HV
97
1915
Cornell Untversity Library
HV 97.R6R68 1915
Information furnished by the Rockefeller
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INFQBMATION FURNISHEO BY
The Rockefeller Foundation
IN RESPONSE TO QUESTIONNAIRES
SUBMITTED fiY
United States Commission
on Industrial Relations
THE LIBRARY
OF THE
NEW YORK STATE SCHOOL
OF
INDUSTRIAL AND LABOR
RELATIONS
AT
CORNELL UNIVERSITY
The original of tiiis book is in
tine Cornell University Library.
There are no known copyright restrictions in
the United States on the use of the text.
http://www.archive.org/details/cu31924000617567
(3 '^^'^
Information Furnished by
The Rockefeller Foundation
In Response to
Questionnaires Submitted by
United States Commission
on Industrial Relations
7-14
\.^«>iia«
CONTENTS.
QUESTIONNAIRE I.
Organization.
QUESTION PXOE
1. Charter 1
Schedule A. Charter 19
1. Constitution 1
Schedule B. Constitution 20
1. By-Laws 1
Schedule 0. By-Laws 23
2. Eockefeller Foundation not a con-
solidation of pre-existing or-
ganizations 1
3-4. Directors 1,2
5. Officers 2
Funds, Character and Control.
6. Statement of funds held 4
Schedule D. Statement of funds
held 27
7a. Control of funds 4
7b-c. Appropriations and payments 5
8. Sources of present funds 7
9. Sources of future funds 7
10. Manner of making appropriations. . 8
11. Estimates for appropriations 8
12. Restrictions on expenditure of ap-
propriations 9
Agreements and Contracts.
13. Agreement with Mr. King 9
14. Provision for divergence of policy
between Mr. King and Directors. 11
15. Termination of agreement with Mr.
King 13
I 16. Control of investigations 13
vfi Vt. Appropriations for investigations.. 13
^ ... Property of
^ '" MARTIN P. CATHERWOOD LIRRARV
Corna!! Uriiv2r:;itv
IV CONTENTS.
Purposes and Plans.
QUESTION PAGE
18. No consolidation of benefactions in
the Rockefeller Foundation 14
19. Work of subsidiary organizations . . 14
20. Eeasons for establishing Industrial
Relations Division 14
21. Resolution authorizing Industrial
Relations Division 9, 16
22. Investigations by Industrial Rela-
tions Division 16
23. Results to be secured by Industrial
Relations Division 16
24-25. Limitation of work of Industrial Re-
lations Division 17
26-27. Annual Reports 17
28. Impartiality of investigations and
reports 18
29. Plans of Industrial Relations Di-
vision 18
QUESTIONNAIRE II.
1. Previous employment and full time
service of Treasurer and Assist-
ant Treasurer 31
2. Publications by International
Health Commission and Rocke-
feller Sanitary Commission 32, 103
3. Investigations by International
Health Commission 32
4. Membership of Finance Committee 33
5-6. Applications from philanthropic
agencies for contributions 33, 36
7. Conferences between Members of
Foundation and Mr. King 36
8. Outline of work and organization
for proposed investigations by
Industrial Relations Division 36
9. Catalogue and bibliography pre-
pared by Dr. Foerster 38
CONTENTS. V
QUesXION PAGE
10. Study of the literature conceruii^
Industrial Eelations 39
11. Interim reports by Mr. King 39
12. Staff employed by Mr. King 40
13. Mr. King's experience in labor
problems 40
Exhibit A, same 50
14. Notice to Members of meeting of
August 13 40
15. Procedure in considering Beports
of Investigations 41
16. Economists and business men con-
sulted as to establishing Indus-
trial Belations Division 42
17a. Time Mr. King began work 46
17b^c. Questions to be investigated by
Mr. King 46
18. Procedure ia engaging assistants
to Mr. King 46
19. Study of experience of other coun-
tries in adjusting industrial re-
lations 47
20. Meetings of the Rockefeller Foun-
dation 47
Exhibit B, attendance of members . . 54
21. Compensation of Members and
Officers 48
22. Annual Report for 1914 48
23. Nominating Committee 48
24. Chapters VI and VII from "Ran-
dom Reminiscences of Men and
Events" 48
Exhibit C, same 55
25a. Application for national and state
charters 48, 96
25b-c. Purposes of Foundation, as sub-
mitted to Committee of Congress,
and publicity matter issued in
connection 49, 87
26. Statements issued to the Press 49
Exhibit D, same 73
Information Furnished By
THE ROCKEFELLER FOUNDATION
In Response to Questionnaire Submitted by the
United States Commission on Industrial
Relations.
Obganization
Question 1. Please furnish copies of Constitu-
tion and By-Laws.
Ansiwer. Copies of the Charter, being Chapter
488 of the Laws of 1913 of the State of New
York, and of the Constitution and By-Laws are
hereto annexed, marked respectively, Schedules
A, B and C (see page 19, et seq.).
Question 2. What Boards, Funds, Commissions
and other org:anizations have been included under
the Rockefeller Foundation?
Answer. None. The Eockefeller Foundation is
not a consolidation of pre-existing organizations
but is a separate and distinct creation with its
own funds.
Question 3. Who are the members of the pres-
ent Board of Directors?
a. For what terms do they serve?
Answer. For the term expiring 1915: Harry
Pratt Judson, Simon Flexner, Starr J. Murphy.
For the term expiring 1916: John D. Eocke-
feUer, John D. Rockefeller, Jr., Frederick T.
Gates.
For the term expiring 1917 : Charles W. Eliot,
2 THE BOCKEFEIOiEB FOUNDATION
Widdiffe Kose, Charles 0. Heydt, Jerome D.
Greene, A. Barton Hepburn.
Question 4. How and by whom will the future
Directors be chosen?
a. For what terms will they serve?
Answer. "New members, whether as succes-
sors to those named in the Act of Incorporation
or otherwise, and soich additional members as
they or their successors shall see fit to associate
with them, shall be elected by ballot, either at
the annual meeting of the Corporation or at a
special meeting duly called for that purpo^, by
vote of a majority of the members of the Cor-
poration attending such meeting.
Any member may withdraw from the Corpora-
tion by a notice in writing to the President or
Secretary. The members shall be at all times
divided into three classes equal numerically, as
nearly as may be, and the original members shall
at their first meeting, or as soon thereafter as
may be convenient, be divided into three classes
the members of the first class to hold their mem-
bership and oflBce until the first annual meeting,
the members of the second class until the second
annual meeting, and the members of the third
class until the third annual meeting, and in every
case the member shall hold office after the ex-
piration of his term imtil Ms successor shall be
chosen. At each annual meeting the successors
to those members whose term of office then ex-
pires shall be chosen for the term of three years
and until their successors shall be chosen."
(Constitution, Artide I.)
Question 5. Who are the present officers of the
Foundation and its subsidiary organizations?
a. How were they chosen?
b. For what terms do they hold office?
THE BOCKEFKLLEB FOUNDATION 3
Answer. The present officers of the Founda-
tion are: John D. Eockefeller, Jr., President;
Jerome D. Greene, Secretary; Louis G. Myers,
Treasurer; Lefferts M. Dashiell, Assistant Treas-
urer.
These officers, with the exception of the Assist-
ant Treasurer, were chosen by ballot at the first
meeting of the Foundation, held May 22, 1913,
and re-elected at the first annual meeting of the
Foundation, held January 21, 1914, in accordance
with Article IV of the Constitution, which is as
follows:
"Opficbbs"
"The officers of the Corporation shall consist
of a President, Secretary and Treasurer, together
with such other officers as may be determined by
the By-Laws. These officers shall have the du-
ties and exercise the powers' assigned to them by
this Constitution or by the By-Laws, or by reso-
lutions adopted pursuant to the authority of this
Constitution or the By-Laws. At each annual
meeting of the Corporation or, in default of elec-
tion at such meeting, then at an adjournment
thereof, or at any meeting duly called for that
purpose, the Corporation shall elect by ballot a
President, Secretary and Treasurer, and it may
choose such other officers as the By-Laws shall
from time to time provide. All the officers,
whether elected or appointed, shall hold office
at the pleasure of the Corporation, but in no
case beyond the time when their respective sue-
cessorsi shall be elected and accept office."
The Assistant Treasurer was appointed by the
Executive Committee at its meeting on March
18, 1914.
The Foundation has created, as a sub-
4 THE BOCKEFELLBB POTTNDATIOIf
sidiary organization, the International Health
Conunission, the purpose of which is to
extend to foreign countries and peoples the work
of eradicating hookworm disease as opportunity
offers, and so far as practicable to follow up the
treatment and cure of this disease with the es-
tablishment of agencies for the promotion of
public sanitation and the spread of knowledge of
scientific medicine. The members of the Inter-
national Health Commission are the members of
the Executive Committee of the Rockefeller
Foundation, viz: Simon Flexner, Jerome D.
Greene, Charles O. Heydt, Starr J. Murphy, John
D. Rockefeller, Jr., and Messrs. Charles W. Eliot,
Frederick T. Gates, William Crawford Gorgas,
David V. Houston, Walter H. Page, Wickliffe
Rose, WilUam H. Welch.
The ofl&cers of the International Health Com-
mission are: John D. Rockefeller, Jr., Chairman;
Wickliffe Rose, Director General; John A. Fer-
rell, Assistant Director General.
These officers were elected by the members of
the International Health Commission at its an-
nual meeting held January 20, 1914, for the term
of one year, or until their successors are elected.
Funds, Chabacteb and Contbol.
Question 6. Please furnish a statement, show-
ing in detail the funds, securities and other sources
of income now held by the Foundation or by any
subsidiary organizations.
Answer. See Schedule D (page 27).
Question 7. By what Committee, Board or per-
son are the funds of the Corporation controlled?
THE EOOKBPBLI.BB FOUNDATION 3
a. Who controls the character of investment or
place of deposit of the funds?
Answer. The Finance Committee controls the
character of the investments. (By-Laws, Art.
11.)
The Executive Committee controls the place of
deposit of the funds. (By-Laws, Art. V.)
b. On whose authorization and in what manner
are funds appropriated?
Answer. Appropriations are made by the
Board of Directors or the Executive Committee,
on the report and recommendation of the Secre-
tary or any other officer or member of the Foun-
dation.
c. On whose warrants are funds paid out?
"No bills shall be paid except those which have
been incurred pursuant to a resolution of the
Corporation or imder the authority of the Execu-
tive Committee, and such bills shall be paid only
on a voucher approving the same for payment
and referring to the specifid resolution or authori-
zation pursuant to which they were respectively
incurred, which voucher shall be signed by the
President and the Secretary or such of the assist-
ant secretaries as shall be designated by resolu-
tion of the Corporation or the Executive Com-
mittee, or, in the case of the absence or disability
of either the President or Secretary, by such other
member of the Corporation as such absentees
shall designate in writing for that purpose.
A current expense account of not to exceed five
thousand dollars ($5,000) on deposit at any one
time may be opened with such depository as may
be designated by the Executive Committee, which
shall be subject to draft upon the signature of the
cashier of the Corporation who shall be bonded at
6 THE BOCKEFEIjLBB FOUNDATION
the expense of the Corporation for such sum as
the Executive Committee shall fix."
(Art. V of By-Laws, pars. 2 and 3.)
d. What regulation governs the expenditure of
the interest or limits the accumulation of the
fund?
e. What regulation controls the expenditure of
the principal?
Answer. As regards the accumulation of the
fimd, the Charter of the Foundation provides:
"The Corporation * * * * shall have the
power to take and hold by bequest, devise, gift,
purchase or lease, either absolutely or in trust
for any of its purposes, any property, real or per-
sonal, without limitation as to amount or value,
except such limitation, if any, as the legislature
shall hereafter specifically impose; to convey such
property, and to invest and reinvest any princi-
pal, and deal with and expend the income and
principal of the corporation in such manner as
in the judgment of the trustees will best promote
its objects. It shall have all the power and be
subject to all the restrictions which now pertain
by law to membership corporations created by
special law so far as the same are applicable there-
to and are not inconsistent with the provisions
of this act."
As regards the expenditure of the principal and
income, the only restrictions are:
1. The following provisions in Mr. John D.
Rockefeller's letter of March 6, 1914:
"It is a condition of this gift that from the in-
come of the Foundation the sum of Two million
dollars annually, or as much thereof as I shall
designate, shall be applied during my lifetime to
such specific objects within the corporate pur-
THE ROCKEFELLKB FOUNDATION I
poses of the Foundation as I may from time to
time direct. If at the close of any fiscal year
there shall remain any balance of the Two mil-
lion dollars which I have not thus designated
during that fiscal year, such balance shall be
transferred to the general unrestricted income of
the Foundation to be used as the Foundation
shall see fit. Subject to the foregoing provision,
the principal as well as the income of this gift
may be used in your discretion for any of the
corporate purposes of the Foundation."
2. By-Laws, Art. 8,, as follows:
"No part of the principal of the fxmds of the
Foimdation shall be distributed except pursuant
to a resolution passed by the affirmative vote of
two-thirds of all those who shall at the time be
members of the Foundation at a special meeting
held on not less than thirty days' notice given in
writing to each member of the Foundation which
shall state that the meeting is called for the pur-
pose of considering a resolution to authorize the
distribution of the whole or some part of the
principal of its funds."
Question 8. From what sources have the funds
of the Foundation hitherto been derived?
Answer. The Foundation has received from Mr.
John D. Rockefeller gifts of securities of the ag-
gregate market value at the time of the gifts of
One hundred million dollars. It has also received
securities aggregating Forty-eight thousand dol-
lars from Laura S. (Mrs. John D.) Rockefeller in
trust, for certain specific purposes within the cor-
porate purposes of the Board.
Question 9. From what sources are the future
funds of the Foundation expected to be received?
Answer. The Foundation has no expectation
8 THE BOOKEFBLLKB F0T7KDAII0K
with regard to future funds, but under the terms
of its charter it can receive gifts from any source.
Question 10. In the divisions of the Foundation
which have akeady been in operation (e. g. Gen-
eral Education Board), how, by whom, and for
what periods have appropriations been made?
a. Are such appropriations made as a lump sum
to be used at the will of the directors or respon-
sible head, or is there an appropriation for each
specific line of work?
Answer. This question is evidently based upon
a misunderstanding. As stated above, the Eocke-
feller Foundation is not composed of organiza-
tions which previously existed. The General Edu-
cation Board is an entirely independent corpora-
tion with funds of its own. In the case of the
International Health Commission lump sums have
been from time to time appropriated for the use
of the Commission to be expended in accordance
with appropriations duly made by the Commis-
sion or its Executive Committee.
Question 11. By whom and in what manner are
the estimates for necessary appropriations made?
Answer. The major part of the work of the
Foundation consists in making contributions to
other agencies carrying on various philanthropic
activities. Applications are made by these agen-
cies, and appropriations are made by the Board
or the Executive Committee on the report and
recommendation of the Secretary or any other
officer or member of the Foundation. In cases
where estimates are necessary, they are made by
the persons recommending or presenting the mat-
ters.
THE BOOKBPELL.EB FOUNDATION 9
Question 12. After an appropriation for any
particular purpose has been made, to what re-
strictions or review is its expenditure subject,
other than the ordinary business and legal pro-
cedure to insure honesty in its control?
Answer. The appropriations are in general
made in the form of pledges to particular institu-
tions for definite amounts and, when once made,
each pledge becomes a contract which is not sub-
ject to review by the Foundation. The expendi-
ture of other appropriations is subject to the ordi-
nary business and legal procedure.
Ageeements and Contbaots.
Question 13. What agreements or understand-
ing, verbal or written, exist between the Founda-
tion and Mr. King, regarding the scope of the
work which is to be done under his direction, and
the method of investigation which is to be pur-
sued?
a. By whom was the arrangement with Mr. King
made?
Answer. Mr. King was appointed pursuant to
a resolution adopted at the meeting of the Ex-
ecutive Committee of the Rockefeller Founda-
tion held August 13, 1914, of which the following
is a copy:
"Eesolved: That William Lyon Mackenzie
King be, and he is hereby, appointed to make a
comprehensive study of the problem of industrial
relations at a salary of $ a year from October
1, 1914.
"It was, on motion, further
"Eesolved, That the Secretary be authorized to
10 THE BOOKEFELLEB FOUNDATION
approve all bills for necessary traveling expenses
and all other expenses incurred by Mr. King in
the pursuance of his work under the direction of
the Executive Committee. The Secretary pre-
sented a recommendation from Mr. King for the
employment of Robert F. Foerster, Ph.D., to
prepare a catalogue of individuals and organiza-
tions, and a bibliography concerning the general
subject of industrial relations.
"Whereupon it was, on motion,
"Resolved, that Dr. Foerster be appointed to
perform the service above described, the same to
be completed on or about October 1, 1914, for a
total compensation of $
"It was also further
"Resolved, that Dr. Foerster be authorized to
employ as his assistant, Mr. L. C. Staples, at a
salary of $ a month, and to employ such
further clerical assistance and incur such further
expenses incident to the preparation of the pro-
posed catalogue and bibliography as should meet
the approval of Mr. King,"
The amounts of the salaries have been omitted
as being information of a confidential nature not
material to this inqtiiry.
The action at this meeting had been preceded
by conferences and correspondence between Mr.
King and members of the Executive Committee
of the Foundation, principally the President and
Secretary, Messrs. John D. Rockefeller, Jr., and
Jerome D. Greene. In brief, Mr. King was in-
vited to conduct "an investigation of the great
problem of industrial relations, with a special
view to the discovery of some mutual relation-
ship of labor and capital which would afford to
THE KOCKEFELLEE FOUNDATION 11
labor the protection it needs against oppression
and exploitation, while at the same time pro-
moting its efficiency as an instrument of economic
production." Mr. King was also invited to out-
line a method of work and organization for the
proposed investigation which would enable him
to make the largest possible contribution to the
solution of the problem. The wish of the Foun-
dation was expressed as follows:
"It is our desire that the scope should be as
broad and comprehensive as possible, for only
as a result of such an intensive investigation can
we hope to be in a position to make helpful sug-
gestions looking toward the improvement in in-
dustrial relations."
There is no formal written contract between
the Foundation and Mr. King, other than the reso-
lution appointing him. There are no verbal
agreements or understandings.
Question 14. Is there any provision in the agree-
ment or understanding to assure Mr. King's abil-
ity to go on with his plans, even if his policy
should be divergent from that of the Directors?
Answer. This and several subsequent questions
appear to be based upon an entire misconception
of the spirit and purpose of the investigation
which Mr. King has been retained to direct. Hav-
ing in mind that hardly any relation in life is
more far reaching than the industrial relation,
and particularly having in view the growing
tendency to misunderstanding and lack of
harmony between employers and employes, re-
sulting in great injury to both as well as to the
12 THE BOOKBFELLBB FOUNDATION
general public, the Foundation has felt that no
subject could be more worthy of study, and that
if it could work out sound and substantial im-
provements in the relation of capital and labor,
it could hardly do anything better calculated "to
promote the weU-being of mankind," for which
purpose the Foundation was created. In no
sense will the inquiry be local or restricted, or
carried on with particular reference to any ex-
isting situation, or to conditions ia any one
country. The experience of the several coimtries
of the world will be drawn upon. Mr. King has
been selected as a person whose broad sympathies
and wide experience peculiarly qualify him to
assist the Foundation in this endeavor. As in-
dicated in the statement of the Foundation at
the time the investigation of industrial relations
was announced, the work in spirit and method
will be akin to that of the Rockefeller Institute
for Medical Research. In so far as Mr. Kiag's in-
quiries have to do with industrial controversies,
his attitude will be that of a physician who in-
vestigates the nature and causes of the pathologi-
cal conditions with which he has to deal, with a
view, if possible, to the discovery of effective
remedies. It camiot be too clearly understood
that the purpose of this inquiry is not to appor-
tion blame in present or past misimderstandings,
nor to justify any particular point of view; the
sole purpose is to be constructively helpful. The
final and only test of the work mil be the degree
to which the constructive suggestions growing
out of the investigation actually improve the rela-
THE BOOKEFELLEB FOUNDATION 13
tions between capital and labor. In a work con-
ceived and undertaken in such a spirit, any ques-
tion of divergent policies or of partiality in the
investigation can have no place. Mr. King bas
from the outset indicated to the Foundation his
desire to avoid any form of organization which
may cause it even to appear that bis work is in-
tended to rival or encroach upon the work of ex-
isting organizations, and in particular the work
properly assignable to government departments
and agencies. It is bis intention from time to time
to retain experts and seek expert advice in dif-
ferent fields included within, the scope of bis study,
and to employ such clerical assistance as may be
necessary. In view of Mr. King's experience, the
conduct of the work will be left in bis bands, sub-
ject merely to such conference with! the oflBcers of
the Foundation as may be desirable, and to a gen-
eral control by the Foundation of the extent of the
expenditure.
Question 15. Upon what conditions can the
agreement with Mr. King be terminated?
Answer. At Mr. King's expressed wish, the
period of his relationship to the Foundation was
limited to one year, beginning October 1, 1914,
with the hope and expectation expressed by the
Foundation that his connection with it might con-
tinue thereafter indefinitely.
Question 16. What person, Board or Committee
controls the field, scope and method of investiga-
tion?
Answer. Mr. King as Director.
Question 17. Has the Foundation or its sub-
sidiary and aflSliated organizations refused at any
14 THE EOOKEFBLLEB FOUNDATION
time to continue appropriations for any piece of
work or for any investigation which had been
agreed upon?
Answer. No.
PuEPOSE AND Plans.
Question 18. What were the fundamental rea-
sons and purposes which led to the consolidation
and incorporation of the various Rockefeller bene-
factions?
Answer. There has been no consolidation of
the varioTis Eockefeller benefactions.
Question 19. Please outline briefly the work
which is now being carried on by the subsidiary
departments or organizations which make up the
Foundation, and indicate as far as possible their
general plans.
Answer. As previously stated, the major part
of the work of the Foundation consists in con-
tributions to other agencies carrjdng on various
philanthropic activities. The work and plans of
the International Health Commission and of the
Industrial Eelations Investigation are described
in answer to previous questions. The former is
now carrying on work in the British West Indie?,
Central America, Egypt, Ceylon, the Malay States
and the Philippines.
Question 20. What were the facts, reasons and
considerations which led to the establishment of
the Industrial Relations Division of the Founda-
tion?
Answer. For several years past Mr. John D.
Rockefeller and his advisers have had under con-
sideration the establishment of an organization
THE BOCKEFELLEB FOUNDATION 15
for social and economic research. Upon tlie es-
tablishment of the Rockefeller Foundation, one
of the first matters which it considered was the
possibility of the organization of such an institu-
tion, and a committee of leading economists and
business men was created to consider whether
such an organization could wisely and profitably
be established. This is referred to in the testi-
mony of Mr. John D. Bockefeller, Jr., given April
6, 1914, before the Sub-Committee of the Com-
mittee on Mines and Mining of the House of Rep-
resentatives (see page 2892 of their printed testi-
mony). "While the general subject of economic
research was under consideration, the industrial
disturbances in Colorado impressed the President
of the Foundation with the great need and public
importance of finding an effective means of pre-
venting such' conflicts and caused him to urge a
far-reaching study of industrial relations as the
most important immediate inquiry to which the
Foundation could direct attention. In view of
the passion aroused in Colorado and the many
divergent interests involved there, it was felt
that the Foundation itself should not interfere
in that situation, but that it was of the utmost
consequence that the root causes of that and simi-
lar disturbances should be ascertained, and, if
possible, removed, not only in Colorado but else-
where. The Rockefeller Foundation is, moreover,
a large owner of corporate securities, and in that
capacity is itself directiy concerned in maintain-
ing harmonious relations between the companies
in which it is interested and their employes. It
was therefore felt that if the Foundation could
16 THE BOCKEF£L>LEB FOUNDATION
work out, on a basis compatible with sound eco-
nomics, a substantial improvement in the rela-
tions between capital and labor, it would not only
discharge its obligation as indirectly a large em-
ployer of labor, but would also perform for the
general public a greater social service than it
could render along usual philanthropic lines.
Eealizing that the success of such an endeavor
would depend almost entirely upon the character
and experience of the person conducting the work,
it examined the field to see whether a suitable per-
son could be found. In this connection, its atten-
tion was directed to Mr. King, and the ofl&eers de-
termined that in view of his broad experience and
high character, if his services could be secured
they would recommend that the Foundation un-
dertake a study of this subject.
Question 21. If the Industrial Relations Divis-
ion was authorized by resolution, please furnish
a copy of the resolution. If not, please state by
whom, at what time, and under what circum-
stances its establishment was suggested and pro-
vided for.
Answer. A copy of the resolution is set forth in
answer to Question No. 13.
Question 22. Please outline, as far as possible,
the questions in the field of Industrial Relations
to which the investigations of the Foundation
may be directed?
Answer. This has been left to Mr. King to de-
cide.
Question 23. What results does the Foundation
expect to secure from its Industrial Relations Di-
vision?
THE BOCKBFELLEB FOUNDATION 17
Answer. As already stated in answer to Ques-
tions Nos. 14 and 20, it is hoped tliat by a careful
study of world experience there may be disclosed
methods of adjusting industrial relations which if
applied will prove of permanent value.
Question 24. Will the work of the Industrial Re-
lations Division be limited to investigation?
Answer. Being solely concerned with the ac-
complishment of the practical aim of this under-
taking, namely, to improve the relations between
capital and labor, the Foundation has purposely
avoided assigning any definite limits either to
the method of procedure or to the scope of the
work.
Question 25. If not, what means other than the
publication of its investigations are likely to be
used to make effective the findings of the investi-
gations?
Answer. Answered by the answer to the pre-
ceding question.
Question 26. In what form and to what author-
ity will the annual reports of the Foundation be
made?
Answer. The statute of New York does not re-
quire the publication or filing with any public au-
thority of annual reports. The Foundation has
already decided, however, to publish annual re-
ports of its activities.
Question 27. To whose supervision or approval
will the reports of the investigations be subject
prior to publication?
Answer. To the Foundation or the Executive
Committee.
18 THE BOCKBFKLLEB FOUNDATION
Question 28. In what way will the impartiality
of the Foundation's investigations and reports be
assured?
Answer. This is covered by the answers to
Questions Nos. 14 and 20.
Question 29. When will the plans of Mr. King
be ready?
Answer. It is not expected that plans of a for-
mal or conventional kind will be prepared, but
rather that Mr. King will proceed along such lines
as may from time to time appear to offer greatest
promise of practical results.
THE ROCKEFELLER FOUNDATION.
(Signed) .John D. Rookepblleb, Jb.,
President.
(Signed) Jeeome D. Geebne,
Secretary.
