Acquiring a Share of History

According to the 1820 history of The Athenæum, "about the close of the year 1813, a number of gentlemen assembled for the purpose of establishing reading rooms in Philadelphia.  Their first and immediate object was the collection, in some central place, of American and foreign periodical publications of politics, literature and science, maps, dictionaries and other books of reference...."

Shares of History.  A collage of Athenæum share certificates spanning nearly two hundred years along with a nineteenth-century painted tin "active shares" box, photographed on an Anthony Quervelle center table (c.1829).  The silver ink stand is English, 1778.

February 9, 1814, The Athenæum formally organized to collect "historical and other monuments, connected with the history and antiquities of America, and useful arts, and generally to disseminate useful knowledge."

The first members were called subscribers, each of whom paid $25 upon joining to purchase books for the new library.  Annual dues of $4 paid the librarian's salary and heated the rented rooms.  The society incorporated and issued shares of stock the following year, the ownership of a share to constitute a stockholder.

For many years the number of shares issued prior to 1868 determined the size of the membership.  Then, in 1989, 175 new shares were created to celebrate the 175th anniversary of our founding; these new shares were quickly sold, primarily to the spouses and children of persons already holding shares or to individuals particularly interested in the activities of the research library.  This brought the total number of possible shares to 1,500.  To become a stockholder, one of these shares must be available for purchase.

Stockholders are the voting members of the corporation who elect the board of directors at the annual meeting held on the first Monday in April.

To remove some of the mystery that surrounds Athenæum stockholding membership, we've asked Executive Director Roger Moss to answer some of the most common questions concerning Athenæum shares. [PAT is the abbreviation for The Athenæum of Philadelphia]    -Ed.

PAT: What does it mean to be a 'stockholder" of The Athenæum?

Moss: The Athenæum was founded nearly 200 years ago as a proprietary institution.  Under our Charter the corporation has "a capital stock to be issued from time to time by the board of directors at such price as the board of directors shall determine." "The ownership of one share shall constitute a stockholder…”  The 1,500 stockholders are the voting members of the corporation.

PAT: What is the process for acquiring a share?  Is there a form?

Moss: There are no forms because so few shares change hands each year.  But the process couldn't be simpler.  A member writes to The Athenæum (c/o The Secretary), giving the name and address of the person being nominated.  We like to have a little information about the person as well (profession, interests, relationship to the nominator).  A letter of invitation including information about The Athenæum is sent to the nominee, a copy of which goes to the nominator.  If the nominee accepts the invitation the name is added to the Membership Committee report for election at the next meeting of the Board of Directors.

PAT: You've already answered my next question about the number of shares-1,500.  How many of those become available for purchase each year?

Moss: In a typical year 25 to 30 shares will be returned to the treasury for resale.  That's about a 3% annual turnover.

PAT: You mentioned income from shares earlier.  What does a share cost?  And what are the dues?

Moss: A share costs $400 to purchase and the annual dues are $125.

PAT: How does the cost of Athenæum shares compare with similar institutions, say in Boston and Providence?

Moss: Boston Athenæum shares cost $ 1,000 with annual dues of $ 200.  Providence Athenæum shares must be repurchased annually for $185.

PAT: How has the cost of our shares changed relative to the cost of living?

Moss: That's an interesting question.  In the early years of the nineteenth century shares cost $20 to $25 each.  That was about a month’s pay for a laborer in Philadelphia which gives you an idea of how expensive a share was.  Gradually the share floated up, particularly in the post- WWII period: $50, $100, $200, $300, and finally $400-which means that shares cost less today, relative to purchasing power, than they did in the nineteenth century.  If forced to Project into the future, I would guess that the share purchase price will continue to increase.  

On December 21, 1818, the minutes of the Athenæum record that "A copper plate for Certificates, a donation from Tanner, Vallance & Co. was presented..." The donors, Henry S. Tanner, John Vallance and Francis Kearney, were engravers at 10 Library Street, directly across from The Athenæum's rooms in Philosophical Hall. Tanner had just become a stockholder and Kearney would later acquire a share.  This putto, called a "symbolic representation of the pleasure to be found in true learning," has embellished Athenæum share certificates since 1818.

