William Wallace, John Jordan, Jr., and George de B. Keim, Trustees, the sums set opposite our respective names, said sums to be invested by the said Trustees, and the interest therefrom applied to providing a sufficient salary or salaries for such person or persons as have been longest and most usefully de- voted to the service of said Society, a matter of which a majority of said Trustees or their successors in said Trust shall be the exclusive judges ; and in case there shall be no occasion for such provision, then to pay 8 Funds and Trusts of the Historical Society of Pennsylvania. said interest as any subscriber may direct in writing as to the amount of principal subscribed and paid by him, and in default of such direction, as the Society or its Council may direct. The said Trustees to supply all vacancies in their body, and to have power to increase their numbers from the members of the Society.'' Mr. Wallace then reported that the money had been invested in the name of the Trustees of the Endowment Fund of The Historical Society of Pennsylvania, and that the interest ($100) would be appropriated to Mr. Townsend Ward for life, and, on behalf of the Trustees, asked that this trust and this fund be now recognized as one of the regular trusts and funds of The Historical Society of Pennsylvania. On motion of Mr. Seidensticker, this was unanimously done. Mr. Ward was the beneficiary of the fund, and on his death the fol- lowing resolution was passed : Resolved, That all interest from August 13, 1885, accrued from balance of fund, — viz., the sum of $285, — shall be paid quarterly to the Treasurer of The Historical Society of Pennsylvania and by him applied towards "providing sufficient salaries for such persons as have been longest and most usefully devoted to the service of the Society." At various times subsequently legacies and donations to the Society were placed in the hands of the said Trustees, and at a meeting of the Council of the Society held February 15, 1883, it was resolved that the balance of cash on hand in the Life Membership Fund, as well as future receipts from the same source, be transferred to the Endowment Fund until otherwise ordered. One of the contributions of $500 inaugurating the Endowment Fund was made by Mr. John Jordan, Jr., upon the express stipulation, not mentioned, however, in the agreement above recited, that after the death of Mr. Townsend Ward the amount should be transferred to the Library Fund. This was carried out, and Mr. Jordan's donation appears in the list hereinbefore given of the contributions to that fund. The Trustees of the said Endowment Fund now consist of: Charles J. Stille, Charlemagne Tower, Jr., and Hampton L. Carson. On May 7, 1894, the Society adopted a new system of By-Laws, wherein it was provided in Article IV., Section 3, as follows : " All donations and bequests of money to the Society, unless otherwise directed by the donors or testators, and all moneys received in lieu of annual dues, as hereinbefore provided, shall be invested under the direction of the Council, the income only to be applied to the support of the Society and the carrying out of the purposes for which it has been established. Such investments shall be called 'The General Endowment Fund,' and shall not be converted into money, except for reinvestment." Funds and Trusts of the Historical Society of Pennsylvania. 9 The present Trustees of The General Endowment Fund of The His- torical Society of Pennsylvania, elected to serve until May, 1896, in accordance with the said By-Laws, are the same as the Trustees of the Endowment Fund,— viz., Charles J. Stille, Charlemagne Tower, Jr., and Hampton L. Carson. The capital of the Endowment Funds on December 31, 1894, amounted to $36,645 03 Which sum is derived from : Subscriptions inaugurating the fund of John William Wallace . $500 00 George de B. Keim . . 500 00 Charles Hare Hutchinson . 100 00 (Subscription of John Jor- $1,100 00 dan, Jr., now in Library Fund.) Legacy of Mrs. Susan Barton . 500 00 Donation of John F. Smith . 2,000 00 Legacy of William Bradford . 200 00 Legacy of Eebecca Darby Smith 1,201 49 Legacy of William Man . . 6,000 00 Legacy of William C. Jeanes . 10,000 00 Life membership payments . 11,605 00 Additional subscriptions and other sources .... 5,038 54 $36,645 03 VIII. The Deeeb, Collection of Manuscripts. By deed dated March 1, 1890, recorded in the Office for the Eecording of Deeds, etc., for the City and County of Philadelphia, in Deed Book G. G. P., No. 622, page 332, etc., Mr. Ferdinand J Dreer transferred and vested in Hampton L. Carson, William Brooke Rawle, Frederick D. Stone, Gregory B. Keen, and Edwin G. Dreer, and their successors in the Trust, all his collection of autographs, autograph letters, docu- ments, and manuscripts of historic interest, and illustrations belonging thereto, in trust to keep the same together in one collection in the fire- proof wing of the hall of The Historical Society of Pennsylvania or in such other fire-proof building which the Society may cause to be erected in connectiou with its said hall or any other hall in any part of the city of Philadelphia, the said collection to be