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THE WHITE HOUSE WASHINGTON FOR IMMEDIATE RELEASE CONTACT: LISA CAPUTO JANUARY 31, 1995 NEEL LATTIMORE page 1 of 2 KAREN FINNEY 202-456-2960 THE COMMITTEE FOR THE PRESERVATION OF THE WHITE HOUSE ANNOUNCES COMPLETION OF BLUE ROOM RENOVATIONS AND REFURBISHING WASHINGTON, DC -- The Committee for The Preservation of The White House today announced the completion of the renovation and refurbishing of the White House's Blue Room. The refurbishing was governed by the historic French objects purchased by President James Monroe in 1817. The process for the renovation and refurbishing of the Blue Room began in 1990 when the committee recommended that the room be refurbished. First Lady Hillary Rodham Clinton serves as honorary chair of the committee and was actively involved in the refurbishing project. Mrs. Clinton first met with the Committee in November of 1993. Working with a committee of historians, curators and designers, the First Lady took an active approach in the renovation process. The First Lady reviewed the committee's recommendations for the sapphire blue fabric and the gold wall covering, and met with the White House curators to discuss fabric samples, textures and the importance of maintaining the period style of the room. The Blue Room is one of three oval rooms in the White House and is located on the State Floor. The room, seen by 1.2 million visitors a year, was last refurbished in 1972. The draperies and furniture upholstery had become soiled, worn and sun damaged and needed to be replaced, as did the badly worn mid-nineteenth century Chinese carpet which has been in the room since 1975. The sapphire blue fabric used for the draperies and furniture covering is similar in color to fabric used in the room in the 1800's. The silk upholstery fabric retains the gold eagle medallion on the chair backs which was adapted from the depiction of one of the Monroe-era chairs in a portrait of President James Monroe. The Monroe-era furniture, consisting of seven original chairs and four reproductions and a sofa, was upholstered by Nelson Beck of Washington, DC. (The portrait of President James Monroe by John Vanderlyn is owned by the City of New York and hangs in the City Hall.) The blue satin draperies have a blue and gold tape adapted from the wallpaper frieze. The drapery valances are blue and gold. The silk fabrics were made by Scalamandre Silks, Inc., of New York, New York. The draperies are the same design as the previous draperies -more- Blue Room - Preservation Committee page 2 of 2 which were derived from an early 19th century French source. The curtains were constructed by Nelson Beck of Washington, DC. The walls have been hung with a light gold paper, which has alternating classic motifs in a darker gold. The design is adapted from an early 19th century American paper in the collection of the Society for the Preservation of New England Antiquities in Boston, Massachusetts. The borders are adapted from two early 19th century French papers in the collection of the Cooper Hewitt National Design Museum, the Smithsonian Institution, in New York. The upper border is a blue drapery swag. with gold classical motifs; the lower border along the chair rail has a blue and gold pattern with rosettes. The wall paper was made by Brunschwig & Fils of New York, New York. The room has been painted and gilded to reflect the style of finish found in an American room of the first quarter of the 19th century. The wainscoting, door surrounds and window reveals, received extensive conservation to redefine their detailing. The woodwork has been painted white with a rubbed paint finish giving the wood a "porcelain" appearance. The faux marble painted on the baseboards has been removed to reveal the white marble installed in the Truman era. The acanthus leaves in the cornice and in the ceiling medallion have been gilded, as have the three lines of molding in the cornice. A major component of the project was the preservation and conservation of the historic furnishings in the room and of the early 19th century American "looking glass" which hangs over the mantel. This part of the project involved repairs and partial regilding of the items. Retained in the room are the French gilded bronze clock and a mahogany center table. Two 19th century pier tables and two pieces of sculpture - the marble busts of Christopher Columbus and Amerigo Vespucci - were added to the room. A carpet, based on early 19th century designs, is being made for the room and is expected to be installed in the room this spring. The carpet is being made by the Stark Carpet Company of New York, New York. ### attached: committee list EDITOR'S NOTE: The Blue Room will be officially unveiled on February 17 at the meeting of the Committee for the Preservation of the White House. There will be a press preview of the room and a opportunity to talk with the First Lady and the individuals involved in the renovation and refurbishing project at that time. Space for this press preview is limited. Please contact the First Lady's Press Office if you would like to cover this event - 202-456-2960. THE WHITE HOUSE WASHINGTON COMMITTEE FOR THE PRESERVATION OF THE WHITE HOUSE Executive Order 11145, March 7, 1964 HILLARY RODHAM CLINTON, Honorary Chair MEMBERS BY EXECUTIVE ORDER ROGER G. KENNEDY Director, National Park Service Chairman REX W. SCOUTEN Curator, The White House I. MICHAEL HEYMAN Secretary, Smithsonian Institution EARL A. POWELL, III Director, The National Gallery of Art J. CARTER BROWN Chairman, Commission of Fine Arts GARY J. WALTERS* Chief Usher, The White House JAMES I. McDANIEL Associate Regional Director Secretary for White House Liaison, National Park Service MEMBERS BY PRESIDENTIAL APPOINTMENT MRS. LEONORE ANNENBERG Former U.S. Chief of Protocol LESLIE GREENE BOWMAN* Curator of Decorative Arts, Los Angeles County Museum of Art WENDY COOPER* Curator of Decorative Arts, The Baltimore Museum of Art MRS. JANE ENGELHARD -2- JONATHAN FAIRBANKS Curator of American Decorative Arts and Sculpture, Museum of Fine Arts, Boston MARK HAMPTON* Interior Designer KAKI HOCKERSMITH* Interior Designer JANICE M. JOHNSON WILLIAM KLOSS Art Historian and Author RICHARD MOE President, National Trust for Historic Preservation RICHARD NYLANDER* Chief Curator, Society for the Preservation of New England Antiquities JOHN L. RICHARDSON Attorney J. THOMAS SAVAGE, JR. Curator, Historic Charleston Foundation JOHN WILMERDING Professor in American Art, Princeton University CONSULTANTS TO THE COMMITTEE BETTY C. MONKMAN* Associate Curator, The White House MARGARET A. WILLIAMS Assistant to the President and Chief of Staff to the First Lady * Blue Room Subcommitte Members 59/4/3/1 Clinton Library Transfer Form Case #, if applicable Accession # Collection/Record Group Clinton Presidential Records Series/Staff Name Maggie Williams Subgroup/Office of Origin First Lady's Office Subseries Subject File Folder Title Brochures [2] OA Number 10814 Box Number Description of Official White House photo of the Blue Room, F04275-01, 30Jan1995, Stored in AV regular storage on 12-5-4-6 Item(s) Donor Information Last Name: First Name: Middle Name: Title: Affiliation: Phone (Wk): Phone (Hm): Street: City: State (or Country): Zip: Transferred to: Audio/Visual Department Other (Specify): Transferred by: Brittany Cochran Transfer Point Date of Tranfer 1/23/2013 The White House Endowment Fund FOR IMMEDIATE RELEASE January 31, 1995 page 1 OF 2 WHITE HOUSE ENDOWMENT FUND ANNOUNCES COMPLETION OF BLUE ROOM RENOVATIONS AND REFURBISHING WASHINGTON, DC -- The White House Endowment Fund is pleased to announce their participation and support in the completion of the renovation of the Blue Room of the White House. Renovating and refurbishing of the Blue Room began on January 3, 1995. Work done in the Blue Room includes replacing the wall paper, drapes and furniture fabric, repainting the room, and the preservation and conservation of historic objects in the room. The Blue Room project is the first major White House renovation project funded exclusively by the White House Endowment Fund. The Blue Room will be officially reopened on February 17, 1995 at the bi-annual meeting of the Committee for The Preservation of the White House. The White House Endowment Fund was established in 1990 as a non- profit charitable organization and subsidiary of the White House Historical Association to raise a $25 million endowment. The purpose of this endowment is to support, in perpetuity, the preservation and conservation of the public rooms of the White House, and the acquisition of objects for the White House collection of fine and decorative arts. The estimated cost for the renovation and refurbishing of the Blue Room is $358,358.80. Funds sufficient to underwrite the cost of the project were made available through the investment proceeds accrued from the Endowment Fund's current principal of $12 million. The Chief Usher and Curator of The White House are authorized to request support from the endowment for all projects. The Board of Directors of the White House Endowment Fund is responsible for raising the endowment and approving expenditures within an amount specified for spending each year. Contributions made to the White House Endowment Fund are tax-deductible to the maximum extent allowed by law. -more- 740 JACKSON PLACE. NW WASHINGTON. D.C. 20503 202/789-1145 FAX 202/789-0440 Blue Room - Endowment Fund page 2 of 2 The Chair of the White House Endowment Fund is Mrs. Nancy M. Folger. More than one hundred and fifty individuals, corporations, and private foundations have contributed to the White House Endowment Fund. For additional information contact: Mr. Neil Horstman, Executive Vice President, White House Historical Association - 202-737- 0025, or, Mrs. Nancy M. Folger, Chair, the White House Endowment Fund - 202-789-1145. ### Attached: List of suppliers EDITORS NOTE: The Blue Room will be officially unveiled on February 17, 1995 at the meeting of the Committee for the Preservation of the White House. There will be a press preview of the room and an opportunity to talk with the First Lady and the individuals involved in the renovation and refurbishing project at that time. Space for this press preview is limited. Please contact the First Lady's Press Office is you would like to cover this event - 202-456-2960. WHITE HOUSE ENDOWMENT FUND BOARD OF DIRECTORS Mrs. Nancy M. Folger, Chair Mrs. Earle M. Craig, Jr., Past Chair and current member Mrs. Anne Fisher Mrs. Graham Gund Mr. George B. Hartzog, Jr. Mrs. Suzanne V. Hascoe Mr. Roger Horchow Mrs. Linda Johnson Rice Mrs. Thomas McLarty Mr. A. Paul Prosperi Mrs. William D. Ruckelshaus Mr. Alfred R. Stern Ms. Susan P. Thomases 1995 BLUE ROOM RENOVATION SUPPLIERS ESTIMATES OF EXPENDITURES WALLPAPER (manufacture) $ 24,215.00 Mr. Thomas Marshall Brunschwig & Fils (914) 684-5800 WALLPAPER (installation) $ 13,133.80 Mr. Robert Kelly WRN Associates (413) 243-3489 FABRIC $112,000.00 Mr. and Mrs. Edwin Bitter (Adriana) Scalamandre Silks, Inc. (718) 361-8500 UPHOLSTERY (labor) $ 38,250.00 DRAPERY (labor) $ 15,000.00 Mr. Nelson Wurz Nelson Beck of Washington, Inc. (202) 387-4114 GILDING WORK (furniture) $ 25,000.00 Mr. Thom Gentle Thom Gentle Consultants (802) 694-1475 PAINTING & ARCHITECTURAL GILDING $ 61,560.00 Mr. Brandon Thompson Interiors (703) 519-8870 MARBLE WORK $ 3,500.00 Mr. Daniel Errigo U.S. Marble & Granite (301) 595-7400 -2- REIMBURSEMENT TO THE U.S. GOVERNMENT $ 17,200.00 (labor and other support) ESTIMATED COST FOR CARPET $ 48,500.00 ESTIMATE TOTAL $358,358.80 02/14/95 15:39 2027890440 WH ENDOW FUND 002 The White House Endowment Fund THE WHITE HOUSE ENDOWMENT FUND BOARD OF DIRECTORS AGENDA February 17, 1995 1. Welcome new Directors Mission of Endowment Mrs. Folger 2. Background on the Endowment Fund Mrs. Craig 3. Introduction of the First Lady Mrs. Folger - LUNCH - 4. Approval of Minutes of September 8, 1995 Mrs. Folger - BREAK - 5. Review of financial condition and activities - 1994 audit Mr. Horstman 6. Revised 1995 Operating Budget Mr. Horstman 7. 1995 Spending Target Mrs. Folger 8. Election of Officers Mrs. Folger 9. Election of legal council Mr. Horstman 10. 