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THE CARNEGIE FOUNDATION
FOR THE ADVANCEMENT OF TEACHING

SEVENTH ANNUAL REPORT

OF THE

PRESIDENT AND OF THE TREASURER

676 Fifth Avenue

New York City

October, 1912

,1.^ ^^'

I D. B. UPDIKE, THE MEEEYMOUNT PEE8S, BOSTON

\\\

OFFICERS OF ADMINISTRATION AND TRUSTEES

Heney Smith Pritchett President
Robert A. Franks Treasurer

Clyde Fdrst Secretary

TRUSTEES

William Peterson
David Starr Jordan
Charles Franklin Thwing

Hill McClelland Bell
William Lowe Bryan
Nicholas Murray Butler
Thomas Morrison Carnegie
Edwin Boone Craighead
William Henry Crawford
George Hutcheson Denny
Robert A. Franks
Arthur Twining Hadley
Alexander Crombie Humphreys
Henry Churchill King

Chairman
Vice-Chairman
Secretary of the Board

Abbott Lawrence Lowell
Thomas McClelland
Samuel Black McCormick
Samuel Plantz
Henry Smith Pritchett
Ira Remsen
Jacob Gould Schurman
William Frederick Slocum
James Monroe Taylor
Frank Arthur Vanderlip
Charles Richard Van Hise

EXECUTIVE COMMITTEE

Henry Smith Pritchett, ex officio
Nicholas Murray Butler Alexander Crombie Humphreys

Robert A. Franks Jacob Gould Schurman

Arthur Twining Hadley Frank Arthur Vanderlip

CONTENTS

REPORT OF THE PRESIDENT

PART I THE BUSINESS OF THE YEAR

PAGE

Endowment and Income 3

The Annual Meeting of the Trustees 4

The Executive Committee 6

List of Accepted Institutions g

Allowances granted during the Year 8

Summary of Pensions granted since the Beginning of the Foundation 11

The Exchange of Teachers between Prussia and the United States 16

The Publications of the Foundation 19

Pension Systems * 23

College Pensions 24

Pensions for Public School Teachers : State Systems : Virginia, Maryland,

Rhode Island, Wisconsin, New Jersey, New York 26

Proposed State Systems : Maine, Wyoming, California, District of Columbia,

Massachusetts, Georgia, Indiana, Michigan, Pennsylvania, New Hampshire 83

Local Systems: Kansas, Kentucky, Minnesota, Utah, Ohio, Illinois 36

Municipal Systems : Chicago, New York City, Boston, Philadelphisi, Detroit,

San Francisco 87

Industrial Pensions 44

Civil Service Pensions in New South Wales 48

The Civil Service Pension Act of South Africa 68

Contributory and Non-Contributory Pensions 69

Subsistence and Stipendiary Pensions 63

A Feasible Pension System for a College 65

A Feasible Pension System for Public Schools 70

The Pension System of the Carnegie Foundation 78

Six Years of Administrative Experience 81

Six Years of Financial Experience 85

The Educational Function of the Foundation 94

vi CONTENTS

PART II CURRENT EDUCATIONAL, PROBLEMS

College Entrance Requirements 101

^^.^ Admission to Advanced Standing 109

Medical Progress 122

University and College Financial Reporting 130

Advertising as a Factor in Education 133

Education and Politics 143

Sham Universities , 164

PART III

De Mortuis 165

REPORT OF THE TREASURER 175

INDEX 183

REPORT OF THE PRESIDENT

PART I

THE BUSINESS OF THE YEAR

REPORT OF THE PRESIDENT

To the Chairman and the Trustees qfthe Carnegie Foundation for the Advancement
of Teaching:

I HAVE the honor to present, in accordance with the by-laws, the Seventh Annual
Report of the Carnegie Foundation for the Advancement of Teaching, for the fiscal
year ending September 30, 1912. By the kindness of the executive committee I have
been permitted a leave of absence from December, 1911, to October, 1912. In conse-
quence the work of the Foundation has been restricted more closely to its immediate
problems. The present report is therefore devoted chiefly to these matters.

ENDOWMENT AND INCOME

The endowment of the Foundation has been increased during the fiscal year by two
million dollars. Mr. Carnegie transferred one million dollars to the trustees in Decem-
ber, 1911, and in May, 1912, he transfeired a similar amount. Including the transfer
of one million dollars in March, 1911, Mr. Carnegie has thus given to the Foundation
three of the five million dollars offered in his letter of March 31, 1908, in addition
to his original gift of ten million dollars on April 16, 1905.

The trustees, therefore, hold in trust at present about fourteen million dollars, the
thirteen millions given by Mr. Carnegie being in the fifty year five per cent bonds of
the United States Steel Coi-poration, the remaining nine hundred thousand dollars,
the result of accumulation from income since the establishment of the Foundation,
being invested in other securities, purchased upon the recommendation of the finance
committee. The funds and the form of their investment are given in detail in the
Report of the Treasurer.

During the fiscal year ended on September 30, 1912, the trustees were in receipt
of an income of $676,486.56. They authorized a total expenditure of $634,496.89.
This expenditure was distributed as follows:

Retiring Allowances and Pensions in Accepted Institutions

Officers and Teachers $388,338.27

Widows 53,646.37 $441,984.64

Retiring Allowances and Pensions granted to Individuals

Officei-s and Teachers 111,462.55

Widows 16,975.84 128,488.39

Expenses of Administration 36,949.31

Educational Investigation and Publication 27,124.66

THE ANNUAL MEETING OF THE TRUSTEES

The sixth annual meeting of the trustees was held on November 15, 1911, at the
offices of the Foundation, the chairman of the board. Principal William Peterson of
McGill University, presiding, and all of the trustees being present.

The trustees reelected to the executive committee for the statutory term of three
years the members whose terms expired at this meeting. President Hadley of Yale
University and President Schurman of Cornell University.

On the recommendation of the executive committee, the trustees repealed their
resolution of 1910, which authorized the committee to grant, in their discretion,
retiring allowances on the basis of twenty-five years of service which included note-
worthy presidential or other administrative work in a college or university.

At the meeting of the trustees on November 17, 1909, when retiring allowances
on the basis of twenty-five years of service were restricted to cases of disability, the
trustees instructed the executive committee to safeguard the interests of those whose
twenty -five years of service included service as a college president. The executive
committee gi"anted no allowances under these instructions, and at their meeting on
November 16, 1910, the trustees, at the suggestion of the committee, amended the
resolution so as to instruct the committee to safeguard the interests of presidents or
other administrators who had served education in a noteworthy and unusual way.
The committee found this also unsatisfactory, and, without having granted any allow-
ances under either form of the resolution, recommended its entire withdrawal. This
action was taken on November 15, 1911, the trustees at the same time approving the
reasons for the committee"'s recommendation, — that it was unwise in general to make
any exceptions to the rules, and unwise in particular to distinguish between executives
and other professors. Thus, this resolution, adopted in 1909 and amended in 1910, was
rescinded in 1911, without any allowances having been granted under it at any time.

The retiring allowances now granted by the Foundation in institutions upon the
accepted list are therefore based upon four simple rules, three of which cover cases
for which the grant is practically automatic. Thus, briefly, the executive committee
is empowered to grant a retiring allowance to :

First. Any person in an institution upon the accepted list who is sixty-five years
of age, and who has served not less than fifteen years as a professor, or not less than
twenty-five years as an instructor or as professor and instructor.

Second. Any person in an institution upon the accepted list who has served twenty-
five years as a professor, or thirty years as instructor or as professor and instructor,
and who is shown by a medical examination to be entirely unfitted by disability for
continuing the work of a teacher.

Third. A widow who has for ten years been the wife of any teacher in an institution
upon the accepted list who was in receipt of or was entitled to a retiring allowance
according to the regulations given above.

EXECUTIVE COMMITTEE 5

Fourth. The executive committee has the authority, if in its judgment it appears
advisable, to grant retiring allowances to professors who have research in view, and
have shown themselves unmistakably fit to pursue it. No retiring allowance has yet
been granted under this permission. Such allowances, in any case, will be an extremely
rare recognition by the trustees of original ability of the highest order, with the
expectation of unusual achievement to follow.

With regard to individual allowances outside of the accepted list, the executive
committee resolved on May 5, 1910, that it was inexpedient to grant such allowances
in the future.

THE EXECUTIVE COMMITTEE

Four meetings of the executive committee were held during the fiscal year: on
October 19 and November 15, 1911, and on May 9 and June 27, 1912. At the
meetings in May and June, which I was unable to attend. President Butler of Co-
lumbia University acted as chairman. Printed minutes of these meetings of the com-
mittee, with a detailed statement of the current receipts and expenditures of the
Foundation, were mailed to the trustees after each meeting. A list of the retiring
allowances and pensions voted by the committee during the fiscal year is given later,
on pages 8 and 9 of this i*eport.

The committee added no institutions to the accepted list during the year, resolv-
ing that all applications of institutions to be placed upon this list should await the
receipt of a report concerning the present and prospective financial obligations of
the Foimdation, based upon the actuarial study now in progress. A list of the seventy-
two universities, colleges, and schools of technology now on the accepted list is given
on pages 6 and 7 of this report. The committee was compelled, according to the lim-
itations of the charter of the Foundation, to decline the request of several bureaus
of the federal government that professors who go from the service of a college to sci-
entific service under the government should remain eligible for a retiring allowance
for a limited number of years.

The committee decided that the physical director of a college does not come within
the retiring allowance system unless he is a regular member of the faculty, and a
teacher of hygiene. It was decided also that the position of secretary to the president
of a university or college does not give the holder the status of an administrative
officer within the meaning of the rules of the Foundation.

LIST OF ACCEPTED INSTITUTIONS

Amherst College
Amherst, Massachusetts

Bates College
Lewiston, Maine

Beloit College
Beloit, Wisconsin

BowDoiK College
Brunswick, Maine

University of California
Berkeley

Carleton Colijege
Northfield, Minnesota

Case School of Appijed Science
Cleveland, Ohio

Central University of Kentucky
Danville

University of Cincinnati
Cincinnati, Ohio

Clark University
Worcester, Massachusetts

Thomas S. Clarkson Memorial School of
Technology
Potsdam, New York

CoE College

Cedar Rapids, Iowa

Colorado College
Colorado Springs

Columbia University
New York City

Cornell University
Ithaca, New York

Dalhousie College and University
Halifax, Nova Scotia

Dartmouth College
Hanover, New Hampshire

Dickinson College
Carlisle, Pennsylvania

Drake University
Des Moines, Iowa

Drury College
Springfield, Missouri

Franklin College of Indiana
Franklin

Grinnell College
Grinnell, Iowa

Hamilton College
Clinton, New York

Harvard University
Cambridge, Massachusetts

HoBART College
Geneva, New York

Indiana University
Bloomington

Johns Hopkins University
Baltimore, Maryland

Knox College
Galesburg, Illinois

Lawrence College
Appleton, Wisconsin

Lehigh University
South Bethlehem, Pennsylvania

Leland Stanford Junior University
Stanford University, California

McGiLL University
Montreal, Quebec

Marietta College
Marietta, Ohio

Massachusetts Institute of Technology
Boston

University of Michigan
Ann Arbor

MiDDLEBURY CoLLEGE

Middlebury, Vermont

University of Minnesota

Minneapolis
University of Missouri

Columbia

Mount Holyoke College
South Hadley, Massachusetts

New York University
New York City

Oberun College
Oberlin, Ohio

ACCEPTED INSTITUTIONS

Ukiversity of Pennsytvakia
Philadelphia

Univkhsity of Pittsburgh
Pittsburgh, Pennsylvania

Polytechnic Institute of Brooklyx
Brooklyn, New York

Princeton University
Princeton, New Jersey

Purdue University
Lafayette, Indiana

Radcliffe College
Cambridge, Massachusetts

RiPON College
Ripon, Wisconsin

University of Rochester
Rochester, New York

Rose Polytechnic Institute
Terre Haute, Indiana

Smith College
Northampton, Massachusetts

Stevens Institute or Technology
Hoboken, New Jersey

Swarthmore College
Swarthmore, Pennsylvania

University of Toronto
Toronto, Ontario

Trinity College

Hartford, Connecticut

Tufts College
Tufts College, Massachusetts

Tulane University of Louisiana
New Orleans

Union University
Schenectady, New York

Vassar College

Poughkeepsie, New York

University of Vermont
Burlington

University of Viroinza
Charlottesville

Wabash College
Crawfordsville, Indiana

Washington and Jefferson College
Washington, Pennsylvania

Washington University
St. Louis, Missouri

Wellesley College
WeUesley, Massachusetts

Wells College
Aurora, New York

Wesleyan University
Middletown, Connecticut

Western Reserve University
Cleveland, Ohio

Williams College
Williamstown, Massachusetts

University of Wisconsin
Madison

Worcester Polytechnic Institute
Worcester, Massachusetts

Yale University

New Haven, Connecticut

ALLOWANCES VOTED DURING THE YEAR

1. IN ACCEPTED INSTITUTIONS
RETIRING ALLOWANCES

Inatituticm,

Name

Academic Title

Date
Effective

Amherst College

Columbia Univebsity..

William Isaac Fletcher, m.a

JohnWilliamBurgess,fh.d.,ll.d.,
JUB.D ;..

Librarian .

Cornell Univerbitt..
Dartmouth Coixsok..,

Hekry Shalkr Williams, ph.d.
Frank Asbury Sherman, m.s

Rugrgles Professor of Political Sci-
ence and Constitutional Law..

Professor of Geology

Professor of Mathematics on the
Chandler Foundation

Franklin Collegx

Grinnell College

Harvard University.,

Thomas Wilson Dorr Worthkn,

A.M

Columbus H. Hall, a.m., d.d

Jesse Macy, ll.d

Charles Lorino Jackson, a.m

Silas Marcus Macvane, ph.d

Johns Hopkins University .
Knox Collegk

Arthur Searle, a.m

Edward Renouf, ph.d..

Thomas Rigney Willard, a.m.,

B.D

Cheney Professor of Mathematics

Professor of Greek

Professor of Political Economy...

Professor of Chemistry

McLean Professor of Ancient and

Modern History

Professor of Astronomy

Collegiate Professor of Chemistry

Dean and Professor of German ...

Massachusetts Institute, of Tech-
nology

Francis Ward Chandler..
Peter Schwamb ,

University of Michigan .

University of Minnxsota.,

Otis Coe Johnson, ph.o., a.m.*...
Martin L. D'Oooe, ph.d., ll.d.

LITT.D

Henry Turner Eddy, c.e., ph.d.
ll.d

Professor of Architecture

Professor of Machine Desigm and
Director of the Mechanical
Laboratories

Professor of Qualitative Analysis

Professor of Greek..

Professor of Mathematics and
Dean of Graduate School

Mount Holyoke Colleob ,

Oberlin College

University of Pennsylvania.

Arthur E. Haynes, m.s., u.ph.

BCD

Adam C. Hickman, ll.d

Louise Fitz Randolph, m.a

Frank Fanning Jewett, a.m.

Charles L. Doolittle, c.e., sc.d.
Morton W. Easton, m.d., ph.d....

University of Pittsburgh.,

Smith College

Vassar College

University of Virginia.,

Washington University.,

John Woodbridge Patton, a.m

Marsham Edward Wadsworth,

A.M., ph.d

Henry M. Tyler, d.d

Mary W. Whitney, a.m

Milton Wylie Humphreys, m.a.,

PH.D., LL.D

Isaac Kimber Moran

Ormond Stone, m.a

Marshall Solomon Snow, a.m.,

LL.D

Professor of Mathematics

Professor of Law

Professorof Archaeology and His-
tory of Art

Professor of Chemistry and Min
eralogy

Professor of Astronomy

Professor of Comparative Philo-
logy

Professor of Law

Dean of the School of Mines.

Professor of Greek ,

Professor of Astronomy ,

Professor of Greek

Bursar

Professor of Astronomy.

Professor of History and Dean of
the College

Yale University .

Franklin Bowditch

LITT.D

Dexter,

Assistant Librarian .

Nov. 1, IBH

July 1, 1913
June 13, 1913

Nov. 1, 1911

Nov. 1. 1911
July 1, 19U
July 1, 1913
Sept. 1, 1913

Nov. 1, 1911
Sept. 1, 1913
Nov. 1, 1911

June 14, 1913

Nov. 1, 1911

Oct. 1, 1911
Nov. 1, 1911

Oct. 1. 1913

Aug. 1, 1913

June 1, 1913
June IS, 1913

June 13, 1918

Sept. 1, 1913
Sept. 1, 1913

July 1, 1913
June 18, 1913
Sept. 1, 1913

Sept. 15, 1913
Oct. 1, 1913
Sept. 15, 1913

July 1, 1913
July 1, 1913

* Died June 6, 1912.

WIDOWS' PENSIONS

Institution

Cornell University

Harvard Universitt ,

Iin>LAKA University

McGiLL University

University of Michigan

University of Minnesota

University of Pennsylvania

Princeton University ,

Stevens Institutk or Technology.

Yale Untversity ,

Name

Husband's Title

Date
Effective

Mrs. George William Jones

Mrs. Henry Pickering Bowditch

Mrs. Thomas Dwioht

Mrs. Harold W. Johnston.
Mrs. Henry Taylor Bovey .

Mrs. Otis Coe Johnson...
Mrs. William S. Pattee.

Mrs. Henry W. Spangler.,

Mrs. Henry Nevius Van Dyke..
Mrs. John Bdrkitt Webb

Mrs. Edward Lewis Curtis.,

Professor of Mathematics....

Dean of Medical Faculty and Pro-
fessor of Physiology

Professor of Anatomy

Professor of Latin

Professorof Civil Engineering and
Applied Mechanics, and Dean of
the Faculty of Applied Science

Professor of Qualitative Analysis

Professor of Law and Dean of Col-
lege of Law

Professor of Dynamical Engineer-
ing

Registrar

Professor of Mathematics and
Mechanics

Holmes Professor of the Hebrew
Language and Literature, and
Acting Dean

Dec. 1, 1911

June 1, 1912
Dec. 1. 1911
June 18, 1913

Feb. S, 1912
July 7, 1912

Dec. 1, 1911

April 1, 1912
Jan. U, 1912

Mar. 18, 1912

Nov. 1, 1911

2. NOT IN ACCEPTED INSTITUTIONS
RETIRING ALLOWANCES

Institution

Name

Academic Title

Date
Effective

University of Illinois, Urbana....

Thomas J. Bdrrill, ph.d., ll.d

Vice-President and Professor of
Botany

Sept. 1, 1912

Professor of Mathematics and
Comptroller

Sept. 1, 1912

WIDOWS' PENSIONS

Institution

Name

Hu^and's Title

Date
Effective

Atlanta University, Atlanta,
Georgia

Mrs. Thomas N. Chase

Professorof Latin

May 24, 1919
May 24, 1013

June 19, 1912

Marion Military Institute,
Marion, Alabama

University of Nashville,
Nashville, Tennessee

Mrs. James D. Porter

Chancellor

p I

o '^

Total
Grani

FORTR

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GEOGRAPHICAL DISTRIBUTION OF ALLOWANCES GRANTED

State, Tkbritory,
OR Province

Number of Allowances granted

In Accepted
Institutions

In Unaccepted
Institutions

Total

Deaths

Temporary
Alloioances
Discon-
tinued

Number
of Allow-
ances in
Force

NORTH ATLANTIC DIVISION

Maine

New Hampshikk

Vermont

MASSACHUSETrs

Rhode Island

Connecticut

New York

New Jersey

Pennsylvania

Total

Maryland

District of Columbia

Virginia

West Virginia

North Carolina

South Carolina

Georgia

Florida

T6tal

UTUCKI
INESSEI
LBAMA
HISSIPI
3I8IANi[

Total

IIANA ..
INOI8 ..
^HIQAN
SCONSII
ITNEgOT
TA

mouri

STR Di
SRA8KA

ftaa....
Total

NT ANA
:X>RADO
.IFORNl
BOON...

Total

TARIO..
EBEC...

faSco

tV BRU]
INCE El

Total

68
18
24

1
24
56
13
26

246
SOUTH ATLANTIC DIVISION

5
11

4
6
7
4
3

7
18
4
6
7
4
3

4
3
4
2
3

64
SOUTH CENTRAL DIVISION

4
10

4
8
6
2

8
8
5
2
10

2
2

Louisiana

33
NORTH CENTRAL DIVISION

15
6
6

1
14
4
3
1
3

4
1
1
2
4
2
3
3
2

2
2

Indiana

Illinois

Michigan

North Dakota „.

Nebraska

Total

140
WESTERN DIVISION

4
8
3

1
4

California

Oregon

THE DOMINION OF CANADA

10
2

Prince Edward Island ...

NEWFOUNDLAND

Total

Grand Total

358

166

519

398

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3
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THE EXCHANGE OF TEACHERS BETWEEN
PRUSSIA AND THE UNITED STATES

For the academic year 191^13 the following American teachers have been assigned
to Prussian gymnasia:

Name

Institution from which
he comes

Subjects in which he
is a teacher

Gymnasium assignment
in Prussia

Makvin Foster Beesok

Meridian College, Me-
ridian, Mississippi

Engllnh

Victoria-Gymnasium,
Potsdam b, Berlin

Edward Mauhice Brigos

University of Kansas,
Lawrence

Latin and German

Gymnasium, Spandau
b. Berlin

Paul ElASTEauKo Bryan

Roxbury Tutoring
School, New Haven,
Connecticut

Englith

Bismarck-Oberreal-
schule, Stettin

ErXST GrOTTHItr FiSCHER

Michigan Agricultural
College, East Lansing

English and Modem
Languages

Not yet assigned. Ap-
pointed for Easter, 1913

Isaac Arthur Lee

High School, Maiden,
Massachusetts

English and Modem
Languages

Realgymnasium, Stettin

Sterling Andrus Leonard

State Normal School,
Milwaukee, Wisconsin

English

Oberrealschule, Danzig

Kemp Malone (reappointed)

Technological High
School, Atlanta,
Georgia

English and German

Realgymnasium, Erfurt

James William Norman

Howard College, Bir-
mingham, Alabama

Mathematics, Latin,
and Greek

Oberrealschule, Potsdam
b. BerUn

Thomas Emanuel Steckel

Tome School for Boys,
Port Deposit, Maryland

Modem Languages

Kaiser Wilhelms-Real-
gymnasium, Berlin

Winston Bryant Stephens

Holderness School,
Plymouth, New Hamp-
shire

German and Sciences

Gymnasium and Real-
gymnasium, Kolberg

The Prussian teachers with their assignments in the United States ai-e as foUows:

Name

Gymnasium from
which he comes

Subjects in which he is a
teacher

Assignment in this country

Anton Appkt.mann

Miinster

Modern Languages

Boston High Schools, Bos-
ton, Massachusetts

Erwin Gsell

Siemens Oberrealschule
Charlottenburg b. Berlin

Modem Languages

Worcester Academy,
Worcester, Massachusetts

Karl Guntermann

Kgl. Gymnasium,
Husum

English and History

Phillips Exeter Academy,
Exeter, New Hampshire

Heinrich Keidel

Kgl. Berger-Oberreal-
scnule, Posen

German and History

University of Wisconsin,
Madison

Wilhelm Kopas

Realprogymnasium,
Gnadenfrei

English,French, and Religion

Tome School for Boys,Port
Deposit, Maryland

Otto Michael

Hohenzollernschule,
Schoneberg b. Berlin

Modem Languages

Horace Mann School, New
York City

Max MirixER

Kgl. Gymnasium and
Realgymnasium, Thorn

English and French

Phillips Academy,
Andover, Massachusetts

EXCHANGE OF TEACHERS 17

Since the inauguration of the exchange in 1907, S2 American teachers from 23
states have been placed for a year in Prussian schools, and 30 I^ssian teachers have
spent a similar year in American institutions. The various Prussian gymnasia that
have received American teachers are those of Altona, Berlin, Bochun, Cassel, Charlot-
tenburg, Danzig, Erfurt, Frankfurt a. M., Grunewald, Halle, Harburg, Kiel, Konigs-
berg, Magdeburg, Potsdam, Saarbriicken, Schoneberg, Stralsund, and Wiesbaden. The
15 American institutions that have received Prussian teachers are: the Boston High
Schools, Clark College, Columbia University, the Hill School, the Horace Mann
School, the Mackenzie School, Massachusetts Institute of Technology, Pennsylvania
State College, Phillips Andover Academy, Phillips Exeter Academy, the University
of Chicago High School, the University of Wisconsin, Worcester Academy, the
Worcester High Schools, and Yale University. The states from which American
teachers have gone to I*russia are : California, Connecticut, Georgia, Idaho, Illinois,
Iowa, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Missouri,
Nebraska, New Hampshire, New Jersey, New York, Oklahoma, Pennsylvania, Rhode
Island, Vermont, Virginia, and Wisconsin.

The plan has unquestionably proven its value. The general advantages of inter-
national knowledge and experience need, of course, no argument. The particular
advantages of the present exchange of teachers are testified to by all that have been
concerned with it.

The several American universities that have received Prussian teachers write that
notwithstanding their familiarity with German culture and German educational
methods, the presence of these foreign teachers has been not only agreeable, but stimu-
lating to valuable new forms of contact with German ways of speech and German
ways of thought. These universities emphasize especially the care exercised by the
Prussian government in its selection of exchange teachers, and they conclude that
"there is no question whatever as to the success of the project, or as to the desira-
bility of its perpetuation and further extension."

To the participating colleges and secondary schools, both public and private, the
exchange is of even greater value, in its cosmopolitan stimulus and its illumination
of American conditions. I quote, with permission, comments ftt)m seveitd of these
institutions:

" I have been not only deeply interested in, but very much gratified by, our
experience with these men so far. They bring to the school a great stimulus,
specially to the teachers, and to the more serious and observant boy as well.
The difference in point of view, and in training, are both interesting and help-
ful, and tend to a broadening of the horizon and sympathies of boy and teacher
alike. We have been fortunate in the personality of both of the men who have
come to us from Prussia. It is a fine thing for boys to meet men who have been
trained under the severe and thorough methods of Germany, especially when
the command of English which these men have enables them to share with us
fully their views of the education and training of boys. This is quite as valuable

18 THE BUSINESS OF THE YEAR

to the boy as to the teacher. In this regard also this school has been very for-
tunate, because both the men who have come to us have a fine use of English."

"It is a great pleasure to me to be able to testify to the value we attach to the
presence of a Prussian exchange teacher in this school. Most certainly we de-
sire to continue the arrangement. The boys are enthusiastic over his work, and
his voluntary conversation classes are much overcrowded, and extremely popu-
lar. Apart from the work with the boys themselves, we find that our Prussian
exchange teachers have contributed much to the intellectual and social life of
the faculty. In my judgment any of our American schools would be justified in
making generous sacrifices in order to add a Prussian exchange teacher to their
force."

" We have been very well pleased with the teachers sent to us ft«m Prussia to
serve as exchange teachers. The influence upon the school has been excellent,
and the exchange teachers have rendered a full return in teaching service for
the money paid to them. We shall be very pleased to continue the practice of
receiving such teachers, and hope that you may be able to assign such a teacher
to us next year."

The value to the American teachers of entrance into the heart of the educational
system of Germany is outlined at length in the report of each retiuning appointee.
One such report has been printed by the Foundation, and may be had upon request.
Some representative quotations follow, from the report of Mr. Paul Jones of De Pauw
University, who spent the year 1911-12 at Frankfurb a. M.

" Before going to Germany I had heard a great deal of the cordial welcome
accorded the American teachers, and it suffices to say that I was not disap-
pointed in the reception I met. It was a pleasing surprise to find a great spirit
of friendliness and good fellowship existing among the teachers of a German
school, and it was a pleasure to become a member of such a happy circle. I was
greeted in a very friendly manner by the Director and all of the teachers, who
offered me every assistance. The teachers met in a social way, usually once a
week, and I was always asked to take part in these gatherings. In addition, I
was often invited to the homes of the teachers, which was a great advantage
in gaining an insight into German life. It was also a great privilege to be
invited to the meetings of the association of teachers of the higher schools.
This invitation included not only the business, but social meetings as well."

"In an official way I found the German equally friendly. I was regarded as
a member of the Kdlegium or faculty, in spirit if not in fact, and was asked
to all the regular monthly meetings. I was permitted to visit the classes of the
school at will, and the teachers were always ready to explain their methods
and the work. Any requests to inspect reports, work of the pupils, or class
books, were readily granted. A request for permission to visit other schools
met with the same ready response, and I was allowed to observe the work in
Gymnasien, Realgymnasien, Mittelschiden, Volksschiden, and a school for back-
ward children. In these schools I was given the same privileges as in my own
school. Eight of my twelve hours a week were devoted to the conversation

PUBLICATIONS OF THE FOUNDATION 19

classes. The other four houi*s were devoted to the regular English classes, a
visit being made to each class every fortnight."

" I became thoroughly convinced that the Germans excel us more as modem
language teachers than as teachers of any other branch. The beginning of a
study of a foreign language at so early an age gives them an advantage which
we cannot hope to overcome until we change our curriculum. The great factors
are imitation and memory work. The young pupils are often required to com-
mit whole pages of dialogue in French or English in order to secure the exact
use of idioms and colloquial expressions. In fact, in all subjects a great deal of
memory work is required. I think the most effective work I saw was done by
teachers who have partially adopted the direct method. The mother tongue
was used by them in connection with grammatical explanations, but was elim-
inated in all other cases."

" But it is not so much the German methods as the preparation of the teachers
that accounts for the excellency of the school system. Briefly, the preparation
of the German teacher is twelve years preparatory work, four years of univer-
sity study, one year as Seminarkandidat, and one year as Probekandidat. Able-
bodied men are required to serve one year in the army, so it can be seen that the
youngest teachers are at least twenty-five years of age. Very few are so young,
and many start at thirty. Such a preparation gives the teaching pi"ofession a
dignity and a thoroughness which it has not reached in America."

An official summary is now being made of the experiences of the Prussian teachers
in the United States, and the American teachers who have taught in Prussia are
forming an association for the discussion and study of the experience gained there.

The Foundation is happy to aid in the continuance and the development of the
exchange, and will be glad to send a copy of the printed plan to any one who is
interested.

The qualifications of the applicant for appointment as Prussian exchange teacher
should include good undergraduate training, ability both to read and to speak Ger-
man, successful experience in teaching, and, if possible, the previous completion of
some graduate study.

Applications for appointment to teach in Prussia, or requests from schools for a
Prussian teacher, should be in the hands of the Foundation not later than the first
of May prior to the year for which the assignment is desired. The assignments of
both Prussian and American teachers are made about the first of August.

THE PUBLICATIONS OF THE FOUNDATION

The object of the Foundation, as outlined in its Act of Incorporation, being both
to provide retiring allowances and pensions, and "in general, to do and perform all
things necessary to encourage, uphold and dignify the profession of the teacher and
the cause of higher education," the provision of allowances and pensions has been

m THE BUSINESS OF THE YEAR

conducted from the beginning as a means to the improvement of educational condi-
tions, and the trustees, from time to time, have authorized the study by the Foun-
dation of various special educational problems, as these bear upon the functions of
the Foundation in the provision of retiring allowances, or its wider efforts in behalf
of the general advancement of teaching. Each year, therefore, the Foundation has
issued one or more educational publications. Others that may be expected are
mentioned in connection with the Educational Function of the Foundation, on
pages 94 to 98 of this report.

The following publications, more fully described below, were issued during the
year 1911-12:

The Sixth Annual Report of the President and of the Treasurer, 15 Jt- pages.
Bulletin Number Six. Medical Education in Europe, 3Ji,l 'pages.

A complete list of the publications hitherto issued by the Foundation comprises:

THE ANNUAL REPORTS

These contain in each instance : (I) An account of the business of the year, including
the meetings of the trustees and of the executive committee, the admission of institu-
tions to the accepted list, the voting of retiring allowances, and the general admin-
istration of the trust; (II) sundry results of inquiry into educational problems that
affect the advancement of teaching. Some reference to these records is given in the
following summaries; (III) brief biographies of recipients of retiring allowances who
have died during the year; and (IV) the report of the treasurer.

The First Annual Report of the President and of the Treasurer, 8 j^ pages. 1906.
Including an historical sketch of the Foundation; a study of army and professorial
pensions; and a statement of the general policy, the educational standards, and the
administrative rules of the Foundation. (Out of print.)

The Second Annual Report of the President and of the Treasurer, 12 j^ pages. 1907.
Including discussions of the place of the college and the university in the United
States, the function of college entrance requirements, the forms of denominational
control, the relation of the Foundation to denominational and state institutions, and
the ratio between institutional cost and efficiency. {Out of print.)

The Third Annual Report of the President and of the Treasurer, 211 pages. 1908.
Including academic and financial data concerning institutions on the accepted list;
and discussions of the problems of financial reports, pensions, and insurance ; of the
governmental and political aspects of tax-supported institutions; of entrance re-
quirements, instruction, higher and professional education, and of the influence of
denominational boards of education.

The Fourth Annual Report of the President and of the Treasurer, 201 pages. 1909.

PUBLICATIONS OF THE FOUNDATION XI

Including discussions of the rules for retirement, of agricultural education, of college
administration and advertising, and complete records of the practice of the institu-
tions on the accepted list of the Foundation in admitting regular, conditioned, and
special students.

The Fifth Annual Report of the President and of the Treasurer, 113 pages. 1910.
Including discussions of the relation of colleges to professional, technical, and in-
dustrial education, to secondary schools, to the training of teachers, and to state
supervision ; together with the comments of Oxford tutors on American education
as represented by Rhodes scholars.

The Sixth Annual Report of the President and of the Treasurer, 15 J^ pages. 1911.
Including discussions of the application of the rules of retirement, and the obliga-
tions and influences of p)ension systems; together with a critical and constructive
survey of education from a national point of view, as this is reflected in legislation,
state systems, regional conditions, the relations of school, college, and university,
in professional and graduate study and reUgious education, and in the problems of
political and alumni influence.

The Seventh Annual Report of the President and of the Treasurer. 1912.

THE BULLETINS

Number One. Papers Relating to the Admission of State Institutions to the Sys-
tem of Retiring Allowances of the Carnegie Foundation, 4^ pages. 1907.
Including arguments in favor of the admission of state and provincial universities
to the benefits of the Foundation, and a statement by the president of the admin-
istrative and financial problems involved. {Out of print.)

Number Two. The Financial Status of the Professor in America and in Germany,
101 pages. 1908.

A study of the expenditure for instruction in one hundred and fifty-six American
institutions, with comparisons of the maximum and average salaries, the average
age, the amount of teaching, the appointment, tenure, and retirement privileges
of professors in the United States and Canada and in Germany. {Out of print.')

Number Three. Standard Forms for Financial Reports of Colleges, Universities,
and Technical Schools, 37 pages. 1910.

Containing twenty-five typical blank forms for the public reporting of the financial
receipts and expenditure of universities and colleges, with an introduction recom-
mending the modification of current practice in directions commended by edu-
cators, accountants, and financiers.

Number Four. Medical Education in the United States and Canada, 3^6 pages.
1910.

Sf THE BUSINESS OF THE YEAR

A comprehensive report to the Foundation, by Abraham Flexner, on medical edu-
cation in the United States and Canada, with regard to the course of study, financial
aspects, medical sects, state boards, post-graduate schools, and other special forms
of medical education; with descriptive and tabular accounts of all of the medical
schools throughout the United States and Canada; and a general plan for reconstruc-
tion, with an introduction by the president of the Foundation.

Number Five. Academic and Industrial Efficiency, 13^ pages. 1910.
» A report to the Foundation, by Morris Llewellyn Cooke, on the teaching and
research in physics in eight American universities, colleges, and technical schools,
with an endeavor to estimate efficiency in organization, teaching, research, the use
of buildings, and in financial, departmental, and student administration.

Number Six. Medical Education in Europe, 357 pages. 1912.

A report by Abraham Flexner concerning the contemporary condition in Germany,
Great Britain, and France, of the basis of medical education, the preliminary and
the medical sciences, clinical instruction, curricula and examinations, post-graduate
education, the medical education of women, the number and distribution of physi-
cians, the financial aspects of medical education, and the problem of sects and quacks ;
together with an introduction by the president of the Foundation, contrasting these
European conditions with those in the United States and Canada.

OTHER PUBLICATIONS

A Plan for an Exchange of Teachers between Prussia and the United States,
7 pages. 1908.

Rules for the Admission of Institutions and for the Granting of Retiring Allow-
ances, 16 pages. 1906. Revised, 1^ pages. 1910.

An American Teacher's Year in a Prussian Gymnasium, 37 pages. 1911.

All of the publications of the Foundation are sent regularly to all universities and
colleges in the United States, Canada, and Newfoundland ; and to a selected list of
libraries and representative educators throughout the world. The distribution has
been wide and without charge, except in the case of Bulletins Number Four and Six,
for which fifteen and seventeen cents, respectively, have been asked for postage. The
demand, however, is so large that it cannot be met in every instance. In case of
special requests, a statement of the use to which the publications are to be put will
be appreciated. In general, the publications of the Foundation may be constilted in
most university, college, and public libraries.

As indicated in the lists given above, the First and Second Annual Reports, and
Bulletins Number One and Two, are now out of print, and cannot be supplied.

PENSION SYSTEMS

In the last annual report I discussed at some length, under the title "Moral Influ-
ence of a Pension System," the general arguments in favor of pensions. In the'interval
there has been a rapid development of pension systems both for industrial workers
and for public school teachers. Legislation looking to the establishment of pensions
for public school teachers has been enacted by several states. In still other states
the legislature has authorized cities, on their own initiative, to inaugurate pension
systems. There follows a comprehensive statement of the legislation which has been
had and the operation of these systems up to the present time.

It seems pai-ticularly needful at this moment to present such a view of the whole
field, for most of these pension systems have been undertaken with the most casual
actuarial advice. In this respect the action of our American legislatures has shown
marked contrast to the legislative action taken in most of the British dependencies
and in the European countries, where in nearly all cases careful actuarial computa-
tions have preceded the enactment of legislation. It is most important that states
inaugurating such pension systems should clearly understand at the beginning the
nature of the problem which they undertake. Otherwise, disappointment will follow
both for the teacher and for the state officials. The experience of the past in pensions
has made evident the soundness of a few fundamental principles, but above all this
it has made clear the necessity for a strict actuarial investigation of every part of
the problem. The following carefully prepared survey of recent pension legislation
and of recent pension experience is therefore presented in the hope that it may serve
both as a warning and as a guide to those who are dealing with these matters, whether
as possible beneficiaries or as those responsible for legislation.

It should be borne in mind, as is clearly pointed out later in these pages, that a
pension system foimded upon a free gift by one individual rests upon an entirely dif-
ferent basis from a pension system inaugurated by a state in the interest of its ser-
vants. That which may be desirable and feasible in small groups of teachers scattered
thru many colleges may be entirely undesirable and impossible in large state systems
of teachers working under a general system of state employment. At the present day
the consideration of pensions is being urged most strongly both ftx)m the standpoint
of social justice and from the standpoint of increased efficiency of commercial and
industrial organizations. The tendency is to enter into such plans upon insufficient
data, and to set up systems which can only invite disaster and disappointment. Before
any state approves a system of pensions for its teachers, the data for a complete study
of the problem should be gathered and the best possible advice secured. The actu-
arial point of view is not the only point of view to be considered in the establish-
ment of a pension system, but it is an indispensable point of view. Those concerned
in these problems cannot fail to find in the experiences recorded in the following
pages — such, for example, as those of the pension system of New South Wales, of the

24) THE BUSINESS OF THE YEAR

New Jersey teachers' system, and other experiments there described — information of
the most direct and practical significance.

College Pensions

At the time of the establishment of the Carnegie Foundation, five of the insti-
tutions then admitted to its privileges, Columbia, Cornell, Harvard, McGill, and
Yale Universities, had in force retiring allowance systems of their own. Two insti-
tutions since admitted to the accepted list, the Universities of California and Toronto,
had also inaugurated retiring allowance systems. Except for continuing allowances
to those retired before the Foundation existed, most of these separate systems are
no longer in operation, the Foundation now carrying the load hitherto borne by the
university funds. These systems were sometimes quite different from that afterwards
put in operation by the Foundation. McGill University had not formulated general
rules, each application for an allowance being treated as an individual case. The
system of the University of Toronto was little more than a plan for compulsory sav-
ing; and the Cornell system contained a contributory feature. The Harvard rules
approximated rather closely to those of the Foundation, but the age of retirement was
fixed at sixty years after twenty years of professorial service. The Columbia statutes
simply provided for retirement at half pay for any professor over sixty -five years of age
who had served fifteen years. None of these institutions had continued these activities
long enough to throw much light upon the conduct of such systems or to appreciate
the load they had assumed.

Since the establishment of the Foundation, several institutions of higher education,
ineligible to the accepted list on account of legal connection with a religious denomi-
nation, have established retiring allowance systems for their professors. Haverford
College, all the members of whose board of trustees, technically styled board of man-
agers, are required by a by-law of the board to be members of the Religious Society of
Friends, has received gifts of about $150,000 to inaugurate such a system. No allow-
ances have yet been granted from this fund, and the interest is being added to the
principal. The rules are almost identical with those of the Foundation, except that
the maximum for a retiring allowance is $3000. Brown University, a majority of both
of whose governing boards are required by its charter, granted in 1764, to be Bap-
tists, is accumulating a new fund of $1,000,000 for various educational purposes, one
of which is to be the endowment of a retiring allowance system. Within the last year
the University of Chicago, whose president and two-thirds of whose trustees are re-
quired by charter to be Baptists, has set aside a sum which eventually will be not less
than $2,000,000, in order to inaugurate a system of retiring allowances. The statute
for granting the allowances and pensions coincides almost exactly with those in force
in the Foundation. There are only two divergences from the rules of the Foundation :
one in which it is stated, " The obligation of the university to pay retiring allowances

PENSION SYSTEMS 25

shall be neither more nor less than its obligation to pay salaries to persons in active
service, so that if misfortune should compel a percentage reduction in salaries, retir-
ing allowances may be reduced in the same proportion ; " the other is a declaration
that, while the trustees reserve the power to alter the statutes for granting retiring
allowances, no alteration shall have any effect upon persons who have come within the
purview of the statutes before the alteration is made. The provision that retiring
allowances impose no greater moral obligation upon the institution granting them
than is imposed by salaries is a frequent clause in pension statutes, almost the exact
phraseology of the statute of the University of Chicago being found, for example,
in the former retiring allowance system of Harvard University, and in the rules of
the pension fund established by the International Harvester Company.

The University of Wooster has undertaken to raise the sum of S200,000 in five
years, for the Retiring Allowance Fund for the Advancement of Teaching of the Uni-
versity of Wooster. The Presbyterian Synod of Ohio has taken up the work, and
has appealed to all the Pi-esbyterian churches in Ohio to contribute two dollars for
each member. One year has elapsed since the undertaking began, and $33,000 has
been raised, together with a pledge of $10,000 to be paid when $90,000 is in the
fund. The plan is for retiring allowances at the age of sixty-five years, or after twenty-
five years of service, the annuity to be one-fortieth for each year of service up to thirty
years. A similar pension is to be given for disability, and there are to be widows'
pensions and provision for orphans. No endowment of this growing and active insti-
tution could be more helpful than this fund for teachers' pensions. It will be a serious
mistake if the friends of the institution, who have given generously for endowment
funds and buildings, shall withhold support from that form of endowment which
most directly touches the well-being and contentment of the teacher.

Many of the institutions upon the accepted list of the Foundation have a consid-
erable number of teachers who do not come within the operation of the rules of the
Foundation. Columbia University, thru the board of trustees of its Teachers College,
has provided retiring allowances for certain of the teachers in that college and its
schools who are high in rank and who are not eligible for the benefits of the Foun-
dation. This system takes the form of a fund established by the trustees and increased
by the annual contribution of two per cent of the salary of each eligible teacher who
chooses to seek the benefits of the system. The teacher is eligible to retirement upon
his own request, at fifty years of age, after fifteen years of service, at fifteen per cent
of his average salary for the last five years; this allowance is increased by two and
a half per cent of this average salary for each additional year of service after the
teacher becomes eligible to retirement, but the allowance is in no case to exceed fifty
per cent. Any contributor who withdraws from service before retirement receives back
his accumulated contributions, and his legal representatives receive them in the event
of his death before retirement ; in both cases with four per cent interest. It is expressly
stipulated that a retiring allowance may be terminated at any time by the committee

26 THE BUSINESS OF THE YEAR

of the board of trustees on the retirement of teachers. The serious difficulty with such
a retirement fund, if it were widely extended, is that it is voluntary. Experience has
proven that voluntary pension systems are inadequate. Only a fraction of those entitled
to contribute ever elect to do so ; for the rest there remain the same personal disti"ess
and the same administrative difficulties that a pension system is instituted to remedy.
A detailed account of the retirement funds in German universities was published
by the Foundation in its Second Bulletin in 1908. During the last year a graduate
of Baliol College gave to the University of Oxford a small sum as the nucleus of
a retirement fund for its professors. Hitherto the two gi-eat English universities have
not felt a pressing need for pensions, as under their system the duties of an aged
teacher could easily be assumed by others without necessitating his retirement.

Pensions foe Public School Teachers: State Systems

Only six states have pension systems for public school teachers which may properly
be denominated state- vride. In most states the utmost that has been accomplished is
the enactment of laws permitting the larger cities to create some kind of pension fund;
this, of course, leaves unprovided the more necessitous cases of rural school teachers.
Many states, unfortunately, have not even permitted their large cities to provide
pension funds for teachers.

The six states that have thus far advanced to a pension provision for all of the
public school teachers within their limits are Virginia, Maryland, Rhode Island, Wis-
consin, New Jersey, and New York.

The Virginia law, which in its present form was enacted in 1910, vesting the con-
trol in the state boai'd of education, only pledges the state to contribute $5000 a
year. One per cent is deducted from the salaries of the teachers, who are entitled to
retirement upon disability after twenty years of service, and to regular retirement
after thirty years of service, upon reaching the age of fifty-eight, if a man, and fifty,
if a woman. The pension is to be one-eighth of the average salary for the last five
years, but no pension is to exceed $500 a year. In 1912 the pension roll contained
310 names, involving an expenditure of about $41,000. The number of public school
teachers in Virginia is 10,443. As the receipts of the fund were only $38,500, made
up of $5000 from the state, $32,000 from assessments, and $1500 from the income
on invested funds, the board of education has already been forced to pro-rate the
pensions.

Maryland enacted in 1908 an invariable pension law for the public school teachers
of the state, without contributory features, up to the amount of an annual appropria-
tion by the state of $25,000. Teachers who have taught twenty-five years in Mary-
land, and are sixty years of age, or are permanently disabled, and are without com-
fortable means of support, are entitled to pensions, which are in all cases to be :
a year. Maryland pubhc school teachers number 5514.

PENSION SYSTEMS 27

Rhode Island has a pension law, enacted in 1907, for which the state made in 1912
an appropriation of $33,000. Pensions are granted to all teachers sixty years of age,
who have been in service for thirty-five years, twenty-five of which, including the fif-
teen years immediately preceding retirement, have been in Rhode Island. The pension
is to be one-half of the average salary for the last five years, but is never to exceed
$500 a year. In 1912 the 2371 teachers in the state furnished 89 to this roll; the
average pension was $336.68.

The 1911 legislatui*e of Wisconsin, where teachers' pensions had been previously
confined to the city of Milwaukee, established a pension system for the entire state,
which has 14,729 teachers. The state contributes annually ten cents for every person
of school age in Wisconsin, and assesses contributions of one per cent upon teachers in
the first ten years of their service, and two per cent from their tenth to their twenty-
fifth year of service, the assessments not to exceed $15 and $30 a year, respectively;
after twenty-five years of service there is no assessment. Teachers in service before
September 1, 1911, have an election as to whether they shall be assessed or not, and
accrued liabilities are to be deducted from the beneficiary's initial payments. Pensions
are granted on a strict service basis after twenty -five yeai"s of service, eighteen years of
which must have been in Wisconsin, or upon disability after eighteen years of service.
The pension is $12.50 for each yeai* of employment, but no pension is to- exceed $450
a year. As the plan is a contributory one, there is a withdrawal feature, any teacher
leaving the service being entitled to receive back one-half of his contributions, with-
out interest.

New Jersey

The state of New Jersey has two pension systems in operation, both state- wide. One
of them is a law, first enacted in 1903, and altered in 1906 and 1912, by which the
local school authorities are required to pay out of the local school funds a pension
amounting to one-half of the average annual salary for the past five years to any
teacher, principal, or superintendent who has been employed for thirty-five years "in
the public school work," provided that twenty years of this service have been passed
in the schools of the local educational authority by whom the pension must be paid.
The other system is a fund supported by compulsory deductions from the teachers'
salaries, out of which moderate annuities are paid to teachers who may become dis-
abled after twenty years of service.

The history of this fund began in 1896, when the legislature of New Jersey
constituted the board of trustees of the Teachers' Retirement Fund. This board
is at present composed of the commissioner of education ex-officio^ three trustees not
teachers, appointed by the governor of New Jersey, and five trustees elected by the
teachers of the state. Entrance into this fund was voluntary, all teachers then in the
service being required to make their election as to entrance within three months
after the passage of the act, and all teachers beginning their service being required

9B THE BUSINESS OF THE YEAR

to make such election within a year after their employment. Those entering con-
tributed one per cent of their salaries, and were eligible to retirement for disability
after twenty years of service in the public schools of New Jersey. The annuity was
to be one-half of the average annual salary for the last five years of service, no annu-
ity to be less than $250, nor more than $600, raised by later legislation to $650;
and if any teacher was retired within five years after the passage of the act, he must
add to his contribution already made additional sums sufficient to make his total
contribution equal twenty per cent of his last annual salary. One-half of his total
contributions had to be returned to any teacher resigning from the service after hav-
ing contributed for five years. The annuities were to be paid in quarterly instalments,
and if there were insufficient resources in the funds to pay the aggregate amount of
any instalment, the state treasurer was to register the warrants thus necessarily unpaid,
and as money was received by the fund all warrants were to be paid in the order of
their registration, with interest at five per cent, until the fund was again abreast of its
liabilities.

In the year of the enactment of this law enough teachers joined the fund to make
the contributions amount to $11,000. In the following year the regular contribu-
tions of one per cent, with the additional contributions of twenty per cent of the last
annual salary of those desiring immediate retirement, amounted to nearly $15,000.
In the succeeding year the total contributions were $12,000. Annuities began to be
granted in the second year of the fund's operation and amounted to $2400 ; in the
following year the outstanding annuities amounted to $5400.

Within three years after the creation of the fund in 1896 the legislature of 1899
deemed it wise to amend the law. The fund was extended to teachers in the state
normal and reformatory schools, and made specifically to apply to all school and
supervising principals, and, by later legislation, to superintendents. The other amend-
ments were all in the direction of greater financial caution. The provision that a
teacher retiring within five years after the passage of the act of 1896 was to make
up his contribution to equal twenty per cent of the last annual salary was extended
to all teachers retiring at any time and after any period of contribution. The board
of trustees was authorized to suspend an annuity if it became satisfied that an annu-
itant was capable and had the opportunity of earning a livelihood. By the legislation
of 1907 this is confined to cases where teachers are actually in active employment.
The income of the fund was somewhat augmented by extending the deduction of
one per cent to the annuities granted, a somewhat curious piece of circumlocutory
legislation. The naive assumption of the previous act, that if a deficiency occurred
in the fund it would probably be made up and that the full instalment of pensions
could gradually be paid in full with interest in order of their falling due, was aban-
doned, and instead it was provided that in case of a deficiency at any quarterly
instalment, all the quarterly annuities due were to abate pro rata. This would enable
the fund to start paying anew each quarter, whereas the original legislation, in case

PENSION SYSTEMS 29

of a calamity, would have made possible the spectacle of some annuitants receiv-
ing nothing, while the fund was engaged in satisfying fully the long past instalments
of older annuitants.

By the time the legislature of 1903 convened, the experience of the fund for six
years was available. The total annual contributions had practically not increased, hav-
ing amounted to only $16,000 in the previous fiscal year. The value of the annuities
for which the fund was liable had grown to nearly $13,000 a year. It was evident that
unless changes were made, the time would soon come when the annuity liabilities would
exceed the contributions. The legislature of 1903 therefore changed the retirement
laws in several important respects. In the endeavor to enlarge the number of contri-
butions to the fund, the restriction as to the period in which the teacher was to make
his election to join disappeared, but no teacher was to be permitted to enter after
fifteen years of service without passing a satisfactory physical examination. For teach-
ers already contributing arid for new entrants into the fund in their first ten years
of service, the rate of contribution was to continue at one per cent of their salaries,
as was to remain the deduction from annuities, but for new entrants who had taught
more than ten years the rate of contribution was raised to two per cent.

