Art and the railroad (UK version)
Paul Marsh
NEW YORK TIMES in Omaha World Herald, 16 July 1995
"Buying art purely as an investment is an idea commonly frowned
upon in the art world today. But 21 years ago, when the British
Rail Pension Fund decided to invest 2.9% of its assets in
impressionist and old master paintings, old master drawings,
Chinese and European works of art, and antiquities, it was a
downright scandal.
"It was considered outrageous that railroad workers' money was
being invested in something as elitist as art, and Sotheby's, the
pension fund's advisor, was thought to have a conflict of
interest because most of the art was bought at auction.
"Over eight years, the pension fund paid about $64 million for
2,245 items. The fund later explained that its decision to
invest in art was a result of the poor economic conditions of the
time; 30 percent annual inflation, a falling stock market,
overstretched financial institutions and a higher dollar premium.
"In 1987, British Rail begal to sell its collections through
Sotheby's. It has been auctioning slowly, and the latest sale
was July 5 in London.
"A group of 27 old master paintings, which were part of Sotheby's
main old master paintings sale, performed well. They brought
$8.2 million, above the auction house's $7.2 million to estimate.
"David Adams, who oversees the pension fund's investments, said
the sale's results were about what was expected, given the quality
of the works and the curent market.
"Included in the auction were works that experts in the old
masters say reflect the safe buying patterns of the pension fund.
Because it was acquiring for investment purposes, the fund was
not adventurous, seeking paintings the managers thought would
remain fashionable."
[Various items were listed]
"The pension fund still has about a quarter of its collection."
Paul Marsh Omaha
On art: "Life begins at the centerfold and expands outward" --
Lisa Baker, Playboy's Miss November 1966
pma...@metro.mccneb.edu