PAT: Dues are $125 per year.  Have they increased as well?

Moss: Yes, but not as rapidly as the cost of shares.  The increase in endowment income has tended to keep costs down.  Also, approximately 20% of the members make annual contributions toward the cost of operations which helps to bridge the gap between income and expenses.

PAT: What about life memberships?

Moss: The charter provides for life memberships. They presently cost $3,000 and are "exempt from the payment of annual dues." $3,000 invested at 5% provides an annual income with a margin for capital growth.

PAT: How many of the present shares represent life memberships?

Moss: Approximately 10% of the shares represent life memberships. Incidentally, life memberships were available for $100 in the 1950s, which gives you some idea of why they are such a bargain even at today's price. Life membership payments are invested in the endowment fund.

PAT: Does a life membership transfer like an “annual" share?

Moss: Yes, except that it becomes an “annual” subject to dues once transferred.

PAT: Can a member own more than one share?

Moss: That was possible in the last century, but the By-Laws now state that  “no shareholder, annual or life, shall be entitled to more than one share."

Athenæum share certificate #1 issued in 1815 to Chief Justice William Tilghman (1756- 1827), first President of the corporation, and validated by Treasurer Roberts Vaux (1786-1836).  The share was subsequently transferred to George Cadwalader.  This is the earliest share certificate form.

PAT: If I resign my share, do I recover the original purchase cost?

Moss: Most shareholders who resign have their share transferred; the new shareholder thereby avoids the payment of the $400 purchase price.  Otherwise the share returns to The Athenæum treasury without payment to the resigning member and becomes available for re-issue.

PAT: Must I transfer the share to a blood relative?

Moss: No, but the transfer must be approved by the Board of Directors.  The By-Laws state that the "share of a deceased member, either annual or life, may be transferred or a new share issued to the surviving spouse or to a lineal descendent or to a nephew or niece or to a legatee of a deceased member upon the written request of such person, preference being given to the spouse..."  In practice we honor most requests for transfer.

PAT: Shares are issued in one name rather than two.  Does that mean only one person can use the facilities or attend programs?

Moss: Except for voting at annual meetings-where one share, one vote prevails-the share covers all resident members of the household.  This includes program invitations, member discounts, and use of the circulating library.             

PAT: Yet I notice that several married  couples both own shares in their own names. Since you say a share extends benefits to the entire household, why should these families continue to pay dues on more than one share?

Moss: Both spouses may have inherited shares from their families which they wish to retain. More often we find that parents or grandparents with more than one child or grandchild will acquire a second share so both can bequeath a family share. Shares also make great gifts.

PAT: Gifts?

Moss: In recent years we've seen a trend of one spouse acquiring an Athenæum share for the other as a holiday or birthday gift.

PAT: The history and profile of Athenæum share holding is fascinating.  For example, are most members resident in the Philadelphia area?

Moss: 40% of the shareholders live within the City of Philadelphia, 40% live in what could be called the Delaware Valley, and the remaining 20% are scattered over 33 states and 5 foreign countries.  It is not uncommon to hear members from other states say that they maintain their shares as a tie to their Philadelphia roots.  Other members maintain their shares to help preserve the building and collections or to encourage our programs.

Thomas Sully's certificate for share #29 issued on April 23, 1818, and validated by Quinton Campbell, Treasurer, and John B. Bowen, Librarian.  This is the second stock certificate form used until the Tanner, Vallance and Kearney gift.

PAT- That raises a question.  Which share has been owned by the same family the longest?

