The Andrew W. Mellon Foundation Report 1970

The Andrew W. Mellon Foundation

Report 1970 Manufactured in the United States of America '97' The Andrew W. Mellon Foundation

Report from January I, 970 through December 3I, 1970

140 East 62nd Street, New York, New York o002 I zf:A.'-k- P.' I.

ANDREW W. MELLON 1855-1937 Trustees William 0. Baker Paul Mellon Lauder Greenway Nathan M. Pusey Charles S. Hamilton, Jr. Stoddard M. Stevens

Oficers Charles S. Hamilton, Jr. President Albert O'B. Andrews Vice President and Secretary Kenneth J. Herr Treasurer and Assistant Secretary

General Counsel Sullivan & Cromwell

ON June 30, I969 Old Dominion Foundation was merged into Avalon Foundation and the name of the latter changed to The Andrew W. Mellon Foundation. Avalon Foundation had been founded by Ailsa Mel- lon Bruce on December 26, I940 as a common law charitable trust. In I954 it was incorporated under the Membership Corporations Law of the State of New York. Old Dominion Foundation had been established in I94I by Paul Mellon under the laws of the Commonwealth of Virginia. The two individuals were the children of Andrew W. Mellon, Secretary of the Treasury from I92I to I932, and later Ambassador to the Court of St. James's. Total assets of The Andrew W. Mellon Foundation at December 31, I970 approximated $697,8I8,000 at market value and $60I,257,000 at book value. During I970, the Foundation received substantial distributions from certain trusts established by Ailsa Mellon Bruce who died on August 25, I969. It is possible that there may be further distributions in the future of a relatively more minor nature from such trusts and also from Mrs. Bruce's estate, of which the Foundation is the residuary legatee. Any such amounts are, of course, not now determinable. Grants paid by the Foundation in I970 amounted to $29,993,577. Net income for the year amounted to $40,834,043, reflecting, in part, re- ceipt in I970 of income from the above-mentioned trusts attributable to I969. The net income figure is before provision for the four per cent. excise tax on net investment income for I970 imposed by the Tax Reform Act of I969 and payable in I97I. Since the formation of the Foundation in I940 as the Avalon Foundation, it and Old Dominion Foundation have appropriated a total of $I9I,936,882 for philanthropic purposes, of which $I89,I32,426 had been paid as of the end of I970. 8

The Foundation does not make grants to individuals. It has no pre- scribed forms of application for grants, and usually a reasonably descrip- tive letter is sufficient to determine whether further investigation seems warranted. Both the status of the applicant and the status of any possible grant which may be made by the Foundation will necessarily involve con- sideration of the provisions of the Tax Reform Act of I969 as it relates to foundations. It has been announced that Charles S. Hamilton, Jr. will retire in I97I as president of the Foundation, and that he will be succeeded as president by Nathan M. Pusey, following the latter's retirement as president of Harvard University. It is expected that this change will occur on October i, I971. There follows a brief summary of certain selected grants made during the year under review. There is appended to this Report a detailed list of all appropriations made and grants paid during the year, together with the relevant financial statements. 9

Summaries of Certain Selected Grants

EDUCATION

Bryn Mawr College, Bryn Mawr, Pa. - $500,000 to endow "The Andrew W. Mellon Foundation Chair in the Humanities." Carleton College, Northfield, Minn. - $5oo,ooo to endow "The Andrew W. Mellon Foundation Chair in the Humanities." Connecticut College, New London, Conn. - $250,000 to assist in the construction of an addition to the College's library. Cornell University, Ithaca, N. Y. - $300,000 for the general support of the University's Society for the Humanities, which encourages creative research and imaginative teaching in this discipline. Hampton Institute, Hampton, Va. - $400,000 to endow "The An- drew W. Mellon Foundation Chair" in the humanities or social sciences. Harvard University, Cambridge, Mass. - $500,000 toward construction of an underground addition to the Harvard College Library. Institute of International Education, New York, N. Y.- $250,000 toward the retirement of the indebtedness on the headquarters building of the Institute which promotes the interchange of students and cultural programs between the United States and other countries. Interdenominational Theological Center, Atlanta, Ga.- $200,000 toward the ten-year development program of the Center, which is seeking to increase its capacity to train black ministers. The Johns Hopkins University School of Advanced International Studies, Washington, D. C. - $750,000 to endow "The Andrew W. Mellon Foundation Chair in International Studies." Lexington School for the Deaf, Queens, N. Y.- $200,000 toward reducing the indebtedness on the School's new facility in Queens, N. Y. IO

Liberal Arts Colleges - $3,000,000 to fifteen private, independent liberal arts colleges, distributed $200,000 to each, for faculty support, primarily in the humanities, as follows: Agnes Scott College, Bates Col- lege, Bucknell University, Drew University, Grinnell College, Knox Col- lege, Lafayette College, Mills College, Oberlin College, Randolph-Ma- con Woman's College, Scripps College, Trinity College, Wabash College, Wake Forest University and Wheaton College. Massachusetts Institute of Technology, Cambridge, Mass. $300,000 to assist in the construction of a new electrical engineering and electronics teaching complex. Navajo Community College, Many Farms, Ariz.-$250,000 toward the capital construction needs of the College, the nation's first institution of higher learning controlled by Indians. New York University, Institute of Fine Arts, New York, N. Y. $750,000 to endow a professorship to be designated as the "Ailsa Mellon Bruce Chair in Fine Arts." Polytechnic Institute of Brooklyn, Brooklyn, N. Y. - $200,000 in support of the Institute's Center for Urban Environmental Studies which sponsors research and teaching activities covering a wide scope of problems. Princeton University, Princeton, N. J.- $i,ooo,ooo toward the physical expansion of the University's Library Program in the Social Sciences. Secondary Schools - $750,000 to ten private, independent secondary schools, distributed $75,000 to each, for faculty support to the following institutions: Abbot Academy, Emma Willard School, Hebron Academy, Lenox School, Masters School, Protestant Episcopal High School, Shipley School, South Kent School, Taft School and Wooster School. Tulane University, New Orleans, La. - $500,000 toward the support of the University's library development programs, to include book acquisitions, additions to staff, increased shelving, and extension of services to other local colleges. II

University of Chicago, Chicago, 111. - $500,000 to assist in the con- version and renovation of the Harper Memorial Library building and adjacent buildings to house an undergraduate library, dassrooms and faculty office space. Vassar College, Poughkeepsie, N. Y. - $750,000 to endow "The Andrew W. Mellon Professorship in the Humanities." Virginia Polytechnic Institute Educational Foundation, Inc., Blacks- burg, Va. - $200,000 toward the purchase of equipment and the repair and modernization of facilities at the Virginia Forage Research Station, an agency of the Institute which conducts research on pastures and forage crops to improve the feeding and breeding of cattle. Washington and Lee University, Lexington, Va. -$300,000 to assist in the construction of a new undergraduate library.

