Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-06-03

ont an, risk to the university and with
no additional expense to the institution.
to have the benefit of much smaller
rental than he would have to pay in the
open market. the university very properly
arranged to invest $4,000 in house, 1or
which the president was to Pay the uni
versty a moderate rental. including the
taxes Accordingly the university bought
he house at ITO y street for s1I:so,
paying 5000 in cash and assuming a
$500 mortgage then on the house. 1T
was also decided to spend S4.JO0 in i'm
provemenis. thus bringing up the uni
versity's investment to a total of $4,000.
At the time of the purchase. and before
the improvements were made, the house
was assessed at $1,000. The title to the
property was first taken by the unlVer-
sty. 1T was arranged that the president
should pay the university per cent inter-
est on the $1,000 and also to pay the
annual taxes, which he has done ever
since. No one can question the pToprlety
of this transaction. Many institutions
give their presidents the use of house
free of all charges.
But after the improvements were be-
gun it was discovered that in order to
put the university's own property into
| thoroughly good order an additional $1,000
would be required. The university not be-
ing able to invest as much as sd, 800 in
the presidents house. DR.. Needham sold a
small farm of his own and paid off the
$500 mortgage. thereby investing that
belonging to the university. To simplify
what would otherwise have been a rather
complicated arrangement, DR.. Needham
paying d rental and the taxes. with an
Offset of interest on his $500 equity, the
trustees vested the title OF the house in
DR.. Needham, taking back mortgage
from him to secure the university's orig
inal investment Of $4,000, the president
still continuing to pay the taxes.
ut was also agreed that if the property
were sold for more than S21,.U0, the uni
versity was to get the benefit of all the
increment, and if it sold for less the
loss was to come out of the president s
equity. 1t 1, case of Heads, the uni
versity wins; tails. the president loses
mo one with any knowledge OF real es-
tate values in that section of the city
Will question the statement that the prop
erty will always command considerably
more than the $4,000 originally invested
i'm it by the university. and that in addi-
ton the university has chance of even
tually adding something to it's endow-
ment fund whenever that property is
sold At all events the only one who can
lose any money in this matter is Presi-
dent Needham himself There never was
a cleaner and straighter transaction nor
one rejecting greater credit upon the
presidents sense of propriety.
Endowment Funds.
The gentleman from Missouri CMr.
BOTldHup was Il1Sleu DS tiir tSstif1loIlS
given at Fridays hearing into making
two other erroneous statements. He says
that the university's endowment has all
been dissipated except the $4,000 now
represented by the mortgage on the "
street house, and that in addition to the
bonded Indebtedness of $4,000 there is
nearly $500, ZOO of floating Indebtedness.
He will be glad to learn that in two par
ticulars he is very much mistaken. In
stead Of the income-bearing endowment
having been temporarily reduced to only
$4,000, the productive endowment OF the
university is now $113.970. including the
$4,000 mortgage, and the floating indebt-
edness due to the banks. instead of being
$40. 900, is about S71.iOn.
THE uniyersitys liability to the Cor
coran endowment fund has always been
carried OH the treasurer's books as first
lien upon the equity in the two pieces OF
valuable property a t the corner OF 18th
and Fl streets and on III street between
18th and 18th streets.
The property at the corner of 10Th and
II streets is in the center of the financial
district OF the capital. and it is steadily
increasing in value. The university has
recently been offered $4,000 for 1t. and
will not even consider an offer Of less
than 100000 for it about $50 a square