1995 audit Mr. Horstman 11. Board responsibilities and strategies Mrs. Folger 12. Congressional appropriation George Hartzog 13. Confirmation of East Room ballot Mrs. Folger 14. Board responsibilities and Fund raising strategy Mrs. Folger 15. Next meeting Mrs. Folger 740 JACKSON PLACE NW WASHINGTON, D.C. 20503 202/789-1145 FAX 707/789-0440 The White House Endoument Fund January 30, 1995 1~ 3~ Dear 2-, As we approach the end of January, I wanted to be in touch to let you know about the plans for The White House Endowment Fund's first Board meeting of 1995, scheduled for February 17. By now you should have been contacted by phone regarding the date of the meeting. I have enclosed the agenda for the day's events. I am especially excited about the Blue Room reception which will be the official re-opening of the room following its complete renovation. This is the first project that has been made possible through the efforts of The Endowment Fund. Although we have our work cut out for us, I am certain that by pooling our ideas and resources, we will be able to meet our fundraising goal of $12 million. Please be thinking of potential donors and bring your thoughts with you on the 17th. Presently, we are working on putting together the new White House Endowment Fund brochure. We hope that, at the very least, the final draft will be ready by the time of the meeting so that you can see it. So far, the design and layout looks great! I trust that you have already reserved February 17 on your calendar. In the event that you are unable to attend, please let me know at your earliest convenience. We try to meet only twice a year, so your presence is particularly important at this, our initial gathering. Prior to our meeting, Mrs. Clinton has graciously invited us to a luncheon at the White House. You should be receiving a separate invitation soon. Do call if you should have any questions, comments or ideas. I look forward to seeing you soon. Sincerely, Nancy Folger Chairman 740 JACKSON PLACE, NW WASHINGTON, D.C. 20503 202/789-1145 FAX 202/789-0440 The White House Endowment Jund FRIDAY, FEBRUARY 17TH SCHEDULE OF EVENTS 12:00 p.m: Luncheon with Mrs. Clinton The White House 1:00-4:00 p.m: Meeting and tour of the White House 4:00 p.m: Reception, The Blue Room 740 JACKSON PLACE. NW WASHINGTON, D.C. 20503 202/789-1145 FAX 202/789-0440 The White House Endoument Jund THE WHITE HOUSE ENDOWMENT FUND BOARD OF DIRECTORS AGENDA February 17, 1995 1. Welcome new Directors Mrs. Folger HRC speak 2. Background on the Endowment Fund Mrs. Craig 3. Approval of Minutes of September 8, 1995 Mrs. Folger 4. Review of financial condition and activities - 1994 audit Mr. Horstman 5. Revised 1995 Operating Budget Mr. Horstman 6. Election of Officers Mrs. Folger 7. 1995 Spending Target Mrs. Folger 8. Election of legal counsel Mr. Horstman 9. 1995 audit Mr. Horstman 10. Confirmation of East Room ballot Mrs. Folger Sample 11. Board responsibilities and Fund raising strategy Mrs. Folger t Susan Thomases 12. Congressional appropriation Mr. Hartzog 13. Next meeting follow Mtg up Mrs. Folger Tour start East Room 740 JACKSON PLACE, NW WASHINGTON, D.C. 20503 202/789-1145 FAX 202/789-0440 The White House Endowment Fund The White House Endowment Fund Fiscal Year 1995 Budget Interim Final Recomendation Payroll $45,000 64,800 Payroll Taxes 3,300 4,750 Workmen's Compensation 300 430 Health Insurance 0 2,150 Ins. Other/Bond 5,500 5,500 Office Supplies 350 500 Furniture 0 2,000 Telephone 2,000 2,500 Equip. Maint. and Repair 1,000 1,000 Accounting and Audit 10,600 10,600 Prof. Fees 2,000 2,000 Postage and Shipping 1,000 1,000 Duplicating 350 350 Promo. Mtl./Print. 4,500 22,000 Software 150 150 Directors' Meetings 3,500 3,500 Trust and Invest. Fees 66,000 66,000 Bank Svc. Charges 200 200 Staff Travel/Expenses 5,000 5,000 Fund Raising/Events 9,000 12,000 Misc./Contingency 2,000 2,000 Total $161,750 $208,430 Percent of Assets: 1.26% 1.63% 740 JACKSON PLACE, NW WASHINGTON, D.C. 20503 202/789-1145 FAX 202/789-0440 SUMMARY OF WHITE HOUSE ENDOWMENT FUND RESOURCES JANUARY 1995 (Revised) Income available for expenditures from past years: 1992: $38,975 1993: 93,071 1994: 428,414 Total: $560,460 Calculation of 1995 funds available: Average market value (1994) : $12,502,005 Spending policy options: @4 percent: $500,080 @5 percent: $625,100 Less oper.exp. 220,000 220,000 Total: $280,080 $405,100 Plus past yrs: $560,460 $560,460 $840,540 $965,560 Less obligations: -china $80,000 $80,000 -Blue Room 358,000 358,000 -East Room 280,000 280,000 Net available: $122,540 $247,560 in FY '95 NOTE: The Board of Directors of The Endowment Fund has approved an annual spending policy of five percent (5%) of the average market value, less operating expenses. THE WHITE HOUSE ENDOWMENT FUND BOARD OF DIRECTORS Folger, Mrs. Nancy M., Chairman 2918 33rd Place Washington, DC 20008 telephone: (202) 338-3860 Barclay, Mr. Rutgers 424 Canyon Road Santa Fe, NM 87501-2718 telephone: (501) 986-1400 (501) 984-3007 (FAX) Craig, Mrs. Earle M. Jr. (Dottie), Past Chairman 1701 Douglas Avenue Midland, TX 79701 telephone: (915) 682-4141 (915) 682-2548 (FAX) One First City Center 500 West Texas Avenue, 1290 Tower One P.O. Box 1351 Midland, TX 79702-1351 telephone: (915) 682-8244 (also FAX) secretaries: Karen Neinast , Lisa, Glenda Fisher, Mrs. Anne (Jerome) 114 Long Neck Point Road Darien, CT 06820 766 Hi Mount Road Palm Beach, Florida 33480 Telephone: (407) 848-7611 Gund, Mrs. Graham (Ann) 25 Craigie Street Cambridge, MA 02138 telephone: (617) 491-8080 Hartzog, Mr. George B., Jr. (Helen) 1643 Chain Bridge Road McLean, VA 22101 telephone: (703) 356-1566 (703) 506-1929 - 2 - Hascoe, Mrs. Suzanne V. (Norman) 35 Mason Street Greenwich, CT 06830 telephone: (203) 629-3453 (H) ***attention: Sophia James 24 Field Point Road Greenwich, CT 06830 telephone: (203) 661-7600 (O) Horchow, Mr. Roger (Carolyn) 5956 Sherry Lane #1616 Dallas, TX 75225 telephone: (214) 363-0889 (214) 363-0924 (FAX) 5722 Chatham Hill Road Dallas, TX 75255 telephone: (214) 369-0612 (h) 33 Cliff Road Nantucket, MA 02554 telephone: (508) 228-5222 (508) 228-5223 (FAX) 1 East 66th Street New York, NY 10021 telephone: (212) 734-6066 (212) 869-3963 McLarty, Mrs. Thomas (Donna) 2475 Kalorama Road, N.W. Washington, DC 20008 telephone: (202) 332-1346 Prosperi, Mr. A. Paul 25 Sunrise Avenue Palm Beach, FL 33480 telephone: (407) 832-5696 (407) 659-5371 (FAX) - 3- Rice, Linda Johnson Johnson Publishing Company, Inc. 820 South Michigan Avenue Chicago, IL 60605 telephone: (312) 322-9369 assistant: Helena Boyd Ruckelshaus, Mrs. William D. (Jill S.) 5520 Woodway Houston, TX 77056 telephone: (713) 622-5223 Stern, Mr. Alfred R. (Joanne) 430 Park Avenue 6th Floor New York, NY 10022 telephone: (212) 308-6994 (212) 832-0483 (FAX) secretary: Pat Sullivan 791 Park Avneue New York, NY 10021 William Bettridge Thomases, Ms. Susan P. ( Willkie, Farr and Gallagher One Citicorp Center 153 East 53rd Street New York, NY 10022-4669 telephone: (212) 935-8000 assistant: Angie argela Lourence Home oddress WHITE HOUSE HISTORICAL ASSOCIATION 740 Jackson Place, N.W. Washington, D.C. 20503 (202) 737-8292 BOARD OF DIRECTORS January 1995 Dr. James H. Billington Librarian of Congress 1st and Independence Avenue, SE Washington, DC 20540 Mr. Robert L. Breeden 8301 Alvord Street McLean, VA 22102 Mr. J. Carter Brown Chairman, Commission of Fine Arts 1201 Pennsylvania Avenue, NW Suite 621 Washington, DC 20004 Mr. Nash Castro P.O. Box 51 Palisades, NY 10964 Mrs. Jeannine Smith Clark 1844 Randolph Street, NW Washington, DC 20011 Mr. Henry Anderson Dudley, Jr. Executive Vice President Financial Services Group Riggs National Bank 808 - 17th Street, NW 12th Floor Washington, DC 20006 Mrs. Nancy M. Folger 2918 - 33rd Place, NW Washington, DC 20008 Carson M. Glass, Esq. 3719 - 63rd Drive Lubbock, TX 79413-5309 2 Mr. Gilbert M. Grosvenor President and Chairman of the Board National Geographic Society 1145 - 17th Street, NW Washington, DC 20036-4688 George B. Hartzog, Jr., Esq. 1643 Chain Bridge Road McLean, VA 22101 Mr. Ira Michael Heyman The Secretary Smithsonian Institution Washington, DC 20560 Mr. Roger G. Kennedy Director National Park Service 3104 Interior Building P.O. Box 37127 Washington, DC 20013-7127 Dr. Elise K. Kirk 4738 Foxhall Crescents, NW Washington, DC 20007 Mr. James I. McDaniel 8015 Sunset Path Court Springfield, VA 22153 Dr. Floretta Dukes McKenzie The McKenzie Group Columbia Square 555 - 13th Street, NW Suite 1280-E Washington, DC 20004 Mrs. Trudy Huskamp Peterson Acting Archivist National Archives and Records Administration Pennsylvania Avenue at 8th Street, NW Washington, DC 20408 Dr. Roger B. Porter Professor, Government and Business Kennedy School Harvard University 79 John F. Kennedy Street Cambridge, MA 02138 3 Mr. Earl A. Powell III Director The National Gallery of Art Washington, D.C. 20565 Mr. Hugh S. Sidey Contributing Editor Time Magazine 1050 Connecticut Avenue, NW Suite 850 Washington, D.C. 20036 Leonard L. Silverstein, Esq. Silverstein and Mullens 1776 K Street, NW 8th Floor Washington, D.C. 20006 Mr. Alfred R. Stern 430 Park Avenue Suite 600 New York, NY 10022 Mrs. Joy Carter Sundlun 2700 Calvert Street, NW Washington, D.C. 20008 Ms. Susan P. Thomases Willkie Farr & Gallagher One Citicorp Center 153 East 53rd Street New York, NY 10022-4669 Honorary Director -- Mr. Bernard R. Meyer 6813 Millwood Road Bethesda, MD 20817 Directors Emeriti - Clark M. Clifford, Esq. 901 - 15th Street, NW Suite 400 Washington, DC 20005-2327 Dr. G. Franklin Edwards 4643 - 16th Street, NW Washington, DC 20011 4 Mr. George M. Elsey 5351 MacArthur Boulevard Washington, DC 20016 THE WHITE HOUSE WASHINGTON COMMITTEE FOR THE PRESERVATION OF THE WHITE HOUSE MEMBERS BY EXECUTIVE ORDER Mr. Roger G. Kennedy Director, National Park Service P.O. Box 37127 Washington, D.C. 20013-7127 (202) 208-4621 Mr. Rex W. Scouten Curator The White House Washington, D.C. 20500 (202) 456-2550 Mr. I. Michael Heyman Secretary, Smithsonian Institution 1000 Jefferson Drive, S.W. Washington, D.C. 20560 (202) 357-1846 Mr. Earl A. Powell, III Director, The National Gallery of Art 4th and Constitution Avenue, N.W. Washington, D.C. 20565 (202) 737-4215 Mr. J. Carter Brown Chairman, Commission of Fine Arts 1201 Pennsylvania Avenue, N.W. Suite 621 Washington, D.C. 20004 (202) 347-1906 Mr. Gary J. Walters Chief Usher The White House Washington, D.C. 20500 (202) 456-2650 Mr. James I. McDaniel Associate Regional Director White House Liaison National Park Service National Capital Region 1100 Ohio Drive, S.W. Washington, D.C. 20242 (202) 619-6344 THE WHITE HOUSE WASHINGTON COMMITTEE FOR THE PRESERVATION OF THE WHITE HOUSE MEMBERS BY PRESIDENTIAL APPOINTMENT The Honorable Leonore Annenberg 312 Llanfair Road Wynnewood, Pennsylvania 19096-0260 (215) 642-0560 Ms. Leslie Greene Bowman Curator and Department Head Decorative Arts Los Angeles County Museum of Art 5905 Wilshire Boulevard Los Angeles, California 90036 (213) 857-6041 Ms. Wendy Cooper Curator of Decorative Arts The Baltimore Museum of Art Art Museum Drive Baltimore, Maryland 21218 (410) 396-6328 Mrs. Charles W. Engelhard, Jr. Cragwood Far Hills, New Jersey 07931 (908) 766-7224 Mr. Jonathan Fairbanks Katharine Lane Weems Curator of American Decorative Arts and Sculpture Museum of Fine Arts 465 Huntington Avenue Boston, Massachusetts 02115 (617) 267-9300 x270 Ms. Nancy M. Folger 2918 33rd Place, N.W. Washington, D.C. 20008 (202) 338-3860 Mr. Mark Hampton 654 Madison Avenue New York, New York 10021 (212) 753-4110 Ms. Kaki Hockersmith 5116 Kavanaugh Boulevard Little Rock, Arkansas 72207 (501) 666-6966 Ms. Janice M. Johnson 1406 30th Street, N.W. Washington, D.C. 20007 (202) 784-3106 -2- Mr. William Kloss Art Historian and Author 1824 Wyoming Avenue, N.W. Washington, D.C. 20009 (202) 387-6282 Mr. Richard Moe President National Trust for Historic Preservation 1785 Massachusetts Avenue, N.W. Washington, D.C. 20036 (202) 673-4105 Mr. Richard Nylander Chief Curator Society for the Preservation of New England Antiquities Harrison Gray Otis House 141 Cambridge Street Boston, Massachusetts 02114 (617) 227-3956 Mr. John L. Richardson 1600 M Street, N.W. Washington, D.C. 20036 (202) 828-5031 Mr. J. Thomas Savage, Jr. Curator Historic Charleston Foundation P.O. Box 1120 Charleston, South Carolina 29402 (803) 724-8481 Mr. John Wilmerding Christopher Binyon Sarofim '86 Professor in American Art 104 McCermick Hall Princeton University Princeton, New Jersey 08544-1018 (609) 258-3781 The White House Endowment Fund CORPORATE CONTRIBUTIONS AND PLEDGES $150,000 Atlantic Richfield Corporation General Electric Company Walt Disney Company $100,000 - $150,000 Boeing Company Mobil Corporation $50,000 - $100,000 Ameritech Capital Cities/ABC, Inc. Chevron Corporation Citicorp E.I. du Pont de Nemours & Company, Inc. IBM Corporation KPMG Peat Marwick Minnesota and Mining and Manufacturing Company Paramount Communications Pepsico, Inc. Phillip Morris Companies Union Pacific Corporation United Parcel Service of America $25,000 - $50,000 BBDO Bell Atlantic Corporation Chemical Banking Corporation Exxon Corporation Gates Corporation General Mills, Inc. Johnson and Johnson Merrill Lynch and Company Norfolk Southern Corporation Raytheon Company Rockwell International Southern California Edison 740 JACKSON PLACE, NW WASHINGTON, D.C. 20503 202/789-1145 FAX 202/789-0440 The White House Endoument Fund $10,000 - $25,000 B.F. Goodrich Company Bechtel Group BellSouth Corporation Dresser Industries K Mart Corporation Motorola, Inc. $5,000 - $10,000 Archer-Daniels-Midland Company Burson-Marsteller Cooper Industries Emerson Electric Company Hospital Corporation of America Humana, Inc. International Paper Company Rubbermaid, Inc. Springs Industries Woodward Governor Company $1,000 - $5,000 Borg-Warner Corporation Marsh McLennan Companies Multimedia, Inc. Luther King Capital Management $1 - $1,000 Plexus Corporation 740 JACKSON PLACE, NW WASHINGTON. D.C. 20503 202/789-1145 FAX 202/789-0440 The White House Endowment Fund FOUNDATION CONTRIBUTIONS $1,000,000 The Annenberg Foundation $500,000 - $1,000,000 Anne Burnett and Charles Tandy Foundation The Henry L. Hillman Foundation, Inc. $250,000 - $500,000 Abell Hanger Foundation $100,000 - $250,000 The American Bicentennial Presidential Inaugural Committee The Amon G. Carter Foundation The Charles Engelhard Foundation Hallmark Corporate Foundation The John S. and James L. Knight Foundation The Henry Luce Foundation $25,000 - $50,000 Charles E. Culpepper Foundation Bradford M. Freeman Foundation The George Gund Foundation The Whitney Foundation $10,000 - $25,000 S.D. Bechtel Foundation The Justin Dart Family Foundation Edward C. Johnson Fund Herrick Foundation The Marjorie Merriweather Post Foundation The Priddy Foundation The Solow Foundation The John L. Weinberg Foundation $5,000 - 10,000 The Ruth and Vernon Taylor Foundation The Whitehead Foundation 740 JACKSON PLACE, NW WASHINGTON, D.C. 20503 202/789-1145 FAX 202/789-0440 PRIVATE CONTRIBUTIONS AND PLEDGES $1,000,000 Mr. and Mrs. Perry Bass $250,000 - $500,000 Mr. and Mrs. Earle M. Craig, Jr. Mr. David Rockefeller $100,000 - $250,000 The Honorable and Mrs. William P. Clements, Jr. Mr. and Mrs. Donald Hall Mr. and Mrs. Frederic Hamilton Mr. and Mrs. Roger Horchow The Honorable and Mrs. John J. Louis, Jr. Mr. and Mrs. Peter O'Donnell, Jr. Mr. Richard M. Scaife and Mrs. Margaret R. Battle $50,000 - $100,000 Mr. and Mrs. David A. Jones Mrs. Jack C. Massey $25,000 - $50,000 Mr. and Mrs. George P. Caulkins, Jr. Mrs. Frances G. Scaife Mrs. Margueritte Stevens $10,000 - $25,000 Ms. Gillian Attfield Mrs. Robert W. Duemling Mr. and Mrs. Graham Gund 740 JACKSON PLACE, NW WASHINGTON, D.C. 20503 202/789-1145 FAX 202/789-0440 The White House Endoument Fund $5,000 - $10,000 Mr. and Mrs. Nelson Doubleday Mr. and Mrs. George B. Hartzog, Jr. Mr. and Mrs. A. Minis, Jr. Mr. and Mrs. Eugene R. Monroe Mr. and Mrs. Hardy Oliver, Jr. Mr. and Mrs. B.J. Pevehouse Mr. Alfred R. Stern Mr. and Mrs. Robert D. Stuart, Jr. $2,500 - $5,000 Mr. and Mrs. Gordon Gund Mr. Mark Hampton Mr. and Mrs. Neil W. Horstman $1,000 - $2,500 Ms. Joan Bingham Mr. Bill Blass Mrs. Gardner Cowles Mr. and Mrs. Lester Crown Mr. and Mrs. Maurice T. Cutler Mr. and Mrs. Reed Dulany Ms. Joan Irwin Green Mrs. Lyndon B. Johnson Mr. and Mrs. Samuel C. Johnson Mr. William D. Kleine Mr. and Mrs. Jack Laughery Mr. and Mrs. Emil Mosbacher Mr. and Mrs. Carl Mueller Mrs. Roy E. Naftzger Mr. Leon Pascucci Mr. and Mrs. Gordon Pattee Mrs. Duncan V. Patty Mr. and Mrs. Paul Reber State Historical Society of Wisconsin Mr. and Mrs. Robert Wohlgemuth $1 - $1,000 Alexandria Historical Society, Inc. Baltimore Museum Antiques Show Mr. Nathaniel Crane Mrs. David N. Danforth Dixon Gallery and Gardens Mrs. Arlen I. Erdahl Mrs. Deborah Fly 740 JACKSON PLACE, NW WASHINGTON, D.C. 20503 202/789-1145 FAX 202/789-0440 The White House Endowment Fund Mrs. Gerald R. Ford Friends of the Lighthouse Museum Mrs. Ruth E. Ganister Haviland Collectors International International Platfom Association Mr. Wally Kleine Ms. Patricia H. Labalme Mr. James Gregory Lord Ms. Betty Monkman Mrs. Judith C. Mullen Nation Society of Colonial Dames Mr. and Mrs. John Pierrepont Mrs. Hilton S. Read Mr. and Mrs. Richard M. Reber Dr. and Dr. Richard G. Reese Mr. and Mrs. Jack M. Sneider St John's Church Mr. and Mrs. W. Laird Stabler, Jr. The Tuscaloosa County Preservation Society Mr. and Mrs. Robert A. Underhill Mr. George P. Viegelman Mr. Lowry Watkins, Jr. Mr. Raymond J. Wean, Jr. Mr. Craig M. Weaver Winnetka Community House Mrs. Jane M. Wolf The Woodrow Wilson Birthplace and Museum 740 JACKSON PLACE, NW WASHINGTON, D.C. 20503 202/789-1145 FAX 202/789-0440 The White House Endoument Jund MEMORANDUM TO: Endowment Fund Board of Directors FROM: Neil W, Horstman mult DATE: February 1, 1995 RE: Quarterly Report on Investment Performance and Fund Activities As of December 31, 1994, the market value of the total portfolio was $13,136,273. The breakdown of the Fund's portfolio by asset class was as follows: Fixed Income (Morgan Stanley) $4,090,040 31% Equities (Luther King) $8,077,476 62% Cash (Riggs) $968,757 7% On December 31, 1994, the Equities portfolio included common stock investments of $7,081,823 which comprised 87.7% of total assets. The balance of the portfolio was held in short-term investments pending future stock investments. This percentage is up considerably from the 60.6% of the total portfolio in stocks at the end of the quarter on September 30, 1994. This date was soon after the transfer of additional monies to the Equities portfolio which was in response to the decision of the Board earlier that month to increase the percentage of total assets in the Equities portion. During the quarter ending December 31, 1994, the Equities portfolio had a total return of 0.8% while the total return for calendar year 1994 was 0.7%. The investment results in the S&P 500 Index for the quarter was (0.02%) and 1.3% for the year. The return on the Fixed Income portfolio was 0.62% for the quarter and (3.1%) for the year. The Lehman Brothers Government and Corporate Bond Index as (1.9%) for the year. The return on Cash for the year through December 31, 1994 was 5.11%. Copies of the Luther King report on the Fund's portfolio and the Fund's December 31 Financial Report are enclosed. Excerpts from Cambridge Associates' latest report on the market environment for 740 JACKSON PLACE. NW WASHINGTON, D.C. 20503 202/789-1145 FAX 202/789-0440 The White House Endoument Fund your comparative review also are enclosed. The following contributions and new pledges were received during the past quarter. Those marked with an asterisk (*) represent the final payment on multi-year pledges. Name New Pledge Contribution Tuscaloosa County Pres. Soc. $500 (Miss Betty Monkman) The Annenberg Foundation $200,000* Pepsico Inc. $10,000* The Boeing Company $20,000 Mrs. Judith C. Mullen $100 Dresser Industries $2,000* Raymond John Wean Foundation $150 Bradford M. Freeman Foundation $5,000 Mr. and Mrs. Neil W. Horstman $2,500 $500 Citibank $10,000* Southern California Edison Co. $5,000* The Walt Disney Company $30,000* Luther King Capital Management $1,500 Capital Cities/ABC, Inc. $15,000* Viacom (for Paramount) $10,000* Mr. and Mrs. Maurice R. Cutler $500 All pledges which are in good standing (i.e. those who have been making regular payments) with renewal dates through last December are current. Contact was made with Hill & Knowlton which had pledged $4,000 but never made any payments. The new chief executive responded that, because of other commitments, they could not honor the pledge made by the prior CEO. Enclosed you will find cost estimates for the Blue Room and the East Room projects. Both the Blue Room and East Room will be completed for the February 17 unveiling by Mrs. Clinton. The only remaining work is installation of a new Blue Room carpet which is expected to be delivered in April. A copy of the Fund's press release for the Blue Room is enclosed. The following new Directors were elected to The Endowment Fund Board of Directors at the January 25 meeting of the White House Historical Association Board of Directors: Mrs. William D. Ruckelshaus Mrs. Thomas McLarty Ms. Linda Johnson-Rice Mrs. Anne Fisher Mrs. Suzanne V. Hascoe Offices were established on the second floor of 740 Jackson Place for the Chairman and Administrative Assistant. Miss Laura 740 JACKSON PLACE. NW WASHINGTON, D.C. 20503 202/789-1145 FAX 202/789-0440 The White House Endowment Jund Wilderman was hired by the Chairman to fill this position. As earlier reported, the Association has agreed to permit this to be an Association position in order to be able to provide health insurance benefits. Combining positions under one organization will reduce paperwork and reporting requirements. A mock-up design for a new Endowment Fund brochure has been received and will be presented at the next Board meeting. The cover features a reproduction of an historic print of the White House and photographs illustrate the renovation of the Blue Room as the first major project of The Fund. 740 JACKSON PLACE. NW WASHINGTON. D.C. 20503 202/789-1145 FAX 202/789-0440 WHITE HOUSE ENDOWMENT FUND Statement of Financial Condition As of December 31, 1994 ASSETS CURRENT ASSETS: Cash: On Deposit in Bank (s) $19,566 $19,566 Investments: Cash or Cash Equivalents - Riggs $ 968,757 Equities - Luther King 7,572,411 Fixed Income - Morgan Stanley 3,914,342 Donated Stock - Luther King 299,978 $12,755,488 TOTAL CURRENT ASSETS: $12,775,054 FIXED ASSETS: o TOTAL ASSETS: $12,775,054 LIABILITIES & RESOURCES CURRENT LIABILITIES: Accounts Payable $34,674 TOTAL LIABILITIES: $34,674 RESOURCES: Accumulated Revenue: Excess Revenue over Expenses: Prior Year: $12,842,709 Unrealized Gain/Loss on Investment: (431,577) Current Year: 329,248 NET RESOURCES: $12,740,380 TOTAL LIABILITIES AND RESOURCES $12,775,054 WHITE HOUSE ENDOWMENT FUND Revenue and Expense Statement October 1, 1994 through December 31, 1994 Current Fiscal Year Month To Date Budget Difference REVENUE: Donations: $ 46,500.00 $284,750.00 Investment/Interest Income: $ 28,067.86 105,343.16 Gross Revenue: $ 74,567.86 $390,093.16 EXPENSES: Payroll/Benefits $8,725.02 $ 8,725.02 $45,000 $36,274.98 Payroll Taxes 303.78 303.78 3,300 2,996.22 D.C. Workmen's Compensation 0 0 300 300.00 Insurance Other/Bond 0 0 5,500 5,500.00 Office Supplies 144.99 182.27 350 167.73 Telephone 184.32 368.40 2,000 1,631.60 Equip. Maint. & Repair 0 0 1,000 1,000.00 Accounting & Auditing 5,300.00 5,900.00 10,600 4,700.00 Professional Fees 0 o 2,000 2,000.00 Postage/Shipping 0 o 1,000 1,000.00 Duplicating 0 0 350 350.00 Promotional Material/Printing 0 o 4,500 4,500.00 Software 0 0 150 150.00 Directors' Meetings 0 0 3,500 3,500.00 Trust and Investment Fees 1,613.43 15,909.78 66,000 50,090.22 Bank Service Charges 12.00 37.92 200 162.08 Staff Travel/Expenses 0 0 5,000 5,000.00 Fund Raising/Events 0 0 9,000 9,000.00 Miscellaneous/Contingency 325.83 331.83 2,000 1,668.17 TOTAL EXPENSES: $16,609.37 $31,759.00 $161,750 $129,991.00 SUB-TOTAL $57,958.49 $358,334.16 WHITE HOUSE CONTRIBUTION $21,526.25 $29,086.00 EXCESS REVENUE (LOSS) OVER EXPENSES: $36,432.24 $329,248.16 FROM: CAMDRIOGE Associ 3 MARKET ENVIRONMENT Domestic Common Stocks Market lore asserts that as January goes, so goes the year. Not in 1994. Despite a steady rise in intermediate- and long-term interest rates from their October 1993 lows, the stock market worked its way higher through January, topping out right before the Federal Reserve finally acted on February 4. The broad domestic stock indexes dropped sharply from early February until the end of March, bounced and dropped back in the second quarter. rallied strongly in July and August, struggled to maintain those gains in September and October, hit the skids again in November, and staged a modest Santa Claus rally at the end of the year. For the year as a whole, the Dow Jones Industrial Average (DJIA) returned 5.0%, handily outstripping the S&P 500, which returned 1.3%, the Wilshire 5000, which returned -0.1%, and the Russell 2500 index of smaller-cap stocks, which returned -1.1%. As these data indicate, large-cap stocks outperformed mid- and small-cap stocks, with returns of 1.6%, -3.4%, and -2.4%, respectively. Both value and growth stocks were battered in the first quarter of the year, although value worse than growth. In the second quarter, however, indications of strong corporate earnings led to a rebound in value stocks, while growth continued to languish. Stocks of all types and sizes recovered dramatically in the third quarter. with growth and value posting equally strong returns. Finally, both lost ground again in the fourth quarter, but growth more so than value. For the year. mid- and large-cap value stocks returned just over 2.0%. while large-cap, defensive growth stocks suffered a return of -1.8%, and small-cap growth a return of -5.1%. In fact, by the end of the year, despite some recovery in December, approximately two-thirds of the largest 3000 stocks were selling below their prices at the end of January. The general perception is that 1994 was a year of both pain and volatility, but in fact the S&P traded in a very narrow range -- the narrowest on record - with a price swing from high to low of only 8.9%. In December, stocks sagged in the first eight days of trading, but then advanced steadily until the last few days of the month, when they gave up a few points. For the month, the DJIA returned 2.8%, the S&P 500. 