HEALTH AND MEDICINE Associoation of American Medical Colleges, Washington, D. C.- $I50,000 to the Association, which promotes and guides the development of medical education, to assist in defraying the costs of moving its headquarters from Evanston, Illinois, to Washington, D. C. Children's Hospital Medical Center, Boston, Mass.- $250,000 to aid in the purchase of laboratory and scientific equipment for its new Basic Sciences Building. Georgetown University School of Medicine, Washington, D. C. $300,000 toward the support of the School's program to expand its enrollment substantially. Peter Bent Brigham Hospital, Boston, Mass. -$i,ooo,ooo to aid in the construction of a proposed new unified hospital and medical center, adjacent to Harvard Medical School, to house the Peter Bent Brigham Hospital, the Boston Hospital for Women and the Robert B. Brigham Hospital. I2

Planned Parenthood of New York City, Inc., New York, N. Y.- $I50,000 for the support of the increased workload of the organization's Family Planning Information Service. Presbyterian Hospital in the City of New York (Columbia-Presby- terian Medical Center), New York, N. Y. - $i,ooo,ooo toward the construction phases of its development and modernization program. Skidmore College, Saoratoga Springs, N. Y. - $I50,000 to aid in the renovation and equipping of its Nurses' Education and Residence Build- ing which houses its nursing program at New York University Medical Center. Vanderbilt University School of Medicine, Nashville, Tenn.- $500,000 to aid in the construction of a new classroom and teaching laboratory building to provide for increased enrollment. Washington University School of Medicine, St. Louis, Mo. $500,000 to aid in the renovation of existing hospital facilities to house a new Perinatal Center and to provide offices and laboratory space for the School's Department of Obstetrics and Gynecology. World Rehabilitation Fund, Inc., New York, N. Y. - $ioo,ooo in general support of the Fund which makes available to people of other countries the knowledge and techniques in physical rehabilitation of the Institute of Physical Medicine and Rehabilitation at New York Uni- versity Medical Center.

CULTURAL PROJECTS Brooklyn Institute of Arts and Sciences, Brooklyn, N. Y.-$26o,ooo for use of The Brooklyn Museum to establish and support a Curatorial Apprentice Training Program to provide on-the-job experience for the training of museum curators and conservators. National Gallery of Art, Washington, D. C.- $200,000 for support of the Gallery's library acquisition program for its proposed Center for Advanced Study in the Visual Arts. I3

New England Aquarium, Boston, Mass. - $ioo,ooo toward the Aquarium's capital fund to provide for construction and to establish research and educational programs. New Jersey Historical Society, Newark, N. J. $200,000 to assist in the renovation of the Society's Newark headquarters to provide additional facilities for its increasing programs. Richmondtown Restoration, Inc., Staten Island, N. Y. - $ioo,ooo toward completion of this major restoration project which is planned as an authentic reproduction of a "working" American village spanning the period i69o to I890. Robert E. Lee Memorial Foundation, Stratford, Va.- $200,000 toward the acquisition of land bordering Stratford Hall, the ancestral home of the Lee family and the birthplace of Robert E. Lee, now pre- served for public use and benefit.

CONSERVATION National Audubon Society, New York, N. Y. - $200,000 to aid in the acquisition by the Society of acreage on Sanibel Island, Florida, to protect the existing Darling National Wildlife Refuge operated by the Fish and Wildlife Service of the United States Department of the In- terior. National Park Foundation, Washington, D. C. - $5,500,000 toward the purchase of a major part of Cumberland Island (the largest of the so-called "Golden Isles" off the coast of Georgia), to be established as a National Seashore under the jurisdiction of the National Park Service. Smithsonian Institution, Wlashington, D. C. - $I50,000 toward the land acquisition program of the Chesapeake Bay Center for Environ- mental Studies, an ecological research and training facility operated by the Institution in collaboration with Johns Hopkins University and the University of Maryland. 14

CIVIC PROGRAMS AND COMMUNITY SERVICES Bedford-Stuyvesant D and S Corporation, Brooklyn, N. Y.- $ioo,ooo toward the construction of an outdoor recreational area, in- duding a skating rink, adjacent to the Sheffield Center, a community center development in the Bedford-Stuyvesant area of Brooklyn. Henry Street Settlement, New York, N. Y. - $ioo,ooo toward the construction of an arts center to be located among the Settlement's other facilities on the Lower East Side of New York City. Madison Square Boys' Club, New York, N. Y.- $75,000 toward the construction of a new Boys' Club facility to serve disadvantaged youth in the Bronx. New York City Mission Society, New York, N. Y.- $150,000 to assist in the acquisition of land for a new multipurpose Cadet Corps headquarters in the Bronx. New York Urban Coalition Inc., New York, N. Y. -$ioo,ooo for support of the Coalition's programs which involve the private sector in an effort to cope with the problems of black, Puerto Rican and other minority peoples of the New York metropolitan area. Police Athletic League, Inc., New York, N. Y. - $75,000 to assist in the construction of a youth center in Harlem. Statistical Tables and Financial Statements

Included in this report are tables as follows: I Summary of grants, I970 II Statement of grants, I970 III Financial statements for the year I970 i6

The Andrew W. Mellon Foundation

Table I Summary ofGrants 1970

Unpaid Unpaid Jan. I, Appro- Dec. 31, I970 priated Paid I970 Civic Programs and Community Services. $ 8o,ooo $ 580,0o0 $ 630,000 $ 30,000 Cultural Projects: Performing Arts . . $ i6o,ooo $ 365,000 $ 440,000 $ 85,000 Museums and Libraries 779,834 1,202,500 1,925,666 56,668 Conservation . . . 200,000 5,850,000 5,503,700 546,300 Other Cultural Projects__-o- 205,000 I45,000 6o,ooo $1,3139,834 $ 7,622,500 $ 8,01o4,366 $ 747,968 Education.$I,855,699 $13,284,000 $I4, I79,2II $ 960,488 Health and Medicine: Education in the Health Sciences . . $I,I50,000 $ 1,841,000 $ 2,725,000 $ 266,ooo Other Grants for Health and Medicine 1,950,000 2,777,500 3,952,500 775,000

$3,100,000 $ 4,6I8,500 $ 6,677,500 $I,04I,000 .1 Youth Programs. . . $ 75,000 $ 442,500 $ 492,500 $ 25,000 Totals $6,250,533 $26,547,500 $29,993,577 $2,804,456 I7

The Andrew W. Mellon Foundation

Table II

Statement of Grants 1970 *

CIVIC PROGRAMS AND Unpaid Unpaid Jan. 1, Appro- Dec. 31, COMMUNITY SERVICES Z970 priated Paid Z970 American Council for Emigr6s in the Professions, Inc., New York: Support of its program for the job placement of trained refugees . $ I 0,000 $ I 0,000 $ - American Law Institute, Philadelphia, Pa.: To aid in a study of federal regulatory statutes administered by the Securities and Exchange Commission. 65,000 35,000 30,000 American Red Cross in Greater New York - I0,000 10,000 Bedford-Stuyvesant D and S Corporation, Brooklyn, N.Y.: Toward construction of a recreational center at the Sheffield Center in Brooklyn. I 00,000 I00,000 Community Council of Greater New York: Support of this central resource coordinating the work of New York's voluntary health and welfare agencies . 10,000 I0,000 -

*Unless otherwise noted, grants are for general purposes of recipient. i8

CIVIC PROGRAMS AND Unpaid Unpaid COMMUNITY SERVICES Jan. z, Appfo- Dec. 3r, (continued) Z970 priated Paid I970 Community Service Society, New York: Support of the Society's programs for needy families in New York $5,000 $5,000 $ - Henry Street Settlement, New York: Toward construction of arts center 100,000 I00,000 Industrial Home for the Blind, Brooklyn, N.Y.: General support of a multi- service program for the blind . 7,500 7,500 International Center in New York, Inc.: General support of its services for foreign visitors studying or training in the United States. 5,000 5,000 James Weldon Johnson Community Center, Inc., New York: Support of its community service programs in East Harlem. I 5,000 I 5,000 - Legal Aid Society, New York: Support of program of legal advisory service and repre- sentation for those unable to pay . 25,000 25,000 Lenox Hill Neighborhood Association, Inc., New York: For general support of its community service programs in the Upper East Side area of New York . 5,000 5,000o National Aid to Visually Handi- capped, Inc., San Francisco, Calif. I0,000 I0,000 I9

CIVIC PROGRAMS AND Unpaid Unpaid COMMUNITY SERVICES Jan. z, Appro- Dec. 3I, (continued) z970 priated Paid 1970 New York Association for the Blind: For general support of its program of socio-recreative services for the blind . . $ $5,000 $5,000 $ -

