M E M O R A N D U M

TO: / St. Andrew’s File
FROM: / George T. Shaw
RE: / Funds Held at Trustees of Diocesan Funds for St. Andrew’s
DATE: / May 25, 2006, revised August 1, 2007

This memorandum is based on my research of the records at the Diocese and at St. Andrew’s. In this memo I refer to The Trustees of Diocesan Funds as “TDF”. Terry Reimer, Financial Officer for the Diocese, provided me with a summary of the funds held at TDF for the benefit of St. Andrew’s. A copy is attached.

I – Analysis of Funds by Donors

Funds Established by Emma Fields Gardiner

St. Andrew’s was blessed with several generous gifts from Emma Fields Gardiner, daughter of Capt. William Taylor Glidden by his second wife and sister of John M. Glidden. She married Charles Perkins Gardiner; they had one child, Mary Gardiner, later Mary Cabot. I have identified the following major gifts from Emma Gardiner:

Gift of Original Parish House

On June 4, 1892, Emma Gardiner gave to TDF the original Parish House located across Glidden Street from the church. The deed, recorded in the Wiscasset registry in Book 292, Page 169, provided that if “said buildings shall become unfit for use and said parish shall be unable to repair or rebuild the same, [TDF] with the authority of said Parish aforesaid may sell the property and apply the income of the proceeds of such sale to such use as said parish may direct, if in the opinion of [TDF] such use shall be fore the benefit of said Parish.” The minutes of a special parish meeting on September 22, 1952 notes that the sale of the old parish house had been under discussion for 15-20 years, that the issue was brought to a head by the relocation of Rt. 1 within a few feet of the south side of the building and that the meeting approved the sale. After a Vestry vote of February 20, 1955, recording that there were insufficient funds to make needed repairs, the property was sold to Sun Oil Company in 1955 for a price of $4,500. Since the property belonged to TDF, the proceeds were retained by TDF as an endowment fund with only the income available to St. Andrew’s (letter of Fred C. Scribner, Esq., counsel to TDF, dated 2/19/55). As of December 31, 1964 the value of this fund was $5,010.73 (described as Emma F. Gardiner Fund in letter of R.H. Hayden of Canal National Bank to Walter Bowie, Chair of St. Andrew’s Finance Committee dated 1/15/65). I believe that this Fund from the Sale of the Old Parish House is referred to as the Emma F. Gardiner Fund and is one of the constituent funds in the TDF Fund #1000 (St. Andrew’s Combined Fund).

Gift of “Highway” Lot, East Side of Glidden St.

On December 18, 1907, Emma Gardiner gave to TDF a lot of land on the east side of Glidden St. abutting Rt. 1 and “John Sproul’s store.” The deed, recorded in the Wiscasset registry in Book 434, Page 351, directed TDF to hold the property “for the benefit of [St. Andrew’s] so long as the Parish shall exist; and if at any time it shall cease to exist, then for the benefit of the [Diocese]. [TDF] shall have full power to hold; manage; and dispose of said property, as it shall think most conducive, for the interest of said Parish, so long as it shall exist; and thereafter of said [Diocese].” In 1953 TDF received $1,550 as compensation when this land was taken by the state in connection with the widening of Rt. 1. George Hulen on behalf of St. Andrew’s requested unsuccessfully for TDF to release the taking proceeds for use to repair the Rectory (letter of Fred Scribner dated 10/19/54). As of December 31, 1964 the value of this fund was $1,630.63 (described as Fund from Sale of Property to State Highway in letter of R.H. Hayden of Canal National Bank to Walter Bowie, Chair of St. Andrew’s Finance Committee dated 1/15/65). This Highway Taking Fund is one of the constituent funds in TDF Fund #1000 (St. Andrew’s Combined Fund).

Gift of Rectory Fund from 1910 Trust Pursuant to May 6, 1914 Amendment

On June 6, 1910, Emma Gardiner established a trust with Robert H. Gardiner and Robert H. Gardiner, Jr. as her trustees. By an amendment dated May 6, 1914, she directed her trustees at her death or at earlier time they deemed advisable to pay $2,000 to TDF “in trust to use it at the discretion of [TDF] for the purchase and maintenance of a rectory for [St. Andrew’s] with the power to accumulate the income until the funds shall be sufficient for that purpose, or if not needed for that purpose the income may be applied for the general purposes of said parish …” A letter from Mr. Gardiner dated February 1, 1917 addressed to Mr. Winslow indicates that the payment had been made by that date. This fund is referred to in the records as the Rectory Fund. “A special rectory fund had been set up but for some reason only the interest could be used” (St. Andrew’s history, p. 63). As of December 31, 1964 the value of this fund was $3,037.07 (letter of R.H. Hayden of Canal National Bank to Walter Bowie, Chair of St. Andrew’s Finance Committee dated 1/15/65). This Rectory Fund is one of the constituent funds in the TDF Fund #1000 (St. Andrew’s Combined Fund).

