REPORT OF THE SECRETARY . 3 J 



FINANCE COMMITTEE 



Hon. Henry Morgenthau, Jr. ; 

 Hon. Cordell Hull; 

 Paul Mellon ; 

 David K. E. Bruce: 

 Ferdinand Lamniot Belin. 



Appropriate resolutions were passed relating to the reproduction 

 by photographs, or otherwise, of works of art controlled by the 

 Board, the use of such reproductions, the viewing and care of the 

 collection. The Board directed the treasurer, under the supervision 

 and subject to the approval of the finance committee, to cause to be 

 established an appropriate accounting system, including provisions 

 for the keeping of necessary books and records, so that the works 

 of art now under the control of the Board and all funds, securities, 

 and works of art and other properties of whatsoever character belong- 

 ing to or under the control of the Board and of such additions and 

 receipts thereto and disposition, withdrawals and disbursements 

 therefrom, may be properly recorded. 



Under the trust indenture of June 24, 1937, between the Trustees 

 of The A. W. Mellon Educational and Charitable Trust, the Smith- 

 sonian Institution, and the Trustees of the National Gallery of Art, 

 the Smithsonian Institution received title to the works of art given 

 by The A. W. Mellon Educational and Charitable Trust, upon the 

 understanding that pending completion of the Gallery, the donor 

 would retain custody of the gift, at its expense, and that upon 

 delivery, the gift would form part of the permanent collection in 

 the custody of the Trustees of the National Gallery of Art. Pur- 

 suant to its offer, accepted by the Trustees of the National Gallery 

 of Art at its meeting on March 9, 1938, The A. W. Mellon Educa- 

 tional and Charitable Trust has defrayed the current administrative 

 expenses of the Gallery, as well as the expense of storage and the 

 care of the collection pending the completion of the National Gallery 

 of Art. During the 18 months ended June 30, 1938, the total of such 

 administrative expenses and expenses of storage amounted to about 

 $150,000 principally accounted for by insurance premiums on policies 

 expiring in 1940. The collection is now stored in the Corcoran 

 Gallery of Art. The collection is in excellent condition and is being 

 well protected and cared for. The current expenses for the custody 

 of the collection are at the rate of approximately $12,000 per annum. 

 Such expenses are being paid by The A. W. Mellon Educational and 

 Charitable Trust and, of course, are not recorded on the books of 

 account of the National Gallery of Art. 



Pursuant to the joint resolution and the trust indenture of June 

 24, 1937, The A. W. Mellon Educational and Charitable Trust is 

 also proceeding, at its expense, with the construction of the National 