The effect of this legislation of 1903, altho not great, was immediately perceptible.
The contributions rose in the then current fiscal year to $22,600, but the effect was
exhausted by this increase, and in the thi"ee succeeding years the total of the contri-
butions remained stationary around this amount. The total value of the outstanding
annuities rose also in the fiscal year 1902-03, reaching $16,800, but they did not
remain stationary, the value mounting up year by year to $21,000, to $26,000, and
to $32,000. With contributions, less the return to teachers who resign, standing at
$21,000, or $11,000 less than the liabilities, the fund in 1906 faced a crisis.

The legislature of 1906 met this situation by a thorough reorganization of the fund.
The fund was changed from a voluntary to a compulsory one, all teachers entering
the service after January 1, 1908, being compelled to assent to the deduction from
their salaries. The rates of contribution were radically changed, being fixed at two
per cent during the first ten years of service, at two and a half per cent between ten
and fifteen years of service, and at three per cent for all periods of service over fifteen
years, but no teacher was to contribute more than $50 in any one year, or more than
$1000 altogether. Total contributions must, however, be made up to equal one year's
annuity before such annuity would be granted. The general character of the fund
was also modified by abolishing the rule returning to teachers who resign one-half
of their contributions; there was to be no return of contributions. This legislation
seemed to its framers to put the fund on so sound a basis that there was no necessity
for contemplating any deficiency ; the provision concerning the abatement of annu-
ities was therefore omitted. This reorganization came just in time to save the fund
from collapse. The annuities, which the act hardly increased, rose steadily in the year
in which this legislation was enacted and in the following two years to the figures

80 THE BUSINESS OF THE YEAR

$45,000, $57,000, and $68,000, respectively. If the new act had not been passed,
there is no reason to suppose that the total contributions would not have remained
at $21,000. The increased rate of contributions, even in the year in which the act was
passed, raised the receipts to $35,000, and in the following year to $53,000, which,
altho still leaving a deficit, reduced it to smaller dimensions. In 1908-09, when the
effect of the compulsory feature began to be felt in full, the contributions jumped to
$93,000, overtopping the liabilities by $25,000.

For the fiscal year 1910—11 the total receipts of the fund from contributions were
$166,000, and its total annuity liabilities were $120,000. The fund, therefore, is for
the present secure, altho it should be noted that the state, in appropriating $1500 for
the annual expenses of the board of trustees, expressly declares "that such expenses
shall be in no wise a guarantee on the part of the state as to the security, conditions,
or prospects of the funds."

The salient facts in the history of the New Jersey teachers' fund are, first, the small
proportion of teachers comparatively that entered into a voluntary fund even when
constructed upon a liberal basis, and second, the speedy inadequacy of a one per cent
contribution to maintain the moderate annuities paid by the fund. The fact that this
rate of contribution could be assessed only upon those who came into the fund volun-
tarily does not alter materially its significance; if such a rate had been compulsory
upon all teachers, the annual deficiency would not have been long postponed.

The characteristic features of the fund as now constituted are that no part of the
contributions are returned in case a contributor resigns or dies before receiving an
annuity, all contributions being solely for the benefit of those who become annu-
itants; and that the fund is solely upon a disability basis, superannuation being
conceived as a disability. A distinctive feature of interest is the grading of the rate
of contributions, with certain maximum limits, according to the approach of the
contributor to the pensionable period. This is in practice a rough approximation to
grading of contributions according to salary, as salaries have a tendency to rise with
years of service, but it is only a rough approximation. The democratic composition
of the board of trustees should also be noted.

New York

The state of New York has two pension systems, one for teachers in any institution
maintained and supported by the state, the other for teachers in the public schools.
Altho the latter system at its inception does not include the teachers in those coun-
ties, cities, and districts which have been permitted by law to establish separate pen-
sion systems of their own, the law establishing it is so framed that eventually the
system may embrace all the public school teachers in the state.

The first system, that for the teachers in the colleges, schools, and institutions main-
tained and supported by the state, was enacted by the legislature of 1910, and amended

PENSION SYSTEMS 31

by the legislature of 1912. It provides for an annuity equal to one-half of the final
salary, not to exceed $1000 nor to be less than $300, to every teacher who has served
for ten years in the institutions maintained by the state of New York, and has served
in any college, academy, or public or private school in New York or any other state
or country for thirty years. In case of disability the latter period is reduced to twenty
years.

As originally passed, the teacher must have attained to the age of seventy years, or
in case of disability to sixty-five years, and the ten years of service in the state institu-
tions must have been the ten years immediately preceding retirement. The amend-
ment of 1912 eliminates these requirements.

This pension system is non-contributory, the cost of the annuities being borne
entirely by the state treasury. The appropriation for this purpose was $4900 in
1911, and $7000 in 1912.

The other pension system, that for public school teachers throughout the state of
New York who are not teaching in counties, cities, or districts which by special laws
have retirement systems of their own, was enacted by the legislature of 1911.

This law creates a state Teachers' Retirement Fund Board of five members, to be
appointed by the state commissioner of education for the term of five years, one
member retiring each year, the members to be removable by the commissioner upon
written charges after hearing. At the time of appointment one member must be a
superintendent of schools in a city or district, one member must be an academic
principal, and one member must be a teacher engaged in teaching in an elementary
school. At least one of the five members of the board must be a woman teacher. The
expenses of the members of the board are paid by the state, but they serve without
compensation ; the board, however, has a secretary with a salary of $2000 a year. The
treasurer of the state is the treasurer of the board and the custodian of its funds, and
pays the annuities granted.

Retirement applies to those who have taught in public schools for twenty-five
years, the last fifteen years of which shall have been in the public schools of the state
of New York affected by the law. In case of disability the entire service required in
public schools is fifteen years, the last nine of which must have been in the schools
under the operation of the law. The annuity shall be one-half of the salary paid to
the teacher at the time of retirement, but no annuity shall exceed $600.

To support this pension system, the state reads into every contract for the employ-
ment of a teacher in any public school outside of the excepted coimties, districts, and
cities, a provision deducting one per cent of the salary of the teacher, which de-
duction it is made the duty of the authorities of the school or district to forward
to the state treasurer upon each pajrment of salary. Any teacher in the schools and
institutions within the statute who is employed under a contract entered into prior
to the taking effect of the statute may elect to contribute in like manner one per cent
of the salary received, and shall thereby become entitled to all the benefits of the law.

^ THE BUSINESS OF THE YEAR

A teacher, however, shall not be entitled to an annuity who has not contributed
to the retirement fund " an amount equal to at least thirty per centum of his annu-
ity." But by making up the said amount by a cash payment, or by the withholding
of the annuity until the payments withheld make up this required amount, the teacher
shall become entitled to an annuity.

The public school teachers in any county, city, or district to which the act does not
now apply by reason of their possessing a special retirement fund of their own under
authority of law, may, by presenting to the Retirement Board a petition signed by
two-thirds of their number, be included within the pension system administered
by the state board. In this case all the funds of such special retirement system must
be turned over to the state treasurer for absorption by the state retiring fund, and the
state thereupon assumes the liability to pay all existing annuities granted by the
local retirement system. The teachers of the county, city, or district thereby included
within the state retirement provision of course become subject automatically to the
deduction of one per cent from their salaries. The exceptions to the law are the coun-
ties of Westchester, Nassau, and Saratoga, and the cities of New York, Buffalo, Ro-
chester, Syracuse, Troy, Albany, Elmira, Schenectady, Cohoes, Poughkeepsie, Water-
vliet, Yonkers, and Mount Vernon. All of these localities have their own pension sys-
tems. The teachers in these cities number 22,943, leaving 22,131 to be affected by the
state law. This includes several hundred teachers each in the counties of Westchester,
Nassau, and Saratoga, who should be deducted from the state teachers and added to
those in cities possessing pension systems of their own.

The Retirement Board is authorized to receive for the fund not only the contribu-
tion of one per cent of the salaries of teachers within the act, but also "all donations,
legacies, gifts, and bequests, which shall be made to such fund," and "appropriations
made by the state legislature from' time to time to carry into effect the purpose of
such fund."

The act must contemplate large annual appropriations by the legislature of New
York from the public treasury, because three provisions of the pension system cre-
ated by the act render it extremely improbable that the fund will ever be able from
the teachers' contributions to pay the liabilities put upon it by the law.

First. There is no financial provision or support for the accrued liabilities beyond
the thirty per cent of the annuity. This will prove a heavy burden.

Second. The period of contribution of new entrants does not cover necessarily their
entire thirty-five years of service, but only the fifteen years in which they have been
teachers in the public schools within the operation of the law.

Third. One per cent is a very small contribution to support even a modest pension
scheme. All the large governmental pensions now in operation, or in contemplation,
caiTy a much higher rate of contribution.

No relief can be expected from the possible absorption of the present local pension
systems, but rather the contrary. Some of these systems are already in an embarrassed

PENSION SYSl^MS 33

condition. The teachers in these systems will be eager to become part of the state
system ; wherever, on the other hand, a local retirement organization is financially
solvent, the membei-s will hesitate to abandon such a secure status.

The New York state teachers' pension system resolves itself into the expectation
that such a proportion of teachers will die or retire before the pensionable age, that
the receipts from a one per cent contribution from all will provide such a proportion
of the pensions of those that survive that the public treasury will not be severely
burdened to pay the remainder. This assumption is extremely doubtful. Furthermore,
the history of all pension systems shows that the contributors soon become restless
under this unequitable arrangement, and demand a return of their contributions to
themselves or their heirs in case of premature retirement or death. This demand is
extremely difficult to resist, but to accede to it would destroy entirely the basis of
the New York system, and would impose upon the state treasury an annual burden
which might amount to millions. The state should reconstruct the entire system
under competent actuarial advice before its obligations have caused embarrassment
and disappointment.

Peoposed State Systems

Bills contemplating state-wide pensions for teachers are now before the legisla-
tures of Connecticut, Iowa, Maine, Michigan, Washington, and Vermont, and before
the Congress of the United States for the teachers of the District of Columbia. A bill
approved by the San Francisco teachers at a general meeting in October, 1912, will
be presented probably to the legislature of California upon its assembling in 1914.

The legislation proposed in Maine is for a pension system to be supported entirely
by the state, for which there is to be an annual appropriation from the state treas-
ury of $20,000. From this appropriation pensions are to be provided for aH public
school teachers who have reached the age of sixty years, and who have been engaged
in teaching as their principal occupation for thirty years, twenty years of which
employment, including the fifteen years immediately preceding retirement, shall have
been spent in the public schools of Maine. The pension is to be one-half of the
average annual salary during the last five years of service, no pension to be less than
$250 nor more than $500 a year.

It is extremely doubtful whether $20,000 will be sufficient to defray such a pension
system beyond two or three years. It would seem wiser for state teachers' associations
contemplating the presenting of pension legislation to gather first the vital statistics
and salary data for the teachers to be included, and then submit these data to actu-
aries for analysis. In this way the legislature can be informed concerning the prob-
able cost of the proposed system, and it is better to encounter at the beginning the
greater difficulty of a known higher cost than to get a bill passed under a misappre-
hension which, when it is understood later, may affect seriously all pension action,
public and private.

M THE BUSINESS OF THE YEAR

In Wyoming the proposal is to pension teachers of sixty-five, or those disabled
at an earlier age, who have served twenty-five years in teaching, twenty of which
have been in Wyoming. The pension is to be $360 a year, and the source of the pen-
sion fund is to be the income from certain school lands of the state, the amount of
which is not given.

The bill proposed in California would constitute a fund by deducting one dollar
monthly from the salaries of all teachers, and by appropriating the residue of the
proceeds from the succession and inheritance tax laws of the state "not specifically
appropriated for the use of the State School Fund and for other educational pur-
poses." Out of this fund a pension of $600 a year is to be paid to any teacher whose
public school service has been thirty years, twenty of which, including the last fif-
teen years of service, have been in the public schools of California, provided the
teacher has contributed to this fund, or any preceding fund authorized by law, the
sum of $360. Upon disability, after fifteen years of service, pro rata pensions are to
be granted.

In the year 1910 there were in California 11,369 public school teachers. A one
dollar deduction monthly from their salaries would produce $136,428. Such an amount
would not be available at once, because the law includes only future teachers and
such present teachers as may elect to enter the pension plan. This amount would
probably be adequate for some years, apart from the residue of the proceeds from
the succession and inheritance tax laws, which is naturally not calculable, but such
a fixed sum, not flexible to the cost of the system, will in time lead to difficulty. The
accrued liabilities, fixed by requiring a sum equal to the monthly contribution for
thirty years, were obviously not calculated upon any actuarial basis.

The bill offered in Congress by Mr. Johnson of Kentucky, at the request of the
Board of Education of the District of Columbia, provided for an annuity fund to be
supported, first, by an appropriation equal to one and a half per cent of the total
appropriation to pay the salaries of the public school teachers in the District of Co-
lumbia, to be payable, as is the case of all appropriations in the District of Columbia,
half by the District and half by the treasury of the United States, and secondly, by
a deduction from the salaries of all teachers. These deductions were to be one per
cent for teachers of ten years of service or less, and two per cent for teachers between
ten and twenty years of service, and three per cent for teachers who had served more
than twenty years.

From the fund so constituted annuities were to be granted to all teachers whose
service in day schools aggregated thirty years, fifteen years of which must have been
in the public day schools of the District of Columbia. Full disability allowances were
to be granted upon twenty years of service, ten years of which must have been in
the District, and pro rata disability allowances to those who had taught five years
in the public day schools of the District of Columbia. The annuity was to be six-
tenths of the average annual salary for the last five years of service, no annuity to

PENSION SYSTEMS 85

be less than $600 nor more than $1200, but no annuitants were to enter upon the
fund except what the income for the preceding year showed it covdd support, and
in the event of any deficiency, annuities were to be pro-rated. The accrued liabilities
were to be met by deducting from annuities the yearly contribution which a teacher
would have contributed if the fund had been in existence during the period of con-
tribution provided for.

Upon the death of any teacher before retirement, the wife, children, or dependent
parents, or a beneficiary named in the will was to be entitled to one-half of the teach-
er's total contributions.

The fund was to cover all teachers entering the service after passage of the bill
and all teachers employed in the public schools of the District of Columbia at the
time of its passage who did not within thirty days thereafter notify the superintend-
ent of public schools that they did not wish to accept its provisions.

The fund was to be administered by a board of trustees consisting of three mem-
bers of the board of education of the District of Columbia elected annually by the
board, the superintendent and assistant superintendents of public schools of the Dis-
trict ex-officio^ and nine teachers of the public schools, three representing the normal,
high, and manual training schools, three the teachers of the intermediate grades, and
three the teachers in the primary grades and the kindergartens, each trustee to serve
for the term of three years, one of each class to be elected each year. In each respec-
tive department of teachers two of the trustees to be elected must be white and one
colored, the white teachers to vote alone for the white representatives and the colored
teachei-s to vote alone for the colored representative.

By direction of the legislature of Massachusetts, the state board of education is
preparing a report on teachers' pensions, which the board announces will be ready
for presentation to the legislature of 1913.

The last legislatures in Georgia, Indiana, and Michigan failed to pass pension bills
recommended by the teachers of their respective states.

The Indiana bill provided for annuities for ail public school teachers who have
reached the age of fifly-five and who have served thirty-five years in teaching, thirty
years of which must have been in the public schools of Indiana or in Indiana schools
of equivalent rank, and five years may have been in the public schools of any other
state. Invalidity pensions might be granted after fifteen years of service in the Indiana
public schools. The annuities were to be one per cent of the average salary for the last
five years for each year of service, no annuity to be less than $250. The cost of this
system was to be defrayed by a one per cent assessment upon all teachers' salaries and
annuities, the balance to be met from the state school tuition tax. The only provision
for accrued liabilities was the requirement that an annuitant make up in contribu-
tions his first year's annuity. As all experience shows that a one per cent contribution
is inadequate to meet the requirements of a moderate pension system, the amount
needed annuedly from the school tuition tax fund would have been heavy.

$$ THE BUSINESS OF THE YEAR

The constitutions of Pennsylvania and New Hampshire contain prohibitions against
state pensions other than those for mihtary and naval service. Until such constitu-
tional prohibitions are repealed, no other action is possible. In Pennsylvania an agi-
tation for such repeal has been organized by the teachers of the state; in New Hamp-
shire an amendment repealing this clause was presented to the people at the last
election, but failed to command the necessary two-thirds majority.

Local Systems

The state of Kansas permits cities of the first class, which includes the ten largest
cities in the state, to establish retirement funds, to be supported by an assessment on
salaries of not less than one per cent and not more than one and a half per cent, and
by an appropriation fi'ora the general fund for the support of schools in the city of
an amount not less than one and a half times the amount of the assessment.

The legislature of Kentucky in 1912 created a Teachers' Annuity Fund of Louis-
ville, to be composed of one member of the city board of education, one principal, and
four public school teachers, the principal and teachers to be elected by the teachers of
the city. The maximum annuity is to be $400, based upon forty years of service, less
than forty years of service to entitle the annuitant to the equivalent proportion of $400,
regular retirement to be possible after thirty years of service, and invalidity retire-
ment after twenty years. The fund is to be supported by an assessment of one per cent
(not to exceed $10 in any one year) upon the salaries of all teachers whose service
is less than fifteen years, and an assessment of two per cent (not to exceed annually
$20) upon the salary of every teacher who has taught more than fifteen years. Upon
resignation from the service before retirement one-half of the total contributions of
the teacher are to be returned. There is no provision for accrued liabilities.

The state of Minnesota permits cities having a population of ten thousand or
over to establish a local Teachers' Retirement Fund Association, and to make for its
assistance a local levy of not to exceed one-tenth of one mill.

The state of Utah, by a law of 1907, permits any city of the first or second class
and any county, upon the petition of a majority of the teachers therein, to establish a
Public School Teachers' Retirement Commission. To support these funds, assessments
of one per cent may be levied upon all teachers' salaries, and deductions are made
from the salaries of absent teachers, not to exceed five days for any one teacher in
a single year. Any teacher who is sixty years of age and has taught thirty years,
one-third of which shall have been in the district or county, shall be entitled to retire
upon an annuity equal to one-half of the average annual salary for the last five years.
Disability pensions may be granted after thirty years of teaching, five of which have
been in the district or county. Before retirement the annuitant must make up a sum
equal to one per cent of the salary for the entire period of service. Under this law Salt
Lake City has had a pension fund in operation since 1908.

PENSION SYSTEMS 87

The state of Ohio permits the board of education of a school district to create a
school teachers' pension fund for that school district, to be supported by a deduction
of two dollars from each monthly salary of all teachers employed after the creation of
the fund, and of the teachers previously employed who shall elect to join the fund.
The board may retire for physical or mental disability any teacher who has served
twenty years in public schools, one-half of which has been in the schools of the county
in which the school district is located. After thirty years of service, half of which
have been as above provided, any teacher may retire, the pension to be twelve and
a half dollars annually for each year of service, but not to exceed $400 a year; but if
the fund is insufficient, all pensions must be pro-rated. Every beneficiary must have
contributed twenty dollars for each year of service, but not to exceed $600.

The state of Illinois has enacted two sets of laws with regard to pensions for
public school teachers. One law is for cities of one hundred thousand inhabitants,
that is, the city of Chicago. The other law is for aU the other boards of education in
the state.

Municipal Systems
The law for Chicago, which was passed in 1911, is mandatory. It creates a board
of trustees of the public school teachers' pension and retirement fund, to be composed
of the secretary of the board of education ex-officio^ two members to be elected by
the board of education annually out of their number, and six members to be elected
by the public school teachers of the city, two each year. After twenty-five years of
service as a public school teacher, or after fifteen years of service and disability cer-
tified to by three competent physicians at the request of the board of trustees, a
teacher shall be entitled to a pension, provided that in all cases three-fifths of the
said periods of service have been in the public schools of Chicago. The pension shall
be an annuity of $400, or in case of retirement for disability, such proportion of $400
as the total contributions required for a full annuity. Teachers who have taught five
years contribute five dollars a year, those who have taught more than five years and
less than ten years contribute ten dollars a year, those who have taught more than
ten years and less than fifteen years contribute fifteen dollars a year, and those who
have taught more than fifteen years contribute thirty dollars a year. Any teacher
leaving the service voluntarily before serving fifteen years receives back one-half of
his total contributions; a teacher discharged or not reemployed receives back the total
of his contributions. Accrued liabilities are provided for by requiring the teacher to
contribute a sum equal to what he would have contributed if the law had been in
operation during his period of past service, with interest at four per cent. Any teacher
who has been a contributor to the previous pension fund of Chicago, but has with-
drawn, may become entitled to the benefits of this new fund by contributing the full
amount that he withdrew from said pension fund, together with the full amount he
would have contributed had he not withdrawn, with four per cent interest. All teachers

88 THE BUSINESS OF THE YEAR

employed by Chicago after July 1, 1911, have this law read into their contracts of
employment. Teachers employed at that time in Chicago had until July 1, 1912, to
exercise their option as to whether they would accept the obligations and benefits
of the law or not.

The board of education of Chicago is directed to contribute annually a sum equal
to the total contributions from all the teachers, being empowered to use therefor any
sum deducted from teachers for absence after the payment of a substitute has been
met. If the total contributions by the board of education do not equal the interest
received by the board on the public moneys in its hands, it may add the overplus
to the pension fund, provided that the total of the amount of interest so added to
the fund does not exceed one per cent of the money raised by taxation for school
purposes.

To all boards of education in Illinois, except the board of education of Chicago,
the creation of a teachers' pension fund is permissive. The provisions of the fund, when
once created by a board of education, are the same as the law applicable to Chicago
in so far as the conditions of retirement, the amounts and conditions of the teachers'
contributions, and the provisions for withdrawal are concerned. Instead of the board
of education being required to contribute an amount equal to the teachers' contri-
butions, it is provided that in case there is not sufficient revenue from contributions
to maintain a teachers' pension fund, the school district, by a majority vote, may
establish a fund for the retirement of teachers who are over fifty years of age and
have served twenty-five years, the annuity to be one-half of the last annual salary, but
not to exceed $400. The fund so established may be supported from such revenues
as may be devoted to the purpose by the directors of a district or by direct appro-
priation by a town.

The board of education of Chicago is required, by an act of 1903, to establish and
maintain a public school employees' pension fund, to be administered by a board of
trustees, consisting of the president and secretai*y of the board of education ex-qfficio,
and four other members elected by the employees contributing to the fund. The fund
is a voluntary one, both in an option being allowed as to entrance and in free per-
mission to withdraw from making further contributions. Neither are the amounts of
the annuities stated nor the rates of contribution, the rules on these matters being
remitted to the discretion of the board, subject to the proviso that "said benefit or
annuity shall be proportionate to the amount of the contributions of such employee,"
and that deductions from salaries are not to be less than twelve dollars a year, nor
more than forty-eight dollars.

Annuities are to be granted to employees who have reached the age of fifty-five
years, and who have been in the service of the board of education of Chicago and
have contributed to this fund for ten years. An employee who has been in the service
of the board of education for twenty years may be retired without regard to age or
period of contribution, and in case of disability, ten years' contribution to the fund

PENSION SYSTEMS 39

is sufficient. Upon dismissal or resignation the employee shall receive back one-half of
his total contributions. Contributions made by employees to the public school teachers'
and public school employees' fund of Chicago under the act of 1895 were handed
over to this fund, as all annuities granted by said former fund were assumed by it.
Under the meaning of this act the term "employee" is declared to include engineers,
janitors, and office employees of the board of education receiving a stdary of over
$49 a month.

When Porto Rico was transferred from the sovereignty of Spain to the United
States in 1898, a teachers' retiring system was in operation, having been established
by the Cortes in 1894. The fiind was constituted by a three per cent contribution on
teachers' salaries, and by a ten per cent discount on all school supplies purchased by
the government, together with the teacher's full salary while a school was vacant.
The island government also granted annually 3000 pesos to the fund. At the time of
the American occupation the retirement fund amounted to 35,000 pesos, but it was
carried off by the Spanish officials when they returned to Europe. The American
school law that went into operation upon the occupation was not so enlightened
with regard to teachers' pensions as the law that it superseded. The retirement fund
continued, but was reduced to a voluntary pension system incapable of curing the
evils that pensions are designed to remedy. This system was abolished on March 9,
1905.

It is not possible to give complete details of all the pension systems in operation in
American cities, but the following description of a few of the more important will
indicate the number of teachers affected, and the nature of the act and of the benefits
of the pension systems thus established.

New York Cmr

The Teachers' Retirement Fund of New York City was established for the old city
in 1894 and for Brooklyn in 1895. After 1898 both funds received five per cent of
the excise money of their respective cities. The funds were consolidated in 1902,
and are now administered under a law passed in 1905. The Boai-d of Education estab-
lishes the rules for the administration of the fund, and the comptroller of the city
holds and invests the moneys. These are composed of five per cent annusdly of all excise
money or license money belonging to the city, of a one per cent contribution from the
salaries of all members of the teaching and supervising staff, and of pay forfeited or
withheld for any cause from the members of the teaching or supervising staff. This
last source of revenue consists almost wholly of deductions of pay on account of
absence.

In the former city of New York a teacher physically or mentally incapacitated
was eligible for retirement, if a man, after thirty-five years of service in New York
schools, and if a woman, after thirty years of such service. In Brooklyn a meJe teacher

40 THE BUSINESS OF THE YEAR

sixty years of age, or a woman teacher sixty-five years of age, was entitled to re-
tirement after thirty years of service, the last twenty of which must have been in the
Brooklyn schools. In the present system the necessity for physical or mental disabil-
ity does not exist, and the board of education may retire any teacher who has at-
tained the age of sixty-five years after being engaged in school work for thirty years.
On the recommendation of the board of retirement, the board of education, by a two-
thirds vote of all of its members, may retire any teacher whose period of service is
thirty years, fifteen of which have been in the New York school system ; and in the
same way the board of education may retire any teacher who is mentally or physi-
cally incapacitated who has served for a period of twenty years, fifteen of which have
been in the New York public school system. In 1911 a compulsory retirement at the
age of seventy was added to the mles by the board of education. The board of retire-
ment is constituted of the president of the board of education, the chairman of the
committees on elementary and high schools of the board, the city superintendent of
schools, and three other members elected from their own body by the principals and
teachers of the public schools. It is the custom of the board of education to approve
all of the recommendations of the board of retirement. The annuity after thirty years
of service is one-half of the annual salary at the date of retirement, no annuity being
less than $600 and none more than $1500, except for supervising oflicials, for whom
the limit is $2000. Annuities after less than thirty years of service are calculated
proportion ately .

The law provides that there shall be reserved a permanent fund of $800,000, and
that the number of persons retired in any one year shall be so limited that the entire
amount of the annuity to be paid for that year shall not be in excess of the esti-
mated amount of the retirement fund applicable to the payment of annuities for that
year. The fund on January 1, 1912, including a sum of $200,000 arising from excise
in the year 1912, but which, according to custom, is credited to the previous year,
stands at $1,427,825.52. This amount was composed as follows : deductions for absence,
$255,464.17; contributions from salaries, $215,158.45; excise taxes, $491,803.16;
interest on investments, $39,428.57; interest on bank balances, $1808.10; the rest
being from balances in the fund. Three hundred and seven persons were retired dur-
ing the year 1912 or recommended for retirement in February, 1913. The number
of annuitants on the rolls on January 1, 1913, was 1375, and the total annuity load
on January 1, 1913, was $991,343.98, an increase over the disbursements of 1911
of $110,954.15. The disbursements exceeded the receipts by $48,142 in 1910, and
by $77,337 in 1911. Unless further income is provided, the surplus of $627,825.52,
over the $800,000 which must remain as an endowment, will disappear, and the
annuities granted will have to be limited to the interest from that amount and the
accretions for the year. In 1910 28 per cent of those on the roll retired for disabil-
ity, after an average service of about twenty-five years. Practically all of the others
were retired on the basis of something between thirty and forty years of service; 94

PENSION SYSTEMS 41

per cent are women. In proportion to their numbers on the active staff, twice as many
women as men take advantage of the annuities. The average payment to the men
annuitants is about double that to the women. The average amount contributed
to the fund by the men is double that of the average woman. The men as a whole
contribute more than is paid to men annuitants. The annuities paid to the women
require all their contributions and a sum from the surplus.

Boston

In the city of Boston there was organized in 1889 the Boston Teachers' Mutual
Benefit Association. In 1900 the legislature of Massachusetts took cognizance of the
work of this association by authorizing the establishment of the Boston Teachers' Re-
tirement Fund. In 1906 the school committee of Boston made a study of the ques-
tion of teachers' pensions, and in 1908 the legislature directed the school committee
to levy five cents upon each $1000 worth of taxable value in order to provide teachers'
annuities, which were not, however, to exceed $180. The legislature of 1910 changed
this latter provision by authorizing annuities of not less than $312 and not more
than $600.

As the law now stands, there is a board of trustees of the Boston Teachers' Retire-
ment Fund consisting of the superintendent of public schools of Boston ex-ojfficio,
four members of the school committee of Boston, elected by the committee for the
term of two years, two retiring each year, and three female teachers and three male
teachers elected by the teachers for the term of three years, one male teacher and
one female teacher retiring each year. The care and investment of the funds is in
the hands of a board consisting of the chairman of the board of commissioners of the
sinking fund of Boston, of a member elected by the school committee, and of a mem-
ber elected by the board of trustees of the Teachers' Retirement Fund, the terms of
office being five years each.

The pensions are paid entirely from the levy of five cents upon each $1000 worth
of taxable value, the total amount of the annuities in any year not to exceed the
sum produced by this levy together with the accrued interest of the permanent fund.
In case of a deficiency all existing pensions are to be pro-rated, except that in no case
is the annuity to be paid to a teacher who has retired after thirty years of service to
be less than $312.

The school committee of Boston, by a majority vote of all members, may retire
any teacher sixty-five years of age who, in the opinion of the committee, is incapa-
citated for further service, provided the teacher's period of service in public schools
is thirty years, ten of them in the employ of the school committee of Boston. The
annuity is one-third of the annual salary at the period of retirement within the min-
imum or maximum limits. If the teaching service has been less than thirty years, a
pro rata annuity is to be granted. The school committee was also directed to pay

4a THE BUSINESS OF THE YEAR

sixty annuities to the annuitants of the Boston Teachers' Retirement Association on
the rolls of that association when the act of 1909 took effect, the committee to select
the sixty senior annuitants, and to keep up the payment to sixty annuitants till all
those so situated had received pensions.

In 1909 the sum available for pensions was $65,043. In 1910, $66,194, and in 1911,
$67,770. In 1910 the total number of annuities, including the sixty from the Boston
Teachers' Retirement Association, was 169, and the total amount of their annuities
was $52,000.

Philadelphia

Mr. Lewis Elkin, of Philadelphia, who died in 1901, left a million dollars to the
city of Philadelphia to provide annuities of $400 apiece to disabled female teachers
of the pubhc schools of Philadelphia who have "no means of support." The board
of education of Philadelphia has interpreted this to mean no adequate or no suffi-
cient support, and has limited the participation to all applicants otherwise eligible
whose income does not exceed $300 a year. In 1912 the income of the Elkin Fvmd,
which has since its creation been increased by a legacy from Mrs. Elkin, permitted
the payment of 192 annuities.

The board of public education of Philadelphia adopted on November 13, 1906,
under the authority of the general school law of 1905, a plan for a teachers' retire-
ment fund.

The fund is administered by a board of retirement consisting of the president of
the board of public education of Philadelphia ex-qfficio, two members of the board
appointed by the president, one member of the department of superintendence elected
by the contributing teachers for the term of two years, and one teacher not a mem-
ber of the department of superintendence elected for the term of two years, on alter-
nate years from the previous member.

The membership is compulsory upon all entering the public school service since
the inception of the fund. Under the contributing feature are levied contributions
of one per cent on those in the first ten years of service in the Philadelphia public
schools, and contributions of two per cent on those whose service is over ten years.
The maximum contribution annually is $50. The city of Philadelphia is to appro-
priate, if possible, an amount equal to the total contributions of teachers, but such
appropriation is not to be less than $50,000 a year.

Annuities are granted to teachers after thirty years of service, twenty of which
shall have been in the public schools of Philadelphia, the annuity to be one-half of
the annual salary at the time of retirement, but not to be less than $400 and not to
exceed $800 unless the retirement board after a year's experience, finding its fund suf-
ficient, raises the maximum to $1000. Pro rata pensions for disability after five years
of service in the public schools of Philadelphia can be granted at the discretion of
the retirement board. No teacher is to be retired who has not contributed an amount

PENSION SYSTEMS

equal to twenty-five regular annual contributions, to be calculated as at the time of
retirement. The retirement board may in its discretion distribute this amount over a
term of years by deductions from annuities. In case of insufficiency of funds, all
pensions are to be pro-rated. The plan may be amended by joint vote by the board
of education of Philadelphia, and of two-thirds of the contributing teachers.

The plan was to go into effect when 2000 teachers had signified their intention of
joining. By January 1, 1907, 3900 teachers had joined, and the fund therefore began.
All except about 25 teachers in the Philadelphia public schools now belong.

A comparative financial statement for the fii-st six years of operation follows:

Appro-
priated
bv Citv

From Teachers

Total
Receipts

Number of
Retire-
ments

Tears

Contri-
butions

Cash

Paidr^p

Liabilities

Deduction

from
Annuities

Total

from

Teachers

Annuity
Payments

1907
1908
1909
1910
1911
1912

$50,000
50,000
50,000
50,000
50,000
50,000

$58,103
60,035
62,220
64,561
67,058
70,0001

$5,543
3,699
6,083
5,543
3,667
3,802

$4,509
14,694
12,698
10,282
10,621
6,702

$68,156
78,430
81,002
80,386
81,346
80,5041

$130,780
136,443
143,855
146,734
150,563
152,0001

50
55
43
29
38
37

$10,476
36,850
50,325
63,694
76,475
86,6501

DETRorr

The city of Detroit has a teachers' retirement fund established by the legislature
of Michigan in 1895.

The fund is managed by a board of trustees under the law of 1901, consisting of
the superintendent of schools of Detroit ex-officio, three certain designated officials
of the board of education, and three members elected by the teachers for the term of
three years, one each year.

By the Michigan law the Detroit board of education can arrange for a schedxile
of contributions of from one to three per cent, no annual contribution, however, to
be based on more than $1000 of salary. The board can also use the absence fees for
the fund. The interest on daily balances of the teachers' salary fiind in Detroit and
the tuition fees of non-resident pupils in the public schools are added to the permement
fund. Teachers of thirty years' service in public schools, twenty years of which have
been in Detroit, and also teachers of twenty-five years' service in Detroit alone are
entitled to annuities. The board may also grant at its discretion annuities to teachers
of twenty-five years' service in the public schools, fifteen years of which have been in
Detroit, and by a two-thirds vote of the board disability pensions are allowed after
twenty years' service, ten years of which have been in Detroit.

All annuities are now fixed by the board at $330 a year, and there are 66 names
on the roll. In 1911 the permanent fund amounted to $90,000.

^ Estimated.

44 THE BUSINESS OF THE YEAR

San Francisco
The city of San Francisco has a teachers' retirement system, the peraianent funds
of which amount to $50,000. In 1912 the contributions by teachers amounted to
$13,404, and the absence fees granted by the board of education were $3000, The
annuities equaled $41,400 to 74 annuitants, in sums ranging from $300 to $600 a
year, but owing to the insufficiency of funds, only fifty per cent of these granted
amounts are being paid.

Industrial Pensions

In the field of industry many prominent corporations have instituted pension sys-
tems for their employees ; the last two or three years especially have been prolific in
the announcement of such enterprises. Even yet, however, only a very inconsiderable
proportion of the industrial establishments of the United States make any provision
for the old age of their workers.

In the field of transportation the situation is better, especially among railroad
companies. The Pennsylvania Railroad System, the Baltimore and Ohio Railroad,
the Chicago and Northwestern Railroad, the Illinois Central Railroad, the Delaware,
Lackawanna and Western Railroad, the Philadelphia and Reading Railroad, the
Union Pacific Railroad, the Southern Pacific Railroad, the Atlantic Coast Line Rail-
road, the Rock Island Lines, the Atchison, Topeka and Santa Fe Railroad, the New
York Central Lines, the Chicago, St. Paul, Minneapolis and Omaha Railroad, the
Buffalo, Rochester and Pittsburgh Railroad, the Minneapolis, St. Paul and Sault Ste.
Marie Railroad, and the San Antonio and Aransas Pass Railroad, all conduct pen-
sion systems. These roads represent a considerable proportion of the railroad mile-
age of the United States. In the Dominion of Canada pension systems are maintained
by the Canadian Pacific Railroad and the Grand Trunk Railway System.

All of these railroad pension systems are financed entirely by the companies,
and all provide for retirement at some period in the sixties, but in every case the
pensions are small. The Buffalo, Rochester and Pittsburgh Railroad pension is two
per cent for each year of service of the average wages of the employee during his last
ten years of service ; the Atchison, Topeka and Santa Fe Railroad pension is one and
a quarter per cent. All of the other railroads grant a pension of one per cent for each
year of service of the average salary for the last ten years. This is also the plan of the
Old Dominion Steamship Company. The New York Central provides that if the pen-
sion demands exceed $225,000 a year, a new basis of computation may be established.
It will thus be seen that the characteristic marks of the American railroad pensions
are : first, that the burden falls entirely upon the employing corporation ; and, second,
that the pensions are very small. In England the railroad pension systems, some of
which have been in existence for half a century, are contributory.

Some of the street railway companies of the United States, such as the Brooklyn
Rapid Transit Company, the Boston Elevated Railway Company, and the Philadel-

PENSION SYSTEMS 45

phia Rapid Transit Company, have instituted pension systems for their employees
similar to those in force in steam railroad systems. But the street railroads that have
done so are yet only a small proportion of our electric transportation lines.

In manufacturing, notwithstanding that numerous corporations conduct pension
systems of some kind for the benefit of their employees, only a beginning has as yet
been made. Every year, however, shows a large increase in the number of these corpo-
rations, and a wider acceptance of the principle that some method of caring for those
grown old in the service of a corporation is an obligation that must not be evaded.
A few of the pension plans in industrial corporations may be mentioned by way of
illustration.

One of the largest and most comprehensive pension systems in the industrial world
was announced on January 1, 1913, by the American Telephone and Telegraph Com-
pany to become effective on that day. The American Telephone and Telegraph
Company controls practically all the stock of the various telephone companies
throughout the United States using the Bell system, and also of the Western Electric
Company, a corporation engaged in manufacturing cable and telephone supplies.
It is the largest single stockholder in the Western Union Telegi-aph Company. The
pension system will cover all of these companies. It will therefore affect upwards of
175,000 employees.

The Bell telephone system throughout the United States is composed of the
individual telephone companies whose stock is owned by the American Telephone
and Telegraph Company, and these separate companies are grouped in districts such
as the District of New England, of the Central Atlantic States, etc. In each one of
these districts, in which the telephone companies are generally managed more or less
in common, there will be a pension board composed of certain officers of the com-
panies with a secretary. The Western Union Telegraph Company will also have
a similar board of its own, and so will the Western Electric Company. The board for
the telephone companies of the Central Atlantic States, whose employees number
40,000, is already instaled in quarters and has begun its work.

The American Telephone and Telegraph Company itself will also have a pension
board. This board will have a two-fold function: on the one hand it will act as
a direct pension board for the 4000 employees of the company who work in the
executive offices in New York and who operate the long distance telephone lines
throughout the country, and also it will act as a sort of "Court of Cassation" over
the pension boards of the Western Union and Western Electric Companies, and of
the pension boards of the district groups of telephone companies. This superior
board consists at present of the comptroller, the two vice-presidents, the general
counsel, and the acting treasurer of the American Telephone and Telegraph Com-
pany. It has already begun that part of its work which deals with the immediate
employees of the holding company ; its appellate jurisdiction has not yet had time
to develop.

46 THE BUSINESS OF THE YEAR

The pension system of all the companies is similar. It consists of three parts :
annuities, life insurance, and sickness and accident disabilities.

Annuities are to be granted at their own request to all male employees sixty years
of age, and to female employees fifty-five years of age, who have served twenty years.
Male employees of fifty-five years of age who have served thirty years, and female
employees of fifty years of age who have served twenty-five years, may be retired
upon the approval of the president or designated vice-president. The pension is to
be one per cent for each year of service of the average pay during the last ten years
of service, a minimum being fixed at $20 a month. The pension committee may in
its discretion base the computation of annuity upon the average pay for any ten
consecutive years which may be higher than the pay of the last ten years of service.

The life insurance provision is a grant of six months' ftdl wages when the em-
ployee's period of service has been greater than five years but less than ten, and a grant
of one year's full wages when the term of employment has been greater than ten
years; maximum payment in any case to be $2000. If, however, the employee's death
was due to an accident occurring in the performance of work for the company, the
insurance shall amount to three years' full wages, but shall not exceed $5000. A sum
not exceeding $200 may be advanced immediately by the pension committee to meet
funeral expenses, or other urgent expenses incident to the illness and death of the
employee.

The disability payments are divided into two classes, sickness and accident. The
sickness payments consist of full pay for four weeks and half pay for ten weeks when
the employee has served more than two years and less than five; full pay for thirteen
weeks and half pay for thirteen weeks when the employee has served more than five
years and less than ten; and full pay for thirteen weeks and half pay for thirty -nine
weeks when the employee has served more than ten years. The accident disabilities
cover accidental injury during employment while in the performance of work for the
company, and payment consists of full pay for thirteen weeks and half pay for the
remainder of the period of the continuance of the disability, not exceeding six years
in all. The pension committee will also attend to all necessary surgical treatment.

This pension system is supported entirely by the group of companies associated
with the American Telephone and Telegraph Company as enumerated above. There
are no contributory features. To support it, $10,000,000 was credited to the fund
on January 1, 1913, which will draw interest at four per cent. The associated com-
panies promise at the termination of each year to add such a sum, not to exceed two
per cent of their aggregate payroll, as will be necessary to replenish the fund up to
the amount of $10,000,000. It is estimated by the officials of the American Tele-
phone and Telegraph Company after an actuarial study of card records for all the
175,000 employees affected, and from a comparison of other American industrial
pension systems, that less than the two per cent of the payroll wiU always carry this
pension system. One important element in this calculation is the fact that 60,000 of

PENSION SYSTEMS 47

the employees are telephone operators, of whom 50,000 are girls. The average length
of service of the operators is only about three years, so that they will never become
annuitants, although it is expected that the existence of this pension system may
have a tendency to lengthen this short period of average service.

The United States Steel Corporation, the International Harvester Company, the
American Sugar Refining Company, the American Express Company, the Gorham
Manufacturing Company, Wells Fargo and Company, and the Westinghouse Air
Brake Company have pension systems in which the cost is borne by the employer.
The United States Steel Corporation and Mr. Carnegie united in March, 1901, in
establishing a pension fund for the steel employees, the corporation contributing
$8,000,000 and Mr. Carnegie $4,000,000. The American Sugar Refining Company
has provided $300,000 for it^ pension fund. The Gorham Manufacturing Company
has established a pension reserve by appropriating each year a sum equal to one per
cent of its labor cost. The Westinghouse Air Brake Company inaugurated its pension
plan in 1908 with an appropriation of $110,000, with an authorization of $10,000
annually for pensions for the current year. All of these plans, except that of the
American Sugar Refining Company, contain provisions for rescaling the pensions.
The United States Steel Corporation rules provide that if the annual income on its
$12,000,000 principal is exceeded by the demands, the board of trustees of the fund,
after exhausting any surplus that may have accumulated, may adopt a new basis not
only for prospective pensions, but for those already granted. The International Har-
vester Company will fix a new rate for pensions, if their aggregate exceeds $100,000
a year, unless the company makes additional appropriations. The Gorham Manufac-
turing Company annoimces that if for three consecutive years the pensions exceed
by five per cent the appropriation into the reserve fund, all outstanding pensions
will be cut down so that the total amount may come within the average of the three
years' appropriation, and a new rate will be adopted for the future. Wells Fargo and
Company and the Westinghouse Air Brake Company merely provide that if the
pensions exceed the resources, all pensions may be reduced proportionately. The
amount of the pension in almost all of these companies is one per cent for each year
of service, based upon the average salary for the last ten years. The Steel and Har-
vester corporations also have a maximum of $1200 a year, the Gorham Company
of $1000 ; the Steel and Harvester companies permit earlier retirement to women
than to men. Some of these corporations have an objectionable rule permitting the
authorities to withdraw a pension at any time at their own discretion. Altho this
power will be rarely exercised, it takes away the sense of seciu^ity, and opens the door
for an arbitrary exercise of power.

Examples of contributory pensions in industrial establishments are afforded by
the meat-packing corporations of Armour and Company, and Morris and Company.
In Armour and Company the contribution is three per cent of all salaries, and the
company obligates itself to contribute eventually $1,000,000 to the fiind, and to

m THE BUSINESS OF THE YEAR

maintain the treasury at that amount. The pension is two per cent of the salary at
the time of retirement for each year of continuous service. If an employee dies during
any period of his service, his widow receives one per cent of his last salary for each
year that he served. If he leaves no widow, this amount is divided between his chil-
dren imder eighteen years of age until they reach that age. When a pensioner dies his
widow and his children under eighteen years of age are entitled to one-half of his
pension.

If an employee leaves the service of Armour and Company voluntarily, he receives
back the total amount of his contributions, but without interest; if he is discharged,
he receives back his contributions with interest at four per cent compounded semi-
annually.

The pension system of Morris and Company is provided for by a sum of $25,000
set aside annually by the company until the fund shall reach a total of half a mil-
lion dollars, and by a contribution of three per cent of the salaries of all employees
whose weekly wages exceed ten dollars. The pensions begin at the age of fifty-five,
after twenty consecutive years of service, and are two per cent for each year in the
employ of the company. Any person compelled to retire because of disability before
the age of fifty-five receives his pension pro-rated, and in case of the voluntary re-
tirement of any employee before his having earned a pension, he receives his total
contributions back, but without interest. A widow is entitled to one-half of her
husband's pension, no matter after how short a period of service he may have died,
but the pension ceases in case of re-marriage. In case of the widow's re-marriage or
death, however, any children under eighteen years of age will receive the widow's
portion until that age is attained.

An interesting and wise provision of the pension system of Morris and Company,
on account of its contributoiy feature, is the method of administration. Instead of
the management of the fund being in the control of a board appointed entirely
by the emplojring corporation, this fund is administered by a committee of five,
only two of whom are appointed by the company, the remaining three being elected
by ballot by the employees : a cumulative system of voting, based upon length of
service, being used.

CIVIL SERVICE PENSIONS IN NEW SOUTH WALES

The difficulty of maintaining a pension system from an estimated income is very
serious. Even with the best actuarial study, the conditions of the future are difficult
to forecast. All groups for which pensions are available show a curious liability to grow
in size. The death rates fail to follow the anticipated law. Any pension system admin-
istered from a fixed income and unprovided with a source from which its income may
be increased is bound in time to come to a point where the calls upon it under its

CIVIL SERVICE PENSIONS IN NEW SOUTH WALES 49

own rules exceed its income. A most illuminating instance of this sort of well-meant
effort is found in the experience of New South Wales.

In 1884 the Parliament of that colony established a " Civil Service Superannuation
Account," to which all civil sei-vants, with the exception of certain minor employees,
were required to contribute four per cent of their salaries, and to which the govern-
ment of the colony promised an annual grant of £3500, with an additional annual
grant of £20,000 for the first five years. Retirement was permitted at the age of sixty,
after fifteen years of service, and for disability after the same period of service. The
amount of the allowance for the first fifteen yeai's of service was to be fifteen-sixtieths
of the average salary for the last three years, to be increased by one-sixtieth for each
additional year of service, but no allowance was to exceed two- thirds of the average
salary specified. Those whose services to the colony were dispensed with, except for
misconduct, were to receive one month's pay for each year of service. Two riionths'
pay for each year of service was to be paid to those who were incapacitated in the
discharge of their duties, and who had not served fifteen years. A widow also, or chil-
dren under sixteen years of age, who might be left in necessitous circumstances, were
to receive a gratuity not to exceed six months of the deceased officer's last salary.

It was provided in the act creating the fund that there should be an actuarial
investigation by skilled accountants every three years. The first investigation was held
in 1887, Mr. Richard Teece, secretary of the Australian Mutual Provident Society,
being designated by the Civil Service Board as actuary. Mr. Teece's careful and elabo-
rate report seriously impugned the solvency of the fund. After pointing out the fact
that tables of the rates of retirement in various services are exceedingly scarce, but that
such as are available disclose that experience among one body of men cannot safely
be assumed to obtain among another body surrounded by different circumstances, he
enimierated the specific causes leading to the critical condition of the fund. First,
the four per cent contribution would be inadequate. This rate was sufficient only in
the case of an employee entering the service at the age of twenty-five ; at thirty the
contribution should be five per cent; at thirty-five years, six per cent; at forty years,
seven and a half per cent, and so on. Secondly, there was no sufficient provision for
the accrued liabilities assumed by the fund at its inception. Even if the four per cent
contributions had been sufficient to keep the system going, they would have been
insufficient to carry in addition the pensions granted for services that were rendered
before the contributions began. Nor was the government subsidy sufficient to make
up this deficiency. There was a third difficulty of a political character. The act of 1884
provided that if an office were abolished, its holder could be retired upon the super-
annuation account at any age, and a scheme of retrenchment adopted by the govern-
ment in 1887 added many beneficiaries to the fund in this way. Finally, the actuary
regarded the gi'atuities to widows and orphans of deceased employees as quite out
of place in a superannuation fund.

The Civil Service Board received the actuary's report with skepticism. Indeed, in

50 THE BUSINESS OF THE YEAR

spite of it, they recommended that the gratuities to widows and orphans be extended
in order to relieve the board from the necessity of making invidious distinctions. The
board paid no attention to the recommendations that the rate of the pensions be re-
duced by basing them upon the average salary for the entire period of service, and that
the government grant £50,000 to enable the fund to assume the accrued liabilities.

When the period for the second triennial investigation arrived in 1890, the Civil
Service Board appointed its own actuary, Mr. John B. Trivett, to make the exami-
nation, Mr. Trivett found the conditions indicated by Mr. Teece both intensified and
more distinct ; he found the same reasons for the insolvency of the fund, and made
about the same recommendations as the former actuary. The pensioners had in-
creased from 174 three years before to 419. The new actuary did not believe it prac-
ticable to increase the rate of contribution beyond four per cent, as an increase would
press too severely upon the recipients of the smaller salaries. He thought, however,
that considerable improvement would result from basing the retiring rate upon the
average salary during the entire period of service, and also considered this as more
equitable: " Since the receipts from each officer are proportionate to the amount of
salary year by year throughout his official life, it is but just that the basis upon
which the retiring allowance is computed should have a relation to his total emolu-
ments, and not depend upon the advantages nor the vicissitudes which might befall
him during the last three years of service." Mr. Trivett ended by recommending an
immediate government grant of £60,000 to the fund. He also recommended a com-
prehensive collection of data from the civil service, in order to separate the accrued
Habilities assumed at the creation of the fund from the continuing liabilities.

This time the Civil Service Board was more inclined to listen to the report of its
actuary. It recommended to the governor of New South Wales that there be a lim-
itation as to the age of persons allowed to enter as contributors to the fund ; that no
retirements be allowed under sixty years of age, except under very rigid regulations ;
that retiring allowances due to government retrenchment be not made a charge upon
the fund ; and that the government assist the fund with a sufficient annual grant.
The board now recommended, instead of gratuities to widows and orphans in neces-
sitous circumstances, that in every case a certain fixed proportion of the officer''s
contribution be returned to his widow and children. But the board, while admit-
ting " that the fund is insolvent from an actuarial point of view," maintained that
" a i-econstruction of the act wiU bring the fund, in the course of a few years, into
a solvent condition." No legislation was effected, however, and a general feeling of
apprehension arose throughout the civil sei-vice of the colony as to the state of the
superannuation account.

By the time that the period for the third triennial investigation of the fund drew
near, the statement for 1893 showed that the four per cent contributions for that year
amounted to £67,308, while the allowances and gratuities were equal to £75,262.
The Civil Service Board therefore secured the services of Mr. T. A. Coghlan, gov-

CIVIL SERVICE PENSIONS IN NEW SOUTH WALES 51

emment statistician of New South Wales, now the Agent-General of that colony in
London, for a very complete examination.

Mr. Coghlan's report was even more forcible than that of his predecessors. He com-
plained that the preceding reports had received far less attention than they deserved.
He undertook the great labor of collecting the data that Mr. Trivett had so strongly
recommended three years before, thus placing the investigation upon a far sounder
footing, but unfortunately making the condition of the fund assume a still more
unfavorable aspect.

