REPORT OP THE ACTHSTG SECRETARY. 9 



In accordance with an enactment of Congress, the Government 

 branches of the Institution join with the Executive Departments in 

 drawing up each year a list of the more important supplies required 

 during the next twelve months. Proposals are thereupon requested 

 and awards are made to the lowest bidders. Reduced prices are 

 secured in this manner and the machinery of purchasing is greatly 

 simplified. The parent Institution has been privileged to share in 

 this arrangement, greatly to its advantage. 



FINANCES. 



The permanent fund of the Institution and the sources from which 

 it was derived are as follows : 



Deposited in the Treasury of the United States. 



Bequest of Smithson, 1846 $515,169.00 



Residuary legacy of Smithson, 1867 26,210.63 



Deposit from savings of income, 1867 108,620.37 



Bequest of James Hamilton, 1875 $1,000.00 



Accumulated interest on Hamilton fund, 1895 1,000.00 



— 2, 000. 00 



Bequest of Simeon Habel, 1880 500.00 



Deposit from proceeds of sale of bonds, 1881 51,500.00 



Gift of Thomas G. Hodgkins, 1891 200,000.00 



Part of residuary legacy of Thomas G. Hodgkins, 1894 8, 000. 00 



Deposit from savings of income, 1903 25,000.00 



Total amount of fund in the United States Treasury 937, 000. 00 



Held at the Smithsonian Institution. 



Registered and guaranteed bonds of the West Shore Railroad 



Company, part of legacy of Thomas G. Hodgkins 42, 000. 00 



Total permanent fund 979,000.00 



That part of the fund deposited in the Treasury of the United 

 States bears interest at 6 per cent per annum, under the provisions of 

 the act organizing the Institution and an act of Congress approved 

 March 12, 1894. The rate of interest on the West Shore Eailroad 

 bonds is 4 per cent per annum. 



By the final settlement of the estate of the late Thomas G. Hodg- 

 kins during the past year the Institution received, in May, 1906, the 

 balance of the residuary legacy left by this benefactor. It amounted 

 to $7,850, in the form of registered bonds of the United States, now 

 recorded in the name of the Smithsonian Institution, and held sub- 

 ject to the order of the Board of Regents. Interest had accumulated 

 on these bonds to the amount of $3,225.55, which sum was paid in 