1.5%, the Wilshire 5000, 1.3%. and the Russell 2500, 2.2%. Positive returns in October and December were not sufficient. however, to offset the damage inflicted in November: in the fourth quarter, only the DJIA eked out a positive return, 0.5%; the S&P 500 returned zero, the Wilshire 5000, -0.8%, and the Russell 2500, -2.1%. There was very considerable dispersion of returns in 1994 among the 13 economic sectors of the S&P 500. The most profitable sector. returning 18.2%, was miscellaneous business services, which includes computer software companies and whose five-year cumulative return of 159.2% is almost double that of any other sector, and three times that of the S&P 500. Consumer basic was the next best sector, returning 10.2% for the year. The weakest sectors were transportation, -18.8%, utilities, -12.5%, unrelated conglomerates, -9.3%, and retail trade, -7.9%. The best performing sectors in the fourth quarter were utilities, 4.6% and consumer basic, 4.2%, while the worst were retail trade, -6.1%, primary manufacturing/processing. -5.9%. and transportation and shelter, which both returned -5.3%. International Common Stocks. Dollar investors earned a return of 7.8% from the Morgan Stanley Capital International EAFE index in 1994, entirely as a result of the weak dollar in local currency terms, EAFE returned -2.0%. Among the major foreign markets, the strongest was Japan. which returned 21.4% to dollar investors and 4 8.6% in local currency. Currency gains enabled U.S investors to earn 4.7% in the German market, despite a return of -6.6% in local currency, and to trim a local currency return of -7.0% in the United Kingdom to a dollar return of -1.6%. The weakest markets in the EAFE index were Hong Kong, which returned -28.9% in dollars (-28.8% in local currency), and Malaysia, which returned -19.9% in dollars, and -24.1% in local currency. Malaysia is also one of the two largest components of the MSCI Emerging Markets indexes, the other being Mexico, which declined 44.4% to dollar investors, largely as a result of the recent peso devaluation that produced a whopping 35.4% decline in December alone. Under these circumstances, it is a testament to the diversification among emerging markets that for the year as a whole, the MSCI Emerging Markets Global Index declined only 2.4% and the MSCI Emerging Markets Free Index, only 8.7%. (However, it is worth noting that China, another major casualty of 1994, is not included in such indexes.) From their highs in late January, the emerging market indexes dropped like a stone through the end of April, bounced and then tested their lows in May and June, rocketed to new highs in the third quarter, and have been heading straight down again since mid October, losing 8.1% in December, and 14.7% in the fourth quarter. As we keep repeating, those who want to ride this roller coaster should get on board only in the troughs. December was a relatively quiet month among the developed markets: The EAFE index returned 0.6%, and most of the major component countries registered modest gains both in local currency and in dollar terms. As in the United States, however, the recent firming in foreign markets did not erase November's declines. For the fourth quarter, the EAFE index returned -1.0%, reflecting a return of 1.3% in Japanese stocks and only slightly positive returns from other major component countries. At the start of 1994, the consensus expectation was that the dollar would gain strength against most major currencies, and this prediction proved flat-out wrong. Instead, the greenback headed south at a determined pace through the end of April. A modest rally in May raised hopes that were quickly dashed in June. For the next four months, the dollar struggled to hold its value, but by the end of October had sunk to a post-war low against the yen. Since then it has moved gradually higher, closing the year at 99.60 yen (up from a low of 96.65), and 1.55 deutsche marks (up from a low of 1.49), a decline for the year of 10.8% against each of these major currencies. Although it is premature to suggest that this represents a long-term turn in the dollar's fortunes, holders of non-dollar assets would certainly appear to be at greater risk of exchange-rate losses than was the case a year ago. The Bond Markets At the end of 1993, 91-day Treasury bills yielded 3.12%; by the end of January, 1994, that yield had slid to 3.02%, but from that point forward, it was all uphill. By early December, the yield had almost doubled, to 6.00%, and closed the year at 5.72%. Five-year Treasury note yields rose from a low of 4.95% in January to a high of 7.86% in late December, and closed the year at 7.83%. Ten-year Treasury note yields surged from a low of 5.60% in January, to a high of 8.05% in December, and closed at 7.84%. And long bond yields, represented by the 30-year Treasury, ran up from 6.17% in January to 8.16%, before the curve flattened sharply, bringing their yield back to 7.89% at year end. Intermediate- and long-term bond yields may well rise above 8.00% again in 1995, and we would regard them as offering compelling value at that level. In general, bond yields first rose and then fell back in December, allowing fixed income investors to earn their coupon. For the month, the Salomon Brothers High-Grade Bond Index returned 1.6%, the Lehman Brothers Aggregate and the Lehman Brothers Government/Corporate Bond indexes, 0.7%, and 91-day Treasury bills, 0.5%. Fixed income returns were also positive -- but barely -- for the fourth 5 quarter: the Salomon Brothers High-Grade Bond Index returned 1.2%, the Lehman Brothers Aggregate and the Lehman Brothers Government/Corporate indexes, 0.4%, and 91-day Treasury bills, 1.4%. As these numbers suggest, most of the pain inflicted on fixed income investors came earlier in the year, particularly in the months following the first Fed rate hike on February 4, as leveraged investors were forced to scramble for cover at any price. As any band of distraught bond traders will tell you, the index data give little indication of how much blood was shed. For the year, the Salomon Brothers High-Grade Bond Index returned -5.8%, the Lehman Brothers Aggregate, -2.9%, the Lehman Brothers Government/Corporate, -3.5%, and 91-day Treasury bills, 4.5%. However, the -12.0% total return of the 30-year Treasury bond and the -4.0% return of the five-year note were among the worst this century (although not as brutal if measured in terms of real return), and give some idea of the damage suffered by those who stubbornly clung to leveraged bets on declining rates. Because lower-quality stocks were strong early in the year, high-yield bonds, a hybrid of fixed- income and low-quality equity, managed to avoid significant losses in 1994. For the year, the Salomon Brothers High-Yield Market Index returned -1.3%; in December the return was 1.1%, and for the fourth quarter, zero. With the exception of CCC-rated issues, for which the ratio of current yield to that of comparable maturity Treasury bonds is at the average of the past eight years, high-yield bonds currently trade at historically narrow yield premia, which suggests that investors are relatively poorly compensated for assuming the additional risk inherent in lower-quality securities. For the most part, international bond markets fared no better than the United States, as the general expectation of declining interest rates in Europe proved misplaced. However, dollar-based investors obviously benefitted from the dollar's depreciation. Looking at the bond markets of Austria, Belgium. Canada, Denmark, France, Germany, Italy, Japan, the Netherlands, Spain, Britain, and the emerging markets, one finds losses across the board in 1994 -- not one of these markets recorded a positive return in local currency terms. In dollar terms, however, only Canada, the United Kingdom, and the emerging markets finished the year in the red. The Salomon Brothers Non-Dollar World Bond Index returned 2.6% for the year (zero in December and 0.9% in the fourth quarter), while the J.P. Morgan Emerging Markets Debt Index returned -11.5% (-6.2% in December and -8.4% in the fourth quarter). The devaluation of the Mexican peso comes as a salutary reminder of the precarious and dependent condition of some emerging markets, despite their longer-term promise. Nevertheless, the sell- off in emerging markets debt and the probability of appreciation in the currencies of the most robust developing countries both suggest that this is an area of considerable opportunity for those with the requisite expertise. The Outlook for 1995 The bullish case for stocks is based on: Historical precedent. which indicates that when stocks have returned less than 5%, the range of subsequent year returns has been from good to blockbuster. Similarly, stock investors have often been punished in the second year of a presidential cycle only to be handsomely rewarded in the third year. Current sentiment, as measured by investment newsletters, the put-call ratio, and so on -- all of which is mighty bearish. Contrarian logic asserts that the stock market hits bottom when sentiment reaches bearish extremes because weak investors have capitulated and sold out, cursing the day they ever bought stocks, leaving the market with only one direction in which it can now go up. Today's pervasive bearishness therefore suggests that a humdinger rally could be imminent. However, sentiment is tricky. Investors may 6 be saying that the outlook for stocks is terrible, but they still don't appear to be acting on that conviction. Although the tidal wave of money pouring into stock funds has dried to a trickle, it has not reversed, indicating that investors have by no means thrown in the towel. (In this context it is worth noting that money has drained out of bond funds at an accelerating rate since last spring, as more and more investors abandoned that ship.) Predictions of a non-inflationary, synchronous global expansion. The current consensus is that in 1995 the U.S. economy will slow down, but not reverse, while the European and (to a lesser extent) the Japanese economies will continue to strengthen, resulting in mutually beneficial, benign, non-inflationary, synchronous global recovery. Indeed, if domestic corporate earnings match current expectations ($31.33 for the S&P 500 companies) and inflation remains subdued (3.5% or less), 1995 could be a year of double-digit returns for U.S. stocks. Currently, there is little evidence of impending recession in the United States; 1996 is a better candidate for economic contraction. In fact, the leading candidate for upset of the year is a scenario in which the U.S. and British economies gain further strength while the continental European and Japanese recoveries stall out, the one choked by high interest rates, the other by structural impediments to reflation. Under these circumstances, the dollar would strengthen, EAFE returns would disappoint, and U.S. investors would again have to judge whether strong corporate earnings sufficiently offset the malign effect of the higher interest rates which continued expansion would provoke. The bearish case for stocks is based on: Diminishing liquidity. Never fight the Fed. At some point, not far from current levels, higher short-term rates choke the economy, and stocks wither. Although many stocks sold off sharply in 1994, the broad indexes have not yet suffered a decline commensurate with the sharp rise in interest rates. Diminishing liquidity. Bank loans to businesses have risen sharply and are still accelerating; in other words, money is flowing out of financial assets and into the real economy. Diminishing liquidity. Inflows to bond funds have reversed and inflows to stock funds may follow suit. This has already happened to international and emerging markets funds; domestic funds could be next, pulling out a very important prop from under the market. Valuations. Although higher earnings have resulted in the price-earnings ratio declining to a reasonable level, the dividend yield and book value of the S&P 500 remain at the extreme ends of their historical ranges. Moreover, the bond yield to stock dividend yield ratio is relatively high, and the Fed's earlier reluctance to act aggressively has diminished the probability that this yield gap will narrow as a result of sharply lower bond rates. Shocks to the system. Orange County could prove the tip of the leveraged derivatives iceberg. Other potential problems include the dire fiscal straits of some major economies (e.g., Canada and Italy). Omens from the utility and transportation sectors. A longstanding theory (supported by common sense and historical precedent) argues that extreme divergence among the Dow Jones utility, transportation, and industrial averages is unsustainable. Because it has not declined to anything like the same extent as the transportation and utility averages 7 (down 17.4% and 20.8% respectively in 1994), the industrial average is perceived by Dow theorists as living on borrowed time. After being surprised and disappointed by repeated Fed tightening last year, investors now seem resigned to further rate hikes in the next few months. The latest consensus seems to be that, in the face of rising rates, stocks will weaken in the first half of the year. but then rally once the Fed has finished its dirty work and set the economy back on a low-growth, non-inflationary path that will allow continued expansion and a subsequent decline in rates. Perhaps -- but given the pervasive uncertainties of the moment, this seems too pat. Amid all the daily noise and clatter of the marketplace, three headline events in December send ominous messages: first, Orange County's bankruptcy filing may not be the last of the derivatives fiasco, but an augury of things to come. Second, the devaluation of the Mexican peso vividly illustrates a point we have hammered repeatedly: diminished liquidity squeezes weaker markets first and hardest -- as the Fed's fist tightens, other weak markets may also implode. Finally, a flattening yield curve is usually bearish for stocks. Early in the new year, a few points seem relatively clear: the Fed has not finished tightening because the economy continues to gain strength. Unemployment is at levels historically associated with full employment and therefore rising wages (a lagging indicator of inflation). Similarly, capacity utilization is at or near levels historically associated with price pressures. With the important exception of oil, last year's significant rise in industrial commodity prices appears to be accelerating, and is beginning to funnel through to higher consumer prices (e.g., for automobiles). All this is bad news for stocks and suggests that bond yields might well top 8.0% again, even if the yield curve remains as flat as it is today. Of course, stocks are better priced than they were a year ago, but until these adverse conditions appear likely to ameliorate, stocks remain vulnerable to higher inflation on the one hand, and to diminished profitability on the other. Under such circumstances, bonds at yields of 8.0% or better still look like an appealing alternative. 