The object of the act of 1884 was to secure pensions to civil servants upon their
retirement, and to this end, to establish a fund that would eventually be self-sup-
porting. This object was to be achieved by payments from the treasuiy for a limited
number of years, and contributions by the civil servants of a fixed percentage of their
salaries. Mr. Coghlan found this plan perfectly feasible : had the fund originally been
established on a solvent basis with a clear knowledge of the liabilities involved, had the
promised benefits been put on a scale proportionate to the price paid for them, and
had no charge been put upon the fund beyond the original plan. All three of these con-
ditions, however, had been violated, with the result that at the time of the investiga-
tion the fund had a deficiency of nearly £3,000,000, increasing at the rate of £120,000
a year, a condition too serious to be remedied even by the assistance of the government.

The remedy recommended by Mr. Coghlan was startling, being no less than the
scaling down of all pensions, existing and prospective, 65 per cent. As an alternative
he suggested the following changes in the act of 1884 : that the pension age be raised
from sixty years to sixty-five years and strictly confined to that ; that no person be
admitted thereafter as a contributor who was above the age of thirty -five years unless
he pay back contributions as from that date, with compound interest of four per cent;
that pensions be computed on the average salary for the last seven years ; and that
all gratuities be abolished. Even if these changes were made, there was no hope that
the fund would become solvent, but that it would be brought within such a reason-
able distance of solvency that the government would find it practicable to restore its
solvency by a special grant.

The confirmation by Mr. Coghlan of the report of the two previous actuaries finally
convinced the Civil Service Board of the insolvency of the fund, and of the essential
unsoundness of the act of 1884. The board naturally laid strong emphasis upon the
unfortunate position of those employees who had been contributing for years to the
fund in confident expectation of laying up security for their old age, and recom-
mended their case urgently to the consideration of Parliament.

Parliament decided that it could not in good morals reduce the retiring allowances
65 per cent, as that would be a virtual repudiation of its contract. On the other hand,
it was not willing to order the radical reconstruction of the fund, which was the actu-
ary's other alternative. Nothing remained, therefore, but to take steps to terminate
the fund, and this policy was entered upon by the act of 1895.

52 THE BUSINESS OF THE YEAR

By this act the option was offered to the contributors to discontinue their contri-
butions to the fund. Those ceasing to contribute were to receive back the total of
their previous contributions, with three per cent interest, upon their retirement from
the service of the colony, or their estates were to receive the same amount in the
event of their death. Instead of an annuity they would receive a gratuity equal to one
month's salary for each year of service, calculated upon the average salary for the
entire period of service. The government assumed the liability for these gratuities.

Civil servants who elected to continue their contributions were to receive a pension
as hitherto, but no new entrants into the fund were to be permitted. The fund would
thus expire upon the death of the last of the existing civil service force. New servants
of the state were to be compelled to insure their lives under certain conditions.

As the fund still existed, the actuarial investigation required by the act of 1884
continued obligatory, and a fourth investigation was made in 1898 by Mr. Trivett,
who made the second investigation. He found the situation improved by the reforms
that followed the last examination, but the deficiency was still large. Out of 9593
lonner contributors, 5829 had elected to cease contributing, but these were the
younger employees. Those near retirement naturally kept up their payments, and so
the retiring load upon the fund showed scarcely any diminution, nor was it likely
to do so for a number of years. It was evident that with the annual contributions
reduced from £67,000 to £21,000, and the load of pensions continuing the same,
the time would arrive when the fund would not only be insolvent, but resourceless.

In 1901 the last actuarial investigation was made, again by Mr. Trivett. The assets
had dwindled to a low figure. The actuary discussed the history of the fund, and laid
down a series of principles upon which he believed that a self-sustaining contributoiy
retiring allowance system could be maintained. Assuming the age of retirement to
be sixty years, and assuming also a progression in salaries similar to that then exist-
ing in the NeAV South Wales civil service, he advised the following contributory rates :

Under 20 years 5 per cent

Over 20 and under 25 years 5^ per cent

Over 25 and under 30 years 5f per cent

Over 30 and under 35 years 6 per cent

Over 35 and under 40 years 6^ per cent

Mr. Trivett added the hope that the failure of the act of 1884 would not discour-
age Parliament from undertaking to frame an adequate superannuation plan. The
need for it continued as imperative as ever, for the insurance ordered by Parliament
to be taken out by new entrants into the civil service would amount in the case of the
average officer to only £200 ($973), a sum utterly inadequate under any method of
management to act as the principal necessary to provide retired officers with a living
income.

In 1903 the long expected disaster arrived: the superannuation account had no
funds left in its treasury. Over £1,100,000 had been contributed to it during its

CIVIL SERVICE PENSIONS IN NEW SOUTH WALES 53

existence, but it was aU gone. The government then did the only thing possible,
— assumed the entire responsibility for existing pensions and those that continuing
contributors will expect under the rules in force, — and now Parliament annually
makes appropriations for these pensions along with the other current expenses of
the state. It is calculated that in 1936 this drain upon the state treasury will have
ceased finally.

The failure of the New South Wales plan was a misfortune to the state, since it
gave a serious blow to all systems of pensions. The real ground of criticism of the
New South Wales Civil Service Board, which administered the system, does not lie in
the original mistake. In the early days of so new and complex a problem, of which so
little is known, it is no detraction to the authority in charge to change plans radically
in the light of experience. This the board should have done on the basis of the report
made at the end of the first actuarial period. Doubtless the decision to do this was
rendered more difficult by the fact that the system was a contributory one. Under
such circumstances no plan could be fairly adopted which did not contemplate the
return of money paid in by contributors with a reasonable interest thereon.

The government of New South Wales could not acquiesce permanently in a con-
dition in which the only provision for superannuation in the civil service was the
inadequate compulsory insurance upon entrance. A commission was authorized by
Parliament to investigate the entire subject, three of the six members to be actuaries.
This commission made a report in 1912, which is one of the most valuable contribu-
tions to the literature of pensions.

I The commission presented cogently three reasons for civil service pensions :
"^ A civil sei'vice without a pension scheme will in the long run fail to attract the
kind of ability it needs most urgently. The normal scale of official emoluments, par-
ticularly in responsible positions, is not sufficient to induce able and energetic men
to give up the chance of the larger earnings possible in the field of private enterprise.
The state cannot offer the prospect of wealth to its servants, and therefore must be
able to assure them reasonable security against poverty in old age. i^

The state must be able to retire officials who have grown too old for their work.
But if the civil servant knew that he would be retired at sixty without means of
subsistence, competent men would seek other employment, unless the state ofiered
them salaries so large that they could affiard to insure themselves against old age.
If this plan were followed, the profits of insurance would accrue to private corpora-
tions. A pension system simply means that the state provides the insurance and saves
the profits for itself. The establishment of a proper pension system, therefore, so far
from being an extravagance, really is a most important measui*e of public economy.
It is a means of attracting good men, and it enables the state to dispense with ser-
vants who are past their usefulness, and to quicken the promotion of younger men.

The average civil servant, cut off as he is from the business community, cannot
hope by means of insurance or by prudent investment of small savings to provide

54 THE BUSINESS OF THE YEAR

against incapacity and premature death. Misfortunes frequently come when the family
is young and most in need of the chief wage-earner's support. The widows of deceased
employees or the wives of employees who had become incapacitated would then be
forced to seek employment, probably as cleaners, caretakers, etc., or if the children
could not be left to themselves, the mothers would drift into one or another of the
sweated "home industries."" In numerous cases the state would have to come to the
assistance of the family, and its help would usually take the form of charity — per-
haps the worst of aU forms of help.

The commission framed a pension plan which would include the entire govern-
ment service of New South Wales, not only the Crown employees, but shire and
municipal employees as well.

The objections to separate schemes for different sections of the government service
are the greater expense of management, and the fact that the "experience" of a fund
with a large number of contributors is less open to accidental sectional or occupational
fluctuations than is a smaller "experience."" Consequently an inclusive government
system furnishes a sounder basis for estimating the cost of providing pension benefits.

Furthermore, the commission regarded the civil service pensions as the first instal-
ment of social insurance, and attempted to devise a plan of superannuation which
would lend itself readily to extension to other classes in the community.

The basis of the system proposed by the commission is not the individual, but
the family. In many other pension schemes the pension usually lapses with the death
of the contributor or pensioner. The commission makes provision for the widow and
children.

The basis of the contributions, both by the contributors and the government, is a
relation to the amount of pension rights in prospect, and this, in turn, depends upon
the amount of salary. If contributions are a percentage upon salaries, without regard
to the amount of pension for which such contributions are a payment, notwithstand-
ing the prospective pension and the contribution increase as a man rises in the ser-
vice, the increase of pension bears no relation to the increased contribution and is not
dependent upon it. The younger men pay more than the benefits receivable and the
older men pay less. Each employee should, on the average, pay for the benefits he
will receive, subject to such reductions by assistance from his employer, the state, as
the law shall provide; the burdens of one section of the service not being lightened
at the expense of any other section.

The bill ofifered to Parliament by the commission provides the following proposed
benefits :

1. Full pension on retirement in case of a man at the age of sixty after ten years'
service, and in case of a woman at the age of fifty-five or of sixty, according to the
table she has elected to contribute under. An actuarially reduced pension to an
employee who elects to retire after thirty -five years' service before reaching the age
of sixty.

CIVIL SERVICE PENSIONS IN NEW SOUTH WHALES

2. Upon the death of a pensioner, one-half of his pension to be paid to his widow,
and £13 a year for each child under sixteen.

3. Upon the death of a contributor before the age of retirement, one-half of the
pension for which he was contributing to be paid to his widow, and £13 a year for
each child under sixteen.

4. Upon retirement, after ten years' service, of a contributor on account of invalidity
or incapacity not due to his own fault, a full pension to him, and upon his death one-
half of his pension to be paid to his widow, and £13 a year for each child under sixteen.

5. Upon retirement, after ten years'* service, of a contributor on account of invalid-
ity or incapacity due to his own fault, a pension the actuarial equivalent of the
contributions made by himself and by his employer in respect of him up to the time
of retirement. Upon the death of such a contributor, one-half of such pension or £26
a year (whichever is greater) to be paid to his widow, and £13 a year for each child
under sixteen.

6. Upon resignation or dismissal of a contributor before the age of sixty, his total
contributions to be refunded.

7. Upon termination of a contributor's service on account of retrenchment by the
government,

(a) a pension the actuarial equivalent of the contributions made by the employee
and by the government in respect of him ; or

(6) a payment equivalent to twice the amount of his contributions.

To support this system of pensions, the contributions are to be assessed equally
upon the employee and the government.

The basis of the employee's contribution is the unit of pension. A unit of pension
is £26 a year, and the minimum pension for which an employee can contribute is two
imits, or £52 a year.

The units of pension for which an employee must contribute increase automati-
cally with his salary until a maximum amount of £312 pension a year is reached,
according to the following table :

Salary

Pension Units to be provided

Units

Up to 130

130 to 156

157 to 208

209 to 260

104

261 to 312

130

313 to 364

156

365 to 416

182

417 to 468

208

469 to 520

234

521 to 572

260

573 to 624

286

625 and over

312

THE BUSINESS OF THE YEAR

If an employee's salary is increased after the age of forty, it will not be compul-
sory upon him to contribute for additional units of pension.

An employee may elect to contribute for such number of units of pension as is
prescribed for the salary group next higher than that to which he belongs accord-
ing to the above table; the employer in such cases contributing in accordance with
the like number of units.

The following table gives the bi-monthly contribution at different ages for men
for a pension of £52 a year, carrying lights to widows and to children under sixteen.
The difference in rates between the first two units of pension and any subsequent two
units is that the first two units carry the orphans' benefits.

Bl-MONTHLY CONTEIBUTIONS

Age

1st £SS

per annum

2d and subsequent £52 per annum

s. d.

2 6

2 8

2 10

3 0

3 2

3 5

3 8

3 11

4 2

4 5

3 11

4 8

4 11

5 2

5 6

5 9

6 1

6 4

6 9

7 1

7 6

7 10

8 4

8 10

9 4

9 11

10 6

11 3

12 0

0 12 11

13 11

4«

15 1

0 16 5

CIVIL SERVICE PENSIONS IN NEW^ SOUTH VSTALES

Age

Int £5S per annum

td and subsequent £52 per annum

0 18 0

0 17

0 19 11

0 19

£0

1 2 1

1 1

1 4 11

1 4

18 3

1 T

1 12 6

1 11

1 18 2

1 17

S 5 11

2 4

An employee who commences to contribute at thirty years of age or over may
elect within the first twelve months as to his contributions:

(a) He shall not be compelled to contribute for more than two units of pension
(£52).

(6) He may contribute for two such units at the rates prescribed for age thirty.

(c) He may contribute for additional units (of £26 a year each) in accordance with
the prescribed scale, and at the rate for his actual age, but not in any case exceed-
ing six units (£156 a year pension), and the employer shall then contribute also in
respect to such units as if these units were compulsory.

The following table shows the schedule of contributions for a scientific expert,
representing a class whose age of entrance and salary are analogous to those of the
beneficiaries of the Carnegie Foundation.

Age

Salary

Total
Pennon

Increment
of Pension

Increvient of
Bi-monthly
Contribution

Total
Bi-monthly
Contribution

Annual
Contribution

Percent
of Salary

s. d.

£ S. d.

£ s. d.

250

104

0 8 10

12 10 0

4.2

270

130

2 3

0 11 1

13 6 0

4.9

290

130

0 11 1

13 6 0

4.6

310

130

0 11 1

13 6 0

4.3

330

156

2 7

^ 0 13 8

16 8 0

350

156

0 13 8

16 8 0

4.7

370

182

2 11

0 16 7

19 18 0

5.4

390

182

0 16 7

19 18 0

5.1

410

182

0 16 7

19 18 0

4.9

430

208

1 0 0

24 0 0

5.6

450

208

3 5

1 0 0

24 0 0

5.3

470

234

3 10

1 3 10

28 12 0

6.1

490

234

1 3 10

28 12 0

5.8

500

234

1 3 10

28 12 0

5.7

600

286

13 2

1 7 0

44 8 0

7.4

The increments taken out at ages over forty are voluntarily subscribed for.
This pension plan worked out under expert advice is the most carefully thought
out and the most carefully framed plan yet offered. The provisions which it includes

58 THE BUSINESS OF THE YEAR

^such as benefits to widows and orphans) complicate the scheme beyond any likely
to be adopted for school teachers in American states. The plan shows clearly that
any scheme involving a pension equal to one quarter of the salary paid will cost the
teacher 'between three and four per cent.

CIVIL SERVICE PENSION ACT OF SOUTH AFRICA

The most elaborate and carefully digested plan of civil service pensions in operation
is probably that of the Union of South Africa, the act creating which was approved
by the Governor-General, the Viscount Gladstone, on June 28, 1912.

The act creates a Public Service Commission, to be appointed by the Governor-
General, to consist of three members. The tenure of office is to be five years, and the
members are eligible for reappointment, but can hold no other office. They can be
removed by the Governor-General, but he must communicate immediate notice
of removal to both Houses of Parliament. The chairman of the commission receives
a salary of £1500 a year; the other members £1250 a year.

The public service commission administers three funds, which are to be kept
distinct. First, the Union Administrative and Clerical Division Pension Fund ; second,
the Union General Pension Fund ; third, the Union Defensive Police and Prisoners'
Pension Fund.

A flat rate of contribution of four per cent of the employees' emoluments is exacted
from all, except that an employee now thirty-five years of age or thirty-five when
appointed can elect whether he will contribute or not, and no employee forty years
of age at the time of appointment is allowed to contribute, nor will contributions
be allowed from employees receiving wages of less than 5 s. a week or £90 a year. The
government of South Africa contributes an amount equal to the total contributions
of the employees.

An officer may retire at sixty years of age, or may be retired compulsorily by the
Civil Service Board at fifty-five. The pension is one-sixtieth for each year of service
of the average salary for the entire period of service. The officer must have con-
tributed for ten years to be eligible to retirement. Disability pensions calculated as
above are allowed after ten years of service, if the disability is without fault of the
officer.

The total of all contributions, but without interest, is to be returned to an officer
who retires voluntarily. Twice the total contributions are to be returned to an officer
disabled before he has completed ten years of service, or to an officer who becomes
unfit to discharge duties without being actually disabled, or to a female who retires
from the service to marry and within three months after resignation produces to
the public service commission a certificate of marriage.

In case of death before retirement, twice the total of the officer's contributions

CONTRIBUTORY AND NON-CONTRIBUTORY PENSIONS 59

without interest are to be paid. In case the employee dies within five years after his
retirement, there is to be paid either a pension for the unexpired part of such term
of five years, or the difference between five times that annuity and the annuity which
has actually been paid to him. These payments in case of the death of the officer are
to be made, unless the deceased has indicated his preference by will, to beneficiaines in
the following order: first, widow or widower; second, children or step-children in equal
shares; third, father or mother in equal portions, or the survivor of them; fourth,
brothers or sisters in equal shares. In case of death due to service, the Governor-Gren-
eral may grant annuities to relatives in the above order, but such annuities never
shall exceed more than half of the Isist salary, and are to cease if the widow remairies,
when the male children attain the age of eighteen years, and when the female chil-
dren attain the age of twenty-five years or marry.

It is expressly provided by the act that pensions are not assignable or subject to
execution, and if the pensioner becomes insolvent, the pension cannot be afiected.
Pensions, however, are terminated by conviction for crime in any pdrt of the king's
dominions unless the convict is pardoned, but the Governor-General may extend any
or all of the annuity to dependent relatives. The treasury may upon production of
satisfactory medical certificate commute for a single payment a pension of £25.

The act specifically declares that it is to have no effect upon the workman's right
to compensation for injuries.

CONTRIBUTORY AND NON-CONTRIBUTORY PENSION SYSTEMS

In my last report I called attention to the distinction between contributory and non-
contributory systems of pensions, and presented some argument in favor of a com-
pulsory contributory system. It will be noted, however, that the industrial pension
systems that have been described are all of the non-contributory type. The reasons
for this throw a suggestive light on our present social and economic tendencies.

A contributory pension system maintained by joint cooperation of an industrial
organization and its employees assumes at once a contractual relation. In such a case
common justice requires that contributing employees shall have a hand in the man-
agement, and that all contributions to persons leaving the service be retimied with
fair interest added. Corporations have been slow to accept these conditions, not only
on account of the uncertain financial load involved in the contributory pensions, but
also on account of the hesitation of most organizations to limit their own indepen-
dence of action. It must also be admitted, I think, that the pension system has been
adopted, in some cases at least, on the partial theory that it is a deterrent against
strikes. Such phraseology, for example, as the following clause from the provisions
of a large industrial organization would suggest that such an idea was in the minds
of the managers: "Discontinuance of regular work without permission for any other

m THE BUSINESS OF THE YEAR

reason than sickness or accident will be deemed sufficient cause for the forfeiture of
all benefits accruing under the plan." In general, the rapid spread of pension systems
among industries in which strikes are most likely to occur is due in part to a desire
to afford one more reason against a strike, and in order to be used in this way, it
has been assumed, I think on somewhat superficial grounds, that the system must be
non -contributory.

Naturally, too, the non-contributory system appeals at first glance to the employees
more strongly than a contributory system. It touches that universal chord in human
nature which responds to the idea of getting something for nothing.

There is grave doubt whether the non-contributory system of pensions — aside
from the moral and economic objections to it — justifies even this hope. An interest-
ing commentary on this idea, at least, is afforded by the action of the civil servants
under the English Crown, who by practically unanimous action three years ago suc-
ceeded in abolishing the non-contributory pension system maintained for their benefit
from 1859 to 1909.

The complaints brought against the system were two. First, that the effect of
the system maintained entirely at government expense was to depress salaries by
an amount far in excess of the benefits of the pension; hence such a system, altho
non-contributory in appearance, was in reality a contributory system. Second, that
altho under a contributory system every man who dies or leaves the service at an
age below the pensionable limit receives himself or leaves to his family his accumu-
lated contributions with interest, on the non-contributory plan, the indirect contri-
butions of all are for the benefit only of those who live beyond the pensionable age.
Whatever the true grounds of these complaints, and giving some weight to the pos-
sibility that the action of the Liberal government in abolishing the system was in
some measure influenced by political considerations, the incident is of special signifi-
cance as showing that, in the long run, employees of any organization are likely to
become dissatisfied with a system in which they share neither the financial responsi-
bility nor the power of management. The idea that a pension system can be made
to serve as a deterrent to thoughtless and unjust strikes has some truth in it, but
that result can be brought about only by the gradual increase of thrift, by the de-
velopment of friendliness and confidence between employer and employee, and by a
common share in the pension problem. Toward these results a non-contributory
pension system — even when generously meant — is likely to aid but little. It runs
counter to certain universal tendencies of human hature.

It would, however, be unjust to imply that industrial organizations have adopted
the non-contributory plan wholly, or even mainly, on the ground of self-interest. On
the contrary, the purpose back of all these efforts has been good, and the difficulties
in the way of inaugurating a contributory system are serious, even aside from the
question of the independence of the pensioning agency.

So seldom are these problems brought into the range of the non -technical reader,

CONTRIBUTORY AND NON-CONTRIBUTORY PENSIONS 61

and so numerous are the pension plans now being inaugurated, that I venture to
point out somewhat in detail the other difficulties that have stood in the way of the
adoption by business organizations of the contributory form of pensions.

The greatest obstacle is of course the uncertainty of the financial load which is
assumed.

In all contributory systems, experience has shown that eventually the contributors
will demand four things: first, that if a contributor is dismissed or resigns volun-
tarily before the pensionable age, he shall be paid the amount of his total contribu-
tions, with interest ; second, that if a contributor becomes disabled before the pen-
sionable age, he shall receive either a full or a proportionate pension ; third, that if
he dies before retirement, his estate shall receive the amount of his total contribution,
with interest, or even the amount of both his and his employer's contribution, with
interest; fourth, that if he retires upon a pension, but dies before the total amount
of his pension receipts equal the amount of his total contribution, with interest, his
estate shall receive the balance.

Some of these demands are unfair; such, for example, as the claim that a contributor
disabled before pensionable age should receive as large a pension as if he had continued
to work up to the retiring age fixed by the rules. Similarly, to demand that in case of
death before retirement, the contributor shall receive not only his own contribution,
but also a portion of that of the employer, is unreasonable. Such claims are not likely
to suise under carefully and fairly framed rules. But even when all of these cases are
eliminated, it stiU remains true that the uncertainties of employment, the changes and
possible dissatisfaction and hostility in the body of employees, might bring about
a situation under which a serious financial burden would remain.
M In the eyes of the management of an industrial organization the difficulties are
still further magnified when the actuarial examination brings up a much more formid>
able financial difficulty which confronts the practical operation of a contributory
pension system, the neglect of which has done more than all else to bring contribu-
tory pension systems into disrepute, — namely, the accrued liability incurred at the
inauguration of such a plaiT If a pension system wei-e founded simultaneously with
the assembling of a group of employees, the matter would be very simple, for such an
enterprise starts with young men. But this is never done. It is only when men grown
old in the service begin to arrive at an age when they ought to retire that the au-
thorities of the organization — whether it be a college, a bank, or an industrial cor-
poration — consider the problem of pensions seriously. The problem by this time has
become vastly more complex. The service contains men of all ages, from youth to
those already of pensionable age. Many employees will contribute littl^ before they
retire; the majority wiU not contribute half of what will be paid eventually by the
young men just entering employment. In consequence, within a few years the pension
system will undergo a strain far beyond that which would have come if the system
could have started with young men.'The only practical way to meet this difficulty

est THE BUSINESS OF THE YEAR

is for the pensioning agency to put into the fund during the earlier years of its history
enough money to make up the diflPerence between what each employee's contribution
actually will be and what it would have been had the pension system been started
with a group of young employees.

If the authority inaugurating a contributory pension system finds the cost of
accrued liabilities beyond its resources, it can deal with the case in another way by
reducing the extent of the contemplated pensions. A very modest system of pen-
sions is, as has been said before, better than none. By annual gifts and by some care
for specially deserving cases, it will be possible to get thru the long period of accrued
liabilities into safe waters.

^ Another practical objection to contributory systems, and one equally serious, is
the difficulty of fixing and enforcing rates of contribution that are equitable and
adequate. Ordinarily there is assessed what is called a flat rate, that is, each em-
ployee is assessed a fixed proportion of his salary, say three per cent. All the great
contributory systems of the world, from that of the German government down, adopt
this method.

Such a uniformity of contribution is unwise, because each individual who may be-
come a pensioner in the future constitutes a liability against the fund which varies
according to the likelihood of his reaching the pensionable age. The only method
of estimating this liability rests on the age of the individual. When a pension fund
is established in a going concern, each person must be considered and a separate
fimd allowed for each, according to his life expectation. The flat rate of contributory
pensions disregards this fact.^The employee who enters the service at twenty-five
and remains until he is sixty-five — if that be the pensionable age — will continue to
contribute for forty years, and with forty years' opportunity for compound interest
will contribute the same proportion of his salary as the employee who enters the service
at forty -five, and who contributes for only twenty years.

The experience of contributory systems shows that the flat rate is a source of much
discontent. The men who begin to contribute when young are constantly complaining.
Such complaints are not always sound. For instance, the English government had a
flat rate contributory pension system for its civil servants from 1829 to 1859, but it
kept no separate pension fund. Contributions were merely paid into the Exchequer
and the government paid the pensions. There was loud complaint that the rate of
contribution was so much higher than was necessary that the government was making
money from the system. When an actuarial study was made after the abolition of
the system, it was found that had there been a separate pension fund, it would have
been insolvent. The only scientific method for managing a contributory pension fund
is to open a separate account with each individual; to assess against his salary a
contribution proportionate to his age, having determined what contribution at each
age will furnish sufficient capital to sustain — with the help of the funds furnished
by the pensioning agency — the pensions for the probable period of retirement. /U

SUBSISTENCE AND STIPENDIARY PENSIONS 63

These considerations will serve to make clear why industrial corporations — entirely
apart from the desire for independence — have hesitated to inaugurate pension sys-
tems on the contributory plan. There is no question but that the effort presents difficul-
ties, but it also remains true that imtil pensions are put upon the contributory basis,
they must remain extremely small, they will have little influence in arousing the spirit
of thrift, and they will contribute little to the sense of mutual confidence between
employer and employee. The ideal system would rest upon the contributions of both,
and be managed by a board representing all interested parties, one of which is the
public. A very wise feature of the German industrial pensions has been the presence
of representatives of the government who stood for the interests of all.
^ The following statements contain the principles that experience has shown to be
worthy of particular attention in the case of those organizing industrial pension
systems :

1. The pension system, if imdertaken, should be adopted solely on the ground of
the benefit to those in employment, and with no ulterior purpose.

2. The pension system should be on the contributory plan, maintained at the cost
of the company and of the employees.

3. The management should be in the hands of a board composed of representatives
of the company and of the employees. In many cases an outsider will be a useful
member.

4. The sum paid in by any employee should be returned with a moderate stated
interest in case of his resignation from the service before the pensionable age, or in
case of his dismissal. In case of his death before the pensionable age, this sum should
be returned to his estate.

5. No step should be taken in the fixing of rates or benefits except upon expert
actuarial advice.

6. Since no actuary can tell in advance exactly what will occur, the rules of the
pension fund should require an examination at stated intervals, and the constitution
should reserve the right to the representative board to make such changes as experi-
ence may show to be necessary in the interest of all.

SUBSISTENCE AND STIPENDIARY PENSIONS

The systems of pensions just described should always be considered fix)m two points
of view, which, as a rule, do not occur to the average intelligent man. From these
points of view all pension systems may be separated into two classes, according as the
object of the pension system is merely to shield the pensioner from actual bodily want,
or whether its object is to maintain him after retirement in a position approximating
that which he enjoyed at the culmination of his active service. This difference is fun-
damental, and makes the great difference in cost between the two systems. Under

64 THE BUSINESS OF THE YEAR

the first plan would be grouped the old age pension systems of the various govern-
ments, and most of the industrial systems of pensions just described.

The following list of the average pensions provided by American railroad pension
systems illustrates the scale of provision for old age contemplated in their organ-
ization. Altho the majority of those drawing pensions are laboring men, it will be
noted that the size of these pensions has no close relation to the earning capacity of
the individual in his activq life, or to the continuance of his life after retirement
on a plane comparable to that upon which he has been accustomed to live. They are
designed merely to protect him against actual bodily want. For anything more than
this, the individual must look either to his own exertions or to aid from others. These
average annual pensions are as follows :

The " Big Four " Railroad $206.76

Philadelphia Rapid Transit Company 240.00

Pennsylvania Railroad 241.00

Atchison, Topeka and Santa Fe Railroad 255.00

Canadian P«icific Railroad 274.00

Delaware, Lackawanna and Western Railroad 275.00

New York Central Railroad 312.84

Union Pacific Railroad 314.00

Buffalo, Rochester and Pittsburgh Railroad 325.50

Philadelphia and Reading Railroad 362.00

The fact that these pensions are small is not urged as an objection against them.
Where pensions are to be distributed on a lai'ge scale without contributions from the
participants, it is inevitable that they should be small. And such pensions go far to
lift from the shoulders of old age its worst burden. The man with a sure income of
two or three hundred dollars is on a very different basis of independence, even if he
must live with children or relatives, from him who has no such support in old age.
Comfort and pleasure may be to a considerable degree out of his reach, but at least
the wolf cannot enter the door.

Pensions for men in professions which call for a high order of merit and culture,
which involve in general a large service of the individual to the public good, have
been based upon the other principle, namely, that the individual shall receive a pen-
sion equivalent to a large proportion of his earning capacity at its culmination, and
sufficient to afford a dignified life upon a plane comparable to that upon which he has
lived. A pension of two or three hundred dollars a year would mean much to a working-
man after old age has dulled his activities, but as a retiring allowance for a justice
of the Supreme Court, a general, or a college professor, it would be a mere travesty.

The distinction is a fundamental one, and it carries with it very far-reaching conse-
quences upon the financial side. Pensions conducted upon the latter plan are enor-
mously expensive in comparison with the former. Accordingly such pensions must
be for the few, rather than for the many, unless indeed a feature of the system is a
compulsory contributory plan carried through a long series of years.

A FEASIBLE PENSION SYSTEM FOR A COLLEGE

The Foundation is constantly asked for suggestions and advice by the authorities
of colleges who contemplate the establishment of independent pension systems for
their own institutions. This movement is itself one of the fruits of the establishment
of the pensions inaugurated by the Foundation. Ten years ago very few college trus-
tees considered pensions for old teachers as one of the expenditures coming within the
obligations of a college board of trustees. The conception that college trustees then
had of their duties did not include any feeling of obligation to care for the old or
the broken teacher, or such sense of obligation as existed was, at most, largely per-
sonal. The individual trustee might do something with his own means, but the notion
that he could use the college funds for such a purpose was practically unknown. Such
an obligation had no weight in comparison with the desire of the college for a new
laboratory, or a new campus, or even a new stadium. The fact that so many colleges
are now asking themselves seriously whether this duty is not as real as the obligation
to provide larger physical facilities, is a hopeful indication of a new social spirit in
our institutions of learning, and still more an indication of the direction of the
attention of those in control toward meeting the more pressing human problems
as well as those of a more material nature. For twenty-five years the demand in our
institutions has been for more students, more halls to hold the new students, more
advertising to get yet other new students to fiU the new halls, and for more money
to meet the needs that the new students brought. It is an endless chain. Very few
institutions have been willing to limit their student body to the number that they
could serve honestly and eificiently. In this process no group of men has suffered
and endured more than the college teacher. As the student body has expanded, the
load on the teacher has grown heavier and heavier, particularly in those institutions
where the tradition of thorough work has been strong. Under the conditions that
have existed, the faculty that had served two hundred students has struggled, with
but small increase in its numbers, to serve four or five hundred students. Such a situa-
tion means one of two things, — the work becomes superficial, or the teachers break
down before their time. This last process, going on under the eyes of trustees, has
perhaps done more than any other thing to bring home to these governing boards
a realization of their own duty in this matter. In time the college conscience may
be so aroused that it will be sensitive also about accepting students whom it caimot
serve. For the present situation the teacher has almost as great a responsibility as
the trustee. There are few teachers who are not eager to see numbers increased, even
at the expense of their own health.

From a variety of causes — a quickened social sense, a clearer appreciation of the
obligation of the college to its teachers, a desire to offer advantages comparable to
those given in the better colleges and universities, in part I hope from the influence
of the Carnegie Foundation — a number of colleges are beginning to deal indepen-

66 THE BUSINESS OF THE YEAR

dently with the question of pensions for teachers. In some institutions it has simply
taken the form of an occasional pension for an old and honored man, with no explicit
obligation on the part of the college to introduce a general system of pensions. In
other cases the college has begun the effort to raise money for a pension system. It is
from such institutions that inquiries are addressed to the officers of the Foundation.

The questions assume one of two forms.

The first can be illustrated by an inquiry recently submitted in the following terms :
" Our college has an instructing staff of 25, an annual pajToU for this staff of $60,000.
What endowment ought we to raise in order to establish a pension system as generous
as that of the Carnegie Foundation and which will be absolutely secure?"

It is impossible to answer this question. First of all, to make even an actuarial
estimate, the details of age and salary must be known. But when all of this data is
brought together, the wisest actuary could not make an estimate that would be of
practical help. The best he could do would be to point out certain limitations beyond
which it would be unwise to go. To express it in another way, if a sum of money were
named which would be absolutely satisfactory from the actuarial point of view, either
the sum would be so large, and so great a proportion of it would need to go into a
reserve to care for accrued liabilities, unknown contingencies, and the like, that the
total would be beyond the reach of any college ; or else the rules would need to be
set upon so meagre a scale that the pensions would be of very little value to those
whom they were instituted to serve. The problem is indeed insoluble on a purely
actuarial basis. If a college is to wait to begin pensions until it can accumulate a sum
of money that will insure its pension system for all time under fixed rules, it will
never begin. As pointed out in former reports, any pension system working under fixed
rules will in the end reach the limit of its income, unless it has sources for increas-
ing this income, — such, for instance, as a government appropriation or an outside
endowment.

The question in this form is, therefore, impossible of answer on any basis that a
college can hope to meet. It is like asking that a college have in hand, before open-
ing its doors, all the endowment it is ever going to need. There is no such thing as
an ideally satisfactory pension system. Unlimited money could not produce it. Like
all other such social and humane agencies, the right results are brought about only
by the exercise of devotion, self-restraint, and unselfishness.

On the other hand, when approached from another point of view, the question
is capable of a sufficiently practical answer. The question would then need to be
attacked from some such position as the following : Given a college, of the Ameri-
can type, with an instructing staff of 25 and an annual salary roll of $60,000, what
pension system can be devised that will take care of the aged and broken, and of
their widows, which shall give reasonable security to those concerned, and still main-
tain solvency ? This is the question that, as a rule, trustees really have in mind. The
answer to even this question is by no means simple. When the Carnegie Founda-

A FEASIBLE PENSION SYSTEM FOR A COLLEGE 67

tion has had twenty more years of experience, the answer can be made much more
exact. Nevertheless, it is possible, with good judgment, to inaugurate now a pension
system that shall be workable and adaptable to future needs.

The first question to be settled in such an inquiry is whether the income of the
pension system shall be derived partly from endowment and partly from contribu-
tions, or whether it shall rest wholly on the income from endowment.

In a preceding pai'agraph I have set forth the advantages of a compulsory contrib-
utory system. Notwithstanding the fact that it is the faii-est system, and financially
the soundest when strictly administered, nevertheless, for a single institution it is
almost impossible. First of all, the cost of a contributory system bears sharply on the
contributors. If the pensions were paid entirely from contributions, a man entering
the college at thirty-five would have to pay about five or six per cent of his salary in
order to retire at sixty -five upon such a pension as the Foundation pays. If he entered
at a more advanced age, the percentage would be necessarily larger.

Secondly, the number of persons involved in such a pension system would be too
small to give the law of probabilities a fair chance. An industrial company with a
group of thousands of employees can safely assume that the risk will be fairly repre-
sented by actuarial computations, but in so small a group this assumption would be
unsafe. For such an institution a pension plan would be safe only in combination with
a number of other institutions, this common pension system being based upon a large
number of lives. Such a plan would be difficult to bring about. The institution, there-
fore, that undertakes to start a pension system for its teachers finds the establishment
of an endowment for this purpose the most practical way open.

How large an income from endowment must be secured to meet the needs of such
a group of teachers having a salary roll of $60,000 ?

There is no experience that indicates any widely general ratio of pensions to salary.
Government civil service pensions are estimated at 6 per cent of the salary list. In the
table on pages 88 and 89 it will be noted that the ratio in accepted institutions of the
present pension outgo to the salary list is on the average 4.1 per cent. This applies to
a group of 5025 teachers. The smallest ratios come generally in the larger institutions.
A number of the smaller colleges show very high percentages. Any deduction fit)m
a few such cases is, therefore, misleading. In many cases a college staffs will come to
possess, after a series of years, a considerable group of older men. When the Founda-
tion's pensions were established, numbers of such older men were retired by it in a
group. In some of these institutions there will be no more pensionable teachers for
a considerable period. All general deductions from such limited experience are there-
fore subject to large errors. On the whole, however, the experience of the Foundation
would seem to show that an expenditure of somewhere between 6 and 10 per cent of
the active salary list wiU carry a reasonable pension system, but that in small col-
leges the fluctuations are likely to extend over wider limits than where larger groups
of teachers are concerned. A college, therefore, with such a salary list as that just re-

68 THE BUSINESS OF THE YEAR

ferred to could safely inaugurate a pension system for its teachers, comparable with
that of the Foundation, with an endowment of $150,000 to $250,000 invested at four
per cent. In order, however, that such a fund should bring the relief desired without
more disappointment than is inevitable, — it is impossible to conduct any pension
system without disappointing those who are just outside the limits chosen, — the
following general precautions must be observed:

First, the beneficiaiies should understand that the system assumes no liability be-
yond its income.

Second, it should be made clear that the interest of all is conserved by living strictly
within the rules that are adopted. It is difficult to establish a proper appreciation of
the absolute necessity for doing this. A large part of the correspondence of the Foun-
dation even yet is devoted to the effort to explain why it must work within the estab-
lished rules, and to the endeavor to assuage the indignation of those who feel that
the most worthy are neglected thereby. In presenting to the Foundation the name
of a noble and faithful man who had taught in country schools in an isolated moun-
tain region, a college president recently added : "I wonder if in the face of this the
Carnegie Foundation will talk about rules and inviolable regulations. I wonder if
they can use the stock phrases regarding exceptions, worthy cases, and the enforced
necessity of business regulations." And. yet the applicant in this case had never been
a college teacher, and was excluded by the deed of trust by which the members of the
corporation hold their trusteeship. Whoever has to do with the management of a
pension system will discover that even those directly interested in its benefits will de-
mand simultaneously that exceptions to the rules be made in any case in which their
emotions are touched, but that such exceptions shall not affect the financial opera-
tion of the system ! And yet after aU, this is not a phenomenon to be wondered at or
scolded about. It is genuine human sympathy exercising itself in a field where it is
uninformed.

The Foundation has had not a long but a rich experience in this particular field.
Its officers and executive committee originally undertook to meet exceptional cases
that lay outside the rules. They learned only by experience the impossibility of mak-
ing such exceptions. Any college starting its pension system will need to educate its
constituency to this knowledge.

Again, it will be wise for the pension system in such a college to be administered
by a board composed in part of the teaching staff. Not only is this arrangement one
that accords with our Teutonic ideals of freedom, but it is the only way in which
the teaching staff can get a fair idea of the need for strict observance of the rules,
and can be made to realize that the safety of their own pensions depends upon such
an observance. From every point of view the participation of the beneficiaries in the
management is desirable.

As a part of the strict observance of the rules, the management must have the cour-
age in times of light demand to accumulate a surplus against the time of extraor-

A FEASIBLE PENSION SYSTEM FOR A COLLEGE 69

dinary demands. A great difficulty in administering such a system for a small body
lies in the fluctuations that will arise. After some years during which little demand
has been made upon the income, the temptation to go outside the rules becomes
hardest to resist.

The experience of the Foundation shows that the minimum age limit should be
set higher than sixty-five. On the average, teachers retire at somewhat over sixty-
nine. From the correspondence that comes to me I am inclined to think that a con-
siderable proportion of those who retired at the minimum limit would not do so if
they had their choice to-day, and that a still larger proportion would be happier and
more useful in their old places.

Just what age is the best to set as a minimum limit it is difficult to say. The whole
matter comes back to a conception of the pension which is somewhat different from
that which we all very naturally entertained at the beginning, that is, that the pen-
sion is not intended to assist the man of strong body and mind to get out of teach-
ing at any assigned age, it is to take care of him when his powers fail and he can no
longer do his work well. To raise the limit of age works no hardship to the man who
is broken in health at sixty-five. Such a man would be retired on the ground of dis-
ability. One places a different ideal before the teacher, moreover, when he suggests
retirement on the ground of approaching weakness rather than on the ground of
a definite limit of age.

The experience of the Foundation also tends to show that after a certain age and
service (let us say after sixty years of age and twenty-five years of sei*vice as a pro-
fessor), it would be wise to permit a teacher to accept a diminished duty with dimi-
nution of salary while basing his pension, when its time comes, on the last five years
of full axitive pay. Such suggestions have been made in the past, but there have been
rather serious difficulties in the way of carrying them out. These difficulties would in
large measure be met by offering the privilege only to men of given age and service.'

In the conduct of such a system as is here contemplated for a small college, it
goes without saying that with rising salaries and growing staff the endowment of the
pension system will need to be increased from time to time, which is nothing more
nor less than must be faced with every other problem with which the college deals.

Finally, the actual outcome of such an effort will depend on the education of the
college constituency to the right conception of what the pension system can do and
ought to do. Success means not only that the needs of those who have earned and who
desired such aid have been met, it also means that the happiness and contentment of
the whole body of teachers has been conserved. In order to do this, those directly con-

* The Trustees, on November 20, 1912, amended the rule governing the reckoning: of retiring allowances to read as
follows:

"In reckoning the amount of the retiring allowance the average salary for the last five years of active service shall
be considered the active pay. In case, however, a professor agrees with his institution to continue at any time after
reaching the age of sixty-flve part time work for a diminished salary, he may do so, and upon his retirement his
allowance shall be computed upon the basis of the last live years of full pay. In the case of his death in this inter-
val the pension of his widow shall be reckoned upon the same basis."

70 THE BUSINESS OF THE YEAR

cerned must be led to distinguish between the man who merely wants a pension and
the man who ought to be pensioned, to appreciate that the conferring of an allowance
in the one case would be a mistake and in the other an honor to the system and to
the man. In other words, the essential problem in the inauguration and conduct of
a pension system in a college depends only partially on financial and actuarial con-
siderations. Its usefulness in large measure is in the point of view of those who are
to benefit from it. And the more they share in its management and responsibilities,
the more clearly will they appreciate both its advantages and its limitations.

Any college that will undertake the problem of pensions in some such spirit and
manner as is here outlined, making use always of good actuarial and financial co\in-
sel, and educating its constituency to a conception of their own opportunities and
responsibilities, can conduct a pension service with an endowment well within its
reach. There would not always be a pension waiting for a teacher the moment that
he complied with the minimum conditions, but he would seldom need to wait long
for it. Security and contentment will be the greater as they are associated with a high
desire to serve, an unselfish appreciation of the needs of others, and a realization of
the fact that money alone cannot create an ideal college pension system.

A FEASIBLE PENSION SYSTEM FOR PUBLIC SCHOOLS

While the work of the Carnegie Foundation has to do primarily with pensions to
the teachers in a limited number of colleges and universities, it goes without saying
that a keen interest is taken in the problem of pensions for public school teachers. The
reports of the Foundation have continually aimed to emphasize the interdependence
of the college and the public school system. Our educational problem is one problem,
and if there is a justification for pensions for teachers in the colleges, there is a still
stronger justification for pensions for teachers in public schools, where salaries are
lower, work is harder, and the conditions of service are in every way more difficult.
One of the great weaknesses of our public school system to-day lies in the fact that
only a small number of men can be induced to undertake permanent careers in it.
Before we can hope for the best results in education, we must make a career for an
ambitious man possible in the public schools. To do this, dignity and security must
be given to the teacher's calling, and probably no one step could be taken which will
be more influential in inducing able men and women to adopt the profession of the
teacher in the public schools than to attach to that vocation the security which a
pension brings.

This problem is now before the legislatures of many states. It is going to be an
increasingly insistent question. In the presence of such suggested legislation, the
thoughtful legislator will wish to ask at least four questions: (1) Upon what grounds
are pensions for public school teachers justified.? (2) Assuming that pensions ought to

A FEASIBLE PENSION SYSTEM FOR PUBLIC SCHOOLS 71

be paid, who ought to pay them? (3) What form of pension system would it be fair to
adopt, having regard both to the individual teacher and to the state? (4) What will
such a pension system cost the individual teacher and what will it cost the state?

When these four questions have been answered, a feasible pension system for the
public school teachers of a state will have been described.

While it is not possible to answer these finally for a particular state without a
thoroughgoing examination of the salaries, ages, and lengths of service of the teachers
who compose the system, it is nevertheless possible to give a general answer, suffi-
cient to guide the inquirer in forming a judgment. The literature of the subject is
extensive, both in English and in German, and the experience already gained has
demonstrated certain fundamental principles which may be considered as settled.
I venture, therefore, to outline the following answers to these fouB questions in the
light of the experience of existing pension systems in this country, in England, and
on the continent of Europe.

1. Pensions are justified upon practically two grounds: first, those of a larger so-
cial justice; secondly, as a necessary condition to an efficient public school system.

The first of these reasons applies in marked measure to pensions like that of the
teacher. Society, as at present organized, desires to get the best service it can out of
the various vocations and callings into which men are natiu-ally distributed. In some
of these callings great prizes are to be won, and these serve as incentives for high per-
formance. In other callings, like that of the teacher, there are no large prizes in the
way of pecuniary reward (it would be a wise thing in society to create such). Society
desires to obtain of the teacher a service quite out of proportion to the pay which
he receives. Intelligence, devotion, high character — all are necessary, and the state
seeks to obtain them at an average salary of $500 a year. It is clear that, if the state
is to receive such service, some protection for old age and disability must be had,
if the best men and women are to be induced to enter upon such a calling as a life
work.

Secondly, from the standpoint of efficiency in organization, whether a governmen-
tal one or a business one, there must be some means for retiring, decently and justly,
worn-out servants. In the past we have in most cases turned out men and women no
longer able to teach, but the conscience of our time does not permit such action.
Out- worn teachers remain to the direct injury of the pupils themselves. As a matter
of efficiency, some humane method of retirement for public school teachei*s is neces-
sary.

These two reasons for the establishment of pensions for the teachei"s in state schools
are sound and unanswerable.

2. Three plans for securing protection against disability and the weakness of old
age are proposed : a pension system borne wholly by the employer, a pension system
borne wholly by the employee, a pension system conducted jointly by both employer
and employee and supported by their joint contributions.

72 THE BUSINESS OF THE YEAR

While there are some variations of opinion among those who have studied the
question, the overwhelming weight of opinion is in favor of the third plan.

A pension system resting upon the contributions of the employer alone has many
objections, not the least being the lack of cooperation and of the incentive to thrift
which ai-e likely to be produced by it.

A system of pensions depending on the contributions of employees alone amounts
practically to a compulsory system of saving. In order that the benefits may be large
enough to form a basis for retirement, the contribution must be so large as to be
practically prohibitory.

The third plan seems to me justified not only on the ground of equity, but upon
the ground of self-interest, whether the employer be a corporation or a government.
All salaries such as teachers' are relatively low, and while the question of a just
salary must not be confused with the equity involved in a relief plan, it nevertheless
remains true that the general equities of service demand that a part of the pension
of a servant be borne by the employer. A state still owes to the faithful teacher
something after it has paid his salary. He has been required to regulate his life in
large measure for the common interest. In addition the employer, whether a corpo-
ration or a state, secures a higher efficiency by a well-ordered pension system. Finally,
only by such joint action can be secured the right cooperation between employer
and employee. On all three grounds — the ground of general equity, of increased
efficiency, of a better social cooperation — it is desirable that a system of pensions
rest upon the joint contribution of the employer and the employee.

I assume that on the whole it is fair for the teacher to bear half the cost of the
annuity and the state the other half.

3. The form of pension system at once just and feasible would involve the considera-
tion of many details, but at least these general principles may be assumed as proven :

(a) The pension obligation should be compulsory upon every teacher who enters
the service.

(6) The amount of the contribution should be determined by thorough actuarial
investigation, but each teacher shall form a unit, and the annuity which he is
to receive shall be based upon his own payment plus that granted by the state.
Such an aiTangement is just and fair, and is capable of actuarial computation.
Every individual, whether he survives, resigns, or dies, thus furnishes the basis
for the action taken.

(c) Contributions levied upon teachers who resign or are dismissed must be re-
turned with a moderate interest — say three per cent — and similar returns must
be made to the widows or heirs of those who die.

(d) A central administration for the pensions of all public school teachers should
be provided, constituted of a small commission serving without salary, with a
paid executive who should at the same time be a competent actuary.

4. The cost of such a pension system to the state or to the individual can be approxi-

A FEASIBLE PENSION SYSTEM FOR PUBLIC SCHOOLS 73

mated only after some assumption is made as to the amount of the pension to be
paid in the individual case. In order to arrive at some estimate, I assume that the
teacher is to receive a pension of fifty per cent of his pay at the time of retirement,
one-half of the pension to be provided by his own payments, the other half by
appropriations from the state treasury. Thus, a teacher in the grammar school who
receives $500 a year, which is somewhat higher than the average, would be paid at
the assumed age of retirement — say, sixty years — a pension of $250, of which his own
contributions must furnish an amount sufficient to supply an annuity of $125, and
the state the remaining annuity of $125. The teacher who enters at twenty-five would
need to pay, in order to provide his annuity at sixty, about three and a half per cent
of his salary — in other words, something less than $20 a year, which, compounded
at four per cent, would take care of his half of the annuity. Should the teacher die or
resign in the interval, the state would repay his accumulations with interest at three
per cent, a process which ought to furnish a small profit, but which, on the other
hand, gives to the teacher's family a protection which is most important and most
needed. On the whole, therefore, for a pension system which aims simply to retire in-
dividuals at sixty, the teacher must expect to pay a proportion of his salary amount-
ing to from three and a half to six per cent, according to the age at which he enters.

Assuming a school system comparable with that of, let us say, the state of Kansas,
or the state of Virginia, or the state of Iowa, with approximately 12,000 school
teachei's, how much would such a system cost the state? And what rules should be
inaugurated at the start which may be at once consistent with the security of those
who contribute and with the dignity and honor of the state.? for when once the state
accepts the contributions of these teachers and enters into a contractual relation with
them, it cannot insert into the provisions of its pension system a clause reserving
the right to amend the conditions at will. Assuming a constituency of public school
teachers of a state to number 12,000, and that they receive an average salary of
$500, what would the system ultimately cost the state, if it paid one half of the pen-
sions which might accrue under such a simple pension scheme as I have assumed,
namely, a pension system which retired teachers at sixty years of age upon half pay,
the teacher providing one-half of the pension.?

This question is the hardest of all to answer. The wisest actuary can make only
a guess. The chief uncei*tainty arises out of the fact that comparatively few teach-
ers remain permanently in service to the age of sixty. At present the great bulk of
teachers ai^e women. Many of these marry. Others, for one reason or another, drop
out of teaching. The number who take their calling seriously and who will persist to
the end of their active life is, of course, increasing, but any estimate as to the num-
ber who will ultimately earn pensions under such a plan is subject to large error.

In Virginia, for example, the men teachers in the calling at the age of sixty form
about 5 per cent of those who started; if there had been no retirements, they would
be about 60 per cent. Similarly for women teachers, those at the age of sixty form

74 THE BUSINESS OF THE YEAR

about 16 per cent of those who started, while had all persisted to the age of sixty
except those removed by death, the percentage would be 67. As the women teachers
far outnumber the men, it may be said roughly that the fluctuations lie between 15
per cent at the present time and a possible 65 per cent. The statistics for Illinois are
quite near these. Perhaps the assumption of 40 per cent, the arithmetical mean of
these two limits, would be as close an approximation to the facts a generation hence
as could be made. Such a school system of 12,000 teachers at an average pay of $500
and paying pensions on the basis assumed would therefore develop a charge upon
the state treasury of $600,000 a year, which is ten per cent of the salary cost, and
which probably represents approximately the maximum load which a state like Kansas
or Iowa would in the course of a generation assume in adopting such a system. This
load would, of course, be greatly reduced by advancing the age of retirement from
sixty to sixty-five.