December 4, 1914.
THE EOCKEFELLEB FOUNDATION 19
SCHEDULE A.*
Charter of The Rockefeller Foundation.
Chap. 488, Laws of New York, for 1913.
AN ACT
To incorporate The Rockefeller Foundation.
Became a law May 14, 1913, with the approval of the Gov-
ernor.
Passed, three-fifths being present.
The People of the State of New York, represented in Senate
and Assembly, do enact as follows:
Section l. John D. Rockefeller, John D. Rockefeller, Junior,
Frederick T. Gates, Harry Pratt Judson, Simon Flexner, Starr
J. Murphy, Jerome D. Greene, Wickliffe Rose and Charles O.
Heydt, together with such persons as they may associate with
themselves, and their successors, are hereby constituted a body
corporate by the name of The Rockefeller Foundation, for the
purpose of receiving and maintaining a fund or funds and
applying the income and principal thereof to promote the well-
being of mankind throughout the world. It shall be within
the purposes of said corporation to use as means to that end
research, publication, the establishment and maintenance of
charitable, benevolent, religious, missionary and public educa-
tional activities, agencies and institutions, and the aid of any
such activities, agencies and institutions already established
and any other means and agencies which from time to time
shall seem expedient to its members or trustees.
2. The Corporation hereby formed shall have power to take
and hold by bequest, devise, gift, purchase or lease, either abso-
lutely or in trust for any of its purposes, any property, real or
personal, without limitation as to amount or value, except
such limitation, if any, as the legislature shall hereafter spe-
cifically impose; to convey such property, and to invest and
reinvest any principal, and deal with and expend the income
and principal of the corporation in such manner as in the judg-
ment of the trustees will best promote its objects. It shall
have all the power and be subject to all the restrictions which
now pertain by law to membership corporations created by
special law so far as the same are applicable thereto and are
not inconsistent with the provisions of this act. The persons
named in the first sectioni of this act, or a majority of them,
shall hold a meeting and organize the corporation and adopt a
constitution and by-laws not inconsistent with the constitution
and laws of this state. The constitution shall prescribe the
manner of selection of members, the number of members who
shall constitute a quorum for the transaction of business at
meetings of the corporation, the number of trustees by whom
the business and affairs of the corporation shall be managed,
the qualifications, powers, and the manner of selection of the
trustees and officers of the corporation, the manner of amend-
ing the constitution and by-laws of the corporation, and any
other provisions for the management and disposition of the
property and regulation of the affairs of the corporation which
may be deemed expedient.
3. No officer, member or employee of this corporation shall
receive or be lawfully entitled to receive any pecuniary profit
•See Page 1.
20 THE BOCKEFELLEB POUNDATIOX
from the operations thereof except reasonable compensation for
services in effecting one or more of its purposes, or as a proper
beneficiary of its strictly charitable purposes.
4. This act shall take effect immediately.
STATE OF NEW YORK, l„. B167
Office of the Secretary of State. J ^^ ' "'
I have compared the preceding with the original law on file
in this office, and do hereby certify that the same is a correct
transcript therefrom, and of the whole of said original law.
Given under my hand and seal of office of the Secretary of
State, at the City of Albany, this 21st day of May in the year
one liiousand nine hundred and thirteen.
(Signed) JOSE G. RIDGEON,
[L. S.] Second Deputy Secretary of State.
SCHEDULE B *
Constitution of The Rockefeller Foundation.
ARTICLE I.
Members.
The members of the Corporation shall consist of the persons
named in the first section of the Act to incorporate the Rocke-
feller Foundation, being Chapter 488 of the Laws of 1913 of
the State of New York, viz., John D. Rockefeller, John D.
Rockefeller, Junior, Frederick T. Gates, Harry Pratt Judson,
Simon Flexner, Starr J. Murphy, Jerome D. Greene, WicMiffe
Rose and Charles O. Heydt, together with such persons as they
may associate with themselves, and their successors.
New members whether as successors to those named in the
Act of Incorporation or otherwise, and such additional mem-
bers as they or their successors shall see fit to associate with
them, shall be elected by ballot, either at the annual meeting of
the Corporation or at a special meeting duly called for that
purpose, by vote of a majority of the members of the Corpora-
tion attending such meeting.
Any member may withdraw from the Corporation by a notice
in writing to the President or Secretary. The members shall
be at all times divided into three classes equal numerically,
as nearly as may be, and the original members shall at their
first meeting, or as soon thereafter as may be convenient, be
divided into three classes, the members of the first class to hold
their membership and office until the first annual meeting, the
members of the second class until the second annual meeting,
and the members of the third class until the third annual meet-
ing, and in every case the member shall hold office after the
expiration of his term until his successor shall be chosen. At
each annual meeting the successors to those members whose
term of office then expires shall be chosen for the term of
three years and until their successors shall be chosen. In case any
member shall by death, resignation, incapacity to act, or other-
wise, cease to be a member during his term, his successor shall
•See Page i.
THE KOOKEFEULEE FOUNDATION 21
be chosen to serve for the remainder of his term and until his
successor shall be chosen. If and when the number of mem-
bers shall be less than nine, the members remaining shall have
power to add, and shall add to their number, until the number
shall be not less than nine, but no act of the Corporation shall
be void because at the time such act shall be done the members
of the Corporation shall be less than nine.
All the powers of the Corporation shall be exercised by its
members, and they may, by general resolution, subject to the
provisions of this Constitution and the By-Laws to be adopted,
delegate to other officers or to committees of their own number
such powers as they may see fit, in addition to the powers
specified in this Constitution and in such By-Laws.
ARTICI,E II.
Quorum.
A majority of the members of the Corporation shall consti-
tute a quorum for the transaction of business at meetings of
the Corporation.
AMICtE m.
Trustees.
The number of trustees by whom the business and affairs of
the Corporation shall be managed shall be the same as the
number of members, and all of the members of the Corpora-
tion shall be its trustees, and the election of any person as a
member of the Corporation shall constitute him a trustee.
AKTICLE IV.
Officers.
The officers of the Corporation shall consist of a President,
Secretary and Treasurer, together with such other officers as
may be determined by the By-Laws. These officers shall have
the duties and exercise the powers assigned to them by this
Constitution or by the By-Laws, or by resolutions adopted
pursuant to the authority of this Constitution or the By-Laws.
At each annual meeting of the Corporation or, in default of
election at such meeting, then at an adjournment thereof, or
at any meeting duly called for that purpose, the Corporation
shall elect by ballot a President, Secretary and Treasurer, and
it may choose such other officers as the By-Laws shall from
time to time provide. All the officers, whether elected or ap-
pointed, shall hold office at the pleasure of the Corporation,
but in no case beyond the time when their respective succes-
sors shall be elected and accept office.
AKTICLE V.
President.
The President shall sustain an executive and advisory relation
to the work and policies of the Corporation similar to that
usually sustained by the chairman or president of commercial
bodies. He shall preside at all meetings of the Corporation at
which he shall be present. He shall appoint all committees
unless otherwise ordered by the Corporation. In his absence,
the members of the Corporation present shall appoint one of
their own number to preside. The President, ex-officio, shall
22 THE BOCESFELLEB FOTTSDATIOIS
be a member of all committees, except as herein otherwise pro-
vided. He shall sign for the Corporation all deeds and other
agreements and formal instruments.
In the absence or disability of the President he may by
written instrument appoint a member of the Corporation to
discharge such of his functions as he may assign to such ap-
pointees.
AStTICLE VI.
Treasurer.
The Treasurer, subject to such regulations as may from time
to time be prescribed by the Corporation, shall have the custody
of the funds and securities of the Corporation, including all
bonds, deeds and other papers and documents relating to such
property, and shall also have the disbursement of its money.
He shall keep proper books of account, and other books, show-
ing at all times the amount of funds belonging to the Corpora-
tion, which shall be at all times open to the inspection of the
members of the Corporation. At each meeting he shall present
an account showing in detail the receipts of the property be-
longing to the Corporation and of all disbursements thereof
since his last report. He shall not pay any money except in
the manner prescribed in the By-Laws, or as provided by reso-
lution of the members of the Corporation, or the authority of
the Executive Committee.
AEMCLE VII.
Secretary.
The Secretary shall conduct the correspondence of the Cor-
poration except as otherwise provided in the By-Laws or by
resolution of the_ Corporation. He shall be the medium of
communication with the Corporation. He shall be ex-officio
a member of all committees except as herein otherwise provided.
He shall give notice of and attend all meetings of the Corpora-
tion, taldng minutes of the proceedings and transcribing them
in a book provided for that purpose, and attesting the same.
Immediately upon the election and appointment of members
he shall give notice to them of their election or appointment.
He shall have the custody of the corporate seal. He shall keep
the records of all committees of which he is a member.
AKTICI,E VIII.
Meetings.
The annual meeting of the Corporation shall be held on the
Wednesday next preceding the fourth Thursday of January
in each year. At this meeting the Trustees of the Corporation
shall present a report, verified by the President and Treasurer,
or by a majority of the Trustees, showing the whole amount of
real and personal property owned by the Corporation, where
located, and where and how invested, the amount and nature
of the property acquired during the year immediately preceding
the date of the report, and the manner of the acquisition; the
amount applied, appropriated or expended during the year im-
mediately preceding such date, and the purposes, objects or
persons to and for which such applications, appropriations or
expenditures have been made, and the names and places of
residence of the persons who have been admitted to member-
XHE BOOEEFELLEB FOUKDATION 23
ship in the Corporation during such year, which report shall
be filed with the records of the Corporation and an abstract
thereof entered in the minutes of the proceedings of the annual
meeting.
In addition to the annual meeting, stated meetings of the
Corporation shall be held on the Wednesday next preceding
the fourth Thursday of May and October in each year.
All meetings shall be held at such time and place in the City
of New York, or elsewhere, as the Corporation shall from time
to time order or direct. In the absence of such direction, the
meetings shall be held at the office of the Corporation in the
City of New York.
The President or any three members of the Corporation may
call a special meeting of the Corporation by not less than five
days' written notice given by the President or the Secretary,
or the members calling such meeting.
If any member of the Corporation, other than Mr. John D.
Rockefeller, shall be absent from three consecutive stated meet-
ings, such absence, unexcused, shall ipso facto be deemed a
resignation of membership of the Corporation, and the vacancy
so caused shall be filled as herein provided. Any member of
the Corporation may by writing or telegram appoint any other
member of the Corporation to act as his proxy at any one or
more specified meetings of the Corporation.
AETICLS IX.
Committees.
The Corporation may by By-Laws provide for such commit-
tees and may delegate to such committees such powers as it
shall deem wise.
ASTICI,B X.
Amendments.
This Constitution may be altered or amended by a majority
vote of the members present at any duly_ called meeting of the
Corporation, provided that written notice has been sent to
every member of the Corporation at least ten days in advance
of the date of meeting, stating specifically the proposed amend-
ment.
SCHEDULE C *
By-Laws of The Rockefeller Foundation.
ASTICU I.
There shall be a standing committee of three members of the
Corporation who with the President and Secretary shall be
the Executive Committee. The Executive Committee shall be
elected by the Corporation at the annual meeting by ballot.
The Executive Committee ma3f fill vacancies in its own number
or in the Finance Committee in the interim of the Corporation
meetings, reporting its action to the Corporation at the next
meeting.
This Committee shall have and may exercise all the powers
*See Page i.
24 THE BOCKEFELiLBB FOUNDATION
of the Corporation when the Corporation is not in session, ex-
cept those specifically vested in the Finance Committee as
herein provided. A quorum for the transaction of business
shall consist of three members. The Committee shall elect its
Chairman and shall make such rules and regulations as, from
time to time, it may deem proper for its own government and
for the transaction of business of which it may have charge,
which are not herewith otherwise provided for. It shall direct
and control the purchase of all supplies and the audit of all
bills.
ASTICI,E n.
There shall be a Finance Committee consisting of three mem-
bers of the Corporation, to be elected by the Corporation at
the annual meeting by ballot. The President and Secretary shall
not be ex-officio members of this Committee. This Committee
shall have power to make investments and to change the same,
and may from time to time sell any part of the bonds, shares,
notes or other forms of investment held by the Corporation,
or any rights or privileges that may accrue thereon. In making
investments or changes of investments, all the members of this
Committee shall be consulted when this is reasonably practi-
cable, but the Committee shall be deemed to be in continuous
session, and may act without formal notice of meeting, and
the joint action of any two members shall be valid and bind-
ing. The Committee shall elect its Chairman and shall make
such rules and regulations as from time to time it may deem
proper for its own government and for the transaction of busi-
ness of which it may have charge. It shall keep regular minutes
of its meetings and shall make report to the members of the
Corporation of all investments and changes of investments
made by it.
AIITICI<E ni.
There shall be a Nominating Committee consisting of three
members of the Corporation, to be elected by the Corporation
each year at the October meeting by ballot. The President and
the Secretary shall not be ex-officio members of this Committee.
It shall be the duty of this Committee to make recommenda-
tions regarding members, officers and elective committees who
are to be elected at the annual meeting next ensuing, and also
regarding members or officers to be chosen to fill vacancies
which may occur during the year.
ARTICLE IV.
The Corporation at any stated meeting, or at any special
meeting called for that purpose or when the Corporation is
not m session the Executive Committee, may by resolution
appomt one or more assistant treasurers, one or more assistant
secretaries, a cashier, and such other officers as may be deemed
necessary. The same person may be appointed to hold two or
more of said offices. All such officers shall hold office at the
pleasure of the Corporation, but in no case beyond the time
when their respective successors shall be elected and accept
office, and shall have such powers and be subject to such re-
strictions as shall be set forth in the resolution appointing them.
THE EOOKBFEUiEB FOUNDATION 25
AKTICLE V.
The Treasurer shall deposit the funds of the Corporation in
such banks or trust companies as may from time to time be
designated by the Executive Committee. Such deposits of
funds shall be made subject to draft only on the signatures of
two persons, one of whom shall be the President, the Secretary
or some member of the Corporation designated by the President
or Secretary and of the Treasurer, and the other shall be the
Treasurer, or in case of his absence or disability, such member
of the Corporation as shall from time to time be designated
bx resolution of the Corporation or of the Executive Com-
mittee.
No bills shall be paid except those which have been incurred
pursuant to a resolution of the Corporation or under the au-
thority of the Executive Committee, and such bills shall be
paid only on a voucher approving the same for payment and
referring to the specific resolution or authorization pursuant
to which they were respectively incurred, which voucher shall
be signed by the President and the Secretary or such of the
assistant secretaries as shall be designated by resolution of the
Corporation or the Executive Committee, or, in the case of
the absence or disability of either the President or Secretary,
by such other member of the Corporation as such absentee shall
designate in writing for that purpose.
A current expense account of not to exceed five thousand
dollars ($5,000.) on deposit at any one time may be opened
with such depository as may be designated by the Executive
Committee, which shall be subject to draft upon the signature
of the cashier of the Corporation who shall be bonded at the
expense of the Corporation for such sum as the Executive
Committee shall fix.
The securities of the Corporation shall be deposited in some
suitable safe deposit vault. Access to the vault may be had by
the members of the Corporation, the Treasurer, the Assistant
Treasurer' and such of the assistant secretaries as shall be desig-
nated for that purpose by resolution of the Corporation or the
Executive Committee, provided that there shall always be two
of the foregoing present. Such securities may be withdrawn
from the vault only on a written order directmg the delivery
of the same to the person or persons therein specified, which
order shall be signed by two members of the Finance Commit-
tee or by one member of the Finance Committee and one other
member of the Corporation.
AKTICLE vi.
The President, Treasurer or Secretary is hereby authorized
and directed, upon the written request of any two members of
the Finance Committee, to execute under seal such form of
transfer and assignment as may be customary or necessary
to constitute a regular transfer for the delivery of such securi-
ties as and to whomsoever may be designated in such request.
Either the President or the Treasurermay execute and deliver
on behalf of the Corporation from time to time proxies on
any and all stock owned by the Corporation, appointing such
person or persons as they shall deem proper to represent and
vote the stock owned by the Corporation at any and all meet-
ings of stockholders, whether general or special, with full
power of substitution, and to alter and rescind such appoint-
ments at such time and as often as they see fit.
26 THE BOOKEFBLLEE EOUNDATION
ARTICLE VII.
Notices.
All notices required by these By-Laws, or otherwise, for the
purpose of the Corporation, shall be in writing and shall be
either personally delivered or mailed to ■ the members of the
Corporation at their addresses as entered in the office of the
Secretary of the Corporation.
AKTICLE vni;
No part of the principal of the funds of the Foundation shall
be distributed except pursuant to a resolution passed by the
affirmative vote of two-thirds of all those who shall at the time
be members of the Foundation at a special meeting held on
not less than thirty days' notice given in writing to each mem-
ber of the Foundation which shall state that the meeting is
called for the purpose of considering a resolution to authorize
the distribution of the whole or some part of the principal of
its funds.
ARTICLE IX.
Amendments.
These articles may be altered or amended by a majority vote
of the members present at any duly called meeting of the Cor-
poration, provided that written notice has been sent to every
member of the Corporation at least ten (lo) days in advance
of the date of meeting, stating specifically the proposed amend-
ment.
THE itaCKEFELLEB FOUNDATION
27
SCHEDULE D*
Securities Contributed to The Rockefeller Foundation by John
D. Rockefeller and Held by The Rockefeller Foundation
on December 1, 1914.
BONDS AND NOTES
No. of Book
Name Bonds , , Value
Amerigan-Agricultural Chem. ist Mtg Conv 500 $■■. ,505,000.00
Ashland Power Company 8 , 8,000.00
Atlanta & Birmingham Railway ist Mtg 677 609,300.00
Baltimore & Ohio RR ist Mtg 6 5,460.00
Canadian Pacific Railway ist Mtg Deb i . 2,550.00
Central Pacific 30 Yr Gtd by So Pac 2 1,780.00
Chicago & Alton RR Refunding 551 358,150.00
" " " Ry Co 1st Mtg Lien 854 452,620.00
Chicago City & Connecting Rys Coll Tr 1,305 1,109,250.00
Chicago, Burlington & Quincy Gen Mtg 1,000 . 935,000.00
Chicago & Eastern 111 RR Refdg & Imp 300 189,000.00
Chicago Milwaukee & St. P Gen Mtg Ser A 30 29,100.00
" " "" " " «C 500 515,000.00
" « « « Deb " 600 546,375.00
Chicago & No Western Ry Extension 50 47,500.00
" « " " « Skg Fund Deb . . .• 80 81,600.00
Chicago Railways Co ist Mtg 500 485,000.00
Cleve. Cin. Chic & St. L., St. L Div Coll Tr 73 65,700.00
" " « « « Gen Mtg 700 587,250.00
Cleveland Short Line ist Mtg Gtd LS&MS 500 . 475,000.00
Colorado Industrial Co Conv 2,000 1,600,000.00
Denver & Rio Grande RR 1st Consol 6 5,100.00
Erie RR Conv Series " B " 1,065 798,750.00
Euclid Heights Realty Co Bonds (Cleveland Trust Receipt
showing $456 per bond paid) 716 390,664.00
Illinois Central RR Refunding. 300 261,000.00
Interborough Rapid Transit ist 1,000 960,000.00
International Mercantile Marine Mtg & Coll Tr Gold 3,692 2,030,600.00
International Navigation Co ist Skg Fund i>305 978,750.00
Lake Erie & Western RR 2nd Mtg .' 100 100,000.00
Lake Shore & Mich So Ry 1st Mtg 926 805,620.00
« a u a a u Debenture 762 701,040.00
« « " « « " " 2,673 2,459,160.00
Long Island RR Refunding 2 1,800.00
Louisville & Nashville RR Unified 6 5.580.00
Magnolia Petroleum Company ist 3i200 3,200,000.00
Missouri, Kansas & Texas Ry Gen Skg Fnd 1,325 1,113,000.00
Missouri Pacific Ry 40 Yr Collateral 2,198 1,318,800.00
Morris & Essex 1st Mtg & Refunding 175 144,812.50
Mutual Fuel Gas Co 1st Mtg 250 250,000x30
N. Y. Central Lines Equip Tr of 1913 Gold 504 .499,158.00
New York City Corporate Stock 100 94,500.00
New York City Corporate Stock Notes 14 14,000.00
" « • Two Year Revenue Bonds 67 67,000.00
« « " Three Year Revenue Bonds 94 94.ooo.oo
Forwarded $24,901,969.50
*See Page 4, Question 6.
28
THE BOOKEFELLEB FOUNDATION
BONDS AND NOTES
Name
No. of
Bonds
Amount brought forward
New York Chicago & St. Louis ist Mtg 35
New York Chicago & St. Louis RR Deb 1,333
New York Connecting RR ist Mtg 250
Norfolk &iWestern RR ist Consol Mtg 6
Northern Pacific Ry Refunding & Imp 390
Northern Pacific Ry Prior Lien Ry and Land Grant 6
Ohio Fuel Supply Co Debenture 52
Pennsylvania RR Consolidated i
Pere Marquette RR Consol 520
Philadelphia Co Convertible Debenture 1,000
" " Gold Convertible 500
Pittsburgh Cin Chic & StL Ry Con Ser "D" 56
u u u a u u u M'lT" Eno
Rutland RR ist Consolidated 25
St. Louis & San Francisco RR Refunding 2,000
" " "_ " " New Orleans, Texas & Mexico 1st 450
Seaboard Air Line Adjustment 455
Southern Pacific Brch Ry ist 100
Sunday Creek Co Coll Trust 81
Wabash RR 2nd Mtg 117
" Detroit & Ohio Ext ist 3
" * Omaha Division ist 45
Washington Railway & Elec Cons Mtg Gold 450
Western Maryland ist i ,032
Western Pacific Ry 1st 4,039
Wheeling & Lake Erie RR Lake Erie Div ist 140
" " « " 1st Consol 434
Book
Value
$24,901,969.50
33,250.00
1,133,610.00
233.453-65
5,005.00
357.350-00
5,115.00
51,925.00
11,880.00
327,600.00
970,000.00
475,000.00
54,320.00
515,000.00
22,500.00
1,520,000.00
270,000.00
350.350.00
117,140.20
63,180.00
114,660.00
3,180.00
29,250.00
375.750.00
814,158.76
2,786,910.00
140,000.00
347,200.00
$36,029,557.11
STOCKS
Name
No. of
Shares
Book
Value
American Ship Building Co Preferred o,4S7 $ &o%M'i.oo
*-ommon 14,972 524,020.00
Atchison Topeka & Santa Fe Common 20,000 1,919,000.00
Borne-Scrymser Company 350 103,250.00
Buckeye Pipe Line Company (par $50) 49,693 7,950,880.00
Central National Bank of Cleveland 500 79,611.1c
Chehalis & Pacific Land Company 220 io,ooo.oc
Carried forward $47,511,071.54
THE BOOSEFEIjIiElB FOXJNDATIOK 29
STOCKS (Continued)
No. of Book
Name Shares Value
Amount brought forward $47,511,071.54
Chesebrough Manufacturing Co 690 462,300.00
Chicago City _& Connecting Ry Preferred
Participation certificate 17.530 1,212,856.88
Chicago City _& Connecting Ry Common
Participation certificate 10,518 315,540.00
H. B. Claflin Company Common 451 35i774-92
Cleveland Arcade Company 2,500 246,555.56
Cleveland Steel Company 2,121 212,100.00
Cleveland Trust Company 286 68,123.77
Colonial Oil Company, The 619 61,900.00
Colorado & Southern Ry Company ist Pref 7,000 378,000.00
Consolidated Gas Company 20,000 2,600,000.00
Continental Oil Company 7,000 1,330,000.00
Wm Cramp & Sons Ship & Engine Bldg Co 648 9,720.00
Crescent Pipe Line Company (par $50) 14,120 847,200.00
Cuban-American Sugar Company Pref 600 53,265.00
Cumberland Pipe Line Company 2,481 178,632.00
Erie Railroad Company ist Prrferred 36,700 1,688,200.00
Eureka Pipe Line Company 12,357 4i464.995.59
Galena Signal Oil Co Preferred 4>i93 587,024.13
Galena Signal Oil Co Common 20,842 3>959.976.i2
Great Lakes Towing Company Common 1,200 14,400.00
" " " " Preferred 1,527 135,500.05
Great Northern Railway Preferred 500 53,025.00
Indiana Pipe Line Co (Par $50) 24,845 3,108,385.28
International Agricultural Corp Preferred ii,345 340i350.oo
" « « Common 12,575 62,875.00
International Mercantile Marine Co Pfd 5.832 64,152.00
" « « "Common 16,603 49,809.00
International Paper Company Common 400 3,200.00
H. H. Kohlsaat Company 1,900 95,000.00
Manhattan Railway Company 10,000 1,287,750.00
Missouri Pacific Ry Co 2,000 52,000.00
National Lead Company Preferred .-^ 1,400 145,600.00
H^ " " " Common 73.500 3,675,000.00
New York Chicago & St. Louis Common 100 5,500.00
P^ « « « « ' 2nd Preferred 400 31,480.00
National Transit Co (Par I25) 126,481 5,185,721.00
New York Transit Co 12,392 3,717,600.00
Northern Pacific Ry Co 1,000 91,762.50
Forwarded $84,342,345.34
30
THE BOCKEFEIX.EB FOTTNDATIOK
STOCKS (Continued)
No. of Book
Name Shares Value
Amount brought forward $84,342,345.34
Northern Pipe Line Company 9,000 990,000.00
Ohio Fuel Supply Company (Par $25) 4ii54 i70i3i4.oo
Otis Steel Company Preferred 140 I2;6oo.oo
" " " Common 329 6,580.00
Pope Manufacturing Company Common 354 1,416.00
" " " Preferred 280 4,200.00
Pressed Steel Car Company Preferred 500 44,875.00
Provident Loan Certificates (Par $5000) 40 200,000.00
St. Louis & San Francisco RR 2nd Pfd 6,000 42,000.00
Seaboard Air Line Ry Preferred 4,300 232,200.00
" " " Common 3,400 71,400.00
Solar Refining Company 4i964 918:375.00
Southern Pipe Line Company 24,845 5,703,308.88
Standard Oil Company (Kansas) 4,966 11365,733.13
" (Kentucky) 7,434 1,044,547.23
," " " (Nebraska) 2,482 : 67d;i40.oo
(Ohio) 8,696 3,6521320.00
Southwest Penn Pipe Lines ; . 8,000 1,280,000.00
Superior Savings & Trust Company 300 89,350.00
Swan & Finch Company 903 l8o;6oo.oo
Tilden Iron Mining Company 1,780 48,683.46
Union Tank Line Company 24,105 1,687,350.00
U. S. Cast Iron Pipe & Foundry Co Pfd 4,987 221,644.22
"" " " " " " "Common 8,100 81,000.00
" " Rubber Company ist Preferred 300 30,369.40
" " Steel Corporation Common 200 13,000.00
Washington Oil Company If774 53,220.00
Wilson Realty Company 591 59,100.00
Woman Hotel Company 300 24,000.00
" " " (Dividend Scrip $750) $750 600.00
$103,241,271.66
Original Capital of the Foundation $100,000,000.00
Net Profits on Securities sold and redeemed. 3i9i733.77
Unexpended Income 2,921,537.89 $103,241,271.66
689>545-53
Total Funds of the Foundation December ist, 1914 $103,930,817.19
XHB BOCKBFELLEB POUNDATION 31
II.
