The Washington herald., 1910-06-11

Second mortgage bonds for SlO5.OOU on
the real estate of the university will be
issued Immediately by George Washing
ton University TO tide the institution over
the present financial crisis IN its af-
fairs.
Arrangements for the bond Issue were
made at meeting Of the trustees yester-
day as the only means by which the uni
versity may. even temporarily. retain its
present buildings and educational organi-
cation.
In order that the alumni and friends of
the university may conveniently take up
the bonds, the certificates will be In de-
nominations of SIOO 10 $500 AT yesteT-
days meeting one Of the trustees, whose
name is withheld, subscribed for 5000 of
the bonds.
Fiscal Agents Named.
A resolution constituting the American
Security and Trust Company. the Ma
tional Savings and Trust Company. the
Union Trust Company. and the Washing
ton Loan and Trust Company fiscal
agents OF the university was adopted.
These companies are authorized 10 re-
ceive and invest all endowment funds
now belonging, or which may hereafter
be given, 20 the university.
Trustees Of the university are satisfied
that the bond issue ordered yesterday is
the most practicable way of maintaining
TIE institution on It's present educational
basis. Reports from alumni and others
interested in the welfare Of the university
give the trustees assurances that the
bonds viii be taken up without delay.
AS set forth in the statement issued
by the trustees Thursday, the funding of
the floating debt viii leave the univer-
sity subject TO an interest charge Of a;
least s2S.OOO a year. The policy 10 be pur-
sued in connection with this plan of ad-
justing the financial difficulties of the
university involves the nonpayment for
some time OF debts, and obviates the I'M
mediate restoration 10 a productive In
vestment of portions OF the endowment
fund that have been borrowed.
Plan Only Temporary.
According TO the trustees. the plan is
only temporary, and viii ultimately lead
to the readjustment OF finances and res
toration of the endowment fund.
The appointment OF four large banking
concerns as fiscal agents indicates the
purpose Of the trustees of restoring and
increasing the endowment fund A fund
OF 100000 is desired and it is expected
the officials VIII begin an energetic cam
paign soon for the raising OF that
amount
Whether the university viii reopen next
fall with its present educational organ
ization depends upon the amount of
money raised during the summer, accord
ing to Dr. McBain, assistant to Acting
President Stockton. If $4,000 mainte-
nance fund is pledged, every department
now In operation win be retained for a
year at least, It is said.
Promise Their Cooperation.
Business men OF the city, TO whom the
unlversity's plea for financial aid was
directed, have promised their co-opera-
ton in the work President William
Guide, of the Chamber of Commerce. says
that the question will be brought before
that body as soon as possible, and spe-
cial committee will be appointed to act
in conjunction with q committee from
the Board Of Trade.
Washington should have the finest
and largest educational institution In the
country" said Mr. GUIDE last night. IF
Congress fails to provide such an insti-
tuition, the people of the District should
he Dublic spfrifed enough fo sac tba4
George Washington University continues
TO exist and grow. The university is
equipped for higher education and re-
search, and deserves the unqualified sup
port of the people and business interests
OF the city
Gen. George H. Harries. president of
the Board OF Trade, pledged the aid of
that body in the work OF George Wash
ington. and urged upon the people the
necessity OF continuing the university.
II believe in it, and believe that it
should have the support OF the people"
said Gen. Harries yesterday.