1987 Distribution from 1910 Trust Pursuant to August 19, 1912 Amendment

By an amendment dated August 19, 1912 to the June 6, 1910 trust, Emma Gardiner directed her trustees that if certain events happened (the death of two granddaughters without surviving issue) “one fifth part of the property then held in trust under [the 1910 trust] shall be paid free of said trust to [TDF] in trust for the benefit of [St. Andrew’s] as long as said Parish shall exist…” (emphasis added). On July 20, 1987, the second granddaughter died with neither leaving surviving issue. Fiduciary Trust Company in Boston, succeeding trustee, distributed one-fifth of the trust to TDF in late 1987. The total distribution was $216,801.

The attached summary from TDF shows that Account #481, Emma Fields Gardiner Fund, has a 12/31/04 balance of approximately $429,161. Based on that value I infer the 1987 trust distribution pursuant to the 1912 amendment is now the Emma Fields Gardiner Fund, Fund #481.

1883 Endowment Fund

On November 22, 1883, the day St. Andrew’s was consecrated, 26 contributors donated $3,600 to establish an “Endowment Fund” pursuant to a declaration of trust between the contributors and John M. Glidden, Robert Dixon and Charles P. Gardiner as trustees. The declaration establishes the Fund “the income whereof is to be used for the maintenance of religious services therein, according to the forms and usages of the Protestant Episcopal Church [of the US]” and directs the trustees to pay the income annually “to the Treasurer of the Episcopal Society occupying said Church … to be appropriated, first, to payment for the services of the Minister in charge; and, secondly, if any part of said income remains, to payment of such expenses of said society as the said Treasurer may be directed to pay by the said Trustees.” The declaration further appointed the then Bishop of Maine (Henry Neely) and his successors to fill vacancies among the trustees, and Bishop Neely signed the declaration as a party to it. In 1952 Bishop Loring exercised his powers over the trust by appointing TDF as successor trustee to the individual trustees (see letter of Fred C. Scribner to J.P. Thompson of the U.S. Treasury dated 3/25/52). As of December 31, 1964 the value of this fund was $21,691.16 (described as Endowment Fund in letter of R.H. Hayden of Canal National Bank to Walter Bowie, Chair of St. Andrew’s Finance Committee dated 1/15/65). The Endowment Fund is one of the constituent funds in the TDF Fund #1000 (St. Andrew’s Combined Fund).

Alice H. Richards Memorial Fund

By copy of a letter dated November 9, 1941 to Widgery Thomas, Mary T. Richards stated that she and her husband wished to give $1,000 to St. Andrew’s to establish the “Alice H. Richards Memorial” with the stipulation that “we wish it invested by [TDF], the interest to be used by St. Andrew’s Church for parish expenses or other church needs.” Sidney Thaxter, Chancellor of the Diocese, responded that TDF “will of course be very glad to act as trustee of the fund you wish to establish” and suggested that she send her check to TDF to the trustees directing them “to invest the money and hold the principal as a fund to be known as the ‘Alice H. Richards Memorial’, the income from the same to be applied to the expenses or other Church needs of [St. Andrew’s].” By a letter dated November 29, 1941 addressed to TDF Mrs. Richards sent a check for $1,000: “I have been advised by Mr. Thaxter to send the check to you. We would like you to invest the money and hold the principal as a fund, … the income from the same to be applied to the expenses or other church needs of [St. Andrew’s].” Fred Scribner wrote Helen Brown, secretary to TDF, on February 10, 1943 abut the Richards Fund: “Under the letter creating the trust, [TDF] are required to keep the trust in their possession, and are not authorized to forward it to the local bank described in Father Robinson’s letter, nor are they permitted to allow other individuals to be substituted for [TDF]. This fund must be retained by [TDF].” To similar effect is a letter dated February 6, 1943 from Mr. Thaxter to Mrs. Brown. As of December 31, 1964 the value of this fund was $1,023.48 (letter of R.H. Hayden of Canal National Bank to Walter Bowie, Chair of St. Andrew’s Finance Committee dated 1/15/65). The Alice H. Richards Memorial Fund is one of the constituent funds in the TDF Fund #1000 (St. Andrew’s Combined Fund).