Information Furnished By
THE ROCKEFELLER FOUNDATION
In Response to Supplementary Questionnaire Sub-
mitted by the
UNITED STATES COMMISSION ON INDUS-
TRIAL RELATIONS.
Under date of January 7, 1915.
Question!, (a) Where were the present Treas-
urer and Assistant Treasurer employed at the time
of election of Officers of the Foundation?
(b) Do they give fuU time service to the Foun-
dation? If not, what portion of their time is given
to the foundation?
Answer, (a) The present Treasurer, L, C.
Myers, was formerly office manager in the private
office of George Foster Peabody, the Treasurer
of the General Education Board, and Mr. Myers
acted as assistant treasurer of that Board. Upon
the retirement of Mr. Peabody, Mr. Myers suc-
ceded him as Treasurer of the General Education
Board, and was afterwards appointed the Treas-
urer of the Rockefeller Institute for Medical Re-
search and the Rockefeller Sanitary Commission
for the Eradication of Hookworm Disease, in
which positions he was serving at the time of his
appointment to the Treasurership of the Rocke-
feller Foundation.
The present Assistant Treasurer, L. M. Das-
hiell, was at the time of his appointment Cashier
and Office Manager in the office of Messrs. Sim-
32 THE BOCKEFEUiBB FOUNDATION
mons & Slade, Bankers and Brokers, 5 Nassau
Street, New York City.
(b) Mr. Myers is now Treasurer and Mr.
Dashiell Assistant Treasurer of the Greneral
Education Board, thie Rockefeller Institute and
the Rockefeller Foundation. Their salaries are
allocated to the respective boards on the basis of
the proportion which the income of each Board
bears to the total income of the three Boards.
Question 2. (a) Has the Foundation a complete
file of the publications issued by the International
Health Commission and its predecessor, the Sani-
tary Commission, including publicity matter fur-
nished to newspapers, Departments of Health, De-
partments of Education, etc.? If so, is this matter
in form that it may be sent to the Industrial Re-
lations Conmiission?
(b) May it be consulted at the Foundation's
office?
Answer, (a) & (b) The Foundation has complete
files of the publications issued by the Rockefeller
Sanitary Commission for the Eradication of
Hookworm Disease, and of the few publications
of the International Health Commission, and
these are available for consultation at the office
of the Rockefeller Foimdation. No other public-
ity matter has been issued by either Commission,
though much effective publicity has been given to
the work of each by state, county and local au-
thorities. (See page 103.)
Question 3. What studies has the International
Health Commission made of industrial diseases or
of sanitary conditions of different industries?
XHE BOOKBFELLEB FOUNDATION 33
Answer. The Intemational Health Cominis-
sion, since its organization, has confined its activi-
ties ahnost entirely to the eradication of hook-
worm disease in different parts of the world. It
must be mentioned, however, that the reports of
the Sanitary Commission whose work in the
Southern states has now been taken over by the
Intemational Health Commission, show that the
ravages of hookworm disease have a most im-
portant effect upon the economic efficiency of in-
fected persons.
Question 4. Who are the members of the Foun-
dation's Finance Committee?
Answer. John D. EookefeUer, Jr., Starr J. Mur-
phy and Jerome D. Greene.
Question 5. (a) Regarding applications from
various philanthropic agencies for contributions
by the Foundation, is it possible to state briefly
the Foundation's procedure in considering such
applications?
e. g. (1) What applications come to the atten-
tion of the Executive Committee?
(2) What applications come to the attention
of the full Board?
(3) What oflScer or employe of the Foundation
has authority to reject an application without
submitting it to the Executive Committee or to
the full Board?
(b) What is the nature of the record which ex-
plains the grounds on which applications are
thought not deserving consideration, or, after be-
ing considered, are rejected?
Answer, (a) The answer to this question wlU
34 THE BOOKEPELI/EB FOUNDATION
be clearer if preceded by a general statement of
the Foundation's attitude in what must still be
called, after a little more than a year of work,
the initial stage of its activities. From the outset
the members of the Foundation, having in mind
its chartered purpose "to promote the well-being
of mankind throughout the world," were agreed
that the Foundation could probably render a
more enduring service if, instead of making con-
tributions to a large number of miscellaneous ob-
jects, its funds were primarily devoted to pro-
moting the study of some of the more fundamental
human needs, with a view to adiieving results
that might not be so well accomplished by agen-
cies more limited ia scope. The members of the
Foundation have felt that a departure from this
general policy would be amply justified by the
utilization of a part of 'the funds taf the Founda-
tion to assist in meeting emergencies where the
urgency of the need appeared to render such aid
imperative. The Belgian relief necessitated by
the European War, is a case in point. The fol-
lowing activities upon which the T'oundation has
embarked will illustrate how this general princi-
ple is being applied:
The organization of the International Health
Commission for a world wide campaign against
Hookworm Disease ;
The promotion of medical education and public
health in China, a work upon which the Founda-
tion is now entering ;
The Investigation of Industrial Relations, a
field of study so vast as to require in all probabi-
lity years of study.
THE BOCKEFELLER FOUNDATION 35
During the first year of its existence the Foun-
dation has responded favorably to a limited num-
ber of applications, affirmative action upon which
seemed likely not only to meet a real need, but
also to provide experiences which it was believed
would prove illuminating and of assistance to the
Foundation in determining future policies ; e. g,, —
A pledge of $10,000 a year for ten years to the
Americaoa Academy in Rome;
A pledge of $20,000 a year for ten years to the
New York Association for Improving the Condi-
tion of the Poor, for Widows' Pensions;
The purchase of a large tract of land in Louisi-
ana as a reservation for wild fowl at a cost of
about $225,000.
(1) (2) Meetings of the full Board of the Foun-
dation are generally devoted to discussion and
determination of important matters of general
policy; action is also taken on such recommenda-
tions as are presented. Between meetings of the
Board applications are acted upon by the Execu-
tive Committee in accordance with the policies of
the Board.
(3) Applications are usually made through the
President or the Secretary of the Foimdation. In
the majority of instances, it is possible for either
officer to teU whether or not the proposition comes
within the scope of the Foundation's policies and
he acts accordingly. It is the duty of the Secre-
tary to study the data submitted with applica-
tions, to secure additional data if necessary, to
prepare recommendations and to submit them for
formal action. Matters are sometimes acted upon
36 THE BOCKEFELLEB FOUNDATION
at meetings of the Executive Committee at which
only a quorum are present. In such cases the
matters have usually been presented to and ap-
proved by members not expecting to be present.
(b) There is no formal record explaining the
grounds on which applications are thought not
deserving of consideration.
Question 6. Is it possible to tell from the Foun-
dation's records how many applications have
been received since the establishment of the Fomi-
dation in the interest of different proposals for
studying or improving labor conditions?
Answer. The records show but one such appli-
cation.
Question 7. About how many conferences had
members of the Foundation had with Mr. King
before the resolution of August thirteenth ap-
pointing him to make a comprehensive study of
Industrial Relations?
Answer. Three.
Question 8. Has the outline of the method of
work and organization for the proposed investiga-
tion mentioned in the answer to our question thir-
teen been submitted? If so, may we have a copy?
Answer. Mr. Bang has suggested in conversa-
tion with members of the Foundation the method
of work he proposes to adopt, but has not sub-
mitted a formal outline or report. Intensive study
rather than extensive investigation perhaps best
describes the character of Mr. King's work as
thus far indicated by him. He is proceeding as
a student who is carefully surveying a special
field of work, with a view to ascertaining in the
IHB BOOKBPELLBB FOUNDATION 37
first instance how far investigation of the great
problem of Industrial Eelations has been already
profitably carried out by others, and determining
as to wherein further investigation may be made
to advantage under such auspices and with such
resources as the Foundation is in a position to
provide. When Mr. King was invited to enlist
in this work, the purpose of the Foundation was
set forth in the following words in a communica-
tion to him :
* ' The problem is so vast and the difficulties are
"so largely inherent in human nature that a com-
"plete solution is not to be had in five years or in
"a generation. On the other hand, it might be
"expected that hard study for a year or two could
"yield much light on the problem and particu-
"larly on the very question whether such studies
"could be profitably pursued for a longer or an
"indefinite time under such auspices and with
"such resources as the Eockefeller Foundation
"could provide,"
To facilitate his studies, Mr. King's first step
was to retain Professor Foerster of Harvard Uni-
versity to prepare a bibliography of the literature
on the subject of Industrial Eelations as found in
the libraries of Harvard University, also a direc-
tory of societies, organizations and individuals
who have carried on or may at the present time
be carrying on research work in the field of Indus-
trial Eelations. The Author and Subject Cata-
logue prepared by Professor Foerster has over
five thousand different titles, including references
to publications in all parts of the world; the Di-
rectory, which is also in the form of a card cata-
38 THE EOCKEFELLER FOUNDATION
logue, is confined to America and has between
seven and eight hundred references. With the
literature of the subject thus indicated before him,
Mr. King has been engaged upon the preparation
of a chart of the field of Industrial Relations,
which when completed he hopes to have oppor-
tunity of discussing with informed persons of all
classes and many points of view. Having com-
pleted a preliminary survey in this way, he then
proposes to develop the work along such lines as
may from time to time appear to offer the greatest
promise of practical results.
As regards organization, just as. D,r. Foerster
was appointed to do a specific piece of work, so
Mr. King expects as time goes on occasionally to
retain expert advice and assistance, but it is not
his intention to attempt the organization of any
staff, such, for example, as exists in Government
Bureaus or Commissions. With the Exception of
the appointment of Dr. Foerster and a secretary,
Mr. King has not thus far made any request for
appointments. He has engaged temporary steno-
graphic assistance as he has required it. The
Foundation places every confidence in Mr. King's
judgment, and no attempt has been or will be
made to infiuence him in the selection of persons
whom he may wish to retain, the questions he may
wish to ask or the course he may wish to follow,
in pursuing the Work he has undertaken for the
Foundation.
Question 9. (a) Have the catalogue and biblio-
graphy which Were to be prepared by Dr. Foer-
ster by August first, been completed?
THE EOCKEFEIiliEB FOUNDATION 39
(b) Are they in form for submission to this
Commission, or to be consulted by it at the Foun-
dation's office?
Answer, (a) Yes;
(b) They are at Mr. King's residence at The
EoxboroTigh, Ottawa,^ Canada', and should the
Commission desire to consult them, Mr. King will
gladly either bring the catalogue and bibliography
in whole or in part to New York or place them at
the disposal of such officers as the Commission
may desire to have consult them in Ottawa.
Question 10. (a) Before deciding to engage Mr.
King, what study did the Foundation make of lit-
erature concerning Industrial Relations?
(b) What examination was made of the work
then in progress or planned by State and Na-
tional Bureaus and Commissions?
(c) With whom besides Mr. King did it con-
sult regarding its plan for study?
Answer, (a) & (b) None. Mr. King's services
were enlisted, amongst other reasons, with the
very thought in mind that he could make just such
preliminary surveys as are here implied.
(c) While members of the Foundation talked
informally with personal friends coneeming a
suitable person to make a study of Industrial Ee-
lations, there were no consultations with anyone
other than Mr. King regarding a plan of study.
Question 11. (a) Referring to your answer to
our question fourteen, how many formal interim
reports have been made by Mr. King since Oc-
tober first?
(b) What formal reports of progress, if any,
have been called for?
40 THE BOCKEFELIiEB rOUNDAHON
Answer, (a) There have been no formal interim
reports made by Mr. King.
(b) Formal reports of progress have not been
called for. These questions are perhaps best an-
swered by the answer to Question 8.
Question 12. (a) How large a staff has Mr.
King at the present time?
(b) Please indicate how many and which are
experienced investigators and how many cleri-
cal?
Answer, (a) & (b) These questions also are
best answered by the answer to Question 8.
Question 13. Will you summarize the previous
experience of Mr. King in dealing with labor prob-
lems, to which at two or three points in your let-
ter, e. g. answer to question fourteen, you refer?
Answer. A summary of Mr. King's experience
in dealing with labor problems is attached to this
reply. (See Exhibit "A," page 50, et seq.)
Question 14. (a) Were notices sent to all mem-
bers of the Foundation, before the meeting of Au-
gust thirteenth, stating the purpose to consider
the engagement of Mr. King for the study of In-
dustrial Relations?
(b) How far in advance of the meeting were
such notices sent?
(c) How many and which members of the
Foundation were present at the meeting of Au-
gust thirteenth?
Answer, (a), (b) & (c) The meeting of August 13,
1914, was a meeting of the Executive Committee,
notice of which was sent by the Secretary to all
members on July 30, 1914. No formal statement
THE EOOKEPELLEB FOUNDATION 41
of the purpose of the meeting -was made, but all
the members were familiar with the project xmder
consideration. The folio-wing members were pres-
ent: John D. Rockefeller, Jr., Simon Flexner,
CJharles O. Heydt and Jerome D. Greene, mem-
bers of the Executive Committee, and Wickliffe
Bose, a member of the Foundation, by invitation.
These constituted the Executive Committee, ex-
cept Starr J. Murphy, who was absent on his
summer vacation.
Question 15. (a) What is the Foundation's pro-
cedure in considering reports of investigators and
in examining responsibility for such reports, i. e.,
is a separate copy sent to each member?
(b) Is written confirmation, or suggestion, or
criticism invited? received?
(c) Are reports submitted to any persons not
members of the Foundation?
(d) Has any procedure been decided upon with
reference to the final consideration of Mr. King's
report?
Answer, (a) (b) & (c) During the very short
period of the Foundation's existence it has not set
on foot many investigations such as the question
seems to refer to, nor has it adopted any pro-
cedure in considering reports. Before imdertak-
ing so important a work as medical education in
China, the Foundation appointed a Commission
of three persons who were sent to China and spent
about four months in that country. Upon its re-
turn the Commission took a month for the prep-
aration of a very full and comprehensive report,
copies of which were printed and sent to the mem-
42 THB BOCKEFEIiL.EB FOXTITDATION
bers of the Foundation. In the case of the hook-
worm work in foreign cotintries, the Director-
General, Mr. Wickliffe Eose, was sent around the
world, to visit the countries where the greatest in-
fection was known to exist. Upon his return he
presented written recommendations for the inau-
guration of work in certain countries, reported
orally upon his observations and experiences dur-
ing the journey, and filed with the Secretary his
detailed notes in such form as to be available for
reference by members of the Foundation. In any
case where it might seem desirable to get outside
expert opinion on a report made to the Founda-
tion, such an opinion would undoubtedly be
sought, as was the case with the report on medical
work in China, which was shown to a number of
persons interested in China whose opinions were
considered valuable. In aU such cases of refer-
ence to competent critics, the freest comment is
invited, but no form, either written or oral, has
been prescribed for the commimication of such
comment.
(d) No procedure has been decided upon with
reference to the final consideration of Mr. King's
report.
Question 16. (a) Regarding the Committee of
Leading Economists and Business Men, mentioned
in your answer to our question twenty, may we
know the names, when appointed, the number of
meetings held, the number of meetings attended
by each member, the number and name of investi-
gators, whether interim reports were sent to each
Committee member, and how long in advance of
the meeting at which it was first considered?
THE BOCKEFELX.EB FOUNDATION 43
(b) May we have a copy of any plans that were
adopted in advance of the study and of the final
report, or interim reports, which had been ren-
dered at the time the Industrial disturbances in
Colorado caused the President of the Foundation
to urge the present far-reaching study of Indus-
trial Relations?
Answer, (a) The question as to the desirabil-
ity of establishing an institute or bureau for the
study of economic questions had been informally
discussed among members of the Foundation, both
before and after its establishment. Personal con-
ferences were also had with the following individ-
uals: Dean Edwin F. Gay of Harvard Univer-
sity, Professor J. Laurence Laughlin of the Uni-
versity of Chicago, Mr. John Keren, President
of the American Statistical Association, Presi-
dent Charles W. Eliot, and Professor Wesley C.
Mitchell of Columbia University. Authority to
hold these personal conferences was given by a
vote of the Foundation of October 22, 1913, di-
recting the Secretary "to invite suggestions as
to the desirability of establishing an organiza^
tion for the study of important social and eco-
nomic questions vitally affecting the welfare of
society at the present time." The result of these
conferences, all of which were favorable to the
establishment of some sort of agency for the scien-
tific investigation of economic subjects, was re-
ported to the Executive Committee at the meet-
ing of December 20, 1913, and it was understood
that further conferences would be held. Acting
upon this authority, the following gentlemen were
44 THE BOOKEFmJUEB, FOtrNDAnOK
invited to a conference at the office of the Founda-
tion on March 18, 1914: Dean Edwin F. Gay of
Harvard University, Professor J. Lanrence
Laughlin of the University of Chicago, Professor
J. B. Clark of Columbia University, Professor
Henry C. Emery of Yale University, and Pro-
fessor "W. C. Mitchell of Columbia University.
Messrs. John D. Eockefeller, Jr., Frederick T.
Gates and Jerome I). Greene represented the
Foundation at this conference. The opinion of
the economists present was that there were fields
of inquiry on economic subjects, such, for exam-
ple, as would require the accumulation of a large
body of statistics or the extension of research in
different parts of the world, which a private
agency, adequately supported for as many years
as might prove necessary, could undertake ad-
vantageously. Acting upon this advice, the Ex-
ecutive Committee of the Foundation, in session
immediately after the conference, authorized by
resolution the appointment of Messrs. Edwin F.
Gay (Chairman), J. Laurence Laughlin, Thomas
W. Page, Victor Morawetz and Harry A. Wheeler,
as a Committee "to consider further the desira-
bility of establishing an Institute for Economic
Research, to make a selection of such problems of
economic importance as would in their judgment
be advantageously studied through such an
agency, to recommend a method of organization,
and to present an estimate of the approximate
cost of initiating and carrying on the work to be
first proposed." This Conomittee reported, un-
der date of August 4, 1914, unanimously recom-
mending that studies be initiated and be carried
THE BOOKBFELLEB FOUNDATION 45
on for a year in some chosen field, with a view to
discovering whether snoh studies, if continued
and adequately maintained, would offer a suffi-
cient prospect of fruitful results to justify the
establishment of a more permanent bureau or in-
stitute. Four of the Committee recommended the
subject of prices as lying at the threshold of a
great many important economic problems, while
the fifth recommended a more limited and con-
crete problem, such as profit sharing. The Com-
mittee, having been asked merely for advice as
to the desirability of an agency for research and
the best way of demonstrating both the need and
the way of meeting it, did not feel called upon,
and indeed were not asked, to make any research
themselves. Consequently, there was no occasion
for the Committee to do more than hold two meet-
ings and to confer among themselves by corre-
spondence, in formulating the report which was
submitted under date of August 4, 1914. The re-
port came up for consideration at the stated meet-
ing of the Rockefeller Foundation on October 21,
1914. After a discussion in which the advantages
of a separate organization for economic research
and the possible objections thereto were consid-
ered at length, the opinion prevailed that no ac-
tion should be taken at present, especially in view
of the fact that since the question of establishing
an Institute for Economic Eesearch had been un-
der consideration, an Investigation of Industrial
Relations had been instituted under the direction
of Mr. W. L. Mackenzie King.
(b) It will be apparent from the answer to part
(a) of this question that no written plans or re-
46 THB BOOKEFELIjBB foundahon
ports had been rendered at the time referred to in
part (b) of tills question.
Question 17. (a) Regarding your answer to
our question twenty-one, when did Mr. King
actively begin work?
(b) Have questions formulated by Mr. King
yet been submitted to the Foundation or its Ex-
ecutive Committee?
(c) Does your statement that the question of
an outline has been left to Mr. King to decide,
mean that the Foundation does not yet know in
outline, or specifically, the questions to be asked
by Mr. King?
Answer, (a) October 1, 1914.
(b) This is answered by the answer to Ques-
tion 8.
(c) This also is best answered by the answer
to Question 8.
Question 18. (a) What procedure is followed
when engaging investigators to assist Mr. King?
e. g. Does Mr. King employ directly without de-
scribing qualifications to the Foundation?
(b) Have minimum experience qualifications
been formulated by the Foundation?
(c) If there are certain questions asked regard-
ing all who are considered for investigators, may
we see copies of questions which call for evidence
of special ability to conduct investigations in this
field?
Answer, (a) This question is perhaps best an-
swered by referring to the procedure adopted in
the appointment of Dr. Foerster. Mr. King made
XHE BOOKEFELLEB FOUNDATION 47
his own selection of the person whom he desired
to have prepare the bibliography, and after esti-
mating the time and assistance required for the
work, made his recommendation, with reasons
therefor, to the Secretary of the Executive Com-
mittee, who submitted Mr. King's recommenda-
tion to the Committee for approval.
(b) No.
(c) There are no such questions.
These questions are perhaps best answered by
the answer to Question 8.
Question 19. Will it be possible to secure in
time for the Hearings, if not in advance, a state-
ment showing how it is planned to draw upon
world experience in adjusting Industrial Rela-
tions, and what steps have already been taken to
study the experience of other countries?
Answer. As intimated in the answer to Ques-
tion 29 of the first Questionnaire and Question 8
of this Questionnaire, plans of a formal nature
have not been prepared by Mr. King, who intends
to proceed along such lines of inquiry in any part
of the world as may from time to time appear to
offer the greatest promise of practical results.
Question 20. (a) How many meetings of the
Foundation have been held since its establish-
ment?
(b) How many meetings have been attended by
each of its members?
Answer, (a) There have been eight meetings
of the Foundation and twenty meetings of the
Executive Committee.
(b) The attendance of individual members is
recorded in Exhibit "B." (See page 54.)
48 THE BOOKEFELLEB FOUNDATION
Question 21. What, if any, members or officers
of the Foundation, receive compensation from the
Foundation?
Answer. The Secretary, the Treasurer and the
Assistant Treasurer.
Question 22. If the Annual Report is to be
ready for the Annual Meeting of the Foundation
on the Wednesday preceding the fourth Thursday
in January, will it be possible to submit to this
Commission by January eighteenth, or earlier, a
copy of this Annual Report?
Answer. A draft of the annual report is now
being prepared for submission to the annual meet-
ing of the Foundation, but is subject to modifica-
tion by this meeting. Upon its adoption the Foun-
dation will be happy to forward a copy to the
Commission.
Question 23. Who are the Nominating Com-
mittee?
Answer. Harry Pratt Judson, Frederick T.
Gates and Starr J. Murphy.
Question 24. Can you easily place in our hands
three copies of the two chapters of Mr. Rocke-
feller's Autobiography which have to do with
principles underlying the Foundation established
by Mr. Rockefeller?
Answer. Three copies of the book referred to
are herewith presented to the Commission. (Ex-
hibit "C." See page 55, et seq.)
Question 25. Regarding the various applica-
tions for National and State Charters for the
Rockefeller Foundation, will you send us:
(a) Copies of the various successive applica-
tions and amendments?
THE BOCKEFELLEB FOUNDATION 49
(b) Memoranda explaining the purpose of the
proposed Foundation, as submitted to the Com-
mittee of Congress?
(c) Such publicity matter as was issued in the
interest of the Foundation, suggesting the pur-
poses it would serve, methods it would use, etc.?
Answer. The following material, consisting
largely of file copies, is open to inspection at the
ofiSce of the Foundation.
(a) The various drafts of bills and committee
reports in connection with the application of the
EockefeUer Foundation for a Federal Charter.
(See page 96, et seq.)
(b) & (c) Information and statements given
publicity in connection with the application for a
Federal Charter. (See page 87, et seq.)
Question 26. Please furnish copies of any bul-
letin, statements or notices issued to the Press by
the Foundation.
Answer. A complete list of statements issued to
the Press is furnished herewith. (See Exhibit
"B," page 73, et seq.)
50 THB BOOKBFKUiBB FOUNDATION
EXHIBIT A.
Summary of Mr. King's Experience With Labor
Problems.
I. Academic Record.
1895. Honor graduate in Political Science of the University
of Toronto. Study of labor problems begun while an under-
graduate.
1896-7. Fellow in Political Economy, University of Chicago,
resident at Hull House Social Settlement Articles published
in the Journal of Political Economy: (i) Outline of the His-
tory of Trade Union Organization in the United States; (2)
The International Typographical Union: A Study in Trade
Unionism.
1896. Author of series of special articles in Toronto "Mail
and Empire" on the sweating system, the housing of the work-
ing classes, the growth of slums, foreign colonies in cities, etc.
1898-1900. Townsend Scholar and Henry Lee Memorial Fellow
in Political Economy, Harvard University. Labor problems
special field of study, as post-graduate student, and for degree
of Ph.D.
1897-8. Prepared report for Postmaster General of Canada
on methods of carrying out Government clothing contracts in
Canada and the sweating system. This report became the basis
of the Fair Wages policy subsequently adopted by the Govern-
ment of Canada.
1898. Report prepared for the Consumers' League of Boston,
Mass., for presentation to the Legislature, on the condition of
working women in shops and stores in Boston and Cambridge,
Mass.
1899-1900. Abroad, in Europe, as Travelling Fellow of Har-
vard University, studying labor problems. While in London,
resident at Passmore Edwards Settlement.
Also commissioned by the Canadian Government to report
on methods adopted by European Governments in carrying
out of Government contracts, with a view to preventing sub-
contracting and sweating.
August, 1900. Offered the position of organizing a Depart-
ment of Labor as a new department of the Federal Gk>vem-
ment of Canada, under Sir William Mulock, the Postmaster
General of Canada.
II. Official Record in connection with the Department of
Labour, Canada.
October, 1900. Appointed Deputy Minister of Labour for
Canada — a position corresponding to that of Commissioner of
Labor in the United States. This position was held from 1900
to 190S. It was as Deputy Minister of Labour that Mr. King
organized the different branches of work now carried on by
the Federal Department, including its statistical, conciliation,
fair wages, library, and other branches; also prepared, or
supervised the preparation of, annual and special reports on
labor matters; and acted as Government conciliator in several
of the largest industrial disputes arising in Canada during that
time; also, while in this position, he drafted much of the legis-
lation on labor matters enacted by the Parliament of Canada.
