Putnam Will Handle The Money

Since 1928, the same group of Boston financiers has been running Harvard's enormous investment accounts. In that year, Paul C. Cabot '21 began the financial consulting which eventually brought him to the Treasurership in 1948. When Cabot retired in 1967, his deputy Treasurer, partner in business, and longtime associate George F. Bennett '33 took over Harvard's finances.

Now, as George Bennett prepares to leave the post, Harvard's money passes into the hands of another group of men. Bennett's successor, George Putnam '49, comes from essentially the same world of Boston high finance. But bred in a rival business circle, Putnam doesn't have any special allegiance to the policies of his predecessor.

And as Putnam himself points out, he comes from another generation. His views on investment and corporate responsibility are more liberal than Bennett's.

How much more liberal? Judging from his statements, Putnam's politics are similar to President Bok's.

Putnam said he backed Bok's decision not to sell the University's Gulf Oil Corporation holdings during the controversy that led to the week-long occupation of Massachusetts Hall last year.

Putnam also goes along with the Bok Administration policies on investment in southern Africa: He believes more can be accomplished by keeping American corporations involved in racist countries than by having them pull out.

But the biggest change that will occur as a result of the Putnam appointment will be a financial one. The initial cost to Harvard of investment management will probably skyrocket.

Under Bennett, Harvard paid only $100,000 annually for the services of the State Street Research and Management Corporation, Bennett's own firm. Now that Bennett is out, State Street wants to drop Harvard's accounts.

Putnam estimates that the price Harvard is likely to pay for another firm's aid will be something between one-sixth and one-quarter of 1 per cent of Harvard's endowment annually. In other words, Harvard's new Treasurer might find himself saddled with an automatic yearly cost of up to $4 million.