New York Urban Coalition Inc.: For support of its programs involving the private sector to deal with the problems of minority peoples in New York City 100,000 I00,000 - Recording for the Blind, Inc., New York: Toward acquisition of certain duplicating systems to increase output of tape- recorded books

for the blind . 35,000 35,000 General support - 7,500 7,500 Salvation Army, New York: Support of its programs of social welfare to the homeless and needy. 5,000 5,000 Sciciety of the Third Street Music School Settlement, Inc., New York: Support of development program. 50,000 50,000 Tolstoy Foundation, Inc., New York: Support of its program of immigration and resettlement of refugees. 30,000 30,000 Travelers Aid Society of New York: Support of the Society which provides individualized

services to travelers . 5,000 5,000o- 20

CIVIC PROGRAMS AND Unpaid Unpaid COMMUNITY SERVICES Jan. I, Appro- Dec. 3r, (continued) 1970 priated Paid I970 United Neighborhood Houses of New York, Inc.: Support of Joint Supplemental Fund shared with member settlement houses $ - $50,000 $50,000 $ - United Service Organizations of New York City, Inc.: Support of its program of services to members of the Armed Forces 5,000 5,000 -

Total - Civic Programs and Community Services $8o,ooo $58o,ooo $630,000 $30,000 2I

CULTURAL PROJECTS Unpaid Unpaid Jan. I, Appro- Dec. 31, Performing Arts 1970 priated Paid 1970 American Shakespeare Festival Theatre and Academy (Stratford, Conn.), New York: Support of the Theatre's presentations and educa-

tional programs . . . . $50,000 $ - $50,000 $

Brooklyn Institute of Arts and Sciences, Brooklyn, N.Y.: For support of engagement of Royal Shakespeare Company's production at Brooklyn Academy of Music at a reduced ticket price scale I0,000 I0,000

City Center of Music and Drama, Inc., New York: Support of program of free or discount priced tickets for New York City under- privileged children, and students 50,000 25,000 25,000

Metropolitan Opera Association, Inc., New York 50,000 50,000o

Music Associates of Aspen, Inc. (Aspen, Colo. ), New York: For support of Aspen Music School in Aspen, Colo. . 45,000 I 5,000 30,000

National Endowment for the Arts, Washington, D.C.: For support of Theatre, Inc. (Phoenix Theatre), New York. 50,000 50,000 -

New York Pro Musica: Support of its activities in the retrieval and performance of medieval and renaissance music. 20,000 I0,000 I0,000 22

Unpaid Unpaid CULTURAL PROJECTS Jan. z, Appro- Dec. 3r, Performing Arts (continued) Z970 priated Paid I970 Opera Association of New Mexico, Santa Fe, N.M.: Support of its Apprentice Program $30,000 $20,000 $ I0,000 General support . 30,000 20,000 I0,000

Philharmonic-Symphony Society of New York, Inc. 50,000 50,000

St. Louis Symphony Society, St. Louis, Mo.: Support of the Institute of Orchestral Conducting. 40,000 40,000

School of The Pennsylvania Ballet Company, Philadelphia, Pa.: Support of The Pennsylvania Ballet Company . I 00,000 I00,000 - Subtotal $ i6o,ooo $365,000 $440,000 $8s,ooo

Museums and Libraries American Museum of Natural History, New York: Toward capital funds drive . $500,000 $ - $500,000 $- General support . . . . 5,000 5,000

Brooklyn Institute of Arts and Sciences, Brooklyn, N.Y.: For the benefit of The Brooklyn Museum: Support of audio-visual program in connection with Museum's exhibition on African Sculpture 7,500 7,500 For establishment and support of a Curatorial Apprentice Training Program . . . . - 260,000 260,000 CULTURAL PROJECTS Unpaid Unpaid Museums and Libraries Jan. I, Appro- Dec. 31, (continued) Z970 priated Paid 1970 National Gallery of Art, Washington, D.C.: Support of library acquisition program in connection with establishment of the Center for Advanced Study in the Visual Arts. $200,000 $200,000 $ 1-8 Support of its project at the Carnegie-Mellon University relative to the preservation of paintings . Iog,834 - 73,166 36,668 A. W. Mellon Lectures in the Fine Arts . 20,000 20,000 New England Aquarium, Boston, Mass.: For capital funds to provide for construction, and to establish research and educational programs I 00,000 I00,000 New Jersey Historical Society, Newark, N.J.: To assist in the renovation of its Newark headquarters . 200,000 200,000 - '

New York Public Library - 25,000 25,000 - New York Zoological Society: Toward current capital projects at the Bronx Zoo . 150,000 150,000 Richmondtown Restoration, Inc., Staten Island, N.Y.: To assist in the development of the Richmondtown Restoration. 100,000 I00,000

Robert E. Lee Memorial Foundation, Inc., Stratford, Va.: Toward acquisition of land bordering Stratford Hall . 200,000 200,000 24

CULTURAL PROJECTS Unpaid Unpaid Museums and Libraries Jan. r, Appro- Dec. 31, (continued) Z970 priated Paid I970 Shaker Community, Inc., Hancock, Mass.: To assist in the restoration of the water system at

Shaker Village . . . . $ $95,000 $95,000 $ - Whitney Museum of American Art, New York: Toward support of the Museulm's

Art Resources Center . . 10,000 I0,000 Subtotal $779,834 $I,202,500 $1,925,666 $56,668 Conservation Conservation Foundation, Washington, D.C: Support of the Foundation which conducts research and education in the natural resources field . $200,000 $ $I00,000 $I00,000 National Audubon Society, New York: Toward acquisition by the Society of acreage on Sanibel Island, Florida, for protection of the Darling National Wildlife Refuge - 200,000 200,000 National Park Foundation, Washington, D.C.: Toward the purchase of a major part of Cumberland Island, Georgia, to be established as a National Seashore .-.. . . . 5,500,000 5,053,700 446,300 Smithsonian Institution, Washington, D.C.: Toward cost of acquiring land for its Chesapeake Bay Center for Environmental Studies 150,000 I50,000 - Subtotal $200,000 $5,85o,ooo $5,503,700 $546,300 25

Unpaid Unpaid CULTURAL PROJECTS Jan. I, Appro- Dec. 3z, Other Cultural Projects I970 priated Paid 1970 Atlantic Council of the United States, Inc., Washington, D.C.: Toward support of the library programs of The Atlantic Institute, Paris, France. $90,000 $30,000 $6o,ooo \b ' California Institute of Technology, Pasadena, Calif.: To continue support of its art workshop program. 25,000 25,000 English-Speaking Union of the United States, New York 5,000 5,000 International Exhibitions Foundation, Washington, D.C.: To assist in its program of providing traveling art exhibitions 10,000 10,000 San Francisco Art Institute, San Francisco, Calif.: To assist in the construction of the Institute's new studio building . 50,000 50,000 Spanish Institute, Inc., New York: For operating support of its program to promote interest in the Spanish world . . 25,000 25,000 Subtotal $ -o- $ 205,000 $ I45,000 $ 6o,ooo Total-Cultural Projects $1,139,834 $7,622,500 $8,oI4,366 $747,968 26

Unpaid Unpaid Jan. z, Apo- Dec. 3z, EDUCATION Z970 p7iated Paid I970 Abbot Academy, Andover, Mass.:

For faculty support . . . $75,000 $75,000 $ - Agnes Scott College, Decatur, Ga.:

For faculty support - 200,000 200,000 - American Association of Theological Schools in the United States and Canada, Dayton, Ohio: Support of the Association which acts as the official accrediting agency for graduate and professional theological education 300,000 150,000 150,000