1900. Appointed Editor of the "Labour Gazette," a monthly
journal issued by the Department of Labor, corresponding to
the "Labour Gazette" issued by the Board of Trade in England,
and somewhat similar to the "Bulletin of Labor" in the United
States. This position held until September, 1908.
THE BOCKBFEIiLEB FOUNDATION
51
1900-08. Acted successfully as conciliator and mediator repre-
senting the Government of Canada in the following strikes:
Year. Locality.
1900 Valleyfield
Oshawa
1901 Dundas
Grand Mere
Valleyfield
Rossland
South Wellington
Montreal
Toronto
Province.
Quebec
Ontario
Ontario
Quebec
Quebec
British Columbia
British Columbia
Quebec
Ontario
1902 Toronto Ontario
Berlin Ontario
Halifax Nova Scotia
Port Burwell Ontario
Winnipeg Manitoba
Louisville Quebec
Ste. Hsradnthe Quebec
Femie Briti^ Columbia
CoUingwood Ontario
Milltown New Brunswick
Vancouver B. C, and Western Div.
of the Canadian Pacific Railway.
Valleyfield Quebec
Hawkesbury Ontario
Grand Trunk Railway System
Calgary Alberta
Montreal Quebec
Winnipeg Manitoba
Sherkston Ontario
Sydney Nova Scotia
1903
1904
190S
igo6
1907
Cornwall
Nanaimo
Stratford
Calgary
Calgary
Lethbridge
Toronto
Fernie
Ontario
British Columbia
Ontario
Alberta
Alberta
Alberta
Ontario
British Columbia
Industry and Employees Involved.
Cotton mill employees. (Militia
called out during strike.)
Coremakers
Machinists.
Pulp company employees.
Cotton mill employees.
Metalliferous miners.
Coal miners.
Employees of cigar manufactories.
(Ten factories.)
Employees of piano makers.
(Five firms.)
Foundry employees in stove
mounting trade.
Furniture factory employees.
Employees of nine steamship companies,
longshoremen and others.
Wharf builders.
Railway employees.
Saw-mill employees.
Railway employees.
Coal mining employees.
Shipbuilding employees.
Cotton mill employees.
Railway employees.
Cotton mill employees^
Lumber mill employees.
Maintenance-of-way employees.
Building trades employees.
Boot and shoe employees.
Building trades employees.
Lime and stone quarry employees.
Employees of iron and steel company.
(Militia called out during strike.)
Street railway employees.
Coal mining employees.
Machinists.
Building trade employees.
Leather workers.
Coal mining employees.
Telephone operators.
Coal mining employees.
March, 1907. Canadian Parliament enacted the Industrial Dis-
putes Investigation Act. This Act was drafted by Mr. King
and was based, in part, on experience gained in active inter-
vention in above disputes.
Mar. 07 to Sep. 08. Registrar of Boards of Conciliation and
Investigation under the Industrial Disputes Investigation Act.
1902-1908. Served on following Royal Commissions in capac-
ity indicated ;
1902-3 — Secretary of Royal Commission appointed by the Gov-
ernment of Canada to inquire into industrial disputes in the
Province of British Columbia.
ipo7 — Chairman of Royal Commission appointed by the Gov-
ernment of Canada to inquire into condition of telephone opera-
tives. Other commissioner: Mr. Justice Winchester, Toronto.
52 THE BOOKEFBLLEB FOUNDATION
This Commission's work resulted in important changes in condi-
tions of labor of telephone operatives. .
ipo7 — Appointed Royal Commissioner by the Government oi
Canada to inquire into anti-Asiatic riots in Province of British
Columbia. Also appointed Commissioner to assess and pay
losses to Japanese residents in British Columbia and to assess
and pay losses to Chinese residents in British Columbia, aris-
ing out of said riots.
ipo7 — Appointed by the Government of Canada Royal Com-
missioner to inquire into methods by which Oriental laborers
had been induced to come to Canada from India, China and
Japan.
1908 — Appointed by the Government of Canada Royal Com-
missioner to inquire into conditions of cotton operatives in cot-
ton mills of Province of Quebec. This inquiry resulted in en-
actment of stricter legislation in Quebec regarding employ-
ment of children in factories.
1905-08. Special inquiries and important missions dealing with
conditions affecting labor and resulting in important legisla-
tion.
1905 — Conducted special investigation into fraudulent prac-
tices to induce men to come to Canada from England to take
place of others on strike. This investigation resulted in the
enactment of legislation drafted by Mr. King respecting false
representations to induce or to deter immigration, enacted July
20, 1905.
1905 — Special inquiry into methods by which Italian laborers
were induced to come to Canada, and fraudulent practices of
emplo3fment agencies.
1906— Special mission, to England as the representative of the
Government of Canada to confer with members of the British
Government respecting the enactment of legislation by the
British Parliament to prevent fraudulent representations being
made in Great Britain to induce immigration to Canada. The
result of this mission was the enactment of legislation along
the lines desired, which appears as part of the; Merchants' Ship-
ping Act, 1906 (6 Edw. VII, Chap. 48).
1907 — Conducted investigations, and prepared report for Gov-
ernment of Canada, into need for suppression of opium traffic
in Canada. _ Drafted legislation which was subsequently enacted
by the Parliament of Canada.
1908 — Special mission to England as representative of the
Government of Canada to confer with members of the British
Government on the subject of immigration to Canada from
India, and to negotiate an agreement with the British and
Indian Governments with respect to the same. An arrangement
restricting immigration from India to Canada effected.
1908 — ^Appointed by Government of Great Britain one of the
British members of the International Opium Commission,
which met at Shanghai, China. While going to China to serve
on this Commission. Mr. King was entrusted with a further
mission by the Government of Canada to the Government of
India respecting immigration between that country and Canada;
also with a special mission to the Government of China restrict-
ing immigration from China to Canada.
1900-1908. During this period, Mr. King attended different
conventions of Association of Officials of Bureaus of Labor
Statistics of America, and was for a time one of the Vice-
Presidents of this Association.
THE EOOKEPELLEB FOUNDATION 53
III. Parliamentary Record.
Sept., 1909. Elected a Member of the Parliament of Canada.
June, 1909. Department of Labour, Canada, created as a
separate Portfolio in the Ministry, and Mr. King appointed a
member of the Privy_ Council of Canada, and Minister of Labour
in the Cabinet of Sir Wilfred Laurier — a position correspond-
ing to that of Secretary of Labor in the United States.
1909. Introduced in the Canadian House of Commons amend-
ments to the Industrial Disputes Investigation Act, shown by
experience to be desirable. Amendments enacted by Canadian
Parliament.
1909-10. Appointed Chairman of Special Committee of the
House of Commons to investigate the Eight-Hour Day.
Supported in Parliament on behalf of the Government, as
Minister of Labour, a bill introduced by Mr. Alphonse Ver-
ville, President of the Dominion Trades and Labour Congress,
respecting the Hours of Labour on Public Works. Bill passed
by House of Commons.
1910. Introduced in Parliament an Act to provide for the
investigation of combines, trusts, monopolies, mergers. This
legislation viras drafted by Mr. King and introduced by him in
the House of Commons January, 1910, it was enacted May 4,
igio, and has been in force since, and is known as the Com-
bines Investigation Act.
1910. Advocated in Parliament and as Minister of Labour
secured the appointment of a Royal Commission on Industrial
Training and Technical Education, and outlined the scope and
work of this Commission. Commission was vested with au-
thority to study conditions in the United States, Great Britain,
France, Germany, and other countries. Its comprehensive re-
port is a most important contribution to this subject.
1910. As Minister of Labour, instituted an inquiry into prices
in Canada.
1910. Appointed Chairman of Committee of House of Com-
mons on Proportional Representation.
1910. While Minister of Labour, personally intervened to
settle strike between Grand Trunk Railway Company and em-
ployees. (Mr. Garretson, one of the members of the United
States Commission on Industrial Relations, present represent-
ing Brotherhood of Railroad Conductors in negotiations regard-
ing settlement.)
1910. Represented Government of Canada at following in-
ternational conferences in Europe: (i) Conference on Tech-
nical Education, Brussels, Belgium; (2) Conference on Unem-
ployment, Paris, France; (3) Meeting of International Associa-
tion for Labor Legislation, Lugano, Italy.
191 1. Introduced in Parliament a Bill to prohibit importa-
tion and use of opium and other habit-forming drugs, which
measure was enacted by Parliament.
191 1. Introduced in Parliament a Bill to prohibit the manu-
facture and importation of matches made with white phos-
phorus. This measure passed the House of Commons, but did
not succeed in passing die Senate, owing to dissolution of Par-
liament at reciprocity election. The same Bill, however, was re-
introduced by Mr. King's successor, the present Minister of
Labour, at a subsequent session, and enacted. This measure
followed an important investigation under Mr. King's direction
into the spread of phosphorus necrosis (phossy jaw) in Canada.
1912. Visited England, on official invitation of British Gov-
ernment through the Right Honorable Sydney Buxton, Presi-
dent of the Board of Trade in British Cabinet, to confer re-
specting industrial problems and legislation.
54
THE BOCKBFBUiEB FOUNDATION
EXHIBIT B.
Attendance of Individual Members at Meetings of
The Rockefeller Foundation.
^
1—1
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Date.
Mtgs.
May 22, 1913
Board
A
P
p
P
P
P
P
p
P
8 I
June 18,
Ex.
P
P
P
p
P
5
une 27,
Board
A
P
A
P
P
A
P
A
P
5 4
July I,
Ex.
(P)
A
P
P
A
P
3 2
Aug. 15.
Ex.
P
A
A
P
P
3 2
Oct. 33,
Board
A
P
A
A
P
P
P
P
P
6 3
Dec. 2,
Ex.
P
A
P
A
P
3 2
Dec. 5,
Ex.
(P)
P
P
P
P
P
5
Dec. 19.
Ex.
(P)
(P)
P
P
P
P
P
5
Jan. 21,1914
Board
A
P
P
P
P
A
P
P
P
7 2
Jan. 29,
Feb. 13,
Ex.
P
P
P
A
P
4 I
Ex.
(P)
(P)
P
P
P
A
P
4 I
Feb. 16,
Ex.
P
A
P
A
P
3 2
Feb. 24,
Ex.
P
A
P
A
P
3 2
Mar. 18,
Board
A
P
Ax
A
A
P
Ax
Ax
P
P
4 6
Mar. 18,
Ex.
P
A
A
P
P
3 2
Apr. 16,
Ex.
(P)
P
P
P
A
P
4 I
May 27,
Board
A
P
A
A
P
P
P
P
P
A
P
7 4
July I,
Ex.
A
P
P
A
P
3 2
Aug. 13.
Ex.
(P)
P
P
A
P
P
4 1
Sep. 25,
Ex.
(P)
P
P
P
P
P
5
Oct. 21,
Board
A
P
P
P
P
P
P
P
P
P
P
10 I
Oct. 21,
Ex.
P
P
P
P
P
5
Nov. 5.
Board
A
P
P
P
P
P
P
P
P
P
P
10 I
Nov. 30,
Ex.
(P)
P
P
P
P
P
5
Dec. 3.
Ex.
P
A
P
P
A
3 2
Dec. II,
Ex.
1
P
P
P
P
P
,S
Tan. 4.1915
Ex.
1 1
P
A
P
A
P
3 2
Present
Board
8
4
,S
3
3
8
5
7
i.
> 8
Absent
Board
8
4
3
I
3
I
a
Present
Ex.
(6)
(0
(3)
18
13
17
I]
19
Absent
Ex.
2
7
3
c
> I
X Represented by proxy.
( ) Present by invitation.
THE BOOKBFEOiLBB FOUNDATION 56
EXHIBIT C.
From
"RANDOM REMINISCENCES OF MEN AND
EVENTS"
by John D. Rockefeller.
(Doubleday, Page & Company — 1909.)
(Copyright 1908-1909 by Doubleday, Page & Company.)
Chapter VI.— The Difficult Art of Giving.
It is, no doubt, easy to write platitudes and generalities about
the joys of giving, and the duty that one owes to one's fellow
men, and to put together again all the familiar phrases that
have served for generations whenever the subject has been
taken up.
I can hardly hope to succeed in starting any new interest in
this great subject when gifted writers have so often failed.
Yet I confess I find much more interest in it at this time than
in rambling on, as I have been doing, about the affairs of busi-
ness and trade. It is most difiScult, however, to dwell upon a
very practical and businesslike side of benefactions generally,
without seeming to ignore, or at least to fail to appreciate fully,
the spirit of giving which has its source in the heart, and which,
of course, makes it all worth while.
In this country we have come to the period .when we can
well afford to ask the ablest men to devote more of their time,
thought, and money to the public well-being. I am not so
presumptuous as to attempt to define exactly what lliis better-
ment work should consist of. Every man will do that for him-
self, and his own conclusion will be final for himself. It is
well, I think, that no narrow or preconceived plan should be set
down as the best
I am sure it is a mistake to assume that the possession of
money in great abundance necessarily brings happiness. The
very rich are just like all the rest of us ; and if they get pleasure
from the possession of money, it comes from their ability to
do things which give satisfaction to someone besides them-
selves.
LIMITATIONS OF THE RICH
The mere expenditure of money for things, so I am told by
those who profess to know, soon palls upon one. The novelty
of being able to purchase anything one wants soon passes,
because what people most seek cannot be bought with money.
These rich men we read about in the newspapers cannot get
personal returns beyond a well-defined limit for their ex-
penditure. They cannot gratify the pleasures of the palate
beyond very moderate botmds, since they cannot purchase a
good digestion; they cannot lavish very much money on fine
56 THE EOOKEFELliBR FOUNDATION
raiment for themselves or their families without suffering from
public ridicule; and in their homes they cannot go much beyond
the comforts of the less wealthy without involving them in
more pain than pleasure. As I study wealthy men,_ I can see
but one way in which they can secure a real equivalent for
money spent, and that is to cultivate a taste for giving where the
money may produce an effect which will be a lasting gratifica-
tion.
A man of business may often most properly consider that
he does his share in building up a property which gives steady
work for few or many people; and his contribution consists
in giving to his employees good working conditions, new op-
portunities, and a strong stimulus to good work. Just so long
as he has the welfare of his employees in his mind and follows
his convictions, no one can help _ honouring such a man. It
would be the narrowest sort of view to take, and I think the
meanest, to consider that good works consist chiefly in the out-
right giving of money.
THE BEST PHIIvANTHROPY
The best philanthropy, the help that does the most good and
the least harm, the help that nourishes civilization at its very
root, that most widely disseminates health, righteousness, and
happiness, is not what is usually called charity. It is, in my
judgment, the investment of effort or time or money, carefully
considered with relation to the power of emplojring people at a
remunerative wage, to expand and develop the resources at
hand, and to give opportunity for progress and healthful labour
where it did not exist before. No mere money-giving is com-
parable to this in its lasting and beneficial results.
If, as I am accustomed to think, this statement is a correct
one, how vast indeed is the philanthropic field! It may be
urged that the daily vocation of life is one thing, and the work
of philanthropy quite another. I have no sympathy with this
notion. The man who plans to do all his giving on Sunday is
a poor prop for the institutions of the country.
The excuse for referring so often to the busy man of affairs
is that his help is most needed. I know of men who have fol-
lowed out this large plan of developing work not as a temporary
matter, but as a permanent principle. These men have taken
up doubtful enterprises and carried them through to success
often at great risk, and in the face of great scepticism, not as
a matter only of personal profit, but in tibie larger spirit of gen-
eral uplift.
DISINTERESTED SERVICE THE ROAD TO SUCCESS
If I were to give advice to a young man starting out in life,
I should say to him: If you aim for a large, broad-gauged
success, do not begin your business career, whether you sell
your labour or are an independent producer, with the idea of
getting from the world by hook or crook all you can. In the
choice of your profession or your business employment, let
your first thought be : Where can I fit in so that I may be most
effective in the work of the world? Where can I lend a hand
in a way most effectively to advance the general interests?
Enter life in such a spirit, choose your vocation in that way,
and you have taken the first step on the highest road to a large
success. Investigation will show that the great fortunes which
THE BOOKEFEIiiBB FOUNDAIION 57
have been made in this country, and the same is probably true
ot omer lands, have come to men who have performed great
and far-reaching economic services— men who, with great faith
m the future of their country, have done most for the develop-
ment of Its resources. The man will be most successful who
confers the greatest service on the world. Commercial enter-
prises that are needed by the public will pay. Commercial enter-
prises that are not needed fail, and ought to fail.
On the other hand, the one thing which such a business
philosopher would be most careful to avoid in his investments
of time and effort or money, is the unnecessary duplication of
existing industries. He would regard all money spent in in-
creasing needless competition as wasted, and worse. The man
who puts up a second factory when the factory in existence
will supply the public demand adequately and cheaply is wasting
the national wealth and destroying the national prosperity,
taking the bread from the labourer and unnecessarily introduc-
ing heartache and misery into the world.
Probably the greatest single obstacle to the progress and
happiness of the American people lies in the willingness of so
many men to invest their time and money in multipl3dng com-
petitive industries instead of opening up new fields, and putting
their money into lines of industry and development that are
needed. It requires a better type of mind to seek out and to
support or to create the new than to follow the worn paths
of accepted success; but here is the great chance in our still
rapidly developing country. The penalty of a selfish attempt to
make the world confer a living without contributing to the
progress or happiness of mankind is generally a failure to the
individual. The pity is that when he goes down he inflicts
heartache and misery also on others who are in no way re-
sponsible.
THE GENEROSITY OF SERVICE ,
Probably the most generous people in the world are the very
poor, who assume each other's burdens in the crises which come
so often to the hard pressed. The mother in the tenement
falls ill and the neighbour in the next room assumes her burdens.
The father loses his work, and neighbours supply food to his
children from their own scanty store. How often one hears
6f cases where the orphans are taken over and brought up by
the poor friend whose benefaction means great additional hard-
ship I This sort of genuine service makes the most princely
gift from superabundance look insignificant indeed. The Jews
have had for centuries a precept that one-tenth of a man's pos-
sessions must be devoted to good works, but even this measure
of giving is but a rough yardstick to go by. To give a tenth
of one's income is wellnigh an impossibility to some, while to
others it means a miserable pittance. If the spirit is there, the
matter of proportion is soon lost sight of. It is only the
spirit of giving that counts, and the very poor give_ without
any self-consciousness. But I fear that I am dealing with
generalities again.
The education of children in my early days may have been
straightlaced, yet I have always been thankful that the custom
was quite general to teach young people to give systematically
of money that they themselves had earned. It is a good thing
to lead children to realize early the importance of their obliga-
58 THE BOCKEFEIiiEE FOUNDAHON
tions to others but, I confess, it is increasingly difficult; for
what were luxuries then have become commonplaces now. It
should be a greater pleasure and satisfaction to give money for
a good cause than to earn it, and I have always indulged the
hope that during my life I should be able to help establish
efficiency in giving so that wealth may be of greater use to the
present and future generations.
Perhaps just here lies the difference between the gifts of
money and of service. The poor meet promptly the misfortunes
which confront the home circle and household of the neighbour.
The giver of money, if his contribution is to be valuable, must
add service in the way of study, and he must help to attack
and improve underlying conditions. Not being so pressed by
the racking necessities, it is he that should be better able to
attack the subject from a more scientific standpoint; but the
final analysis is the same : his money is a feeble offering without
the study behind it which will make its expenditure effective.
Great hospitals conducted by noble and unselfish men and
women are doing wonderful work; but no less important are
the achievements in research that reveal hitherto unknown facts
about diseases and provide the remedies by which many of
them can be relieved or even stamped out.
To help the sick and distressed appeals to the kind-hearted
always, but to help the investigator who is striving successfully
to attack the causes which bring about sickness and distress
does not so strongly attract the giver of money. The first
appeals to the sentiments overpoweringly, but the second has
the head to deal with. Yet I am sure we are making wonderful
advances in this field of scientific giving. All over the world
the need of dealing with the questions of philanthropy with
something beyond the impulses of emotion is evident, and every-
where help is being given to those heroic men and women who
are devoting themselves to the practical and essentially scien-
tific tasks. It is a good and inspiring thing to recall occasionally
the heroism, for example, of the men who risked and sacrificed
their lives to discover the facts about yellow fever, a sacrifice
for which untold generations will bless them; and this same
spirit has animated the professions of medicine and surgery.
SCIENTIFIC RESEARCH
How far may this spirit of sacrifice properly extend? A
great number of scientific men every year give up everything
to arrive at some helpful contribution to the sum of human
knowledge, and I have sometimes thought that good people who
lightly and freely criticize their actions scarcely realize just
what such criticism means. It is one thing to stand on the
comfortable ground of placid inaction and put forth words of
cynical wisdom, and another to plunge into the work itself and
through strenuous experience earn tiie right to express strong
conclusions.
For my own part, I have stood so much as a placid onlooker
that I have not had the hardihood even to suggest how people
so much more experienced and wise in those things than I should
work out the details even of those plans with which I have had
the honour to be associated.
There has been a good deal of criticism, no doubt sincere, of
experiments on living dumb animals, and the person who stands
for the defenceless animal has such an overwhehning appeal
THE BOOKEFELLEB FOUNDATION 59
to the emotions that it is perhaps useless to allude to the other
Mde of the controversy. Dr. Simon Flexner, of the Institute
for Medical Research, has had to face exaggerated and even
sensational reports, which have no basis of truth whatever. But
consider for a moment what has been accomplished recently,
under the direction of Dr. Flexner in discovering a remedy for
epidemic cerebro-spinal meningitis. It is true that in discover-
ing this cure the lives of perhaps fifteen animals were sacrificed,
as I learn, most of them monkeys; but for each one of these
animals which lost its life, already scores of human lives have
been saved. Large-hearted men like Dr. Flexner and his asso-
ciates do not permit unnecessary pain to defenceless animals.
I have been deeply interested in the story of a desperate ex-
periment to save a child's life, told in a letter written by one
of my associates soon after the event described; and it seems
worthy of repeating. Dr. Alexis Carrel has been associated with
Dr. Flexner and his work, and his wonderful skill has been
the result of his experiments and experiences.
A WONDERFUL SURGICAL OPERATION
"Dr. Alexis Carrel, one of the Institute's staff, has been
making some interesting studies in experimental surgery,
and has successfully transplanted organs from one animal
to another, and blood vessels from one species to another.
He had the opportunity recently of applying the skill thus
acquired to the saving of a human life under circumstances
which attracted great interest among the medical fraternity
of this city. One of the best known of the younger sur-
geons in New York had a child born early last March, which
developed a disease in which the blood, for some reason,
exudes from the blood vessels into the tissues of the body,
and ordinarily the child dies of this internal hemorrhage.
When this child was five days old it was evident that it
was dying. The father and his brother, who is one of the
most distinguished men in the profession, and one or two
other doctors were in consultation with reference to it,
but considered the case entirely hopeless.
"It so happened that the father had been impressed with
the work which Dr. Carrel had been doing at the Institute,
and had spent several days with him studying his methods.
He became convinced that the only possibility of saving the
child's life was by the direct transfusion of blood. While
this has been done between adults, the blood vessels of a
young infant are so delicate that it seemed impossible that
the operation could be successfully carried on. It is neces-
sary not only that the blood vessels of the two persons
should be united together, but it must be done in such a way
that the interior lining of the vessels, which is a smooth,
shiny tissue, should be continuous. If the blood comes in
contact with the muscular coat of the blood vessels, it will
clot and stop the circulation.
"Fortunately, Dr. Carrel had been experimenting on the
blood vessels of some very young animals, and the father
was convinced that if any man in the country could perform
the operation successfully, it would be he.
"It was then the middle of the night. But Dr. Carrel
was called on, and when the situation was explained to him,
and it was made clear that the child would die anyhow, he
60 THE BOCKEEELLEB, FOVNDATlOTSr
readily consented to attempt the operation, although ex-
pressing very slight hope of its successful outcome.
"The father offered himself as the person whose blood
should be furnished to the child. It was imposable to give
anaesthetics to either of them. In a child of that age there
is only one vein large enough to be used, and diat is in
the back of the leg, and deep seated. A prominent surgeon
who was present exposed this vein. He said afterward
that there was no sign of life in the child, and expressed
the belief that the child had been, to all intents and purposes,
dead for ten minutes. In view of its condition he raised
the question whether it was worth while to proceed further
with the attempt. The father, however, insisted upon going
on, and the surgeon then exposed the radial artery in the
surgeon's wrist, and was obliged to dissect it back about
six inches, in order to pull it out far enough to make the
connection with the child's vein.
"This part of the work the surgeon who did it afterward
described as the 'blacksmith part of the job.' He said that
the child's vein was about the size of a match and the
consistency of wet cigarette paper, and it seemed utterly
impossible for anyone to successfully unite these two vessels.
Dr. Carrel, however, accomplished this feat. And then oc-
curred what the doctors who were present described as one
of the most dramatic incidents in the history of surgery.
The blood from the father's artery was released, and began
to flow into the child's body, amounting to about a pint.
The first sign of life was a little pink tinge at the top of
one of the ears, then the lips, which had become perfectly
blue, began to change to red, and then suddenly, as though
the child had been taken from a hot mustard bath, a pink
glow broke out all over its body, and it began to cry lustily.
After about eight minutes the two were separated. The
child at that time was crying for food. It was fed, and
from that moment began to eat and sleep regularly, and
made a complete recovery.
"The father appeared before a legislative committee at
Albany, in opposition to certain bills which were pending
at the last session to restrict animal experimentation, and
told this incident, and said at the close that when he saw
Dr. Carrel's experiments he had no idea that they would
so soon be available for saving human life ; much less did
he imagine that the life to be saved would be that of his
own child."
THE FUNDAMENTAI, THING IN ALL HELP
If the people can be educated to help themselves, we strike
at the root of many of the evils of tiie world. This is the
fundamental thing, and it is worth sajdn^ even if it has been
said so often that its truth is lost sight of in its constant repeti-
tion.
The only thing which is of lasting benefit to a man is that
which he does for himself. Money which comes to him without
effort on his part is seldom a benefit and often a curse. That is
the principal objection to speculation — ^it is not because more
lose than gain, though that is true — ^but it is because those
who gain are apt to receive more injury from their success than
they would have received from failure. And so with regard
THE BOOKEFELIiEB rOUNDATION 61
to money or other things which are given by one person to
another. It is only in the exceptional case mat the receiver
is really benefitted. But, if we can help people to help them-
selves, then there is a permanent blessing conferred.