The form of pension system here assumed is the simplest possible. It provides a
pension in but one case, namely, that of the individual who has come to the age of
sixty. It does nothing for the teacher who has become disabled at an earlier period,
or for the families of those who died. Such a provision would, however, take care of
that main load which affects both the question of justice and the question of efficiency,
and would go far to solve the wants which a pension system can meet. It will be wise,
in my judgment, for such systems to be formed upon very simple lines, and not to
attempt to meet every individual case, but to provide justly for the one or two great
sources of need which appeal both to our sense of justice and to our ideals of efficiency.

There is one modification of this simple scheme which would add little to the ex-
pense, but which would cover practically all that a pension system for public school
teachers should at this time attempt to do, that is, the pajmaent of a proportionate
pension for a given length of service in case of disability. For example, a state might
well afford to pay, after fifteen years of service and of contribution, an agreed-upon
proportionate pension to the teacher who had broken down in its service.

These general principles will, I believe, be found to cover the essentials of a state-
wide pension system for public school teachers. Such pensions undoubtedly are to be
paid. Both our sense of justice and our ideals of efficiency demand it. The danger is
that they will be begun under unwise and imperfect conceptions, which ultimately
will defeat, or at least retard, as was the case in New South Wales, the whole move-
ment. The one word which needs to be spoken to any association of teachers and to
any body of legislators who are to deal with the question is, to take no step with-
out sound actuarial advice, and to make use of the rich experience of the past which
is now available.

As pension systems become numerous, it will be desirable to arrange some equitable
plan for the reciprocal exchange of contributions and liabilities, so that a teacher,
transferring from a school under one pension system to a school under another sys-
tem, will not lose the accumulated right to a provision in old age.

A FEASIBLE PENSION SYSTEM FOR PUBLIC SCHOOLS 75

In the minds of many there will still remain the question whether, in the light of
what the Federal Congress has done in the matter of civil war pensions, any state
government can be trusted to control such a relief system, free of politics. The Com-
mission on Economy and EiRciency appointed by President Taft recommended as
a plan of retirement for civil employees of the Federal government a system of
annuities supported from the contributions of employees alone, based upon the age
of entrance into the service ; the maximum annuity to be $600. The government is to
provide for the accrued liabilities in excess of eight per cent of the employee's salary,
and to guarantee four per cent upon the contributions of the employees. The system
will apply to government employees in the District of Columbia only. The plan, which
has been worked out in most complete actuarial form by Mr. Herbert D. Brown
of the Department of Commerce and Labor, contemplates the return to an employee
leaving the service prior to the age of retirement of all contributions with interest
at four per cent compounded annually, and the return to the legal representatives
of an employee dying either before or after retirement of the amount in hand not yet
paid out to him in annuities, with interest. The retiring age is seventy.

This plan is really not a relief plan, but a system of compulsory saving. The Com-
mission was evidently strongly influenced in its conclusions by the fear that any pen-
sion system administered by Congress which involved a payment by the government
of even part of a retiring allowance would be subject to political abuse. No one famil-
iar with the history of civil war pensions can doubt the possibility of such a misuse
of public money. The civil war pension history constitutes our greatest political
scandal. To Congress and to the country it has been a source of untold demoraliza-
tion, and the presidents of the United States share with Congress the responsibility
for this legislation. Except Grover Cleveland, no President of the United States has
shown courage in the face of a pension bill. The tale is told briefly in the following
summary :

When the civil war began there were on the pension roll of the government
10,700 names at an aggregate annual expenditure of $958,000. Congress passed an
act on July 22, 1861, extending the pension privileges of soldiers of the regular army
to volunteers who were wounded or disabled while in the performance of service, but
as this hastily drawn law did not cover the volunteer enlistments of April 15 and
May 3, 1861, nor in the opinion of Attorney-General Bates open the pension rolls
to the widows of volunteers killed in the service, it was necessary for Congress to
provide careful legislation to meet the needs arising from the civil war, and not
leave the new pension situation to be met by such obsolete statutes as those of 1802
and 1813.

This comprehensive legislation was enacted on July 14, 1862, and formed for nearly
thirty years the basis of all pension legislation and adjudication. It provided for
moderate pensions to all former soldiers disabled either by wounds or by disease
while in the performance of military duty after March 4, 1861, for pensions to the

76 THE BUSINESS OF THE YEAR

widows of those dying by reason of such wounds or disease, and for pensions to de-
pendent relatives. This legislation was enlarged and increased in details by acts of
1866, 1868, and subsequent years, but the principle upon which it was constructed
remained unaltered. By the year 1887 the total expenditure for pensions had risen
to $73,000,000 annually.

In that year, after a period of agitation by those interested, the Forty-ninth
Congress was induced to pass a new bill that radically changed the basis of pension
administration. Under this bill pensions were no longer confined to those disabled
by wounds in battle or by disease contracted in the service, and to the widows of
those dying from such causes, but any person who had served ninety days in the army
or navy, and was disabled from any cause, no matter how or when occurring, was
made pensionable. Any widow of a soldier who had served ninety days was also pen-
sionable if her annual income was less than $250, and she had been married before
the passage of the act. President Cleveland vetoed this bill, the only instance on
record of a presidential veto of general pension legislation, on the ground that the
duty of the country was discharged by providing for those who suffered by reason
of injuries received while defending it, and that there was no obligation on the part
of the government to constitute the soldiers of the civil war into a special privileged
class who would always be taken care of even when their military service had left
upon them no injurious effects. The House of Representatives failed to furnish the
constitutional two-thirds majority necessary to pass this bill over President Cleve-
land's veto.

Such a bill, however, passed the Fifty-first Congress, and was approved by President
Harrison on June 27, 1890. The annual pension expenditure, which in that year stood
at $106,000,000, was increased under this new legislation until by 1898 it mounted
to $144,000,000. A natural decline then set in, but was checked by the enactment
of new legislation by the Fifty-sixth Congress, approved by President McKinley
on May 9, 1900, enlarging the benefits of the act approved by President Harrison.
This new act and the pensions resulting from the war with Spain brought the annual
pension roll up again to $141,000,000.

The lapse of more than forty years since the close of the civil war began again,
notwithstanding these new increases, to reduce the pension expenditure of the gov-
ernment, when in the administration of President Roosevelt another series of pen-
sion extensions took place. Mr. Roosevelt widened the intei-pretation of the existing
laws by executive order, and on Febixiary 6, 1907, and on April 19, 1908, approved
new pension acts of the Fifty-ninth and Sixtieth Congresses. By the first of these
acts all necessity for disability in the veteran, even resulting from causes arising in
civilian life, was swept away, and the civil war soldiers were placed upon a simple old
age pension provision. All soldiers who served ninety days and had amved at the
age of sixty-two were pensionable, the rate of pension to rise in successive gradations
at more advanced ages. By the latter act many of these service pensions were increased

A FEASIBLE PENSION SYSTEM FOR PUBLIC SCHOOLS 77

fifty per cent in amount, and widows were pensionable without regard to their pecu-
niary condition. Up to June 30, 1911, 67,801 pension certificates had been issued
under the act of 1908, and for that year the act of 1907 controlled an expenditure
of $61,000,000, and the act of 1908 of $32,000,000.

Thru this new series of legislation the total expenditure of the government for
pensions rose in 1909 to the sum of $161,000,000, its high-water mark. The lapse,
however, of more than a generation since the civil war once more began to counteract
the liberality of Congress, and for the fiscal year ending June 30, 1912, the expendi-
ture had fallen to $152,000,000. But on May 11, 1912, President Taft approved an act
of the present Congress increasing the rate of the flat old age pensions at the various
age stages and also of the pensions granted under the fundamental act of 1862 to
those disabled in the performance of military duty. It is estimated by competent
authorities that this latest act will raise the total annual pension expenditure of the
government considerably beyond even the maximum expenditure of $161,000,000
attained in the last year of President Roosevelt's administration.

The outcome of these various acts is that nearly fifty years after the closing of the
war there is a civil war pension roll of 801,998 persons, with a cost to the people
of the United States in 1911 of $148,000,000. Such a monument to legislative and
executive weakness was never raised by any other people.

It may be added that simultaneously with this general legislation, each successive
Congress for many years has passed many special acts extending to individucds by
name pension privileges or increasing the rates of pension. President Cleveland vetoed
several hundred of these special bills, but his example has not been followed by his
successors. The Sixty-first Congress, which sat during the first half of President Taft's
administration, enacted 9649 of these special acts granting or increasing individual
pensions, which was 3049 more than any previous Congress had ever passed.

Will a state legislature and a state governor administer justly a matter in which
the general government and the chief executives have been so weak.?

In answer to this it may be said that a pension system in which the employee con-
tributes does not present the same opportunity for political exploitation that the
civil war pensions have presented. The man who believes in the futiu^ of his country
and in democratic progress will be slow to admit that either Congress or the state
governments will be found permanently incapable of carrying out so simple an obli-
gation. If our democracy cannot learn from such an experience as that of the civil
war pensions, it is helpless to solve the problems that confront it on every hand.
In any event, the argument that our government is not honest enough to conduct
a justly planned relief system for its employees is a weak reason for inaugurating an
unsatisfactory system.

THE PENSION SYSTEM OF THE CARNEGIE FOUNDATION

While a contributory system seems, both fi*om the moral and the economic point of
view, the right method of establishing pensions, this plan was for various reasons an
impossible one for the trustees of the Carnegie Foundation to adopt. In the first place,
the teachers in the separate colleges were not in the employ or subject to the influ-
ence of the Foundation. The inauguration of a compulsory contributory plan would
have been impossible for any outside agency, and experience has shown how com-
pletely the voluntary contributory plan fails of its objects. Other weighty objections
lay in the way. But even if they had been removed, an insuperable difficulty was
presented by the form of the gift itself. By the terms of this gift, the income of the
Foundation was to be spent in providing pensions for teachers who had served their
generation unselfishly upon salaries which made a provision for old age almost impos-
sible. To have begun a system of pensions which called forth at once an additional
expenditure on their part would have been repugnant to the idea of the endowment.

The process by which the trustees were led to adopt the present rules and form of
administration may well be set down here, since it will illustrate both the difficulties
that had to be met and the methods that were adopted in the effort to deal with them.

The most far-reaching and important decision was with regard to the character of
the pensions to be paid. The trustees decided at the beginning that these pensions
should be of the stipendiary character, — that is to say, they should have relation to
the salaries paid, and should represent a sufficiently adequate proportion of the active
pay to enable the teacher on a pension to maintain a plane of living approximating
that to which he had been accustomed. In accordance with the rule carrying out this
idea — the retiring allowance being one-half of the average salary for the past five
years, plus $400 — the teacher on a very low salary gets a much larger proportion
of that salary as a pension than the teacher on a large salary. Thus a teacher receiv-
ing a salary of $1200 receives as a pension $1000, or 83 per cent of his active pay;
a teacher on a salary of $3000 receives $1900, or 63 per cent of his pay ; while a
teacher on a salary of $5000 (of whom unfortunately there are very few) receives
a pension of $2900, amounting to 58 per cent of his pay. As a matter of fact, the
man on the highest salary is likely to find most embarrassment in readjusting
himself to his diminished income.

This decision seems, in the light of experience, to be thoroughly justified. It would
have meant little to offfer to a man like William James or Hiram Corson a pension
of a few hundred doUars, on the scale of the industrial pensions.

This decision, however, is more far-reaching than any other that was made, since,
as was clearly pointed out in the First Annual Report, it sharply limited the num-
ber of pensions that could be granted. With pensions based on the principle of mere
protection from actual want, it would be possible not only to pay a very large num-
ber, but it would be possible also to have great flexibility in the rules and to per-

THE PENSION SYSTEM OF THE CARNEGIE FOUNDATION 79

mit of exceptions without serious consequences. I think, however, it is clearly admitted
by all teachers that a few hundred adequate pensions at the service of teachers is far
better than some thousands of very small pensions.

The trustees were thus led to the decisions that the system of pensions inaugurated
by them should be upon a non-contributory and a stipendiary basis.

With these fundamental questions decided, the next step was the framing of
rules under which the pensions to be paid on the basis determined upon should be
awarded. Three plans were considered: (1) To use the income of the endowment to
assist colleges in forming pension funds. (2) To receive applications from individual
teachers in all colleges and vote as many pensions as the income of the endowment
would furnish. (3) To admit a limited list of institutions to the permanent privileges
of the pension endowment.

The first of these plans presented many advantages from the standpoint of the
trustees and also of the colleges themselves. It relieved the trustees of any question
of discriminating between different teachers. It provided a financial policy that in-
volved no difficult questions. In the course of a long series of years it would have
proved influential in the establishment of pension systems. On the other hand, the
objections to this plan were so serious as to make its practical execution very doubt-
ful. In addition to all these, the plan seemed clearly outside the scheme laid down by
the founder of the endowment. His wish and instructions were to use the income in
the payment of pensions for teachers. The contribution that the Foundation could
have made for pensions under the first plan would have been merely the interest from
its endowment distributed in gifts to college endowments, which would have estab-
lished only from a dozen to a score of pensions each year. Even if such a solution
had been legally possible, it would have been disappointing alike to the founder and
to American teachers. Under the terms of the gift it seemed clear that the trus-
tees must use the income of their endowment for the actual payment of pensions to
teachers. The suggestion made to the trustees to distribute the endowment itself to
the colleges was of course legally impossible.

There remained, therefore, two plans to consider, — a distribution to individuals
directly upon their own application, or a distribution, under fixed rules, thru the
colleges and universities with which the teachers were connected.

The first plan was again the easy and obvious one. It involved no troublesome
question of discrimination as between one institution and another. It left the chaotic
educational situation in America untouched. In addition, it involved no difficult
financial and actuarial complications. The trustees would have needed simply to sit
as a board, receive thousands of applications from teachers of all grades, and vote
as many pensions as their income permitted to teachers scattered over the whole
country.

The objections to such a solution are too evident to need cataloguing. It would
indeed provide pensions to a few of the class for whom they were designed. But its

80 THE BUSINESS OF THE YEAR

adoption would probably have rendered the general development of pension systems
in colleges impossible for many years to come. The only recommendations of the plan
were that it was easy and safe.

* The trustees in the end adopted the last-mentioned plan, under which pensions
are paid to teachers in a selected list of colleges and universities. In coming to this
decision, the trustees were influenced by the knowledge that this great gift had for
its object not merely the paying of pensions, but the dignifying of the profession of
teaching thru such pensions. In order to accomplish that result, it seemed necessary
that the Foundation should be something more than a mere pension agency, — that
it should have an educational character as well. *^

In making this decision, the trustees realized that they were undertaking a diffi-
cult and delicate task, but they deliberately undertook this enterprise in the belief
that thereby they would have in the end the greater opportunity to serve American
education, and therefore serve every American teacher. The matter was set forth
definitely in the first preliminary report to the trustees in the following paragraph
(First Annual Report, pp. 15, 16) : " The members of this Foundation are called
upon to meet a series of questions which have to do with important educational tend-
encies and influences in this country. The establishment and maintenance of such a
fund will be a very simple matter if no effort is made to deal with the question of
educational standards, and if every institution which calls itself a university, a college,
or a technical school is admitted to a share in its benefits. If, however, the Founda-
tion is to be something more than a distributing agency, these important questions
must be met and their solution attempted by the officers and members of this cor-
poration ; and the question which will be at once most interesting and important is
educational rather than financial."

^ The next question that the trustees had to settle concerned the conditions upon
which pensions should be granted. This necessarily involved the question of how
many colleges could be admitted to share in the probable benefits of the endowment.

The answer to this question could be had only by a thorough actuarial study of
the teachers in all the colleges likely to be eligible. It would have required years to
make such a detailed study, and a first attempt at obtaining such information was
made by collecting from the colleges such actuarial statistics as bore immediately
upon the question. Even, however, when the best available material was brought to-
gether, it was clearly idealized that the basis for a definitive actuarial analysis of the
problem could not be established for years, if

In the First Annual Report there is given a resume of the general estimates that
were obtained as to the number of individual teachers at an assumed salary who could
be pensioned under certain assumed rules. Pensions for widows were not included in
this examination, but were subsequently added by action of the trustees.
"4 The rules finally adopted were framed in counsel with various advisors, — actuaries,
twiministrators, teachers, and publicists, — whose general judgment was expressed in

SIX YEARS OF ADMINISTRATIVE EXPERIENCE 81

these words : To make a pension system which shall be absolutely secure for all time to
come would require placing so large a proportion of the fund into a reserve that it
would seriously cripple the benefits which it can axicomplish. Your best plan is to frame
such rules as may seem to your board of trustees to minister most directly to the actual
needs of teachers at this time, and to include in their benefits such institutions as the
rough estimates which have been made would seem to justify, reserving carefully to the
board of trustees the power to amend the rules in the future in such wise as experi-
ence may show to be necessary, and in the interest of the great body of teachers. In
the mean time accumulate during the next eight or ten yeai-s the material for a care-
ful actuarial study of the question of pensions for teachers, who form a class by them-
selves, with an expectation of life likely to be quite different from that used in any mor-
tality table. Finally, have the courage to make the changes when they axe necessary, for
whatever actuarial advice you use, you are pretty sure in the end to be disappointed^—

The rules of the Foundation have been administered practically upon this basis.
The trustees have felt sure that it was better to establish a fair retiring allowance
system in a limited number of colleges than a very poor system in a large number.
A retiring allowance system in which the minimum age of retirement is sixty-five,
with a fair assurance of certainty, is far preferable to one with a much lower retiring
limit, but in which the possibility of retirement is uncertain. Under the light of such
advice as they could get, the trustees have gone ahead to administer the Foundation
upon this general principle.

I attempt to describe in the next sections the results to which our experience has
so far led us.

SIX YEARS OF ADMINISTRATIVE EXPERIENCE

Any study of the actual results attained by a philanthropic organization like the
Foundation will natmully divide under two general heads : first, the results attained
from the social and philanthropic point of view; secondly, the experience derived from
the financial estimates and policy of the enterprise. The actual good that an agency
may do is not necessarily directly related to its financial expectations and experience;
nevertheless, the two are closely interwoven, and every such agency is accountable for
its responsibility, both moral and social as well as financial.

The effort to describe the outcome even for a limited time of the efforts of such an
agency is affected immediately by the point of view as to what such an agency can
and ought to accomplish. Here was a great gift to a selected class of professional
men and women ; its benefits were secured without effort and without cooperation on
their part. What are the moral and social results to be attained from the adminis-
tration of such a gift? What are the needs of teachers that such a gift can meet?
Under what circumstances ought a teacher to be pensioned, bearing in mind not only

82 THE BUSINESS OF THE YEAR

his needs and his desires, but also his sense of independence? Under what conditions
are teachei-s pensionable from the standpoint of the general welfare of society ?

All of these questions came early before the trustees, and in the endeavor to frame
suitable rules they sought to make all such rules as generous as possible. Such mis-
takes as occurred arose primarily out of the desire of every trustee to make the
pension system as available to teachers as it could be made.

In the end, the trustees determined to award pensions to teachers upon two grounds :
First, on the basis of age, at the minimum limit of sixty-five years. Secondly, a smaller
service pension was to be awarded after twenty-five years of service as a professor.

The actual working of these rules can be quite fairly described and judged from
the experience of the six years that have elapsed. The teachers who have retired on
the ground of age have averaged between sixty -nine and seventy years of age, a result
that was anticipated, since sixty-five was expected to be only a minimum age limit. So
far as the life of this Foundation has gone, its experience shows that a teacher does
wisely to continue his work so long as good health and strength remain. In the first
sensations of connection with a pension system, the idea of retirement at sixty-five
has evidently presented itself as very attractive to a number of men, but the experi-
ence of the six years makes it clear that on the whole this age is probably too low
a limit. This inference is borne out by the large number of applications from retired
teachers who, after a year or two of absence from regular work, are ready and anxious
to get back once more into the work of the teacher. The experience of six years
enables the officers and trustees of the Foundation to realize, as they could not real-
ize before, that the value of the pension to the man who approaches sixty-five lies
not in the opportunity to escape from active work at that age, but in the protection
afforded whenever the period of usefulness and strength has passed by. That teachers
are realizing this more and more is also apparent. In the main, and so far as its gen-
eral results go, this rule has worked well. It has worked no demoralization, and while
some men to-day would be better off in their old places in the classroom than on the
retired list, on the whole the rule has abundantly justified itself.

The experience with the second rule has already been fully described in the Fourth
Annual Report. Under this rule any teacher who had been twenty-five years a professor
and who was in an accepted institution could apply for a pension upon a schedule
varying with the length of service. The rule was adopted by the trustees under the
assumption that but few applications would be made under it, and that these would
be in the main applications from men who were disabled for further service. The
intention was in fact to use the rule as a disability provision. The outcome showed
what might have been clearly foreseen at the beginning, that college presidents and
college teachers can no more rise above the ordinary appeal of self-interest than other
educated and intelligent men. After a few years of administration it was perfectly
clear that the rule was doing harm rather than good. It was therefore repealed by
the trustees in accordance with the authority that they had reserved in their hands.

SIX YEARS OF ADMINISTRATIVE EXPERIENCE 88

and was converted into a definite disability rule for the benefit of those whom a
physician's examination shows to be so far disabled as to be unfit for the work of
a teacher.

The experience with this rule has served to throw some light upon the question as
to what sort of man may rightly be pensioned from the income of such a gift, having
regard alike to the responsibility of the trustees, the interest of the individual, and
the rights of the public. For example, is it to the advantage of society and of educa-
tion that a man in middle life, in the possession of health and strength, should be
pensioned from a teacher's pension fund ? It seems clear from the experience of to-day
that no man ought to be pensioned under such circumstances unless his pension has
been paid for by himself under a fair contributory system. It is neither for the well-
being of society, nor for the advantage of the individual, that he should be given a
pension at the most productive period of his life, merely because he has for twenty-
five years been a teacher, however distinguished his service may have been in that
field.

A similar question, and one long discussed by the trustees, arose in regard to the
pensioning of men and women of comfoi'table means. The trustees were conscious of
the responsibility that they owed as administrators of a gift intended for teachers who
really needed its help ; nevertheless, they felt that there was a most serious objection
to attaching to the rules any condition that suggested a poverty discrimination in
the assignment of pensions. Accordingly the rules have said nothing with regard to
whether the teacher were poor or rich, in needy circumstances or well to do. It has
left the question absolutely to the individual himself to settle. In most cases the pen-
sions due under the rules have been applied for and accepted without regard to the
circumstances of the individual. In several instances teachers have written that they
would not apply for allowances because of their possession of an adequate or a modest
income and of their feeling that in a gift such as this they should not take for their
greater comfort pensions that would mean gi*eat relief to more needy teachers. Few
such experiences, however, have come to the trustees.

While the trustees have sought, and rightly sought, to have teachers in the accepted
institutions feel that the pension is a thing earned and not a charity, nevertheless
it ought to be said that the acceptance of it does not stand quite upon the same basis
as the acceptance of a salary, nor have teachers appreciated quite fully the fact that
their own attitude toward this gift and its use would have its effect upon educational
giving and the estimation that the world puts upon the motives and ideals of teachers.
The Foundation would not in any respect diminish the feeling that the teacher in an
accepted institution may accept the pension as a right, not as a favor. None the less,
it still remains true that this is a free gift, and that the well-to-do man who accepts it
thereby makes it impossible to extend the help of a pension to some one who really
needs it.

To one who, from the nature of his duties, is compelled to see the darker side of

84 THE BUSINESS OF THE YEAR

pension administration, who now and again is almost inclined to doubt the wisdom
of any pensions save those obtained by the individual's own eflfbrt, the pensions that
have been given to the widows of teachers present themselves as on the whole the
most satisfactory and helpful that the Foundation has disbursed. The woman who
is left in middle life with a helpless family to provide for is in no danger of being
corrupted by the modest pension that she receives. To the older woman whose
family responsibilities have been in a measure diminished, it still means the difference
between dependence and independence. The pensions to widows have on the whole
seemed to bring the lai'gest measure of help and comfort with the smallest possible
consequences of an undesirable nature.

In the main and speaking at large, the moral and social results of the pensions to
teachers seem to me to have had a satisfactory result. Now and again the selfish side
of human nature has appeared ; there have been those who have been willing to look
at this gift, not from the standpoint of its intended service to men and women of
unselfish and useful life, but from the standpoint of how much they could get out
of it. It has been discouraging at times to find men in the early fifties, in the prime
of health and strength, applying for pensions upon trivial and selfish grounds in order
to escape from teaching. But on the whole these instances have been no more numerous
than must be expected from any group of educated men and women. It would be
unfair to expect of the teacher a higher standard of unselfishness than of other pro-
fessions. On the whole, the pensions, as they have been administered, have been used
by men and women who have led useful and self-sacrificing lives, and who have come
upon old age oftentimes with health broken and in nearly all cases with practically
no financial support. But of all the fruitage of this giving, none has been quite so
sweet as the gratitude and appreciation of the intelligent, devoted, self-sacrificing
mother, who, left helpless with a family, has found in this assistance the means to
educate and to establish in life the children for whom unexpected misfortune has
made her alone responsible.

Looking back over the experience of six years, it is clear that the direct and
immediate contribution of the endowment is the payment of a living pension to
teachers who have really earned it by long service, and the payment of pensions to
the wives of teachers who are left in straitened circumstances. It wgus perhaps inev-
itable that the trustees themselves and teachers generaUy should expect more of the
endowment than any pension agency can perform. The somewhat hazy anticipation
on the part of many of retiring in the fifties and spending the rest of their lives in
a gentle exercise of literary art or of scientific research is visionary. The anticipation
of college presidents that inefficient men could be disposed of by a pension has proven
another delusion. The anticipation of the trustees that scientific research could be
stimulated by a judicious use of retiring allowances seems to me to fall in the same
category. And the reasons lie in the essential qualities of human nature and in the
limitations of the things that money can do. If the endowment of the Foundation

SIX YEARS OF FINANCIAL EXPERIENCE 85

were unlimited, it would still be a misfortune to pension teachei*s except on the basis
of a life spent in teaching. To retire men in the fifties when they themselves get tired
of work or the college authorities feel their services are no longer efficient would be
equally demoralizing to the college and the individual. Complicated human prob-
lems cannot be solved by so simple a formula. Even the encouragement of research
has proved a by-product very difficult of attainment. The idea that a man of fifty-five
who has done no research for years will be quickened into activity by the free-
dom of a pension is without a true basis. On the other hand, if the man is active in
research, he is better off in nearly all cases in continuing his university connection.
The trustees realize to-day as they could not six years ago the limitations of such an
endowment and its possibilities for harm as well as for good. So long as the income
is used to pay pensions to teachers who have grown old and have passed the period
of usefulness in the service, or to provide pensions for teachers who after long ser-
vice are absolutely broken in health, or for the widows of such men, the expenditure
does good, not harm. To go beyond this is to tread upon questionable ground. But
the realization of this is something that only experience can show. No such experi-
ment in pensions, provided by the free gift of one man, had ever been made before.

There is one by-product of the pension system of the Foundation that stands upon
a somewhat different basis, namely, the educational service that the Foundation has
sought to combine with the pension system. Of this I endeavor to speak in a later
section.

I turn now to a consideration of the light that the experience of the last six years
throws upon the actuarial and financial problems of pension administration.

SIX YEARS OF FINANCIAL EXPERIENCE

The trustees who undertook the management of this gift entered upon a work for
which there was little financial guidance from past experience. No such trust had
existed before, and no one was wise enough to foresee either its social and moral effect
upon the teachers themselves, or the financial load that would ensue upon anyapsumed
theory of administration which involved the payment of definite pensions.^Tie esti-
mates of the cost of pensions for a given number of teachers were presented in the
First Annual Report. These estimates were attempted from various points of view,
such as the experience of pensioning army officers, the estimates from actuarial com-
putations, and the like. All of these involved numerous assumptions as to the age
at which teachers would apply for pensions, as to the possible increase of the salary
lists, as to the mortality tables, and numerous other factors. The first statistics col-
lected in 1905-06 revealed at once the preponderance of young men in the colleges
and universities. The majority of teachers were below forty. As might have been an-
ticipated, the state universities showed a smaller proportion of elderly men than the

86 THE BUSINESS OF THE YEAR

endowed colleges. But even in these latter, the distribution of ages had no resem-
blance to that of a stationary population ; that is to say, to one in which for a genera-
tion the accretions have balanced the withdrawals, the births balancing the deaths.
The question whether this anomaly would continue for an indefinite period in the
future was one that it was impossible to answer. In an extended period of time, with
stable conditions in the colleges, it would naturally be assumed that the ages would
more nearly approximate the conditions of a stationary population. On the other hand,
during the whole of our college history, only a few of those who have entered college
positions have remained permanently in college work, and as additions to the college
staff come almost entirely from the ranks of younger men, the actuarial problem is
one entirely different from that of the ordinary actuarial estimate. Even in our oldest
colleges and universities this situation still holds. How long this condition of affairs
wiU continue it is very difficult to estimate. Doubtless in a generation the staffs of
our colleges will begin to adjust themselves somewhat more nearly to that of the
stationary population. The tendencies will be in that direction. The greater security
of the teacher's place wUl have its influence in inducing men to remain permanently
in the profession of teaching. But how rapidly such a condition wiU come about is
a question upon which we can only speculate.

The examination of the preliminary statistics at the beginning of the Foundation's
work brought out many other interesting facts. For example, while the faculties of
the colleges and universities were made up so largely of young men, there was notice-
ably in the older colleges a considerable group of quite old men who, in the absence
of a pension system and particularly in the absence of any pensions for their wives,
remained in active service. In the accepted institutions, and in a number of those
not on the accepted list, these men have since been transferred to the pension roll of
the Foundation, so that in a number of institutions to-day the proportion of elderly
men is smaller and the average age of the members of the staff lower than it was six
years ago.

The First Annual Report sets forth the rough estimates that were possible from
the first statistics collected. It is now possible to make some comparison with these
expectations.

The average estimated pension was there stated to be $1450. The general average
of all retiring allowances in force at the end of the year 1912, six years after the
Foundation was established, was $1676.66. This discrepancy is due to two facts, —
first, to an actual general rise in salaries, and second, to the fact that the salaries in
institutions on the accepted list, from which most of the pensions are drawn, are in
excess of the average salary of the three hundred and more colleges upon which the
original estimates were based. This difference will grow in the future as salaries rise,
and will, of course, operate to diminish the possible number of pensions that can be
granted from a stated income.

In the First Annual Report there was given an approximate estimate of the nam-

SIX YEARS OF FINANCIAL EXPERIENCE 87

ber of institutions and the number of teaxihers for whom pensions could be maintained.
These estimates were sought not only from actuarial data, but also from a compaiison
of the experience of other pension systems, for example that of the army. The gen-
eral conclusion there given was that a pension system approximating that adopted
could be maintained at a cost of somewhere between 7 and 10 per cent of the salary
roll, and that an income of $500,000 would maintain such a system for a group of
between 3000 and 4000 teachers.

From its first pension payment, on July 25, 1906, to the end of the fiscal year on
September 30, 1912, the Foundation had distributed $2,077,813.64 in retiring allow-
ances and $238,590.36 in widows' pensions, a total distribution of $2,316,404. Of
this $1,650,035.42 was paid through the 72 institutions now on the accepted list;
$666,368.58 was paid to individuals connected with institutions not on the accepted
list. Most of these latter grants were made during the early years of the Foundation.
Now that its policy has matured and its funds are approximately used by the demand
from the accepted institutions, no new grants are made to persons who are not con-
nected with these institutions, except to the widows of those who have been in receipt
of allowances.

In all, 429 retiring allowances and 90 widows' pensions have been granted. Of these
98 have terminated through the death of the recipients and 23 temporary allow-
ances have expired, leaving 315 allowances and 83 widows' pensions now in force. The
amount being distributed to these on September 30, 1912, was $570,423.03 annually,
the retiring allowances averaging each $1676.66, the widows' pensions $912.11.

In all, the benefits of the Foundation have been extended to teachers in 155 dif-
ferent institutions, including all of the 72 institutions on the accepted list, with two
exceptions, and including also the following 79 institutions not on the accepted list :

Adelphi College, Brooklyn, New York; University of Alabama, Tuscaloosa; Alfred
University, Alfred, New York; Allegheny College, Meadville, Pennsylvania; Antioch
College, Yellow Springs, Ohio ; Atlanta University, Atlanta, Georgia; Beaver College,
Beaver, Pennsylvania; Berea College, Berea, Kentucky; Bethany College, Bethany,
West Virginia ; Bishop Spencer College, St. John's, Newfoundland ; Brown Univer-
sity, Providence, Rhode Island ; Buchtel College, Akron, Ohio ; Butler CoUege, In-
dianapolis, Indiana; Clemson Agricultural College, Clemson College, South Carolina;
University of Colorado, Boulder; Cooper Union, New York City; Cornell College, Mt.
Vernon, Iowa ; Elmira CoUege, Elmira, New York ; Fisk University, Nashville, Ten-
nessee; Franklin College, New Athens, Ohio; Furman University, Green viUe, South
Carolina; George Washington University, Washington, D. C; University of Georgia,
Athens ; Grove City College, Grove City, Pennsylvania ; Hanover College, Madison,
Indiana; Hillsdale College, Hillsdale, Michigan; Hiram CoUege, Hiram, Ohio; How-
ard University, Washington, D. C; University of lUinois, Urbana ; State University
of Iowa, Iowa City ; Iowa State College of Agriculture and Mechanic Arts, Ames;
Jefferson Medical CoUege, PhUadelphia, Pennsylvania ; University of Kansas, Law-

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90 THE BUSINESS OF THE YEAR

rence ; State University of Kentucky, Lexington ; Lafayette College, Easton, Penn-
sylvania ; Lake Erie College, Painesville, Ohio ; Lake Forest College, Lake Forest,
Illinois ; Lemoyne Normal Institute, Memphis, Tennessee ; Lombard College, Gales-
burg, Illinois ; University of Maine, Orono ; Marion Military Institute, Marion, Ala-
bama ; Massachusetts Agricultural College, Amherst ; Miami University, Oxford,
Ohio ; Mills College, Mills College, California ; University of Mississippi, Oxford ;
University of Montana, Missoula ; University of Nashville, Nashville, Tennessee ; Uni-
versity of Nebraska, Lincoln'; University of New Brunswick, Fredericton; University
of North Carolina, Chapel Hill; North Carolina College of Agriculture and Mechanic
Arts, Raleigh; University of North Dakota, Grand Forks; Ohio University, Athens;
Ohio State University, Columbus ; Olivet College, Olivet, Michigan ; University of
Oregon, Eugene ; Oregon Agricultural College, Corvallis ; Pacific University, Forest
Grove, Oregon; Park College, Parkville, Missouri; Pennsylvania State College, State
College; Pritchett College, Glasgow, Missouri; Randolph-Macon Woman's College,
I^ynchburg, Virginia; Roger Williams University, Nashville, Tennessee; Rollins Col-
lege, Winter Park, Florida; School of Mining, Kingston, Ontario; University of South
Carolina, Columbia; South Carolina Militg,ry Academy, now The Citadel, Charleston,
South Carolina; Susquehanna University, Selinsgrove, Pennsylvania; Tabor College,
Tabor, Iowa; Talladega College, Talladega, Alabama; University of Tennessee,
Knoxville ; Transylvania University, Lexington, Kentucky ; Virginia Military In-
stitute, Lexington ; Virginia Polytechnic Institute, Blacksburg ; Washington and
Lee University, Lexington, Virginia; Western College for Women, Oxford, Ohio;
West Virginia University, Morgantown ; William and Mary College, Williamsburg,
Virginia; WofFord College, Spartanburg, South Carolina.

Allowances were also granted to persons connected with the Federal Bureaus of
Education and of Ethnology, the Carnegie Institution of Washington, the Coun-
cil of Higher Education of Newfoundland, the Department of Education of Prince
Edward Island, and the Southern Education Board.

The table on pages 88, 89, presents the payments made thru the 72 institutions
on the accepted list, with the payments for the last year compared with the expendi-
ture for salaries of the instructing staff as this was reported by each institution and
printed in the Second Bulletin in 1908. Various changes have, of course, occurred in
institutional salaries since that date, but not such as to change greatly the general
ratio between them and the pensions.

The results show that for the accepted institutions, which have for some time made
use of the pension system, the cost now amounts in general to about four per cent
of the instructional salary roll.

The difficulty of obtaining accurate statistics from so many institutions organized
under such varying conditions is much greater than one would imagine. It has taken
about one year for the Foundation to obtain from the institutions on the accepted
list the actuarial and financial statistics necessary to afford a fair basis for future

SIX YEARS OF FINANCIAL EXPERIENCE 91

computations. In addition, the statistics gathered in 1905 are not strictly compar-
able with those gathered more recently. Both the officers of the Foundation and the
college authorities had to gain not only knowledge of what was required, but also
experience in obtaining the desired data with accuracy. A comparison of the lists of
teachers offered in 1905 with those in 1911 shows, however, two tendencies, both of
which work to increase the pension load above the estimates. The first is the actual
growth in the number of teachers. This is by no means so great as has been supposed.
The increases in instructing staffs have come in the main in the grades of assistant and
instructor. The faculties have increased in these five years but little. Another process
has gone on, however, which was perfectly natural and perhaps inevitable, with the
effect also of increasing the load above the estimates. In the accepted institutions there
has been created a very natural desire to bring every man in the institution under the
pension system. Titles have therefore been adopted to conform to the definitions of
the rules of the Foundation, so as to make eligible in name many more men in most
institutions than the rules were originally designed to include. Where the title of the
permanent expert employed in the institution did not nominally bring him under
the retirement rules, the tendency has been to change the title to one that conformed
with the requirements of the rules for retirement. Practically the only men of expert
character who hold permanent positions and who are now specifically excluded are
those holding non-teaching places of a business character and those teachers in pro-
fessional schools who engage in the outside practice of their profession. All institu-
tions have sought to include practitioners of dentistry, pharmacy, physical training,
engineering, medicine, and music, as well as a large number who have no fixed academic
rank, such as custodians, curators, and library and office assistants of all kinds. In one
institution nearly one hundred names have been added to the list originally furnished,
merely by change of title. How much the eligible list has been enlarged by this pro-
cess, it would be difficult to say, but the process has operated to swell the nimiber of
those nominally in line for a pension, provided they afterward comply with the con-
ditions of service and age. Here again, however, one deals with a matter that cannot
be settled on a strictly actuarial basis. The real purpose of the Foundation is to serve
the teachers in these institutions. The extent to which it can go in seeking to accom-
plish this end is something that experience alone can determine.

In such actuarial computations as were originally maxle, the mortality table of the
English Institute of Actuaries was employed. In the later computations, the McClin-
tock table of mortality, derived from the lives of annuitants, was employed. As set
forth in the Fourth Annual Report, the differences between the two are not great in
the ages above sixty-five. The mortality experience of the Foundation has, of course,
extended over a very few years. Up to this time the mortality has fallen below even
the McClintock tables. Whether this indicates a lower rate of mortality for teachers
can be determined only by the experience of a larger number of years. The sub-
ject of the mortality for teachers is one which has received some attention at the hands

ActiMl Deaths

Men

10.71

Women

8.72

m THE BUSINESS OF THE YEAR

of actuaries, but concerning which there is still little definite information. Further-
more, it is not at all sure that the lives of teachers in the public schools, for exam-
ple, are comparable in length to those in colleges and universities. In this connection
the experience of the pension system for the government school teachers of Great
Britain is of interest. The system embraces all teachers in government schools in
Great Britain and provides for an actuarial examination and report every seventh
year. The last actuarial report in 1907 brought out a startling discrepancy between
the computed death rate and the actual death rate. The discrepancy is set forth in
the following table according to the tables of the British Institute of Actuaries :

Death Expectation
22.25
23.97

The actuary very well says: "These results are startling," but, as he points out, the
discrepancy is probably due in part to the insufficiency of records and the omission of
deaths which have occurred, particularly among younger teachers. Certainly, com-
putations which are as wide of the mark as these serve no purpose whatsoever as a
basis of actuarial computation. In spite, however, of the mistakes which probably
are inherent in the figures, they illustrate one of the uncertainties of dealing with
the pension problem. This factor also has operated to increase the Foundation's load
above its estimates. The growth of the load coming from the accepted institutions is
shown in the following table :

Number of Total Number of Pensions Annual Cost of

Tear Institutions in Force at End of Year these Pensions

19061 53 51 $77,935

1906-7 *5 89 ' 129,855

1907-8 69 135 203,290

1908-9 67 205 313,985

1909-10 71 237 382,120

1910-11 7» 267 425,105

1911-12 7« 297 478,440

From this table it appears that the Foundation is now paying at the annual rate
of $478,440 for pensions in the 72 accepted institutions. Its total income, when
the whole of the gifts already made to it by the founder are paid in, will amount to
approximately $800,000. In other words, about sixty per cent of the income at
present available is now used by the accepted institutions. In time this limit will, of
course, be reached. When that time comes, if the endowment is not increased, the rules
will of necessity have to be modified to meet the conditions ; in other words, the age of
retirement will have to be raised.

Some light on the ultimate possible load which may arise from pensions in the

' July 1 to September 90.

SIX YEARS OF FINANCIAL EXPERIENCE 93

accepted institutions is afforded by an examination of the careful statistics just gath-
ered by the Foundation at the end of the first five years of its history. The collec-
tion of these statistics and the necessary correspondence incident to obtaining them
in definite form occupied about one year. They are applicable as of date June 30,
1911. At that time there were 72 institutions upon the accepted list. Thei-e were,
however, only 71 separate groups of instructors, since Radcliffe College has no sepa-
rate faculty.

In these institutions there were, on the date mentioned, 5025 teachers in active
service, including all professors, assistant professors, and instructors who may ulti-
mately claim pensions. Of those, 494 or 9.8 per cent were women, and 4531 or 90.2
per cent were men. The load which may come upon the Foundation from the two
differs. In the case of a male teacher the probability of a pension for a widow as well
as for himself is involved. This is what the life insurance companies call a joint risk.
The two classes would therefore need to be considered separately.

The average retiring allowance granted to a male teacher in the accepted insti-
tutions during the past six years has been $1883, the average allowance to a woman
teacher retiring under the same rules has been $1202, the difference being due entirely
to difference in salary. Excluding the women teachers, and excluding also the 78 male
teachers who are already over sixty-four and are therefore eligible to retirement if
they should apply for it, there remains a body of 4453 male teachers, all less than
sixty-five years of age, and all occupying positions the retention of which until sixty-
five would entitle them to retiring allowances.

The distribution of this body of teachers according to age is shown in the following

table:

Male Teachers in Accepted Institutions

Age
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
Totel

This analysis exhibits the same characteristic that has been already mentioned —
the preponderance of young men. More than half of these teachers are below forty.

To make these figures available for an actuarial estimate, a number of assump-
tions would have to be made concerning the rate of additions by new appointment*
and of subtractions by death or resignation. These can be known with certainty only
by records extending over a term of years. The preveilence of young men in such num-
bers in our institutions of learning is involved with many other factors of our social

Number

Per cent of Total

1.9

575

12.9

894

20.1

904

20.3

715

16.1

550

12.4

359

8.1

211

4.7

159
4453

3.5
100.0

94 THE BUSINESS OF THE YEAR

and industrial life. A very large proportion of men in the lower grades of the teach-
ing staff look upon teaching, and will for many years continue to look upon it, as
a stepping-stone to other professions. Such crowding of younger men is character-
istic also of any rapidly increasing population of a country or city, altho in our
older colleges there would seem to be no such a priori explanation for the great diver-
gence of the age distribution from that of a normal stationary population. Some
light can be thrown on the question by the computation of the possible load under
the assumption that the number of male teachers remains for a generation at precisely
its present number, that none of the teachers resign, and that withdrawals from the
gi*oup occur only by death or by survival to the age of sixty -five. Should this situa-
tion continue for a generation, so that the group of teachers embraced in these faculties
and instructing staffs assume the position of a stationary population and retirements
continue to be made as they have in the past at the average age of sixty-nine, an
annual load of $1,375,000 a year, including all women pensioners as weU as men,
would ensue. The nature of the problem will be learned only as trustworthy statistics
are accumulated over a period of years. This the Foundation will make it its business
to do. The problem is only partially an actuarial one. The duty of the trustees is to
use the endowment committed to them, or such as may be committed in the future,
in such manner as to serve best the faithful and deserving teacher, to use every care
that the endowment shall do good, not harm, and to have the courage to make from
time to time such changes as experience may show to be necessary, with as little
disappointment to the expectations of possible beneficiaries as the nature of the
problem will permiL

THE EDUCATIONAL FUNCTION OF THE FOUNDATION

Altho realizing that the primary work of this board has been the payment of pen-
sions to teachers under such provisions as were found to be wise, the trustees have
from the beginning devoted a small proportion of the income to educational studies
and to their publication. In some ways this by-product of the pension fund has
been more prominently before the public than the primary purpose of the endow-
ment. While it has encountered both praise and criticism, the trustees have clearly
realized the responsibility of the board in undertaking this work, and I endeavor to
state below the reasons that have influenced them in their action.

The immediate reason for devoting time and money to these educational studies,
at least during the earlier years of the Foundation, arose out of the conviction that
only by such scrutiny of education in the United States and Canada could the board
perform wisely its duty in the distribution of pensions. I have already described in
detail the course of reasoning by which the trustees felt justified in selecting certain
institutions whose professors should most directly share in the pension endowment.

THE EDUCATIONAL FUNCTION OF THE FOUNDATION 95

But nothing was said in this connection concerning the confusion that then existed,
and which still exists to a large extent, in American education, and which was then
illustrated by the fact that altho the Foundation was by its charter limited to pay-
ments to teachers in colleges and universities, the terms **college'' and "univer-
sity" had no definite meaning throughout the country. In fact, six years ago the
large majority of the institutions doing work under the name "college" or "uni-
versity"" were neither colleges nor universities under any educational definition that
would have been accepted by scholars generally.

The confusion lay much deeper than the mere use of names. The colleges and uni-
versities in the various states had no conscious relation to the educational systems
of their states. Most of them recognized no obligation to the general system of public
schools, and except in a few states the colleges and universities did not aim to have
any relation to the public school system. No one could view this situation without
being impressed by the fact that a few simple educational conceptions would go far
to clarify the situation, and it was equally clear to the trustees of the Foundation
that to distribute pensions to colleges indiscriminately, whether they were engaged
in college work or high school work, was to do harm rather than good to the cause
of education, was to belittle rather than to dignify the profession of the teacher. In
a word, the trustees could take one of two positions : either the educational confusion
was none of their business, and they would not undertake to discriminate between
colleges along educational lines, or they could face the actual situation and under-
take to discriminate between the colleges that were doing educational work of real
college and university'grade and those that were not. The trustees conceived their
duty to lead them to the choice of the second alternative. They were convinced that
an educational scrutiny of colleges, universities, and educational conditions in general
was necessary for the right administration of the pension fund itself.

Having decided to make such studies, it seemed equally clear to the trustees that
it was their duty to make their results known to the world. The Foundation has
sought from the beginning to make all of its proceedings public.

A second reason that had weight with the trustees in deciding that the Foundation
should assume an educational function arose out of the absence of any educational
agency having to do with education as a whole throughout the United States and
the Dominion of Canada. It is true that there is a commissioner of education of the
United States government, and that there is an effort to enlarge the functions of this
commissioner. It seemed clear, however, that there was a place and an educational
service for an advisory institution that had to do with education from the standpoint
of the whole continent, rather than from the standpoint of a single institution or
province or state.

This conviction was strengthened by the sharp rivalry that existed at that time,
and still exists to a lessened degree, between institutions of learning. It was believed
that an institution interested alike in all colleges and universities, rather than in the

96 THE BUSINESS OF THE YEAR

success merely of this or that institution, had some advantages in the point of view
from which it might approach educational questions.

A third reason lay in the fact that the Foundation, having been the gift of one man,
with large endowment, with no constituency to depend upon, would have a somewhat
unusual independence and freedom in the publication of educational studies, a freedom
that might be lacking even to a government bureau.

This is well illustrated by the two reports on medical education that have been
issued by the Foundation, the first dealing with medical education in the United
States and Canada, the second with medical education in Europe. One can hardly
imagine that any government agency would feel justified in printing so frankly as was
done in these reports, the ascertained facts concerning the institutions represented.
Certainly, neither a government bureau nor a private institution like a university
would have cared to face the uncomfortable task of printing the truth about these
schools, least of all when it was realized that some of the worst existed under the
shelter of colleges and universities that bore honored names. The trustees believed
that in the point of view which is occupied by the Foundation and in the publicity
it felt itself able to give to its results, such a detached agency had advantages for
educational discussion that few other agencies were likely to have.

It was out of such considerations as these that the trustees felt justified in assum-
ing an educational function, and in spending a small part of their income in its de-
velopment. Whether they were justified in this decision must be settled, after a fair
period of time, by the general judgment of men who know education. It was inev-
itable that such work would produce a certain amount of criticism of the Founda-
tion, and those who have had most directly to do with the work itself have sought
to profit by such criticism. No such agency can object to fair-minded criticism from
any source. On the contrary, those who are responsible should seek to profit by the
independent judgment of other men. There are, however, one or two misapprehensions
concerning the educational work of the Foundation to which I venture to allude.

While the Foundation has been compelled, under its conception of its duty, to
discriminate between institutions, it has used the utmost care to interfei'e in no re-
spect with their freedom or their independent development. In the admission of insti-
tutions to the accepted list, only the most general standards of judgment have been
used, — those that have been approved by the common judgment of the teachers of
the country. Practically the only requirement upon which the Foundation has insisted
for the admission of institutions to this list is the maintenance of such i-easonable
standards of college work as have been practically accepted by all colleges, together
with a sympathetic relation to the general system of education of the state and of the
region in which the college is located. These conditions are so plainly the common
judgment of all men connected with education, that if any basis of discrimination is
to be made at all, none more simple or more just could be found. Such criticism of
educational matters as the Foundation has felt justified in making has refeiTed quite

THE EDUCATIONAL FUNCTION OF THE FOUNDATION 97

as much to the institutions that were admitted to its benefits as to those that were
not, and the Foundation has sought uniformly and in every way to avoid any inter-
ference with the freedom or development of the institutions with which it is connected.
I feel sure that no college professor in these institutions has been conscious of any
new pressure upon him ainsing from the relation of his college to the Foundation.

The problem of discriminating between institutions, and yet of interfering in no
way with their freedom and development, has not always been entirely a simple one.
The difficulties may be illustrated by reference to the matter of academic freedom,
which has again and again been brought to the attention of the Foundation, gen-
erally by the action of some professor in a college or university, who claimed that his
freedom of action was interfered with, and who asked the assistance of the Founda-
tion in his defense. It is a somewhat interesting fact that the men who are quickest to
condemn interference from outside agencies in academic matters ai*e oftentimes the
most ready to use such agencies themselves if they can be successfully invoked.

The answer of the officers of the Foundation to such appeals has uniformly been
that such internal affairs of an institution as the relations between an individual pro-
fessor and his institution were matters with which the Foundation had nothing to
do ; they lay between him and the authorities of the institution itself. Lest this illus-
tration might lead to the inference that cases of interference with the freedom of pro-
fessors were common in American colleges, I venture to add the statement that such
communications came, in nearly all cases, from institutions of low grade, in communi-
ties where the idea of a university or a college was still unformed, and where the tenure
of office of a professor had always been insecure. Even in these cases, the correspond-
ence revealed the fact that the trouble arose in the case of many individuals from an
exaggerated idea of their own importance and their own services. Into such individual
questions the Foundation has never permitted itself to enter. On the other hand,
where a wholesale dismissal of teachers has taken place, as in the University of Okla-
homa, or in the case where a deserving president has been dismissed, as in the Uni-
versity of Florida or the University of Alabama, the Foundation has sought to serve
its function by ascertaining the facts as completely as it could from all parties inter-
ested and then publishing them. Such publicity is, in fact, the only power that the
Carnegie Foundation has the ability to exercise. The thing that many colleges and
universities find hardest to endure is the frank publication of the actual facts concern-
ing them. TJie very first fact that was impressed upon the officers of the Foundation
when they began their studies was that the catalogues of even reputable institutions
seldom afforded a fair estimate of their educational services.

Following the plan that it outlined some years ago, the Foundation hopes to con-
tinue its studies of education. It has in preparation and nearly ready for the press a
first bulletin on agricultural education. The preparation of a study of legal education
has been begun, as has also a similar study on the training of the teacher in the United
States and Canada. Similar studies are planned for the graduate school. Two bulle-

98 THE BUSINESS OF THE YEAR

tins have already been issued upon medical education. It is hoped that a third may
in time be published having to do with dentistry, the training of nurses, and cer-
tain callings intimately related to the practice of medicine. It is hoped also that the
Foundation may be able to keep such studies alive by a reexamination of the ground
at the end of a term of years. For example, an examination of medical education five
or ten years after the first report cannot fail to be of great service. The value, in fact,
of such an educational agency will depend not upon isolated studies which stop with
their publication, but upon a continuing study kept alive by the work of an enthu-
siastic and skilled staff.