American Council on Education, Washington, D.C.: Support of its seminar program for college presidents and other college officers 75,000 25,000 50,000 Association of American Colleges, Washington, D.C.: Support of its Commission on Liberal Education - I15,000 I5,000 Bates College, Lewiston, Me.: For faculty support 200,000 200,000 Bryn Mawr College, Bryn Mawr, Pa.: To endow a Chair in the Humanities 500,000 500,000 Bucmnell University, Lewisburg, Pa.:

For faculty support - 200,000 200,000 Carleton College, Northfield, Minn.: To endow a Chair in the Humanities. 500,000 500,000 27

Unpaid Unpaid Jan. I, Appro- Dec. 3z, EDUCATION (continued) I970 priated Paid I970 Center for Information on America, Inc., Washington, Conn.: For development of high school instructional materials in population studies and in the problems of conservation $ and environment . . . $5$,000I I 5,000 $ Connecticut College, New London, Conn.: To aid in construction of an addition to its library - 250,000 250,000 Cornell University, Ithaca, N.Y.: For support of its Society for the Humanities. 300,000 300,000 Council for Basic Education, Washington, D.C.. I 0,000 I0,000 Dartmouth College, Hanover, N.H.: To endow a Chair in the Humanities 300,000 300,000 Drew University, Madison, N.J.: 200,000 200,000 - For faculty support . Emma Willard School, Troy, N.Y.: For faculty support 75,000 75,000 Grinnell College, Grinnell, Iowa: For faculty support - 200,000 200,000 Hampton Institute, Hampton, Va.: To endow a Chair in the Humanities. - 400,000 400,000 Harvard University, Cambridge, Mass.: To assist in construction of an addition to the Harvard College Library. - 500,000 500,000 To assist in construction of an underground addition to Widener Library I 5 0,000 I 50,000 28

Unpaid Unpaid Jan. I, Appro- Dec. 31, EDUCATION (continued) Z970 priated Paid 1970 Harvard University, Cambridge, Mass.: (continued ) For fellowship and library support at the Harvard University Center for Italian Renaissance Culture at I Tatti, Florence, Italy . . $ $75,000 $5,000 $70,000 Hebron Academy, Hebron, Me.: For faculty support 75,000 75,000 Hollins College, Hollins College, Va.: For support of graduate program in Liberal Arts Studies - 20,000 20,000 Institute of International Education, New York: Toward retirement of indebtedness on headquarters building in New York City . 250,000 250,000 General support . 25,000 25,000 Interdenominational Theological Center, Atlanta, Ga.: Toward support of its ten- year development program 200,000 200,000 Johns Hopkins University, School of Advanced International Studies, Washington, D.C.: To endow a Chair in .1 International Studies 750,000 750,000 Knox College, Galesburg, Ill.: For faculty support . 200,000 200,000 - Lafayette College, Easton, Pa.: For faculty support . - 200,000 200,000 Lenox School, Lenox, Mass.: For faculty support . 75,000 75,000 29

Unpaid Unpaid Jan. I, App7o- Dec. 31, EDUCATION (continued) Z970 priated Paid 1970 Lexington School for the Deaf, Queens, N.Y.: Toward reduction of indebtedness on School's new facility in Queens . . . . . I $200,000 $200,000 $ - ) Lincoln Hall, New York: Toward construction of auditorium for this residential training school for cl delinquent boys. 75,000 75,000 , Mary Baldwin College, Staunton, Va.: For support of book selection programs in history, German literature and drama 5,000 5,000 Massachusetts Institute of Technology, Cambridge, Mass.: Toward construction of an electrical engineering and electronics teaching complex. 300,000 300,000 For support of Neurosciences Research Program publication. 5,000 5,000 Masters School, Dobbs Ferry, N.Y.: For faculty support 75,000 75,000o Mills College, Oakland, Calif.: For faculty support 200,000 200,000 - National Endowment for the Humanities, Washington, D.C.: For use of the American Academy in Rome toward support of its Fototeca (3.. project 4,500 4,500 For use of The Associated Colleges of the Midwest, The Newberry Library, to support the Newberry Library Seminar in the Humanities 52,500 I7,500 35,000 Unpaid Unpaid Jan. I, Appro- Dec. 3I, EDUCATION (continued) Z970 priated Paid Z970 National Endowment for the Humanities, Washington, D.C.: (continued) \;S R For use of United Chapters of Phi Beta Kappa in the operation of the National Humanities Faculty $50,000 $50,000 $ - For use of United Chapters of Phi Beta Kappa for sponsor- ship of certain books to be published in connection with its Bicentennial C, Program 25,000 25,000 National Gallery of Art, Washington, D.C.: Fellowships for training of museum curators 36,ooo i8,ooo i8,ooo Navajo Community College, Many Farms, Ariz.: Toward its capital construction needs . - 250,000 250,000 New York University: Toward expenses of archaeo- logical work at Aphrodisias in Caria, Turkey . - 20,000 20,000 Institute of Fine Arts: To endow a professorship to be designated as the "Ailsa Mellon Bruce I Chair in Fine Arts" . 750,000 750,000 Oberlin College, Oberlin, Ohio: For faculty support . 200,000 200,000 Polytechnic Institute of Brooklyn, Brooklyn, N.Y.: For support of its Center for Urban Environmental Studies 200,000 67,000 I 33,000 3I

Unpaid Unpaid Jan. i, Appfo- Dec. 31, EDUCATION (continued) Z970 priated Paid Z970 Princeton Theological Seminary, Princeton, N.J.: To continue support of Center for Continuing Education for Ministers . - $I00,000 $34,000 $66,ooo Princeton University, Princeton, N.J.: Toward the physical expansion of the University's Library Program in the Social Sciences. I,000,0000 I,000,000 Protestant Episcopal High School, Alexandria, Va.: For faculty support 75,000 75,000 Randolph-Macon Woman's College, Lynchburg, Va.: For faculty support - 200,000 200,000 - St. John's College, Annapolis, Md.: Endowment Fund: matching grant. I67,034 47,046 II9,988 Saint Paul's College, Lawrenceville, Va.: To assist in the renovation of its library facilities . I 50,000 I 5 0,000 Salzburg Seminar in American Studies (Cambridge, Mass.), New York: General support of the Seminar which provides opportunity for Europeans to learn about N7\' American institutions . 40,000 20,000 20,000 Scripps College, Claremont, Calif.: For faculty support . - 200,000 200,000 Shipley School, Bryn Mawr, Pa.: For faculty support . 75,000 75,000 32

Unpaid Unpaid Jan. z, Appro- Dec. 3z, EDUCATION (continued) 1970 priated Paid I970 Skowhegan School of Painting and Sculpture (Skowhegan, Me.), New York: Toward reduction of School's indebtedness . $75,000 $75,000 $ -

Smith College, Northampton, Mass.: Toward cost of construction of a new building to provide facilities for the Department of Art and the Museum of the College. 250,000 250,000

South Kent School, South Kent, Conn.: For faculty support . 75,000 75,000

Stevens Institute of Technology, Hoboken, N.J.: Support of the Stevens Technical Enrichment Program 7,500 7,500 - Taft School, Watertown, Conn.: For faculty support 75,000 75,000

Tougaloo College, Tougaloo, Miss.: To aid in construction of new library . 200,000 200,000 -

Trinity College, Hartford, Conn.: For faculty support - 200,000 200,000

Tulane University, New Orleans, La.: Toward support of University's library development programs 500,000 500,000 - \;,v 33

Unpaid Unpaid Jan. I, Appro- Dec. 31, EDUCATION (continued) I970 priated Paid 1970 Union Theological Seminary, New York: To continue support of the Seminary's program in religion and psychiatry. . $ $40,000 $40,000 $ -

University of Chicago, Chicago, Ill.: Toward renovation and con- version of Harper Memorial Library building and adjacent buildings to house an undergraduate library and 1'V related facilities. . 500,000 500,000