13 CAPITAL MARKET RETURNS Total Return (%) Trailing One-Month Three-Month Fiscal YTD Calendar YTD Five-Year 12/1/94- 10/1/94- 7/1/94- 1/1/94- 1/1/90- Index 12/31/94 12/31/94 12/31/94 12/31/94 12/31/94 S&P 500 1.48 -0.02 4.87 1.32 51.75 Dow Jones Industrials 2.78 0.47 7.25 5.02 62.98 Wilshire 5000 1.35 -0.77 4.62 -0.06 52.60 Russell 2500 2.15 -2.12 4.89 -1.06 67.27 NASDAQ Composite* 0.22 -1.61 6.52 -3.20 65.33 Large-Capitalization 1.44 0.33 5.25 1.63 47.30 Mid-Capitalization 1.02 -2.91 3.24 -3.36 56.44 Small-Capitalization 2.35 -2.41 5.23 -2.39 65.86 MSCI EAFE 0.63 -1.02 -0.92 7.78 7.71 MSCI World 0.94 -0.73 1.40 5.08 19.74 MSCI Emerging Markets Free* -8.10 -14.67 2.80 -8.67 129.43 Salomon Brothers High-Yield Market 1.12 0.03 1.31 -1.25 77.72 Salomon Brothers High-Grade Bond 1.57 1.24 1.29 -5.76 49.38 Lehman Brothers Aggregate Bond 0.69 0.38 0.99 -2.92 44.64 Lehman Brothers Government/Corporate Bond 0.66 0.37 0.86 -3.51 44.93 Merrill Lynch to 3-Year Treasuries 0.23 0.00 0.99 0.57 38.08 91-Day Treasury Bills 0.48 1.36 2.53 4.45 27.38 Salomon Brothers Non-U.S. Dollar World Bond -0.02 0.90 2.75 2.64 78.79 J.P. Morgan Traded Global Government Bond 0.23 0.45 1.64 1.28 53.39 Notes: The large-, mid-, and small-capitalization indexes are calculated based on quarterly data provided by Standard & Poor's Compustat, which includes data from first quarter 1973 through fourth quarter 1994. For the purpose of these analyses, large-capitalization stocks are defined as the largest 250 issues. Mid-capitalization stocks are defined as the next largest 250 issues, plus any issues with a capitalization greater than $750 million. Small-capitalization stocks are defined as the next largest 1,500 stocks in the Compustat universe, subject to a minimum market capitalization of $25 million from 1973 through 1983, $75 million from 1984 through 1993, and $100 million from 1994 to the present. *Capital change only. 055e A/C 323500 LL 1DNEPC WHITE HOUSE FUND 12/31/94 % OF INDICATED CUR INVESTMENT SUMMARY TOTAL COST CURRENT VALUE PORT INCOME YIELD CASH EQUIVALENTS 498,131.69 498,131.69 6.2 25,902.85 5.2 EQUITIES FOODS & BEVERAGES 179,306.50 181,250.00 2.2 3,600.00 2.0 HSEHLD PRDS & TOILETRIES 425,384.34 508,000.00 6.3 12,200.00 2.4 TEXTILES & SHOES 127,500.00 118,750.00 1.5 1,600.00 1.3 ENTERTAINMENT & LEISURE 580,947.00 563,987.50 7.0 12,160.00 2.2 PUBLISHING & BROADCAST 277,312.40 334,362.50 4.1 5,400.00 1.6 RETAILING 481,291.96 505,848.50 6.3 4,806.56 1.0 AEROSPACE 333,834.10 311,625.00 09 4,500.00 1.4 CHEMICALS & FERTILIZERS 428,949.50 442,375.00 5.5 7,720.00 1.7 DIVERSIFIED INDUSTRIALS 250,833.50 259,925.00 3.2 5,072.00 2.0 HOMEBUILDING 202,669.40 182,000.00 2.3 1,600.00 0.9 PAPER & FOREST PRODUCTS 292,293.00 290,450.00 3.6 8,516.00 2.9 STEEL 136,285.70 126,250.00 1.6 1,000.00 0.8 ELECTRONICS 52,119.32 104,400.00 1.3 720.00 0.7 TELECOMMUNICATIONS 346,527.86 413,637.50 5.1 250.00 0.1 EXPLORATION & PRODUCTION 311,190.00 307,125.00 3.8 3,110.00 1.0 OIL-DOMESTIC 88,970.40 94,600.00 1.2 3,520.00 3.7 OIL-INTERNATIONAL 303,407.00 325,475.00 4.0 14,780.00 4.5 DRUG & HEALTH CARE SUPP 792,009.48 862,600.00 10.7 18,866.00 2.2 HEALTH CARE SERVICES 83,500.17 103,125.00 1.3 2,100.00 2.0 RAILROADS 179,012.00 158,812.50 2.0 6,020.00 3.8 SHIPPING & FREIGHT 236,135.00 294,750.00 3.6 1,800.00 0.6 BANKS 325,355.00 294,375.00 3.6 8,560.00 2.9 INSURANCE 182,402.50 183,625.00 2.3 7,540.00 4.1 TELEPHONE UTILITIES 89,633.30 114,475.00 1.4 3,648.00 3.2 TOTAL EQUITIES 6,706,869.43 7,081,823.50 87.7 139,088.56 2.0 MUTUAL FUNDS 500,000.00 497,521.04 6.2 0.00 0.0 LUTHER KING CAPITAL MGMT PAGE 1 A/C 323500 LL 1DNEPC WHITE HOUSE FUND 12/31/94 % OF INDICATED CUR INVESTMENT SUMMARY TOTAL COST CURRENT VALUE PORT INCOME YIELD TOTAL INVESTMENTS 7,705,001.12 8,077,476.23 100.0 164,991.41 2.0 TOTAL VALUE 7,705,001.12 8,077,476.23 100.0% 164,991.41 2.0% LUTHER KING CAPITAL MGMT PAGE 2 A/C 323500 LL 1DNEPC WHITE HOUSE FUND 12/31/94 -PURCHASE INFORMATION- ---CURRENT MARKET--- % OF INDICATED CUR AVG COST TOTAL COST PRICE TOTAL VALUE PORT INCOME YLD CASH EQUIVALENTS 498,131 SEI CASH + TREASURY 2 1.00 498,131.69 1.00 498,131.69 6.2 25,902.85 5.2 5.200 EQUITIES FOODS & BEVERAGES 5,000 PEPSICO INC 35.86 179,306.50 36.25 181,250.00 2.2 3,600.00 2.0 TOTAL FOODS & BEVERAGES 179,306.50 181,250.00 2.2 3,600.00 2.0 HSEHLD PRDS & TOILETRIES 2,000 COLGATE-PALMOLIVE CO 60.82 121,650.00 63.37 126,750.00 1.6 3,280.00 2.6 1,400 GILLETTE COMPANY 53.69 75,160.12 74.87 104,825.00 1.3 1,400.00 1.3 3,000 KIMBERLY-CLARK CORP 54.38 163,153.00 50.37 151,125.00 1.9 5,280.00 3.5 2,800 PREMARK INTL INC 23.36 65,421.22 44.75 125,300.00 1.6 2,240.00 1.8 TOTAL HSEHLD PRDS & TOILETRIES 425,384.34 508,000.00 6.3 12,200.00 2.4 LUTHER KING CAPITAL MGMT PAGE 3 A/C 323500 LL 1DNEPC WHITE HOUSE FUND 12/31/94 -PURCHASE INFORMATION- CURRENT MARKET--- % OF INDICATED CUR AVG COST TOTAL COST PRICE TOTAL VALUE PORT INCOME YLD TEXTILES & SHOES 10,000 JUSTIN INDUSTRIES INC 12.75 127,500.00 11.87 118,750.00 1.5 1,600.00 1.3 TOTAL TEXTILES & SHOES 127,500.00 118,750.00 1.5 1,600.00 1.3 ENTERTAINMENT & LEISURE 10,500 BRUNSWICK CORP 20.40 214,184.50 18.87 198,187.50 2.5 4,620.00 2.3 4,000 EASTMAN KODAK COMPANY 49.83 199,334.50 47.75 191,000.00 2.4 6,400.00 3.4 3,800 WALT DISNEY COMPANY 44.06 167,428.00 46.00 174,800.00 2.2 1,140.00 0.7 TOTAL ENTERTAINMENT & LEISURE 580,947.00 563,987.50 7.0 12,160.00 2.2 PUBLISHING & BROADCAST 2,200 A H BELO CORPORATION 42.08 92,571.40 56.50 124,300.00 1.5 1,320.00 1.1 3,000 GANNETT CO INC 47.61 142,835.00 53.25 159,750.00 2.0 4,080.00 2.6 3,500 SAGA COMMUNICATIONS 11.97 41,906.00 14.37 50,312.50 0.6 0.00 0.0 TOTAL PUBLISHING & BROADCAST 277,312.40 334,362.50 4.1 5,400.00 1.6 LUTHER KING CAPITAL MGMT PAGE 4 A/C 323500 LL 1DNEPC WHITE HOUSE FUND 12/31/94 -PURCHASE INFORMATION- -CURRENT MARKET--- % OF INDICATED CUR AVG COST TOTAL COST PRICE TOTAL VALUE PORT INCOME YLD RETAILING 6,000 CENTRAL TRACTOR FARM & C 15.87 95,250.00 14.50 87,000.00 1.1 0.00 0.0 3,866 HOME DEPOT INC 42.66 164,937.24 46.00 177,836.00 2.2 618.56 0.3 3,300 SHERWIN-WILLIAMS CO 30.26 99,846.52 33.37 110,137.50 1.4 1,848.00 1.7 3,000 WALGREEN CO 40.42 121,258.20 43.62 130,875.00 1.6 2,340.00 1.8 TOTAL RETAILING 481,291.96 505,848.50 6.3 4,806.56 1.0 AEROSPACE 3,000 RAYTHEON COMPANY 64.58 193,749.10 63.87 191,625.00 2.4 4,500.00 2.3 20,000 UNC INCORPORATED DEL 7.00 140,085.00 6.00 120,000.00 1.5 0.00 0.0 TOTAL AEROSPACE 333,834.10 311,625.00 3.9 4,500.00 1.4 CHEMICALS & FERTILIZERS 4,000 LOCTITE CORPORATION 43.59 174,354.50 46.50 186,000.00 2.3 3,360.00 1.8 4,000 MORTON INTERNATIONAL INC 28.00 111,994.50 28.50 114,000.00 1.4 1,760.00 1.5 1,200 NCH CORPORATION 70.65 84,784.00 66.87 80,250.00 1.0 1,200.00 1.5 3,500 SYNALLOY CP DEL 16.52 57,816.50 17.75 62,125.00 0.8 1,400.00 2.3 TOTAL CHEMICALS & FERTILIZERS 428,949.50 442,375.00 5.5 7,720.00 1.7 LUTHER KING CAPITAL MGMT PAGE 5 A/C 323500 LL 1DNEPC WHITE HOUSE FUND 12/31/94 -PURCHASE INFORMATION- CURRENT MARKET--- % OF INDICATED CUR AVG COST TOTAL COST PRICE TOTAL VALUE PORT INCOME YLD DIVERSIFIED INDUSTRIALS 2,200 MINNESOTA MNG & MFG CO 51.87 114,123.50 53.37 117,425.00 1.5 3,872.00 3.3 3,000 TYCO INTL LTD 45.57 136,710.00 47.50 142,500.00 1.8 1,200.00 0.8 TOTAL DIVERSIFIED INDUSTRIALS 250,833.50 259,925.00 3.2 5,072.00 2.0 HOMEBUILDING 8,000 CENTEX CORPORATION 25.33 202,669.40 22.75 182,000.00 2.3 1,600.00 0.9 TOTAL HOMEBUILDING 202,669.40 182,000.00 2.3 1,600.00 0.9 PAPER & FOREST PRODUCTS 1,200 INTERNATIONAL PAPER CO 63.73 76,480.50 75.37 90,450.00 1.1 2,016.00 2.2 12,500 LONGVIEW FIBRE CO 17.27 215,812.50 16.00 200,000.00 2.5 6,500.00 3.2 TOTAL PAPER & FOREST PRODUCTS 292,293.00 290,450.00 3.6 8,516.00 2.9 STEEL 10,000 RELIANCE STEEL & ALUMINU 13.63 136,285.70 12.62 126,250.00 1.6 1,000.00 0.8 TOTAL STEEL 136,285.70 126,250.00 1.6 1,000.00 0.8 LUTHER KING CAPITAL MGMT PAGE 6 A/C 323500 LL 1DNEPC WHITE HOUSE FUND 12/31/94 -PURCHASE INFORMATION- CURRENT MARKET--- % OF INDICATED CUR AVG COST TOTAL COST PRICE TOTAL VALUE PORT INCOME YLD ELECTRONICS 1,800 MOTOROLA INC 28.96 52,119.32 58.00 104,400.00 1.3 720,00 0.7 TOTAL ELECTRONICS 52,119.32 104,400.00 1.3 720.00 0.7 TELECOMMUNICATIONS 3,700 AIRTOUCH COMMUNICATIONS 21.16 78,277.86 29.12 107,762.50 1.3 0.00 0.0 4,000 CELLULAR COMMUNICATIONS 41.91 167,625.00 53.50 214,000.00 2.6 0.00 0.0 5,000 MCI COMMUNICATIONS CORP 20.12 100,625.00 18.37 91,875.00 1.1 250.00 0.3 TOTAL TELECOMMUNICATIONS 346,527.86 413,637.50 5.1 250.00 0.1 EXPLORATION & PRODUCTION 3,000 ANADARKO PETROLEUM CORP 36.39 109,180.00 38.50 115,500.00 1.4 900.00 0.8 3,000 BURLINGTON RESOURCES INC 38.54 115,630.00 35.00 105,000.00 1.3 1,650.00 1.6 3,500 NOBLE AFFILIATES INC 24.68 86,380.00 24.75 86,625.00 1.1 560.00 0.6 TOTAL EXPLORATION & PRODUCTION 311,190.00 307,125.00 3.8 3,110.00 1.0 LUTHER KING CAPITAL MGMT PAGE 7 A/C 323500 LL IDNEPC WHITE HOUSE FUND 12/31/94 -PURCHASE INFORMATION- CURRENT MARKET--- % OF INDICATED CUR AVG COST TOTAL COST PRICE TOTAL VALUE PORT INCOME YLD OIL-DOMESTIC 1,600 AMOCO CORPORATION 55.61 88,970.40 59.12 94,600.00 1.2 3,520.00 3.7 TOTAL OIL-DOMESTIC 88,970.40 94,600.00 1.2 3,520.00 3.7 OIL-INTERNATIONAL 3,000 EXXON CORPORATION 62.12 186,359.00 60.75 182,250.00 2.3 9,000.00 4.9 1,700 MOBIL CORPORATION 68.85 117,048.00 84.25 143,225.00 1.8 5,780.00 4.0 TOTAL OIL-INTERNATIONAL 303,407.00 325,475.00 4.0 14,780.00 4.5 DRUG & HEALTH CARE SUPP 5,000 BAXTER INTERNATIONAL INC 27.85 139,246.48 28.25 141,250.00 1.7 5,250.00 3.7 4,500 c R BARD INC 25.92 116,647.50 27.00 121,500.00 1.5 2,700.00 2.2 7,000 FISHER SCIENTIFIC INTL 26.97 188,777.10 24.75 173,250.00 2.1 560.00 0.3 3,100 JOHNSON & JOHNSON 43.89 136,055.90 54.75 169,725.00 2.1 3,596.00 2.1 1,500 SCHERING-PLOUGH CORP 60.55 90,829.50 74.00 111,000.00 1.4 3,060.00 2.8 2,000 SYBRON CORPORATION 22.20 44,398.00 34.50 69,000.00 0.9 0.00 0.0 2,500 UPJOHN COMPANY 30.42 76,055.00 30.75 76,875.00 1.0 3,700.00 4.8 TOTAL DRUG & HEALTH CARE SUPP 792,009.48 862,600.00 10.7 18,866.00 2.2 LUTHER KING CAPITAL MGMT PAGE 8 A/C 323500 LL 1DNEPC WHITE HOUSE FUND 12/31/94 -PURCHASE INFORMATION- CURRENT MARKET--- % OF INDICATED CUR AVG COST TOTAL COST PRICE TOTAL VALUE PORT INCOME YLD HEALTH CARE SERVICES 2,500 US HEALTHCARE INC 33.40 83,500.17 41.25 103,125.00 1.3 2,100.00 2.0 TOTAL HEALTH CARE SERVICES 83,500.17 103,125.00 1.3 2,100.00 2.0 RAILROADS 3,500 UNION PACIFIC CORP 51.15 179,012.00 45.37 158,812.50 2.0 6,020.00 3.8 TOTAL RAILROADS 179,012.00 158,812.50 2.0 6,020.00 3.8 SHIPPING & FREIGHT 9,000 INTERTRANS CORPORATION 11.94 107,500.00 13.00 117,000.00 1.4 1,800.00 1.5 9,000 KIRBY CORPORATION 14.29 128,635.00 19.75 177,750.00 2.2 0.00 0.0 TOTAL SHIPPING & FREIGHT 236,135.00 294,750.00 3.6 1,800.00 0.6 BANKS 5,000 CULLEN FROST BANKERS INC 34.18 170,875.00 30.87 154,375.00 1.9 4,400.00 2.9 4,000 NORTHERN TRUST CORP 38.62 154,480.00 35.00 140,000.00 1.7 4,160.00 3.0 TOTAL BANKS 325,355.00 294,375.00 3.6 8,560.00 2.9 LUTHER KING CAPITAL MGMT PAGE 9 A/C 323500 LL IDNEPC WHITE HOUSE FUND 12/31/94 -PURCHASE INFORMATION- -CURRENT MARKET--- % OF INDICATED CUR AVG COST TOTAL COST PRICE TOTAL VALUE PORT INCOME YLD INSURANCE 6,500 AMERICAN GENERAL CORP 28.06 182,402.50 28.25 183,625.00 2.3 7,540.00 4.1 TOTAL INSURANCE 182,402.50 183,625.00 2.3 7,540.00 4.1 TELEPHONE UTILITIES 3,800 ALLTEL CORPORATION 23.59 89,633.30 30.12 114,475.00 1.4 3,648.00 3.2 TOTAL TELEPHONE UTILITIES 89,633.30 114,475.00 1.4 3,648.00 3.2 TOTAL EQUITIES 6,706,869.43 7,081,823.50 87.7 139,088.56 2.0 MUTUAL FUNDS 47,382 LKCM 10.55 500,000.00 10.50 497,521.04 6.2 0.00 0.0 LKCM SMALL CAP EQUITY PF TOTAL INVESTMENTS 7,705,001.12 8,077,476.23 100.0 164,991.41 2.0 LUTHER KING CAPITAL MGMT PAGE 10 A/C 323500 LL 1DNEPC WHITE HOUSE FUND 12/31/94 -PURCHASE INFORMATION- CURRENT MARKET % OF INDICATED CUR AVG COST TOTAL COST PRICE TOTAL VALUE PORT INCOME YLD TOTAL VALUE 7,705,001.12 8,077,476.23 100.0 164,991.41 2.0 LUTHER KING CAPITAL MGMT PAGE 11 The White House Endoument Fund MINUTES of the Meeting of the Board of Directors of The White House Endowment Fund September 8, 1994 Willkie Farr & Gallagher, 153 East 53rd Street, New York, NY CALL TO ORDER Mrs. Craig welcomed the Directors and called the meeting to order at 10:30 a.m. Present: Mrs. Craig, Mrs. Folger, Mr. Hartzog, Mr. Melhado, Mr. Prosperi, Mr. Stern, Ms. Thomases, Mr. Scouten (White House Curator), Mr. Horstman (Executive Vice President of the White House Historical Associa- tion), and Paul Reber, Fund staff. Absent: Mrs. Gund, Mr. Horchow. SECRETARY'S REPORT Mrs. Craig presented the Secretary's Report on behalf of Mrs. Gund, who could not attend. Mrs. Craig reported that the Minutes of the October 12, 1993, meeting had been distributed to all Directors. There being no additions or corrections, the minutes were approved as presented. TREASURER'S REPORT Mr. Hartzog reported that as of July 31, 1994, The Fund has re- ceived, during the fiscal year which began on October 1, 1993, income totalling $1,812,291 which includes $1,285,967 in cash contributions and $526,324 in interest income. Expenses total $56,744. This leaves a net income of $1,755,546. Net income since inception on January 12, 1990, totals $12,851,024. Under