designated and known as "The Dreer Collection of Manuscripts," and to be kept separate and apart from all other manuscript collections ; and in trust further to care for, protect, and preserve the said manuscripts from loss by fire, theft, injury, or other destruction, and to permit such students of history and others interested in the subject to examine and have access to said col- lection within the buildings of the said Society at such times and under 10 Funds and Trusts of the Historical Society of Pennsylvania. such rules and conditions as the Trustees for the time being might es- tablish, with a provision that the Trustees of the collection should at all times consist of five in number, and that the Trustees succeeding those named in the said deed should, as soon as the necessary number of vacan- cies occur, be composed at all times thereafter of the President and the Librarian for the time being of The Historical Society of Pennsylvania and three active members thereof, all vacancies in the trust to be filled by the remaining Trustees by instrument of writing duly acknowledged and recorded in the proper record oflSce at Philadelphia. IX. The Isaiah V. Williamson Fund. In addition to the income derived from the foregoing funds, the So- ciety receives for its general purposes two per cent, of the net income of three hundred thousand dollars held in perpetuity by the Pennsylvania Company for the Insurances on Lives and Granting Annuities, under the will of Isaiah V. Williamson. In the year 1894 this amounted to $275.12. By the new By-Laws adopted by the Society May 7, 1894, the entire system of funds belonging to the Society or in which it is beneficially interested was placed upon a harmonious and, as nearly as possible, uni- form basis. It was provided in Article IV. thereof, in addition to the third section above quoted with reference to The General Endowment Fund, as follows : " 4. The investments of each of the several funds subject to the con- trol of the Society, shall be held in the name of " The Trustees of the [ ] Fund of the Historical Society of Pennsylvania," or if such a designation shall in any case be impracticable, then in the name of the Society, but designated as belonging to the particular fund. All moneys held in trust as aforesaid shall be invested and reinvested under the direction of the Council, and the income only applied to the carrying out of the purposes for which the funds respectively have been estab- lished. Such investments shall not be converted into money except for reinvestment, or for carrying into effect the purposes for which any particular fund may have been constituted. The trustees of such funds may in their discretion authorize and empower the Treasurer of the Society to collect and account for the income of such investments. "5. The trustees of all funds whose appointments are not specifically provided for in the creation thereof shall be three in number for each fund, and shall be elected by the Council from among the members of the Society to serve for six years. Elections of trustees shall take place at the stated meeting of the Council held in the month of May in each even-numbered year. In the cases of funds now existing one trustee for each fund shall be elected at such time, and the trustees now in Funds and Trusts of the Histoncal Society of Pennsylvania. 11 oflSce shall continue until the expiration of the terms for which they have been severally elected. In the cases of funds to be created in the future three trustees for each fund shall be elected at the time, or as soon as possible thereafter, to serve until the next stated meeting of the Council held in the month of May in an even-numbered year, when three trustees for each fund shall be elected, one to serve two years, one to serve four years, and one to serve six years, and thereafter one trustee for each fund shall be elected at each of such meetings to serve six years. If no election shall take place on the day appointed, the former trustees shall continue until their successors shall be elected, which may be at any subsequent stated meeting of the Council or any special meeting thereof called for the express purpose, upon notice that such election is intended to be held. Vacancies in the office of trustee may be filled for unexpired terms at like times and in like manner. " 6. In all cases of funds created or other property settled in trust for the benefit of the Society, and the trustees holding the same have the sole power to fill vacancies in their number, whenever such vacancies occur the Council may nominate to the surviving or continuing trustees such members of the Society as it may think most proper to fill such vacancies, with its recommendation that they shall be chosen accord- ingly." The policy of the Society and of the Trustees of its funds is, when- ever investments are made in securities purchased below par, to enter them in the list of assets at cost; and whenever premiums are paid for investments, to apply income to the payment of such premiums and to enter the securities in the list of assets at par, so that the principal is never impaired. LIBRARY OF CONGRESS 014 434 127 2 #