Vassar College, Poughkeepsie, N.Y.: To endow a Chair in the Humanities. . 750,000 750,000

Virginia Fellowship Program in the Humanities: Fellowships for selected teachers and administrators from Virginia public high schools for study in the humanities at the University of Virginia and Yale University 75,000 To University of Virginia . . 41,250 To Yale University . 33,750

Virginia Foundation for Independent Colleges, Lynchburg, Va.: To support program for development of financial aid from the business community for its member colleges . 2 83,500 I66,5oo 34

Unpaid Unpaid Jan. I, Appro- Dec. 31, EDUCATION (continued) Z970 priated Paid Z970 Virginia Polytechnic Institute, Blacksburg, Va.: Toward purchase of equipment and the repair and modernization of facilities at the Virginia Forage Research Station - $200,000 $200,000 $ Wabash College, Crawfordsville, Ind.: For faculty support - 200,000 200,000 Walke Forest University, Winston-Salem, N.C.: For faculty support 200,000 200,000 Washington and Lee University, Lexington, Va.: To assist in the construction of an undergraduate library 300,000 300,000 - Wheaton College, Norton, Mass.: For faculty support . . 200,000 200,000 Wooster School, Danbury, Conn.:

For faculty support 75,000 75,000 - Yale University, New Haven, Conn.: Exchange Fellowships with Clare College, Cambridge,

Engand . . . . . 45,I65 132,000 45,I65 132,000

Total-Education $I,855,699 $13,284,000 $I4,179,21I $960,488 35

Unpaid Unpaid HEALTH AND MEDICINE Jan. I, Appro- Dec. 31, Education in the Health Sciences 1970 p7rated Paid 1970 American Fund for Dental Education, Chicago, Ill.: For support of scholarship program for black dental students. - Ioo,ooo $34,000 $66,ooo Association of American Medical Colleges, Washington, D.C.: To assist in defraying cost of moving headquarters to Washington, D.C. . I 50,000 I50,000 - Boston University School of Medicine, Boston, Mass.: Support of program to strengthen faculty . I00,000 50,000 50,000 Duke University Medical Center, School of Nursing, Durham, N.C.: Toward cost of construction of new classroom facility for its School of Nursing 200,000 200,000 Georgetown University School of Medicine, Washington, D.C.: For support of program to expand its enrollment . 300,000 300,000 Harvard University, School of Public Health, Boston, Mass.: To aid in construction of educational facilities building . 250,000 250,000 Meharry Medical College, Nashville, Tenn.: Support of program to strengthen faculty . 100,000 50,000 50,000 Mount Sinai College of Medicine, New York: Toward construction of new four-year medical school . 200,000 200,000 HEALTH AND MEDICINE Unpaid Unpaid Education in the Health Sciences Jan. x, Appro- Dec. 31, (continued) 1970 priated Paid 1970 New York Institute for the Education of the Blind: Toward construction of a Diagnostic Clinic and Educa- tional Treatment Center $200,000 $- $200,000 S - Niagara University, New York: To assist in the construction of a nursing education building for its College of Nursing - 775,000 75,000 Skidmore College, Saratoga Springs, N.Y.: To aid in the renovation and equipping of its Nurses' Education and Residence Building in New York City to house the Skidmore College nursing program at New York University Medical Center -150,000 150,000 Syracuse University, Syracuse, N.Y.: Toward construction of new School of Nursing . 100,000 - I00,000 Vanderbilt University School of Medicine, Nashville, Tenn.: Toward construction of new classroom and teaching laboratory building. - 500,000 500,000 Washington University School of Medicine, St. Louis, Mo.: Toward renovation of existing hospital facilities to house the Perinatal Center and to provide offices and laboratory space for its Department of Obstetrics and Gynecology. . - 500,000 500,000 37

HEALTH AND MEDICINE Unpaid Education in the Health Sciences a. z, Appro- Dec. 3I, (continued) 1970 priated Paid 1970 Washington University School of Medicine, St. Louis, Mo.: (continued) Support of research program sponsored by the National Multiple Sderosis Society in studies on proteins unique to the nervous system . . $ $ 66,ooo $ 66,ooo $ Subtotal $I,I50,000 $1,841,000 $2,725,000 $266,ooo Other Grants for Health and Medicine Affiliated Hospitals Center, Inc., Boston, Mass.: To aid in the construction of a proposed new unified hospital and medical facility ...... $500,000 $ - $500,000 Cancer Care, Inc., New York . 5,000 5,000 - Children's Hospital Medical Center, Boston, Mass.: To aid in the purchase of laboratory and scientific equipment for its new Basic Sciences Building 250,000 250,000 Elwyn Institute, Elwyn, Pa.: To assist in the construction of three residential rehabilitation facilities . 100,000 I00,000 Frontier Nursing Service, Hyden, Ky.: To assist in the construction of a new hospital . 8o,ooo 8o,ooo Health Research, Inc., Buffalo, N.Y.: For the benefit of Roswell Park Memorial Institute, a cancer research center, to aid in the construction of a chemotherapy-pharmacology building. 200,000 200,000 - 38

HEALTH AND MEDICINE Unpaid Unpaid Other Grants for Health and Jan. I, Appro- Dec. 3z, Medicine (continued) 1970 pfiated Paid Z970 Knickerbocker Hospital, New York: To meet emergency financial needs. $ I 00,000 $ $ I 00,000 $ Manhattan Eye, Ear and Throat Hospital, New York: Toward construction of a new hospital building I 50,000 - I150,000 Margaret Sanger Research Bureau, Inc., New York: Support of Bureau which provides training, research and patient service in the birth

control field . 25,000 25,000 Memorial Sloan-Kettering Cancer Center, New York:

Building Fund . 250,000 - 250,000

For needy patient care 10,000 10,000 Menninger Foundation, Topeka, Kan.: To aid in the construction of the children's clinic building adjacent to its Children's Hospital 250,000 250,000

National Council on Alcoholism, Inc., New York: Toward establishment of a program information services department 25,000 25,000 New York Heart Association, Inc. 7,500 7,500 New York University Medical Center, Institute of Rehabilita- tion Medicine: For support of research activities in hypertension and stroke I 00,000 50,000 50,000 39

HEALTH AND MEDICINE Unpaid Unpaid Other Grants for Health and Jan. I, Appro- Dec. 3I, Medicine (continued) Z970 priated Paid Z970 Peter Bent Brigham Hospital, Boston, Mass.: To aid in the construction of a proposed new unified hospital and medical center $ I,000,000 $ I,000,000 $ - Planned Parenthood of New York City, Inc.: For support of its Family Planning Information Service - 150,000 75,000 75,000 Population Council, New York: In support of the Council which serves as a clearing house for information in the field of population studies I 5 0,000 150,000 Presbyterian Hospital in the City of New York: Toward construction phases of its current development and modernization program. I ,000,000 1,000,000

Roosevelt Hospital, New York: Medical treatment for needy persons. - 20,000 20,000 St. Luke's Hospital Center Woman's Hospital, New York 5,000 5,000 St. Vincent's Hospital and Medical Center, New York: Toward construction of new facility for its School of Nursing. 200,000 200,000

United Hospital Fund, New York: Support of program of aid to its member hospitals 10,000 I0,000 40

HEALTH AND MEDICINE Unpaid Unpaid Other Grants for Health and Jan. I, Appfo- Dec. 31, Medicine (continued) I970 priated Paid 1970 Visiting Nurse Service of New York: Support of program to provide nursing care and health aid in the home . . $ I 5,000 $ I 5,000 $ - World Rehabilitation Fund, Inc., New York: Support of training programs and other activities in

physical rehabilitation . 25,000 I00,000 I 25,000

Subtotal $I,950,000 $2,777,500 $3,952,500 $ 775,000 Total-HealthandMedicine $3,100,000 $4,6I8,500 $6,677,500 $I,04I,000 4I