the guidance of The Fund's Financial Management Committee, the endowment has been invested in a combination of equities, fixed income investments and cash. As of July 31, the cash portion of the portfolio totals $1,991,598 or 16% of the portfolio, the equity portion totals $5,410,598 or 44% of the portfolio, and fixed income investments total $5,143,659 or 40% of the portfolio. Mr. Hartzog then turned the meeting over to Mr. Luther King of Luther King Capital Management, who manages the equity portion of The Fund's investments. Mr. King presented verbal and written reports on both the market and the performance of The Fund's equity investments. Mr. King explained that the market environment in 1992 and 1993 had been very volatile and during the last year, the market has been flat. This is typical market 740 JACKSON PLACE. NW WASHINGTON. D.C. 20503 202/789-1145 FAX 202/789-0440 2 performance given the cyclical nature of the stock market and he does not see anything that should affect the expection of achieving 10% earnings over a five-year period. At the conclusion of Mr. King's report, there was a discussion among the Directors regarding The Fund's asset allocation. The Directors agreed that the allocation was not weighted heavily enough in favor of equities. Accordingly, a motion was made and seconded that The Fund should increase the percentage of its portfolio invested in stocks to 65%. The motion passed unanimously. CHAIRMAN'S REPORT Mrs. Craig reported that the holding pattern of 1993 continued since the last meeting in October 1993 until just recently. However, several events had taken place during this year-long period: - in March 1994, on the recommendation of Mrs. Clinton, Susan Thomases and Paul Prosperi were elected to The Endowment Fund Board by mail ballot of the White House Historical Association; at that time Mrs. Clinton also requested that Ms. Thomases serve on the White House Histor- ical Association Board where she took the place of Roger Horchow. - in April 1994, George Hartzog presented to the Historical Associ- ation Board at its spring meeting a clarification of The Endowment Fund's Statement of Purpose/Spending Policy/Procedure for Expenditures. This statement was added to the Long Range Plan of the Historical Association. - in July 1994, Neil Horstman, Executive Vice President of the Historical Association, met with Mrs. Lieberman of Mrs. Clinton's staff. They discussed additional nominations to The Endowment Fund Board. No names were available at that time, but Mrs. Lieberman said she would work on it during the Clintons' vacation. Given the expectation that the composition of The Endowment Fund Board will soon change, I believe it is appropriate to review what The Endowment Fund is, its purpose, and its activities. The Endowment Fund is a wholly-owned subsidiary of the White House Historical Association whose Board members elect the members of The Fund's Board at its annual meeting in January. The members serve for one year, and they elect their own Officers. The White House Endowment Fund was created by the Historical Association for the purpose of raising an endowment of $25 million, income from which is to be used to preserve the historic character of the public rooms of the White House, to conserve objects in the White House's museum quality collection of fine and decorative arts, and to acquire objects for the White House Collection. The Endowment Fund is a public charity, and as such it has an ongoing and continuous obligation to make grants at appropriate levels and to engage in fund-raising activities. 3 It has been a matter of some concern to the ongoing members of The Fund's Board that The Fund's most recent grant was made in the summer of 1992 in the amount of $28,162 as a partial payment on a rug for the Blue Room, and since then no request has come from the White House for funds to be contributed for purposes consistent with the Statement of Purpose of The Fund. When The Endowment Fund was established in 1990, it was expected to be a nonpartisan organization. However, experience has proven that that is not the case. Therefore, activities in regard to raising funds to complete the $25 million goal of The Endowment Fund await the election to The Fund Board of persons identified as being able to give themselves and/or are experienced in major fund-raising, especially among the Democratic constituency of the President. Because of our concern regarding the charitable status of The Fund, we have consulted with attorneys at Baker & Hostetler in Washington. They acknowledge the fact that carrying out the charitable purpose of The Fund is necessarily dependent on the cooperation of government officials, and it is our sincere hope that this cooperation and communication will soon manifest itself. In conclusion, I would like to touch on three matters: We all know that fund-raising is a highly specialized effort, and a new Board is being formed. I hope that these qualifications, among others, will be considered: Commitment -- the fund-raiser should believe deeply in the cause and must be willing to work for it and to give to it; contacts -- without a broad range of potential major donors it will be difficult to raise the additional $12.5 million; creativity -- as an example I cite George Hartzog's concept of the White House Commemorative Coin of 1992 which brought $5 million to The Endowment. Competent staff is essential. The Fund has a small office in the Historical Association building which houses our computer containing all of our information and our fax machine. Paul Reber has been our staunch staff support, but now he has a full-time position with the Mount Vernon Ladies' Association as Director of Development. I urge Bitsey, Susan and Paul Prosperi to address themselves to this important matter immediately. Future planning is now possible with much greater certainty. For the first time in the history of the White House, a dependable source of funds is available to maintain and enhance the public rooms of the White House. We hope that the Curator of the White House and the White House Historical Association will work together to develop a long-range program in order to make the best use of these funds. It has been a great privilege and a pleasure for me to serve as Chairman of The White House Endowment Fund, and now I wish much success to those who will complete our mission. 4 NEW BUSINESS A. Proposed Purchase of White House China Mr. Scouten, White House Curator, reported on the proposal to purchase duplicates of the Woodrow Wilson and Franklin Roosevelt china patterns in order to provide additional china for use at White House functions. Because of heavy use, and subsequent loss from breakage, there are often inadequate pieces to serve the many guests entertained at the White House. A third set of china is needed. Mr. Scouten showed the Board members photographs of the additional pieces needed and indicated that an additional 130 Wilson base plates and enough replacements for the Roosevelt service needed to complete a third set would need to be purchased. Initial discussions with Lenox Company indicated that $80,000 would be needed to produce the reproductions of the original patterns. The Board unanimously approved the expenditure of $80,000 to pur- chase this china. B. Budget The FY 1995 Budget, which is incorporated into these minutes as Attachment 1, was approved unanimously. C. Auditor Mr. Hartzog suggested that the Board approve the appointment of Johnson & Scarborough as The Fund's auditors. However, he suggested that The Fund's Board, in conjunction with the White House Historical Associa- tion, review the selection of auditors for the next fiscal year. The motion passed unanimously. D. Appointment of Officers It was suggested that new officers be elected as soon as possible in order to take advantage of year-end giving opportunities. ADJOURNMENT There being no further business, the meeting was adjourned at 12:02 p.m. Paul C. Reber Coordinator (on behalf of The Fund's Secretary, Mrs. Graham Gund) Attachment ATTACHMENT 1 The White House Endowment Fund Fiscal Year 1995 Budget Payroll $45,000 Payroll Taxes 3,300 Workmen's Compensation 300 Ins. Other/Bond 5,500 Office Supplies 350 Telephone 2,000 Equip. Maint. and Repair 1,000 Accounting and Audit 10,600 Prof. Fees 2,000 Postage and Shipping 1,000 Duplicating 350 Promo. Mtl./Print. 4,500 Software 150 Directors' Meetings 3,500 Trust and Invest. Fees 66,000 Bank Svc. Charges 200 Staff Travel/Expenses 5,000 Fund-Raising/Events 9,000 Misc./Contingency 2,000 Total $161,750 The House Endorment Fund FOR IMMEDIATE RELEASE January 30, 1995 THE WHITE HOUSE ENDOWMENT FUND ANNOUNCES COMPLETION OF BLUE ROOM RENOVATIONS AND REFURBISHING WASHINGTON, DC -- The White House Endowment Fund today announced the completion of the renovation and refurbishing of the White House's Blue Room. Renovation and refurbishing of the Blue Room began on January 3, 1995. Work done in the Blue Room includes replacing the wall paper, draperies, furniture fabric, repainting the room and the conservation of objects. This is the first major White House renovation project funded exclusively by The White House Endowment Fund. The Blue Room will be officially reopened on February 17, 1995, at the Committee for the Preservation of the White House's bi-annual meeting. The White House Endowment Fund was established in 1990 as a non- profit charitable organization and subsidiary of the White House Historical Association to raise a $25 million endowment. The purpose of this endowment is to support, in perpetuity, the preservation and conservation of the public rooms of the White House, and the acquisition of objects for the White House collection of fine arts and decorative items. The estimated cost for the renovation and refurbishing of the Blue Room is $358,000. Funds sufficient to underwrite the cost of the Blue Room project were made available through the investment proceeds accrued from The Endowment Fund's current principal of $12 million. The decision to renovate and refurbish the Blue Room was made in 1990. The Chief Usher and Curator of the White House are authorized to request support from the endowment for all projects. The Board of Directors of The White House Endowment Fund is responsible for raising the endowment and approving expenditures within an amount specified for spending each year. Contributions made to The White House Endowment Fund are tax-deductible to the maximum extent allowed by law. The Chair of The White House Endowment Fund is Mrs. Nancy M. Folger. More than one hundred and fifty individuals, corporations, and private foundations have contributed to The White House Endowment Fund. For additional information contact: Mr. Neil Horstman, Executive Vice President, White House Historical Association - 202-737- 0025, or, Mrs. Nancy M. Folger, Chair, The White House Endowment Fund - 202-789-1145. ### Attached: List of suppliers 740 JACKSON PLACE. NW WASHINGTON. D.C. 20503 202/789-1145 FAX 202/789-0440 1995 BLUE ROOM RENOVATION SUPPLIERS ESTIMATES OF EXPENDITURES WALLPAPER (manufacture) $ 24,215.00 Mr. Thomas Marshall Brunschwig & Fils (914) 684-5800 WALLPAPER (installation) $ 13,133.80 Mr. Robert Kelly WRN Associates (413) 243-3489 FABRIC $112,000.00 Mr. and Mrs. Edwin Bitter (Adriana) Scalamandre Silks, Inc. (718) 361-8500 UPHOLSTERY (labor) $ 38,250.00 DRAPERY (labor) $ 15,000.00 Mr. Nelson Wurz Nelson Beck of Washington, Inc. (202) 387-4114 GILDING WORK (furniture) $ 25,000.00 Mr. Thom Gentle Thom Gentle Consultants (802) 694-1475 PAINTING & ARCHITECTURAL GILDING $ 61,560.00 Mr. Brandon Thompson Interiors (703) 519-8870 MARBLE WORK $ 3,500.00 Mr. Daniel Errigo U.S. Marble & Granite (301) 595-7400 -2- REIMBURSEMENT TO THE U.S. GOVERNMENT $ 17,200.00 (labor and other support) ESTIMATED COST FOR CARPET $ 48,500.00 ESTIMATE TOTAL $358,358.80 WHITE HOUSE ENDOWMENT FUND BOARD OF DIRECTORS Mrs. Nancy M. Folger, Chairman Mrs. Earle M. Craig, Jr., Past Chairman Mrs. Anne Fisher Mrs. Graham Gund Mr. George B. Hartzog, Jr. Mrs. Suzanne V. Hascoe Mr. Roger Horchow Mrs. Linda Johnson Rice Mrs. Thomas McLarty Mr. A. Paul Prosperi Mrs. William D. Ruckelshaus Mr. Alfred R. Stern Ms. Susan P. Thomases ESTIMATE OF EXPENDITURES FOR THE EAST ROOM ESTIMATE CARPET $259,330.00 MARBLE WORK $14,680.00 FLOOR WORK $1,380.00 OVERTIME (Exec. Res. Staff) $2,000.00 (NPS Staff) $1,000.00 TOTAL $278,390.00 REPORT DATE 02/15/95 REPORT TIME 12:05PM Blue Room Unveiling Reception - Friday, February 17, 1995 - 04:00PM Contact Social Office X7787 MRS. CLINTON 22 no phone #'s Mrs. Kathleen Aktins Little Rock, AR Mr. & Mrs. Joseph Allbritton (Barbara) Chairman, Riggs National Bank Ms. Jan Alsobrook marge- These all name Democratic Leadership Council Mrs. Norma Asnes New York, NY we have no Ms: Gillian Attfield New York, NY Mr. & Mrs. Dennis Bakke (Eileen) phone # for President, Chief Executive Officer, The AES Corporation Mr. Rutgers Barclay and we can't Santa Fe, NM Mrs. Margaret R. Battle locate them. Pittsburgh, PA Mr. Fred Benson VP for Federal Relations, Weyerhaeuser Company Mr. Norman Bernstein Thx Washington, DC Hon. (Dr.) James Billington Librarian of Congress, The Library of Congress Ms. Carol Biondi & Mr. Frank Biondi Kim Riverdale, NY Mr. Barry S. Blanchard Reading, MA Ms. Barbara Bluhm Ms. Barbara Blum President & CEO, The Adams National Bank Ms. Barbara