Sargent's $10,000

What to do with the $10,000 which the late Professor Charles Sargent bequeathed to the "President and Fellows of Harvard College, to be by them invested and the income thereof to be added to the principal, for and during the term of 100 years from the date of my decease," was the problem last week of College Treasurer Charles Francis Adams.* At the end of the 100 years the principal would become, according to a compilation worked out last week by the Wall Street Journal, if invested at

4% $ 524.849 4 3/4% 1,093,405 5% 1,395,635 5 1/4 % 1,780,890 6 1/4 % 3,698,545

The compounded principal at the end of the 100 years is to be divided in two: the income on one-half to be spent currently by the Arnold Arboretum of which Professor Sargent was director; the income of the other half to be added to such half-principal for another 100 years. At the end of the 200 years the compounded sum would be, if invested at

4% $ 13,773,323 4 3/4% 59,776,397 5% 97,387,340 5 1/8 158,579,350 6 1/4 % 682,105,238

Harvard's assets of bonds, notes and mortgages were estimated to be worth (on June 30, 1926) $48,929,220; year's income to be $2,350,062; rate of return 4.80%.

Its assets of stocks and real estate $21,289,127; year's income $1,341,125; rate of return 6.30%.

Total investments $70,218,347; year's income $3,691,187; rate of return 5.25%.

Treasurer Adams' problem is: how can Sargent's $10,000 be best invested. Managing the possible growth of the $10,000 will be a far bigger problem than managing the College's present finances.

--Great-great-great-g randson of John Adams, famed second U. S. President.