THE APPLETON FUND.

This fund consisted of ten thousand dollars presented to the Society, Nov. 18, 1854, by the executors of the will of the late Samuel Appleton, on the condition that its income be applied to the purchase, preservation, and publication of historical material. It was received from the executors in ten shares of manufacturing stocks. These stocks were sold in February and March, 1863; and the net proceeds, amounting to twelve thousand two hundred and three dollars, were invested in the real estate of the Society, according to the Declaration of Trust recorded in the Register of Deeds office, book 827, p. 63. On the 14th of March, 1872, the Society, by a vote, authorized the Treasurer to sign, and cause to be recorded, an instrument relinquishing the said Declaration. This instrument was signed April 13, 1872, and is recorded with Suffolk Deeds (Lib. 1,102, fol. 89). A new Declaration of Trust was then made, which is on file, giving similar security to the investment. Volumes three to ten inclusive of the Fourth Series of the Society's "Collections," and the first volume of the Fifth Series, were printed from the income of this fund, and the strictly historical portions of the volumes of the " Proceedings" of the Society for 1862-63 and for 1864-65.

MASSACHUSETTS HISTORICAL TRUST-FUND.

This fund was originally two thousand dollars, presented to the Society by Hon. David Sears, by an instrument dated Oct. 15, 1855, and accepted Nov. 8, 1855. This provides that the income is to be added to the principal annually between July and January, to form a new investment; but in any year before such investment, the Society may, by vote, expend the income for such purposes as may be required; or it may, by vote, expend the accumulation of the income, in whole or in part, towards the purchase or improvement of the premises belong

ing to the Society, "or in the purchase of works of art or desirable objects": provided that, in no case whatever, "the original trust-sum be encroached upon or diminished."

The original sum of two thousand dollars was invested in the Society's building. The principal was increased on the 26th of December, 1866, by a subscription by David Sears and Nathaniel Thayer, of five hundred dollars each, according to the terms of the original instrument, which has not been invested. This, with the two thousand dollars, stands on the ledger as an obligation of the Society, making the principal three thousand dollars.

Pursuant to a vote of the Society, five hundred dollars was paid July 5, 1869, from the accumulation, towards paying off the debt incurred by the purchase of the estate owned by the Society. No other expenditure has been made from the accumulation.

According to the terms of the trust, the whole of the accumulated income may be appropriated, by a vote of the Society, "to the improvement of the premises belonging to the Society"; hence the sum of $2,672.12 may now be appropriated for this purpose.

THE PEABODY FUND.

This fund was presented to the Society by George Peabody, in a letter dated Jan. 1, 1867, enclosing an order for $20,000 in 10-40 Coupon Bonds, and providing that they, or their proceeds, shall be held by the Society as a "permanent trust-fund, of which the income shall be appropriated to the publication and illustration of their Proceedings' and Memoirs,' and the preservation of their Historical Portraits." This trust was accepted by a vote of the Society, Jan. 10, 1867. The Coupon Bonds have been exchanged for two United States 10-40 Bonds. of $10,000 each, registered in the name of the Society, dated

Jan. 12, 1867, and numbered 9,904 and 9,905, with the inter

est payable in Boston.

The Proceedings" for 1866-67, 1867-69, and 1869-70, were printed from the income of this fund.

passing through the press.

Account to April, 1873.

Another volume is

The balances of the general account, and the several funds, are as follows:

The report of the Building Committee presents the details of the improvement of the real estate owned by the Society. To the contracts named in the last Annual Report, with Thomas J. Whidden, mason, of $43,975, and of Morton & Chesley, carpenters, of $10,736, has been added a contract with Walker & Co., for the heating-apparatus, for $2,360, making a total of $57,071. To this are to be added the bills for extras, and the fees of the architects, which have not been adjusted.

By a vote of the Society, March 14, 1872, the President and Treasurer were authorized to execute a mortgage on the real estate of the Society to an amount not exceeding $60,000, and

to sign a note for this amount. It was found necessary, in order to do this, for the Society to "relinquish or rescind" the Declaration of Trust, as mentioned in the account of the Appleton Fund. When this was done, the President and Treasurer, April 17, 1872, signed a mortgage of the real estate to Robert M. Mason, Samuel W. Swett, Joel Parker, and J. Ingersoll Bowditch, trustees under the will of Eben Francis, for $60,000, agreeing to keep the property insured for not less than $21,000. They also signed a note for $60,000 payable in five years, at the rate of seven per cent, payable semi-annually. The building is insured for $25,000, as follows: one-half in the Royal Insurance Co. of Liverpool, and one-half in the Insurance Co. of North America, Philadelphia. The policy runs for five years, and is payable, in case of loss, to Robert M. Mason and others, trustees under the will of Eben Francis.

The President and Treasurer signed a lease to the City of Boston, of portions of the basement, and the entire first story and second story of the building, with the exception of the stairway enclosed, for fifteen years. The rent is $9,000 per annum, payable quarterly. The lease also contains an agreement between the City and the Society, relative to the occupancy of the small parcel of land" owned by the City, which the easterly end of the building covers. The lease was formally completed May 11, 1872. The lessee agrees to pay" all taxes and assessments whatsoever, whether in the nature of taxes and assessments now in being or not"; but assessments in the nature of a betterment are excepted, and definite provisions named respecting them. The building was so far completed, that the rent commenced on the first day of January, 1873.

The property of the Society is as follows: the real estate on Tremont Street; two United States bonds of $10,000 each. ($20,000); a coupon note of the Hannibal and St. Joseph Railroad of $1.009, and a bond of the Quincy and Palmyra Railroad of $1,000; about seven thousand volumes of the Society's publications (namely, forty one volumes of the "Collections," nine volumes of the "Proceedings," two volumes of theCatalogue," and one volume of "Lectures"); the Library of 16,470 volumes, and over 36.000 pamphlets; the Dowse Library of 4,650 volumes; and the copyright and plates of the "Life of John Quincy Adams.”

The income of the Society consists of an annual assessment on each Resident Member of seven dollars, the admission-fee of ten dollars, the rent of the building, the interest on the Peabody Fund and on $2,000 bonds.

The obligations of the Society are the annual interest to the Appleton Fund, to the Dowse Fund, and to the Massachusetts Historical Trust-Fund, and the interest on its mortgage note. After these obligations are met, there will be means left to resume the publication of the " Collections," and to pay off a portion of the debt annually. But, in view of the immediate wants of the Society, I recommend the printing, this year, to be limited to the publication of the Proceedings.

66

The Society owe the amount borrowed of the Merchants Bank, namely, $1,800 on two bonds, and $2,500, on a note signed by the President and Treasurer. The liberality of the members in their subscriptions, in lieu of the annual assessment of seven dollars, has enabled me to meet the demands on the treasury.

The bills for fitting the rooms have not all been presented, nor have the Building Committee settled with the contractors. Hence a complete statement of the cost of the improvements must be deferred.

Respectfully submitted.

BOSTON, April 8, 1873.

RICHARD FROTHINGHAM, Treasurer.

Report of the Librarian.

The Librarian has the honor to submit his Annual Report. There have been added to the Library during the past year:

Of the books added, 223 have been given, 22 have been procured by exchange, and 7 bought. Of the pamphlets added, 717 have been gifts, and 69 exchanges. Of the Society's publications, 2 volumes have been exchanged for other works, and 19 volumes have been received back by purchase. It is reckoned that there are now in the Library, including the Dowse collec