Blum President & CEO, The Adams National Bank Mr. & Mrs. Fred Bollerer (Susan) Presendent & CEO, Riggs National Bank Ms Leslie Greene Bowman Curator and Department Head, Decorative Arts, Los Angeles County Museum of Art Mr. & Mrs. Robert Breeden Chairman of the Board, White House Historical Association Hon. J. Carter Brown Chairman, NCA, Leadership Council Mrs. Francis Buchanan Little Rock, AR Mr. John R. Burrows J.R. Burrows & Co. REPORT DATE 02/15/95 REPORT TIME 12:05PM Blue Room Unveiling Reception - February 17, 1995 Mr. Harold Burson New York, NY Mr. & Mrs. William N. Cafritz (Anita (Buffy)) Bethesda, MD Mr. & Mrs. Ignicio J. "Nash" Castro Palisades, NY Mr. George P. Caulkins Denver, CO Mrs. Robert H. "Oaties" Charles Ms. Jeannine Clark Bethesda, MD Ms. Wendy Cooper Curator of Decorative Arts, The Baltimore Museum of Art Mr. John Steve Cooper Rochester, NY Mrs. Dorothy M. Craig, Jr. Mr. & Mrs. Henry A. Dudley (Anne) Executive Vice President, Riggs Bank Dr. & Mrs. G. Franklin Edwards (Peggy) Washington, DC Mr. William Elder, III Consultiant Curator, Decorative Arts, Baltimore Museum of Arts Mr. & Mrs. George M. Elsey (Sally) Washington, DC Mr. Daniel Errigo Errigo Enterprises, INC, Unite States Marble & Granite Ms. Anita Estell Ban Scoyoc Associates Mr. Jonathan Fairbanks Katherine Lane Weems Curator of Decorative Arts and Sculpture, Museum of Fine Arts Mrs. Sara Ann Felton Marianna, AR Dr. Alan Fern Director, National Portrait Gallery Mr. Jon J. Fields President, Edward Fields Inc. Ms. Ann Fisher & Mr. Jerome Fisher Darien, CT Mrs. Nancy M. (Bitsy) Folger Washington, DC Ms. Karen France Herndon, VA Mr.. Bradford M. Freeman Los Angeles, CA Mrs. Mary Knowles Wisner Mr. Thom Gentle Thom Gentle Consultants REPORT DATE 02/15/95 REPORT TIME 12:05PM Blue Room Unveiling Reception - February 17, 1995 Ms. Susan Goode Ms. Paige Goodman The Stark Carpet Corporation Mr. & Mrs. Steven Green (Dorothea) Fisher Island, FL Ms. Phyllis Greenberger Society for the Advancement of Women's Health Mr. & Mrs. Gilbert Grosvenor (Wiley) President and Chairman, National Geographic Society Mrs. Ann L. Gund Mr. Geoffrey Gund President and Treasurer, The George Gund Foundation Hon. (Dr.) Sheldon Hackney Chairman, National Endowment for the Humanities Mr. Mark Hampton New York, NY Mr. George B. Hartzog, Jr., Esq. & Mrs. Helen C. Hartzog McLean, VA Hon John W. Hechinger, Jr. Washington, DC Mr. & Mrs. Henry L. Hillman Pittsburgh, PA Ms. Kaki Hockersmith Kaki Hockersmith Interiors Mr. & Mrs. Roger Horchow (Carolyn) Dallas, TX Mr. & Mrs. Neil Horstman (Anne) Executive Director, White House Historical Association Ms. Shu-Kun Hue New York, NY Mrs. J.B. Hunt Fayetteville, AR Ms. Willa Jacobs Scalamandre Ms. Victoria Jefferies North Adams, MA Ms. Janice Johnson General Services Administration Mr. Robert M. Kelly WRN Associates Mr. Roger G. Kennedy & Ms. Frances Kennedy Director, National Park Service Mr. & Mrs. James Ketchum (Barbara) Washington, DC Dr. Elise K. Kirk Washington, DC REPORT DATE 02/15/95 REPORT TIME 12:05PM Blue Room Unveiling Reception - February 17, 1995 Mr. William Kloss Art Historian and Author Mr. Roman Kujawa & Bronxville, NY Mr. Erik Kvalsvik Baltimore, MD Mr. Donald Lawrence Nelson Beck of Washington Mr. Robert Leibrock President, Abell-Hanger Foundation Hon. & Mrs. Arthur Levitt, Jr. (Marylin) Chair and Commissioner, Securities and Exchange Commission Mrs. Reginald Lewis Chair, TLC Industries Mr. Roger Littreal Williamsburg, VA Mr. John A: Logan Chairman, Marjofie Merriweather Post Foundation Hon. & Mrs. John J. Louis Winnetka, IL Mrs. Marion Mr. & Mrs. John F. Mars McLean, VA Mr. Thomas L. Marshall Brunschwig & Fils Mr. James I. McDaniel & Ms. James McDaniel Springfield, VA Mrs. Donna McLarty Mr Robert L. McNeil, Jr. President, The Barra Foundation Mrs. Melhado Mr. Jermone Menefee Fairfax, VA Mr. Bernard R. Meyer & Ms. Andry Myer Bethesda, MD Mr. Richard Moe President, National Trust for Historic Preservation Mrs. Eugene Monroe Midland, TX Mr. Richard P. Napoli Alexandria, VA Mr. Kent C. Nelson Chairman, United Parcel Service, Inc. Hon. & Mrs. Paul H. Nitze Washington, DC Mr. Lucio A. Noto President and CEO, Mobil Corporation REPORT DATE 02/15/95 REPORT TIME 12:05PM Blue Room Unveiling Reception - February 17, 1995 Mr. & Mrs. Richard Nylander (Jane) Curator of Collections, Society for the Preservation of New England Antiquities Mr. Alan Patricof Chairman, Patricof & Company Ventures, Inc. Mrs. Jefferson Patterson Washington, DC Ms. Lorriane Pearce Washington, DC Mrs. Trudy Huskamp Peterson Acting Archivist, National Archives and Records Administration Mr. B. J. Pevehouse Midland, TX Mr. Arthur Phillips The Stark Carpet Corporation Ms. Dianne Pilgrim Director, Cooper-Hewitt Musuem Hon. Earl A. Powell III & Ms. Nancy Powell Director, National Gallery of Art Mr. Paul Prosperi Attorney, Algia, Day Mrs. Elizabeth Pruet Mr. & Mrs. Thomas Pyle (Judy) Madison, WI Mr. & Mrs. Wayne Reaud (Dana) Senior Partner, Reaud, Morgan, and Quinn Mr. & Mrs. Paul C. Reber Vienna, VA Mr. John S. Reed Chairman & CEO, Citicorp Mr. Herbert S. Riband, Jr. Fort Washington, PA Ms. Linda Johnson Rice President & CEO, Johnson Publishing Company Mr. John L Richardson Mr. James Ridenhour Director of Eppley Institute, Department of Recreation and Park Adminstration Mr. Gresham Riley Philadelphia, PA Mr. William D. Rollnick & Ms. Nancy Ellis New York, NY Mrs. Nannice Rose Rogers, AR Mr Robert Resenthal Washington, DC REPORT DATE 02/15/95 REPORT TIME 12:05PM Blue Room Unveiling Reception - February 17, 1995 Mrs. Jill Ruckelshaus Houston, TX Mr. & Mrs. Roger Sant Washington, DC Mr. J. Thomas Savage Curator, Historic Charleston Foundation Mr. James Schwaninger J.C Penney Co., Inc. Ms. Carol Schwartz Jamaica Plains, MA Hon. Rex W. Scouten White House Curator, The White House Mrs. Gail Serfaty Office of the Curator, U.S. State Department Mr. Dennis Shah Chambord Inc. Ms. Carole Shields Coral Galbes, FL Mr. Hugh S. Sidey & Ms. Ann T. Sighty Washington Contributing Editor, Time, Inc. Hon. & Mrs. Leonard L. Silverstein (Elaine) Silverstein and Mullens Mr. Albert H. Small Washington, DC Ms. Barbara Smith New York, NY Mr. Sheldon Solow President, The Solow Foundation Ms. Anne-Marie Soulliere Foundation Director, Edward C. Johnson Fund Mr. Alfred R. Stern & New York, NY Mrs. Margueritte Stevens Skaneateles, NY Mr. Thomas C. Stokes Executive Director, Gates Foundation Hon. & Mrs. Robert S. Strauss (Helen) Akin, Gump, Strauss, Hauer & Feld Mr. & Mrs. Robert D. Stuart Lake Forest, IL Mr. Vernon Taylor The Ruth and Vernon Taylor Foundation Ms. Susan Thomases & Willkie Farr & Gallagher Mr. Brandon Thompson Interiors Mr. & Mrs. Guerin Todd Alexandria, VA REPORT DATE 02/15/95 REPORT TIME 12:05PM Blue Room Unveiling Reception - February 17, 1995 Mr. Klemens Tomczyk Alexandria, VA Ms. Audrey Vaughn Alabama Power Company Ms. Joan Wages Alexandria, VA Ms. Joan Wages Alexandria, VA Mr. Gary J. Walters Chief Usher, The White House Ms. Joanne Warner Assistant Curator Wallcoverings, Cooper-Hewitt Natioanl Musuem of Desing Mr. John L. Weinberg New York, NY Ms. Marty Wikstrom Vice President & General Manager, Capitol Region, Nordstrom Mr. John Wilmerding Christopher Binyon Sarofim '86 Professor in American Art. Princeton University Mr Richard B. Worley Bryn Mawr, PA Mr. & Mrs. Nelson Wurz (Dorothy) Nelson Beck of Washington Inc Mr. James R. Yates Johnson City, TN Ms. Sylvia Yount Philadelphia, PA Ms. Diane Zaremba Stamford, CT REPORT DATE 02/15/95 REPORT TIME 12:05PM Blue Room Unveiling Reception - February 17, 1995 REGRETS Hon. Jane Alexander Chairman, National Endowment for the Arts Mr. Charles Andes Haverford, PA Mr. Dwayne 0. Andreas Chairman & CEO, Archer-Daniels-Midland Company Hon. Walter H. Annenberg & Hon. Leonore Annenberg St. Davids Center Mr. Carl S. Anthony Washington, DC Mr. Joseph Antonini Chairman, President and CEO, K Mart Corporation Mr. H. Brewster Atwater Chairman and CEO, General Mills Inc Ms. Claudine Bacher Key Largo, FL Mr. & Mrs. Smith W. Bagley Washington, DC Mr. & Mrs. Perry R. Bass Fort Worth, TX Mr. Donald R. Beall Chairman & CEO, Rockwell International Corporation Mr. Riley Bechtel President, Bechtel Group Inc Mr. Stephen Bechtel Chairman Emeritus and Director, Bechtel Group Inc. Hon. & Mrs. Lloyd Bentsen (Beryl Ann (B.A.)) Secretary of the Treasury Mr. & Mrs. Max Berry (Heidi) Washington, DC Mr. Geoffrey Bible Chairman and Chief Executive Officer, Philip Morris Companies, Inc. Mrs. Billington Mr. & Mrs. Edwin Bitter (Adriana) Scalamandre Mr. Creed C. Black President, Knight Foundation Mrs. William McCormick Blair, Jr. Washington, DC Mr. & Mrs. Jack Blanton Houston, TX Mr. Robert Bogle Bentonville, AR Mr. Mike R. Bowlin ARCO REPORT DATE 02/15/95 REPORT TIME 12:05PM Blue Room Unveiling Reception - February 17, 1995 Mr. Curt Bradbury Chairman, President & CEO, Worthen Banking Corporation Hon. & Mrs. Ken Brody (Carolyn) President, Import Export Bank Mr. & Mrs. Donald Brown (Donald) Washington, DC Mr. John Bryson CEO, Southern California Edison Mr. Wayne Calloway Chairman and CEO, PepsiCo, Inc. Mr. & Mrs. Craig Campbell (Elizabeth) Little Rock, AR Mr & Mrs. B. Gerald Cantor (Iris) New York, NY Hon Robert H. Charles Washington, DC Mr. Robert Cizik Chairman, Cooper Industries, Inc. Hon. & Mrs. William P. Clements Dallas, TX Mr. John L. Clendenin Chairman, President & CEO, BellSouth Corporation Hon. Clark Clifford Washington, DC Mr. Clement Conger & Former Curator of State Dept., White House Mr. Earle M. Craig, Jr. Midland, TX Mr. Stephen Dart Chairman, International Telesystems Inc. Mr. Al D. DeSimone Chairman and CEO, Minnesota Mining and Manufacturing Company Mr. Kenneth T. Derr Chairman and CEO, Chevron Corporation Mr. Kevin F. Donohoe Bryn Mawr, PA Mr. & Mrs. Nelson Doubleday Hobe Sound, FL Mrs. Murry B. Douglas Senior Vice President, Brunschwig & Fils Mrs. Robert W. Duemling Washington, DC Ms. Louise Dunlap Managing Partner, Dunlap & Bowder, Inc. Mr. Philip Dusenberry Chairman & CEO, BBDO Mr. Michael Eisner Chairman & CEO, The Walt Disney Company REPORT DATE 02/15/95 REPORT TIME 12:05PM Blue Room Unveiling Reception - February 17, 1995 Mr. Walter Elisha CEO, Spring Industries, Inc. Mrs. Jane Engelhard Metropolitan Muesum Mr. Thomas Frist Chairman, Columbia/HCA Mr. Clayton Fritchey Washington, DC Dr. & Mrs. Phillip Frost (Patricia) Chairman, President & CEO, IVAX Corp. Mr. John Georges Chairman and CEO, International Paper Company Mr. Louis V. Gerstner, Jr. Chairman, IBM Corporation Mr. Carson M. Glass, Esq. Lubbock, TX Mr. David Goode Chairman and CEO, Norfolk Southern Ms. Elsa Greenberg Coconut Grove, FL Ms. Leslie Grossman CMA Mr. Graham Gund Cambridge, MA Mr. & Mrs. Gordan Gund Princeton, NJ Mr. John Halbrook President, CEO & COO, Woodward Governor Company Mr. Donald J. Hall Shawnee Mission, KS Mr. William A. Hall President, Hallmark Corporate Foundation Mr. & Mrs. Elliott S. Hall (Shirley) Vice President, Washington Affairs Office, Ford Motor Company Mr. & Mrs. Frederic C. Hamilton President and CEO, BHP?Hamilton Oil Company Inc. Mr. & Mrs. Sidney Harman Washington, DC Mrs. Suzanne V. Hascoe Greenwich, CN Mrs. Hechinger, Jr. Hon. Marian S. Heiskell The New York Times Hon. Michael Heyman Secretary, Smithsonian Institution Mr.. Robert B. Holt Midland, TX REPORT DATE 02/15/95 REPORT TIME 12:05PM Blue Room Unveiling Reception - February 17, 1995 Mrs. Walter E. Hussman, Jr. The Arkansas Democrat-Gazette Mr. Robert A. Iger President & COO, Capital Cities/ABC Inc. Mr. Richard Jenrette CEO, The Equitable Companies, Inc. Mr. James Johnson & Ms. Maxine Isaacs Washington, DC Mr. & Mrs. David A. Jones Chairman, Humana Inc. Hon. & Mrs. Vernon E. Jordan, Jr. (Ann) Akin, Gump, Strauss, Hauer & Feld Mr. Charles F. Knight Chairman & CEO, Emerson Electric Company Mr. Ralph S. Larsen Chairman and CEO, Johnson & Johnson Hon. Andrew L. Lewis, Jr. Chairman, President & CEO, Union Pacific Corporation Mr. Henry Luce III The Henry Luce Foundation, Inc. Mr. Jon C. Madonna Chairman & CEO, KPMG Peat Marwick Mr. John L. Marion Anne Burnett and Charles Tandy Foundation Mrs. Jack C. Massey Nashville, TN Ms. Floretta Dukes McKenzie President, The McKenzie Group Mr. Francis J. McNamara, Jr. Chairman, The Marjorie Merriweather Post Foundation, Financial Centre Mr. Frederick A. Melhado New York, NY Mr. A. Minis Savannah, GA Mr. John J. Murphy Chairman, Dresser Industries Mr. Thomas S. Murphy Chairman of the Board & CEO, Capital Cities/ABC, Inc. Mr. R. William Murray Philip Morris Companies, Inc. Mr. & Mrs. William Nitze Washington, DC Mr. Richard C. Notebaert President & Chief Operating Officer, Ameritech Mr. Peter O'Donnell O'Donnell Foundation REPORT DATE 02/15/95 REPORT TIME 12:05PM Blue Room Unveiling Reception - February 17, 1995 Mr. C. Hardy Oliver & Irmo, SC Mr. John D. Ong Chairman, The B.F. Goodrich Co. Mr. Thomas P. Peardon, Jr. President, Brunschwig & Fils Mr. Ieoh Ming Pei Architect Mr. Dennis J. Picard Chairman, Raytheon Company Mr. Roger B. Porter Professor, Kennedy School, Harvard Universtiy Mr. Robert Priddy Wichita Falls, TX Hon. (Amb.) Molly Raiser Chief of Protocol, Department of State Mr. Lee R. Raymond Chairman & CEO, Exxon Corporation Mr. Sumner Redstone Viacom International, Inc. Mr. David Rockefeller, Jr. Vice Chairman, Rockefeller Financial Services Inc. Hon. Selwa Roosevelt Washington, DC Mr. & Mrs. Jack Rosen (Phyllis) Chairman, Continental Health