I venture also to point out still another feature of these studies which ought not
to be lost sight of, namely, that in whatever department of educational endeavor a
study has been made, the cooperation of those who are most competent in these fields
has been enlisted. For example, in the training of teachers, and the study of agricul-
tural education and of legal education, the Foundation has sought the assistance of
the best minds working upon these problems. In the medical bulletins already pub-
lished, the work was done in cooperation with the most distinguished scholars in both
America and Europe. The results that have been published, therefore, have been by
no means merely the pronouncement of a single individual or of a small group of
individuals; they have endeavored to express, on the other hand, the results of a con-
sensus of opinion on the part of the best authorities upon the subject. The office
that the Carnegie Foundation has supplied has been chiefly that of suggesting the
point of view, and that point of view has been always the interest of education from
the standpoint of the nation and of the race, rather than the interest of an isolated
school or an ambitious university. I apprehend that whatever may have been the
shortcomings of the papers that have been issued, it will still remain profitable to
make such studies from such a point of view.

PART II
CURRENT EDUCATIONAL PROBLEMS

COLLEGE ENTRANCE REQUIREMENTS

The perplexing questions involved in the transition of youth from the secondary
school to the college have occupied much space in previous reports of the Founda-
tion. These questions are still the perplexity of every college and of every faculty.
In no other country does the boundary between the secondary school and the col-
lege present such a spectacle as it presents with us. In other countries the transition
is a natural and an easy one. With us, the border line between the secondary school
and the college resembles nothing so much as a species of border warfare.

In the effort to deal with these problems the Foundation adopted, at the beginning
of its work, the four-year high school as the only common basis upon which colleges
were likely to unite as a means of preparing for college, and it introduced a simple
method of estimating the contents of the high school curriculum. This action was
nothing other than the adoption of the practice of the better colleges and universi-
ties and of the stronger associations which deal with education, such as, for example,
the College Entrance Examination Board.

The principle upon which the measurement was based rested upon the fact that
during each of his four years in the high school a student could pursue steadily three
or four studies at one time, and would accumulate, therefore, on the average, four-
teen such study units during his four yeai"s' course. The chief advantage of using
these units at the time lay in the fact that after their acceptance by the various col-
leges and universities and secondary schools, they formed a common means of esti-
mating the high school curriculum. High schools in one state offered courses one or two
years lower than the high schools of another state. There was no common measure
for comparing the work done in one school with the work done in another. Three
years of English, for example, in the high schools of one state might not be com-
parable in any respect to three years of English in high schools of another state.
The employment of these units not only enabled a comparison to be made, but has
constituted one of the influences making toward uniformity of the high school ciu*-
riculum, so far as the matter of scholarship is concerned.

These units have now served their main purpose. They were never intended to con-
stitute a rigid form of college admission, but merely a means of comparing high
schools. Already the progress in this matter has been so satisfactory that the general
conception of college admission no longer contemplates a certain number of units,
but the completion of a satisfactory four-year high school course.

In no part of the country has the rise in college standards been more noteworthy
than in the South, and in no other region has this been accompanied by a more satis-
factory upbuilding of the secondary schools. This advance has been admirably assisted
by the stronger universities and colleges. In some cases this has required the aban-
donment of a traditional policy long maintained. Thus the University of Virginia,
from its beginning, had maintained the policy of admitting students with the utmost

102 ' CURRENT EDUCATIONAL PROBLEMS

freedom to its classes, depending upon examinations later to exclude the unfit. The
university sacrificed this freedom in order to help forward the conception of an har-
monious educational system in its state and in its region. The Association of Colleges
and Preparatory Schools of the Southern States also added great vigor to the
movement by its support.

On the whole, therefore, it may be said fairly that in the last six or eight years
the problem of admission to college has been much simplified. First, by a greater
uniformity of requirements on the part of the college ; second, by the general accept-
ance of the four-year high school as the preliminary for college ; and lastly, by the
upbuilding, throughout the whole country, of secondary schools fitted to prepare boys
and girls for college. There is to-day, among the great bulk of colleges that have any
claim to consistency, a nearer approach to uniformity in the intellectual standard
required for entrance to college than ever before, and there are far more second-
ary schools throughout the country fitted to prepare students for college than ever
before. These results are of the greatest importance and significance.

Progress toward fair standards of preparation for professional schools has also been
noteworthy, altho not so satisfactory as in the case of the colleges. One great gain
has been that our best universities and colleges have purged themselves of the low
grade professional school that formerly existed. There still remain a few university
schools of law and medicine that require only high school preparation, but the uni-
versity or college which maintains such a school does so in the face of educational
public sentiment.

Low grade law schools and medical schools still flourish, however, as independent
commercial enterprises. Such professional schools can still be conducted so profitably
thru advertising and other commercial m"fethods, that there remain men attracted
to their exploitation for the sake of the gain, and there are also large numbers of
young men desirous of obtaining speedy entrance into what they conceive to be
lucrative professions, who are ready to pay their money to such enterprises.

This is particularly true in law, a field in which even the best schools need a less
elaborate equipment than do the schools of medicine, and in which admission to
practice is not conditioned upon sound professional training. Improvement in these
matters can come only as public opinion in the various states is educated to the
necessity of adequate laws. This movement is advancing, and within a short time
several states have enacted laws requiring more satisfactory training as preliminary
to the practice of law and to the practice of medicine. It is much harder to enact
sound legislation in the case of applicants for admission to the bar than in the case
of applicants for admission to the practice of medicine, for two reasons. First, there
is an impression that an ignorant lawyer may do less hai*m than an ignorant practi-
tioner of medicine. In the second place, the law-making bodies of all the states are
mside up, in the main, of men engaged in the practice of law, who see no reason for
any higher standard than that under which they themselves have succeeded.

COLLEGE ENTRANCE REQUIREMENTS 108

The standards for professional training in other callings, such as those of applied
science, are in most parts of the countiy on the same plane of intellectual require-
ment as is demanded for admission to coUege. Most technical schools require the
equivalent of a four-year high school preparation, accepting, however, somewhat dif-
ferent subjects from those ordinarily required by the colleges. An exception to this
general statement is found in the southern land-grant colleges, which carry on a lower
grade of technical teaching and are content with low entrance requirements.

Looking over the progress made in standards of professional education in the last
six years, however, one must admit that the conditions have enormously improved,
and that, best of all, a sentiment has been created which will, in the future, work
for reasonable standards and for their honest enforcement.

It is one thing, however, to announce entrance requirements equivalent to the com-
pletion of a good four-year high school course, and another thing to enforce such
requirements. The difficulties of the situation are still reflected in the great number
of special students and of conditioned students in all of the colleges, whether they
admit by certificate or by examination.

In former reports, much space has been devoted to an effort to obtain a clear con-
ception and uniform meaning of the terms "special student" and "conditioned stu-
dent." This needs still further attention, particularly in the smaller colleges and uni-
versities. It will be a righteous practice on the part of every college to print frankly
its list of conditioned and special students, and to show clearly who are included
under each designation. The subject has been dealt with so completely in the Fourth
Annual Report that I can do nothing further than refer again to the discussion there.

The special student really belongs to a period whose educational status is different
from that of to-day. The conditioned student presents an entirely different problem.
The former comes from a class who, ostensibly at least, did not have the opportunity
to attend a good high school; the latter comes from a class who did enjoy this
opportunity, but failed to complete the work satisfactorily. The two classes need to
be dealt with upon entirely different grounds. To the special student status should
be admitted only mature students who have lacked the opportunity for the ordinary
preparation. The presence in colleges, under the name of special students, of seventeen
and eighteen year old boys, sometimes bearing well-known names, who come from
communities where there are excellent public and private schools, forms prima facie
evidence that the college is paying more attention to numbers than to its responsi-
bility to the particular student himself and to the other students.

During the evolution which has gone on in the last few years, two distinct tend-
encies relative to the subjects required for entering college have been noticeable. On
the one hand, there has been strong pressure upon the colleges to accept for admis-
sion every subject taught in the high school. On the other hand, this very pressure
has made some colleges more rigid in their requirements than would be the case
otherwise, for the reason that in institutions which attempt intensive work along a

104 CURRENT EDUCATIONAL PROBLEMS

few lines the preparation for such work is necessarily more restricted. It is not easy
for the conscientious college to steer between the extremes of an absurdly large list
of entrance electives and no electives at all, but that is practically what the college
to-day is asked to do. The belief that any subject is the equal of any other sub-
ject in its contribution to intellectual development is widespread. In some ways it is
a very natural reaction from the rigidity of the old methods, and in the long run the
problem will probably be settled by some simplification of the high school course and
the adoption of a reasonable list of entrance electives on the part of the college.

This situation has been much complicated by enthusiasts, bent upon introducing
some new subject into the school curriculum by placing it amongst the college en-
trance requirements. Such an attempt has its serious disadvantages as well as its good
qualities. There is need for good sense and liberality on both sides. Thus the colleges
of the traditional New England type perhaps go to one extreme when they refuse
recognition to any so-called vocational subject when presented for admission, no mat-
ter how well taught. A university, however, perhaps goes to the other extreme when
it prescribes a vocational subject for admission. The schools should not be coerced
thus from above.

Agriculture, as a secondary school subject, is now showing great vitality, and un-
doubtedly the question of its acceptance for admission by the state univei-sities will
soon be general. Here again the study can take care of itself in the secondary school
without any forcing process on the part of the university. It will be time enough to
recognize agriculture in the secondary school when it has passed the awkward and
transitional stage, and has demonstrated its value in intellectual training.

Perhaps, however, the most conspicuous attempt to govern the school curriculum
thru college entrance requirements is afforded by the action of the colleges in the
matter of Latin. For example, Yale University no longer requires candidates for the
arts degree to study Latin in college, but they must study it for four years in order
to get into college. Hence come many of the conditions among the Yale freshmen.
The question naturally arises, since the college no longer requires the study of Latin
of any student after admission, why it should require him to spend one-fourth of his
high school course on this particular study. For no American boy, under the methods
pursued by us, gains in four years a knowledge of Latin sufficient to enable him to
read the language.

Bowdoin, Columbia, Dartmouth, Hamilton, Princeton, Vassar, Wellesley, and Wil-
liams also require the candidate for admission to the arts course to have studied Latin
in the secondary school. All of these colleges, however, except Williams, require either
Latin or some Latin and Greek in the college, which is at least consistent. Amhei*st,
Harvard, Oberlin, Smith, Trinity, and Wesleyan require either Latin or Greek for
entrance to the arts course. Of this last group of colleges, Smith, Trinity, and Wes-
leyan require some classical work in college. Amherst requires it, unless the student
has presented Latin, Greek, and a modern language. But neither Harvard nor Oberlin

COLLEGE ENTRANCE REQUIREMENTS 105

make any demand in the case of either Latin or Greek, once the student has gained
admission. One cannot but raise the question whether an entrance requirement of
a specific study is justifiable under such circumstances.

In the western institutions the tendency has been entirely in the other direction.
The University of California, which goes to the extreme view, specifically demands
that the foreign languages required for admission shall be in modern tongues, and
cannot be satisfied by offering Latin. The University of Minnesota goes to a still
greater length, since it does not accept the ability to translate the Iliad as a proper
test for admission to the College of Liberal Arts. A boy may offer to the University
of Minnesota one year in Greek Grammar and one year in Xenophon, but more than
this in Greek will not be accepted.

The preference which Latin has acquired over Greek is one of the anomalies of this
development. Latin originally acquired its primacy in the educational curriculum,
not from considerations of culture or of discipline, but from those of the most prac-
tical sort. If a man in the Middle Ages could not read Latin, he could not take up
work in philosophy, or law, or science. But five hundred years have brought great
changes. Neither in ordinary nor in learned intercourse is Latin needed. The litera-
ture of Greece is immeasurably superior to that of Rome. Yet in a large number of
American colleges Latin is required and Greek would not be accepted as a substitute.

These facts disclose a difference in practice between the eastern and western sec-
tions of the country, and between our two types of higher institutions. In the eastern
states, all of the well-known endowed institutions, with the exception of Cornell
and Clark, require Latin for admission to the arts course. In the western part of the
United States, such a requirement is practically unknown in the state universities,
and is absent even in such strong privately endowed institutions as Beloit, Colo-
rado, Grinnell, and Knox Colleges and Leland Stanford Junior University. This
divergence imposes a curious strain on the secondary schools of the west which pre-
pare boys both for western and eastern colleges. The situation calls for a thorough-
going examination of the wisdom of these specific requirements, and an effort to
make the entire system of entrance requirements more simple and more responsive
to the needs they are designed to serve.

The first step toward such a solution is to recognize clearly what that need is.
Only by some such process can the present anomaly of conditioning, on the average,
two-fifths of the freshman class in our colleges be overcome, — an anomaly which is,
in some ways, a far more direct criticism upon the college than it is upon the boys
who are conditioned.

One who considers with a sympathetic eye the efforts of the western secondary
schools to prepare for admissions varying upon such arbitrary grounds is filled with
astonishment at the persistence of the variations still remaining amongst the examin-
ing colleges. There are at present only about a dozen colleges and universities which
admit by examination only. This method of admission to college is now so completely

106 CURRENT EDUCATIONAL PROBLEMS

met by the examinations of the College Entrance Examination Board that one won-
ders at the maintenance of a separate system of examination by any of these insti-
tutions. The College Entrance Examination Board examinations are made up by
committees of teachers from a large group of strong colleges and secondary schools.
They represent the best point of view which can be had to-day in the preparation of
such examination papers. They are generally admitted to be the fairest and most satis-
factory examination papers that have been prepared. To compel a secondary school
to prepare for sepai'ate examinations in elementary subjects like algebra and chem-
istry and Latin, for the sake of a particular college, would seem hardly justifiable at
this day. It works an injustice alike upon the secondary school and the candidate for
admission.

The classics are by no means the only subjects prescribed by the colleges for en-
trance. Specific requirements in the sciences, modern languages, and history are made
by various institutions. For example, the University of Michigan requires physics.
Yale limits the science which may be presented to either physics or chemistry. Out-
side of the sciences, the number of electives permitted by most colleges, particularly
in the eastern part of the country, is small. Probably more than to the classics, the
large number of conditioned freshmen in most eastern colleges is due to the fact that
the high school course which these boys have taken cannot be made to dovetail with
the prescriptions and negations of the entrance requirements of the college they desire
to attend, in history and in the sciences.

The colleges, of coui-se, have an answer to all this. They point out that Latin is
better taught than French, and that physics is better taught than biology. This is
true. Latin, with five hundred years of pedagogic method behind it, is generally a
better school subject than a modern language, as it is taught in the American schools.
Physics, the oldest of the sciences in the school curriculum, has been adapted to better
pedagogic presentation than, for example, biology. The mistake comes in the whole-
sale action which the college takes to escape its difficulties. No one should expect a col-
lege to admit to its classes boys inadequately trained in German and botany, merely
because they have studied these subjects in the high school for a given time. But the
colleges have in their own hands ample means of discrimination between good teach-
ing and bad teaching. They should exercise that discrimination, and not fall back upon
the theory that one language or one science is per se better than another. Nothing
would stimulate good teaching in the subjects still new in the high school more than
such discrimination, vigorously and intelligently exercised. It opposes the practice
now in vogue which tends to make all good teaching in a long list of subjects com-
paratively difficult, while mediocre teaching in the traditional subjects passes muster.

Indeed, the extreme minuteness with which American college requirements have been
defined has been due partly to the chaotic condition of our American education, and
partly to the distrust by colleges of one another. Simple tests to determine the fitness
of the applicant were announced only by the poor colleges, dependent upon tuition

COLLEGE ENTRANCE REQUIREMENTS 107

fees. Such institutions turn no one away, no matter how ill-prepared. If a strong col-
lege had set up such standards for entrance, its rivals would have considered it a de-
vice for increasing the enrolment, and the college itself would have distrusted its own
situation. But fifteen units, defined down to the last horn* of the school year and to
every page of a text-book and every experiment in the laboratory, was a schedule
which could defy the insinuations of rivals and the weaknesses of one's own virtue.
The impossibility of living up to such requirements was met by the liberal admission
of conditioned and special students. It requires courage in a college to adopt a sen-
sible and simple method of examinations and to administer this in a common-sense
way. The adoption of such examinations, however, forms the only practical escape
from our present perplexities.

In spite of all the anomalies that still remain, however, the signs of betterment
are not wanting. The colleges, like the banks, are realizing that they are not separate,
unrelated units, but parts of a common system. This realization has progressed already
very far among the strong institutions of the eastern states, where indeed it is aston-
ishing that any competition beyond a generous emulation in intellectual achievement
should ever have existed. Throughout the country, it is being realized that the pros-
perity of a good college increases, in a short time, the prosperity of all other good
colleges. It is becoming increasingly easy for colleges and universities to cooperate
in educational programs. The time is ripe for the introduction of a simple and
adequate method of transition from the high school to the college.

No reasonable person desires to return to the vagueness of the past. On the other
hand, it is equally clear that some healthier and more comprehensive method must
be adopted than that of microscopic examinations which fix too closely the contents
of the high school course, and take away, to a large extent, its scholarly significance.
The action of our oldest university in undertaking examinations of a new sort is a step
in educational leadership of the highest value, and one in which every college^and
every university must feel an interest. The outcome of this will depend, in a large
measure, on the ability of those in charge to devise examinations which shall be fair
tests of the student's intellectual achievement.

Under the new Harvard plan, the applicant must be examined in four subjects, one
of which is either mathematics, physics, or chemistry. The striking thing about this is
that the boy is not compelled to offer mathematics. In the important topic of English,
the new Harvard plan of admission does not differ materially from the older plan.
This is a question full of difficulty, and one that must be approached without dog-
matism. It would appear, however, that any advance here must be along the line of
greater simpUcity. Two objects are attempted in the present examination in English.
First, to ascertain whether the boy uses his mother tongue correctly and can write
good, idiomatic English. Secondly, whether he has some acquaintance with English
literature thru the reading of a specified number of books. It seems to me advisable
for the college to sever these subjects even more widely, and to treat them separately.

108 CURRENT EDUCATIONAL PROBLEMS

The fii"st subject is indispensable for the college matriculant, but might it not be
better accomplished by treating a boy's entire examination as an examination in Eng-
lish, instead of creating a special one in that subject ? There will, in general, be
ample opportunity in the other examination papers to determine the accuracy and
fluency of the candidate's English, with many advantages from gathering these im-
pressions in this way, rather than from a paper set especially for that purpose. Such
a test is more likely also to impress upon the boy's mind the fundamental fact that
correctness in speech and power of expression should inhere in all that he does, and
not be a separate faculty, to be exercised only in an English composition. The second
object introduces an even more puzzling problem. Certainly it seems clear, from the
results of om* experience in the last ten years, that the dissection of delicate poems and
stirring tragedies in class is not the method to communicate a love of good literature.
The charging of the memory with the peculiarities of diction and thought of the writer
is a fairly sure way to deaden the taste for good reading. It seems clear that the dis-
ciplinary training in the reading and writing of English is a matter to be kept sepa-
rate from the pleasure which a youth should enjoy in the reading of a good book. An
ordinarily intelligent reader who takes up Burke's great oration would be thrilled by
it, but the school-boy who comes up for college entrance examinations must remem-
ber in connection with it a large number of obsolete details. As a result, he remembers
little else. It seems better, on the whole, to seek to cultivate in the high school boy a
taste for such literature as he can be led to read naturally, rather than to force upon
him books beyond his understanding, or to seek to cultivate this taste by the method
of literary anatomy.

Finally, I venture to refer again to one other matter with which I have already
dealt, and that is the growing irritation of high school teachers against the college,
arising out of the treatment of entrance requirements. The refusal of the college to
recognize good work in many branches, now well taught, and in many schools where
admirable work is done, is a source of constant irritation. The High School Teachers'
Association of New York adopted, in 1910, resolutions favoring a reduction of the
number of subjects prescribed for college entrance requirements, and the recogni-
tion, as electives, of others. The Boston Headmasters' Association called attention to
the frequent inability of a boy who decides to go to college in the middle of his high
school course to do so without undue delay. These indicate a certain irritation which
should be met in a frank and sympathetic spirit, and which, in the long run, can be
removed by an educational policy in the matter of admission which shall be generous
and fair. And here again the road to improvement lies along the direction of greater
simplicity and of cordial educational cooperation between college and secondary
school.

ADMISSION TO ADVANCED STANDING

On account of the varying standards of American colleges, and the differences in their
organization, one of the most perplexing problems of administration arises out of the
admission to advanced standing of students from other institutions. In a country so
large as ours, with sections where commercial and economic interests are so varied,
and where political problems are so complex, it is highly desirable that such migra-
tion of college students from West to East and from East to West, from South to
North and from North to South, be encouraged, and that no unnecessary obstacles
be offered to the migrating student. At the suggestion of several college officers, the
Foundation, soon after the close of the last academic year, addressed a series of ques-
tions concerning their practice in this matter to about fifty institutions, in the hope
that assistance might be derived from a general discussion of their procedure.

TTie replies indicate that the problem is one of importance, not only because of
its difficulty, but on accoxmt of the number of students that are affected by it. In
the institutions from which answers have been received, about seven per cent of the
undergraduate body in 1911-12 came by transfer from other institutions of higher
education. The normal schools supplied a considerable proportion of this transfer,
particularly in the state universities: at the University of Michigan 28 per cent of
the students received in 1911-12 by transfer came from these schools.

The first problem presented by application for admission to advanced standing
usually concerns the rank of the college from which transfer is desired. Most colleges,
when an application from a doubtful college is received, look up the records of stu-
dents that have already been admitted from that college and are guided by their show-
ing. This is seldom, however, a sufficient basis for a general practice, for the personal
equation of one gifted or one backward student may make such records quite untrust-
worthy. A number of universities consult other institutions of good rank that have
received students from a doubtful college. Others, like the Universities of Wisconsin,
Minnesota, and Texas, and Indiana University, base their judgments upon the rela-
tion of the college to its state university or other recognized university of the same
state or region. The University of Missouri refers to other members of the Associa-
tion of American Universities. Vassar College writes that before credits are accepted
from an institution, the curriculum and equipment are examined in detail by a copi-
mittee of the faxnilty : as students from thirty-seven colleges scattered over the Union
have been received at Vassar during the last five years, this method must involve
almost prohibitive labor and expense. The University of Wisconsin, the University
of Michigan, and Yale and Northwestern Universities make use of the " Classification
of Colleges and Universities " prepared by the United States Bureau of Education ;
the University of Washington follows this in all cases. Hai'vard University makes
no attempt to rate other colleges or universities. Each applicant for admission to
advanced standing is judged in accordance with his own performances, and not in

110 CURRENT EDUCATIONAL PROBLEMS

accordance with the institution from which he comes. "Good men come from small
places, and the best colleges have their failures."

The difficulty of estimating institutions is considerably increased when they are
foreign universities, particularly when their location is in countries with which we are
not intimately acquainted, such as Russia, the Balkan kingdoms, and the nations of
the Far East. Our recent immigration and the tendency of the Oriental peoples to
study Occidental methods are bringing considerable numbers of students from these
foreign institutions to our own. The practice of judging a foreign university by the
past performance of its students here is more justifiable than a similar practice in
respect to American colleges. Administrative officers frequently correspond with one
another concerning foreign applications, so that the knowledge or experience of one
institution may assist another. The academic year-books affiard some help.

The entrance requirements of other colleges are naturally an important element in
deciding some questions of transfer. The University of Nebraska looks chiefly to these
requirements, and gives equal credit for work done in colleges whose entrance require-
ments are equal to its own. The University of Michigan and Dartmouth College appar-
ently do not accord any credit for the work done in a college where the requirements
for admission are on a lower plane. Something, of course, is to be said in favor of reject-
ing applications for transfer from colleges whose standards of entrance are low. Yet
a college is sometimes more than the grade of its studies; a great part of its influence
is due to the intellectual atmosphere with which it surrounds its students, and it is
not always safe to assume that this intellectual atmosphere is capable of fractional
subtraction in the exeict proportion that the college is a high school. It would be
unfortunate if all institutions of high rank acted on the theory that low entrance
requirements permanently affect the quality of all of the work of such a college, for
then a student in a low-grade coUege would never be able to obtain admission to a
better.

Most institutions, however, accept the work of a college of lower grade, but make
allowances for the difference in the amount of preparatory work. This is the practice
of the University of Wisconsin. Vassar CoUege and Tulane University insist that the
specific details of their own entrance requirements must have been met in the college
itself, if not in its entrance requirements. This seems justifiable, for to enforce spe-
cific studies in the preparatory schools upon a college's own freshmen, and to admit
that such studies are not necessary for upper classmen who have spent their freshman
year elsewhere, appears somewhat inconsistent. Columbia University gives each can-
didate from an institution concerning whose standing there is any doubt, an informal
examination by the accredited representatives of each department in which he applies
for credit, and his rating is determined according to the recommendations of these
representati ves.

Even more difficult than assessing the relative value of study in a doubtful college
is the decision concerning the quality of the various studies that have been pursued

ADMISSION TO ADVANCED STANDING 111

by the students, whether in doubtful colleges or in institutions whose general excel-
lence is unquestioned. This difficulty arises not only from the imevenness of the work
in many good colleges, but from different systems of nomenclature and class organi-
zation in institutions all of whose work may justly be regarded as on the same high
plane. Apparently most institutions leave this problem to be solved by the admin-
istrative organization which deals in general with applications for transfer, which may
be either an administrative officer, such as the registrar, or a committee of the faculty.
Such a committee, presided over by the dean, constitutes the method at the University
of Wisconsin. A similar committee decides such questions at McGill University. Johns
Hopkins and Lehigh Universities refer to the appropriate professors for a decision
as to the rating on the quality of the applicant's previous work, and New York Uni-
versity and Smith College obtain such ratings from the heads of the departments
concerned. The committee on admissions to advanced standing in the University of
Pennsylvania confers with other members of the faculty touching the particular
branches for which credit is asked, and work done in a poorly equipped department
of an otherwise good institution is not credited. At the University of Chicago the
university examiner is the official charged with the accrediting of advanced work;
when he is in doubt concerning the value of any work presented, he refers the work in
question for appraisal to the appropriate departmental examiner. Cornell University
also has a carefully devised plan for estimating the studies presented for advanced
standing. The blanks provided by the registrar's office seem to cover most contin-
gencies, as they bring up for review not only the applicant's college work, but his
previous preparatory school education. These are sent to those students who intimate
a desire for transfer to Cornell, and, upon being returned, are forwarded, with the
facts careftilly collated upon another blank, to each professor whose classes correspond
with those for which credit is asked. These professors, from their knowledge of the
corresponding work in other colleges, note upon the blank the amount of credit to be
given, and the registrar sends a summary of this, with the standing thereby conferred
at Cornell. If the student is satisfied with his ratings, and desires to transfer, he then
forwards the original papers concerned, and when the registrar's office finds that these
agree with the statements upon which the professors have passed, the student is ad-
mitted. Such a combination of administrative action and professorial judgment seems
admirably adapted to accomplish a fair result.

Indeed, on the difficult question of the proper handling of administrative work,
the best solution seems to be a combination of faculty action with that of admin-
istrative officials, by which the faculty shall lay down the policy, and the administra-
tive officer carry that policy out in its routine applications. It seems unnecessary to
absorb the time of a distinguished scientist or a well-known historian in passing on
credentials and interviewing prospective students; probably also the work will not
be particularly well performed by them. On the other hand, to intrust a branch of
administration entirely to the control of an official is to run the danger of that rigid-

112 CURRENT EDUCATIONAL PROBLEMS

ity from which a bureaucracy is seldom exempt. But if a committee of the faculty
lays down the lines of policy as often as a general decision is necessary, and then the
appropriate administrative official, who should advise the committee as its secretary,
carries these general decisions out in practice, the administration is kept free and pro-
gressive, and the members of the faculty contribute their ability to the administrative
work without allowing that work to demand too much of their time.

Upon certain practices in judging the work of other colleges there seems to be a
general agreement; upon other practices much divergence of opinion is reported.
The mere years spent in another college are seldom the basis for fixing the amount of
credit to be given ; almost all institutions disregard the year in which the student is
enrolled, and estimate his credit course by course. There are some exceptions, however.
Brown University accepts the work of leading institutions year by year; it is only
for institutions of lower rank that the credit is made out hour by hour. The Uni-
versity of California gives credit in both ways, using each to check any inequalities
that might arise from the exclusive use of the other. Thus, the work'of a freshman in
the University of California ordinarily amounts to 32 units. If a student comes from
another institution after a full and normal year's work there, he is given sophomore
standing by the LTniversity of California, being credited with 32 units, even if his
work, when estimated by courses, would differ from this estimate by several units. If
it differs considerably, the credit is estimated entirely by courses.

A unique instance of the difficulty in estimating the work of other institutions,
either course by course or by any other method, is presented by the University of
Virginia. At this university, until 1911—12, three courses a year constituted full
work for the average student. In nearly all other colleges the student is supposed
to take four or five courses. The work of a course at the University of Virginia was
therefore more intensive than at other places, and it was almost impossible to give
to a student coming from another college advanced standing that would be satisfac-
tory. As a result, the university generally has had at any one time only two or three
students who have been admitted with advanced standing, and sometimes it has been
without a single such student for several sessions consecutively. The University of
Virginia is now rearranging its policy so that the courses there wiU correspond more
closely with those at other institutions; whatever may be said pedagogically in favor
of its former system, the change will be beneficial at least in facilitating the migra-
tion of students from colleges to the advanced classes at the university.

There is less agreement as to whether credit should be given to work which does
not correspond to work in the institutions receiving the application for advanced
standing, or whether credit should be confined to parallel courses. The Universities of
Nebraska and Minnesota, Purdue University, Indiana University, Tufts College, Dart-
mouth College, McGill University, and Vassar College, for instance, do not accept
from another institution work which is outside of their own curricula. On the other
hand, the Universities of California, Michigan, Kansas, Wisconsin, and V\'"ashington,

ADMISSION TO ADVANCED STANDING 113

and Brown, New York, Leland Stanford Junior, Western Reserve, and Johns Hopkins
Universities do not restrict credit to courses parallel with their own. Johns Hopkins
University states emphatically that it recognizes any subject which is worthy of place
in an independent curriculum. The University of Missouri likewise accepts all work
done in an institution of high grade, but it declines to grant credit for courses which
seem to be too ambitious for the institution attempting them. The curriculum of the
School of Mines, Engineering, and Chemistry of Columbia University being entirely
prescribed, credit can be given only for equivalent courses; in Columbia College,
on the other hand, all "liberal "courses in which the work appears to have been well
done receive credit.

On another point there is more unanimity. In nearly all cases, if a student has re-
ceived a passing mark in the institution where he studied, that mark is accepted by
the institution requested to recognize his work, even if the passing grade elsewhere is
below its own passing grade. But this practice is not absolutely unanimous. At North-
western University, in case work has been of very low grade but still above the pass-
ing mark, it is sometimes credited with Northwestem''s credit for similar work per-
formed in its own courses, which is that a certain percentage only is allowed to count
toward graduation. The University of Wisconsin states that as it frequently refuses
to credit for gi*aduation low marks made within its own walls, it considers itself
warranted in doing the same with students from other institutions. Columbia Uni-
versity follows with students from other colleges its practice with its own students
of not according credit in any half year for more than one course in which a grade of
"D" has been received.

Not only do the authorities have to decide upon the value to be assigned to col-
lege work of many kinds and grades, but applications for advanced standing are now
fairly numerous from students who have spent some time in a professional or technical
school and then desire to complete their academic education. They naturally seek to
have their professional or technical studies counted toward the bachelor's degree. Still
more numerous are the applicants who present normal school work for credit. Harvard,
Yale, Tulane, McGill, and Indiana Universities, and the Universities of Minnesota
and Texas do not accept such professional or technical work. Vassar, Dartmouth,
Brown, and the Ohio State University credit such work only when it parallels work
in their own courses. Lehigh University does not require that the professional or tech-
nical work shall be parallel to its own, but it requires that the work offered should
have been acceptable for credit toward the degree of bachelor of arts in the institu-
tion where it was done. The University of Michigan will accept such work whether
done in an arts course or in a professional or technical school, provided that it is of
such a general nature that it might appropriately be included in its own department
of literature, science, and the arts; similarly, Johns Hopkins University will accept
such scientific work in a medical school as is usually given in college courses, and
historical work in a law school, but not distinctively professional courses. The same

114 CURRENT EDUCATIONAL PROBLEMS

rule appears to govern the practice at the Univei-sity of Pennsylvania. Ohio State
University will, in the case of engineering students over twenty-one years of age,
accept ability as a craftsman in lieu of half of the entrance requirements in foreign
languages. The University of Chicago will give credit for professional work up to
nine majors out of the thirty-six required for graduation; upon the nature of this
professional work there are no restrictions.

Another group of institutions do not look at the academic nattu« of the profes-
sional work as a criterion, but seek to place the student from other institutions upon
an equal plane of privilege with their own students, but no higher. Thus, New York
University and Northwestern University will allow an applicant for advtuiced stand-
ing to count one year's professional work toward the bachelor's degree, as they allow
their own men to do. Similarly, Cornell University will credit one year's work in law,
altho, of com-se, in that case the option of spending the senior year in professional
studies cannot be exercised. The University of California interprets a similar equiva-
lence to mean that it would not be justified in accepting professional study if done
earlier than the senior year of the college. Transfer under such conditions must arise
rarely. The University of Illinois will allow students from other institutions the same
*' limited and specified"" credit for work in colleges of engineering, agriculture, and law
that it allows to its own students. The University of Nebraska credits such profes-
sional or technical work as may be applied to its own joint six-year courses looking
toward two degrees. The University of Wisconsin has a similar principle: the profes-
sional work, like the work of the Wisconsin students, must have been performed dur-
ing candidacy for the degree of bachelor of arts during the junior and senior years. The
University of Missouri accepts only professional work done in a law or medical school
with sidmission requirements equal to its own professional schools, and then only one
year of such work. Columbia College will accept one year of technical or professional
work, if it is of high quality.

In respect to normal schools the procedure is somewhat different. Tulane Univer-
sity allows a ci-edit of fifteen hours for work in normal schools, when such schools
are based upon a four-year high school course. Yale University gives credit only for
work in normal schools which is exactly parallel to work of its own, and the Univer-
sity of Texas only such work as is ordinarily accepted for an arts degree. The Uni-
versity of Missouri credits as academic subjects the history of education and educa-
tional psychology, but not professional courses like school management and practice
teaching. The University of Pennsylvania has the same general rule. Cornell Univer-
sity admits students who have completed two years in a normal school that has the
full Cornell entrance requirements, so that graduation is usually possible from Cornell
in three more years. Indiana University gives credit for professional work in education
up to a maximum of twenty semester hours. Western Reserve University generally
grants one year of credit for two years in a well-known normal school. The Univer-
sity of Michigan does not estimate the work of the normal school course by course,

ADMISSION TO ADVANCED STANDING 115

but announces that a graduate from one of the stronger curricula in an approved
normal school may be given such advanced standing as the nature of the curricu-
lum he has completed justifies. Harvard University admits especially recommended
graduates of high rank of the four-year course in the Bridgewater Normal School
of Massachusetts, a combined coUege and professional course after a four-year high
school course, to a credit of seven out of the necessary eighteen Harvard courses.
With other normal schools Harvard has little experience. Northwestern University
treats each applicant from a normal school individually, and if he comes from a school
where college entrance requirements are enforced, and has completed the so-called
two-year college course, he is generally given a year and a half or two years' credit, and
can graduate with two years of somewhat heavy work. The University of Wiscon-
sin, on the other hand, does not treat with normal school students from Wisconsin in-
dividually, but in general, in admitting them by an agreement between the university
and the Wisconsin normal schools which was concluded in 1909. By this agreement
graduates of the advanced courses of the schools are admitted with the rank of junior
to the course leading toward the degree of bachelor of philosophy, which is designed
especially for them. In the coiu^e leading to the degree of bachelor of arts, the normal
school student is accorded junior standing if he completed successfully the equivalent
of a standard course of a high school on the accredited list; if his elective work in the
normal school has been of university grade, and if he took elementary foreign lan-
guages in the normal school, he must comply with the requirements governing uni-
versity students who are admitted with no language requirements. Ordinarily this
involves work equaling eight extra credits for grtiduation in addition to the regular
120 credits. The University of Minnesota allows one year of credit to graduates of
five-year normal schools or to graduates of advanced graduate courses. The Univei-sity
of California gives, if it can be fitted into its regulations for its own internal govern-
ment, a year and a half of credit to the graduates of the two-year courses in the
California normal schools who are also graduates of approved four-year high school
courses, and it endeavors to treat normal schools of similar standing in other states
in the same manner. The general policy of the University of Chicago in accrediting
the work of a normal school aims to be that of the state university of the state in
which the normal school is located. The work to be accredited must be collegiate
work and must not exceed nine majors a year, and be based upon a four-year high
school course. If not so based, appropriate deduction of credit must be made. Courses
in "Methods in Common and Secondary School Branches" can be counted only as
pedagogical courses.

Occasionally, applicants for advanced standing are possessed of special maturity
or experience, such as that of an experienced teacher, or of an experienced crafts-
man who desires to enter upon engineering. Harvard and Lehigh Universities, and
the Universities of Wisconsin, Minnesota, Nebraska, and Chicago do not recognize
this in granting admission, nor does McGill University, except to a very limited de-

116 CURRENT EDUCATIONAL PROBLEMS

gree in very exceptional cases. .Columbia University does not recognize maturity or
experience except in Teachers College, where such qualifications are sometimes proved
by examination to be the substantial equivalent of professional courses. Dartmouth
College and Vassar College do not give such qualifications any value toward advanced
standing, but may be lenient in admitting such persons to the freshman class when all
of the entrance requirements have not been fulfilled precisely. Similarly, Yale Uni-
versity gives the mature or experienced candidate a certain period of trial, even the
he may be somewhat deficient in the absolute requirements, and New York University
and the University of Pennsylvania recognize maturity or experience as constituting a
cei'tain waiver of technical entrance requirements. Johns Hopkins University does not
find it practicable to recognize experience in teaching, altho it considers that some al-
lowance perhaps might properly be made in the case of a skilled workingman entering
upon the study of engineering ; Cornell University gives no recognition to experience
in teaching, but by resolution of the university faculty, credit is given for experience
in drawing and shop work. The University of Missouri exercises its judgment in each
case, being influenced largely by the student's first semester's work as a special student.

Indiana University makes specific provision for the recognition of experience in
teaching, experienced teachers being able to receive five units of elective entrance
credit therefor. Also the maximum credit of twenty semester hours allowed to nor-
mal school students for professional work in education is not granted to those stu-
dents unless they have supplemented their school work by considerable successful
experience as teachers. Northwestern University will admit particularly mature per-
sons for one year as special students, and at the end of the year institute an equita-
ble adjustment of credits, but the cases in which credit is given for such experience
gained outside of a collegiate institution are not common, and the credit allowed is
never large. Brown University, contrariwise, although not entering into specifications,
writes that all possible credit for work which can be regarded as of a collegiate na-
ture is made for unusually mature or experienced pei*sons, and that sometimes such
persons have had waived in their favor examinations and the requirement of exact
paraUelism of courses, especially in preparatory subjects. The University of Michigan
has one specific privilege for persons of maturity and experience, altho the granting
of this privilege is decided upon the merits of each case and is rare. Students of this
character are sometimes allowed to attend the examinations in courses whose work
they have covered outside of any coUegiate institution, and if they pass the exam-
ination, they are given the same credit as those who have completed such courses
successfully in the university.

In the variety of entrance requirements for college, and with the present tendency
of many high schools to do some collegiate work, it frequently happens that stu-
dents asking for advanced standing desire credit for work done in a secondary school
in excess of the entrance requirements. The practice in this i-egard is not uniform.
New York University and the University of Minnesota will not recognize such work.

ADMISSION TO ADVANCED STANDING 117

Northwestern University limits the privilege to solid geometry, college algebra, trigo-
nometry, and foreign languages other than high school Latin, provided that these
courses have been taken in the last year of the high school; the University of Ne-
braska limits it to solid geometry, trigonometiy, Greek, third year French or Ger-
man, and fourth year Latin. Ohio State University, upon recommendation of the
department concerned, will give about one-half credit for work in French, German,
and Spanish in excess of the entrance requirements. Yale, Brown, Dartmouth, Vassar,
Cornell, Lehigh, Purdue, Johns Hopkins, and the Universities of Missouri, Pennsyl-
vania, and Washington will recognize it by allowing the student to pass the examina-
tion in the corresponding college course, and to recei ve the credit earned by that course.
Harvard University allows this to a very limited extent. The University of California
allows these examinations only in foreign languages, advanced mathematics, and
drawing. The University of Wisconsin will not recognize such excess work when pre-
sented by students asking for advanced standing, even if the work has been accorded
recognition by the college in which the student originally matriculated, and says that
very little credit can be obtained even by freshmen coming directly from preparatory
schools. Indiana University will allow credit for this excess of work if done in the
high school in a definite post-graduate course, or if offered to offset any of the pre-
scribed subjects in the entrance requirements. Leland Stanford Junior University
will give credit for extra work if the work is continued in the university, and pro-
vided that the student maintains an average of "B" grade during his first two years
of residence. In Columbia College a student, entering without conditions by means
of the Columbia University examinations or the examinations of the College Entrance
Examination Board, may receive credit for extra school work parallel to courses ofifered
in the college, not to exceed two-thirds of the credit assigned to the given subject if
taken in college, nor to exceed in the aggregate 18 out of 124 points required for
the degree. The University of Chicago will accord provisional credit for fifth or sixth
year work in a cooperating school whose work of those years is approved by the uni-
versity, the claim to be tested later by succeeding work in the same department or
by other means satisfactory to the departmental examiner. The University of Chicago
will also give credit for advanced preparatory work done in a cooperating school in
language, history, and mathematics, after suitable test. The faculty of the University
of Michigan took action on this question in June, 1912, resolving that credit for
excess secondary school work should be allowed only when the work was accomplished
in a post-graduate high school course of at least one semester in length.

Institutions are pretty well agreed that a student receiving advanced standing for
work in another institution must immediately make up not only any prescriptions
for the freshman year in which he may be lacking, but must fulfil before graduation
aU of the requirements that are imposed upon those whose entire collegiate course is
spent in the institution, except in some cases the requirement for a course in physical
exercise in the freshman year. Where an institution prescribes a certain amount of

118 CURRENT EDUCATIONAL PROBLEMS

work in a major subject for graduation, the compliance with this regulation is often
difficult for those who would otherwise be transfeiTed into senior standing.

The University of Michigan allows to students admitted on advanced standing a
wider election than is permitted to freshmen, although any choice outside of the lim-
ited list of freshman studies must receive the approval of the committee on elections.
The University of Chicago requires the fulfilment of its language requirement in the
Junior College, but the group requirements in years prior to the transfer are neces-
sarily erased. The University of Minnesota waives all freshman requirements for stu-
dents admitted to sophomore or higher standing. Cornell University appears to accord
to a student admitted to a class above the freshman most of the privileges of that
class, although its practice on this point may have been misunderstood. The Univer-
sity of Kansas accepts the fulfilment of all requirements for two years in an institu-
tion of equal rank as the fulfilment of two years of its own requirements, even if the
requirements vary. In this matter McGill University is opposed to the general Ameri-
can custom. When a student is finally admitted to advanced standing at McGill, the
years that he has spent at another college are considered completely equivalent, so far
as technical regulations are concerned, to the same years at McGill, and he takes his
place beside his fellow classmen in the advanced class as if he had been at McGill from
his freshman matriculation and had fulfilled all of the detailed requirements of the
university.

Yale University exacts the minimum loss of a year in all cases of transfer from any
other college or university. This is done because the authorities of Yale "do not wish
to encourage transfers from weaker institutions to the college by waiving our entrance
requirements and giving full credit."

Every year most colleges dismiss a certain number of students, most of them for
failure to keep up with their studies, a few for misconduct. What shall be the attitude
toward such students if they apply for admission to other colleges .'' Harvard Univer-
sity, the University of Kansas, Dartmouth College, and Cornell University will not
receive students dropped from other institutions. The University of California will
give to students dropped from other institutions only the opportunity to pass the
matriculation examinations and such examinations for advanced standing as are neces-
sary for the status desired; it will not admit such students to advanced standing upon
any record of work done elsewhere. The University of Minnesota will not receive a
dismissed student without a special letter, recommending his admission to the univer-
sity for "a good and sufficient reason." The University of Pennsylvania will not admit
a student who has been dropped from a college unless it is "especially requested" by
that college to do so. Indiana University, New York University, Tulane University,
and the Universities of Missouri, Nebraska, and Michigan will receive such students
only when they present certificates of honorable dismissal, which certificate the Uni-
versity of Michigan grants to no student who is forced to leave its department of liter-
ature, sciences, and the arts for either failure in studies or misconduct. Northwestern

ADMISSION TO ADVANCED STANDING 119

University and the University of Wisconsin require a letter of recommendation from
the dean or appropriate executive officer; at Vassar College this must be a "special
letter of explanation and recommendation."" The University of Illinois requires a letter
of recommendation or indorsement. Yale University seldom admits students dropped
from other institutions except upon a written statement of the president or dean that
the dropped student deserves another chance and may do better in another college.
Brown University receives no student ^ho has been dropped from another institution
without a letter of recommendation, or a statement from the president or dean that it
has no objection to Brown's receiving the student. Brown University adds that there
has been only one exception to this procedure in many years, in a case where, after care-
ful investigation, it was decided that the objection of the other institution was clearly
unreasonable. The University of Chicago admits a student dropped from another col-
lege for poor work only if the full statement of the facts by both the applicant and
the institution previously attended justify the conclusion that acceptable work may
be expected under the conditions prevailing at the university. Columbia College ad-
mits students dismissed from other colleges if they give evidence by a half-year's work
in extension courses, or, in exceptional cases, in a summer session, of the intention to
make a good record and of the ability to maintain it. Purdue University "scrutinizes
with exceptional care" the applications of students who have been dropped at other
institutions.

Johns Hopkins University writes that students dismissed from other institutions
are received only after communicating with that institution and finding the reasons
for the act of discipline, and obtaining the judgment of the dean or executive officer
as to the desirability of giving the young man another chance. Johns Hopkins thus
reserves to itself the discretion of passing upon the judgment of the officer whose
opinion it solicits, and does not absolutely commit the shutting of its doors to any
outside official or institution. Of course, rules must be made for the majority of cases,
and not for the exceptions, but when one reads announcements that students will not
be admitted if they have been disciplined at other institutions, or will be admitted
only upon a letter of recommendation from authorities who have probably been en-
gaged in controversy with the person on whom they are asked to sit in judgment,
one instinctively remembers the splendid memorial in University College, Oxford, to
that institution's reversal of its judgment concerning the poet Shelley.

Surveying the entire matter, it would appear that the time has quite come when
it ought to be possible to attempt some adequate estimation of our American col-
leges, considering not only entrance requirements, but all elements of importance, in
a way that will meet with general acceptance. It should not be necessary for a com-
mittee or an official to have to render a decision de novo every time an application
arrives from a college with which they are not especially familiar, with the result that
such applications are often hawked about by a shrewd student until he finds some
college authority more unwary than the average.

CURRENT EDUCATIONAL PROBLEMS

Concerning the quaKty of work done in particular courses, it will probably be
necessary for a long time to pass individual judgment upon each case, and the best
way to do this appears to be to consult the best informed member of the faculty, the
reference to him being prepared in advance by the registrar's office in such a way as to
consume the least possible amount of his time. Much of the difficulty in this part of
admission to advanced standing would be obviated if American universities and col-
leges would adopt common systems of nomenclature and a few other devices looking
toward uniformity in matters that are essentially mechanical. No intelligent person
wishes to standardize our higher education or to hamper the true individuality of
any institution, but an individuality that consists chiefly of eccentric mechanical con-
trivances is not an individuality that aids the intellectual development of students.
Some of the eccentricities that make it difficult to compare work in institutions of
equal rank are traditional; some seem merely whimsical attempts to attain an air of
distinction. The institutions that compose the Association of American Univei'sities
and the National Association of State Universities have done well to give a direc-
tion to our educational administration by discussing simple and uniform nomencla-
ture and administrative measures, and it is to be hoped that this praiseworthy atti-
tude will result in corresponding action.

In regard to the detailed matters upon which there is difference of practice, it seems
difficult to pronounce an opinion, except that so far as possible the attempt should be
made to recognize as equivalent an education obtained in an institution of similar
ideals. On this principle, strict insistence upon parallelism of courses seems unneces-
sary, the passing mark of other good colleges should be accepted as final, and it should
not be demanded of students admitted to the higher classes that the technical require-
ments of the freshman year be made up, provided that all requirements of the fresh-
man year in the other college had been fulfilled. It is upon this principle that gradu-
ates of other colleges are admitted to graduate schools, and it is the only principle
that places institutions of equal sincerity upon a reciprocal plane of dignity ; other-
wise, there is always the feeling that a college is trying to assert a petty superiority
over its fellow colleges, a provincial idea that has been the source of serious evil in
American education. An insistence upon parallelism and the exact making up of fresh-
man work would result, if strictly insisted upon, in a student from Harvard College,
or some other institution with a Jarge elective system, finding transfer impossible
to a smaller institution with a more rigid curriculum. It should, on the other hand,
be recognized that a college that sincerely believes that a certain kind of training is
indispensable to collegiate education»is under no obligation, merely out of intercolle-
giate comity, to see its higher classes filled with students who have not received that
training.

One of the greatest obstacles to perfect comity between American colleges is the
practice of extending transfers into the senior year. This is true conspicuously under
the circumstances in which senior standing is generally sought by a graduate of aa

ADMISSION TO ADVANCED STANDING 121

obscure college who wants, after one year's study, to be a bachelor of an institution
that is widely known. Such a second bachelor's degree is desired chiefly for its com-
mercial value in the profession of teaching, and seems to be unfair both to the public
and to the schools engaging teachers. The apprehension that such transfers may be
practiced to excess causes the introduction of many technicalities into the acceptance
of work done in another college. Migration of students from institution to institution
would probably be facilitated by requiring that at least two yeaxs must be spent in
residence at the institution that grants the bachelor's degree, except in the cases of
more mature men.

A student possessing professional or technical education, or education obtained
in a normal school, should certainly be credited with that portion of such educa-
tion which corresponds to college classes, as the so-called college course in the normal
schools, the historical courses in a law school, and the underlying scientific courses
in a medicjd school. Naturally, it should be insisted upon that the professional or
normal schools in which such work was done should be good schools. Whether the
strictly professional work should be credited is doubtful. Probably little harm would
result from being liberal in this matter, because few students, except by accident,
invert the order of their academic and professional education, and the latter train-
ing tends decidedly to develop logical powers of thought and mental concentration.
As to maturity or experience, the only i-ecognition that seems appropriate is to per-
mit the applicant to prove, by passing examinations in college courses, that he has
the knowledge imparted by these courses; maturity and experience should not ask for
indulgence, they should be more than able to bear the full burdens imposed upon
youth and inexperience.

Finally, colleges would do well not to enforce too rigidly their rules against the ad-
mission of students that have been dropped elsewhere. No good, of course, can result
from allowing an incorrigibly indolent youth to drift about through successive col-
leges, and serious moral delinquencies should be punished more severely than by a
mere transfer to another agreeable residence. But a boy will sometimes study in one
atmosphere when he will not in another, and such a lesson as being dropped from
college will often effect a serious change; above all, maturity should always be on its
guard against too severe a judgment of the weaknesses of youth; folly and riot result-
ing from exuberance of spirits may make it undesirable to allow a youngster to con-
tinue in one academic residence, and yet not be righteously punished by exclusion
from all opportunity for a higher education. Colleges should correspond cordially and
frankly concerning these students, and great deference should be paid to the opinion
of the college authorities best informed. Each institution must, in the last resort,
decide for itself to whom its doors shall open or shut, and it should not bind its
decision absolutely upon the willingness of some other college to issue certain cer-
tificates or recommendations. The committee on comity of the Ohio College Associa-
tion seems to us to have erred when they recommend that no student refused honor-

IfSt CURRENT EDUCATIONAL PROBLEMS

able dismissal on the ground of misconduct be admitted to another college except
with the approval of his former collegiate superiors. Altho they are very rare, inci-
dents have been known where the judgment of college officials has been so distorted
by the ingenuity of mischievous youth as to lose sight of justice and fairness.

