Aug. 12, 1938.

C. B,. Russell, Treasurer
Lawrence Rotary Club
Lawrence, Kansas

liy dear Mr. Russell:

Referring to our conversation relative to Chile Bonds at the luncheon today
noon, I am re—hashing some information and sending a copy of this letter to Mr,
Karl Klooz that he may bring the matter before the Rotary Club Directors, as
perhaps no one who was a Director in 1930, is a Director at this time, The ©
facts are as follows: ~ — As Treasurer of the Rotary Student Loan Fund, I found
that it was taking too mich of my time and personally felt that I would like to
continue it as a distinctive Rotary Fund by ceasing to make any more collec-
tions or making any more loans, about July 7, 1933, I made up a complete state~
ment of this fund and a supplemental statement on Sept. 15, 1936, which shows
that I have on hand as Treasurer, the sum of $198.98 and the old Rotary Notes

as per list. I was authorized by Resolution of the Club to turn over to Paul

A. Dinsmoor and iJalter G, Thiele, the sum of 9981.48 and they were instructed
to invest it in bonds and pay the interest annually to some form of student
activity. I gave them my check on the Rotary Fund for the amount, $981.48.
hile they were in the Bank, they went over to hir. Fe We Hosford and purchased
from him a Chile Bond, $1000,00 Par, on hay 6, 1930, for $921.25, This was the
actual bona fide market for Chile Bonds at that time. after the sale was made ,
they came back to my desk and I expressed a regret that they did not buy an
Argentine Government Bond drawing the same rate of interest. Now it so happened

that my guess as that time would have been good.

I think also, Mr, Russell that if you will check your records, this bond could
have been sold for this price or very near this price for several months after
this purchase, and as I understand, it was turned over to you and that one of
the coupons which could have been cashed when it was due, was permitted to be
carried and was not presented until some time afterward when all Chile Bonds
went into default. The amount of money I paid them was $981.48, and after pur-
chasing the Chile Bond, they had sufficient funds to purchase a U, S, Govern-
ment $50.00 bond, and I am assuming that the Rotary Club still has this bond,
Now I am not writing this letter to criticize anyone or clear anyone's skirts
in the transaction. However, I know that I worked faithfully to collect in
this fund and used ordinary diligence in loaning it out, but in every case I
secured a recommendation from someone on the Hill before making the loan. Now
the condition of this fund at this time is that I have in my account as Treas—
urer, $198.98 and the 378,00 worth of notes, The Rotary Club should have the
&50,00 bond, and the Chile Bond which is worth about $195.00 at this time,

Mr, Dinsmoor and Mr, Thiele of course acted in good faith, and Mr, Hosford acted
in good faith in selling the bond and he sold them the kind of bond that they
desired to purchase and at the then market. I am giving this information that
the matter might be brought before the Directors with any action that they may
wish to take in the matter, and I am enclosing herewith the statement in detail
and the supplemental statement and am asking that you present these to the
Directors as I do not have an extra copy, — only for my files,

Very truly yours

IJM:BEM:ENC. I. Je Meade