Unpaid Unpaid Jan. I, Appro- Dec. 31, YOUTH PROGRAMS I970 priated Paid I970 Big Brothers, Inc. of New York City: To assist in the operation of a residential center in New York City . $I5,000 $ SI5,000 $

Big Sisters, Inc., New York . 7,500 7,500

Boy Scouts of America, Greater New York Councils 5,000 5,000 - Boys Brotherhood Republic of New York, Inc.: Support of the programs of Boys Brotherhood, a Lower East Side boys' club . 7,500

Boys Harbor, Inc., New York: For support of its educational programs 50,000 50,000

Children's Aid Society, New York: For support of its Family Service Center in East Harlem. 40,000 40,000 Child Adoption Service 5,000 5,000

Fresh Air Fund, New York: Support of Fund's vacation program for New York City children. 5,000 5,000

Girl Scout Council of Greater New York, Inc.. 5,000 5,000

Girls Clubs of America, Inc., New York: Support of the organization's expanding activities in the development of local clubs 5 0,000 25,000 25,000 42

Unpaid Unpaid YOUTH PROGRAMS Jan. I, Appro- Dec. 31, (continued) 1970 priated Paid 1970 Madison Square Boys' Club, New York: To assist in the completion of a new Boys' Club facility in the Bronx . $75,000 $75,000 $ -

New York City Mission Society: Toward acquisition of land for a new Cadet Corps headquarters building to be located in the Bronx -,I 50,000 I 5 0,000 General support . 7,500 7,500

Police Athletic League, Inc., New York: To assist in the construction of a youth center in Harlem 75,000 75,000

Vocational Foundation, Inc., New York: Support of its job placement service for young people with correctional background . 5,000 5,000

Wiltwyck School for Boys, Incorporated (Yorktown Heights, N.Y.), New York: Toward support of its out-patient clinic I0,000 10,000

Young Life Campaign (Colorado Springs, Colo.), New York: For support of its summer camp program for boys from the Lower East Side of New York - 5,000 5,000 -

Total-Youth Programs $ 75,000 $ 442,500 $ 492,500 $ 25,000 Grand Totals $6,250,533 $26,547,500 $29,993,577 $2,804,456 Table III Financial Statements

OPINION OF INDEPENDENT PUBLIC ACCOUNTANTS

PRICE WATERHOUSE & CO. 6o Broad Street New York I0004 April 7, I971 To the Board of Trustees of The Andrew W. Mellon Foundation

In our opinion, the accompanying statements of assets and principal and investment securities resulting from cash transactions and contributions received and the related statements of income collected and expenses disbursed and changes in principal present fairly the assets and principal of The Andrew W. Mellon Foundation at De- cember 3I, I970 resulting from cash transactions and contributions received, and the income collected and expenses disbursed and changes in principal for the year, and are presented on a basis consistent with that of the preceding year. Our examination of these statements was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances, including confirmation of cash and securities owned at December 3I, I970 by correspondence with the depository.

PRICE WATERHOUSE & CO. 46

The Andrew W. Mellon Foundation Statement of Assets and Principal Resulting from Cash Transactions and Contributions Received December 31, 1970 Assets Investments, at fair market value at dates of acquisition or at cost (see schedule ): Bonds and notes, less premium amortization ...... $I3i,409,608 Stocks . 466,769,472 Total investment securities (approximate

market value of $694,740,000) ...... 598,I79,080 Interest in West Virginia coal properties ...... I,379,731 Total investments ...... 599,558,8II

Cash ...... 506,630 Interest purchased ...... 13I,58o Office building, furniture and equipment, at cost,

less accumulated depreciation of $33,422 ...... 748,478 Land, Washington, D.C., at cost ...... 3I1,952 $6oi,257,4531 Principal

Appropriated for unpaid grants, payable in later years . * $2,804,456 Unappropriated balance . * 598,452,995 $60I,257,451 47

The Andrew W. Mellon Foundation Statement of Income Collected and Expenses Disbursed Calendar Year 1970 Income collected: Income received from trusts (Note 2) . . . . 020,259,149 Dividends. I4,I02,001 Interest on bonds and notes, less amortization

of premiums of $6,723 . . . . . 6,846,i96 Net income from West Virginia coal properties 406,928

Total income collected ...... 4I,614,274

Expenses disbursed:

Salaries and provision for employees' pensions . . . . . 379,06I Professional, consulting and other fees. 277,353 Other administrative and office expenses including maintenance and depreciation of office building I23,817 Total expenses disbursed . 780,231 Excess of income collected over expenses diisbursed. . . $40,834,043 48

The Andrew W. Mellon Foundation

Statement of Changes in Principal Calendar Year 1970

Balance at beginning of year ...... $220,3I4,I9I Distribution from trusts - cash and securities at fair market value at dates of acquisition (Note2 ) ...... 376,12I,670 Excess of income over expenses, per statement ...... 40,834,043 Gift of cash ...... 50,000 Grants paid ...... (29,993,577) Net loss on sales of securities ...... (6,o68,876) Balance at end of year ...... $60I,257,451

NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1970 NOTE 1: The accounts of the Foundation are maintained on the basis of cash receipts and disbursements except that depreciation expense is recorded in the accounts. Accrued investment income and accrued excise tax not recorded totaled approximately $2,632,000 and $820,000, respectively, at December 31, 1970. Other items of income and expense not included in the statements are not significant. NOTE 2: The Foundation has remainder interests in certain trusts established by the late Ailsa Mellon Bruce during her lifetime and is residuary legatee under her will. Pursuant to these instruments distributions of cash and securities totaling $396,380,819, including $20,259j,49 of income received by the trusts subsequent to date of death, were received by the Foundation during 1970. Additional distributions may be received in the future. 49

The Andrew W. Mellon Foundation

Investment Securities December 3'Z, 1970

Principal Approximate Bonds and Notes: Amount Book Valse Market Value U.S. Treasury Bills:

Due January 7, I97 I . . . . $ 250,000 $ 246,628 $ 247,000

Due January I4, I971 . . . . I,400,000 I,382,527 1,383,000

Due February i8, I97 I . . . . 2,200,000 2,I79,296 2,I79,000 Due March Ii, I97I 3,000,000 2,962,690 2,963,000

Due March i8, I97I . . . . I,900,000 I,877,33I 1,877,000 8,648,472 8,649,000 Other U.S. Government obligations: Federal Home Loan Banks 8.45 %, June 25, I971 . 2,500,000 2,5 I7,490 2,534,000 Federal National Mortgage Assn. 4½%2 , September io, I97 I I,000,000 I,002,267 990,000 5 %, January I9, I972 . 3,000,000 2,84I,563 2,974,000 Treasury Bonds 4%8%, November I 5, I 973 2,500,000 2,483,984 2,39I,000 4½89%, February I5, I974 . . 3,000,000 2,988,228 2,846,ooo Government National Mortgage Assn. 6.20%, August 12, I988 . 3,000,000 2,585,550 2,677,000 14,4Ig,o82 I4,4I2,000 Total U.S. Government obligations 23,o67,554 23,06I,000 Commercial paper: C.I.T. Financial Corp. 5 ½2%, March 2, I971. . . . . I,500,000 I479,I46 1,479,000 Ford Motor Credit Corp. 7%, January I3, 197I. . . . . 1,000,000 982,500 982,000 7%, January 20, 197.I . 2,000,000 2,000,000 2,000,000 53/8 %, February 24,197I . . . 2,700,000 2,700,000 2,700,000 5 Y2%, March 30,I97I . . . . 900,000 887,625 888,ooo General Electric Credit Corp. 638A%, January 20, I971 . . . . 6oo,ooo 6oo,ooo 6oo,ooo 53/4%, February 23,97I . . . I,200,000 I,I82,5 58 I,I83,000 53/8 %, March I2,I97I . . . . 3,I00,000 3,o66,675 3,o67,000 5 Y2%, March 22,I97I . . . . 2,000,000 I,972,I94 1,972,000 50