Arthur and Barbara Winfree Fund

By a deed dated December 4, 1957, recorded in Wiscasset Book 536, Page 361, Arthur and Barbara Winfree gave to St. Andrew’s land and buildings in Sheepscot (South Dyer Neck Road). The minutes of Vestry on January 6, 1958 note receipt of the gift. The deed does not contain any restrictions on use of the property, or any sale proceeds, by St. Andrew’s. The property was sold in 1959 for $4,000 (Book 550, Page 373 and Book 597, Page 85). The Vestry voted on December 14, 1959 that “$4,000 received from the sale of the Church farm be placed with [TDF] for investment, for the benefit of [St. Andrew’s]; and that this particular Fund be known as, ‘The Arthur and Barbara Winfree Fund’.” It is unclear whether the fund was transferred to TDF as trustee or simply as an agent for investment purposes. As of December 31, 1964 the value of this fund was $4,019.13 (letter of R.H. Hayden of Canal National Bank to Walter Bowie, Chair of St. Andrew’s Finance Committee dated 1/15/65). By a letter dated August 14, 1961, Fred C. Scribner wrote to George Hulen of St. Andrew’s that “With the Bishop’s approval, [the Winfree Fund] could be returned to the parish.” In response to a request for an opinion from Mr. Hulen, David Soule, Esq., counsel for St. Andrew’s, stated in his opinion letter dated April 5, 1965 that “This transfer [to TDF for investment], by the language of the vote, does not appear to be revocable. There is no reservation that the church recover the same. Since the transfer does appear to be irrevocable, it is my opinion, based on the language of the vote that it will not be possible to recover the principal of [the Winfree Fund from TDF].” On August 8, 1978, Samuel Hartman (Rector) inquired of Mr. Scribner “if it would be possible to withdraw some or all of the [Winfree Fund] from investment with [TDF] to contribute it to the Memorial Garden we are completing here at St. Andrew’s.” On May 17, 1979 Rev. Hartman again wrote Mr. Scribner that “Arthur Winfree, the original donor of the fund, has asked that it be used to complete a Memorial project here at St. Andrew’s, and the Vestry has agreed with his request. From the enclosures in your letter [of August 24, 1978] it appears that both the Winfree and Rectory funds can be returned to the Parish and at their May meeting the Vestry noted that this be done.” The files do not indicate whether the either funds was transferred. The Winfree Fund is (or was) one of the constituent funds in the TDF Fund #1000 (St. Andrew’s Combined Fund).

Gift of Rectory

The Rectory, up Glidden St. from the church, was given to TDF on August 11, 1916 by a deed from Harvey Winslow. The deed, recorded in the Wiscasset registry in Book 348, Page 12, recited that it was given “for consideration paid by Mary C. Cabot” to TDF “to their use and behoof forever for a rectory for the benefit of [St. Andrew’s] so long as said parish shall exist, and if it shall be at any time cease to exist, then for the benefit of the [Diocese].” Mary Cabot was daughter of Mr. and Mrs. Charles P. Gardiner.

In 2000 St. Andrew’s bought the present Parish House and arranged for TDF to sell the Rectory to David and Susan Levesque. Funds for the purchase of the Parish House were raised within the parish and by a loan from TDF, since repaid. The letter from Scott Shott, Senior Warden, to William Clark of Wind River Capital Management dated May 16, 2000 confirming delivery of the sale proceeds to TDF, stated the investment instructions were intended “to maximize the amount of stable income that will be available from these new endowment funds to pay for expenses associated with the Rector’s housing stipend.” It appears that this limitation may have been prompted by a letter from Joseph Delafield, Chancellor of the Diocese, dated May 3, 1999: “I believe the Standing Committee would require the income from such funds to be applied by the parish to the housing needs of the rector, although the Standing Committee must speak for itself on that point.” The $200,000 proceeds from the sale of the rectory were delivered to TDF and credited to St. Andrew’s Diocesan Endowment Fund, Fund # 1005.

Other Gifts

The files as TDF show that $250 was left as a bequest by Frances Perkins in 1965 “to the Bishop of the Episcopal Diocese of Maine, for the benefit of [St. Andrew’s].” A January 10, 1967 letter from Fred Scribner to Walter Bowie describing the funds at TDF lists the six funds mentioned above but does not refer to the Perkins bequest nor does the subsequent correspondence relating to the combination of funds refer to that bequest. I could find no reference to other gifts to TDF for St. Andrew’s.