Men who are studying the problem of disease tell us that
it is becoming more and more evident that the forces which
conquer sickness are within the body itself, and that it is only
when these are reduced below the normal that disease can get
a foothold. The way to ward oil disease, therefore, is to tone
up the body generally; and, when disease has secured a foot-
hold, the way to combat it is to help these natural resisting
agencies which are in the body already. In the same way the
failures which a man makes in his life are due almost always
to some defect in his personality, some weakness of body, or
mind, or character, will, or temperament. The only way to
overcome these failings is to build up his personality from with-
in, so that he, by virtue of what is within him, may overcome
the weakness which was the cause of the failure. It is only
those efforts the man himself puts forth that can really help
him.
We all de^re to see the widest possible distribution of the
blessings of life. Many crude plans have been suggested, some
of which utterly ignore the essential facts of human nature,
and if carried out would perhaps drag our whole civilization
down into hopeless misery. It is my belief that the principal
cause for the economic differences between people is their
difference in personality, and that it is only as we can assist in
the wider distribution of those quahties which go to make up
a strong personality that we can assist in the wider distribution
of wealth. Under normal conditions the man who is strong
in body, in mind, in character, and in will need never suffer
want. But these qualities can never be developed in a man
unless by his own efforts, and the most that any other can do
for him is, as I have said, to help him to help himself.
We must always remember that there is not enough money
for the work of human upUft and that there never can be. How
vitally important it is, flierefore, that the expenditure should
go as far as possible and be used with the greatest intelligence !
I have been frank to say that I believe in the spirit of com-
bination and cooperation when properly and fairly conducted
in the world of commercial affairs, on the principle that it helps
to reduce waste; and waste is a dissipation of power. I sin-
cerely hope and thoroughly believe that this same principle will
eventually prevail in the art of giving as it does in business.
It is not merely the tendency of the times developed by more
exacting conditions in industry, but it should make its_ most
effective appeal to the hearts of the people who are striving to
do the most good to the largest number.
SOME UNDERLYING PRINCIPLES
At the risk of making this chapter very dull, and I am told
that this is a fault which inexperienced authors should avoid
at all hazards, I may perhaps be pardoned if I set down here
some of the fundamental principles which have been at the
bottom of all my own plans. I have undertaken no work of any
importance for many years which, in a general way, has not
followed out these broad lines, and I believe no really con-
structive effort can be made in philanthropic work without such
a well-defined and consecutive purpose.
62 THE BOCKEFELIiEB FOUNDATION
My own conversion to the feeling that an organized plan
was an absolute necessity came about in this way.
About the year 1890 I was still following the haphazard
fashion of giving here and there as appeals presented them-
selves. I investigated as I could and worked _ myself almost
to a nervous break-down in groping my way, without sufEcient
guide or chart, through this ever-widening field of philanthropic
endeavour. There was then forced upon me the necessity to
organize and plan this department of our daily tasks on as dis-
tinct lines of progress as we did our business afiairs; and I
will try to describe the underls^ing principles we arrived at, and
have since followed out, and hope still greatly to extend.
It may be beyond the pale of good taste to speak at all of
such a personal subject — I am not unmindful of this — ^but I
can make these observations with at least a little better grace
because so much of the hard work and hard thinking are done
by my family and associates, who devote their lives to it.
Every right-minded man has a philosophy of life, whether
he knows it or not. Hidden away in his mind are certain
governing principles, whether he formulates them in words or
not, which govern his life. Surely his ideal ought to be to
contribute all that he can, however little it may be, whether of
money or service, to human progress.
Certainly one's ideal should be to use one's means, both in
one's investments and in benefactions, for the advancement of
civilization. But the question as to what civilization is and
what are the great laws which govern its advance have been
seriously studied. Our investments not less than gifts have
been directed to such ends as we have thought would tend to
produce these results. If you were to go into our office, and
ask our committee on benevolence or our committee on invest-
ment m what they consider civilization to consist, they would
say that they have found in their study that the most convenient
analysis of the elements which go to make up civilization runs
about as follows:
1st. Progress in the means of subsistence, that is to say,
progress in abundance and variety of food-supply, clothing,
shelter, sanitation, public health, commerce, manufacture, the
growth of the public wealth, etc.
and. Progress in government and law, that is to say, in the
enactment of laws securing justice and equity to every man,
consistent with the largest individual liberty, and the due and
orderly enforcement of the same upon all.
3rd. Progress in literature and language.
4th. Progress in science and philosophy.
Sth. Progress in art and refinement.
6th. Progress in morality and religion.
If you were to ask them, as indeed they are very often asked,
which of these they regard as fundamental, they would reply
that they would not attempt to answer, that the question is
purely an academic one, that all these go hand in hand, but
that historically the first of them — namely, progress in means of
subsistence—had generally preceded progress in government, in
literature, in knowledge, in refinement, and in religion. Though
not itself of the highest importance, it is the foundation upon
which the whole superstructure of civilization is built, and
without which it could not exist.
Accordingly, we have sought, so far as we could, to make
investments in such a way as will tend to multiply, to cheapen,
THE EOCKEFELLEE ITOUNDATIOlir 63
aid to diffuse as universally as possible the comforts of life.
We claim no credit for preferring these lines of investment.
We make no sacrifices. These are the lines of largest and
surest return. In this particular, namely, in cheapness, ease of
acquirement, and universality of means of subsistence, our
country easily surpasses that of any other in the world, though
we are behind other countries, perhaps, in most of the others.
It may be asked: How is it consistent with the universal
diffusion of these blessings that vast sums of money should
be in single hands? The reply is, as I see it, that, while men
of wealth control great sums of money, they do not and cannot
use them for themselves. They have, indeed, the legal title to
large properties, and they do control the investment of them,
but that is as far as their own relation to them extends or can
extend. The money is universally diffused, in the sense that
It IS kept invested, and it passes into the pay-envelope week by
week.
Up to the present time no scheme has yet presented itself
which seems to afford a better method of handling capital than
that of individual ownership. We might put our money into
the Treasury of the Nation and of the various states, but we
do not find any promise in the National or state legislatures,
viewed from the experiences of the past, that the funds would
be expended for the general weal more effectively than under
the present methods, nor do we find in any of the schemes of
socialism a promise that wealth would be more wisely ad-
ministered for the general good. It is the duty of men of
means to maintain the title to their property and to administer
their funds until some man, or body of men, shall rise up
capable of administering for the general good the capital of the
country better than they can.
The next four elements of progress mentioned in the
enumeration above, namely, progress in government and law,
in language and literature, in science and philosophy, in art
and refinement, we for ourselves have thought to be best pro-
moted by means of the higher education, and accordingly we
have had the great satisfaction of putting such sums as we
could into various forms of education in our own and in for-
eign lands — and education not merely along the lines of dis-
seminating more generally the known, but quite as much, and
perhaps even more, in promoting original investigation. An
individual institution of learning can have only a narrow sphere.
It can reach only a limited number of people. But every new
fact discovered, every widening of the boundaries of human
knowledge by researdi, becomes universally known to all insti-
tutions of learning, and becomes a benefaction at once to the
•whole race.
Quite as interesting as any phase of the work have been the
new lines entered upon by our committee. We have not been
satisfied with giving to causes which have appealed to us.
We have felt that the mere fact that this or the other cause
makes its appeal is no reason why we should give to it any
more than to a thousand other causes, perhaps more worthy,
which do not happen to have come under our eye. The mere
fact of a personal appeal creates no claim which did not exist
before, and no preference over other causes more worthy which
may not have made their appeal. So this little committee of
64 THE BOCKEFELLEB FOUNDATION
ours has not been content to let the benevolences drift into
the channels of mere convenience — ^to give to the institutions
which have sought aid and to neglect ouers. This department
has studied the field of human progress, and sought to con-
tribute to each of those elements which we believe tend most
to promote it. Where it has not found organizations ready to
its hand for such purpose, the members of the committee have
sought to create them. We are still working on new, and, I
hope, expanding lines, which make large demands on one's
intelUgence and study.
The so-called betterment work which has always been to me
a source of great interest had a great influence on my life, and
I refer to it here because I wish to urge in this connection
the great importance of a father's keeping in close touch with
his children, taking into his confidence the girls as well as the
boys, who in this way learn by seeing and doing, and have their
part in the family responsibilities. As my father taught me,
so I have tried to teach my children. For years it was our
custom to read at the table the letters we received affecting
the various benevolences with which we had to do, studjdng
the requests made for worthy purposes, and following the
history and reports of institutions and philanthropic cases in
which we were interested.
Chapter VII.— The Benevolent Trust— The Value
of the Cooperative Principle in Giving.
Going a step farther in the plan of making benefactions in-
creasingly effective which I took up in the last chapter under
the title of "The DifiScult Art of Giving," I am tempted to take
the opportunity to dwell a little upon the subject of combina-
tion in charitable work, which has been something of a hobby
with me for many years.
If a combination to do business is effective in saving waste
and in getting better results, why is not combination far more
important in philanthropic work? The general idea of co-
operation in giving for education, I have felt, scored a real
step in advance when Mr. Andrew Carnegie consented to be-
come a member of the General Education Board. For in ac-
cepting a position in this directorate he has, it seems to me,
stamped with his approval this vital principle of cooperation in
aiding the educational institutions of our country.
I rejoice, as everybody must, in Mr. Carnegie's enthusiasm
for using his wealth for the benefit of his less fortunate fellows
and I think his devotion to his adopted land's welfare has set
a striking example for all time.
The General Education Board, of which Mr. Carnegie has
now become a member, is interesting as an example of an
organization formed for the purpose of working out, in an
orderly and rather scientific way, the problem of helping to
stimulate^ and improve education in all parts of our country.
What this organization may eventually accomplish, of course,
no one can tell, but surely, under its present board of directors,
it will go very far. Here, again, I feel that I may
THE BOOKSFELLEB £<OUI>rDATIOII^ 65
frankly and express my personal faith in its success, since I am
not a member of the board, and have never attended a meet-
ing, and the work is all done by others.
There are some other and larger plans thought out on care-
ful and broad lines, which I have been studying for many years,
and we can see that they are growing into definite shape. It
is good to know that there are always unselfish men, of the
best calibre, to help in every large philanthropic enterprise.
One of the most satisfactory and stimulating pieces of good
fortune that has come to me is the evidence that so many busy
people are wilhng to turn aside from their work in pressing
fields of labour and to give their best thoughts and energies
without compensation to the work of human uplift. Doctors,
clergymen, lawyers, as well as many high-grade men of afiEairs,
are devoting their best and most unselfish efforts to some of
the plans that we are all trying to work out
Take, as one example of many similar cases, Mr. Robert C.
Ogden, who for years, while devoting himself to an exacting
business, still found time, supported by wonderful enthusiasm,
to give force by his own personality to work done in difficult
parts of the educational world, particularly to improving the
common school system of the South. His efforts have been
wisely directed along fundamental lines which must produce
results through the years to come.
Fortunately my children have been as earnest as I, and much
more diligent, in carefully and intelligently carrying out the
work already begun, and agree with me that at least the same
energy and thought should be expended in the proper and
effective use of money when acquired as was exerted in the
earning of it.
The General Education Board has made, or is making, a
careful study of the location, aims, work, resources, adminis-
tration, and educational value, present and prospective, of the
institutions of higher learning in the United States. The board
makes its contributions, averaging something like two million
dollars a year, on the most careful comparative study of needs
and opportunities throughout the country. Its records are open
to all. Many benefactors of education are availing themselves
of these disinterested inquiries, and it is hoped that more will
do so.
A large number of individuals are contributing to the sup-
port of educational institutions in our country. To help an
inefficient, ill-located, unnecessary school is a waste. I am told
by those who have given most careful study to this problem
that it is highly probable that enough money has been squand-
ered on unwise educational projects to have built up a national
system of higher education adequate to our needs if the money
had been properly directed to that end. Many of the good
people who bestow their beneficence on education may well
give more thought to investigating the character of the enter-
prises that they are importuned to help, and this study ought
to take into account the kind of people who are responsible
for their management, their location, and the facilities supplied
by other institutions round about. A thorough examination
such as this is generally quite impossible for an individual, and
he either declines to give from lack of accurate knowledge, or
he may give without due consideration. If, however, this work
of inquiry is done, and well done, by the General Education
66 THE BOCKEFELIiEB FOUNDATION
Board, through oflScers of intelligence, skill, and sympathy,
trained to llie work^ important and needed service is rendered.
The walls of sectarian exclusiveness are fast disappearing, as
they should, and the best people are standing shoulder to
shoulder as they attack the great problems of general uplift
ROMAN CATHOLIC CHARITIES
Just here it occurs to me to testify to the fact that the Roman
Catholic Church, as I have observed in my experience, has
advanced a long way in this direction. I have been surprised
to learn how far a given sum of money has gone in the hands
of priests and nuns, and how really efifective is their use of it.
I fully appreciate the splendid service done by other workers in
the field, but I have seen the organization of the Roman Church
secure better results with a given sum of money than other
Church organizations are accustomed to secure from the same
expenditure. I speak of this merely to point the value of the
principle of organization, in which I believe so heartily. It is
unnecessary to dwell upon the centuries of experience which
the Church of Rome has gone through to perfect a great power
of organization.
Studying these problems has been a source of the greatest
interest to ine. My assistants, quite distinct from any board,
have an organization of sufficient size to investigate the many
requests that come to us. This is done from the office of our
committee in New York. For an individual to attempt to keep
any close watch of single cases would be impossible. I am
called upon to explain this fact many times. To read the hun-
dreds of letters daily received at our office would be beyond
the power of any one man, and surely, if the many good people
who write would only reflect a little, they must realize Qiat it
is impossible for me personally to consider their applications.
The plan that we have worked out, and I hope improved upon
year after year, has been the result of experience, and I refer
to it now only as one contribution to a general subject which
is of such great moment to earnest people; and this must be
my excuse for speaking so frankly.
THE APPEALS THAT COME
The reading, assorting, and investigating of the hundreds of
letters of appeal which are received daily at my office are at-
tended to by a department organized for this purpose. The
task is not so difficult as at first it might seem. The letters
are, to be sure, of great variety, from all sorts of people in
every condition of life, and indeed, from all parts of the world.
Four-fifths of these letters are, however, requests for money
for personal use, with no other title to consideration than that
the writer would be gratified to have it.
There remain numbers of requests which all must recognize
as worthy of notice. These may be divided, roughly, as fol-
lows :
_ The claims of local charities. The town or city in which one
lives has a definite appeal to all its citizens, and all good neigh-
bours will wish to cooperate with friends and fellow towns-
men._ But these local charities, hospitals, kindergartens, and
the like, ought not to make appeal outside tiie local communities
which they serve. The burden should be carried by the people
who are on the spot and who are, or should be, most familiar
with local needs.
THE BOOKEE'ELiiEB FOUNDATION 07
Then come the national and international claims. These
properly appeal especially to men of large means throughout
the country, whose wealth admits of their doing something
more than assist in caring for the local charities. There are
many great national and international philanthropic and Christ-
ian organizations that cover the whole field of world-wide
charity; and, while people of reputed wealth all receive appeals
from individual workers throughout the world for personal as-
sistance, the prudent and thoughtful giver will, more and more,
choose these great and responsible organizations as the medium
for his gifts and the distribution of his funds to distant fields.
This has been my custom, and the experience of every day
serves only to confirm its wisdom.
The great value of dealing with an organization which knows
all the facts, and can best decide just where the help can be
applied to the best advantage, has impressed itself upon me
through the results of long years of experience. For example,
one is asked to give in a certain field of missionary work a sum,
for a definite purpose — let us say a hospital. To comply with
this request will take, say, $10,000. It seems wise and natural
to give this amount. The missionary who wants this money is
working under the direction of a strong and capable religious
denomination.
Suppose the request is referred to the manager of the board
of this denomination, and it transpires that there are many
good reasons why a new hospital is not badly needed at this
point, and by a Uttle good management the need of this mis-
sionary can be met by another hospital in its neighborhood,
whereas another missionary in another place has no such pos-
sibility for any hospital facilities whatever. There is no ques-
tion that the money should be spent in the place last named.
These conditions the managers of all the mission stations know,
although perhaps the one who is giving the money never heard
of them, and in my judgment he is_ wise in not acting until
he has consulted these men of larger information.
It is interesting to follow the mental processes that some
excellent souls go through to cloud their consciences when they
consider what their duty actually is. For instance, one man
says: "I do not believe in giving money to street beggars."
I agree wih him, I do not believe in the practice either; but
that is not a reason why one should be exempt from doing
something to help the situation represented by the street beggar.
Because one does not yield to the importunities of such people
is exactly the reason one should join and uphold the charity
organization societies of one's own locality, which deal justly
and humanely with this class, separating the worthy from the
Another says : "I don't give to such and such a board, because
I have read that of the money given only half or less actually
gets to the person needing help." This is often not a true state-
ment of fact, as proved again and again, and even if it were
true in part it does not relieve the possible giver from the duty
of helping to make the organization more efficient. By no
possible chance is it a valid excuse for closing up^ ones pocket-
book and dismissing the whole subject from ones mmd.
INSTITUTIONS AS THEY RELATE TO EACH OTHER
Surely it is wise to be careful not to duplicate effort and not
to inaugurate new charities in fields already covered, but
68 THE BOOKEPELLEB FOUNDATION
rather to strengthen and perfect those already at vrork. There
is a great deal of rivalry and a vast amount of duplication, and
one of the most difficult things in giving is to ascertain when
the field is fully covered. Many people simply consider whether
the institution to which they are giving is thoughtfully and well
managed, without stopping to discover whether the field is not
already occupied by others; and for this reason one ought
not to investigate a single institution by itself, but always in its
relation to all similar institutions in the territory. Here is a
case in point:
A number of enthusiastic people had a plan for founding an
orphan asylum which was to be conducted by one of our
strongest religious denominations. The raising of the neces-
sary funds was begun, and among the people who were asked
to subscribe was a man who always made it a practice to study
the situation carefully before committing himself to a contribu-
tion. He asked one of the promoters of the new institution
how many beds the present asylums serving this community
provided, how efficient they were, where located, and what par-
ticular class of institution was lacking in the community.
To none of these questions were answers forthcoming, so he
had this information gathered on his own account with the
purpose of helping to make the new plan effective. His studies
revealed the fact that the city where the new asylum was to
be built was so well provided with such institutions that there
were already vastly more beds for children than there were
applicants to fill them, and that the field was well and fully
covered. These facts being presented to the organizers of the
enterprise, it was shown that no real need for such an institution
existed. I wish I might add that the scheme was abandoned. It
was not. Such charities seldom are when once the sympathies
of the worthy people, however misinformed, are heartily en-
listed.
It may be urged that doing the work in this systematic and
apparently cold-blooded way leaves out of consideration, to a
large extent, the merits of individual cases. My contention is
that the organization of work in combination should not and
does not stifle the work of individuals, but strengthens and
stimulates it The orderly combination of philanthropic effort
is growing daily, and at the same time the spirit of broad
philanthropy never was so general as it is now.
THE CLAIM OF HIGHER EDUCATION
The giver who works out these problems for himself will,
no doubt, find many critics. So many people see the pressing
needs of everyday life that possibly they fail to realize those
which are, if less obvious, of an even larger significance — for
instance, the great claims of higher education. Ignorance is
the source of a large part of the poverty and a vast amount
of the crime in the world — Whence the need of education. If we
assist the highest forms of education — ^in whatever field — ^we
secure the widest influence in enlarging the boundaries of
human knowledge; for all the new facts discovered or set in
motion become the universal heritage. I think we cannot over-
estimate the importance of this matter. The mere fact that
most of the great achievements in science, medicine, art, and
literature are the flower of the higher education is sufficient.
Sonie great writer will one day show how these things have
ministered to the wants of all the people, educated and unedu-
THE BOOKEFELLEB FOUNDATION 69
cated, high and low, rich and poor, and made Uf e more what
we all wish it to be.
The best philanthropy is constantly in search of the finalities—
a search for cause, an attempt to cure evils at their source
My interest in the University of Chicago has been enhanced
X. i: *^* *^* ^^'^ ^^ ^^^ comprehensively considered the
other features of a collegiate course, it has given so much
attention to research.
DR. WILUAM R. HARPER
The mention of this promising young institution always
brings to my mind the figure of Dr. William R. Harper, whose
enthusiasm for its work was so great that no vision of its
future seemed too large.
My first meeting with Dr. Harper was at Vassar College,
where one of my daughters was a student He used to come,
as Ae guest of Dr. James M. Taylor, the president, to lecture
on Sundays; and as I frequently spent week ends there, I saw
and talked much with the young professor, then of Yale, and
caught in some degree the contagion of his enthusiasm.
When the university had been founded, and he had taken
the presidency, our great ambition was to secure the best in-
structors and to organize the new institution, unhampered by
traditions, according to the most modern ideals. He raised
millions of dollars among the people of Chicago and the Middle
West, and won the personal interest of their leading citizens.
Here lay his great strength, for he secured not only their money
but their loyal support and strong personal interest— the best
kind of help and cooperation. He built even better than he
knew. His lofty ideals embodied in the university awakened a
deeper interest in higher education throughout the Central West,
and stirred individuals, denominations, and legislators to
effective action. The world will probably never realize how
largely the present splendid university system of the Central
Western States is due indirectly to the genius of this man.
With all his extraordinary power of work and his executive
and organizing ability. Dr. Harper was a man of exquisite per-
sonal charm. We count it among the rich and delightful ex-
periences of our home-life that Dr. and Mrs. Harper could
occasionally spend days together with us for a brief respite
from the exacting cares and responsibilities of the university
work. As a friend and companion, in daily intercourse, no
one could be more delightful than he.
It has been my good fortune to contribute at various times
to the University of Chicago, of which Dr. Harper was presi-
dent, and the newspapers not unnaturally supposed at such
times that he used the occasions of our personal association
to secure these contributions. The cartoonists used to find this
a fruitful theme. They would picture Dr. Harper as a hypnotist
waving his magic spell, or would represent him forcing his way
into my inner oflSce where I was pictured as busy cutting coupons
and from which delightful employment I incontinently fled out
of the window at sight of him ; or they would represent me as
fleeing across rivers on cakes of floating ice with Dr. Harper
in hot pursuit; or perhaps he would be following close on my
trail, like the wolf in the Russian story, in inaccessible country
retreats, while I escaped only by means of the slight delays I
occasioned him by now and then dropping a million-dollar bill,
which he would be obliged to stop and pick up.
70 ISE BOCKEFELIiEB FOUNDATION
These cartoons were intended to be very amusing, and some
of them certainly did have a flavour of humour, but they were
never humorous to Dr. Harper. They were in fact a source of
deep humiliation to him, and I am sure he would, were he
living, be glad to have me say, as I now do, that during the
entire period of his presidency of the University of Chicago,
he never once either wrote me a letter or asked me personally
for a dollar of money for the University of Chicago. In the
most intimate daily intercourse with him in my home, the
finances of the University of Chicago were never canvassed or
discussed.
The method of procedure in this case has been substantially
the same as with all other contributions. The presentation of
the needs of the university has been made in writing by the
ofiBcers of the university, whose special duty it is to prepare
its budgets and superintend its finances. A committee of the
trustees, with the president, have annually conferred, at a fixed
time, with our Department of Benevolence, as to its needs.
Their conclusions have generally been entirely unanimous and I
have found no occasion hitherto seriously to depart from their
recommendations. There have been no personal interviews and
no personal sohcitations. It has been a pleasure to me to make
these contributions, but that pleasure has arisen out of the fact
that the university is located in a great centre of empire; that
it has rooted itself in the affections and interest of the people
among whom it is located; that it is doing a great and needed
work — ^in fine, that it has been able to attract and to justify the
contributions of its patrons East and West. It is not personal
interviews and impassioned appeals, but sound and justifying
worth, that should attract and secure the funds of philanthropy.
The people in great numbers who are constantly importuning
me for personal interviews in behalf of favorite causes err
in supposing that the interview, were it possible, is the best, way,
or even a good way, of securing what tiiey want. Our practice
has been uniformly to request applicants to state their cases
tersely, but nevertheless as fully as they think necessary, in
writing. Their application is carefully considered by very com-
petent people chosen for this purpose. If, thereupon, per-
sonal interviews are found desirable by our assistants, they are
invited from our office.
Written presentations form the necessary basis of investiga-
tion, of consultation, and comparison of views between the
different members of our staff, and of the final presentation to
me.
It is impossible to conduct this department of our work in
any other way. The rule requiring written presentation as
against the interview is enforced and adhered to not, as the
applicant sometimes supposes, as a cold rebuff to him, but in
order to secure for his cause, if it be a good one, the careful
consideration which is its due — a consideration that cannot be
given in a mere verbal interview.
THE REASON FOR CONDITIONAL GIFTS
_ It is easy to do harm in giving money. To give to institu-
tions which should be supported by others is not the best philan-
thropy. Such giving only serves to dry up the natural springs
of charity.
It is highly important that evety charitable institution shall
have at all times the largest possible number of current con-
THE BOCKEFEUjEB FOUNDATION 71
tributors._ This means that the institution shall constantly be
making its appeals; but, if these constant appeals are to be
successful, the institution is forced to do excellent work and
meet real and manifest needs. Moreover, the interest of many
people affords the best assurance of wise economy and unselfish
management as well as of continued support.
We frequently make our gifts conditional on the giving of
others, not because we wish to force people to do their duty,
but because we wish in this way to root the institution in the
a£Eections of as many people as possible who, as contributors,
become personally concerned, and thereafter may be counted on
to give to the_ institution their watchful interest and cooperation.
Conditional gifts are often criticized, and sometimes, it may be,
by people who have not thought the matter out fully.
Criticism which is deliberate, sober, and fair is always valuable
and it should be welcomed by all who desire progress. I have
had at least my full share of adverse criticism, but I can truly
say that it has not embittered me, nor left me with any harsh
feeling against a living soul. Nor do I wish to be critical
of those whose conscientious judgment, frankly expressed, dif-
fers from my own. No matter how noisy the pessimists may
be, we know that the world is getting better steadily and rapidly,
and that is a good thing to remember in our moments of de-
pression or humiliation.
THE BENEVOLENT TRUSTS
To return to the subject of the Benevolent Trusts, which
is a name for corporations to manage the business side of
benefactions. The idea needs, and to be successful must have,
the help of men who have been trained along practical lines.
The best men of business should be attracted by its possibilities
for good. When it is eventually worked out, as it will be in
some form, and probably in a better one than we can now fore-
cast, how worthy it will be of the efforts of our ablest men !
