Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-12-03
PROPERTY IN TRUST
George Washington University
Secures Ten-Year Note.
LOAN AMOUNTS TO $3.50, 900
Money Obtained to Restore the Sew
eral Endowment Funds.
ACCOUNTSAUDITED BY EXPERTS
Report Soon to Be Submitted Show
ng Total Indebtedness of the
Institution.
LOAN AMOUNTS TO $3.50, 900
ACC0UNTSAUDITED BY EXPERTS

To insure the repayment to the various
endowment funds Of moneys borrowed
for current expenses by the George
Washington University and its predeces-
sors. the Columbian College and the Co
lumbar University, all the remaining
property Of the university has been bound
up in deed Of trust which was record ed
today. The three buildings now owned
by the university-the medical school and
the two hospital buildings-are placed In
trust as security for a ten-year note for
$35O,OOO. The Washington Loan and
Trust Company is named as trustee and
the money is to be paid to the National
Savings and Trust Company, as fiscal
agent for the George Washington Uni
versity.
Believed to Cover All Loans.
The amount mentioned in the note.
$35O.OOO, is believed to be the figure at
which the auditors for the Department of
Justice, who have been going over the
endowmentS of the institution since it's
foundation In 1921. will place the total
amounts borrowed by the various admin
istrations for current expenses.
Following the turmoil that surrounded
the finances and administration Of the
university last spring, Congress directed
the Attorney General to inquire into the
! financial condition of the university. AS
a result, a large force Of auditors from
the Department Of Justice has been at
| work for several months upon the books
| Of the institution, examining the en-
dowment funds from the inception OF
the original college-Columbian-- 1921
to the present day. The findings of the
,1ol e., ooio
port which will be presented to Congress
the opening OF the next session. 1t is
understood the report will show that in
the eighty-nine years amounts totaing
$3.50, 600 have been borrowed from the
various endowments to meet the running
expenses of the three institutions
Terms of the Trust.
BY the terms of the deed Of trust the
board Of trustees binds the university to
repay, within the next ten years, all the
money that has been borrowed by the
three institutions that have operated
under the charter, which. as stated, was
granted in 1921. 1t is payable ten years
from December /, and is collectlble by
the sale of the security, upon written
request from the Attorney General, II
not met at the time stipulated.
In case the report of the auditors shows
that smaller total has been borrowed
from the endowment funds. the note is to
be reduced to comply with that figure
The note may be further reduced at any
time by the payment of moneys from out
side sources.
The report of the auditors will also
show, 1t is believed, that there still re-
mains, of the various endowments. about
$4,000. Taking the note at its race
value, the endowment of the university
amo,Ynts TO about $350 600.
The sale of the properties at the corner
of 18th and III stress to 8. w. Woodward
for 1866, 600 recently has practically wiped
out all other Indebtedness of the uni
versity. There is still, In small accounts,
brought over from last year, an indebted
ness of about $4,000, but this amount is
practically cared for by promised dona-
tons. 1t Is expected to be cleared up
within the next two months.
Installation Of New System.
The American Audit Company. which
has been made permanent auditor for the
university, has furnished the financial de-
partment with q new set of books. and Is
installing q new system Of bookkeeping
that is expected to clear away several
tangles in the financial end of the insti-
tuition Under the new system Of rules
adop. ed by the board of trustees, the first
audit will be due the first of the year.
BY January 10 the trustees hope to give
out financial statement which, they
saw, will make conditions in the uni
yersity clearer to the public and do away
with many misconceptions as to Its sta
bility.