In all consideration of admitting students to advanced standing it should be remem-
bered that almost every institution exercises one efficient safeguard above all tech-
nical rules. The standing accorded to such a student is generally provisional until the
end of a year. The student's own career therefore enables the authorities to correct
any serious over- valuation of his previous training, and probably, in case of work of
unusual excellence, even to revise any former ratings that may seem not to have done
him justice.

In the confusion of educational standards it will require for years to come patience
and good sense on the part of those in charge of admission of such students to leave
the way open to the deserving student and at the same time not give encourage-
ment to the ambitious and unscrupulous college. The difficulty would be less if the
deserving student only came from the deserving college. As a matter of fact, the best
student often comes from the most superficial and unworthy college, just as the most
skilful physicians have in some cases made their start in the most shameless of the
commercial medical schools. That a student is seeking to get out of a weak college into
a stronger one is to his credit. In our present stage of development it is not always
easy to deal generously with the individual student without affording material for the
use of institutions that live by advertising. All of these conditions are improving, and
in the transition period the determination may well be made to depend on the larger
fundamental considerations rather than upon the narrower technical rules.

MEDICAL PROGRESS

The Foundation has continued its work in medical education by the publication
during the past summer of Mr. Flexner's carefully prepared study of medical educa-
tion in England, Germany, and France. This forms an almost necessary supplement
to the study of medical education in the United States and Canada, published two
years earlier. The interest which has been displayed in this last bulletin, not only
on this side of the water, but in England and in Germany, has been most gratifying.
Following the suggestion of a number of those most actively interested in medical
education and medical practice in Germany, an edition of the bulletin will be printed
in German.

The comment on this publication from those directly concerned with American
medical education has well illustrated the widely separated points of view which now
hold among those dealing with this matter. By one critic the defects pointed out
in foreign medical schools have been seized upon as a proof that American medical

MEDICAL PROGRESS 123

teaching is quite abreast of, and even superior to, medical teaching in England and
Germany. In another quarter the evident superiority of foreign schools in certain
respects, as brought out in the repori;, has been resented as unpatriotic. These opin-
ions represent, however, only the extremes. The great body of those interested in the
matter have been glad to have a comparison of medical teaching on both sides of
the Atlantic, written from the point of view of scientific medicine, and aiming to set
forth the facts without partisanship. Medical patriotism which is willing to shut its
eyes to actual conditions and glorify its own national weaknesses has no place to fill.
There are no national boundaiies in medicine.

As a matter of fact, admitting the weaknesses which still inhere in most American
^hools in professorial appointments, in clinical examinations, in hospital and clinical
facilities, and in medical research, the report shows that in the eight or ten stronger
American schools of medicine the student has, on the whole, as good an opportunity to
learn the theory and practice of modern medicine as does the student of the European
schools. This fact is most gratifying and encouraging. But the report brought out at
the same time two other facts which cannot be lost sight of, and which are, on the
whole, the most significant and important for Americans, whether laymen or practi-
tioners, to apprehend.

The first is that, while European medical schools — for example, those of*Germany
— are practically comparable in faculties and standards, American schools range from
the highest to the lowest conception of medical education and medical ideals. Side
by side with schools of the best modem type, which are preparing men in a thorough
way for the practice of medicine with a conscientious appreciation of the rights of
the public, stand other schools whose function is to get the ill-trained and the unfit
into medical practice by the shortest route which the varying laws of our states will
permit. Boston offers to medical students at the same time the Harvai'd Medical
School and the Boston College of Physicians and Surgeons ; New York presents the
medical schools of Columbia and Cornell and at the same time leaves open for the
unwary the doors of the Eclectic Medical College; Baltimore presents to the medi-
cal student a choice between the Johns Hopkins Medical School and the Maryland
Medical College; Chicago invites the candidate for medicine to choose between such
institutions as the medical school of the Univei*sity of Chicago and of the Northwest-
em University, on the one hand, and utterly unworthy agencies for medical training,
like the Bennett Medical College, the Jenner Medical College, and the Herring Medi-^
cal College, on the other; St. Louis presents the newly organized and endowed school
of Washington University and the purely commercial enterprise known as the Ameri-
can (Barnes) Medical College. These are not frontier towns. They are our oldest and
richest centres of civilization. Yet even in these the state of public opinion, and of
legal enactment, and of medical ethics is such that the worst in medical education can
flourish alongside the best. The state of California, which contains the medical schools
of the state university and of Stanford University, also countenances a group of the

124 CURRENT EDUCATIONAL PROBLEMS

worst schools in the country, and recently chartered a " College of Medical Evange-
lists," where the "subjects of hygiene and sanitation are . . . studied from a biblical
standpoint,*" and the degree of M.D. is given for a course which includes 900 hours
of Bible, 540 of the practice of medicine, 250 in general evangelistic field work,
and 240 in care of the sick. This situation forms the most striking contrast between
medical conditions in America and in Europe. To remedy this condition, we need, first
of all, the education of public opinion to the difference between medicine as a busi-
ness and medicine as a profession. The public needs yet to learn that medical teaching
cannot be had either on the plane of commercial effort or yet on that of ill-equipped
devotion. It needs to learn that the maintenance of commercial and defective agencies
for the training of physicians is a blow at public health and a betrayal of public inter-
est; that society can obtain a full supply of men for the medical profession who are
educated, well trained, and devoted to a high professional ideal. In proportion as the
public realizes this it will come forward with the necessary financial support to main-
tain upon a sound basis all the medical schools that the country needs. By some such
process must this anomaly of our civilization be dealt with.

A second striking fact brought out by this comparative study of medicine in Europe
and America has to do with the matter of educational sincerity. In Europe no uni-
versity would accept the responsibility of a medical school except with the same obli-
gation of support and with the same educational ideals under which it conducts other
departments of insti*uction. In America alone does one find a college or a university
lending the shelter of its name and its charter to a medical school which it neither
controls nor supports, and whose ideals of teaching are on an entirely different plane
from those maintained in the other departments of its work.

Examples of this sort of relation are so widespread that instances will at once occur
to any one familiar with the situation. Bowdoin CoUege and the Maine College of
Medicine at Portland; the Marquette University and the Milwaukee Medical Col-
lege; the University of Southern California and the Los Angeles College of Physi-
cians and Surgeons; Loyola University and the Bennett Medical College; Willamette
University, Salem, Oregon, and its medical department; the University of Tennessee
and its medical school at Memphis; Union University and the Albany Medical School;
the Lincoln Memorial University and its medical school at Knoxville ; the Texas
Christian University and the Fort Worth School of Medicine ; Cotner University and
its medical school at Lincoln, Nebraska, are all instances of this sort of relationship.

These medical schools are not entirely comparable. Some of them, like the medical
department of Cotner University, are hopelessly bad. Others have come to the better
class of commercial medical schools. The Maine Medical School, for example, has
shown marked improvement over its situation of two years ago, and a modest sum of
money has been raised for its improvement. The University of Tennessee has during
the past year for the first time obtained support for its medical school, and the use
of this money has made a great improvement in the wretched enterprise which had

MEDICAL PROGRESS 125

hitherto constituted its medical department. But all these colleges share in the main-
tenance of a relation under which they commend to the public medical schools whose
academic standards belong to an entirely different order from that of the work which
these colleges directly support and control. Bowdoin College, for example, and its
medical department represent totally different educational ideals. When the college
invites a student to study Latin, or physics, or literature at Brunswick, it undertakes
to give him an education in these subjects quite comparable to that which he could
get at Harvard or McGill. But it invites the medical candidate to accept an education
which it knows to be utterly inferior to that which he could get at Boston or Mon-
treal. Similarly, Union University and the Albany Medical School, the University of
Tennessee and its Memphis department of medicine, belong to different educational
worlds. To stand for a high ideal of education in one place and for a low one in another
is an artificial and insincere educational program. Nowhere on the continent of Europe
does a college or a university deal with medicine upon this commercial basis.

What are the reasons which impel colleges — sometimes old and well-known insti-
tutions— to maintain so singular a relation.?

This question would not be a simple one to answer. Many factors enter into the
situation, — institutional ambition, desire for power or for numbers, social influ-
ence— nearly every motive except an intelligent desire to serve the cause of medical
education.

Some of these relations go back to a time when medicine was taught without lab-
oratories. Bowdoin's medical college relation is an old one. An old connection is not
always an easy one to drop. In addition, as Bowdoin is in a small town the medical
school is generally looked upon by the friends of the college as forming a good foot-
hold in Portland. The artificial relation existing between Union University and the
Albany Medical School is also one which belongs to a previous epoch in medicine.
Originally assumed in order to give the semblance of a university to Union College,
it is kept alive at this day by a combination of social relations, institutional ambi-
tions, and of medical politics too complex for an outsider to dissect. On the other
hand, the University of Tennessee took over the Memphis School which now forms
its medical department only two years ago, after a similar weakling which it had fos-
tered at Nashville had died a lingering death. Just what considerations moved the
trustees to take this action, outside of the widespread desire of state universities to
keep hands on all lines of higher educational work, it is difficult to see. If the Uni-
versity of Tennessee has the money to develop a medical school, the evident place
to develop it would be at Knoxville in connection with its own departments. The
Memphis venture has the air of a political not an educational enterprise.

Whatsoever sympathy one finds it possible to exercise toward these medical teach-
ing agencies must go to the men in the medical schools, not to the colleges. So far
as the colleges are concerned, the relation is in nearly every case an insincere one. On
the other hand, many of the teachers in the medical schools work with genuine de-

1S6 CURRENT EDUCATIONAL PROBLEMS

votion and oftentimes at great personal sacrifice. To comply with the law, teachers of
the underlying sciences are obtained at pitiful salaries. Practitioners in many instances
give their time and their means. Unfortunately, devotion is not always wise. To teach
poorly a certain number of medical students who otherwise would get a better train-
ing elsewhere may call forth admirable devotion, but it is justifiable only when a
definite and satisfactory status can be fairly seen in the future. Unfortunately, too,
the same optimism which makes every college believe that the education which it
gives is somehow superior to that given elsewhere finds a home in the humblest medi-
cal school. I have found teachers of medicine whose students lacked almost every
facility of laboratory or hospital, who lived in the midst of confusion and neglect,
and who nevertheless pei*suaded themselves that students were better off with them
than in well-appointed, clean, and sanitary schools. Devotion is a wonderful thing.
The world could not move without it. But one can well believe that in America,
where devotion is so common, the ability to let alone the thing one cannot do well is
a quality even more needed at the present moment.

These two things — the existence side by side of medical schools of the highest and
the lowest type, and the anomalous relations between the universities and the medical
schools — form the striking points of contrast between medical education in Europe
and America as brought out by this report.

The unevenness of our situation has recently received striking proof in the city
of New York. The newspapers have dealt with two events of widely different char-
acter. The medical department of Cornell University has been enabled by a generous
benefaction to arrange an alliance with the New York Hospital, in virtue of which it
will hereafter control one haK the clinical facilities of this institution. Cornell thus
becomes one of the medical schools which, at a comparatively small outlay, possess
the equivalent of a university hospital. It remains to be seen whether, in making its
appointments, it will cut loose from local traditions and honor men of ability and
ideals regardless of where they are found; but in any case the proper relationship
and opportunity have been secured. Simultaneously with this encouraging event, a
faculty split, recalling the old proprietary days, was reported from the Fordham Uni-
versity Medical School. It appears that this school, by means of a faculty commit-
tee, had undertaken to institute certain improvements in order to remain in good
standing with the Council on Education of the American Medical Association. These
improvements were so obviously necessary that no reputable school should have re-
quired pressure from any outside source before making them. Nevertheless, as money
was needed to carry them out, the school authorities did not feel themselves in a posi-
tion to fulfil the faculty pledges. In consequence the most progressive members of
the faculty withdrew in a body. At this point the characteristic difference between
a genuine and a nominal university department appears. If a dozen professors withdrew
from a university department, the entire country would have to be scoured to replace
them; but when a do2sen medical professors revolt from a proprietary medical school,

MEDICAL PROGRESS 127

their places can all be filled next morning from the ranks of the local profession. And
this is what Fordham University has done. One realizes sharply the unevenness of
our medical teaching when he finds that the American Medical Association still feels
it necessary to construe its list so liberally as to include in its Class A weak schools
of medicine like those of the Albany Medical School, the Medical School of Maine,
the University of Vermont Medical School, and the Medical School of the Univer-
sity of Buffalo. Undoubtedly the American Medical Association has done wisely in
not going too fast. When one remembers how rapidly this reform has gone forward
in six or seven years as the result of the intelligent work of this organization, he has
no disposition to criticize the outcome. There is, however, always the danger in any
attempt to separate educational institutions into artificially defined groups that the
grouping will be assumed to represent more than it can possibly represent. When one
realizes that Class A includes at the same time schools of medicine like those of Har-
vard, of Johns Hopkins, and of Western Reserve, and weak schools like those just
mentioned as well as others equally weak, he realizes how short a distance we have
traveled toward a uniformly high plane of medical training. This classification is in
fact purely provisional. Without question it will be advanced as rapidly as the con-
ditions will warrant. Some of the weak schools now included in Class A will be able
to meet the rapidly rising requirements. Others will inevitably drop out. The college
or the medical school which expects to remain permanently in this class may well face
now the fact that within a few years Class A will include only true university schools
of medicine with paid professors in clinical branches, full laboratory facilities, and
right hospital relations.

Fortunately there is not lacking concrete evidence of substantial progress. The Uni-
versity of North Carolina, the University of Missouri, the University of Denver, the
Central University of Kentucky, Chattanooga University, and, more recently. Wash-
bum College at Topeka, Kansas, have frankly abandoned clinical schools which they
felt were unnecessary and for whose support they could not hope to provide. The
University of Illinois applied to the legislature for an adequate appropriation for its
clinical school at Chicago, and when the effort finally failed the university promptly
severed its connection with the Chicago school and arranged to confine its medical
instruction to the two years which it could give successfully at Urbana, In various
directions — the improvement of standards, better teaching, larger support, better
hospital relations — the past few years have shown most encouraging progress in the
United States and Canada.

Credit for this progress belongs in the first instance to the American Medical Asso-
ciation and its Council on Medical Education. The annual conferences of the council
have been most interesting and fruitful. This is perhaps especially true of the last, to
which Mr. Frederick G. Hallett, Secretary of the Conjoint Board of the Royal Colleges
of Physicians and Surgeons, was invited from London. It has long been plain that the
time was ripe for an improvement in the methods of conducting our state examina-

ties CURRENT EDUCATIONAL PROBLEMS

tions. In the past these examinations, wholly in writing, not only made it possible for
pool* schools to appear successful, but actually compelled good schools to adopt to
some extent vicious teaching methods. The English examinations, largely practical in
character, have the opposite tendency ; and Mr. Hallett's clear exposition proved that
such tests are both feasible and necessary in our own states. In addition to its educa-
tional conferences, the council by its inspections, at once judicious and thorough,
has established a general consensus of opinion as to the standard which may fairly be
required at this moment of an establishment that undertakes to teach medicine.
Schools incapable of meeting such requirements are fast disappearing. The total of
166 schools of all kinds existing in the United States and Canada in June, 1904,
has in eight years decreased to 117 in 1912. Homeopathic schools, of which there
were twenty-two in 1900, have now fallen to ten ; eclectic schools from ten to six ; the
physio-medical schools have entirely disappeared. The total student enrolment, which
reached 28,142 in 1904, has now declined to 18,412. As the student bodies of the
higher grade schools have steadily advanced in numbers, this considerable decrease has
taken place precisely where in the public interest it should take place, namely, in the
weaker schools. It is thus obvious that the destruction of one inefficient school does
not merely result in increasing the enrolment of another: it actually and absolutely
keeps a certain number of unfit men out of the profession.

The changes just mentioned are mainly negative in character; they indicate that
there is less of what is bad or undesirable. Meanwhile, positive progress has also taken
place. It was pointed out in the Fourth Bulletin of the Foundation that there could
be no genuine educational standard as long as medical colleges that were professedly
on a high school basis continued to admit students conditioned or on a so-called
"equivalent."" The Association of American Medical Colleges has now framed its rules
so as to exclude from membership all schools adhering to these practices. Meanwhile,
thirty medical schools require at least two years of college work for entrance and
fifteen more require one. For the time being it is therefore important to make sure
that standards are genuine rather than higher, and doubtless the association will
look to this end. The internal improvements that have been made in the medical
schools which survive are more remarkable and significant than the mere reduction
in the number of medical colleges or medical students and graduates since 1904.
The erection of new buildings, the construction of new laboratories, the installing
of libraries and museums, the noteworthy extension of medical research, the employ-
ment of expert teachers, the improvement of the medical curriculum, the lengthen-
ing of the medical school year from twenty-six weeks in many schools to thirty-four
or thirty-six weeks, the raising of entrance requirements and the greater strictness
and intelligence in their enforcement, the improvement in the keeping of wards, the
improved methods by which a check is kept on the medical student's work, the in-
creased facilities for the student's individual work at the bedside, the closer rela-
tions between medical schools and hospitals — all these things constitute a marvelous

MEDICAL PROGRESS 129

record of progress in the past seven years. The fact that all schools which aspire even
to modest work now require a fair education for admission is perhaps the most sig-
nificant fkct of all. The experience of Europe proves that the requirement of a good
education as a preliminary to the medical school exercises a larger influence for good
than all other requirements combined. The simple demand that the physician shall
be an educated man is the most important step toward a higher plane for the pro-
fession. American medical schools are committed to this step.

The question of adequate support for medical education becomes for the next
decade a most far reaching and important one. Increased funds of varying amounts
have been widely procured for laboratories, hospital extensions, and for the promo-
tion of full time teaching and research. The Education Department of New York has
taken advantage of this improvement to announce that in the near future it will
cease to recognize schools employing less than six whole-time instructors. The depart-
ment, furthermore, very wisely refuses to recognize nominal salaries as complying with
its conditions. Naturally, in this general effort to procure money in order to escape
further criticism waste inevitably occurs: many schools that would do better to
emulate the example of those that have closed their doors struggle to imitate those
that are destined to survive. Gifts and appropriations of $5000 and similar sums for
improvements are thus all too common. They enable weak establishments to maintain
themselves a little longer. In no field of education to-day can wise giving do more
than in medicine, but in no field does the intending giver need wiser discrimination.

I venture one word further concerning the work of the Foundation in this field
of education. Its immediate connection with the subject dates from the publication
of the Fourth Bulletin in June, 1910. In cooperation with the educational council of
the American Medical Association and the Association of American Medical Colleges,
both of which had for some years previously been effectively engaged in the work,
it has sought to define the principles to which sound educational organization in
medicine should conform at this time, and practically to assist in embodying these
principles wherever opportunity offers. For the present these efforts are directed to
the elimination of unnecessary schools, to the abrogation of all sectarian privileges,
to the improvement of the student body as fast as local conditions permit, and to the
replacement of proprietary establishments by adequately equipped and financed uni-
versity departments, in whose conduct educational and scientific rather than profes-
sional motives are emphasized. In particular the Foundation has sought to assist
positive and constructive effort by frank publications on medical education which
aim to describe actual conditions, and to stimulate by a critical discussion the
appreciation of things to be done and those to be avoided. The studies contained in
the Sixth Bulletin, on medical education in Europe, fully sustain the position which
the Foundation has previously taken, that medical education is primarily an educa-
tional, not a professional question ; that in the fixing and administration of entrance
requirements, the choice of teachers, — clinical £is well as laboratory, — the arrange-

l$0 CURRENT EDUCATIONAL PROBLEMS

ment of the curriculum, in the relation of the hospital to the medical school, and
in the conduct of examinations, the point of view of good teaching is of decisive
importance.

It is the purpose of the Foundation to pursue its work steadily in the field of med-
ical education. The value of such an agency lies in no small measure in its continu-
ing ability. To follow such a study not for two or five or ten years, but for a generation,
is to make a continuing contribution. It is this work which the Foundation hopes to
do in medicine as well as in other educational fields which it enters.

I shall recommend to the trustees at an early date a study of dental education and
dental training, and also a study of the training for pharmacy. There is at present
much confusion as to these subjects, both of which are closely related to medicine,
tho standing upon very different bases and demanding qualities of widely differing
order. The matter of hospital relations is also one that urgently demands a fair state-
ment of the existing facts before widespread improvement can be hoped for.

UNIVERSITY AND COLLEGE FINANCIAL REPORTING

The inadequacy of the financial reporting of our universities and colleges has long
been obvious to any student of education. When the Foundation asked in 1905 for
data on which to base its pension estimates, a considerable number of institutions,
in spite of their willingness and desire to cooperate, found it difficult to give even
the simplest general information concerning their financial operations. The Second
Annual Report in 1907, therefore, recommended a thorough altho simple public
statement by every educational institution of its permanent resources and invest-
ments and its current receipts and expenditures, the whole checked and approved by
chartered public accountants. The Third Annual Report in 1908 followed up this
recommendation by indicating, on the one hand, the willingness of educational insti-
tutions to be open and helpful concerning their financial operations, and on the other
hand, the extreme difficulty of reading and the entire impossibility of comparing their
current financial reports. Three pages of simple forms for the exhibit of resources,
income, and expenditure were then presented, and blanks containing these forms were
made available for distribution to any institution that desired them. The same argu-
ments were repeated in my report for 1909. The consequent response in correspond-
ence and conferences caused the Foundation to have prepared and to publish as its
Third Bulletin in 1910 a set of convenient Forms for Financial Reports of Colleges,
Universities, and Technical Schools. This bulletin was the result of extensive inquiry
concerning the current practices of our educational institutions in their financial
accounting and reporting, a careful canvass of the information most desired by the
friends, patrons, and students of higher education, and many conferences with finan-
cial officers of educational institutions, expert accountants, financiers, and educators

UNIVERSITY AND COLLEGE FINANCIAL REPORTING 131

concerning the forms best adapted to meet these various ends. While providing for
details found only in the largest institutions, these twenty pages of forms, or selec-
tions from them, are yet available for the smallest college. An introduction of a dozen
pages explains the fonns and summarizes the arguments for simple and systematic
bookkeeping, accounting, and reporting.

This bulletin has been distributed widely. Its effect has been appreciable in en-
couraging institutions to publish at least some sort of financial report, and a begin-
ning has been made in bringing about some measure of comparability if not of
uniformity in those already published. So much more, however, remains to be done
that I venture again to revert to the subject. It is seldom that so large an evil can be
transformed into so great a good by so small an effort. Too many of our institutions
still publish no financial reports at all, and it is to be feared that many of them
have yet no adequate system of accounting.

It would seem needless to urge the absolute necessity of at least some form of finan-
cial reporting, — the example of the state universities and of our larger endowed
institutions being so conspicuous and so convincing. Almost every educational insti-
tution needs both adequate accounting and adequate reports, however simple these
may be. Sound educational policy can rest only upon sound financial foundations.
Many an aberration that appears on the surface to be purely educational is due to
an effort to preserve an appearance of prosperity while making efforts to ward off
financial disaster. Competent accounting and public reports would quickly put an
end to much educational false practice. Every institution that publishes a financial
report helps to hasten the time when such publication will be one of the necessary
duties of every sound institution.

The information that is desired from the financial reporting of educational insti-
tutions is merely a simple, honest, and intelligible display of the actual status and
operation of the institution so far as these are in any way financial. The readers of
such reports are in general trustees, alumni, friends and patrons, philanthropists who
have made or who contemplate educational gifts, and individuals and agencies engaged
in educational study. Simple and intelligible reporting is acceptable alike to the finan-
cier, the layman, and the student, and is equally desired by all. What all of these wish
to know are the general totals of permanent resources with their increases or decreases,
and the totals of current income and expenditure with their distribution and bal-
ances. For endowment it is desirable to know the totals, the general method of invest-
ment, and the amount of income available. The financial liabilities of an educational
institution must also be shown, if its nature and functions are to be thoroughly under-
stood. Whether these liabilities be in the form of annual or accumulated deficits, of
annuities that must be paid, or of mortgages on real estate, they are all too frequently
hidden or obscure. Concerning income it is desirable to know not only its amount,
but also its soui-ces as these represent endowment, student fees, and state or denomi-
national support. Certain items of expense, moreover, are of fundamental importance.

18t CURRENT EDUCATIONAL PROBLEMS

The amounts and proportions of the income that are spent for administration, teach-
ing, research, and upkeep, for libraries, laboratories, gymnasium, and chapel, — these
items are highly significant for the present and futui-e of the institution itself, and
are most suggestive to other institutions and to educators and legislators. A group-
ing of all of these essential matters of income and expenditure as they represent the
support and administration of an institution may be made in a few general sum-
maries, with references to such other details as may be desired.

In response to these plain and simple demands on the part of the public, Harvai'd,
Yale, and Princeton present complex financial reports, — of 173, 136, and 76 pages, re-
spectively. In each, complexity and detail confuse and obscui"e the general information
that is sought. If the eighteen octavo pages of the financial report of the University
of Chicago are adequate, what justification can there be for the 194 quarto pages of
the financial report of Northwestern University? Many bookkeeping details have, of
course, no place in printed financial reports. No one is greatly illuminated by 94 pages
of items like "washing towels $14.60" in the financial report of the University of
Toronto. The reports that have been mentioned are not only so minute that it is diffi-
cult to find the really significant items in them, but their terminology is extremely
varied. Terms like repairs and equipment, furniture and fixtures, have different mean-
ings to different persons and in different places in the same report. Some reports com-
bine current and investment accounts in their receipts and expenditures. Disburse-
ments are sometimes clsissified according to their object and sometimes according to the
source of the money expended. The captions of various schedules often give similar
names to different things and different names to the same things. Special funds are
sometimes included and sometimes not included in general funds. Even the printing
of such reports is often confusing because the same type is used for headings and
sub-headings, and small items are given more conspicuous headings than large
ones. In short, these financial reports, and they are representative, do not provide the
simple and adequate information that is sought from them.

An absolutely uniform system of accounting among our institutions of higher edu-
cation is unnecessary and probably impossible, but it should be possible to find out and
to compare without difficulty the important items of their financial resources and activ-
ities. Comparative financial statistics, so valuable and suggestive for the educator, are
still largely unavailable because of the great variability in financial reports. The United
States Census Bureau and the Bureau of Education, the National Education Associa-
tion and the National Association of School Accountants, are together endeavoring
to urge uniform and simple accounting and reporting upon our school authorities.
Such a study as has recently been made of the comparative cost of instruction and
research in psychology in our leading institutions is valuable and suggestive to all
who are interested in that and in related fields. It should, however, be possible to
obtain such information from printed reports without being obliged to undertake
a special inquiry in every case.

ADVERTISING AS A FACTOR IN EDUCATION 133

I venture, therefore, again to urge attention to this matter, and to commend the
forms printed in Bulletin Number Three as being simple, clear, and as, above all, seg-
regating the significant items. The experience of the Ohio State University in the use
of these forms is interesting. In the words of its secretary: "The representative of the
Ohio State Bureau of Inspection and Supervision of Public Offices was completing
the annual examination of the Ohio State University when the bulletin was received,
and he at once became interested in a study of the schedules as outlined in the report.
The financial transactions for the year ending June 30, 1910, were then brought
together, from existing records, to fill in the schedules as outlined, with the result
which you now have before you It was found desirable to modify some of the proposed
schedules, and in order to show the number of instructors in each department and the
salaries paid each grade, a new schedule (C, 5) was inserted. After the work for the year
had been reduced to the schedules, the result was so satisfactory that it was decided
to modify the system of accounting so as to provide readily the information required
by the report." One of the features of this system at the Ohio State University is
an admirable budget form, which presents for each item the expenditure for the past
and current year, the recommendation of the department, the dean, and the president
for the coming year, and finally the amount appropriated by the trustees. The Uni-
versity of Wisconsin, while continuing to issue its legal biennial report of receipts
and expenditures, publishes also an educational report in the forms recommended by
the Foundation, for the sake of simplicity and easy intelligibility and for purposes of
comptunson with the reports of other institutions using these forms. A general con-
ference of financial officers of state universities at Chicago in January, 1912, expressed
its special appreciation of these forms as both simple and adequate.

ADVERTISING AS A FACTOR IN EDUCATION

Foe two thousand years the Teutonic peoples have been characterized by their love
of freedom. Noble as is this ideal, it has not always carried with it the recognition
that the ideal of freedom necessarily involves the idea of limitation. Even in a de-
mocracy the individual must accept the limitation of law, of public duty, of personal
responsibility, if he would enjoy his freedom. There has been in our country in recent
years a growing disposition to insist upon the rights of freedom without its limita-
tions and its obligations.

These conditions have been favorable to an increase in the number of those who
make use of freedom to take advantage of others. Deception has been extraordinarily
easy under the law and under the attitude of public opinion toward its enforcement,
and of the various methods of deception, advertising has come to be one of the most
common. It ranks to-day in this respect with adulteration and substitution. Numerous

184 CURRENT EDUCATIOxNAL PROBLEMS

agencies of manufacture, of commerce, of industry, of letters, of art, have successively
become parties to xmworthy methods of advertising. It is perhaps entirely to be ex-
pected that education and educational institutions existing under similar conditions
should become, to a greater or less degree, involved in this practice.

Has advertising a function in education ? If so, what is that function, and under
what limitation may it rightly be exercised by a college or university? In the An-
nual Report of 1909 I devoted some pages to a discussion of this question. I venture
to return to it at this time because observation of the matter in the interval seems to
indicate that the objectional use of advertising in education has grown steadily.

To state in a few words what is the right function of advertising, so far as education
is concerned, is not simple. This is evident when one considers the conception of the
term as currently used, that is, the publication in the printed page, by the authori-
ties of the university, of information with regard to it. Such a definition includes in
advertising such publications as the annual catalogue, the circulars of information
concerning work, announcements of the opening and closing of terras, statements of
the equipment and facilities of the institution, reports of its financial condition, and
all other publications pertaining to its work and to the opportunities that it offers
to students. Such statements appear partly in publications issued by the institution,
partly in magazines and newspapers, and at times, in articles prepared under the
authority of the institution and furnished to newspapers.

It is clear enough that there is a legitimate use for the printed announcement
of a university and of the work that the institution does. The difficulty comes in
drawing a line between that which is wise and right and that which is unwise and
misleading.

A few principles may, I think, be laid down which should govern a college or uni-
versity in dealing with this matter, for no college in a democracy can separate its
educational leadership from its moral leadership, whether it will or not. An institu-
tion exercises a moral as well as an intellectual power, and the conditions that deter-
mine the natiu*e of its use of advertising are founded partly upon moral considerations
and partly upon those of academic good taste.

The first of these considerations I believe to be the determination that printed
matter concerning an institution of learning shall be given out only for the purpose
of enabling a possible inquirer to find what he seeks, never with the idea of attract-
ing students in the competitive sense.

Secondly: in stating the facilities which the institution offers, every effort should
be made to be clear, brief, and accurate, so that the inquirer may really gain from
the printed statement some conception of the actual situation described.

Finally : in announcing the facilities which the college offers, the claims put for-
ward should be sincere, honest, and modest. Modesty is an old-fashioned virtue, but
there is none which becomes a college better, or which ought more truly to charac-
terize the academic spirit.

ADVERTISING AS A FACTOR IN EDUCATION 135

One who examines with care the publications of even our best and strongest institu-
tions will realize that these elementary conditions are seldom fulfilled.

For example, the catalogues and other printed circulars issued by the stronger
universities are, in many cases, so intricate and so technically worded that the general
reader can learn little from them. There are very few catalogues which would not
gain enormously in clearness and availability by the mere process of exclusion and
condensation. When, for example, catalogues approach the two and one-half pound
bulk of that of the University of Minnesota, they become almost impossible.

Much would be gained in clearness and in practical use for the student if the
material were prepared from the standpoint of what the student and his parents wish
to know, rather than from the standpoint of the professors of a department who
desire to compare well with every other department and with every other college. The
enormous mass of detail usually given serves to confuse rather than to aid either the
parents, students, or others seeking information.

On the other hand, a brief yet adequate summary of the equipment and endowment,
of the income and expenditures, such as has been recently included in their catalogues
by the University of Virginia and the Catholic University of America, is most sug-
gestive information for the parent and the student. Such statements usually appear
only in the annual report of a university, if at all, and yet there is scarcely any other
information which is more generally indicative of the real character of the institution.
If the more pretentious colleges and universities which announce long assortments of
courses should print side by side with these announcements the financial resources upon
which they rely to carry out the work oflPered, few would be deceived by their exag-
gerated claims. Unfortunately, the parent or the boy who examines the high-sounding
and attractive courses oiFered in the catalogues seldom inquires as to the actual means
in hand for making good the promises. All colleges appear equally honest to him.

Perhaps there are few other places where the catalogues of all American and Cana-
dian colleges are studied more systematically than in the office of the Foundation, and
with the purpose of obtaining information as to the actual work offered. It is thru
this experience that the Foundation speaks from the standpoint of one using the cat-
alogues for the ends that they are supposed to serve. One cannot go thru this work
without considering whether the primary purpose of many of these publications is
to afford correct information. Certainly there are few catalogues that would not be
the better if rewritten from this point of view. Whose need is the publication to
serve? Once this is consciously recognized, clearness, brevity, and accuracy are apt to
follow.

Perhaps there may be differences of opinion as to what is sincere and what is in
good taste, and as to whether discussion of these questions of taste is profitable. I ven-
ture, however, to add at least the statement that there are obvious limitations to the
use by universities and colleges of pictorial and colored circulars. The same remark
may be fairly made with regard to the practice of printing the academic biographies

136 CURRENT EDUCATIONAL PROBLEMS

of professors, — a practice which has grown enormously with the ever increasing crop
of doctors of philosophy. Such statements, if discriminating, have an undoubted value
as throwing some light upon the character and experience of the teachers, but the
models which have been used in the preparation of most of these biographies are
not to be commended. Safer models can certainly be found in either the English
"Who's Who," or the German "Wer Ist's."

An example of what ought to be shunned may be found in a recent circular of Reed
College, at Portland, Oregon, which includes in its biographies of professors, editor-
ships of college annuals, class votes on popularity, degrees that are expected, academic
biographies of professors' wives, the number of their children, and, finally, portraits,
which last are ever unsatisfactory intellectual documents. All of this savors of that
form of professorial self-advertising which punishes itself by calling forth not admira-
tion, but ridicule. This new and progi'essive institution might well have set a better
example to its neighbors in the state, like McMinnville College, which advertises a
"hand picked" faculty producing "a product second to none in America;'" the unen-
dowed Willamette University, only one-third of whose students are of collegiate
grade; Pacific University, only one-fourth of whose students are of collegiate grade,
in spite of a recent "student-getting campaign;" and the unendowed University of
Puget Sound, only one-fifth of whose students are of collegiate grade, in spite of the
fact that "Our faculty has been increased over 25 per cent and our courses of study
extended at least 50 per cent."

A fair consideration of the tendencies now evident in our American colleges, and
of the enormous number who are drawn into the colleges without preparation, will
convince any candid inquirer that advertising has no legitimate use to-day in edu-
cation in the United States beyond such straightforward, clear statements of the work
offered as I have indicated. Advertising beyond that point is nearly always wrong, and
in nearly every instance does harm. Any college advertising which aims to attract
students to an institution or to a department because that institution or department
desires more students, is almost sure to be harmful. College advertising, on the other
hand, ought to endeavor to make such an honest display of the institution's quali-
fications as will aid the student in a wise choice of the department or the institution
best suited to meet his needs. The unfair side of such advertising is clearly shown by
the almost universal tendency to advertise the newest and weakest part of an insti-
tution. A fair statement of an institution's equipment, endowment, expenditure; the
cost to the student ; the number, training, and scholarly accomplishment of its staff;
its requirements for admission and graduation, — these things are illuminating and
helpful. Anything beyond this aims at institutional aggrandizement rather than stu-
dent information.

Besides these direct methods of advertising, there are numerous others which are
indirect, of which the most common have come to be the publicity bureau, the alumni
organization, the honorary degree, and the free scholarship.

ADVERTISING AS A FACTOR IN EDUCATION 137

To deal with these agencies in full would require too great a space and go beyond the
purpose of this statement, which has for its object not so much a complete account of the
various methods of advertising as an endeavor to point out the spirit and tendency
that are involved, and the necessity for the honest college to stand fairly toward it.

The publicity bureau may be helpful or harmful according to the spirit of its con-
duct. An honest, interesting, and clear account of work done in an institution can
do only good, and the wider its circulation, the better. On the other hand, a publica-
tion which purports to be scholarly can be made as sensational as the most advanced
yellow journal could desire. Discoveries may be hinted at which arouse public expec-
tation. Ordinary routine work may be described so as to appear the latest scientific
research. A mediocre book may be exploited as of extraordinary merit. The entire
effect and value of such an agency depends upon the spirit in which it is conducted.

The attitude of alumni associations toward the institution with which they are
connected may be characterized in the same way. Such associations may become most
helpful and stimulating to the scholarly and moral life of the coUege, or they may
be transformed, and unfortunately too often are transformed, into agencies for solicit-
ing students and money. These last activities of alumni associations are so much a
matter of course that a national meeting of college officers of administration recently
discussed the topic, "The Most Successful Methods of Recruiting Students. How far
may Alumni Cooperation be utilized?"

The conferring of honorary degrees may be justified upon many grounds, so long
as these degrees are conferred with discrimination and justice, as they are in many of
our institutions, but it would be difficult to understand the academic ground upon
which some of the large and some of the small institutions confer these supposed
honors. For example, how can a small institution like St. Stephen's College (New York)
justify its conferring more honorary degrees than degrees in course?

The use of fellowships and scholarships as a bait to draw students is a story too
long to tell in a single paragraph. It is known of all college men, but the public does
not realize the extent to which this trade has gone, for in many institutions it has
become little better than a means of competition with neighbors. While in most
cases the older institutions have been more careful in this matter in their under-
graduate departments, the distribution of fellowships in their graduate schools has
generally gone on merrily. Without these bids, very many graduate schools would
be entirely bereft of students. Every institution should state, in its financial report,
the exact number of students to whom it gives free tuition, and in each case some sort
of accounting should be made to the trustees of the institution as to the reasons for
such action. It has been almost impossible to collect accurate statistics showing the
extent to which this practice has grown, but any examination of the treasurer's report
of most institutions will show a large discrepancy between the number of students en-
rolled and the receipts from tuition which naturally would result from such a body.
No practice has done more to demoralize educational conditions than this competi-

138 CURRENT EDUCATIONAL PROBLEMS

tive use of free scholarships, or of those partially free. It is one of the forms of com-
petition which has done most to bring students, who should have remained in their
high schools, into the weaker colleges, and to weaken the intellectual tendencies of
even the better colleges by the presence of more students than they can deal with
wisely. The man who is seeking a good college for his son or his daughter should
distrust the college which solicits his child's attendance, and most of all when the
inducement takes the form of a bonus such as a free or partially free scholarship. If
your son or daughter is to be well trained, some one must pay the cost. It is your
duty to pay it if possible, and if you accept aid, it should be made clear that you are
not doing this at the expense of some other boy. A scholarship supported by endow-
ment and conferred on right grounds may be a good thing for your son (tho even
here there are dangers), but a scholarship tendered by a college in order to get your
son's attendance is of the same nature as a rebate at your grocery store, — it is an
imposition on those who pay in full.

Those who have been most successful in the use of advertising methods in education
are wont to reply to such criticism by pointing to their results. In the minds of most
persons the bringing together of three thousand students — however immature and
ill-taught — is an answer to all arguments. This is success. It is exactly the same suc-
cess that the patent medicine advertiser achieves when thru advertising methods he
educates a whole region to buy and drink his nostrum. When his constituency has
grown to many thousands he has achieved success and the end justifies the means. The
process by which some of our largest colleges have been built up is very like that.

The answer to the advocacy of the patent medicine process of advertising in edu-
cation is not entirely simple; not only because the slow process of sincerity and good
taste is less often appreciated, but also because in all educational upbuilding, faith is
a necessary factor. If a college never took a step till the financial outcome were abso-
lutely secure, our progress would be slow indeed. Faith and devotion have their place
in college building no less than sincerity and honesty, and he would be a poor observer
of human nature who would seek to belittle them. It still remains true, however, that
in education there is every reason why faith and devotion should join hands with
sincerity and honesty rather than with pretense and superficiality. After all, is not
this question of growing less rapidly and more soundly the question which faces our
democracy in all the fields of endeavor — industry, education, politics? We have
thrown open our doors almost without discrimination, and in a generation the pop-
ulation has swarmed over and occupied a continent. Would it not have been better
to have admitted fewer, to have remained more homogeneous, to have advanced in
wealth and luxury a little more slowly, and to have known better what we were doing
and where we were going? In educational building the same process has gone on. Is
it a success educationally when, by such methods as have been employed, three thou-
sand immature youths are gathered into one institution that calls itself a univer-
sity? Does not this process foster just those national tendencies which the university

ADVERTISING AS A FACTOR IN EDUCATION 189

is meant to counteraxit, not to quicken? I do not think one can set out to answer
these questions fairly without coming to the conclusion that the university and the
college have lost intellectually and morally in proportion as they have given them-
selves up to the advertising spirit, and that in the process a false ideal has been set
up as to what constitutes educational success. Whatever may have been true thirty
years ago, it is clear that to-day we need not more colleges, but fewer colleges, not
more students, but better prepared students, and that the opportunity both of the
college and of the university to contribute to national progress lies not in bigness,
but in greater simplicity, sincerity, and thoroughness; not in advertising, but in mod-
est performance. Advertising in education is not so much a disease as a symptom.

In a word, competitive advertising clearly has no place in education. Independent
advertising has its place only when it is informational and thoroughly honest. Co-
operative advertising should not be too fine a thing to hope for. We may yet see
a group of our best universities issue in cooperation a comparative statement of their
offerings such as was issued formerly by the Association of Women Graduate Stu-
dents. It would be gratifying if the Association of American Universities and the
National Association of State Universities should unite their efforts toward some
such end. The matter was aptly put by the principal of McGill University in an
address on "Inter-University Arrangements for Post-Graduate and Research Stu-
dents,'' at the recent Conference of British Universities in London :

" The way from competition to cooperation is long, but there is a growing con-
viction that competition in post-graduate work is at present unduly expensive,
sacrifices the student, and hinders scholarship in order to ftirther personal, insti-
tutional and regional emulation. When our graduate students have some accred-
ited method of learning that if they want to study a certain subject they will
find that subject best taught in a certain university, we shall be in a much better
and more highly organized condition than at present. The problem is not free
from difficulties, but it will be found as time goes on that increased cooperation
shows the direction in which a solution ought to be sought."

While it may not be easy in the conditions which surround our educational institu-
tions at this day to indicate with exactness what the limitations are which a consci-
entious and scholarly college should impose in its advertising, it is possible to point
out some of the things which clearly ought not to be done, and in a democracy, the
knowledge of what ought not to be done is the beginning of wisdom.

I venture, therefore, to refer to a few directions in which it seems clear that the
advertising spirit has got the upper hand of the scholarly ideal.

It is a common practice, particularly among the smaller institutions, to advertise
themselves as the equals of the best. Sweetbriar College (Virginia) is "of the grade of
Vassar, Wellesley, Smith and Bryn Mawr." Scotia Seminary (North Carolina) is "the
Mount Holyoke of the South." Elizabeth College (North Carolina) "ranks with the
best colleges for women." Spring Hill College (Alabama) "ranks among the best edu-

140 CURRENT EDUCATIONAL PROBLEMS

cational institutions of the country.'" Oxford College (Ohio) is "equal in efficiency to
any of the higher institutions of learning for women in the East." The Woman's Col-
lege (Illinois) is "the best Woman^'s College in the West." At Valparaiso University
(Indiana) "the course of study in the Medical Department is the same as that of the
best medical schools."

An even more common practice is the reckless use of superlatives. Thus, the Onta-
rio Ladies'* College "offers the highest educational facilities;'" Salem College (North
Carolina) is "the best known school in the South;" Brenau College (Georgia) "offers
the highest grade collegiate advantages ; " Rockford College (Illinois) is of " first rank ; "
Shorter College (Georgia) is " of unsurpassed excellence." The University of Denver
announces that " the best of everything is to be found here." McMinnville College
produces "a product second to none in America." Such a competition in the irrespon-
sible use of language defeats its own end. When one reads on the same page that Cen-
tral College (Missouri) is "the Highest Grade College in the West for Girls and Young
Women," and also that Lexington College in the same town has the " oldest, best
and highest standard in the West," one merely turns elsewhere, even tho the latter
institution adds that it has a "high-toned . . . noble faculty." Sad experience also
teaches one to question the promise of the Fine Arts Institute of Omaha, "if you
love the beautiful, we guarantee to teach you Art,'" and of the Combs Conservatory
of Philadelphia, "you cannot fail to become an artistic player or singer if you come
here."

The school advertising pages of our magazines are constantly enveloped in an iri-
descent spray of such adjectives. Each institution has a location that is either mag-
nificent, glorious, unrivaled, or ideal; its equipment is thoroughly or completely mod-
em, remarkable, excellent, or superb ; its faculty is composed of experienced, cultured,
superior, distinguished, leading, and inspiring teachers, who use "the best methods"
with "a proved power to make scholars." The advantages and opportunities of each
institution are unusual, exceptional, rare, unsurpassed, matchless, and preeminent,
providing "education par excellence," — "no other school in the country gives equal
advantages." Each possesses either the finest college spirit with the highest ideals,
or a delightful, dominant, romantic tone of culture. In short, every institution has
every college activity. They are all unsurpassed, unique, preeminent, and ideal.

What is the effect of all this upon the reader.? The well-informed man sighs and
turns away. The earnest inquirer endures the economic waste of the cost of verifica-
tion added to the cost of competition until his search is rewarded by an institution
that offers "an honest education," a school that "does not claim superiority to every
other school in the country," but "is simply a modern school with old-fashioned
ideals," or a college "for students devoted to work." The merely credulous reader,
however, and his name is legion, eagerly sends ill-prepared students to institutions
that are educationally futile, or worse, and the intellectual end of these students is
oftentimes full of bitterness. For so far as the student is concerned, such advertising

ADVERTISING AS A FACTOR IN EDUCATION 141

is almost wholly bad, and so long as people trust it, the weakest institutions can
outshine the strongest, and the unworthy will continue to live by advertising.

It is simple fairness to the public that the nature of this sort of bidding should
be brought into the light. This is the only reason for describing here the most in-
geniously offensive piece of college advertising that it has been my fortune to meet.
This is a series of weekly full-page notices of Muskingum College, Ohio, which ap-
peared in the United Presbyterian, published at Pittsburgh, from October 12 to De-
cember 14, 1911, inclusive, as part of a "campaign" to collect $250,000 for equip-
ment and endowment. The first notice (October 12) devotes a poster picture and a
dozen kinds of display type to " Muskingum College and the Ministry," urging that
the denominational coUege is the primary source of an educated ministry. The second
notice (October 19) presents "Muskingum College and Foreign Missions" in type an
inch high, a map showing the route from the college to the uttermost parts of the
earth, and nine rude portraits, including one of the Pope, representing natives of the
lands to which gi-aduates have gone as missionaries; the argument being that "the
Church is Dependent upon the Denominational College for its Missionary Force." In
the third notice (October 26) the same argument is extended to "Muskingum and
Missions in the Home-Land," this time with two rude portraits of a boy and a girl
missionary overlooking the subjects of their ministrations, who are scattered upon a
route map of the United States. Notice four (November 2), "Muskingum's Contribu-
tion to the Educational World," displays nine half-tone portraits of graduates who
became university, college, and seminary presidents and professors, including "the
most beloved Bible teacher in America." On November 9 a wheel-like diagram indi-
cates that "Muskingum College is at the Geographical Center of the Church." Below
there appears a rude comic cartoon of an old shoe, filled and overflowing with riot-
ous students, while a figure in academic costume chases others away with a bundle of
sticks. This is interpreted in three stanzas of verse like the following, the scholarly
qualities of which will be evident:

" There is a college president, like the womaji in the shoe,
Who has so many children that he does n't know what to do.
He tries to treat them fairly, and give them each some room
But the college grows so grandly, like a town site on the boom,
That unless her friends soon rally and provide another shoe

^ He must say to all new-comers : 'Get out of here ! Skiddoo!' "

The issue of the periodical for November 16 bears on the cover a view of nine build-
ings of the college, all yet to be constructed. The advertisement within illustrates
the " Haul of Fame," — donors bringing bricks by hand, hod, litter, wheelbarrow,
wagon, train, and aeroplane, the explanation being that ten cents will provide for seven
bricks, $50,000 an entire building. November 23 presents another cartoon, a tug of
war between the "Church at Large" for $150,000 and the Alumni and the Synod of

142 CURRENT EDUCATIONAL PROBLEMS

Ohio for $100,000. The contestants are expressing their enthusiasm by such remarks
as "It looks good to us," and "Nine Rahs for the Church."" The reader is invited to
"Get in the stream of Muskingum's influence and make as big a splash as you can."
The issues for December extended the period during which subscriptions would be
received, promised college annuals to donors of $15 or more, and pictured the con-
tent that would appear upon the faces of any who would offer annuity gifts or lega-
cies,— "2 Great Opportunities for an Endless Life." It is astonishing that advertise-
ments bearing such evident marks of insincerity and vulgarity should be admitted
to the columns of a reputable religious journal.

Many of the institutions that indulge in such outbursts do not, of course, deserve
the name university or college. Since the discussion of the unwarranted use of these
names in the Annual Report of 1907 this situation has somewhat improved, but too
many secondary schools still call themselves colleges, and too many so-called univer-
sities are still large secondary schools, with numerous appendages in the form of busi-
ness departments, art departments, and the like, to catch the unwary. The L^nited
States Commissioner of Education in his report for 1911 transferred eighteen insti-
tutions calling themselves colleges to his list of secondary schools. His specialist in
higher education published in the same yeai* a preliminary classification of univer-
sities and colleges with reference to their bachelor's degrees as these prepared their
holders for work in graduate schools, and estimated that only 59 institutions granted
degrees that were entirely acceptable, and that only 161 others gi*anted degrees that
were approximately so. These 220 institutions comprise less than one-fourth of the
institutions in the country that call themselves universities and colleges. The various
regional and state associations of colleges and preparatory schools are performing a
notable and difficult service in associating the honest institutions.

Besides the large group of careless and iri'esponsible advertising colleges, there
remain those which are purely commercial. To these belong many of the correspond-
ence schools and many of the proprietary professional schools of medicine and law.
The advertisements of most of these institutions are absolutely misleading. They
promise every advantage of university education, with no means to fulfil the promise.
In many cases this con'espondence has been so delusive as to bring them within the
scrutiny of the federal postal authorities. Some of these institutions have been closed
by the arrest and imprisonment of the offenders.

Some conception of the part played by careless and inaccurate and competitive
advertising on the one hand, and by unworthy advertising on the other, will be
gained from the statement which has been given. There are two phases of the ques-
tion which I venture to commend to the consideration of the colleges themselves.

The first is the disappointment of the boy who has been deceived. It would aston-
ish many to know how many men there are in the United States to-day who feel
bitterly toward institutions which tempted them into their walls on reports which
later have been discovered to be untruthful. This resentment will in future years

EDUCATION AND POLITICS 143

become stronger. The man who has been deceived into the idea that he was entering
a college, when he was really becoming a student in a high school, will generally find
it out, and in the long run this sort of deception will bring its own return.

Finally, the present situation in American education in this matter imposes special
obligations upon the conscientious institutions. Just so long as the old and well-
estabhshed college lends itself to a sensational and misleading exploitation of its
own advantages, just so long as it departs from the fair standards of academic sin-
cerity and good taste, it famishes example and inspiration for the reckless and irre-
sponsible college to go far beyond it, and it makes an excuse which the commercial
vendor of professional education is only too eager to seize. There is here for the honest
college a duty to the public which touches its moral leadership very closely. It is part
of such leadership to make clear to individual citizens the limitations which go with
freedom no less than the privileges and the rights of freedom. It does this in the only
effective way when it conducts its own business not only within the law, but also
within the limits of academic sincerity, honesty, and good taste.

EDUCATION AND POLITICS

In the American nation the educational unit, like the political unit, is the state. Not
only has each state government developed an educational system of its own, but
the independent and the denominational colleges also have grown in accordance with
state boundaries. Whatever political considerations, therefore, enter into the control
and management of institutions of learning arise out of the political influences which
are developed in the state itself. They are the result of state politics, not of national
politics, except in those regularly recurring cases in which the states endeavor to better
their educational systems at the expense of the national treasury.