Principal Approximate BONDS AND NOTES (continued) Amount Book Value Market Value Morgan Guaranty Trust Co. 5Y20%, March I5, I97I * . 2,000,000 2,000,000 2,000,000 5Y8%,MayI4,I97I . . I,300,000 1,300,000 I,300,000 New Jersey Bell Telephone Co. 5 Y2 %, February 3, I1971 . 1,000,000 99 I,292 99 I,000 J. C. Penney Credit Corp. 5 2g%, February 3, I97 I *. 1,000,000 I,000,000 I,000,000 Sears Roebuck Acceptance Corp. 63/4%,Januay 5, I971I 4.I400,000 1,400,000 I,400,000 5 V4%, Februar IO, I97 I . I,900,000 I,900,000 I,900,000 Westinghouse Credit Corp. 65/8 %, January 7, I97 I . 2,000,000 2,000,000 2,000,000 65/8 %g, January 27, I97 I . . 2,800,000 2,800,000 2,800,000 Total commercial paper . 28,26I,990 28,262,000 Corporate and other: Public utility: Bell Telephone Co. of Canada 4.85%, September I, 1995 . . 500,000 500,000 3 I4,000 6.90%, September I7, 1998 . . 250,000 250,000 207,000 Chesapeake & Potomac Telephone Co. 7V4%,MayI,2009 ..... 1,000,000 878,530 963,000 Cincinnati Gas & Electric Co. 8 ½8 %g, December I,2000 . . 2,000,000 2,0I 5,868 2,o85,ooo Commonwealth Edison Co. 6¼4%,February I, I998 2,000,000 I,7I8,320 I,743,000 Connecticut Light & Power Co. 67/8%, October I, I998 . . 2,000,000 1,700,840 I,855,000 Consumers Power Co. 578%,JulYI996iqq6 500,000 4 I I,800 42 I,000 6A8%, October I,I998 . . 1,200,000 1,051,200 i,o85,000 Cook County School District 3%,January , I97I . . I00,000 96,8I6 I00,000 Detroit Edison Co. 6.40%, October I, I998 2,500,000 2,063,485 2,207,000 Duke Power Co. 8%, September I, I999 1,000,000 I,004,750 1,000,000 7%,February I, I999 . 2,000,000 1,775,680 I,872,000 63/8 %, February I, I998 2,250,000 I,989,445 I,994,000 Florida Power Corp. 7 %, November I, I998 . . 3I,500,000 1,299,875 1,405,000 5I

Principal Approximae BONDS AND NOTES (continued) Amount Book Vale Market Value Georgia Power Co. 65%8%, September I, I998 2,000,000 I,709,425 i,8o8,ooo 87/8 %, September I, 2000 2,000,000 2,0I5,478 2,I05,000 Illinois Bell Telephone Co. 6%, July I, I 998. I,400,000 1,I54,7I0 I,I93,000 Michigan Bell Telephone Co. 63/8 %, February 1, 2005 . 1,500,000 I,367,I00 I,326,000 85/8 %, February I, 2X00 . 2,250,000 2,28I,484 2,35 I,000 Mountain States Telephone & Telegraph Co. 6%, August I, 2007. I,000,000 822,900 840,000 8 %, October I, 2009. 2,000,000 I,920,I85 2,010,000 New England Telephone & Telegraph Co. 6V8 %, October 1, 2006 . 1,000,000 768,775 857,000 Northern Illinois Gas Co. 6%, August I, I99 I I,000,000 765,I I 5 835,000 Northern States Power Co. 8%, October i,I 999. I,000,000 96I,680 I,OOO,OOO Ohio Edison Co. 8%4%, September I, I999 I,900,000 I,886,627 I,938,000 Pacific Telephone & Telegraph Co. 6½2%, JulyI, 2003 1,000,000 834,x88 895,000 6%, November I, 2002 . I,000,000 9 I I,965 845,000 Philadelphia Electric Co. 68g%, October I, 1997 . . . . 2,250,000 I,882,550 I,953,000 Public Service Electric & Gas Co. 6 ,%,June I, 1997 I,000,000 823,415 867,000 San Diego Gas & Electric Co. 7 %, December I, I998 . . . I,500,000 I,383,670 I,405,000 South Central Bell Telephone & Telegraph Co. 8/4 %, December I, 2004 . . 2,000,000 2,0I9,706 2,040,000 Southern Bell Telephone & Telegraph Co. 6%, Ocober I, 2004 . . . . . 1,000,000 844,653 843,000 Southern California Edison Co. 78 %,January 15, I994 . * * * 500,000 463,420 477,000 57/8% May I5, 1992 . . . . . 500,000 501,070 423,000 Southwestern Bell Telephone & Telegraph Co. 5 7/8 %, June I, 2003 . . . . . I,000,000 784,000 829,000 8¼4%, September I, 2005 . . . 2,000,000 1,947,7 I9 2,040,000 52

Principal Approximate BONDS AND NOTES (continued) Amount Book Valu Market Vale Union Electric Co.

7%,April I, I998 . 1,000,000 9II,370 937,000 8¼4%,October I, I999 I1,000,000 I,014,250 I,OI 5,000 Wisconsin Telephone & Telegraph Co. %, 2,000,000 I,583,240 I,727,000 6¼4 August I,2004 . 48,3I5,304 49,8 Io0oo Industrial and others: Atlantic Coast Line Railroad 208,000 43/8 %, August I, I977 . 250,000 244,858 43/8 %, August I, I 978 250,000 244,540 203,000 Bethlehem Steel Corp. 67/8 %, March I, I 999. 3,000,000 2,646,800 2,89 I,OOO Caterpillar Tractor Co. 5.30 %, April I, 1992. I,500,000 I,238,0oo I1,226,ooo Deere & Co. 5.40%, February I5, I992 500,000 500,000 400,000 Dow Chemical Co. 6.70%, June I, I998 470,000 470,000 435,000 Federated Dept. Stores, Inc. 83/8%, September I5, 1995 I,000,000 987,500 1,038,000 Ford Motor Co. 8 %8%, January I 5, I990 1,500,000 I,463,125 I,56o,ooo General Aniline and Film Corp. 57/8 %, December i, I99 I 500,000 500,988 423,000 General Motors Accept. Corp. 78%, December i, I990 I,000,000 889,290 950,000 Household Finance Corp. 7¼4%,JanuaryI,1990 500,000 442,385 453,000 Inland Steel Co. 6½2%, December i, 1992 I1,000,000 862,500 920,000 International Bank for Reconstruction and Development 57/8 %, September I, 1993 2,500,000 1,950,000 2,o88,ooo

63/8 %, October I, I 994 . 1,000,000 857,250 882,000

8 58 A%, August I, 199 5 . 2,000,000 2,000,000 2,095,000 International Nickel Co.