We shall have the best charities supported generously and
adequately, managed with scientific efiSciency by the ablest men,
who will gladly be held strictly accountable to the donors of
the money, not only for the correct financing of the funds, but
for the intelligent and eflFective use of every penny. To-day the
whole machinery of benevolence is conducted upon more or less
haphazard principles. Good men and women are wearing out
their lives to raise money to sustain institutions which are con-
ducted by more or less unskilled methods. This is a tremendous
waste of our best material
We cannot afford to have great souls who are capable of
doing the most effective work slaving to raise the money. That
should be a business man's task, and he should be supreme
in managing the machinery of the expenses. The teachers, the
workers, and the inspired leaders of the people should be re-
lieved of these pressing and belittling money cares. They have
more than enough to do in tilling their tremendous and never
fully occupied field, and they should be free from any care
which might in any wise divert them from that work.
When these Benevolent Trusts come into active being, such
organizations on broad lines will be sure to attract the brains
of the best men we have in our commercial affairs, as great
business opportunities attract them now. Our successful busi-
ness men as a class, and the exceptions only prove the truth
72 THE aooKEFSiAjesa foundation
of the assertion, have a high standard of honour. I have
sometimes been tempted to say that our clergymen could gain
by knowing the essentials of business life better. The closer
association with men of afiairs would, I think, benefit both
classes. People who have had much to do with ministers
and those who hold confidential positions in our churches have
at times had surprising experiences in meeting what is some-
times practised in the way of ecclesiastical business, because
these good men have had so little of business training in the
work-a-day world.
The whole system of proper relations, whether it be in com-
merce, or in the Church, or in the sciences, rests on honour.
Able business men seek to confine their dealings to people who
tell the truth and keep their promises; and the representatives
of the Church, who are often prone to attack business men as a
type of what is selfish and mean, have some great lessons to
learn, and they will gladly learn them as these two types oiE
workers grow closer together.
The Benevolent Trusts, when they come, will raise these
standards; they will look the facts in the face; they will ap-
plaud and sustain the effective workers and institutions; and
they will uplift the intelligent standard of good work in helping
all the people chiefly to _ help themselves. There are already
signs that these combinations are coming, and coming quickly,
and in the directorates of these trusts you will eventually find
the flower of our American manhood, the men who not only
know how to make money, but who accept the great responsi-
bility of administering it wisely.
A few years ago, on the occasion of the decennial anniversary
of the University of Chicago, I was attending a university
dinner, and having been asked to speak I had jotted down a
few notes.
When the time arrived to stand up and face these guests —
men of worth and position — ^my notes meant nothing to me.
As I thought of the latent power of good that rested with
these rich and influential people I was greatly affected. I threw
down my notes and started to plead for my Benevolent Trust
plan.
"You men,'" I said, "'are always looking forward to do some-
thing for good causes. I know how very busy you are. You
■work in a treadmill from which you see no escape. I can
easily understand that you feel that it is beyond your present
power carefully to study the needs of humanity, and that you
wait to give until you have considered many things and decided
upon some course of action. Now, why not do with what
you can give to others as you do with what you
want to keep for yourself and your children: Put it into a
Trust? You would not place a fortune for your children in
the hands of an inexperienced person, no matter how good he
might be. Let us be as careful with the money we would spend
for the benefit of others as if we were laying it aside for our
own family's future use. Directors carry on tiiese affairs in
your behalf. Let us erect a foundation, a Trust, and engage
directors w;ho will make it a life work to manage, with our
personal cooperation, this business of benevolence properly and
effectively. And I beg of you, attend to it now, don't wait."
I confess I felt most strongly on the subject, and I feel so
now.
THE EOOKEFELLEB FOTJNDATION 73
EXHIBIT D.
Statements issued to the Press.*
(Statement issued by Jerome D. Greene, Secretary of the
Rockefeller Foundation, October I, 1914.)
THE ROCKEFELLER FOUNDATION INAUGURATES
A FAR-REACHING INVESTIGATION OF INDUS-
TRIAL RELATIONS AND HAS APPOINTED AS
DIRECTOR HON. W. L. MACKENZIE KING, FOR-
MER MINISTER OF LABOR IN CANADA, AUTHOR
OF INDUSTRIAL DISPUTES ACT, AND EXPER-
IENCED MEDIATOR IN LABOR DISPUTES.
The Trustees of the Rockefeller Foundation have decided to
inaug[arate an extensive investigation into the problem of In-
dustrial Relations, and have secured the services of the Hon.
W. L. Mackenzie King, C.M.G., former Minister of Labor for
Canada, as Director of the investigation.
In spirit and method the investigation of the problem of
industrial relations will be like that carried on by the Rocke-
feller Institute for Medical Research, and other inquiries insti-
tuted by the Rockefeller boards. All aUke are practical in aim
and scientific in method. In the Institute for Medical Re-
search, the Imowledge of the world is being sought by experts
and brought to bear upon a limited number of human diseases.
Investigation has not been deterred by the circumstance that the
diseases dealt with are a part of a common inheritance through
generations and that a limited knowledge sometimes pronounces
tiiem incurable.
In the anomalies which modern industrial conditions dis-
close, there is plenty of evidence of social disorder. Labor
and Capital, in their relations to each other, too often sug-
gest the bitter enmities and destructive capacities of opposing
and contending forces and too rarely suggest the possibilities of
harmonious and united action conforming to the laws of in-
dividual and social need. The present inquiry will seek to
reveal the causes of the former, and the means of promoting
the eflScient practical application of the latter. _ , , „
In facing the problem of Industrial Relations, the Rockefeller
Foundation is deliberately attempting to grapple with what it
beUeves to be the most complicated and at the same tune the
most urgent question of modern times, and it is precisely for
this reason that the investigation has been instituted. The
Foundation is not baffled at the outset by the knowledge that
the task hitherto has seemed well nigh hopeless, and that the
literature on the subject, and the tried experience of the world
is so vast as to be overwhehning. These may be reasons for a
gradual approach, and for counselling patience m the matter of
results, but they afiford no excuse for inaction. It is hoped
that an investigation instituted on the scale, and impartially
and persistently pursued in the spirit and with the facilities
which the Foundation affords, will gradually wm for itself the
cooperation, not alone of employers and worfangmen of indus-
trial organizations, of individuals, and insiUtutions interested m
social rfform, but also of universities and Governments through-
*"ln*«) Tense' will the investigation be local or restricted, or
•See Question 26, page 49-
74 XHE BOCKEFEU/EB FOUKDAIION
carried on with particular reference to any existing situation, or
for that matter, with reference to conditions in any one country.
The experience of the several countries of the world will be
drawn upon. In the words of the charter of the Foundation
it is intended for "the well-being of mankind throughout the
world," and the means taken to further this end, both as re-
gards the subjects to be investigated and the methods of in-
quiry, will be in keeping with the high purpose thus expressed.
In going to another country and selecting as the person to
have the direction of this most important work, one whose
public services have gained for him an outstanding position as
a leading authority on industrial problems, the Trustees have
shown their desire, not only to free the Foundation from any
suspicion of interest or prejudice in the investigation of the
most controversial of all problems, but also their readiness to
enlist the services of the best men available, no matter where
they are to be found. It is no small guarantee of the spirit
in which the work of this investigation will be carried on, that
Mr. Mackenzie King, after years of public service in the hand-
ling of labor problems, has, by his known impartiality and
disinterested purpose, retained the good-will, confidence, and
reject of employers and representatives of labor alike.
The following outline of his career may serve to illustrate
to what a degree Mr. King is specially qualified for the im-
portant work he has undertaken. It illustrates wherein he
brings to the task the mind of a scientific investigator, the sym-
pathy of the social worker, and the practical experience of a
man of afFairs.
Mr. Mackenzie King is a graduate in Arts and Law of the
University of Toronto. From 1896 to 1900 he pursued post-
graduate studies in the United States, first as Fellow in Politi-
cal Economy at the University of Chicago, and later as Fellow
at Harvard, from which University he received the degrees of
Master of Arts and Doctor of Philosophy, and was awarded a
Fellowship to travel abroad. Later he was appointed In-
structor in Political Economy on the Harvard staff, but re-
signed this position to organize in Canada a Department of
Labour, as a new department of the Canadian Government
For eight years he held the position of Deputy Minister of
Labour for Canada, a position corresponding to that of Com-
missioner of Labor in the United States. During that time
he established and was editor of the Dominion Labour Gasette,
was Registrar of Boards of Conciliation and Arbitration, and
the author of numerous reports on labor problems. As the
result of investigations personally conducted by him, the sweat-
ing system was abolished in Government contracts, and a "fair
wages" policy introduced; laws for the protection of labor
against false representations leading to the importation of strike-
breakers, and unwarranted inmiigration placed on the statutes,
the laws respecting the employment of women and children in
textile factories modified, conditions of operatives in the tele-
phone exchanges improved, and the opium traffic in Canada
abolished. During several years, Mr. King acted as a conciliator
in strikes in the Dominion, the number exceeding forty and
embracing the most serious disputes in Canada at die time.
Experience gained in this way led to the provi^ons of the In-
dustrial Disputes Investigation Act, of which Mr. King is the
author, and which has reduced the number of strikes in mines.
THE BOCKEPEIiiEai FOUNDATION 75
transportation companies, and public utilities by between eighty
and ninety per cent, in seven years. In igtdS Mr. King re-
signed the position of Deputy Minister of Labour, and entered
Parliament as member for North Waterloo. He was taken into
the Cabinet of Sir Wilfrid Laurier as Minister of Labour, the
first in Canada to occupy this position as the holder of a sepa-
rate portfolio in the Government. He remained a member of
the Laurier Administration until its defeat in September, 191 1.
As Minister of Labour he instituted several far-reaching and
important investigations, including an inquiry into prices and
the cost of living, the appointment of a Royal Commission on
Industrial Training and Technical Education, and the enact-
ment of important legislation respecting the control of the
opium traffic and the sale of morplune and other habit-forming
drugs. He also secured the enactment of the Canadian Com-
bines Investigation Act, of which he is the author, and under
which the monopolies, trusts, mergers, and combines in Canada
are regulated.
A large part of Mr. King's work has had to do with the
important question of Oriental immigration. He has served on
many Royal Commissions in this connection, having settled on
behalf of tide Government of Canada claims on the part of
the Japanese and Chinese arising out of losses occasioned by the
Anti-Asiatic riots in British Columbia some years ago, and
having conducted an extensive inquiry into the whole question
of immigration from the Orient. He negotiated the agreement
between England, India, and Canada regarding immigration
from India. His investigations in Canada were supplemented
by personal visits to the countries concerned, and by direct
negotiations with the Governments of India, China, and Japan.
In 1906 Mr. King was made Companion of the Order of St
Michael and St. George by the late King Edward VII m
recognition of public services. Later he was chosen by the
Imperial Government as one of the British delegates to the
International Opium Conference, which met at Shanghai,
China, in 1908. In 1910 he was chosen a Fellow of the Koyal
Society of Canada, and in 191 1 was made the President of
the Ontario Reform Association, which position he still holds.
He also organized and is Chairman of the Canadian Association
for International Conciliation. Having been a Cabinet Mimster
in a Canadian Administration, Mr. King remains a member ot
the Privy Council of Canada for life.
(Released for Publication in Morning Papers of Sunday,
October 4.)
wrn? TTTT? PRESERVATION OE BIRD LIFE OF THE
nSh AMERICAN CONTINENT, THE ROCKE-
FFTT ER FOUNDATION HAS PURCHASED 85.000
ACmI OF LAND ON THE GULF OF MEXICO AND
HAS PLACED IT UNDER THE PROTECTION OF
THE LOUISIANA CONSERVATION COMMISSION.
New York, October 3, i9i4.-For the purpose of eftablishing
smother wild fowl refuge on the northern shore of the Gulf of
Medco the Rockefeller Foundation . has purchased the Grand
Chlnier tract containing 85,000 acres m the parishes of Cameron
and Vermillion, Louisiina, at a cost of approximately $225,000.
76 THE BOCKEFEIiLEB FOUNDATION
An announcement to this effect was made by the Secretary of
the Foundation to-day, upon the execution of a deed from the
Rockefeller Foundation placing the land for an initial term of
five years under the protection of the Louisiana Conservation
Commission. The Commission, on its side, has formally accepted
the tract and has undertaken to protect it by game-wardens.
This purchase, the arrangements for which have consumed
more than a year and a half, is another step in the programme
to establish throughout the winter feeding and resting grotmds
of birds, and along their migration routes, suitable preserves
where tiiey can be protected at all times of the year and be_ safe
from persecution. It is due to the intelligent and public-spirited
activity of Mr. E. A. Mcllhenny of Avery Island, La., who
brought the matter to the attention of the Rockefeller Founda-
tion through Mr. Starr J. Murjjhy, one of its Trustees. Mr.
Mcllhenny has already been distinguished among the defenders
of bird life in America by his promotion of bird preserves in
different parts of the country.
The Grand Chenier tract is full of shallow ponds, lakes and
bayous, abounding in cover for the protection of birds against
storms. It produces an enormous quantity of natural food,
sufficient to provide for the vast number of birds from the North
which winter along the Gulf coast.
The great tract purchased by the Rockefeller Foundation is an
integral part of the "wild life preserve system" for which per-
sons interested in the welfare of birds have been working for
years. It is only a few miles from Marsh Island, purchased,
upon the recommendation of Mr. Mcllhenny, in 1912, by Mrs.
Russell Sage for a bird refuge, at a cost of about $150,000.
Marsh Island was for many years the greatest slaughtering
ground for ducks in North America.
The Grand Chenier tract and Marsh Island are a part of a
preserve of 500 square miles with a frontage of 75 miles on the
Gulf coast, which it is proposed to acquire. Included in this
preserve will be the 60,000 acres previously dedicated to wild
life preservation by Mr. Mcllhenny.
The purchase by the Rockefeller Foundatiott constitutes the
greatest gift ever made to the preservation of bird life in
America, with the exception of the bequest of David Wilcox to
the National Association of Audubon Societies. This bequest
amounted to $332,000. Bird lovers believe it will mark one of
the most important steps ever taken for the preservation of
migratory fowl, because they expect it to stimulate interest in
establishing preserves in other sections of the United States
and Canada.
The wild fowl preserve on the Gulf shore of Louisiana afJords
wmter shelter for myriads of migratory songbirds, woodpeck-
ers, and shore birds, all of which are of great service in the
North when msects are busy in field, orchard and garden.
For half a century countless thousands of ducks and geese
have been shot there for the market of New Orleans, St. Louis,
Cmcmnati, and Chicago. The species most commonly taken
were mallards, black-duck, teal, and canvasback. Under the
new conditions the birds which are preserved each winter on
this great tract will spread out every spring in a great fan^haped
flight reaching all the way to Manitoba and spreading out in
every direction. *
The tract is not far from New Iberia, where it is estimated
THE EOCKEFELLER FOXJiSTDATION 77
50,000 robins are killed for food every winter. It is also near
the famous Mcllhenny heron rookery at Avery Island, where
fully 20,000 egrets and heron breed their young in absolute
security. These birds are expected to colonize the other tracts
which have been acquired for their use.
New York, October 31, 1914.
Mr. John D. Rockefeller, Jr., as President of the Rockefeller
Foundation, authorizes the following statement:
"It having become clear that one of the most terrible and ap-
pealing effects of the war will fall upon the non-combatants, —
those most innocent of any part in the cause or the conduct of
the conflict, — ^the Rockefeller Foundation has determined to
exert itself to the extent, if necessary, of millions of dollars, for
the relief of non-combatants in the various countries involved.
"This action is taken as a natural step_ in fulfilling the char-
tered purposes of the Foundation, namely, 'to promote the well-
being of mankind throughout the world.'
"I have written the American Ambassador in London that
'we foresee the -probability that large resources will be very
much needed for rehabilitation at a time when the resources
now being drawn upon for immediate relief will be perhaps very
nearly exhausted. Under the circumstances, we feel the need
of further advice.'
"In order to obtain expert opinion as to the time, place and
means of rendering aid most effectively, the Foundation has
arranged to send to Europe within the next few days a Com-
mission which shall visit the countries affected and advise
us first hand. The Chairman of the Commission will be Mr.
Wickliffe Rose, Director General of the International _ Health
Commission, whose successful experience in orgranizing the
campaign against hookworm disease in various parts of the
world peculiarly fits him for the task.
"We are also seeking to enlist the co-operation of one or two
others, experienced in the administration of relief to those in
need.
"The sending of such a mission will not render unnecessary
the efforts of other agencies of relief, for the need is widespread
and millions of people are suffering. All steps which the Rocke-
feller Foundation takes will, of course, be absolutely neutral.
"To avoid delay and to provide relief at the earliest possible
moment for the suffering people of Belgium, the Foundation
has chartered the largest neutral ship available in New York
Harbor, and purchased a full cargo of supplies, to be dis-
patched immediately.
"This action will but supplement the public-spirited efforts of
the Belgian Relief Committee, of which Mr. Robert W. De-
Porest is Chairman. That the necessity is vital and worthy
of the heartiest support is indicated by the following cable-
grams which, in reply to inquiries, we have received from Mr.
Page, the American Ambassador at London:
"'Belgians on verge of starvation. I emphatically regard it
most opportune to help. I have never known such a case of
need. Committee to distribute food consists of prominent
Americans here and influential Belgians in Belgium and Ameri-
can Minister and Consuls in Belgium all under my direction.
78 THE BOOKBFELLEB FOUNDATION
British Government forbids export of food and no food can be
bought on continent. Help needed is food and clothing for
women and children.'
" 'It will require a million dollars a month for seven or eight
months to prevent starvation. In fact, many will starve now be-
fore food can reach them. No food can be bought and exported
from any country in Europe. Every dollar you choose to give
will save or prolo'ng a human life if you give it quickly enough.
No other time will come in any land when there can be greater
need. Do not send money. Buy six parts wheat, two parts rice,
two parts beans, and ship in neutral ships consigned to Ameri-
can Consul at Rotterdam. Inform me when you ship and I will
arrange all diplomatic requirements for landing, for transit
to Belgium and for distribution in small quantities by the Com-
mission of Relief, which as a means of reaching all the people
have takem over all grocery stores.'
"Immediately upon receiving these messages, the Rockefeller
Foundation enlisted the co-operation of the shipping department
of the Standard Oil Company of New York in securing the
vessel, and at the same time gladly availed itself of the volun-
tary services of Mr. Lionel Hagenaers, a_ Belgian now resident
in New York and member of the Belgian Relief Committee,
in purchasing the cargo._ The Foundation encountered con-
siderable difficulty in finding a capacious vessel, and the pres-
sure- upon the market for foodstuffs was such that it was im-
possible to comply exactly with Ambassador Page's suggestions
as to proportions. To fill and despatch the ship called for an
expenditure of about $275,000.
"On next Tuesday morning, therefore, the Massapequa, of the
New York & Porto Rico Steamship Company, will sail direct to
Rotterdam, Holland, laden with 4,000 tons of supplies, consigned
to the American Consul. The cargo will consist of:
28,500 barrels of Flour.
14,000 packets (100 lbs. each) of Rice.
3,000 bags (200 lbs. each) of Beans.
1,000 boxes (100 lbs. each) of Bacon.
"The British Consul has kindly agreed to certify that these
supplies are absolutely for the aid of non-combatants and should
not be delayed in transit.
"The extraordinary need in Belgium is further indicated by
the following cablegram received from Mr. H. C. Hoover,
of the American Relief Committee in Londo^n:
"'Have received reports from members of our Commission,
from the American Minister in Brussels, and from local officials
that within three weeks the last vestige of foodstuflfs in Bel-
gium will have been exhausted and the entire population of over
seven million people will be faced with starvation. "The mini-
mum supply of foodstuffs required amounts to about ninety
thousand tons of cereals per month, together with bacon or
lard. The minimum monthly expenditure required is from
four to five million dollars, of which some part returnable
through sales. It therefore appears that the problem of feeding
the people of Belgium transcends other Belgian relief. The
one function of Americans in Belgian relief is the purchase and
dispatch of food. We have expended every dollar that we have
THE BOCKEFKLL.EB FOUNDATION 79
received in the purchase and dispatch of foodstuSs already, and
it will take all the funds we can raise here to take care of
emergency pending arrival of stuffs from America.'
"It is obvious that no philanthropic exertion will be too
great to relieve the acute suffering of those victims of the war
who are innocent of any participation in it."
New York, November 8th, 1914.
In order that there may be the greatest dispatch in collecting
foodstuffs for the reUef of the non-combatant people of Bel-
gium, the Rockefeller Foundation in addition to the measures
of relief initiated by itself, has arranged to provide a steam-
ship pier, to charter ships, and to convey free of charge from
New York to Belgium such supplies as the public may wish to
contribute.
This plan is in co-operation with the Belgian Relief Committee
of New York of which Mr. Robert W. DeForest is chairman.
The purpose is that through the facilities provided by the Foun-
dation and the activities of the Committee in collecting funds
and supplies, various individuals and agencies throughout the
country, who desire such co-operation, may make their assistance
most timely and effective.
To this end Mr. Robert W. DeForest aind Mr. John D. Rocke-
feller, Jr., on behalf of the Foundation and the Committee, have
joined in an appeal to the public of the United States to give
either in money or supplies for Belgian relief.
Arrangements have been made with the Bush Terminal in
New York to act as a receiving depot. The Rockefeller Foun-
dation is negotiating to obtain as quickly as possible another
large neutral ship. As rapidly as a cargo is collected it will be
forwarded direct to Belgium.
The facilities thus provided insure that any contribution in
money will be expended solely for supplies, and in no part for
organization or distribution charges. Any person who gives
either in money or in food can be certain that the whole of his
contribution will reach some one in Belgium who needs help.
Following the announcement that the Rockefeller Founda-
tion would send a Commission of experts to Europe to advise
as to time, place and means whereby relief can be best pro-
vided for needy non-combatants in all the warring countries,
that Commission has now been constituted as follows: Mr.
Wickliffe Rose, Chairman, Director General of the International
Health Commission; Mr. Erbest P. Bicknell, National Director
of the American Red Cross, whose services hax-e been loaned
for this purpose to the Rockefeller Foundation, and who has
had exceptional experience in the conduct of relief after the
San Francisco Earthquake in 1906, and in other disasters.
In reference to the War Relief Commission, the plans for
sending cargoes of supplies to Belgium, and as to whether the
f lacing of mines in the North Sea would interfere. Ambassador
'age of London has cabled as follows:
"Hurry Rose. North Sea adds no difficulty or danger,
British Navy will convoy your ship. The International Com-
mission for Relief here organized committees in Holland and
Belgium under diplomatic arrangements made by governments
of the United States, Spain, Holland, and Belgium, and have
80 THE BOCKEFBLLEB FOTTNDAXION
secured guarantee of safety from German military authorities,
and made a perfect system for distribution by Belgians in every
neighborhood in Belgium. This does not call for the sending
of money to England. It calls only for food to be sent to
starving women and children in Belgium and this is the only
channel."
The War Relief Commission will sail for Europe on the
steamship "Lapland" next Wednesday. They will go direct to
Liverpool, and then to Belgium. As rapidly as meir recom-
mendations are received, the Rockefeller Foundation will take
steps to carry them out. The public will be fully advised of
the conditions as reported, for the co-operation of all Americans
will be required if this vast problem is to be solved.
BELGIAN RELIEF— FOOD SUPPLY.
An Appeal to the American People.
The Belgian Relief Committee in New York appeals to the
people of the United States to relieve the distress of the un-
fortunate people of Belgium whose homes have been devastated
by the war, and who are now in desperate need of food. We
are advised by the American Committee in London that, in
order to meet the absolute necessities, food must be imported
in very large quantities from America. The Belgian Relief
Committee, with the co-operation of the Rockefeller Founda-
tion, has made the following arrangements:
Chambers of Commerce, Boards of Trade, Trade Associations,
Women's Clubs and other organizations or individuals through-
out the United States wishing to make contributions may do so
in either of two ways:
1. By sending contributions of money to the Belgian Relief
Committee, No. lo Bridge Street, New York City. Checks
should be drawn to the order of Belgian Relief Committee.
All receipts will be acknowledged and credited to the organiza-
tions, committees, or individuals from which they come, and the
Belgian Minister will be kept 'informed of contributions re-
ceived. The concentration of money contributions in the hands
of the New York Committee will avoid competition in the
purchase of supplies and the consequent increase in prices.
2. By shipping any of the following articles^ charges pre-
paid, preferably in carload lots:
WHEAT PEAS
FLOUR BEANS
RICE CANNED GOODS
COFFEE 04 chicory) CURED OR SALTED MEATS
Perishable goods, such as potatoes, apples, or other fresh
fruits, cannot he accepted.
All shipments should be consigned to the Belgian Relief Com-
mittee, Bush Terminal, Brooklyn, N. Y. As shipments will
have to stand railroad journey, transfer at New York, and a
long sea voyage, they should be shipped in good strong packages.
Individual packages should have a tag showing the contents.
The Rockefeller Foundation will bear the expense of ocean
transportation of all supplies thus furnished to the European
THE BOOKEFELiEE FOUNDATION 81
port most accessible to Belgium. As the extent of need and
Uie amomit of suppUes which will be contributed cannot now
be predicted with certainty, this ofiEer of the Foundation will
tor the present apply only to shipments received in New York
on or before December 31st, 1914, but is subject to renewal if
circumstances require.
There is no purpose to interfere with the entire freedom of
any mdividual or organization to render aid in his or its own
way. But rather to provide efficient transportation and distribu-
t%ow facthties which may be freely utilized by all who may de-
tire to avail themselves of such co-operation.
To save hundreds of thousands of Belgians from starvation
It IS evident that very large demands will have to be made
upon the generosity of the American people. The Belgian
Relief Committee and the Rockefeller Foundation having de-
termined to co-operate in sending relief as promptly and effi-
ciently as possible, now join in asking the good people of this
country to do their utmost in tliis extreme emergency.
The arrangements for distribution have been made by the
American Committee in London of whidi Ambassador Page
is Chairman, and provide for distributing stations in Belgium
under the_ immediate supervision of the American Consuls
in the afficted region. Every precaution seems to have been
taken to ensure the delivery of supplies to needy persons for
whom_ otherwise no provision whatever would be made.
_ Serious problems will undoubtedly arise as to the organiza-
tion of relief measures, including the great task of rehabilita-
tion which must follow emergency relief. In order that the
aid coming from America may be constantly guided by the
most reliable information as to llie location and extent of
need and the methods of relief, the Rockefeller Foundation is
sending a War Relief Commission to Europe to supply this
information from time to time. The public will be kept in-
formed concerning the progress of relief measures so that the
extent and manner of its participation may be most wisely
determined.
All communications should be addressed to the Belgian Re-
lief Committee, 10 Bridge Street, New York City.
ROBERT W. De FOREST, Chairman Executive
Committee, Belgian Relief Committee, New York
JOHN D. ROCKEFELLER, Jb., President.