The effort to free the state institutions of learning from party politics has been a
long struggle. In the earlier days of the state universities, not only were these institu-
tions the prey of political parties, but in some states religious denominations sought
to control them. Happily that day has now passed. No political party and no sectarian
body, as such, is undertaking to-day to control the state institutions of higher learn-
ing. The politics which still encumbers these institutions is not party politics, but per-
sonal politics. Such political influences as remain arise out of the desires of trustees to
get places, to repay political debts; out of the ambitions of men and of institutions;
out of the rivalries of competing colleges. The question is no longer how to keep out
the control of Democrats or of Republicans, but how to prevent men who are in one or
another party from using the state institution of learning for personal ends. Human
nature in endowed institutions is in no sense different from human nature in the tax-
supported colleges and universities. In them individuals and groups of individuals also
play at politics. Their rivalries have brought in many cases similar unnecessary cost

144 CURRENT EDUCATIONAL PROBLEMS

to the public. Within a recent period privately endowed institutions are obtaining
appropriations from state governments without assuming the supervision and control
which ordinarily goes with state aid.

The politics which enters into higher educational management therefore usually ap-
pears under one of the three following forms: (1) thru the appointment of a board of
trustees lacking knowledge of educational needs and ready to gratify personal ambi-
tions at the expense of the institution ; (2) by the efforts of rival state establishments
or their presidents to exalt their own institutions and to cover every field of instruc-
tion; (3) thru the efforts of endowed institutions to obtain state appropriations with-
out accepting state scrutiny or state control. These three forms under which personal
politics enters deserve thoughtful consideration at the hands of those who have to do
both with education and with legislation.

The PoLrriCAL Board of Trustees

The selection of boards of trustees or of i*egents, whether for endowed institutions
or tax-supported institutions, remaijis to-day one of the weakest points of our univer-
sity organization. In endowed institutions such boards are likely to become dummy
boards. Prominent business men are often selected for these positions because of the
hope that they may give money. Ordinarily, when the business man has subscribed a
certain amount, he considei"s that he has discharged his duty. Generally he has little
quahfication for the duties of a trustee, and has already in business grown accustomed
to dummy trusteeship. Such a board of trustees usually intrusts the actual manage-
ment and responsibility to one member, generally the president. Under such a regime
an institution may obtain a paternalistic and benevolent form of government, but not
one which lends itself to the conception of a true university. The boards of regents of
state institutions are usually restricted in number, so that the responsibilities of trus-
tees are not so diluted. Such boards have been inclined to go to the opposite extreme
and to consider themselves not only governors, but executives of the university, usurp-
ing the duties of president and faculty. Only a limited number of institutions, whether
endowed or tax-supported, have succeeded in securing a small effective body of men
who are acquainted with education and are willing to give thought and time to the
problems of the university, and are content to remain meanwhile the advisers and
helpers of the president and of the faculty, realizing that their function is to govern,
not to administer.

In the state institutions the boards of trustees or regents are sometimes elected
by the people of the whole state, but more generally are appointed by the governor,
either with or without confirmation by the state senate. The political difficulties of
most state institutions have come thru the personal politics of the members of the
board of regents so appointed, and they arise not out of the effort to serve this party
or that, but to further personal interests.

EDUCATION AND POLITICS 145

The matter is well illustrated in the action of the board of trustees of the State
University of Kentucky some years ago in the choosing of a president, to which refer-
ence has already been made in these reports. Kentucky was in just that position where
an educational leader at the head of its state university would have been of untold
service to the whole commonwealth. The board of trustees had the opportunity to
serve the state in a most far-reaching way by the choice of such a man, and announced
their intention to follow such a policy. A committee of the board was appointed
to find a pi*esident. The leading member of this committee was a prominent demo-
crat, without educational training or experience, and the committee recommended,
and the board subsequently accepted him as the president of the university with the
help of the republican governor of the state (a Harvard graduate). No party pur-
poses were served by this transaction. The politics which entered was of the personal
form.

The troublous history of the State University of Oklahoma, arising out of the work-
ings of a political board, has been referred to in previous reports. The overturning of
the university and the dismissal of President Boyd as the result of action by a board
of trustees moved by local and political considerations was fully described. Since that
time its history has advanced rapidly, and the state university was provided with an
entirely new board of trustees, which also had in charge all of the public institutions
of the state. This board promptly dismissed the president so recently appointed and
a number of professors, and appointed a number of new men. The institution was for
a time under an acting president, but has been fortunate enough to secure in Presi-
dent Brooks, who accepted the presidency last spring, a man of admirable training
and experience, who, if he is allowed to administer his office without interference, will
undoubtedly serve the institution and the state well. Since President Brooks's accept-
ance, however, his board of trustees has been changed by the abrupt dismissal of three
of its members by the governor of the state. A remarkable situation has resulted from
this action. The governor called the senate in special session to confirm his new ap-
pointees to the board. The senate refused. As a result the governor has appointed a
temporary board to act in necessary matters until the convening of the legislature in
January, 1913. The governor issued a carefully prepared statement setting forth his.
reasons for this action. In this statement he charges that the proof placed before
him compels him to believe that the three trustees dismissed had used their offices
as trustees for their own political advantage, that they had dismissed competent,
faculty members in order to appoint pei*sonal favorites, and that there was grave rea-
son to believe that they had entered into dishonest arrangements with the American
Book Company for a contract for supplying school-books to the state for a period of
five years. It may not be known generally to what extent the scandal of contracts for
school text-books has gone in certain sections. In some states the school-book lobby
is looked upon as one of the most objectionable legislative influences of corruption.
Governor Cruse's action in removing these trustees and his straightforward and com-

146 CURRENT EDUCATIONAL PROBLEMS

plete statement of the reasons for it deserve the approval of the public of his state.
His paper is an educational document of high value for the light it throws upon the
political conditions which may sometimes obtain in such boards. The people of the
state of Oklahoma sincerely desire that their institutions may be conducted upon good
lines. Their administration of state government has been under circumstances of the
highest difficulty. The population of the state grew in a few years from sparse and
widely scattered settlements to a million and a half people ; when the first state elec-
tions were held, the great body of citizens had no means of knowing the political sin-
cerity and ability of the men who offered themselves for office; the opportunity for
the political demagogue was unusual. With the experience now gained, it may well be
hoped that a public sentiment will develop which will insist that trustees of the state
institutions shall be men of such intelligence and character that they give themselves
sincerely and honestly to their duties, and be concerned in no secondary benefits of
a political sort. The present regime, under which one board of trustees undertakes
to govern all the educational and eleemosynary institutions of the state, has clearly
proven its impossibility.

Personal politics among trustees is not confined to tax-supported institutions. In
view of the rapid entrance of women into political life, it is interesting to note that
the president of Wells College, a man of high standing and fine service, was recently
forced to resign by the action of a group of the women trustees of the college whose
methods resembled those of the political caucus. As a protest against these methods,
five of the eighteen trustees of Wells College resigned. Caucus methods for getting
rid of a president who may be out of favor with any particular group of trustees or
alumni in no wise differ in endowed institutions from similar methods in tax-sup-
ported institutions. The way to bring about a change of presidents, if such change is
necessary or desirable, lies in an absolutely open method of dealing with the situa-
tion by the whole board of trustees.

Institutional Rivalry and Personal Ambition

Next to the politics which enters thru politically appointed trustees, the most
common source of educational politics lies in the division and consequent rivalry of
state institutions. Perhaps no one situation has offered so great a field for state
politics in education as that which arises out of the struggles of a state university,
a state agricultural college, and a state teachers' college, each of which aspires to
cover the whole field of education. Such a situation furnishes exceptional opportu-
nities for legislative log-rolling by reason of the local self-interest which is aroused.
One part of the state is played against another part, and each secures appropriations
at the expense of a sound educational policy. Furthermore, such a situation affords
the widest scope to the personal ambition of those who may head such competing
institutions. On the whole, it may be said fairly that politics of the objectionable sort

EDUCATION AND POLITICS 147

has had a larger play in education by reason of such rivalries than by any other cause
outside of the politically appointed board of regents. So keenly has this situation
been felt, that in states like Iowa, Oklahoma, and Florida efforts have been made to
get rid of the rivalry and log-rolling in the legislature by concentrating the admin-
istration of all state institutions of higher learning in a single board.

The most hopeful effort of this sort is the Educational Commission of the state of
Iowa, which was fully described in my report of 1909, and which now has had three
years of history. This board has sought to deal sincerely with the difficult problems
with which it has been concerned, and it has recently taken very decided action in
the endeavor to coordinate the three state agencies of higher learning with which
it was appointed to deal, — the state university, the state college of agriculture and
mechanic arts, and the state normal school. It has limited the function of the state
normal school, which was developing into an arts college, into a training school for
elementary teachers. It has transferred the school of home economics at the agri-
cultural college to the state university, and it has solved the question of competing
schools of engineering by abolishing the school of engineering at the univei"sity and
retaining that at the agricultural and mechanical college. These recommendations,
on the whole, are in the direction of a coordination of state educational institutions,
and if worked out patiently and fairly, should lead to a wiser use of public money
in education and to the avoidance of harmful rivahy. No one familiar with edu-
cational demands can doubt that it is the business of the normal school to devote
itself heartily and unreservedly to the training of teachers, rather than to develop
a college of arts, of which in the state of Iowa there is a plethora. The decision in
the matter of the engineering school does not rest upon such secure educational
ground. One school of engineering, supported by the state, is all that can be justified,
but the place of such a school would seem to be clearly in the university and not
in the school of agriculture, and this is no less in the interest of agricultural teach-
ing than in the interest of engineering. In this instance the board seems to have
adopted the measure which was politically easier rather than the one which was edu-
cationally sounder.

Efforts in other states to curb the tendencies of competing state institutions by
the device of a single board have not borne out the hopes of those who undertook the
reform. This result is due in the main to two causes. First of all, the administrative
machinery under which a single board undertakes to deal with institutions of widely
varying scope is an almost impossible one. Trustees can rarely be found to give time
and thought to a single institution. When there is committed to them a group
of institutions, either the fortunes of each institution are turned over to a single
member, or else the board is likely to develop into a body dealing with a series of
unrelated and diverse details. Secondly, in most cases such boards have been made
up upon political rather than educational grounds.

The outcome of one of these efforts, that in the state of Montana, resulting in the

148 CURRENT EDUCATIONAL PROBLEMS

past summer in the summary dismissal of the president of the university, illustrates
so strikingly the weaknesses inherent in such an organization that a brief statement
of the circumstances cannot fail to be of value in the experience of other states.

In the state of Montana there is a constitutional state board of education, made
up of three ex-officio members, — the governor, the attorney-general, and the state su-
perintendent of public instruction, — together with eight other members appointed
by the governor not subject to confirmation by the state senate. These last-named eight
members serve for fixed terms. In addition there is another board, the state board of
examiners, composed of the governor, the attorney-general, and the secretary of state,
which has the power of financial supervision and of financial scrutiny over all the
state institutions, including those of education. The institutions which come imme-
diately under the state board of education are the state university, the agricultural
college, the school of mines, the normal school, the reform school, the orphans' home,
and the school for defectives. At the same time, however, the state board of examiners
has complete control of these institutions in financial matters. Supplementing these
two state boards, each of the institutions just named has an executive board, com-
posed of the president of the institution and two members appointed by the governor.
Each executive board has strictly subordinate powers, conferred and defined by the
state board of education in educational matters and by the state board of examiners
in financial matters.

The complex relations which a president of an educational institution in Montana
has under this regime are evident at a glance. This complexity is heightened by the
fact that the governor is expected to appoint one representative of each educational
town on the state board of education. Naturally, therefore, in the past the interests
of eswih institution have been cared for by the member from its town. Each town
representative thus became a controlling factor in the board in the affairs of its own
institution, and by a system of cotu^esies common in such legislative business, the
local membei*s could generally count upon reciprocity of support.

The arrangement also makes quite clear the fact that the governor and the attor-
ney-general, under such a situation, can in large measure control the affairs of all
these institutions, if they care to take such action. In fact, these two officials, com-
posing as they do a majority of the state board of examiners and having control of
every matter involving money, are the chief factors in the educational situation.
When they come to sit with the representatives of each town or institution, the
opportunities, at least, for typical political exchanges of favors are obvious.

The board so constituted abruptly dismissed last June the president of the state
university. It does not seem wise or desirable to go into an examination of the details
of this action or of its justice or injustice. On the other hand, the dismissal of a uni-
versity president in Montana is a matter which affects every other university, and the
conditions which make possible so unfortunate an episode are fruitful subjects for
their study. Assuming that all those concerned in the transaction acted from the best

EDUCATION AND POLITICS 149

motives, two lessons from the experience of Montana seem evident, as to the methods
of administration which ought to hold in university management.

In the first place, it is clear that the division of the state university into unrelated
sections and the appointment of a board chosen partly on political and local grounds
affords the opportunity at least for a large play of sectional and personal motives.
Such a board of trustees dealing with institutions of diverse types is clearly impos-
sible from the standpoint of effective institutional administration. The one board
plan was adopted to meet the exigencies of a divided institution. The result in Mon-
tana goes far to show that such a device cannot cure the original mistake made in
establishing competing state institutions. A small responsible board, chosen on the
ground of fitness and willingness to give time and study to the problems of the insti-
tution, constitutes the best agency as yet devised for governing a state university.

Secondly, whatever may have been the grounds for a sudden dismissal of the presi-
dent, the method by which it was carried out was one calculated to discredit both
the board and the state. To hold inquiries in the president's absence and to dismiss
him by mail after an executive session is not the way to effect a change of adminis-
tration. The university is assumed to represent a high form of just and open dealing.
If the president has to go, there is a dignified, open, and straightforward way to
conduct such a matter. To deal with it in any other way is to strike a blow at the
university itself, and at the ideals for which a university ought to stand.

The experiences of Montana, Kentucky, Oklahoma, and other states ought to carry
their own lessons to those who are seeking to govern our state universities upon right
lines. To-day the problem of an efficient, fair-minded, and devoted board of trustees
for our state institutions is one of the most vital questions in their government. It
is of great importance that public attention should be turned to this question. The
ability to furnish such a board for a state university is a high test of the civilization
of any American commonwealth.

Teansfoeming Noemal Schools into Colleges

How great a part personal and institutional ambition has played in the develop-
ment of educational politics it would be difficult to say, but the results of it can be
seen in every state where the divided institution exists. These appear usually in two
forms : first, the endeavor of each institution to cover the whole field of education
and the consequent duplications which ensue; secondly, the widespread tendency to
drop the legitimate work for which the institution was founded in order to take up
some other work which appeals to the ambitions of its president, or of its board of
trustees, or of its faculty or alumni.

Examples of the first sort have just been alluded to. Other examples in the edu-
cational history of Iowa, Colorado, Michigan, and various other states will readily
occur to the reader.

150 CURRENT EDUCATIONAL PROBLEMS

Where three or four state institutions exist, this rivalry has inevitably led to much
commerce with the legislature, to overlapping institutions, and in nearly all cases to
a strenuous struggle for students. The three-cornered rivalry between the university,
the agricultural and mechanical college, and the normal school in the states like Iowa
and Kansas are typical instances of the results of such a regime.

A singular outcome of this situation in recent years has been the effort of the normal
school in many states to transform itself into an arts college. The normal school
is at best a singular institution, seldom related logically to the educational system
of its state. Its weakness from the educational point of view lies in the fact that it
undertakes to make a teacher of a man or woman whose education is so limited as to
afford slender basis for a teacher's training. From the time of Horace Mann, however,
it has been the agency upon which our states have come more and more to depend
for the training of teachers for the elementary schools, and particularly for the iniral
elementary schools, since the larger cities have in many cases provided agencies to
train teachers for their own schools. Notwithstanding its educational isolation, some
such agency as the normal school seems necessary at the present stage of our educa-
tional organization, and probably will be necessary for many years to come. When
one considers that in many of the middle western states not more than ten per cent
of all the public school teachers have had the equivalent of a high school education,
one realizes that in order to obtain the necessary teachers for the common schools of
the country, some agency must for a long time prepare a large number as best it
may. One may well hope that the low standards of training for rural teachers now
in use in many states may be raised, and that the necessary number of teachers may
be forthcoming at a continually higher level, and that school teachers may soon be
themselves fairly educated men and women. In any case the function of the normal
school in our present situation is definite, clear, and of immense importance. It is
therefore little less than astounding to find normal schools in so many states ready
to turn aside from this definite and important work, in the effort to transform them-
selves into weak colleges, and this, too, in states where the number of such colleges
is already larger than the ability of the population to sustain. This movement has
arisen in some cases out of the ambitions of the heads of these institutions and of
their faculties, who somehow have the mistaken feeling that the work of the college
is more honorable and more desirable. In some cases it has been undertaken with the
honest belief that the two institutions, college and normal school, would grow side
by side, a result which would be against all our educational experience; but from
whatever motive undertaken, it has inevitably involved these schools in politics.

An illustration of such legislation is found in the measure passed by the last session
of the Wisconsin legislature to the following effect: "The Board of Normal School
regents may extend the course of instruction in any normal school so that any course,
the admission to which is based upon graduation from an accredited high school or
its equivalent, may include the substantial equivalent of the instruction given in the

EDUCATION AND POLITICS 151

first two years of a college course. Such course of instruction shall not be extended
further than the substantial equivalent of the instruction given in such college course
without the consent of the legislature."

This language is capable of at least two interpretations. It might mean the exten-
sion of the normal school course for two years along normal school and pedagogical
lines equivalent in intellectual demand to the cori'esponding years in college, thereby
training a better teacher, or it might mean the superimposing on the normal school
of two years of ordinary college work. Apparently both of these ideas were in the
minds of those interested in the legislation. As a matter of fact, however, the normal
schools have immediately translated this legislation into the authority for establish-
ing the first two years of an arts college.

It requires no prophet to see whither this movement leads. Under the arrange-
ment college students and normal school students are in the same classes. It will not be
long before there is an attempt to so extend the curriculum that the equivalent of
four college years will be given. Already the normal schools are introducing technical
studies and asking for credit for the first half of curricula in agriculture and engi-
neering. There are in Wisconsin eight state normal schools, and more are in pros-
pect. This movement means the transformation of these schools from institutions
primarily designed for the training of teachers to colleges having the ordinary college
atmosphere with all the distractions which differentiate the American college from
the professional school. It may be wise for these professional schools to be trans-
formed into colleges, but if this is to be done, it should come only after a fair and
full discussion of the whole matter from the educational point of view. There are
those who contend that the atmosphere and spirit of the present day college can be
successfully grafted upon the professional school. Perhaps this is true, altho the evi-
dence would seem to be against it. The result of such a mixture is likely to be an
institution lacking the best qualities of both. But in any case, such legislation should
not be enacted until those responsible for it have had a full discussion of the whole
matter by men familiar with educational problems and who are not directly inter-
ested in the problems either of the Wisconsin normal schools or the Wisconsin en-
dowed colleges. Wisconsin has in many respects led the way among American com-
monwealths in the intelligent use of experts in the solution of legislative problems.
This question is one which ought not to be legislated upon without the light of expert
and unbiased educational judgment. To legislate on such a technical question in the
absence of an expert survey of the problem is to legislate in the dark.

In this connection one word should be said on another phase of the general problem
of education for a state. One of the arguments used to justify this transformation of
the normal schools is the plea that the undergraduate schools in the state universities
are overcrowded and need reUef, and the transformation of normal schools into col-
leges will effect such relief, leaving the state university free to deal with university
work. It is true that a number of state university rmdergraduate schools are over-

152 CURRENT EDUCATIONAL PROBLEMS

crowded. This is the result of many causes. In some states low standards and advertis-
ing methods have brought more students than the state university can teach wisely.
In other states the number of fairly prepared undergraduates is becoming too large
for the insti-ucting staff. Where the enforcement of decent standards and the drop-
ping of advertising methods does not meet the situation, some other solution will be
sought, but that is no argument for diverting the norrasd schools from the specific
work for which they were created.

State Aid without State Control

The participation of endowed institutions in state aid has so greatly increased in
recent years as to form a distinct question of public policy, and one which has hitherto
received scant attention.

We have proceeded in the various American commonwealths upon the theory that
there were two methods of conducting higher education : one the method of govern-
ment support and control, the other the method of private endowment and control.
Each of these plans is clear-cut and is politically consistent. There has, however,
grown up in the last ten or fifteen years a movement which contemplates a mingling
of these two plans, — an institution drawing large appropriations from the state,
but over which the state exercises no authority. This movement has obtained head-
way mainly in the New England and Atlantic states, and particularly in those states
where there is no tax-supported university. Indeed, one of the arguments which has
been most commonly used in the appeal to legislatures for such appropriations has
been the plea that it was necessary for privately endowed institutions to meet what
is called the "educational competition" of the great tax-supported universities, and
that the states where no state university had been founded should therefore assist
the privately endowed institutions. In this situation again the question of college
competition has been made to play a large role.

In the New England states New Hampshire makes a grant to Dartmouth College
nearly twice as large as the grant to its state coUege of agriculture and mechanic
arts. Vermont gives subsidies to all three of the privately endowed institutions of
higher education in the state, the University of Vermont (which is not a state uni-
versity), Middlebury College, and Norwich University.

In Massachusetts the legislatui'e a few years ago made large continuing grants to
the Massachusetts Institute of Technology, and a year later similar, but smaller
grants to the Worcester Polytechnic Institute. In the state of New York public
funds are granted, under somewhat more carefully framed conditions, to Cornell
University, Alfred University, St. Lawrence University, and Syracuse University.
In Pennsylvania state aid to privately controlled educational and philanthropic insti-
tutions— universities, schools, hospitals, etc. — has been developed to an extent un-
equaled elsewhere. Among the institutions which now participate extensively in state

EDUCATION AND POLITICS 153

aid are the University of Pennsylvania in the eastern part of the state and the Uni-
versity of Pittsburgh in the western. All Pennsylvania legislation is arranged so as
to be reciprocal in the geographic sense.

The state of Maryland has long paid subsidies to privately endowed colleges.
The charter of St. John's College at Annapolis, granted in 1784, pledges the state
forever to some support of the college. A few years ago Johns Hopkins University
became, by legislative action, one of the recipients of state aid, and this has recently
been largely increased in order to provide for a school of applied science. The insti-
tutions now sharing in this bounty draw from the state treasury an annual appro-
priation of over $300,000, and include Johns Hopkins University, St. John's College,
St. Mary's Seminary, McDonough Institute, Charlotte Hall Academy, F. Knapp's
English and German Institute, Universal Progressive School, St. Francis Xavier
school. National Junior Republic, Washington College, and a number of others. The
state of Virginia, in addition to the support of its state university, also subsidizes
with smaller sums institutions under independent control.

This brief statement is not intended to give any complete list of the educational
institutions under private control which now participate in state funds, nor is this
matter mentioned now with the purpose of criticizing any of these institutions. Cer-
tainly, institutions Hke the Johns Hopkins University, the Massachusetts Institute
of Technology, and the University of Pennsylvania are among the most deserving
institutions of their states. It is, however, important that the political significance of
this movement, which has already gained such headway, should be clearly understood.
The appropriation by the state for the support of educational and philanthropic
institutions over which it has no control is a questionable public policy. It does not
alter the matter that many of these institutions are most useful and valuable agen-
cies in their states, altho it can readily be shown that the obtaining of state aid by
such institutions has already paved the way for state aid to less worthy agencies. The
real question to be faced is this: such legislation forms an opetping wedge for pater-
nalistic and socialistic measm-es, whose end no man can foresee. If these institutions,
whose friends are now in power, can get appropriations, a little later other institu-
tions of assumed philanthropic character, controlled by this or that body, will have
an equal claim to support. There is only one safe line that can be drawn consistently
with our political traditions and experience, and that is that state aid shall go only
with state control. When a commonwealth initiates the policy of state aid without
state control, it embarks upon a legislative process which may ultimately put the
power of the state at the disposal of any enterprise which claims to be philanthropic
or educational, no matter by what sect, by what party, or by what political theorists
it may be controlled. Such legislation is full of dangers, and in states like Massachu-
setts it requires no prophet's vision to perceive them.

The questions here touched upon — the politically appointed board of trustees,
the rivalry and consequent log-rolling incident to divided state institutions, the tend-

154 CURRENT EDUCATIONAL PROBLEMS

ency of tax-supported institutions to leave their legitimate field of work for some
other, the movement among endowed colleges to obtain state aid without state con-
trol— are all questions of immediate educational and political concern. They touch
not only local and temporary interests, but national tendencies of a far-reaching
nature. In the larger sense education and politics can never be separate and isolated
things; they form related parts of the intellectual, social, and economic strivings of
a people. But they will be worthy each of the other only when both rise above the
plane of personal and local self-interest.

( SHAM UNIVERSITIES

It is apparently profitable for a considerable number of persons to traffic in the func-
tions of an institution of higher education. Sometimes the pretense is due merely
to ignorant ambition, like that of the High Educational College of Glory, in Boston.
Oftener it is due to a deliberate intention to deceive, for the sake of financial profit.
Oriental University in the city of Washington is a type of the institution con-
ducted by men whose lack of knowledge displays itself in an extravagant use of lan-
guage, and who seek to draw paying students by making what appears to the authors
to be an immense display of learning. The printed circulars of this institution are a
farrago of nonsense at once ludicrous and pathetic. The institution was " Founded
1903 as Oriental Mission Seminary, in Boston, Mass. Chartered as Eastern University
in the District of Columbia, in 1904; as Oriental University in Virginia, in 1908;
and as Universal University in Arizona, in 1911." A recent unsolicited testimonial
says: "Oriental University will grow and even get in time into good financial stand-
ing,"— perhaps because "every Student, Graduate, Professor or Friend . . . are entitled
to 10 per cent commission of whatever money is received during one year through
their solicitation." The president bears the degrees of Ph.D., S.T.D., S.O.D., LL.D.,
and informs the Foundation that his salary is $900 a year, unfortunately not always
paid. He is announced in a late catalogue not only as president of the university, but
as head of every department for which a name sufficiently mouth-filling can be dis-
covered to make it sound impressive. Thus he is dean of the Orientalistic Seminary,
the head of the Indian section and of the comparative language section of this semi-
nary, and a professor in the West Asian and African section, and in the European,
American, and Oceanic sections. He is also announced as head of the department of
foreign missions, head of the department of philology, professor in the classical college,
in the department of theomonistic theology, the department of religions, the depart-
ment of philosophy, the department of pedagogy, the department of literature and
art, and the department of civil service. Another circular makes him professor in the
departments of literature, journalism, and drama; and of international law and di-
plomacy. He is not announced as a professor in the department of aeronautics, but
the university announces such a department, giving work leading to the degree of

SHAM UNIVERSITIES 156

Bachelor of Aeronautics. A "select and abbreviated list of courses actually taught
by this University" includes such subjects as History of the World, Penmanship,
Claim Collection Business, Biblical Hermeneutics, Evolutionism, Theoretical Thera-
peutics, Gaelic, Japanese, Vedantic Philosophy, and Practical Courses in Psychic
Mediumship and in Spirit Photography. Twenty -three varieties of degrees — nine
bachelors, eight masters, and six doctors — may be earned by non-residents. For the
year 1911-12 the catalogue lists 6 resident and 24 non-resident students.

Such a pretentious ignorance might be regarded as too transparent to deceive any
one in this country of public schools, did not one remember the accounts constantly
appearing in the press concerning the dupes of persons who attract chiefly by a similar
wealth of sonorous jargon. The federal government ought not to tolerate within the
limits of its exclusive jurisdiction a "imiversity'' which indulges in such false state-
ments as the following: "The standard of the Oriental University in its undergradu-
ate schools, is higher even than that proposed by the National Associations of State
Universities and of the Carnegie Foundation. Our graduate non-resident schools,
too, if properly understood and valued, are at least as high as any graduate schools
in America, whether resident or non-resident;" " a graduate completing our graduate
non-resident coiu-ses will not fail in a competition with graduate students of Berlin,
Oxford, and Harvard Universities."

A summary of the recent history of one deliberately dishonest institution may be
given as representative of the class. During the past year a considerable number of
correspondents inquired of the Foundation concerning the character of the so-called
"Carnegie University" of Wilmington, Delaware. An examination of its printed cir-
culars showed them to be thoroughly false and misleading. The resources of the insti-
tution were thus represented: "Surmounting the summit of a high hill, in the best
location in the city, the colossal buildings command a magnificent view of the en-
tire coimtry for miles around." "Those coming to Wilmington . . . can see the mighty
university long before they reach the city." "Affiliated with Carnegie University
throughout the world, there are a number of educational institutions. . . . Many of
them are owned by the University." Illustrations showed one eight and one twelve
story comer building, both bearing the name Carnegie University along the length of
each visible side. An affiliated institute was described as "at 128 West 66th Street,
one of the most prominent and busiest comers of the City of New York," and illus-
trated as occupying a five-story double building, bearing the sign. National Institute
of Mechano-Therapy^ Affiliated with Carnegie University^ across three floors. Inquiry
revealed that the former buildings were office stmctures in Wilmington. The "Uni-
versity" had at times had an office in each building, and was expelled from one of
them, but the buildings at no time displayed the name as pictured, and no one was
found in Wilmington who had ever seen a resident student. The latter buildings in
New York were residence flats, which did not bear the sign indicated, were not on
a comer, and the nearest comer was neither prominent nor particularly busy.

156 CURRENT EDUCATIONAL PROBLEMS

The announcement of courses, leading to twenty-four different degrees, proved to
be padded with descriptions conveyed bodily from the circulars of reputable institu-
tions. Thus, the coui-se leading to the degree of doctor of literature was taken from
the annual register of the University of Chicago. The entire offering of the " Grad-
uate College of Law " was taken from the year-book of the Catholic University of
America. The entire offering of the "Graduate College of Pedagogy" was taken from
the announcement of the school of pedagogy of New York University.

The educational standing of the institution was falsely represented by statements
like "We are known ... all over the globe." "Carnegie University is the oldest,
largest, best and most renowned Institution of learning of its kind in the world.
It was initiated, promoted, and financed by a few of the world's greatest philan-
thropists. . . . The University was appropriately named in honor of Carnegie, a great
Philanthropist." "Carnegie University has granted honorary degrees to Carnegie."
Mr. Carnegie, of course, received no such degrees.

The statement " Carnegie University is a member of the American Association of
Accredited Universities, Colleges and Institutes, and of the Universal Association of
Accredited Universities, Colleges and Institutes, etc., etc.," suggested falsely that the
institution had a good repute among universities. The associations mentioned are not
representative, and, so far as I know, do not exist; their names, however, resemble
that of the Association of American Universities, a representative body. The same
is true of the statements, "Bar Association of North America. To this association
are admitted graduates of our Law Department," and "International Bar Associa-
tion. To this association are admitted graduates of our Law Department." These as-
sociations are not representative, and, so far as I know, do not exist ; their names, how-
ever, resemble that of the American Bar Association, a representative body. Other
phrases like "such great educators of world-wide reputation as the late President
Harper, of the University of Chicago; President Elliot [sic], lately of Harvard Uni-
versity, and President Homan Vanderheide, of Carnegie University," were used to
imply that the president of this institution was worthy of mention in connection with
noted educators. He proved, on the contrary, to have been convicted by the Medical
Society of the county of New York of the illegal practice of medicine.

The character of the instruction offered was falsely represented by the repetition
of phrases like "the best possible facilities;" "this Correspondence Department of our
University is far superior to any other in the world;" "the exhaustive explsmations
. . . are vastly superior to the lectures delivered at any university in the world;" "the
courses are now without a peer in existence." "The services of the greatest authori-
ties in the world have been enlisted in the preparation of these peerless courses. Im-
mense amounts of money have been spent. The world over has been ransacked in pre-
paring them, and neither time, money nor labor were considered in making these the
very best courses in existence." " The information we impart is the most important
of which a human being can be possessed."

SHAM UNIVERSITIES 157

False hopes of "gigantic success," "power, independence and wealth," and the like
were held out to students, — "our students when graduates are exceedingly well quali-
fied to be preeminently successful in their respective professions . . . nearly every one
of our graduates are now receiving exceedingly lucrative incomes and have signally
distinguished themselves in their respective professions." Equally misleading were
the suggestions of the ease with which this success could be obtained : " the student
regardless of age, previous education, or location, cannot fail to acquire a perfect
practical and theoretical knowledge and understanding of the subject studied . . .
you positively can learn to be a lawyer, clergyman, or a professor or an author, etc.;"
" students are enabled to earn as they learn . . . the opportunity is also given to them
to practice their new professions long before they graduate." "Anyone, anywhere,
anytime . . . could be acquiring an education in one of these great professions . . .
carrying on advanced study, research, and investigation." "We Absolutely Guaran-
tee Success in the study of these uplifting, profitable professions."

The statements quoted are representative of many others in the announcements of
"Carnegie University" in their falsity, and their evident intention to mislead.

Inquiry revealed that under a Delaware law, not unlike that of most states, the
"Univei-sity" was legally chartered to give any instruction and confer any degrees,
in any subjects, in any part of the world. In December, however, the Journal of the
American Medical Association attacked the practices of the "University," and in
April the New York County Medical Society caused the aiTest of its New York repre-
sentative for practicing medicine without a license.

On May 4 the federal authorities arrested the president and the secretary of this
institution for using the mails in a scheme to defraud. They were taken before a United
States commissioner, who fixed the amount of their bail at $3000 each for their
appearance at a hearing to be held before him on May 22. They were imprisoned
for some days until bail was secured, and this action practically closed the institution.
When the day of the hearing arrived twenty or more witnesses were present in be-
half of the government, but the defendants failed to appear, their bonds were declared
forfeited, and they are now fugitives from justice.

The abuses represented by these two institutions are far from uncommon. Very
few of the states make any effective differentiation between educational corporations
and ordinary business coi*porations, and allow the former to be incorporated as freely
as the latter. To hold out a corporation as a bank, the incorporators must ftilfil cer-
tain conditions as to paid-up cash capital to the satisfaction of the state commissioner
of banking; to hold out a corporation as an insurance company, cash resources suffi-
cient to cover the ordinary actuarial risks must be offered for the approval of the state
commissioner of insurance. But in the large majority of the states incorporators can
hold out a corporation to the community as a college or a university without ful-
filling the simplest requirements to show that they can do what the state has given
them the right to allege that they can do.

158 CURRENT EDUCATIONAL PROBLEMS

As an illustration of this condition, the District of Columbia may be chosen. The
sole requirement for becoming a college or a university in the District of Columbia
is that any five persons sign a document stating it to be their intention so to incor-
porate. Upon being presented with such a document, the recorder of deeds of the
District is forced to record it, and the petitioners thereupon become a college or a
university corporation. The recorder has no discretion to withhold the creation of the
college or university corporation ; it is merely a ministerial act, and a refusal could be
immediately overcome by peremptory mandamus. No other official has any semblance
of authority in the matter. Therefore, any five citizens of the United States, resi-
dents anywhere, altho all of them might be imable to read and write, and might be
dependents of the community in a poorhouse, can form themselves into a university,
"under authority of an act of Congress."

It is hardly an exaggeration to say that this has actually been done. Instances
will be given of universities whose organizers and trustees, if able to read and write,
indicate by the manner in which they framed their university charters that they
have raised themselves little in knowledge or intelligence by not being absolutely
illiterate. The official reports that these universities are required to make annually
prove that they have literally no resources, and indicate with fair conclusiveness that
their organizers and trustees are perilously near the same predicament.

Thus, on April 13, 1903, the recorder of deeds was forced to record the charter
of incorporation of The International Inter-University Post-Graduate Association,
whose object legally was set forth to be "to establish and endow an American Na-
tional and International Inter-University," and "to conduct the representative affairs
of the same, as a Representative Universal, Central Institute of Pathology, Pansoci-
ology and Panhumanity."

To accomplish these ambitious resolves, the objects for which the charter was ob-
tained were further elucidated : "To inaugurate and maintain such inter-university,
in the figure and form, of an Ideal Cosmopolitan Institutional Republic of Letters,
Art, Science, and of the Humanities; for the comprehensive study of the same; for
the complete Federation and just Promotion of the Representative Best of the Finer
and Greater Affairs of Mankind, Secular and Spiritual, most insistent, in the inner and
outer sides of the modern Christian and Ethic Civilization. To expand the Catholicity,
Newness, Comprehensiveness, and Effectualness of such Inter-University, beyond and
far in advance of the Beneficence of existing institutions of Learning, Culture and
Philanthropy; therein and by, to render such Inter-University eminently available,
as the Alma Mater of Ultimates, to and for, Philotechnic, Philharmonic, Litterateur,
Connoisseur, Protagonist, and Postgraduate Genius, as well as, to and for. Young
and Rising Genius, to render such Cosmopolitan Inter-University-Imperium desir-
able, practicable, and effectual : first as the Alma Mater of Theoretic Ultimates, per-
taining to the Scientific, Systematic Orthologic and Mathematical professions; second,
as the Alma Mater of Technic Ultimates pertaining to the Esthetical, Emotional,

SHAM UNIVERSITIES 159

Musical, Theatrical, Recreational, and Connoisseur professions," and so on, for several
large official pages with which it is not necessary to burden the readers of this report.

The hopes of the incorporators that their Inter-University would be " beyond and
far in advance of the Beneficence of existing institutions of Learning" for "Post-
graduate Genius" and for "Young and Rising Grenius" have not yet been realized,
as the annual reports show. In 1906 the officers certify "that the endowment fund
of said company is to be large, of which not any donation has been made."" In Janu-
ary, 1908, it is hopefully certified " that the benevolent and philanthropic Endow-
ment required for and by said Association has not in part or in full been received;
but that prospect of receiving Donations in 1908, is good." As late, however, as 1911
the president and a majority of the board of trustees of the Inter-University were
compelled to sign a certificate stating *Hhat it is waiting an Endowment Founda-
tion ; that not any Bequests have been received, and that not any money has been
paid in." A certificate with the same sad account was filed on January 19, 1912.

Numerous other colleges and universities of the District of Columbia certify in
their annual reports property not much exceeding that described so succinctly above.
The officers of the Universitas Veterinaria Glanderini Arabii certify that the"Uni-
versitas" possesses the following property: "One microscope, about fifty books and
lectures (typewritten) on veterinary science, a department of glanderine, fully
equipped for the manufacture of veterinary remedies, and stock in hand to the value
of $50." The National College of Osteopathic Physicians and Surgeons, which pos-
sesses a charter giving it the right to confer the degrees of "professor of physiology
and pathology, professor of neurology, psychology and ophthalmology, and professor
of applied anatomy and physiology of the eye and brain," and so on thru most of
the medical sciences, certified in 1907 that its property consisted of the following:

Seal

$7.50

Printed Matter

30.00

Diplomas

140.00

Furniture and Fixtures

95.00

Total

$272.50

The Potomac University, which is established in a dwelling-house in Washing-
ton, certified in 1908 that its cash assets, including bills receivable, amounted to
$450. It also had a "library of five thousand books, office furniture, desks, chairs,
and typewriters." Washington Christian College, also located in a dwelling-house
in Washington, certified in 1911 that its property consisted of $700. Tlie Ameri-
can International University is more opulent than most of the others. In addition
to office furniture and a library of twelve thousand volumes, it has certified that it
owns real estate situated in Mexico and "valued at $31,000."

It is unnecessary to enumerate the array of institutions bearing such names as
the University College, the American Capitol University, the Federal University
of America, the University of the United States of America, the North American

160 CURRENT EDUCATIONAL PROBLEMS

University, the University of North America, Washington University, and so on,
which have been incorporated during the last ten years in the District of Columbia
with such full university powers as the following, which is taken from the charter
of the Univei-sity of the United States of America, incorporated in 1905 : "The
particular branches of literature and science proposed to be taught either by corre-
spondence or personal attendance are as follows : Liberal Arts and Applied Science,
Languages, Architecture, Drawing, Sculpture, History, Music, Graphics, Civil En-
gineering, Electrical Engineering, Mechanical Engineering, Mining Engineering,
Chemical Engineering, Botany, Zoology, Anatomy, Meteorology, Astro-Physics,
Mineralogy, Geology, Physics, Philosophy, Philology, Assaying, Theology, Law,
Medicine, Surgery, Dentistry, Chemistry, Pharmacy, Osteopathy, Osteotherapy,
Scientific Medical Massage, Chiropractice, Electro Therapeutics, Chiropody, Psy-
chology, Economics, Matliematics, Bookkeeping, Penmanship, Banking, Correspond-
ence, Stenography, Telegraphy."

A similar latitude of university powers is expressed in a different form in the
chai-ter of Monroe College, also incorporated in 1905, by which it is given the right
to confer **such academical or honorary degrees as are usually conferred by similar
institutions, more particularly the following degrees, to wit: A.B., B.A., A.M., M.A.,
P.B., Ph.B., Ph.G., Ph.D., V.S., M.R.C.V.S., F.H.A.S., M.D.C., M.D.V., D.V.S.,
B.Z., B.B., KM., B.S., C.E., E.E., M.E., M.M.E., M.S., S.M., S.B., S.D., S.T.B.,
M.F., M.B., M.D., B.C.L., J.C.D., D.C.L., J.D., J.U.D., LL.B., LL.M., LL.D.,
L.H.L., Litt.D., B. es L., B.Cc, B.C.D., Pd.B., A.C.C.S.M., L.C.C.S.M., B.M.,
M.M., Mus.D., D.D.S., S.T.P., B.D., S.T.D., D.D., D.C., D.M., M.E., D.E., D.P.,
D. Psychol., M.S., H.D., Sc.D., and A.E."

Nor do the universities incorporated in the District of Columbia confine them-
selves merely to educational work, however broad. Washington University sets forth
in its charter that it is incorporated for the following objects:

"1. To aid in the advancement of education.

"2. To succor innocence and punish guilt.

"3. To defend the helpless and oppressed.

"4. To maintain the rights of men and women.

"5. To further the advancement of the sciences and arts and American law, juris-
prudence, and diplomacy.

"6. To establish justice to ourselves and our posterity.

*'7. To solve the great legal, constitutional, and diplomatic questions which are
constantly being evolved in the ever changing affairs of life."

Odessa University, whose head office is at Odessa in the state of Washington,
with a branch at Seattle, and whose articles of incorporation in the District of Co-
lumbia are sworn to before a notary public in the state of Washington, is incorpo-
rated for the following objects:

"First. Acquire, build, make, use, and dispose of real estate and personal prop-

SHAM UNIVERSITIES 161

erty of every description, name and nature, particularly buildings and other equip-
ment suitable for teaching, instructing, lecturing, printing, taking care of the sick
and unfortunate, as in a University, Lecture Room, Printery, Library, Hotel, Hos-
pital, and Museum, and employing professors, teachers, lecturers, experts, nurses,
and others, to give instruction and assistance, free or for pay.

"Second. To ask for donations, aid, and assistance, and to receive anything, cash or
its equivalent for a trust, or by will, and to act as an executor or administrator, or
to establish a fund for an income, or for any particular object."

This would indicate that the incorporators of Odessa University were thinking
more of the business that might be transacted under the aspect of an educational
institution than of education itself. It has a capital stock of $500,000 divided into
shares of $1 each, which is a usual provision of many of these institutions, altho gen-
erally the capital stock is fixed at some figure in the millions. That the incorpora-
tors of these institutions have a shrewd business instinct may be shown by the provi-
sion in the charter of one of them whereby one of the incorporators, who is declared
to be the founder, "is herein and by, constituted president of the same, during the
term of natural life, with power to nominate a successor." This is a centralization of
university government heretofore unknown.

In the pioneer days of the west individuals financially iri'esponsible were allowed
to incorporate banks and issue notes to those who would take them, the principle
of caveat emptor being applied to the community. Those days are past; the state
considers it to be its duty not to allow its prerogative of incorporation to be used for
banking purposes without exacting certain guarantees designed to protect the com-
munity from loss of property. There was a time, not very remote, when most states
were glad to have any one undertake any educational enterprise, and laws were framed
so as to facilitate all such efforts. Now, however, that this pioneering stage is over,
and we have enough examples of worthy and excellent institutions to demonstrate the
real meaning of higher education, it is time for the laws to recognize present condi-
tions, and to be as solicitous to prevent the people from being robbed of their time
and money by irresponsible colleges as of their money alone by irresponsible banks.
The Supreme Court of the United States in the Berea College Case intimated that
because a citizen was engaged in teaching was no reason why he was more subject to
the police power of the state than if he were engaged in any other occupation; with
such freedom there is no desire to interfere. But the Supreme Court in the Berea
College Case and in hundreds of other cases has illustrated the fundamental princi-
ple that a corporation is the absolute ci-eature of the state, to create which is a pre-
rogative of the state alone. It is not consonant with the traditions or ideals of our
race to erect education into a monopoly of the state, as it is in France, which would
effect too minute an inspection and control of educational corporations. But it is cer-
tainly mere justice to ask that the state shall not allow its unique power of creating
corporations to be used in sending forth colleges and universities into the world with-

162 CURRENT EDUCATIONAL PROBLEMS

out the assurance that they are neither fraudulent, nor so inadequately equipped as
necessarily to be deceptive.

Citizens of the District of Columbia, disinterestedly solicitous concerning educa-
tional matters there, are preparing for introduction in Congress a bill which, while
so simple in its requirements as not to bar any bona fide institution, will prevent
effectually such instances of fraud or ignorance as have been exhibited. The two salient
provisions of this proposal are : first, that any institution incorporated with capital
stock must comply with the provisions of the law of the District relating to business
corporations, and cannot by taking the title of college or university incorporate as
an institution of learning. The second provision is that no institution bearing the
title of college or university, or having the right to confer degrees, shall be incor-
porated until the commissioners of the District of Columbia are satisfied that it pos-
sesses, in the case of a would-be college, property of the actual value of $20,000, or
in the case of a university, property to the actual value of $100,000. These sums are
so small that no bona fide institution will fail to satisfy them. The collegiate insti-
tutions of the Roman Catholic Church are almost universally conducted by Orders,
whose members receive nothing beyond their maintenance, and can hence be con-
ducted upon a much smaller expenditure than is required where the faculty receive
salaries, but even these colleges would always start with property worth considerably
more than $20,000.

The proposed bill, in order to be perfectly just, should declare that it does not affect
college and university corporations previously incorporated, whether by the general
law of the District or by a special act of Congress. This would leave untouched the
charters of such institutions as the Georgetown University and the George Wash-
ington University, incorporated under special acts and engaged sincerely in provid-
ing educational opportunities for the resident population of Washington. It would
also leave untouched the charters, obtained under the general law, of the Catholic
University of America, a standard institution of higher education, and the Boone
University of China which, under the auspices of the Episcopal Church, is engaged
in the work of spreading Western learning in the East. As all legislation for the
District of Columbia must be enacted by the Congress of the United States, it is
to be hoped that citizens in all the states, who are interested for the sake of honest
and sound education in ending this condition of affairs in the District, alike annoy-
ing to the residents of the District and to the citizens of the states, will acquaint
their senators and members of Congress with their desire that this proposed legis-
lation, which can interfere only with unworthy institutions, may be speedily enacted
into law.

In only three states of the Union — New York, New Jersey, and Pennsylvania —
is there any legislation, so far as is known, safeguarding the granting of collegiate
degrees. In most of the other forty -five states, if not in all of them, the legal situa-
tion is very similar to that prevailing in the District of Columbia, It is surely the

' SHAM UNIVERSITIES 163

duty of good citizens, each in his own state, to labor for the enactment of some
simple legislation like that now urged on Congress for the District of Columbia, to
prevent the exploitation of innocent people by fraudulent and ignorant associations
of promoters, working behind the corporate title of a college or university.

Hen&y S. Pritchett.

October »5,^9\9.

PART in
DE MORTUIS

DE MORTUIS

HENRY TAYLOR BOVEY

HENRY Taylor Bovey was bom on March 7, 1852, in Devonshire, England, and
was educated at the University of Cambridge, obtaining, upon his graduation,
a high place in the mathematical tripos. Shortly afterward he was elected a fellow
of Queen's College. He joined the staff of the Mersey Dock and Harbor Works, and
was appointed an assistant engineer. In 1877 he became professor of civil engineering
and applied mechanics in McGill University, the following year being appointed dean
of the faculty of applied science. These offices he held until 1908, when he returned
to England to accept the position of rector of the Imperial College of Science and
Technology. Ill health compelled him to resign in 1910.

Professor Bovey was one of the founders of the Canadian Society of Civil Engineers,
and its president in 1900. He was a member of the Institution of Civil Engineers
of England and of the Liverpool Society of Civil Engineers, a fellow of the Royal
Society of Canada, and an honorary member of the National Electric Light Associ-
ation of the United States. The University of Bishop's College conferred upon him
the degree of doctor of civil law, and McGill University and Queen's University the
degree of doctor of laws. He was made a fellow of the Royal Society in 1902, and an
honorary fellow of Queen's College, Cambridge, in 1906.

Upon the nomination of the governors and fellows of McGill University, the Car-
negie Foundation, on April 9, 1908, granted Professor Bovey a retiring allowance,
which became operative upon his retirement from active educational work in 1910.
He died on February 2, 1912.

LEWIS ORSMOND BRASTOW

Ewis Orsmond Brastow was bom on March 23, 1834, in Brewer, Maine. He was

graduated from Bowdoin College in 1857, and from the Bangor Theological
Seminary in 1860, and was ordained into the Congregational ministry in 1861. From
1861 to 1873 he was pastor of the South Congregational Church in St. Johnsbury,
Vermont, serving in 1862 and 1863 as chaplain of the Twelfth Vermont Infantry.
From 1873 to 1884 he was pastor of the First Congregational Church in Burlington,
Vermont. He was elected a member of the constitutional convention of Vermont in
1870. In 1885 he accepted the chair of practical theology in Yale University, and served
for a time as dean of the divinity school. He received the honorary degree of mas-
ter of arts from Yale University in 1885, and the degree of doctor of divinity from
Bowdoin College in 1880. His publications were Representative Modem Preachers
(1904) and The Modem PxdpU (1906).

168 . DE MORTUIS

Upon the nomination of the board of fellows of Yale University, the Carnegie
Foundation, on July 9, 1907, granted Professor Brastow a retiring allowance. He
died in New Haven on August 10, 1912.

CHARLES H. CHANDLER

CHAELEs H. Chandler was bom on October 25, 1840, in New Ipswich, New Hamp-
shire, and was educated at Dartmouth College, from which he was graduated
in 1868. From 1857 he had been teaching in district schools and in the academy at
New Ipswich, and upon his graduation he became principal for one year of Meri-
den Academy, and then principal for two years of St. Johnsbury Academy, Vermont.
In 1871 he was appointed a professor in Antioch College, and remained there for
ten years. In 1881 he accepted the chair of chemistry and physics in Ripon College,
which he resigned in 1883 for the chair of mathematics. Professor Chandler repeat-
edly held local offices in Ripon, and in New Ipswich, where he lived after his retire-
ment.

Upon the nomination of the board of trustees of Ripon College, the Carnegie
Foundation, on June 7, 1906, granted to Professor Chandler a retiring allowance.
He died at Leominster, Massachusetts, on March 29, 1912.

THOMAS N. CHASE

THOMAS N. Chase was bom on July 18, 1838, in West Newbury, Massachusetts,
and was educated at Dartmouth College, from which he was graduated in the
class of 1862. For two years following his graduation he was principal of Royalton
Academy, Vermont, and after several years spent in business pursuits, he began in
1869 his connection with Atlanta University. From 1869 to 1888 he was professor
of Greek, and from 1895 to 1906 professor of Latin, serving also at times as dean
and acting president, and being for twenty-eight years a member of the board of
trustees. From 1891 to 1893 he was principal of the Burrell School at Selma, Ala-
bama, and he also served the American Missionary Association in making a tour of
inspection of Indian agencies in the Northwest, and of the Mendi Mission on the
west coast of Africa.

In recognition of his long service in the education of the negro race, the Carnegie
Foundation, on July 26, 1906, granted Professor Chase a retiring allowance. He died
at Bellows Falls, Vermont, on April 23, 1912.

DE MORTUIS 169

SARAH A. FRIERSON

SARAH A. Frierson was bom in September, 1837, at Athens, Georgia. She was
educated at the Grove School, and in 1887 she was appointed the first librarian
of the University of Georgia, which position she held until 1904. In that year, when
the University of Georgia received a new library building and equipment thru pri-
vate beneficence, Miss Frierson preferred to accept the post of assistant librarian,
which she occupied until her retirement in 1909.

On account of Miss Frierson's long devotion to the upbuilding of an important
part of the University of Georgia, the Carnegie Foundation, on September 30, 1909,
granted her a retiring allowance. She died in Athens, Georgia, on March 10, 1912.

NORMAN ROBERT GILLIS

NORMAN Robert Gillis was bom on July 25, 1883, at Brookfield, Prince Edward
Island. He was educated at McGill University, from which he was graduated
with the degree of bachelor of arts in 1908; in 1909 he received the degree of master
of science. Upon his graduation he was appointed demonstrator in physics in McGill
University, and in 1909 he was made lecturer in physics.