6.8s%, April i, I993 . 3,000,000 2,664,208 2,790,000 Kimberly-Clark Corp. 57/%, September I, i99 i 2,000,000 I,622,400 1,7 I 3,000 53

Principal Approximate BONDS AND NOTES (continued) Amount Book Value Market Value Pittsburgh Plate Glass Co. s5/8%,August I, I99I 2,000,000 I,672,050 I,650,000 Province of Ontario 7 Y8%, August I, i998 I ,000,000 835,650 889,ooo 83%8%, September I, I999 I,500,000 I,457,736 I,5 I 5,000 Sears Roebuck & Co. 63/8o%,AprilI,I993 I ,000,000 927,332 9 I 9,000 Standard Oil of California 53/4%,August I, I992 2,000,000 I,798,500 I,7I8,000 Standard Oil Co. of Indiana 6%, January 15, I998. 2,250,000 I,972,208 I,972,000 Texaco, Inc. 5s¾4%, July I 5, I997 I ,000,000 94I,250 847,000 Union Bank (Los Angeles) 45/Y8%,November 26, I988 500,000 500,000 364,000 Virginian Railway 6%, August I, 2008 I 00,000 88,590 72,000 Western Electric Co. 83/8 %, October i, I 995 1,000,000 987,500 1,040,000 Weyerhaeuser Co. 5.20%, May I, I99I 1,000,000 I,000,000 8 I 0,000 Total industrials and others 3I,764,760 32,07 I,000

Total corporate and other . . . . $80,o80,o64 $8 i,88. i,oo 54

Apfmoximate Corporate Stock: Shbare Book Vale Market Value Abrasives: Carborundum Co. * . . I150,000 5,925,000 7,331,000 Aluminum: Aluminum Co. of America * * 635,I00 3I,649,I22 36,359,000 Automobile: Ford Motor Co. * . . 43,000 I,458,250 2,419,000 General Motors Corp. * . . 73,424 3,069,4io 5,911,000 4,527,660 8,330,000 Banks: BankAmerica Corp.. * . . 59,880 2,764,903 3,982,000 Chase Manhattan Corp. * . . I 5,000 576,568 769,ooo Citizens and Southern National Bank ..* 35,43I 53I,8Io I,152,000 Mellon National Bank and Trust Co. . . . . 6i6,980 32,005,838 33,625,000 35,879,I I9 39,528,000 Building materials: National Gypsum Co. 24,738 54I,358 6o6,ooo U.S. Gypsum Co. 25,000 1,854,624 I,569,ooo Jim Walter Corp. 8o,000 2,297,434 2,870,000 Jim Walter Corp. $ i.6o conv. pfd. I 5,000 523,2IO 594,000 5,2i6,626 5,639,000 Chemicals: Allied Chemical Corp. . 57,9I8 2,507,951 I,397,000

E. I. duPont de Nemours Co. . 4,300 669,256 574,000 Koppers Co. 69,200 I,560,200 2,232,000 Monsanto Co. 44,863 2,274,550 I,486,ooo Union Carbide Corp. 47,000 2,568,775 I,874,000 9,580,732 7,563,000 Drugs: Bristol Myers Co. I0,000 774,35I 640,000 Merck & Co. 30,100 2,643,122 2,980,000 Schering Corp. 46,ooo I,890,229 2,886,ooo Upjohn Co. 40,000 1,798,I29 I,935,000 Warner-Lambert Co. 8,ooo 298,295 548,ooo 7,404,I26 8,989,ooo Electrical and electronic: General Electric Co. 47,500 3,454,8I3 4,459,000 Hewlett Packard Co. 8o,ooo I,705,23I 2,400,000 Honeywell, Inc. 2 I,000 1,979,352 I,743,000 Motorola, Inc. I 2,000 674,079 648,ooo Sperry Rand Corp. 50,000 I,9I2,575 I1,281,OO Texas Instruments, Inc. 6,300 583,300 507,000 I0,309,350 1 I,038,000 55

Apoximate CORPORATE STOCK (continued) Shares Book Vale Market Value Finance: C.I.T. Financial Corp. 6o,ooo 2,I07,I90 2,640,000 Standard Car Finance Corp. I64 -0- 4,000 2,I07,190 2,644,000 Foods: CPC International, Inc. .I8,ooo 836,606 6I2,000 General Foods Corp. 10,700 807,I02 936,ooo I,643,7o8 I,548,ooo Insurance: Capital Holding Corp.. 27,500 564,350 797,000 Connecticut General Insurance Corp. 82,500 4,259,053 4,352,000 General Reinsurance Corp. 4,500 698,549 2,0 I6,ooo Travelers Corp. 47,500 I,550,958 I,5 32,000 7,072,9 I0 8,697,000 Magnetic tape: Ampex Corp. 263,o84 4,143,573 4,834,000 Office equipment: International Business Machines Corp. 25,722 I,773,72I 8,I73,000 Rank Org. I 50,000 2,223,255 2;869,ooo Xerox Corp. 62,973 4,764,I00 5,447,000 8,761,076 I6,489,ooo Oil: Gulf Oil Corp. . . I0,2I3,709 265,I6I,392 330,669,ooo Paper: International Paper Co. 209,300 7,o87,599 7,378,ooo Kimberly-Clark Corp. 84,600 2,869,69 I 2,622,000 Mead Corp. 50,000 I,I I7,900 8 I 9,000 St. Regis Paper Co. 35,000 I,I57,I87 1,304,000 Union Camp Corp. . 54,000 I,104,823 I,647,000 Weyerhaeuser Co. 35,000 977,569 2,004,000 14,3I4,769 I5,774,000 Photography: Eastman Kodak Co. . 72,800 4,I23,680 5,5o6,ooo Polaroid Corp. 29,000 2,1Og,889 2,233,000 6,233,569 7,739,000 Railroads: Norfolk & Western Railway Co. . 10,000 1,1I8,231 666,ooo Retail: Allied Stores Corp. . 27,450 86I,I99 74I,000 Sears Roebuck & Co. 8,ooo 5oi,6i6 6I,I,ooo 1,362,8r5 1,351,000 56

Approximate CORPORATE STOCK (continued) Shares Book Valse Market Value Rubber: B.F. Goodrich Co. 54,000 2,146,830 I,499,000 Steel: Armco Steel Corp. 53,600 I,472,o64 I,I32,000 Hanna Mining Co. 300,I82 I2,827,865 I5,68 ,000 National Steel Corp. 25,000 I,340,655 I,072,000 I 5,640,584 I7,889,000 Utilities: American Electric Power Co. 38,I74 I,479,100 i,o88,ooo American Telephone & Telegraph Co. . 50,000 3,023,2 i8 2,444,000 Central and South West Corp. I0,000 479,525 485,000 Commonwealth Edison Co. I 3,000 692,879 499,000 Delmarva Power & Light Co. . 56,2I4 I,487,997 I,I I7,000 General Public Utilities Corp. I 5,000 529,9I2 343,000 Gulf States Utilities Co. 54,000 I,06o,6I 9 I,364,000 Houston Lighting & Power Co. 5,000 22,828 229,000 Middle South Utilities, Inc. i o6,ooo 2,422,009 2,822,000 Northern Illinois Gas Co. I4,250 543,367 5 I 3,000 Northern Indiana Public Service Co. 45,600 I,486,497 I,425,000 Northern Natural Gas Co. . 25,000 I,242,655 I,284,000 Public Service Co. of Colorado 29,925 837,235 696,ooo Southern California Edison Co. 27,032 606,882 868,ooo Southern Co. . 33,000 825,3I7 866,ooo Texas Gas Transmission Co. I5,000 492,677 578,ooo I7,422,7I7 I6,62I,000 Miscellaneous: American Hospital Supply Co. 2 I,000 3I4,184 738,ooo Caterpillar Tractor Co. . I5,000 34i,658 64I,000 Columbia Broadcasting System, Inc. . 7,746 522,937 237,000 Corning Glass Works. 6,500 I,174,099 I,149,000 Dun & Bradstreet, Inc. . i8,ooo 744,3 I 2 943,000 Lubrizol Corp. I9,000 786,524 1,432,000 Minnesota Mining and Manufacturing Co. 25,000 1,448,029 2,475,000 National Lead Co. 82,000 2,64i,084 I,5I7,000 Owens Corning Fiberglas Corp. i8,ooo 670,839 78i,ooo Sybron Corp...... I 5,000 504,707 426,ooo 9,I48,373 10,339,000

Total corporate stock . * . . * 466,769,472 561,536,ooo

Total investment securities . . . .$598,179,080 $694,740,000