Awards

Kelley School of Business Academy of Alumni Fellows - 1975

Honorary Degree - 1966

LL.D.

Doctor of Laws

School of Business Building dedication

Bloomington, Indiana

Presenter: Elvis Jacob Stahr, Jr.

Distinguished Alumni Service Award - 1953

About J. Dwight Peterson

J. Dwight Peterson was an investment banker who helped shape the state of Indiana. He began his career in 1919 with the old City Trust in Indianapolis as a bond salesman; five years later, he founded City Securities, which survived the Great Depression. In 1934, Peterson became president; in 1963, he was elected chairman and in 1979, he became honorary chair, still going to the office daily until a few months before his passing. During his time as a student at Indiana University, Peterson joined the Sigma Chi fraternity. He later became the fraternity’s national president, chairman and grand trustee. After graduating in 1919, his significant support of the university continued throughout his life. He served as a member of the university’s board of trustees from 1938-1945. He was also director, vice chairman and treasurer of the IU Foundation. In 1966, IU awarded him an honorary Doctor of Law degree.

Peterson built City Securities into the state’s largest independently owned regional investment firm that rose to prominence in financing Indiana schools, bridges, highways, courthouses, and hospitals. Peterson is credited with originating the concept in 1924 of using self-liquidating bonds to finance construction of university dormitories, gymnasiums, and other buildings. The bonds are called self-liquidating because money raised from dormitory fees or admission tickets is used to pay off the bonds. The use of these bonds has since been adopted throughout the nation. Before self-liquidating bonds, the only methods of financing such construction were to get the money from the state legislature or to attract private investments. City Securities helped many corporations get started, including Lilly Industrial Coats, Inc., Marsh Supermarket, and Mayflower Corporation. Peterson was a major force towards financing construction at public universities. The company handled Indiana’s two largest bond issues for public projects: the $280 million in bonds to finance construction of the Indiana Toll Road in 1962 and the $259 for toll road improvements in 1980.

Peterson was also the moving force behind the Public Employment Retirement Fund (PERF) in the days when little thought was given to pensions for state workers. Peterson was chairman of PERF from 1945-49 and served as investment chairman and vice-chairman of PERF from 1949-1990. He received the PERF Service Award in 1970. Peterson carried out a lifelong commitment to civic responsibilities by providing wise counsel to numerous non-profit groups, such as Hanover College where he served as a trustee from 1945-1981 and the Riley Memorial Association (today the Riley Children’s Foundation) where he served as a Director on the Board of Governors from 1941 to 1990 and as long-time treasurer. He also served on the board of directors of more than 55 companies.