Rockefeller Foundation, New York.
BELGIAN RELIEF COMMITTEE IN NEW YORK
Emanuei, Havenith, Belgian Minister to the United States.
PiEnae Mau, Belgian Consul General in New York.
Rev. J. F. Smuemans, President.
RoBEKT W. De Fokest, Chairman of Executive Committee.
LYMAN ABBOTT Rev. O. A^^NYS ^„„^„„
ARMAND BATTA H. FAIRFIELD OSBORN
JAMES M. BECK W. BARCLAY PARSONS
CORNELIUS N. BLISS BERNARD RAAP
ROBERT S. BREWSTER JOHN VAN RICKSTAL
HENRY W. De FOREST THOMAS THACHER ^
CLEVELAND H. DODGE FRANK A. VANDERLIP
LIONEL HAGENAERS ALFRED T. WHITE
THOMAS H. HUBBARD
82 THE BOCKEFELiUEB, FOUNDATION
26 Broadway, New York.
December 7, 1914.
Mr. Jerome D. Greene, who, for a year or more past has
divided his time between acting as a member of Mr. John D.
Rockefeller's personal staff and as secretary of The Rockefeller
Foundation, has been obliged, on account of the increasing de-
mands of the latter position, to suspend his activities as a mem-
ber of Mr. Rockefeller's staff and will for the present devote
his entire time to the executive work of The Rockefdler Foun-
dation.
Mr. Ivy L. Lee, now Executive Assistant to the President
of the Pennsylvania Railroad, has accepted appointment as an
additional member of Mr. Rockefeller's staff, the other members
of which beside Mr. Greene are Messrs. John D. Rockefeller,
Jr., and Starr J. Mtirphy.
Mr. Lee is a graduate of Princeton University. After several
years' journalistic work he served for three years as general
manager in Europe for Messrs. Harris, Winthrop & Co., Bank-
ers. He returned two years ago to become associated with the
Pennsylvania Railroad.
Mr. John D. Rockefeller, having retired from active business
fifteen or twenty years ago, his staff, of which Mr. Lee becomes
a member, are his immediate advisers in matters both of busi-
ness and philanthropy, and are his direct representatives in the
various corporations in which he is financially interested and
on the large philanthropic boards which he has created.
RELEASED FOR PUBLICATION MONDAY,
DECEMBER 7, iPU-
Mr. John D. Rockefeller, Jr., a^ President of the Rockefeller
Foundation, authorizes the following statement:
The international interest aroused in the work of the Rocke-
feller Foundation through its efforts on behalf of Belgian relief
has led to innumerable inquiries for details as to its work and
purposes. The fact that the Federal Commission on Indus-
trial Relations is contemplating an investigation of the Founda-
tion's plan to conduct an inquiry into industrial relations indi-
cates a further interest in the Foundation's activities.
Its object being wholly one of public service, the policy of the
Foundation is to furnish current information with reference to
its work,_ hoping thereby to enlist that confidence and active
co-operation on the part of the public which is so necessary to
the successful fulfillment of its purposes. It therefore seems
fitting at this time to make a brief statement of the more import-
ant work so far accomplished and planned, to be followed by
the annual report now in preparation, which will contain full
details of the Foundation's activities and finances.
The Foundation has thus far despatched one shipload of
food, 4,000 tons, to Belgium, which has already been received
and distributed; it is now loading a second ship in New York
harbor, which will carry 6,500 tons, and has purchased for de-
livery at Philadelphia to a third ship 280,000 bushels of wheat.
These three shiploads represent an expenditure of about $1,000,-
000. It has also sent a Commission to Europe, to advise as to
how and where further relief to non-combatants may be most
effectively provided, and is ready to spend millions of dollars, if
necessary, in this direction.
Realizing also that the war and the industrial depresssion
THE BOOKBFEIAiBB FOUNDATION 83
have created great want at home, the Foundation, acting upon
requests from various local charitable organizations, has just
voted to contribute $4S.ooo to assist in the relief of the poor
of New York City. Of this amount, the Association for Improv-
mg the Condition of the Poor will receive $2S,ooo; the Charity
Organization Society, $10,000; and the Brooklyn Bureau of
Chanties, $10,000.
The Foundation has established the International Health
Commission, the purpose of which is to extend, not only in this
country but to foreign countries and peoples, the work of eradi-
cating the hookworm disease and the establishment of agencies
for the promotion of public health and sanitation. The Commis-
sion is already at work in the British West Indies, Central
America, Ceylon, the Malay States and the Philippines.
Last spring the China Medical Commission was appointed, to
study the needs of medical education and public health in China,
and _ its important and far-reaching recommendations are now
receiving consideration.
Other appropriations of special public significance are as fol-
lows:
$2,550,000 to the Rockefeller Institute for Medical Research,
for addition to land, buildings and endowment.
$750,000 toward the fund being raised by Wellesley College,
because of the emergency resulting from its extensive fire loss.
$225,000 for the purchase of a tract of 85,000 acres on the
Louisiana Coast of the Gulf of Mexico which has been turned
over to the Louisiana Conservation Commission, as a refuge
for migratory birds, which gather here in winter from all parts
of the North American continent._ This was done to prevent
the wanton destruction of this wild life, so important to the
agricultural interests in keeping down the insect pests, which, it
is estimated, inflict a loss upon the country of upwards of $400,-
000,000 a year.
Next in public interest to the Belgian relief work has been
the establishment of a department for the investigation of in-
dustrial relations, to direct which Mr. Mackenzie King, formerly
Minister of Labor of Canada, has been appointed.
For several years past Mr_ John D. Rockefeller and his ad-
visers have had under consideration the establishment of an
organization for social and economic research. Upon the estab-
lishment of the Rodcefeller Foundation one of the first matters
discussed was the advisability of the organization of such an
institution, and a committee of leading economists and_ business
men was created to consider whether such an organization could
wisely be established.
While the general subject of economic research was under
consideration, the industrial disturbances in Colorado impressed
the President of the Foundation with the great need and public
importance of finding an effective means of preventing such
conflicts and caused him to urge a far-reaching study of indus-
trial relations as the most important immediate inquiry to which
the Foundation could direct its attention.
In view of the passion aroused in Colorado and many diverg-
ent interests involved there, it was felt that the Foundation itself
should not interfere in that situation, but that it was of the ut-
most consequence that the root causes of that and similar dis-
turbances should be ascertained, and, if possible, removed, not
only in Colorado but elsewhere.
84 THE BOCKEFEIiLEB FOUNDATION
The Rockefeller Foundation is, moreover, a large owner of
corporate securities, and in that capacity is itself directly con-
cerned in maintaining harmonious relations between the compa-
nies in which it is interested and their employes. It was there-
fore felt that if the Fotmdation could work out on a basis com-
patible with sound economics a substantial improvement in the
relations between capital and labor, it would not only be dis-
charging its obligation as indirectly a large employer of labor,
but would also perform for the general public a greater social
service than it could render along usual philanthropic lines. It
was also felt that there was hardly an3rthing the Foundation
could do which would more effectively conform to its chartered
purposes, namely, "to promote the well-being of mankind."
Realizing that the success of such an endeavor would depend
almost entirely upon the character and attainments of the per-
son conducting the work, the Foundation felt itself peculiarly
fortunate_ in being able to enlist the co-operation of Mr. Mac-
kenzie King, who had had wide experience in the actual solu-
tion of labor problems in Canada.
_Mr. King has from the outset indicated to the Foundation
his desire to avoid any form of organizatiofn which may cause
it even to appear that his work is intended to rival or encroach
upon the work of existing organizations, and in particular the
work properly assignable to government departments and
agencies.
In spirit and method the work will be akin to that of the
Rockefeller Institute for Medical Research. In so far as Mr.
King's inquiries have to do with industrial controversies, his
attitude will be that of a [>hysician who investigates the nature
and causes of the pathological conditions with which he has to
deal, with a view, if possible, to the discovery of effective reme-
dies.
It cannot be too clearly understood that the purpose of this
inquiry is not to apportion blame in present or past misunder-
standings, nor to justify any particular point of view; the sole
purpose is to be constructively helpful. The final and only test
of the work will be the degree to which the constructive sug-
gestions growing out of the investigation actually improve the
relations between capital and labor.
The foregoing summarizes the major activities so far under-
taken by the Foundation. A statement covering completely
the finances of the Foundation is in preparation and will be
made public.
RELEASED FOR PUBLICATION TUESDAY,
DECEMBER 8th.
In the general summary of its work and plans given out
yesterday, the Rockefeller Foundation announced that it was
preparing for publication in advance of its annual report, a
complete statement of its finances.
The funds of the Foundation, all of which were contributed
by Mr. John. D. Rockefeller, consist of securities the market
value of which at the time they were donated was $100,000,000.
In making this gift, Mr. Rockefeller expressly empowered the
Directors of the Foundation in their discretion to utilize either
the principal or the income or both for the chartered purposes
of the Foundation, namely, "to promote the well-being of
mankind throughout the world."
THE BOOKEPEULiEB FOUNDATION 85
The Directors of the Foundation are Messrs. Charles W.
Eliot, President Emeritus of Harvard University; Dr. Simon
Flexner, Scientific Director of the Rockefeller Institute; Fred-
erick T. Gates ; Jerome D. Greene ; A. Barton Hepburn, Chair-
man of the Board of Directors of the Chase National Bank;
Charles O. Heydt; Harry Pratt Judson, President of the Uni-
versity of Chicago; Starr J. Murphy; John D. Rockefeller,
John D. Rockefeller, Jr., and WickliflEe Rose, Director Gen-
eral of the International Health Commission.
The income of the Foundation to date has been approxi-
mately $5,500,000, its appropriations approximately $6,500,000.
The funds which Mr. Rockefeller has given to the Founda-
tion are as follows (shown in Schedule D., p. 27) :
It was for many years the custom of Mr. Rockefeller in
dealing with applications or suggestions concerning philanthropic
objects to base his decision upon an expert investigation of
the merits of each case. As time went on, the task of deciding
wisely upon an ever increasing mass of applications, and, what
was even more important, of providing the constructive imagi-
nation necessary for intelligent philanthropy, became more and
more onerous.
For these reasons, Mr. Rockefeller felt the need of organiza-
tions or groups of counsellors specially fitted to deal with
such matters, and which should be independent of the life of any
individual. He has accordingly for the past fifteen or twenty
years delegated his activities in this direction more and more
to the various organizations and institutions he has created.
The more important of these, each with its separate and in-
dependent funds, are: The General Education Board, The
Rockefeller Institute for Medical Research and The Rockefeller
Foundation.
STATEMENT ISSUED JANUARY 1, 191S.
The S. S. "Massapequa" was despatched to Rotterdam by the
Rockefeller Foundation yesterday with 3,500 tons of food and
clothing for the Belgian war sufferers. This is the second
voyage of the "Massapequa," which was the first of the Belgian
relief ships to leave this country. ...
The Foundation has now spent over $1,000,000 on ships and
cargoes for Belgian relief. The "Massapequa" sailed on her
first voyage November 2, with a cargo purchased by the Foun-
dation. The next ship despatched was the "Agamemnon, De-
cember 4, with 2,800 tons of food purchased by the Belgian
Relief Committee and the Committee of Mercy. The Neches
sailed on December 12, with 4,800 tons of food supphed en-
tirely by the Rockefeller Foundation.
The "Massapequa" yesterday carried a cargo made up ot
donations received from all over the United States, in response
to the joint appeal of the Foundation and the Belgian Kehet
Committee. ., , r i. 1. i
In addition, the Foundation supplied a cargo of wheat for
the S S "Ferrona" which was despatched from Philadelphia
December 23, by the Commission for Relief in Belgium.
The first object of the Rockefeller Foundation in tatang up
the matter of Belgian relief in October was to start with the
least possible delay the stream of food supplies flowing into
Belgium from this country. In the extreme emergency that
was presented considerations as to the efficiency of the dis-
86 THE BOCKBFBLJiEB FOTTKDATIOK
tributing organization in Belgium, and as to the possibility of
obstacles being confronted in the course of distribution, had
to be delayed for later inquiry, but st^s were taken to make
such inqiury at the earliest possible moment. Accordingly a
War Relief Commission was appointed consisting of Messrs.
Wickliffe Rose, Director General of the International Health
Commission, Ernest P. Bicknell, National Director of the
American Red Cross and Henry James, Jr., Manager of the
Rockefeller Institute for Medical Research, and this Commission
sailed for Europe on November ii, 1914. The Commission
found the London organization of the American Commission
for Relief in Belgium active and efficient. The Rockefeller
Commission then proceeded to Rotterdam and Belgium, and
for several weeks studied the extent of the need and inspected
the distributing agencies, with the result that they were able
to give the highest praise to the joint activities of the American
Commission, the Belgian relief agencies and the Diplomatic
authorities of the several countries concerned. The Commis-
sion is now giving its consideration to other aspects of war
relief in Europe and a further report is shortly expected.
THE BOCKEFELLEB FOUNDATION 87
Publicity Material used in 1912 and 1913.*
THE PROPOSED INCORPORATION OP THE ROCKE-
FELLER FOUNDATION IN THE DISTRICT OF
COLUMBIA.
In the spring of 1910 a bill was introduced in the United
States Senate to incorporate the Rockefeller Foundation. The
ob^'ect of the incorporation was stated in the following terms:
"To promote the well-being and to advance the civilization of
the peoples of the United States and its Territories and posses-
sions, and of foreign lands, in the acquisition and dissemination
of knowledge; in the prevention and relief of suffering; and in
the promotiont of any and all of the elements of human prog-
ress." To this end the corporation was further authorized to
establish, maintain, and endow, or to aid others, whether indi-
viduals, associations, or corporations, to establish, maintain, and
endow, institutions and other agencies for carrying on said
objects. The membership of the corporation was to be not less
than five nor more than twenty-five. The term of membership
was to be three years, and elections were to be by co-optation.
No limitation was placed upon the amount of funds which the
corporation might hold. Provision was made for the exemp-
tion from taxation of personal property and funds applied to
the uses of the trust, but real estate was inot specifically exempt.
No officer, trustee, member, or employee was to receive any
pecuniary benefit from the operations of the corporation, except
reasonable compensation for services. The transactions of the
corporation were to be annually reported to the Secretary of
tile Interior, and, finally, the charter was to be subject to altera-
tion, amendment, or repeal at the pleasure of the Congress of
the United States.
The publication of the terms of the proposed charter was fol-
lowed by wide public discussion and some adverse criticism.
The principal objections urged were: that there should be some
limitation on the power of members of the corporation to elect
their successors; that there should be a limit to the amount
of money that could be heaped up for puriwses subject to so
broad a definition as that given by the charter ; that the Founda-
tion should not necessarily be perpetual, but that it should be
subject to termination and to the distribution of its funds at
some period in the future; and, finally, that the control of the
Fovmdation should be more specifically vested in Congress.
These criticisms were carefully considered by Mr. Rockefeller
and his advisers in the friendly spirit which for the most part
prompted them, with the result that the bill for the incorpora-
tion has now been reintroduced in an amended form. The
changes in the bill amount merely to a specific statement of
limitations that might at any time have been incorporated in the
charter under the power of amendment given to Congress by
the last section. Nevertheless the incorporators have felt that
•See Question 25 (b) & (c) on page 49.
t.The present bUl adds here tie words "by eleemosynary and philan-
thropic means."
88 THE HOCKEPBUJEE FOUNDATIOM'
there were advantages in making some or all of the proposed
changes in the charter upon its original passage.
The first important amendment specifically stated that Con-
gress might at any time impose such limitations upon the ob-
jects of the corporation as the public interest should demand,
and that all gifts or property received by the corporation should
be held subject to this provision. The total amount of prop-
erty was specifically limited to one hundred million dollars, ex-
clusive of increases in the value of property subsequent to its
receipt.
The next amendment provided that the income of the cor-
poration should not be accumulated or added to the principal,
but should be currently applied to the purposes for which the
corporation was created, subject only to such reasonable delay
as might be necessary in the wise administration of the fund.
The next amendment provided that after the expiration of
fifty years from the receipt of any property, the corporation
might distribute the principal as well as the income with the
consent of two-thirds of the members of the corporation; and
that such distribution should take place after one hundred years
from the time the property was received if Congress should
so direct.
The self-perpetuating clause was amended by the provision
that the election of new members of the corporation should be
subject to disapproval within sixty days by a majority of the
following persons : The President of the United States, the
Chief Justice of the Supreme Court, the President of the Sen-
ate, the Speaker of the House of Representatives, and the Presi-
dents of the following institutions: Harvard University, Yale
University, Columbia University, Johns Hopkins University,
and the University of Chicago.
To make it clear that the charter did not attempt to exempt
from taxation property that would otherwise be taxable under
the laws of any State in which it might be held, an amendment
was made clearly limiting to the United States, or any Terri-
tory or District thereof, the provisions of the exempting clause.
Subsequently the charter has been amended by the framers
by increasing the minimum number of members of the corpora-
tion from five to nine,_ and by some minor verbal changes calcu-
lated to strengthen still further those provisions of the charter
which are designed to guard against any possible diversion of
the trust from the spirit and intent of its stated purposes.
The adoption of these amendments in deference to helpful
criticism seems to have removed all reasonable opposition to the
incorporation of the Rockefeller Foundation. No one who has
read carefully the terms of the charter, or who has observed
the spirit in which suggestions and criticisms have been received,
can fail to see with satisfaction these three manifestly controll-
ing motives in the mind of the founder: First, a desire to se-
cure during the visible future the continuation of the method
of careful philanthropic investment which has characterized
Mr. Rockefeller's benefactions during his lifetime. Second, a
desire to prevent the "dead hand," or as some one has aptly
observed, "a dead legislature," from hampering in the distant
future that use of the fund which would most nearly accord
with the contemporary wisdom of future generations. The
third motive actuating the incorporation of the Rockefeller
Foundation, and expressed in its charter, is the desire to make
XHX BOOEEVMAiBB FOUNDATION 89
this munificent gift directly to the whole American people, and
forever subject to the control of their elected representatives.
This provision not only possesses a sentimental advantage which
the charter of a single State would not afford, but it expresses
an implicit confidence in the stability of our national life and
in the will of the people to deal justly, both now and forever,
with the high purposes of the proposed Foundation.
A valid reason for obtaining a special charter for die Rocke-
feller Foundation, instead of seelang incori>oration under the
District Code, is that, the scope of _ operations being limited
to no single State, or even country, it would be inappropriate
to have the charter subject to regulations designed chiefly, if
not exclusively, for local organizations of the District. The
founder wisely proposes to have the objects of the corporation
defined and controlled in accordance with the best contem-
porary wisdom from generation to generation as long as the
Foundation endures. He desires that the control thus exercised
shall represent the public opinion of the country, rather than
that of any single State or section. Otherwise, as between the
philanthropic interests of a single locality and those of the
whole country, the corporation, if under local control, might
wrongly prefer the former.
Some thirty-four organizations secured incorporation by the
United States between the year 1899 and the year 1907. Of these
the following have objects that from the standpoint of public
policy seem to be on all fours with those of the Rockefeller
Foundation. While the scope of operations of each is some-
what more limited, they all permit a fairly wide range of edu-
cational or philanthropic expenditure :
BILLS APPKOVeD.
American Academy in Rome. ■ ■ March 3, IQOS-
American Historical Association January 4, 1889.
Carnegie Institution of Washington April 28, 1904.
Carnegie Foundation for the Advancement of
Teaching •• March 10, 1906.
General Education Board (founded by John D.
Rockefeller) •• January 12, 1903.
National Child Labor Committee February 21, 1907.
This list shows that the precedent of incorporation by the
United States for philanthropic instittttions having a national
scope is now thoroughly established. It does not appear as a
result of the experience of any of these institutions that any
abuse or defect has developed; nor does it appear that_ any
form of local incorporation would have satisfactorily achieved
the ends of these organizations, whose members are, and prob-
abty always will be, distributed throughout the country.
One of the above organizations, the Carnegie Institution of
Washington, tried the experiment of incorporation under the
District Code, but very early was embarrassed by doubts as to
the propriety of carrying on work on a large scale in all parts
of the world under a form of incorporation the wording of
which was very evidently meant to apply to a local educational
institution. The Rockefeller Foundation would probably come
under a different section of the Code, but the general objec-
tions would be the same, to say nothing of the practically pro-
hibitive effect of the requirement that a majority of the incor-
porators should be residents of the District of Columbia — a
90 THE BOCEEFEUiKB FOUNDATION
requirement inconsistent with a proper freedom to select the
best men from all parts of the country.
The incorporation of the Rockefeller Foundation is intended
as a means of maintaining, for as long a period in the future as
the trustees or Congress may deem best, an approved method
of careful philanthropic expenditure. The scope of the charter
is purposely made wide, but wide only within the strict limits
of charitable intent. The aggrandizement of the members of
the corporation, or of the corporation itself, through the admin-
istration of the Trust, is expressly excluded by the provision
that no person connected with the Foundation shall derive any
pecuniary benefit therefrom other than fair compensation for
services, and that the income of the endowment shall be spent
each year — not added to the principal.
The characteristic of Mr. Rockefeller's benefactions in the
past is that they have been the means of stimulating rather than
replacing self-help and self-reliance. Thus the work of the
Commission for the Eradication of the Hookworm has been
carried on exclusively through State agencies with the co-opera-
tion of hundreds of local physicians, and has been made the occa-
sion of permanently improving the local public health organiza-
tions. The promotion of improved methods of corn and cotton
growing in the South by the General Education Board has not
been by flooding the agricultural communities with money they
have not earned, as a substitute for local enterprise, but by show-
ing through a few farms here and there, with a moderate ex-
penditure for instruction and demonstration, how a hundred
neighboring farms could, with their own labor, double or quad-
ruple their products. The endowment of education through
schools, colleges, and universities has stimulated the sense of
-local responsibility instead of destroying it, as is graphically
indicated by the fact that for about seven and a half millions of
dollars contributed conditionally through the General Educa-
tion Board to institutions of learning in all parts of tiie coun-
try since igos, about thirty-eight millions of dollars have been
raised by those institutions in fulfillment of the Board's condi-
tions. The sending of a single physician to Texas two months
ago by the Rockefeller Institute for Medical Research, has
resulted in the effective instruction of the public health authori-
ties and many private physicians in that State, once for all, as
to the method of dealing with a virulent outbreak of epidemic
cerebro-spinal meningitis. Incidentally the new curative serum
was administered to hundreds of persons, with a resulting de-
crease of the normal death rate from 75 per cent, to less than 25
per cent.
The" question how the Rockefeller Foundation is to spend
its money is a legitimate one for the public to ask before the
charter is granted, especially in the light of ignorant fore-
bodings lest a large sum of money might seek the protection
of a charter for private rather than for public ends. This
question is answered, first, by the unequivocal language of
the charter, pledging the use of the money exclusively for
charitable and humanitarian purposes, subject to the control of
Congress; and, secondly, by the concrete illustration of how
these same resources have been used, while under private con-
trol, through the General Education Board, the Sanitary Com-
mission for the Eradication of the Hookworm Disease, and
the Rockefeller Institute for Medical Research. It may be
THE BOCKEF£LIiEB FOUNDATIOK 91
confidently expected that far-reaching measures for the pro-
motion of public health along both educational and medical
lines will have the first attention of the trustees.
JEROME D. GREENE,
General Manager of the
Rockefeller Institute for Medical Research.
SOUTHERN BUILDING.
Washington, D. C, March is, 1912.
COMMENTS BY OPPONENTS OF THE ORIGINAL
DRAFT.
From "The Independent."
When a year ago Mr. Rockefeller asked that Congress
grant a charter for his Foundation, we hastened to call at-
tention to the possible dangers involved in the perpetuation of
so vast a trust, which might grow by accretion indefinitely,
and which would be controlled by a close board of self-per-
petuating trustees. These and other apprehe;nsions led Congress
to hesitate and fsiil to grant the charter. While these dangers
did not seem very imminent, and we presume the fund would
have continued indefinitely to perform its beneficent purpose,
it seemed wise to Congress to avoid a possible peril, and the
gift to the people was declined under the circumstances. * * *
But Mr. Rockefeller and his advisers were not discouraged
or ofiFended. They simply took back the offered charter and
carefully revised its draft to meet these and all other possible
objections.
First, the board of trustees is not to be an unlimited, self-
perpetuating body which may continue indefinitely in a course
which may be inimical to the public good. When a trustee dies
or resigns, the election of his successor can be vetoed by an
outside body, consisting of the President of the United States,
the Vice-President, the Chief Justice of the United States,
the Speaker of the House of Representatives, four men repre-
senting the people, and the presidents of five universities —
Harvard, Yale, Columbia, Johns Hopkins and Chicago. That
certainly ought to assure independence as well as necessary
continuity. These are men of the highest character, who know
equally what would imperil the interests of the people and
what are the demands of progressive research or public wel-
fare. If these men cannot be trusted no men can.
But let us suppose the five university presidents and the
Chief Justice are conservative men, and are going contrary to
the will of the people; then another guard is provided.
Congress is given the right at any time to limit the objects of
the corporation as public interest may demand. Let us sup-
pose an utterly improbable case, that the will of the people is
moving toward public ownership of all land and manufactures
and service, and that the trustees, notwithstanding the control
of the nine men with the power of veto, should use the fund
to thwart the will of the people, then Congress is given the
right to forbid such expenditure. The fund is not allowed to
thwart the people, but the people can coerce the fund. That
adds another point of protection where no further protection
is needed except against almost inconceivable danger.
92 IHE BOCKEFEUL.EB FOUNDATION
Yet one more protective circumvallation is put around the en-
dangered people. The Foundation may wind up its afiFairs at
the; end of fifty years, and at the end of a hundred yean
Congress may close the whole concern. That is enough, or
ought to be enough, to quiet the alarm of the most imaginative
at scenting peril to the people; and yet it is not quite all. A
final provision is that the income, if not spent in any year,
shall not be added to the principal, and that the principal shall
never exceed the present $100,000,000. This seems to us both
unnecessary and unwise. The fund is devoted to the benefit
of the world, and it is forbidden that its amount shall ever
be increased. We fail to see why the income of twice or ten
times that amount should not be so used, all danger having been
triply averted. Mr. Rockefeller is told that he must not by his
will add another hundred million to what is thus given to man-
kind. Why should a mere hundred million be feared? A hun-
dred million is not so fearfully large an amoimt. There are
a plenty of organizations not devoted to benevolence, carried
on for personal gain — ^railroads, manufacturing companies —
whose capitalization vastly exceeds this hundred million. Let
the Government watch them as it will watch this, and we do
not fear their influence; only, the income of this is all spent
for the benefit of the world, and theirs for private gain. We
should welcome the enlargement of this fund, and we hope
this provision will be stricken out.