Affiliates Ms. Lyn M. Ross Bryn Mawr, PA Mr. & Mrs. B. Francis Saul II (Patricia) Chevy Chase, MD Mrs. Frances G. Scaife New York, NY Mr. Richard M. Scaife Pittsburgh, PA Mr. Wolfgang Schmidt Chairman & CEO, Rubbermaid Inc. Dr. William- Seale Alexandria, VA Mr. Walter Shipley Chairman and CEO, Chemical Bank Mr. Frank A. Shrontz Chairman & CEO, The Boeing Company Mr.. Raymond Smith Chairman and CEO, Bell Atlantic Mr. & Mrs. Steven Spielberg (Kate) Chief Executive Officer, Amblin Entertainment Mrs. Harriet Stephens Little Rock, AR REPORT DATE 02/15/95 REPORT TIME 12:05PM Blue Room Unveiling Reception - February 17, 1995 Mrs. John R. Stevenson The Amon G. Carter Foundation Mrs. Joy Carter Sundlun Washington, DC Mr. Gary Tooker CEO, Motorola, Inc. Mr. Daniel Tully Chairman, Merrill Lynch & CO Inc. Mrs. Alice Walton New York, NY Mr. John F. Welch, Jr. Chairman & CEO, General Electric Company The Honorable John Whitehead New York, NY Mr. Wheelock Whitney Minneapolis, MN Hon. & Mrs. James D. Wolfensohn (Elaine) Chairman, The John F. Kennedy Center for the Performing Arts Mr. Edgar S. Woolard, Jr. Chairman of the Board & CEO, E:I. du Pont de Nemours & Co., Inc. Mr. & Mrs. Alan L. Wurtzel (Irene) Chairman, Circuit City Stores, Inc. Mr. Oscar de la Renta & Mrs. Annette De la Renta Designer/Owner, OSCAR DE LA RENTA 02/13/95 14:54 2027890440 WH ENDOW FUND X 002 NANCY Folger's Resume THE WHITE HOUSE ENDOWMENT FUND BOARD OF DIRECTORS Folger, Mrs. Nancy M., Chairman 2918 33rd Place Washington, DC 20008 telephone: (202) 338-3860 Barclay, Mr. Rutgers (Leslie) 424 Canyon Road Santa Fc, NM 87501-2718 telephone: (505) 986-1400 (505) 984-3007 (FAX) Biondi, Mrs. Carol (Frank) 4551 Livingston Ave. Riverdale, NY 10471 telephone: (718) 601-8180 Craig, Mrs. Earle M. Jr. (Dottie), Past Chairman 1701 Douglas Avenue Midland, TX 79701 telephone: (915) 682-4141 (915) 682-2548 (FAX) One First City Center 500 West Texas Avenue, 1290 Tower One P.O. Box 1351 Midland, TX 79702-1351 telephone (915) 682-8244 (also FAX) secretaries: Karen Neinast, Lisa, Glenda Cummis, Mrs. Ann (Clive) LLewellyn Park West Orange, NJ 07052 telephone (201) 736-5505 Fisher, Mrs. Anne (Jerome) 114 Long Neck Point Road Darien, CT 06820 766 Hi Mount Road Palm Beach, Florida 33480 Telephone: (407) 848-7611 02/13/95 14:55 2027890440 WH ENDOW FUND 003 - 2- Gund, Mrs. Graham (Ann) 25 Craigie Street Cambridge, MA 02138 telephone: (617) 491-8080 Hartzog, Mr. George B., Jr. (Helen) 1643 Chain Bridge Road McLean, VA 22101 telephone: (703) 356-1566 (703) 506-1929 Hascoe, Mrs. Suzanne V. (Norman) 35 Mason Street Greenwich, CT 06830 telephone: (203) 629-3453 (H) ***attention: Sophia James 24 Field Point Road Greenwich, CT 06830 telephone: (203) 661-7600 (O) Horchow, Mr. Roger (Carolyn) 5956 Sherry Lane #1616 Dallas, TX 75225 telephone: (214) 363-0889 (214) 363-0924 (FAX) 5722 Chatham Hill Road Dallas, TX 75255 telephone: (214) 369-0612 (h) 33 Cliff Road Nantucket, MA 02554 telephone: (508) 228-5222 (508) 228-5223 (FAX) 1 East 66th Street New York, NY 10021 telephone: (212) 734-6066 (212) 869-3963 McLarty, Mrs. Thomas (Donna) 2475 Kalorama Road, N.W. Washington, DC 20008 telephone: (202) 332-1346 02/13/95 14:56 2027890440 WH ENDOW FUND 004 - 3 - Prosperi, Mr. A. Paul 25 Sunrise Avenue Palm Beach, FL 33480 telephone: (407) 832-5696 (407) 659-5371 (FAX) Rice, Linda Johnson Johnson Publishing Company, Inc. 820 South Michigan Avenue Chicago, IL 60605 telephone: (312) 322-9369 assistant: Helena Boyd Rollnick, Mr. William D. (Nancy Ellison) 812 5th Avenue New York, NY 10021 telephone: (212)980-4135 Ruckelshaus, Mrs. William D. (Jill S.) 5520 Woodway Houston, TX 77056 telephone: (713) 622-5223 Stern, Mr. Alfred R. 430 Park Avenue 6th Floor New York, NY 10022 telephone: (212) 308-6994 (212) 832 0483 (FAX) secretary: Pat Sullivan 791 Park Avenue New York, NY 10021 Thomases, Ms. Susan P. (William Bettridge) 929 Park Avenue Apartment 7B New York, NY 10028 telephone: (212) 772-6019 02/13/95 14:57 2027890440 WH ENDOW FUND 005 -4- Thomases , Ms. Susan (continued) Willkie, Farr and Gallagher One Citicorp Center 153 East 53rd Street New York. NY 10022-4669 telephone: (212) 935-8000 assistant: Angela Lawrence January 9, 1995 Following letters have been sent in regard to the Endowment Fund: Invitation to remain on the Board: Mrs. Earle M. Craig, Jr. Accepted-Letter sent (1/31/95) Mrs. Nancy Folger Accepted Mrs. Graham Gund Accepted-Letter sent (1/31/95) Mr. George B. Hartzog Accepted- " " " Mr. Roger Horchow Accepted- " " " Mr. A. Paul Prosperi Accepted- " " " Mr. Alfred R. Stern Accepted- " " " Mr. Susan Thomases Accepted- " " " Invitation to become a member of the Board: Mrs. Peggy Amster (1/30/95) Mr. Rutgers Barclay (1/30/95) Accepted-Letter sent (2/8/95) Mrs. Carol Biondi (1/30/95) Accepted-Letter sent (2/13/95) Mrs. Nancy Bloch (12/30/95) Regret Mrs. Ann Cox Chambers Ms Ann Cummis (1/30/95) Ms. Ann Fisher Accepted-Letter sent (1/31/95) Mrs. Suzanne B. Hascoe Accepted- " " " Ms. Linda Johnson-Rice Accepted- " " " Mr. Bruce Karatz (1/30/95) Mrs. Lynn Lear (1/11/95) Regret Mr. Hugh McColl (1/9/95) Mrs. Thomas McLarty Accepted- " " (2/1/95) Mrs. Judith Pyle (1/30/95) Mr. William Rollnick (1/31/95) Accepted- " " (2/8/95) Mrs. William D. Ruckelshaus Accepted- " " (1/31/95) CC Letters sent Mr. Michael Berman - copy of letter text with materials Erskine Bowles - copy of letter to Mr. Hugh McColl Rev. 1/20/95 Rev. 1/31/95 Rev. 2/8/95 Rev. 2/13/95 fax daved mailed THE WHITE HOUSE 2/13/95 WASHINGTON February 13, 1995 Mrs. Carol Biondi 4551 Livingston Avenue Riverdale, New York 10471 Dear Mrs. Biondi: Thank you for generously agreeing to serve on the Board of Directors of the White House Endowment Fund. On February 17th, the Blue Room will be officially reopened. The Endowment Board meeting and luncheon are scheduled for the same day. I hope that you will be able to join me for the meeting and luncheon as well as the Blue Room ceremony. Sincerely yours, Hillary Rodbam Clinton Hillary Rodham Clinton Nancy M. Folger is Chairman of the Board for The White House Endowment Fund. She is an alumni of Bryn Mawr College and the Harvard School of Education. Nancy lives in Washington, DC. Nancy presently consultants the Children's Defense Fund on special projects and is the chairman of support events for the Corcoran Gallery of Art, the Black Student Fund, the Arms Control Association and the International Human Rights Law Group. Rutgers Barclay is a graduate of Yale University. Rutgers was the President and Co-owner of Portraits, Inc., in New York City. He is founded and President of Barclay Fine Art, Inc. He currently lives in New Mexico where he is a Board Member for the Santa Fe Community Foundation. Carol Oughton Biondi is an alumni of Briarcliff College. She has worked as a Board Member, Secretary and Chairman of Development Committee for the Leake and Watts Child Care Agency and presently serves as the president of Fieldston Parents Association and is on the Fieldston Fund Board and Capital Campaign Committee. Carol was the Director of Research and Associate Producer for the ABC News Network Documentary Unit, and the assistant to Commissioner Houser at the FCC, and also worked in Public Television and for ABC News in Washington. Dorothy Meyer Craig is a graduate of Vassar College. In New York, Dorthy was on the Board of Managers for Olympic Tower, and was a member of the alumnae Council for the Brearley School. She lives in Midland, Texas and she was a member of the Board of Directors for the Midland Symphony Association, and was Trustee, President of the Board of Trustees and an Advisory Trustee at the Trinity School of Midland. Dorthy has previously been the Committee Chairman for Cultural Affairs at the Midland Chamber of Commerce. She has served as a member of The Committee for the Preservation of the White House, a Director of the White House Historical Assocaition, a trustee for the White House for the White House Preseveration Fund and Chair of the White House endowment Fund for the first four uears of its existence. Ann Denburg Cummis, is a Brandeis University graduate. She was a Trustee for the Garden State Arts Center Foundation at the same time she participated in the 1990 New Jersey Inauguration Committee. Ann is a Trustee for the Drumthwacket Foundation (the New Jersey Governor's Residence), as well as Co-Chairs the Drumthwacket Annual Fund Raising Committee. Anne Fisher Anne is a member of the Board of Overseers of the University of Pennsylvania School of Fine Arts and helped fund the restoration of the Furness Building at the University. She established the Dr. Willibald Nagler Chair at the New York Hospital--Cornell Medical Center. She has been active in funding for breast cancer research through the Nine West Foundation. Ann Landreth Gund is a Wheaton College graduate. She is involved in projects for the Fogg Art Museum, The Boston Museum, and the American Academy in Rome. Ann was a founding partner of a public relations and publicity firm devoted exclusively to the design profession. She has experience in public relations consulting for architects, landscape architects and the Aga Khan Foundation's architectural awards program. George Hartzog is an American University graduate who has worked at the Department of the Interior with the Bureau of Land Management and the National Park Service as an Attorney and Administrator. He has practiced law privately since 1973. George is the Director and President of the White House Historical Association and treasurer of the White House Endowment Fund. Suzanne Hascoe was a biochemist in cancer research. She is a member of both the chairman's council and the visiting committee of the Metropolitan Museum of Art. Suzanne is also on the Board of Trustees of the Historical Society of Greenwich, and Greenwich Antiques Society of the Bruce Museum. S. Roger Horchow is a graduate of Yale University. He has served as President of Design Research, Vice President for mail order at Neiman Marcus, President and Chief Executive Officer of the Kenton Collection Mail Order. He has also been actively involved in fund raising for the Dallas Museum of Art, Friends of Art and Preservation of Embassies. Roger is also the Producer of the Broadway Play, "Crazy for You." He is the Director of the American Institute for Public Service and the Better Business Bureau of Dallas. Donna C. McLarty is a graduate of the University of Arkansas. She is a member of the Board of Directors for WETA Public Broadcasting Station, the Blair House, and Meridian International. Donna Co-chaired the United Nations Annual Dinner, the Kennedy Center Honors Gala, and the Ambassador's Ball for the National Multiple Sclerosis Society. In Arkansas, she is a Charter Member of the Governor's Mansion Association, and is on the Board of Directors for the Aerospace Education Center. Linda Johnson Rice graduated from the University of Southern California, Los Angeles and later attended Northwestern University where she received her Masters of Management. She is the President and Chief Operating Officer of the Johnson Publishing Company, Inc, as well as the President of Fashion Fair Cosmetics. Linda is on the Board of Directors for several organizations, some of which include the Northwestern Memorial Corporation, the Bank of America Illinois, Magazine Publishers Association, the Dial Corporation and the Center on Addiction & Substance Abuse. She is on the Board of Trustees for the Museum of Contemporary Art, the University of Southern California and Northwestern University. William D. Rollnick is a graduate of Ohio State University. He is a Director and Member of the Executive Committee for Mattel, Inc., Chairman of Genstar Rental Electronics and Director for Ayer Inc. William Co-Produced productions of "Man of La Mancha". He is a Board Member for the Metropolitan Opera Association, a Board and Executive Committee Member for the American Ballet Theater, and a Member of the Board for the New World Symphony, Miami. Alfred R. Stern is a graduate of the University of North Carolina. A Partner with Hampton Partners and he is the Chairman of Business Research Publications. Alfred is a Trustee of the American Museum of Natural History, the Hospital Association of New York State, the White House Historical Association and the Film Society of the Lincoln Center Jill S. Ruckelshaus is a graduate of the University of Indiana. She is a member of the Board of Directors for the Sea First Corporation, the Lincoln National Corporation, UNICEF/US, Alley Theater, and the Indiana University Foundation. Jill is on the Advisory Boards for the National Women's Political Caucus, the National Leadership Commission on Health Care, the Northwest Women's Law Center and the Hitachi Foundation. She has served on the Mt. Vernon College Board of Trustees and the White House Fellows Selection Committee. Susan P. Thomases joined Willkie Far and Gallagher as an associate in 1979, and was named partner in the Firm in 1982. She practices with Corporate Finance and Government Relations Departments. Ms. Thomases also managed the firm as Administrative Partner from 1982 to 1991. Prior to entering the practice of law, Ms. Thomases held numerous consulting positions. Susan is a member of the board of director of the Children's Defense Fund and the White House Historical Association. She is a Trustee of the American Place Theater in New York.