Mr. Gillis having been ordered to take up his residence in a health resort on ac-
count of disability, the Carnegie Foundation, upon the recommendation of the gov-
ernors and fellows of McGill University, on October 13, 1910, voted him a temporary
allowance. He died at St. Agathe des Monts, Quebec, on April 2, 1912.

THOMAS HUME

THOMAS Hume was bom on October 21, 1836, at Portsmouth, Virginia, and was
educated at the Virginia Collegiate Institute in Portsmouth and at Richmond
College, from which he was graduated in 1845. After three years of graduate work
in the University of Virginia, he became professor of French and English literature
in Chesapeake Female College, and also entered upon the work of a Baptist minister.
In 1861 he entered the Confederate army, serving first as chaplain of the Third Vir-
ginia regiment, and later as chaplain of Petersburg during the siege.

Upon the close of the war he became president of Roanoke CoUege, Danville, Vir-
ginia, serving from 1868 to 1873, part of this time being also pastor of the local
Baptist congregation. From 1874 until 1885 he was pastor of the First Baptist Church
in Norfolk, Virginia. From 1880, in addition, he acted as professor of English and
Latin in Norfolk College. In 1885 he was appointed professor of the English lan-
guage and literature in theUniversity of North Carolina,* in 1901 his chair was changed

170 DE MORTUIS

to that of English literaturc exclusively. Professor Hume wrote numerous books
on literary subjects, and received the degree of doctor of divinity from Richmond
College, and the degree of doctor of laws from Wake Forest College and from the
University of North Carolina.

The Carnegie Foundation, on account of Professor Hume's pioneer work in teach-
ing English literatui'e in the South, granted him a retiring allowance on December
10, 1906. He died at Chapel Hill, North Carolina, on July 15, 1912.

OTIS COE JOHNSON

OTIS CoE Johnson was born on September 11, 1839, at Kishwaukee, Illinois, and
was educated at Oberlin College, from which he was graduated with the class
of 1868. He graduated from the school of pharmacy of the University of Michigan
with the degree of pharmaceutical chemist in 1871, and in 1873 was appointed as-
sistant in chemistry in the University of Michigan with the duty of giving lectures
to classes. In 1880 he was appointed assistant professor of applied chemistry, and in
1889 professor of applied chemistry; in 1907 his title was changed to professor of
qualitative analysis. Professor Johnson was a fellow of the English Chemical Society,
and of the American Association for the Advancement of Science, and a member of
the American Chemical Society, and of the Deutsche Chemische Gesellschaft. He
was one of the authors of Prescott and Johnson's Qualitative Chemical Analysis. He
received the degree of master of arts from Oberlin College in 1877.

Upon the nomination of the board of regents of the University of Michigan, the
Carnegie Foundation, on October 19, 1911, granted Professor Johnson a retiring
allowance. He died in Ann Arbor on June 6, 1912.

GEORGE WILLIAM JONES

GEORGE William Jones was bom on October 14, 1837, at East Corinth, Maine,
and was graduated from Yale University in the class of 1862, receiving the
degree of master of arts three years later. He was a teacher of mathematics in Rus-
sell's Military School at New Haven from 1859 to 1862, and at the Delaware Liter-
ary Institute, Franklin, New York, from 1862 to 1868. From 1868 to 1874 he was
professor of mathematics in the Iowa State College of Agriculture and Mechanic
Arts. In 1877 he was called to Cornell University as assistant professor of mathe-
matics, in 1893 he became associate professor, and in 1895 professor. Professor Jones
published several standard text-books on algebra, geometry, and trigonometry, and
also works on logarithms.

Upon the nomination of the board of trustees of Cornell University, the Carnegie

DE MORTUIS 171

Foundation, on March 28, 1907, granted a retiring allowance to Professor Jones.
He died in Ithaca on October 29, 1911.

CHARLES LOUIS LOOS

CHARLES Louis Loos was bom on December 23, 1823, at Worth, in the French
department of Bas-Rhin (now the German Reichsland of Alsace-Lorraine). He
was brought to America at an eariy age, and was educated at Bethany College, from
which he was graduated in 1846. Immediately upon his graduation he became pro-
fessor of ancient languages in the college, and held this position until 1849, when,
having been ordained a minister of the Church of the Disciples of Christ, he devoted
himself to pastoral duties. In 1857 he reentered educational work as president and
professor of ancient languages at Eureka College, and in the following year he re-
turned to Bethany College as professor of ancient and modem languages, where he
remained until 1880. From 1880 until 1897 he was president and professor of Greek
in Transylvania University, when he retired from the presidency on account of age,
but retained the chair of Greek. This chair he held until 1909, completing fifty-five
years in active labor as an educator.

In recognition of the long service of Professor Loos, the Carnegie Foundation, on
June 4, 1909, granted him a retiring allowance. He died in Lexington, Kentucky,
on Febmary 27, 1912.

JAMES THOMAS MURFEE

JAMES Thomas Murfee was bom on September 13, 1833, at Murfee's Depot,
Southampton County, Virginia, and was graduated from the Virginia Military
Institute as first honor man in 1853. In 1854-55 he was professor of natural science
in Madison College, Uniontown, Pennsylvania; in 1856-58 professor of natural sci-
ence in Lynchburg College, Virginia; and in 1860-62 professor of mathematics in
the University of Alabama. In 1862 he was made commandant of cadets at the Uni-
versity of Alabama, with the rank of colonel in the army of the Confederate States,
acting for a time as lieutenant-colonel of the Forty-first Alabama Infantry, and in
1865 commanding his cadets in battle with United States cavalry in an attempt to
save the university from destmction. From 1867 to 1869 he was employed by the
board of trastees as the architect and superintendent for rebuilding the University
of Alabama, and in 1871 became president of Howard College, Marion, Alabama.
Colonel Murfee held this position until 1887, when he founded the Marion Military
Institute, of which he was superintendent until his retirement. In 1874 Furman Uni-
versity conferred upon him the degree of doctor of laws, and in 1892 he was appointed

172 DE MORTUIS

by President Benjamin Harrison a member of the board of visitors of the United
States Military Academy, serving until 1896.

In recognition of Colonel Murfee's long and valuable service to education in
Alabama, the Carnegie Foundation, on September 28, 1906, granted him a retiring
allowance. He died at Miami, Florida, on April 23, 1912.

ALFRED OWEN

ALFRED Owen was bom on July 20, 1829, in China, Maine, and was graduated
L. from Colby University in the class of 1853. After being graduated from the
Newton Theological Seminary in 1858, he was ordained into the Baptist ministry,
and served as a pastor in Lynn, Massachusetts, in Detroit, and in Chicago, and
on the Christian Commission during the civil war. From 1879 to 1886 he was presi-
dent of Denison University, and from 1886 to 1906 he was professor of philosophy
in Roger Williams University, Nashville, Tennessee, serving from 1886 to 1894 also
as president of that institution.

On account of Professor Owen''s long service to negro education, the Carnegie
Foundation, on June 21, 1906, granted him a retiring allowance. He died in Nash-
ville on July 21, 1912.

JAMES DAVIS PORTER

JAMES Davis Portee was born on December 7, 1828, at Paris, Tennessee, and was
educated at the University of Nashville, from which he was graduated in 1846.
After taking a law course in Cumberland University, he was admitted to the bar in
1850 and began to practice in Paris. In 1859 he was elected a member of the House
of Representatives of Tennessee, and during the civil war he served as adjutant-
general on the staff of Major-General B. Frank Cheatham of the army of the Con-
federate States. In 1870 General Porter was a member of the constitutional con-
vention that framed the present constitution of Tennessee, and in the same year he
became judge of the twelfth judicial circuit of the state. He resigned this office in
1874, having been elected Governor of Tennessee. He was reelected governor in
1876. From 1879 to 1883 he was president of the Nashville and Chattanooga Rail-
road Company, and in 1885 President Cleveland appointed him Assistant Secretary
of State of the United States, in which office he served throughout the administra-
tion. In 1893 President Cleveland appointed him Envoy Extraordinary and Min-
ister Plenipotentiary of the United States to the Republic of Chile, and upon his
return from Santiago in 1894, offered him the circuit judgeship of the United States
for the circuit which includes Tennessee, but on account of his long absence from

DE MORTUIS 173

legal practice, Governor Porter declined. Governor Porter wrote Tlie Military His-
tory of Tennessee. He was president of the Tennessee Historical Society, and in
1880 and in 1892 he was chairman of the Tennessee delegation to the Democratic
National Convention.

In 1883 Governor Porter was elected a trustee of the Peabody Education Fund,
and served as such for twenty-five years. In 1901 he was elected president of the
Peabody Normal College, and also, in the same year, chancellor of the University of
Nashville, which offices he held until 1910.

On account of Governor Porter's valuable services to the education of teachers in
the South, the Carnegie Foundation, on November 15, 1909, granted him a retiring
allowance. He died in Paris, Tennessee, on May 18, 1912.

EUGENE LAMB RICHARDS

EUGENE Lamb Richards was bom on December 27, 1838, in Brooklyn, New York.
He was graduated from Yale University with the class of 1860, receiving in
1887 the degree of master of arts. In 1868 he was appointed tutor in mathematics,
in 1871 assistant professor, and in 1891 professor; in 1892 he became the first di-
rector of the Yale gymnasium, and served in this capacity also for ten years. He
published Plane and Spherical Trigonometry with Applications (1879); Elementary
Navigation and Nautical Astronomy (1892); and numerous papers on geometry and
athletics.

Upon the nomination of the board of fellows of Yale University, the Carnegie
Foundation, on June 7, 1906, granted Professor Richards a retiring allowance. He
died in Beach Haven, New Jersey, on August 5, 1912.

HENRY NEVIUS VAN DYKE

HENRY Nevius Van Dyke was bom on March 22, 1853, in Kingston, New Jer-
sey, and was graduated from Princeton University in 1872. He entered the
Princeton Theological Seminary and remained one year, but did not continue his
studies, having been appointed registrar of Princeton University in 1873. This office
he held until 1910. In 1876-77 he was also tutor in mathematics in the university,
and from 1879 to 1883 instructor in classics and mathematics. In 1876 he received
from the university the degree of master of arts.

Mr. Van Dyke's health having become seriously impaired, the Carnegie Foundation,
upon the nomination of the board of trustees of Princeton University, on October

13. 1910, granted him a retiring allowance. He died in New York City on December

23. 1911.

174 DE MORTUIS

JOHN BURKITT WEBB

JOHN BuRKnT Webb was born on November 22, 1841, in Philadelphia, and was
educated at the Philadelphia High School, the Franklin Institute Drawing School,
and the University of Michigan, from which he was graduated with the degree of
civil engineer in 1871. He also studied at the Universities of Paris, Berlin, Heidel-
berg, and Gottingen during the years from 1878 to 1881. Between his early educa-
tion and his matriculation at the University of Michigan he engaged in business,
from 1863 to 1868 being a member of the firm of Smith and Webb, manufacturers
of machine tools, Burlington, New Jersey.

At his graduation he became professor of civil engineering in the University of Illi-
nois, which position he held until 1879. In 1881 he was appointed professor of applied
mathematics in Cornell University, and in 1885 professor of mathematics and me-
chanics at the Stevens Institute of Technology. Professor Webb was a judge at the
International Exposition of 1884, and a juror at the Louisiana Purchase Exposition of
1904. He was a fellow of the American Association for the Advancement of Science,
and a member of the American Society of Civil Engineers, of the American Mathe-
matical Society, and of the Circolo Matematico di Palermo. He wrote numerous
scientific papers and invented a number of pieces of scientific apparatus.

Upon the nomination of the board of trustees of the Stevens Institute of Tech-
nology, the Carnegie Foundation, on March 28, 1907, granted Professor Webb a
retiring allowance. He died in Montclair, New Jersey, on Febmary 17, 1912.

/?jr

REPORT OF THE TREASURER

. . IV-

REPORT OF THE TREASURER

To the Chairman and Trustees of the Carnegie Foundation for the Advancement of
Teaching:

In accordance with the provisions of Article IX of the By-laws, the chairman of the
board of trustees designated Messrs. Patterson, Teele, and Dennis, certified public
accountants, to audit the accounts of the Foundation for the last fiscal year. On
October 4 the books of the treasurer were accordingly turned over to this firm,
whose report follows.

Oct(^er U^ 1912.

We hereby certify that we have audited the books and accounts of the Carnegie
Foundation for the Advancement of Teaching for the year ending September 30,
1912, and that the accompanying Income and Expenditure Account and Balance
Sheet are in accordance with the same.

The income from the investments has been duly accounted for and the expendi-
tures have been duly authorized and vouched.

The securities representing the investments were produced to us, and the cash
in bank and in hand has been verified.

{Signed) Patterson, Teele, and Dennis,
Certified Public Accountant*.

INCOME AND EXPENDITURE
FOR THE YEAR ENDING SEPTEMBER 30, 1912

Income

From Securities in the Endowment Fund $633,333.33

From other Investments 39,080.00

Accumulation of Bond Discount — Net . 2,515.33

Interest on Bank Balances 1,557.90

Total Income for theyear $676,486.56

Expenditure

Retiring Allowances:

To Professors, Officers, and Widows in Ac-

cepted Institutions

$441,984.64

To Professors, Officers, and Widows not in

Accepted Institutions

128,438.39

$570,423.03

Administration :

Salaries

$25,386.66

Traveling Expenses of Trustees, Officers,

and Assistants

2,990.47

Rent

4,899.96

Postage

705.94

Stationery and Office Supplies

880.14

Professional Fees

601.25

Depreciation of Furniture and Fixtures, 10%

600.43

•

Telephone and Telegraph

204.40

Miscellaneous

680.06

$36,949.31

Publication :

Bulletin Number Six:

Printing $15,164.21

Labor, Postage, Mailing, etc. 2,556.23

$17,720.44

Sixth Annual Report:

Printing $3,245.63

Labor, Postage, Mailing, etc. 666.91

3,912.54

Printing Minutes, and Reprints

144.40

Salary of Assistant

2,000.00

$23,777.38

Cairied forward

$631,149.72 $676,486.56

REPORT OF THE TREASURER 179

Amount brought forward $631,149.72 $676,486.56

Study op Professional Education:

Salaries $1,420.53
Traveling Expenses 764.40

Rent 300.00

Miscellaneous Expenses 29.99 2,514.92

Study of Agricultural Education

Traveling Expenses 832.25

Total Expenditure for the year ending September 30, 1912 634,496.89

Accumulation of Surplus Income for the

Year ending September 30, 1912 $41,989.67

BALANCE SHEET
SEPTEMBER 30, 1912

Assets

Investments. Exhibit 1 $13,926,202.55

Interest accrued on Investments to September 30, 1912

Exhibit 1 223,538.35

Cash in Bank and on Hand 13,233.52

Office Furniture and Fixtures $6,004.31

Less Reserve for Depreciation 3,142.28 2,862.03

Total Assets $14,165,836.45

Fund and Accumulations

Endowment Fund $13,000,000.00

Income and Expenditure Account:

Accumulation to September 30, 1911 $1,123,846.78

Accumulation for the year ending

September 30, 1912 41,989-67

Total Accumulation to September 30,

1912 $1,165,836.45

Total Fund and Accumulations $14,165,836.45

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182 REPORT OF THE TREASURER

The treasurer has submitted from time to time to the executive committee state-
ments of receipts and expenditures, which were printed and sent to all trustees.
These statements, together with the report of the auditing firm just quoted, give
a complete account of the financial operations of the Foundation for the period
covered by this report.

Robert A. Franks, Treasurer.

I tz

INDEX

/?ir

INDEX

Accepted institutions of Carnegie Foundation.

Allowances granted, 8.

Annuity data, 10-15, 87-89, 92.

History of Ust, 80.

List of, 6, 7.

No additions, 5.

Pensions granted, 9.

Rules for allowances and pensions in, 4, 22.

Total paid to, in year, 3.
Actuarial study for Carnegie Foundation, 5.
Adelphi College, 87.
Administrative service under rules, 4.

Defined, 5.
Admission to advanced standing, 109-122.

Advanced high school work, 116, 117.

"Dropped" students, 118, 119.

Experience in teaching, 116.

Normal school work accepted, 114, 115.

Professional work accepted, 113, 114.
Advanced standing, admission to, 109-122 {see

above).
Advertising in education, 133-143.
Age.

Average on retirement, 14.

Table for teachers in accepted institutions,
98.
Agricultural education, 97, 98, 104.
Alabama, University of, 87, 97, 171.
Albaky Medical School, 124, 125, 127.
Alfred University, 87.

State aid, 152.
Allegheny College, 87.
Alumni associations, 137.
American Bar Association, 156.
American(Barne8)MedicalCollege, St. Louis,

123.
American Book Company, 145.
American Express Company, pensions of, 47.
American Medical Association, 126, 127, 129.
American Sugar Refining Company, pensions

of, 47.
American Telephone and Telegraph Com-
pany, pensions of, 45-47.
Amherst College, 6.

Allowances granted, 8.

Cost of allowance system, 88.

Entrance requirements, 104.
Antioch College, 87, 168.
Appelmann, Anton, Prussian exchange teacher,

16.
AiiMOUR AND Company, pensions of, 47, 48.

ASSOCIAITON OF AMERICAN MeDICAL CoLLEGES,

128, 129.
Association of American Universities, 109,
120, 139, 156.

Association of the Colleges and Preparatory
Schools of the Soui'hern States, 102.

Association of State Universities, 139.

Association of Women Graduate Students,
139.

Atchison, Topeka and Santa Fe Railroad,
pensions of, 44, 64.

Atlanta technological high school, 16.

Atlanta University, 87, 168.
Pensions granted, 9.

Atlantic Coast Line Railroad, pensions of, 44.

Baliol C0U.EOE, Oxford, 26.

Baltimore and Ohio Railroad, pensions of, 44.

Bangor Theological Seminary, 167.

Bar, admission to the, 102.

Bates, Edward, Attorney-General, 75.

Bates College, 6.

Cost of allowance system, 89.
Beaver College, 87.
Beeson, Marvin F., Prussian exchange teacher,

16.
Bell, Hill M. , President, Drake University, iii.
Beloit College, 6.

Cost of allowance system, 88.

Entrance requirements, 105.
Bennett Medical College, Chicago, 123.
Berea College Case, 161.
Berlin, University of, 155, 174.
Bethany College, 87, 171.
" Big Four " Railroad, pensions of, 64.
Bishop Spencer College, 87.
Boston College of Physicians and Surgeons,

123.
Boston Elevated Railway Company, pensions

of, 44.
Boston Headmasters' Association, 108.
Boston high schools.

Prussian exchange teacher, 16, 17.
Boston teachers* pension fund, 41, 42.
Bowditch, Mrs. Henry P., pension granted, 9.
Bowdoin College, 5, 167.

Entrance requirements, 104.

Medical school, 124, 125, 127.
Bovey, Henry T., deceased, 167.
Bovey, Mrs. Henry T., pension granted, 9.
Boyd, Daniel R., President, University of New

Mexico, 145.
Brastow, Lewis, 6.

Deceased, 167.
Brenau College, 140.
Briggs, Edward M., Prussian exchange teacher,

16.
Brooklyn Rapid Transit Company, pensions
of, 44.

186

INDEX

Brooks, Stratton D., President, State University

of Oklahoma, 145.
Brown, Herbert D., actuary, 75.
Brown University, 87.

Advanced standing in, 112, 113, 116, 117,

119.
Pension system, 24.
Bryan, Paul E., Prussian exchange teacher, 16.
Bryan, William L., President, Indiana Univer-
sity, iii.
Bryn Mawr College, 139,
BucHTEL College, 87.

Buffalo, Rochester and Pittsbuhgh Rail-
road, pensions of, 44, 64.
Buffalo, University of, medical school, 127.
Bulletins of the Carnegie Foundation, 20-22, 97,

98.
Bureau of Education, United States, 109.
Burgess, John W., retired, 8.
Burrill, Thomas J., retired, 9.
Butler, Nicholas Murray, President, Columbia
University, iii.
Temporary chairman, executive commit-
tee, 5.
Butler College, 87.
By-laws of Carnegie Foundation, 3.

California, proposed state teachers' pension

system, 33, 34.
California, University of, 6.

Advanced standing in, 112, 114, 115, 118.

Cost of allowance system, 89.

Entrance requirements, 105.

Former pension system, 24.

Medical school, 123.
Cambridge, University of, 167.
Canadian Pacific Railroad, pensions of, 44,

64.
Carleton College, 6.

Cost of allowance system, 88.
Carnegie, Andrew.

Aided pension fund of United States Steel
Corporation, 47.

Increases endowment of Carnegie Founda-
tion, 3.
Carnegie, T. Morrison, Trustee, Carnegie Foun-
dation, iii.
Carnegie Foundation for the Advancement
of Teaching, The.

Accepted institutions, 6, 7.

By-laws, 3.

Deaths of beneficiaries, 12, 13.

Educational function, 94-98.

Endowment, 3.

Executive committee, iii, 4, 5.

Expenses, 3, 14, 15, 87.

Fiscal year, 3, 10.

Geographical distribution, 13.

Income, 3.

Officers, iii.

Pension system, 78-94.

Pensions, 3, 9, 12, 14, 15, 87.

Publications, 19-22.

Retiring allowances, 3, 8-15, 87-89, 92.

Rules, 4, 5, 22, 69, 78, 82, 83.

Trustees, iii, 4.
Carnegie Institution of Washington, 90.
" Carnegie University," Wilmington, Dela-
ware, 155-157.
Case School of Applied Science, 6.
Catalogues, College, 97, 135.
Catholic University of America, 135, 163.
Central College (Missouri), 140.
Central University of Kentucky, 6.

Abolished clinical medical work, 127.

Cost of allowance system, 89.
Chandler, Charles H., deceased, 168.
Chandler, Francis W., retired, 8.
Chandler professor, Dartmouth College, 8.
Chase, Thomas N., deceased, 168.
Chase, Mrs. Thomas N., pension granted, 9.
Chattanooga University, abolished clinical

medical work, 127.
Chicago.

Public school employees' pension fund, 38.

Teachers' pension fund, 37, 38.
Chicago and Northwestern Railroad System,

pensions of, 44. «
Chicago, St. Paul, Minneapolis and Omaha

Railroad, pensions of, 44.
Chicago, University of, 17.

Advanced standing in. 111, 114,115, 117-
119.

Financial report, 132.

Medical school, 123.

Pension system, 24, 25.
Cincinnati, University of, 6.

Cost of allowance system, 89.
City pension systems, 39-44.
Civil war pensions. United States, 75-77.
Clark University, 6, 17.

Cost of allowance system, 88.

Entrance requirements, 105.
Clarkson Memorial School of Technology,
Thomas S., 6.

Cost of allowance system, 88.
Clemson Agricultural College, 87.
Cleveland, Grover, President of the United
States.

Vetoed pension legislation, 75-77.
CoE College, 6.

Cost of allowance system, 89.
Coghlan, T. A., actuary, 50, 51.
Colby College, 172.

College Entrance Examination Board, 101,
106.

INDEX

187

College pension system, a, 65-70.
Colorado, normal school history in, 149.
Colorado, University of, 87.
Colorado College, 6.

Cost of allowance system, 88.

Entrance requirements, 105.
CoLUMHiA University, 5, 6, 17.

Advanced standing in, 110, 113, 114, 116,
117.

Allowances granted, 8.

Cost of allowance system, 88.

Entrance requirements, 104.

Former pension system, 24.

Medical school, 123.

Pension system, Teachers College, 25.
Conditioned students, 103.
Congress of the United States.

Bill for District of Columbia teachers' pen-
sions, 34, 35.

Military pensions, 75-77.
Conjoint Board of Royal Colleges of Physi-
cians AND Surgeons.

Visit of secretary to America, 127, 128.
Contributory pensions, 59^3, 72.
Cooke, Morris Llewellyn, 22.
Cooper Union, New York City, 87.
Cornell College, Mt. Vernon, Iowa, 87.
Cornell University, 4, 6, 170, 174.

Advanced standing in. 111, 114, 116-118.

Allowances granted, 8.

Cost of allowance system, 88.

Entrance requirements, 105.

Former {jension system, 24.

Medical school, 123, 126.

Pensions granted, 9.

State aid, 152.
Corson, Hiram, 78.

Cost of retiring allowances in accepted institu-
tions, 88, 89.
Cotner University, 124.
Craighead, Edwin B., President, University of

Montana, iii.
Crawford, William H., President, Allegheny

College, iii.
Cruse, Lee, Governor of Oklahoma, 145.
Cumberland University, 172.
Curtis, Mrs. Edward L., pension granted, 9.

JjALHOusrE College, 6.

Cost of allowance system, 88.
Dartmouth College, 6, 168.

Advanced standing in, 110, 112, 113, 116-
118.

Allowances granted, 8.

Cost of allowance system, 88.

Entrance requirements, 104.

State aid, 152.

Deaths of beneficiaries, 9, 13, 15.
Delaware, Lackawanna and Western Rail-
road, pensions of, 44, 64.
Denny, George H., President, University of

Alabama, iii.
Dental education, 130.
Dental training, 98.
Denver, University or.

Abolished clinical medical work, 127.

Advertising, 140.
De Pauw University, 18.
Detroit teachers' pension fund, 43.
Dexter, Franklin B., retired, 8.
Dickinson College, 6.
Disability under rules, 4.

Data, 10-12, 15.

Discontinuances, 13, 15.
District of Columbia.

Laws governing educational charters, 158-
163.

Proposed teachers' pension system, 34.
D'Ooge, Martin L., retired, 8.
Doolittle, Charles L., retired, 8.
Drake University, 6.

Cost of allowance system, 89.
Drury College, 6.

Cost of allowance system, 89.
Dwight, Mrs. Thomas, pension granted, 9.

liiaston, Morton W., retired, 8.

Eclectic Medical College, New York City,
123.

Eclectic medical schools, decrease, 127.

Economy and EflBciency, Federal Commission
on, 75.

Eddy, Henry T., retired, 8.

Education, Bureau of, 90, 132, 142.

Educational function of the Carnegie Founda-
tion, 94-98.

Efficiency, Bulletin on Academic and Indus-
trial, 22.

Elizabeth College, 139.

Elkin, Lewis, Philadelphia philanthropist, 42.

Elmira College, 87.

Employees' fund, Chicago public school, 38.

Endowment of Carnegie Foundation, 3.

Enghsh, entrance requirements in, 107, 108.

English civil service pension, 60, 62.

Entrance requirements, 101-108.

Ethnology, Bureau of, 90.

Examination in entrance requirements, 105.

Exchange of teachers with Prussia, 16-19, 22.

Executive committee of Carnegie Foundation.
Membership, iii, 4.
Proceedings, 5.
Resolution, 3.

Expenses of Carnegie Foundation, 3.

188

INDEX

Faculties, size in accepted institutions, 14.
Fellowships, grant of, 137.
Finance committee of Carnegie Foundation, 3.
Financial data of Carnegie Foundation.

Allowances in force, 11.

Expenditures in allowances, 14, 15, 87.

Fiscal year, 3, 10.
Financial Forms, Bulletin on Standard, 21, 130,

133.
Financial reporting, college, 130-133.
Fiscal year of Carnegie Foundation, 3.
Fischer, Ernest G., Prussian exchange teacher,

16.
FisK University, 87.
Fletcher, William I., retired, 8.
Flexner, Abraham, Assistant Secretary, Gen-
eral Education Board, 22, 122.
Florida, University of, 97, 147.
FoRDHAM University, 126, 127.
Franklin College, New Athens, Ohio, 87.
Franklin College of Indiana, 6.

Allowances granted, 8.

Cost of allowance system, 89.
Franks, Robert A., Treasurer, Carnegie Foun-
dation, iii.
Frierson, Sarah A., deceased, 169.
FiiRMAN University, 87, 171.
Furst, Clyde, Secretary, Carnegie Foundation,

Geographical distribution of beneficiaries, 13.

Of Prussian exchange teachers, 17.
George Washington University, 87, 162.
Georgetown University, 162.
Georgia, University of, 87, 169.
Gillis, Norman R., deceased, 169.
Gladstone, Viscount, 58.
GoRHAM Manufacturing Company, pensions of,

47.
GoiTiNGEN, University of, 174.
Graduate schools, 97.
Grand Trunk Railway System, pensions of,

44.
Greek as entrance subject, 105.
Grinnell College, 6.

Allowances granted, 8.

Cost of allowance system, 88.

Entrance requirements, 105.
Grove City College, 87.
Gsell, Erwin, Prussian exchange teacher, 16.
Guntermann, Karl, Prussian exchange teacher,

16.
Gymnasia, Prussian, 16, 17.

Hadley, Arthur T., President, Yale Univer-
sity, iii.
Member, executive committee, 4.

Hall, Columbus H., retired, 8.
Hallett, Frederick G. , Secretary, London Con-
joint Board.

Visit to America, 127, 128.
Ha>iilton College, 6.

Cost of allowance system, 88.

Entrance requirements, 104.
Hanover College, 87.

Harrison, Benjamin, President of the United
States.

Approved pension legislation, 76.
Harvard University, 6, 125, 155.

Advanced standing in, 109, 113, 115, 117,
118, 120.

Allowances granted, 8.

Cost of allowance system, 88.

Entrance requirements, 104, 107, 108.

Financial report, 132.

Former pension system, 24.

Medical school, 123, 127.

Pensions granted, 9.
Haverford College, pension system of, 24.
Haynes, Arthur E. , retired, 8.
Heidelberg, University of, 174.
Herring Medical College, 123.
Hickman, Adam C, retired, 8.
High Educational College of Glory, 154.
High School Teachers' Association of New
York.

Resolutions on entrance requirements, 108.
Hill School, Prussian exchange teacher, 17.
Hillsdale College, 87.
Hiram College, 87.
HoBART College, 6.

Cost of allowance system, 88.
HoLDERNESs ScHOOL, Plymouth, New Hamp-
shire, Prussian exchange teacher, 16.
Holmes professor, Yale University, 9.
Homeopathic medical schools, decrease in, 128.
Horace Mann School, Prussian exchange

teacher, 16, 17.
Howard College, Birmingham, Alabama, 16.
Howard University, Washington, District of

Columbia, 87.
Hume, Thomas, 169.
Humphreys, Alexander C, President, Stevens

Institute of Technology, iii.
Humphreys, Morton W., retired, 8.

Illinois, teachers' local pension funds, 37, 38.
Illinois, University of, 87, 174.

Abolished clinical medical work, 127.

Advanced standing in, 114, 119.

Allowances granted, 9.
Illinois Central Railroad, pensions of, 44.
Income of Carnegie Foundation, 3.
Indiana, teachers' state pension bill, rejected,
35.

INDEX

189

Ikdiaxa University, 6.

Advanced standing, 109, 112-114, 116-118.

Cost of allowance system, 89.

Pensions granted, 9.
Individual allowances of Carnegie Foundation.

Data, 10-12, 14, 15.

Geographical distribution, 13.

Granted, 9.

Restriction, 5.

Total paid in year, 3.
Industrial pensions, 44~48, 64.
Instructor, rules for allowances, 4.
Internationai. Harvester Compaky, pensions

of, 25, 47.
Iowa, Educational CoMsassioN of, policy of,

147.
Iowa, normal school history in, 149.
Iowa, State University of, 87.
Iowa State College of Agriculture and Me-
chanic Arts, 87, 170.

Jackson, Charles L., retired, 8.
James, William, 78.
Jefferson Medical College, 87.
Jenner Medical College, 123.
Jewett, Frank F., retired, 8.
Johns Hopkins University, 6.

Advanced standing in. 111, 113, 116, 117,
119.

Allowances granted, 8.

Cost of allowance system, 88.

Medical school, 123, 127.

State aid, 153.
Johnson, Ben, Congressman from Kentucky,

34.
Johnson, Otis C, deceased, 8, 170.
Johnson, Mrs. Otis C, pension granted, 9.
Johnston, Mrs. Harold W., pension granted, 9.
Jones, George W., deceased, 170.
Jones, Mrs. George W., pension granted, 9.
Jones, Paul, Prussian exchange teacher, 18.
Jordan, David Starr, President, Leland Stanford
Junior University, iii.

Kansas, local teachers' pension systems, 36.
Kansas, University of, 16, 87.

Advanced standing in, 112, 118.
Keidel, Heinrich, Prussian exchange teacher,

16.
Kentucky, State University of, 90.

Action of trustees, 145, 149.
King, Henry C, President, Oberlin College, iii.
Knox College, 6.

Allowances granted, 8.

Cost of allowance system, 88.

Entrance requirements, 105. [16.

Kopas, Wilhelm, Prussian exchange teacher.

JLafayette College, 90.

Lake Erie College, 90.

Lake Forest College, 90. [103.

Land-grant colleges, entrance requirements,

Latin as entrance subject, 104, 105.

Law schools, entrance requirements, 102.

Lawrence College, 6.

Cost of allowance system, 88.
Lee, Isaac A., Prussian exchange teacher, 16.
Legal education, 97, 98.
Lehigh University, 6.

Advanced standing in. 111, 113, 115, 117.

Cost of allowance system, 88.
Leland Stanford Junior University, 6.

Advanced standing in, 113, 117.

Cost of allowance system, 88.

Entrance requirements, 105.

Medical school, 123.
Lemoyne Normal Institute, 90.
Leonard, SterUng A., Prussian exchange

teacher, 16.
Lexington College, 140.
Lombard College, 90.
Loos, Charles L., deceased, 171.
Louisville Teachers' Pension Fund, 36.
Lowell, A. Lawrence, President, Harvard Uni-
versity, iii,
Loyola University, Medical School, 124.

McClelland, Thomas, President, Knox Col-
lege, iii.
McCorraick, Samuel B., Chancellor, University

of Pittsburgh, iii.
McGiLL University, 4, 6, 125, 139, 167, 169.

Advanced standing in, 111, 112, 115, 118.

Cost of allowance system, 88.

Former pension system, 24.

Pensions granted, 9.
Mackenzie School, 17.

McKinley, William, President of the United
States.

Approved pension legislation, 76.
McLean professor. Harvard University, 8.
McMinnville College, 136, 140.
Macvane, Silas M., retired, 8.
Macy, Jesse, retired, 8.
Maine, Medical School of, 124, 125, 127.
Maine, proposed state teachers' pension system,

33.
Maine, University of, 90.
Maiden (Massachusetts) high school, 16.
Malone, Kemp, Prussian exchange teacher, 16.
Mann, Horace, 150.
Marietta College, 6.

Cost of allowance system, 88.
Marion Miutary Institute, 90.

Pensions granted, 9.

190

INDEX

MAHauETTE UKivEEsmr, medical school, 124.
Maryland.

State aid to private institutions, 153.

Teachers' state pension system, 26.
Maryiand Medical College, 123.
Massachusetts.

State aid to private institutions, 152, 153.

Study of teachers' pension systems, 35.
Massachcsetts Agricultural College, 90.
Massachusetts Institute of Technology, 6, 17.

Allowances granted, 8.

Cost of allowance system, 88.

State aid, 152, 153.
Medical education.

Publications by Foundation, 20-22, 96.

Progress in, 122-130.
Medical schools.

Decrease in United States and Canada, 128.

Entrance requirements, 101.
Medicine, license to practice, 102.
Meridian College, 16.
Miami University, 90.

Michael, Otto, Prussian exchange teacher, 16.
Michigan, normal school history in, 149.
Michigan, University of, 6, 170, 174.

Advanced standing in, 109, 110, 112-114,
116-118.

Allowances granted, 8.

Cost of allowance system, 89.

Entrance requirements, 106.

Pensions granted, 9.
Michigan Agricultural College, 16.
Middlebury College, 6.

Cost of allowance system, 88.

State aid, 152.
Military pensions, United States, 75-77.
Mills College, 90.
Minneapolis, St. Paul and Sault Ste. Marie

Railroad, pensions of, 44.
Minnesota, local teachers' pension systems, 36.
Minnesota, University of, 6.

Advanced standing in, 109, 112, 113, 115,
116, 118.

Allowances granted, 8.

Catalogue, 135.

Cost of allowance system, 89.

Entrance requirements, 105.

Pensions granted, 9.
Mississippi, University of, 90.
Missouri, University of, 6.

Abolished cHnical medical work, 127.

Advanced standing in, 109, 113, 114, 116-
118.

Cost of allowance system, 89.
Modem language teaching in Prussia, 19.
Montana, Board of Education of, 148, 149.
Montana, University of, 90.
Moran, Isaac K., retired, 8.

Morris and Company, pensions of, 47, 48.
MortaUty experience, 91.
Mount Holyoke College, 6, 139.

Allowances granted, 8.

Cost of allowance system, 88.
Miiller, Max, Prussian exchange teacher, 16.
Murfee, James T., deceased, 171.
Murfee, Mrs. James T. , pension granted, 9.
Muskingum College, advertising, 141.

Nashville, University of, 90, 172, 173.
Advanced standing in, 112.
Pensions granted, 9.
National Association of School Accountants,

132.
National Association of State Universities,

120, 155.
National Education Association, 132.
Nebraska, University of, 90.

Advanced standing in, 110, 114, 115, 117,
118.
New Brunswick, University of, 90.
Newfoundland, Council of Higher Educa-
tion OF, 90.
New Hampshire.

Constitutional prohibition against teachers'

pensions, 36.
State aid to colleges, 152.
New Hampshire College of Agriculture and

Mechanic Arts, 152.
New Jersey, teachers' state pension system,

24, 27-30.
New South Wales, pension system of, 23, 48-

58, 74.
New York, Education Department of, advance

in medical requirements, 129.
New York, state of, teachers' pension system,
26,30-33.
State aid to private institutions, 152.
New York Central Lines, pensions of, 44, 64.
New York City teachers' pension fund, 39-41.
New York University, 6.

Advanced standing in, 111,113, 114,116, 118.
Cost of allowance system, 88.
Normal school work accepted for advanced aca-
demic standing, 114, 115.
Normal schools changing into arts colleges, 149-

152.
Norman, James W., Prussian exchange teacher,

16.
North Carolina College of Agriculture and

Mechanic Arts, 90.
North Carolina, Univehsity of, 90, 169.
Abolished clinical medical work, 127.
North Dakota, University of, 90.
Northwestern University.

Advanced standing in, 109, 113-117, 119,

123.
Financial report, 132.

INDEX

191

Norwich Ukiversity, state aid, 152.
Nurses, training of, 98.

Oberlin College, 6, 170.

Allowances granted, 8.

Cost of allowance system, 88.

Entrance requirements, 104.
OfiBcers of the Carnegie Foundation, iii.
Ohio, teachers' local pension funds, 37.
Ohio State Ujoversity, 90.

Advanced standing in, 113, 114, 117.

Financial reports, 133.
Ohio University, 90.
Oklahoma, State University of, 97.

Government of, 145-147, 149.
Old Dominion Steamship Company, pensions

of, 44.
Olivet College, 90.
Ontario Ladies' College, 140.
Oregon, University of, 90.
Oregon Agricultural College, 90.
Oriental University, 154.
Owen, Alfred, deceased, 172.
Oxford, University of, 26, 155.
Oxford College, 140.

Pacific University, 90, 136.

Paris, University of, 174.

Park College, 90.

Pattee, Mrs. William S., pension granted, 9.

Patton, John W., retired, 8.

Peabody Education Fund, 173.

Pennsylvania.

Constitutional prohibition of teachers' pen-
sions, 36.
State aid to private institutions, 152.
Pennsylvania, University of, 7.

Advanced standing in, 111, 114, 116-118.
Allowances granted, 8.
Cost of allowance system, 88.
Pensions granted, 9.
State aid, 153.
Pennsylvania Railroad System, pensions of,

44,64.
Pennsylvania State College, 17, 90.
Pension systems, 23-94.

A college pension system, 65-70.
Brown University, 24.
Carnegie Foundation system, 78-94.
City teachers' pension systems.
Boston, 41, 42.
Detroit, 43.
New York, 39-41.
PhUadelphia, 42, 43.
San Francisco, 44.
Columbia University, 25.
Contributory pensions, 59-63, 72.
Former college systems, 24.

Great Britain school teachers, 92.
Haverford College, 24.
Industrial pensions, 44-48.
Local teachers' pension systems.
Illinois, 37, 38.
Kansas, 36.
Louisville, 36.
Minnesota, 36.
Ohio, 37.
Utah, 36.
New Jersey teiichers, 24.
New South Wales, 23, 4«-58, 74.
Proposed teachers' state pension systems,

33-35.
Public school employees' pension funds,
38.
Porto Rico, 39.
Public school teachers, state systems.
Maryland, 26.
New Jersey, 27-30.
New York, 30-33.
Rhode Island, 27.
Virginia, 26, 73.
Wisconsin, 27.
South Africa, 58, 59. [64,

Subsistence and stipendiary pensions, 63,
Suggested for public school teachers, 70-77.
Stipendiary pensions, 64, 78, 79.
Teachers' pension fund bills rejected, 35, 36.
Voluntary systems, 26.
United States civil service pensions, 75.
United States military pensions, 75-77.
University of Chicago, 24, 25.
University of Wooster, 25.
Pensions of Carnegie Foundation.
Data, 10-12, 14, 15, 87.
Granted, 9.
Rules, 4.

Total amount paid in year, 3.
Peterson, William, Principal, McGiU University,
iii, 4.
Quotation, 139.
Pharmacy, education for, 130.
Philadelphia and Reading Railroaih pen-
sions of, 44, 64.
Philadelphia Rapid Transit Company, pen-
sions of, 45, 64.
Philadelphia teachers' pension fund, 42, 43.
Phillips Academy, Andover, Massachusetts,

Prussian exchange teacher, 16, 17.
Phillips Exeter Academy, Prussian exchange

teacher, 16, 17.
Physical director of a college, when eligible, 5.
Physio-medical schools, disappearance of, 128.
Pittsburgh, University of, 7.
Allowances granted, 8.
Cost of allowance system, 88.
State aid, 153.

192

INDEX

Plantz, Samuel, President, Lawrence College,

iii.
Politics and Education, 143-149.
Polytechnic Institute of Brooklyn, 7.

Cost of allowance system, 88.
Porter, James D., deceased, 172.
Porter, Mrs. James D., pension granted, 9.
Porto Rico, teachers' pension fund, 39.
President, Carnegie Foundation, iii. {See Pritch-

ett, Henry S.)
Presidential service under rules, 4.
Presidents of the United States, action on mili-
tary pensions, 75-77.
Pbince Edward Island, Department of Edu-
cation, 90.
Princeton Theological Seminary, 173.
Princeton University, 7, 173.

Cost of allowance system, 88.

Entrance requirements, 104.
J Financial reports, 132.

Pensions granted, 9.
Pritchett, Henry S. , President, Carnegie Foun-
dation, iii.

Absence, 3.
Pritchett College, 90.

Professional schools, entrance requirements, 102.
Professional work counted toward advanced

academic standing, 113, 114.
Professor, rules for allowances, 4.
Prussia, exchange of teachers with, 16-19, 22.
Publications of Carnegie Foimdation, 19-22.
Publicity bureau, 137.
Purdue University, 7.

Advanced standing in, 112, 117, 119.

Cost of allowance system, 89.

(oiuEEN's University, 167.

ixADCLIFFE CoLLEGE, 7, 93.

Cost of allowance system, 88.
Randolph, Louise F., retired, 8.
Randolph-Macon Woman's College, 90.
Reasons for teachers' pensions, 71.
Reed College, publications, 136.
Regents, composition of boards of, 144-149.
Remsen, Ira, President, Johns Hopkins Uni-
versity, iii.
Renouf, Edward, retired, 8.
Reports of the Carnegie Foundation, 20, 21.
Research, 85.

Rules for allowances for, 5.
Retiring allowances.

Change in rules, 4.

Cost of accepted institutions, 88, 89.

Data, 10-15, 87, 92.

Geographical distributioD, 13.

Granted, 8, 9.

Interpretation, 5.

Rules for granting, 4, 5, 22.

Total amount paid in year, 3.
Rhode Island, teachers' state pension system,

26, 27.
Richards, Eugene L., deceased, 173.
Richmond College, 170.
RiPON College, 7.

Cost of allowance system, 88.
Rochester, University or, 7.

Cost of allowance system, 88.
Rock Island Lines, pensions of, 44.
RocKFORD College, 140.
Roger Williams University, 90, 172.
Rollins College, 90.

Roosevelt, Theodore, President of the United
States.

Approved pension legislation, 76.
Rose Polytechnic Institute, 7.

Cost of allowance system, 89.
RoxBURY Tutoring School, New Haven, Con-
necticut, 16.
Ruggles professor, Columbia University, 8.
Rules of Carnegie Foundation, 78, 82, 83.

Change, 4, 69.

Publication, 22.

Summary, 4, 5.

St. John's College, AnnapoUs, Maryland, state

aid, 153.
St. Lawrence UNrrERsmr, state aid, 153.
St. Stephen's College, 137.
Salaries, Bulletin on College, 21.
Salem College (North Carolina), 140.
San Antonio and Aransas Pass Railroad, pen-
sions of, 44.
San Francisco teachers' pension fund, 44.
Scholarships, grant of, 137.
School of Mining, Kingston, Ontario, 90.
Schurman, Jacob Gould, President, Cornell
University, iii.

Member, executive committee, 4.
Schwamb, Peter, retired, 8.
Scotia Seminary, 139.
Searle, Arthur, retired, 8.
Secretary, Carnegie Foundation, iii.
Secretary to president of college, not eligible, 5.
Service pensions.

Data, 15.

History, 82, 83.
Sham universities, 154-163.
Shattuck, S. W., retired, 9.
Sherman, Frank A. , retired, 8.
Shorter College (Georgia), 140.
Slocum, William F., President, Colorado Coir

lege, iii.
Smith College, 7, 139.

Advanced standing in. 111. "

INDEX

193

Allowances granted, 8.
Cost of allowance system, 89.
Entrance requirements, 104.
Snow, Marshall S., retired, 8.
South, rise of entrance requirements in, 101.
South Africa, pension system of Union of, 58,

59.
South Cahouna, University of, 90.
South Carolina Miutary Acadejiy, 90.
Southern California, University of, medical

school, 194.
Southern Education Board, 90.
Southern Pacific Railroad, pensions of, 44.
Southern States, Association of Colleges

AND Preparatory Schools of the, 102.
Spangler, Mrs. Henry W., pension granted, 9.
Special students, 103.
Spring Hill College, 139.
State aid to private institutions, 152-154.
State universities, 105.
Steckel, Thomas E. , Prussian exchange teacher,

16.
Stephens, Winston B., Prussian exchange

teacher, 16.
Stevens Institute of Technology, 7, 174.
Pensions granted, 9.
Cost of allowance system, 89.
Stipendiary pensions, 64, 78, 79.
Stone, Ormond, retired, 8.
Subsistence pensions, 63, 64.
Susquehanna University, 90.
Swathmore College, 7.

Cost of allowance system, 89.
Sweetbriar College, 139.
Syracuse University, state aid, 162.

A ABOR College, 90.

Taft, WilliamH., Presidentof the United States.

Approved pension legislation, 77.

Recommends civil service pensions, 75.
Talladega College, 90.

Taylor, James M., President, Vassar College, iii.
Teachers.

Exchange with Prussia, 16-19, 22.

Number in accepted institutions, 14.

Preparation in Prussia, 19.

Training of, 97.
Teachers College, Columbia University.

Advanced standing in, 116.

Pension system, 25.
Technical schools, entrance requirements, 103.
Teece, Richard, actuary, 49, 50.
Tennessee, University of, 90.

Medical school, 124, 125.
Texas, University of, advanced standing in,

109, 113, 114.
Texas Christian University, 124.

Thwing, Charles F. , President, Western Reserve

University, iii.
Tome School fob Boys, Prussian exchange

teacher, 16.
Toronto, University of, 7.

Cost of allowance system, 89.

Financial report, 132.

Former pension system, 24.
Transylvania University, 90, 171.
Treasurer, Carnegie Foundation, iii.
Trinity College, Hartford, Connecticut, T.

Cost of allowance system, 89.

Entrance requirements, 104.
Trivett, John B., actuary, 50-52. [149.

Trustees, composition of college boards of, 144-
Trustees of the Carnegie Foundation.

Annual meeting, 4.

Names, iii.
TuiTS College, 7.

Advanced standing in, 112.

Cost of allowance system, 89.
TuLANE University of Louisiana, 7.

Advanced standing in, 110, 113, 114, 118.

Cost of allowance system, 89.
Tyler, Henry M., retired, 8.

Union Pacific Railroad, pensions of, 44, 64.
Union University, 7.

Cost of allowance system, 89.

Medical school, 124, 125, 127.
United States civil service pensions, 75.
United States military pensions, 75-77.
United States Steel Corporation.

Bonds owned by Carnegie Foundation, 3.

Pension system of, 47.
Units, entrance requirement, 101.
University College, Oxford, 119.
University of Puget Sound, 136.
Utah, teachers' local pension funds, 36.

Valparaiso University, 140.
Vanderlip, Frank A., Trustee, Carnegie Foun-
dation, iii.
Van Dyke, Henry N., deceased, 173.
Van Dyke, Mrs. Henry N., pension granted, 9.
Van Hise, Charles R., President, University of

Wisconsin, iii.
Vassar College, 7, 139.

Advanced standing in, 109, 110, 112, 113,
116, 117, 119.

Allowance granted, 8.

Cost of allowance system, 88.

Entrance requirements, 104.
Vermont, state aid to private institutions, 152.
Vermont, University of, 7.

Cost of allowance system, 89.

Medical school, 127.

State aid, 152.

194

INDEX

Virginia, state aid to private institutions, 153.
Virginia, teachers' state pension system, 26, 73.
Virginia, University of, 7, 169.

Advanced standing in, 101.

Allowances granted, 8.

Catalogue, 135.

Cost of allowance system, 89.

Entrance standard, 101.
Virginia Military Institute, 90, 171.
Virginia Polytechnic Institute, 90.
Vocational studies, 104.
Voluntary pension systems, 26.

vVabash College, 7.

Cost of allowance system, 89.
Wadsworth, Marsham E., retired, 8.
Wake Forest College, 170.
Washburn College, abolished clinical medical

work, 137.
Washington, University of, advanced stand-
ing in, 109, 112, 117.
Washington and Jefferson College, 7.

Cost of allowance system, 89.
Washington and Lee University, 90.
Washington College, Chestertown, Maryland,

state aid, 153.
Washington University, 7.

Allowance granted, 8.

Cost of allowance system, 89.

Medical school, 123.
Webb, John B., deceased, 174.
Webb, Mrs. John B., pension granted, 9.
Wellesley College, 7, 139.

Cost of allowance system, 89,

Entrance requirements, 104.
Wells College, 7.

Cost of allowance system, 89.

Resignation of president, 146.
Wells Fargo and Company, pensions of, 47.
Wesleyan University, 7.

Cost of allowance system, 89.

Entrance requirements, 104.
Western College for Women, Oxford, Ohio,

90.
Western Electric Company, pensions of, 45.
Western institutions, entrance requirements,
105.

Western Reserve University, 7.

Advanced standing in, 113, 114.

Cost of allowance system, 89.

Medical school, 127.
Western Union Telegraph Company, pensions

of, 45.
West Virginia University, 90.
Westinghouse Air Brake Company, pensions

of, 47.
Whitney, Mary W., retired, 8.
Willamette University, 124, 136.
Willard, Thomas R., retired, 8.
Williams, Henry S., retired, 8.
William and Mary College, 90.
Williams College, 7.

Cost of allowance system, 89.

Entrance requirements, 104.
Wisconsin.

Normal school legislation, 150, 151.

Teachers' state pension system, 26, 27.
Wisconsin, University of, 7.

Advanced standing in, 109-115, 117, 119.

Cost of allowance system, 89.

Financial report, 133.

Prussian exchange teacher, 16, 17. [16.
Wisconsin State Normal School, Milwaukee,
Wofford College, 90.
Woman's College (Illinois), 140.
WoosTER, University of, pension system, 25.
Worcester Academy, Worcester, Massachu-
setts, Prussian exchange teacher, 16, 17.
Worcester (Massachusetts) high schools, 17.
Worcester Polytechnic Institute, 7.

Cost of allowance system, 89.

State aid, 152.
Worthen, Thomas W. D., retired, 8.
Wyoming, proposed state teachers' pension
system, 34.

Yale University, 4, 7, 17, 167, 170, 173.
Advanced standing in, 109, 114, 116-119.
Allowances granted, 8.
Cost of allowance system, 89.
Entrance requirements, 104, 106, 109.
Financial report, 132.
Former pension system, 24.
Pensions granted, 9.

LB Carnegie Foundation for the

2334 Advancement of Teaching
C3 Report

1911/12

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