Moss: Actually three families can claim that honor; all acquired their shares in 1816.  Nicholas Biddle's share passed to Craig Biddle (1842), Charles Biddle (1875), Charles J. Biddle (1937), and James Biddle (1972).  The James S. Smith share passed to T. Leaming Smith (1831), Henry H. Smith (1841), R. Rundle Smith (1843), J. Somers Smith (1906), J. Somers Smith (1955), and J. Somers Smith, Jr. (1972).  Finally, the George Vaux share passed to William Sansom Vaux (1836), George Vaux (1883), George Vaux, Jr. (1916), George Vaux (1947), and George Vaux McCauley (1997).

PAT: Do these old shares tend to pass by testamentary bequest?

Moss: Yes, the longer a share is held by a family, the more likely it is to become a specific bequest.  Charles J. Biddle mentioned his "share of stock in The Athenæum, which originally belonged to my great-grandfather, Nicholas Biddle, and which is one of the four oldest shares continuously held in the male line of a family since the creation of The Athenæum in 1814.  As a matter of sentiment and tradition I would like to see the share kept in the family both on account of my great-grandfather and also my father, who was for some years President of The Athenæum."

PAT: But if I didn't have an ancestor who was a founder or early member, why would I acquire a share now?

Moss: It's rather like the appeal of compound interest or planting oak trees.  Your grandchildren will say, "I inherited my Athenæum share from my grandmother or grandfather." In my many years at The Athenæum I've seen dozens of shares acquired in the 1950s and 1960s pass from one generation to another.

PAT: Occasionally members say that they acquired a share because of the circulating library service.  I don't plan to use the circulating library, so why should I join The Athenæum?

Moss: Surprisingly, most members do not use the circulating collection.  The most common answer is: "The work The Athenæum does to encourage research, publications, and exhibitions is important and deserving of support." One member recently told me that she keeps her Athenæum share for the same reason she annually renews her membership in the Zoo and the Academy of Natural Sciences.  Not because she goes there often, but because she believes the institution deserves support.  I think it also relates to the permanence of The Athenæum in a changing age.  The more other institutions appear to be chasing after the current fad, the more The Athenæum seems to strengthen its traditional sources of support.

PAT: That smacks of elitism; not a popular position today among not-for-profit institutions.  How can The Athenæum expect to survive without public funds that are usually granted to institutions which can demonstrate public service in terms of high attendance figures?

Moss: The Athenæum receives no operating support from agencies of government, although we are exempt from taxes and regularly receive funds for special programs.  The secret of our success is the support of our private members.  During the NEH Challenge fund drive we added $1,300,000 to our restricted endowment in support of staff salaries, mostly in small gifts from the members.

PAT: Recently more Athenæum programs have been free of charge.  Is that a factor of growing endowment?

Moss: Absolutely! We've added endowment support for several programs.  The Charles Wharton Stork endowment supports a literary lecture in the spring, the William Strickland Memorial Fund supports an architectural lecture in the fall, and the recipient of the Charles E. Peterson Fellowship is required to give a lecture on the subject of the research.  As The Athenæum becomes more self sufficient we are able to provide more programs as a benefit of membership.

PAT: The programs are certainly attractive.  Why doesn't The Athenæum advertise them and open the doors to the public?

Moss: Unfortunately, our seating is limited in the building.  In recent years we have had capacity crowds for virtually all the member programs.  I hate to turn away a member because we'd filled the hall with guests.

PAT: One last question.  If you had to describe The Athenæum in a few words, how would you do it?

Moss: I would fall back on the parable of the three blind men and the elephant.  One grabbed the trunk, the second the body, the third the tail; each then thought he knew what an elephant was.  The Athenæum is like the elephant ... what you think of it depends on what part you seize on.  To the graduate student or senior scholar it is a rich resource of rare books and documents that are carefully tended by a knowledgeable staff.  To the avid reader interested in having the latest work of travel or biography mailed to the suburbs, it is a convenient and tolerant circulating library.  To the tourist it is a wonderful building filled with beautiful objects; a living museum, yet an anachronism- a part of that indefinable continuity that makes Philadelphia the most interesting and historically exciting city in America.