Allen B. Pond to Erskine M. Phelps, December 4, 1905

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December 4, 1905

Erskine M. Phelps, Esq.
34 Wabash Ave., Chicago.

Dear Sir:

I desire to report herewith the disposition made by Hull House Trustees of the $15,000 paid to Hull House under the terms of the George E. P. Dodge will on October 11, 1905.

After conferences with several brokers dealing in bonds and with several bankers, we decided that the most available investment at the present time would be Chicago City bonds. Of the several lots offered to us the most desirable were certain Chicago City Bonds of denomination $1000 falling due January 1, 1919, and bearing 3-1/2% interest. Fifteen bonds of this denomination and character were purchased at 97.83 plus accrued interest, $205.62. Hull House will, therefore, get $525.00 per annum interest on the fifteen bonds and will receive back the $15,000 principal at the expiration of the period.

The amount paid for the bonds including accrued interest was $14,880.12. Of the original capital $15,000 there remain $119.88, which has been placed in the northern Trust Co. saving bank under the name “Hull House Association”, and to which will be added from the first installment of interest received by Hull house January, 1906, the $205.62 paid out for accrued interest and included in the $14,880.12 above mentioned.

It is proposed to keep this fund, $325.50, with the interest thereon compounded for use in connection with the $15,000 received on the bonds themselves, thus giving Hull House Association a little larger capital to work with when the time comes for re-investment, and [page 2] making it possible to buy another set of bonds at a premium without diminishing the principal, <and> without the necessity of adding a very large amount from other funds.

We trust that this will approve itself to you as a wise disposition of the fund.

Respectfully yours,

Secretary, Hull House Associat'n

 

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November 23, 1905

Hull House Association ... DODGE BEQUEST. Oct. 11, 1905. $15,000.00

Bequest ... $15,000.00
Interest @ 2% to Nov. 23. ... 35.34

$15,035.34

Paid Farson, Leach & Co. for 15- $1000
3-1/2% bonds of City of Chicago bought at 97.83 + accord interest $205.62 ... 14,880.12

155.22

To Safety Deposit Box in Illinois Trust 5.00

150.22

Portion belonging to original capital ($15000.00)   119.88

Awaiting order of Miss Addams $30.34

Deposited in Saving acct ... $119.88
Will add to it from first interest ... 205.62

The unexpected part of principal  325.50

the cost of bond sans advanced interest being ... 14,674.50

$15,000.00

Have opened Saving Deposit Account with Northern Trust Co. under name of Hull House Association, Allen B. Pond, Secretary, in which have been placed $119.88, unexpened balance of principal and to which it is proposed to add $205.62 from first dividend. This will give Hull House when the bonds are paid, $15,000 -- plus $325.50 for reinvestment. The annual income will be $52.00 on the bonds, $9.77 on the Savings account, total account, $534.77, being somewhat in excess of 3.6%

Allan B Pond [signed]
Secretary Hull house Associat'n

 

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