The advantage of such a large fund is this, that it allows
continuity of operation. As in ttie case of the Carnegie Foun-
dation, lines of research can be carried on, scientific or socio-
logical, which it may take a generation to complete. There are
great problems still before the world in every department of
knowledge that require long and expensive investigation: in
pathology, in physics, in biology, in sociology, in archeology.
The experts know it, and they long for combined, continued re-
search. How long would it take us to learn the history of
civilization, of which we now know only the barest outlines?
How long will it take to abolish poverty? We would have
such a noble fund allowed to do all the good it can without
suspicious limitations.
Editorial from "The Survey."
We trust that the revival of discussion in the press of the
pending charter of the Rockefeller Foundation means that
those who are in charge of the measure in Congress are finding
the conditions favorable for final action. We see no reason
for further delay. Over a year ago, in discussing the amend-
ments which were then adopted, we expressed the opinion that
the charter should be granted. There is no occasion to repeat
the arguments against a self-perpetuating board of incorpora-
tors, against the possible accumulation of income in the hands
of trustees, and against the principle of perpetual endowment.
All of these principles, which were in the proposed charter
in its original form, and which are in the charters of many
excellent institutions, have been either abandoned outright by
the amended bill, or so modified as to be free from serious
objection. Trustees, under the pending bill, are to choose their
successors, but the choice in each case must be submitted to
certain high government officials and university presidents, and
it becomes void if a majority of these outside, independent,
THE BOOKEFEIiLBB FOUNDATION 93
and highly qualified electors disapprove. Income cannot be
accumulated or added to the principal, but must be currently
applied to the purposes for which the corporation is created.
After fifty years the trustees may distribute the principal of
any particular endowment, and after one hundred years the
trustees must make such distribution if directed to do so by the
Congress of the United States.
These amendments are important as precedents and as a
formal recognition of sound principles of philanthropic en-
dowment and public control They make it easier for the
public to know what policies are governing the trustees, and
they make it easier for the public to interfere if there should
be occasion. We have no desire, however, to magnify the im-
portance of the changes made in the bill, or to fix attention
exclusively on the _ possibilities of abuse of power inherent in
any institution which has at its command such resources as
are suggested by the clause limiting the total property of the
institution to one hundred million dollars. After due attention
has been given to the safeguards against abuse it is altogether
natural and proper to revert to the need for just such founda-
tions and to the immense good which they may accomplish. The
Rockefeller Foundation is to devote its resources to the ac-
quisition and dissemination of knowledge; to the prevention of
suffering and to the promotion of any or all of the elements
of human progress. It is to be assumed that this great educa-
tional, philanthropic, and civilizing institution will b? guided
with an eye single to these great purposes. To refuse legal
sanction to such an undertaking would be a national blunder.
The greater our confidence in the intelligence and in the capacity
of the democracy the more heartily will we welcome such
voluntary socializing of wealth. Let the state do its utmost to
provide for education and the relief of distress, there will still
be ample room for all that a hundred million dollar endow-
ment can do in fields which are not ready or which never will
be appropriate for state action. A dozen institutions with equal
resources, each doing its self-appointed work in co-operation
with one another and with less amply endowed agencies, could
find legitimate place in the forward movement of human prog-
ress and civilization. They will not kill private initiative or
any desirable public activity, but will rather promote both. The
general effect of the large endowments recently created has been
to stimulate and encourage the efforts of those who are work-
ing to the same ends both in public and in private. The Gen-
eral Education Board and the Carnegie Foundation for the
Advancement of Teaching have enormously strengthened the
better tendencies in higher education. The Russell Sage Foun-
dation has had a similar effect in its sphere.
To be afraid of large gifts like these would be to confess
civic incompetence. If in some respects courts and legislatures
do not now fully protect the public interests and reflect the
deliberate public will, this is becoming less and less the case.
If we cannot count confidently on the ultimate integrity and
good faith of our judges and lawmakers, then there may be
some excuse for stubbornly opposing the creation of great m-
stitutions of learning and of social reform; for such mstitu-
tions cannot be carried on without great financial resources;
and the possession of great resources implies always the pos-
sibility of turning them against the public mterest. But if we
do have full confidence in our political mstitutions, m our
M IHB BOCKEFEIMIB FOUNDATION
power to inflict condign punishment on faithless officials, in
our ability to modify by peaceful and lawful means the customs
which we have inherited as new needs and conditions arise,
in the ultimate soundness and efficacy of the government to
which we have entrusted the protection of the public interests,
then we may look with appreciation and equanimity on the
planting of new institutions which are avowedly consecrated
to education, philanthropy, and social reform. Such institu-
tions are heeded now and they will be needed tomorrow.
Recognizing that they may not be needed forever, the sponsors
for the Rockefeller Foundation say in effect : After fifty years
we may and after a hundred years we must, if your repre-
sentatives then so direct us, lay down our task and distribute
even our principal funds. Each generation should decide, and
will more or less definitely decide for itself, what its needs
are, and to what purposes the surplus resources at its com-
mand shall be directed. For this reason wise and generous
philanthropists are increasingly leaving to their trustees a very
broad discretion as to the manner in which, and even as to the
purposes to which, their gifts shall be applied.
The pending charter of the Rockefeller Foimdation gives the
most complete and explicit expression to this idea. Benjamin
Franklin, perhaps the shrewdest and most far-sighted man of
his generation, left legacies to his native city of Boston and
his adopted city of Philadelphia which lay unused for years
because he innocently imposed impracticable conditions on the
executors of his will. No such difficulties will arise in this
instance; first because of the broad terms in which the scope
of the Foundation is defined; and second, because in case this
scope is found to be broader than is consistent with public
interest, the Congress of the United States may at any time
impose such limitations upon the objects of the corporation as
it may deem the public interest demands.
MR. ROBERT W. De FOREST IN "The Survey."
It is well that John D. Rockefeller has determined to meet
the criticism with which his magnificent gift to the nation was
received, by amending the proposed charter of his institution.
A less broad-minded man, finding such unparalleled generosity
met in a spirit of criticism which, however well intended, must
have seemed to him and his advisers somewhat captious, might
easily have concluded to put his^ hundred million dollars back
in his own pocket instead of giving it to his countrymen. Mr.
Rockefeller has shown himself to be above any such impulses
and has considered the original criticisms of The Survey in
the spirit in which they were meant by its editor. In common
with many others I have not shared in these criticisms; not
because I did not think some future limitations upon the powers
of the foundation possibly desirable, or because I did not think
it expedient that it should spend its income substantially as it
accrued, or because I did not think that principal as well as
income might at some future time be wisely expended; but
because these and any other changes in the charter that public
opinion might hereafter make expedient could have been effected
easily by the power of amendment expressly given by the original
charter, and because insistence on maldng them now might
have led to the entire withdrawal of the gift. The greater
includes the lesser. The amendments which Mr. Rockefeller
THE BOOKBFELiLEB FOUNDATION 95
has now made, and any others that plainly seemed advisable,
could have been made at any time in the original charter by the
use of this reserve power. To make them now is simply stating
what the trustees chosen by Mr. Rockefeller presumably would
have done without any legislative command, and what they
could have been made to do under the original charter at any
time when puWic opinion was sufficiently united to force them
to do so by the process of amendment.
None of the new provisions of this amended charter militate
in any respect against the usefuhiess of Mr. Rockefeller's great
gift. None of them stand in the way of its wise administration,
for it is inconceivable that a majority of five university presi-
dents and four high officials of tiie federal government should
ever veto the election of any qualified trustee.
Mr. Rockefeller's action in this matter only illustrates again
the sincerity of purpose, breadth of conception and well poised
judgment which have to such an extraordinary degree been
manifest in his public benefactions.
Januaby 14, 1911.
From "The Cleveland Leader."
In the press of questions of closer personal interest, it is
probable that the public has largely lost sight of the Rockefeller
Foundation. Even when it was first proposed it is doubtful that
the pountry realized its full import. One hundred million
dollars invested for perpetual use in advancing the welfare of
the American people is an immense sum and with it much could
be accomplished.
It was the power that could be exerted through the use of one
hundred million dollars that made Congress hesitate about be-
stowing a federal charter on the foundation, in the form first
proposed. A self -perpetuating governing body was contemplated.
The fear was expressed that this organization might, in time,
with the vast sum of money back of it, direct its efiorts along
lines dangerous to the country. Therefore, the charter was not
granted.
But the subject has been again brought before Congress in a
new form. A bill providing for a different form of adminis-
tration of the fund has been introduced in both the House and
the Senate. An effort has been made to eUminate the causes
for objection found in the original measure.
The new plan is more elastic than the first one. The trus-
teeships are not self-perpetuating. The income cannot be ac-
cumulated, but must be expended each year. The trustees are
subject to veto by an outside authority. The foundation may
be ended by the trustees at the end of fifty years and, by
Congress at the end of one hundred years. In the meantame
Congress may put any limitations it deems expedient upon the
acts of the corporation, at any time it chooses.
There are many who do not endorse the methods by which
the millions of the Standard Oil magnates were acquired. But
John D. Rockefeller could not have devised a better way of
disposing of a large part of his immense fortune than giving
it for the benefit of the American people, for all time to come.
Surely some plan can be found for accepting and utihzing this
gift without leaving the way open for any dangerous use of the
wealth involved. If the bill just introduced in Congress does
96 THE EOCKEFEUJEE FOUNDATION
not sufficiently guarantee this security, it should be an easy
matter to make it right by amendment.
A gift of $100,000,000 for the advancement and well-being of
the American people is too rich in great possibilities to be de-
clined. Its refusal would be a confession of weakness and in-
competence in self-government.
Washington, D. C, February 20, 1912.
62d Congress. I vr p j. „„
2d Session. J^- ^ '9,227.
A BILL
TO INCORPORATE THE ROCKEFELLER FOUNDATION.
As Amended by the Committee on the Judiciary.
SYNOPSIS.
SEC. I. INCORPORATORS.— The following persons are
constituted a body corporate of the District of Columbia: John
D. Rockefeller, John D. Rockefeller, Jr., Frederick T. Gates,
Starr J. Murphy, Charles O. Heydt, Hariy Pratt Judson, Wick-
liffe Rose, Simon Flexner, and Edwin A. Alderman.
SEC. 2. TITLE.— "The Rockefeller Foundation."
SEC. 3- OBJECT.— "To promote the well-being and to ad-
vance the civilization of the peoples of the United States and
its Territories and possessions and of foreign lands in the
acquisition and dissemination of knowledge; in the prevention
and relief of suffering; and in the promotion, by eleemosynary
and philanthropic means, of any and all of the elements of
htmian progress."
RESTRICTION OF OBJECT.— Congress may at anjr time
impose such limitations upon the objects of the corporation as
it may deem the public interest demands; all property received
must be accepted and held subject to this proviso.
SEC. 4. POWERS OF THE CORPORATION.— To estab-
lish, maintain, and endow, or to aid others to establish, main-
tain, and endow, institutions and other agencies for carrying
on the objects of the corporation; to purchase, hold, sell and
convey real estate necessary or convenient for said objects; to
erect buildings, employ teadiers, agents, etc.; to make donations
for similar objects; to collect statistics and information; to pub-
lish and distribute books, etc.
SEC. 5- FURTHER POWERS.— To have a common seal;
to sue and be sued; to receive, hold, grant, convey, hire or
lease real or personal estate for the purposes of the incorpora-
tion; to accept and administer trusts for such purposes.
LIMITATION OF AMOUNT OF PROPERTY.— Total
amount of property held at any one time, whether absolutely
or in trust, not to exceed one hundred million dollars, exclusive
of increases in value of property subsequent to its receipt.
CONDUCT OF BUSINESS.— The corporation empowered to
prescribe by by-laws or otherwise various regulations for the
management of the property and the transaction of its business.
SEC. 6. INCOME.— The income of the property not to be
accumulated or added to the principal, but to be currently ap-
plied to the objects of the corporation.
_ SEC. 7. DISTRIBUTION OF PRINCIPAL.— The corpora-
tion empowered to distribute the principal of any property fifty
THE BOCKEFEIJiiEB FOUNDATION 97
years after its receipt; the corporation required to make such
distribution after one hundred years, if so directed by Con-
gress.
SEC. 8. MEMBERSHIP.— The number of members to be
not less than nine nor more than twenty-five. If the number falls
below nine no gifts can be made until the vacancies are filled.
Members divided into three classes; the term of service three
years; one-third of the members elected each year.
SEC. 9. ELECTION OF MEMBERS.— Members to be
elected by the members of the corporation subject to disap-
proval by a majority of the following persons: The President
of the United States, the Chief Justice of the Supreme Court,
the President of the Senate, the Speaker of the House of Repre-
sentatives, and the presidents of the following institutions,
namely: Harvard University, Yale University, Columbia Uni-
versity, Johns Hopkins University, and the University of Chi-
cago.
SEC. ID. OFFICE OF THE CORPORATION.— Principal
office to be in the District of Columbia.
SEC. II. TAXATION.— All personal property used for the
purposes of the corporation to be exempt from taxation by
the United States or any Territory or District thereof. This
provision does not affect the taxation of either real or personal
property under the laws of the State in which it may be situ-
ated. No officer, trustee, member, or employee to receive any
pecuniary profit except reasonable comj)ensation for services
in effecting the purposes of the corporation.
ANNUAL REPORT.— An annual report to be filed with the
Secretary of the Interior stating in detail the property held and
the use made of it
SEC. 12. ALTERATION, AMENDMENT, OR REPEAL —
"That this charter shall be subject to alteration, amendment, or
repeal at the pleasure of the Congress of the United States."
SEC. 13. TO TAKE EFFECT IMMEDIATELY.— "That
this act shall take effect immediately on its passage."
AMENDMENTS EMBODIED IN THE PETERS BILL.
The Peters Bill, as summarized above, embodied the follow-
ing amendments made after the introduction of the original
bill in the 61 st Congress:
SEC. 3. — Congress specifically reserves the right to impose
such limitations upon the objects of the corporation as it may
deem the public interest demands.
SEC. S. — The total amount of property held at any time,
whether absolutely or in trust, is limited to one hundred mil-
lion dollars.
SEC. 6.— The income of the property is not to be accumulated
or added to the principal, but is to be currently applied to the
objects of the corporation.
SEC. 7.— The corporation is empowered to distribute the
principal of any property fifty years after its receipt; it is
required to make such distribution after one hundred years
if Congress shall so direct. . , .
SEC. 9.— The election of new members of the corporation
is subject to disapproval within sixty days by the four Federal
officers and five university presidents specified in the bill.
SEC. 13.— The act is to take effect immediately on its passage.
98 THE BOGKEFMJiEB FOVTSDATIOS
AMENDMENTS MADE BY THE HOUSE COMMITTEE
ON THE JUDICIARY.
The House Committee on the Judiciary, to which the Peters
Bill was referred, adopted the following amendments:
SEC. I. — The following persons are added to the list of In-
corporators: Harry Pratt Judson, Wickliffe Rose, Simon Flex-
ner, and Edwin A. Alderman, making nine in alL
SEC. 3. — On page 2, line 4, after the word "promotion" are
inserted the words, "by eleemosynary and philanthropic means."
SEC 8. — The minimum number of members of the corpora-
tion is increased from five to nine.
In the event of the number of members falling below nine,
the corporation is forbidden to make any gifts until the va-
cancies are filled.
62d Congress I TT ^ „
2d Session j"- J*- 2I.S32-
A BILL
TO INCORPORATE THE ROCKEFELLER FOUNDATION.
As Introduced by Mr. Peters, March 8, 1912.
[The exact text of the bill is given in fine print. A summary
of the contents of each section precedes it in larger print. Por-
tions of the text in italics embody substantial changes from the
original Senate Bill.]
SEC. I. INCORPORATORS.— The following persons are
constituted a body corporate of the District of Columbia: John
D. Rockefeller, John D Rockefeller, Jr., Frederick T. Gates,
Starr J. Murphy, Harry Pratt Judson, Simon Flexner, Edwin A.
Alderman, Wickliffe Rose, and Charles O. Heydt.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assemblecL That John D. Rodce-
feller, John D. Rockefeller, Junior, Frederick T. Gates, Starr J. Mur-
phy, Harry Pratt Judson, Simon Flexner, Sdwin A. Alderman, Wick-
liffe Rose and Charles O. Heydt, together with such persons as they
may associate with themselves, and their successors, be, and they hereby
are, constituted a body corporate of the District of Columbia.
SEC. 2. TITLE.— "The Rockefeller Foundation."
Ssc. 2. That the name of such body corporate shall be "The Rocke-
feller Foundation," and by that name it shall have perpetual succes-
sion, save as hereinafter provided.
SEC. 3. OBJECT.— "To promote the well-being and to ad-
vance the civilization of the peoples of the United States and its
Territories and possessions and of foreign lands in the acquisi-
tion and dissemination of knowledge; in the prevention and
relief of suffering; and in the promotion, by eleemosynary and
philanthropic means, of any and all of the elements of human
progress."
RESTRICTION OP OBJECT.— Congress may at
any time impose such limitations upon the objects of the cor-
poration as it may deem the public interest demands; all prop-
erty received must be accepted and held subject to this proviso.
Ssc. 3. That the object of the said corporation shall be to promote
the well-being and to advance the civilization of the peoples of the United
THE EOOKEFBLLEB FOUNDATION 99
States^ and its Territories and possessions and of foreign lands in the
acquisition and dissemination of knowledge; in the prevention and relief
of suffering; and in the promotion, by eleemosynary and philanthropic
meafiSj of any and all of the elements of human progress: Provided,
however. That the Congress of the United States may at any time im-
pose such limitations upon the objects of the said corporation as it may
deem the public interest demands, and any and all gifts, devises, be-
quests, or property at any time received or held by satd corporation
shall be received and held subject to the terms of this proviso and to
the terms and limitatioTis which may be imposed by any Act of Congress
hereafter passed with reference thereto.
SEC. 4- POWERS OF THE CORPORATION.— To estab-
lish, maintain, and endow, or to aid others to establish, maintain,
and endow, institutions and other agencies for carrying on the
objects of the corporation ; to purchase, hold, sell and convey real
estate necessary or convenient for said objects; to erect build-
ings, employ teachers, agents, etc.; to make donations for similar
objects; to collect statistics and information; to publish and dis-
tribute books, etc.
Ssc. 4. That for the promotion of such objects the said coTporation
shall have power to establish, maintain, and endow, or to aid others,
whether individuals, associations, or corporations, to establish, main-
tain, and endow institutions and other afencies for carrying on said
objects, and any of them; to purchase, hold, sell, and convey real estate
necessary or convenient for the said corporate objects, and to erect,
improve, enlarge, and equip buildings and other structures necessary
or convenient for said objects, or any of them, and to acquire, make, and
furnish all necessary or convenient apparatus and other accessories; to
employ and aid others to employ teachers, lecturers, assistants, and
agents; to donate to any individual, association, or corporation engaged
in similar work money or property, real or personal, which shall at any
time be held by the said corporation hereby constituted, subject to the
terms of any gift, grant, bequest, or devise by which the said corpora-
tion shall have received the same; to collect statistics and information,
and to publish and distribute books, documents, and reports containing
the same, and in general to do and perform all things necessary or
convenient for the promotion of the object of the corporation.
SEC. S- FURTHER POWERS.— To have a common seal;
to sue and be sued; to receive, hold, grant, convey, hire or lease
real or personal estate for the purposes of the incorporation; to
accept and administer trusts for such purposes.
LIMITATION OF AMOUNT OF PROPERTY.—
Total amount of property held at any one time, whether abso-
lutely or in trust, not to exceed one hundred million dollars,
exclusive of increases in value of property subsequent to its
receipt.
TRANSACTION OF BUSINESS.-^The corporation
empowered to prescribe by by-laws or otherwise various regu-
lations for the management of the property and the transaction
of its business.
Sec. S- That the said corporation shall further have power to have and
use a common seal and to alter and change the same at its pleasure; to
sue and be sued in any cotirt of the United States or other court of
competent jurisdiction; to take or receive, whether by rift, grant, devise,
bequest, or purchase, any real or personal estate, and to hold, grant,
convey, transfer, hire, or lease the same for its corporate purposes; to
accept and administer any trust of money, or of real or personal estate
for any purpose within the object of the corporation as aforesaid: Pro-
vided, however. That the total amount of property held at any one time,
including that which is held absolutely as well as that whtch m held •«
trust shall not exceed the value of one hundred million dollars, exclusive
of increases in the value of property subsequent to its receipt by savi
corporation; to prescribe, by by-laws or otherwise, the terms and condi-
tions upon which money, real estate, or personal estate shall be acquired
or received by the said corporation, and for the grant, transfer, assign-
ment or donation of any or all property of the said corporation, real pr
personal, to any individual, society, or corporation for any of the said
purposes for which the said corporation is hereby incorporated; to make
by-laws, subject to the provisions of this Act, for the admission or exclu-
100 THE EOCKEFELLER FOUNDATION
sion of its members; for the election of its trustees, officers, and agents;
for the casting of votes by its members or trustees by proxy; for the
purchase, management, sale, or transfer of its property; for the invest-
ment and control of its funds, and otherwise generally for the manage-
ment of the property and the tranaactioa of the business of the corpora-
tion. The enumeration of special powers in this Act shall be deemed
to be by way of amplification and not by way of limitation of the gen-
eral powers hereby granted.
SEC. 6. INCOME.— The income of the property not to be
accumulated or added to the principal, but to be currently ap-
plied to the objects of the corporation.
Sec. 6. That the income of the property of the said corporation shall
not be accumulated or added to the principal, hut shall be currently ap-
plied to the purposes for which the corporation is created, subject only
to such reasonable delay as may be necessary in the wise administration
of the fund.
SEC. 7. DISTRIBUTION OF PRINCIPAL.— The corpora-
tion empowered to distribute the principal of any property fifty
years after its receipt; the corporation required to make such
distribution after one hundred years, if so directed by Con-
gress.
Sec, 7. That at any time after the expiration of fifty years from the
receipt by the said corporation of any property, whether by deed, grant,
devise, or bequest, the said corporation may distribute the principal, or
any part thereof, as well as the income thereof, in furtherance of the
objects of said corporation, provided such action shall be authorised by
a resolution passed by the affirmative vote of two-thirds of all those who
shall at the time be members of the corporation, at a special meeting
held on not less than thirty days' notice, given in writingj which shall
state that the meeting is called for the purpose of considering a resolution
to authorise the distribution of the whole or some part of the principal
of said funds; and after the expiration of one hundred years from the
date of its receipt by said corporation the said corporation shall dis-
tribute the principal, in furtherance of the objects of said corporation, if
so directed to do by the Congress of the United States; and all gifts,
grants, devises, or bequests to the corporation shall be taken and held sub-
ject to the provisions of this section.
SEC. 8. MEMBERSHIP.— The number of members to be
not less than nine nor more than twenty-five. If the number
falls below nine no gifts can be made until the vacancies are
filled. Members divided into three classes; the term of service
three years; one-third of the members elected each year.
Sec. 8. That the members of the corporation shall be not less than nine
in number and not more than twenty-five, as may be prescribed by the
by-laws of the corporation: Provided, That if and when the number of
members shall be less than nine the members remaining shall have power
to add, and shall add, to their number until the number shall be not
less than nine: And provided. That no act of the corporation shall be
void because at the time such act shall be done the number of the
members of the corporation shall be less than nine, except that no gift
to any individual, association, institution or corporation shall be made
when the number of members is less than nine; that all the members
of the corporation shall be its trustees; that no member of the said
corporation shall, by reason of such membership or his trusteeship, be
personally liable for anv of its debts or obligations; that each member
of the corporation shall hold his membership for a terra of direfc years
and until his successor shall be chosen: Provided, however. That the
members shall be at all times divided into three classes, equal numeri-
cally as nearly as may be, and that the original members shall at their
first meeting, or as soon thereafter as shall be convenient, be divided
into three classes, the members of the first class to hold their
membership and office until the expiration of one year, the members of
the second class until the expiration of two years, and the members of the
third class until the expiration of three years from the thirtieth day
of June next after the enactment of this law, and that in every case
the member shall hold office after the expiration of his term until his
successor shall be chosen: And provided further. That in case any
member shall, by death, resignation, incapacity to act, or otherwise, cease
to be a member during his term, his successor may be chosen to serve
for the remainder of such term and until his successor shall be chosen.
THE EOOKEFELLEE FOUNDATION 101
SEC. 9. ELECTION OF MEMBERS.— Members to be
elected by the members of the corporation subject to disapproval
by a majority of the following persons: The President of the
United States, the Chief Justice of the Supreme Court, the
President of the Senate, the Speaker of the House of Repre-
sentatives, and the presidents of the following institutions,
namely: Harvard University, Yale University, Columbia Uni-
versity, Johns Hopkins University, and the University of
Chicago.
Sec, g. That the successors to the incorporators named herein and the
additional 'Members of the corporation and their successors shall be elected
by the members of the corporation for the time being, but before such
election shall become effective written notice thereof shall be mailed
by said corporation to each of the following-named persons at his official
post-office address, namely: The President of the United States, the
Chief Justice of the Supreme Court, the President of the Senate, the
Speaker of the House of Representatives, and the presidents of the fol-
lowing institutions, namely: Harvard University, Cambridge, Massachu-
setts; Yale University, New Haven, Connecticut; Columbia University,
New York City, New York; Johns Hopkins University, Baltimore, Mary-
land; and the University of Chicago, Chicago, Illinois. If such election
shall be disapproved by a majority of the persons above named, it shall be
void; but it shall become effective if and when it shall be approved by such
majority^ or at the expiration of sixty days from the mailing of such
notices %f it shall not have been disapproved by such majority.
SEC. 10. OFFICE OF THE CORPORATION.— Principal
office to be in the District of Columbia.
Ssc. 10. That the principal olHce of the corporation shall be located
in the District of Columbia, but ofSces may be maintained and meetings
of the corporation, the trustees, and committees may be held in such
other places as the by-laws may from time to time designate.
SEC. II. TAXATION.— All personal property used for the
purposes of the corporation to be exempt from taxation by the.
United States or any Territory or District thereof. (This pro-
vision does not affect the taxation of either real or personal
property under the laws of any State in which it may be sit-
uated.)
Sec. II. That all personal property and funds of the corporation held,
used, or invested for its purposes as aforesaid, or to produce income to
be used for such purposes, shall be exempt from taxation by the United
States or any Territory or District thereof.
SEC. 12. COMPENSATION FOR SERVICES.— No officer,
trustee, member, or employee to receive any pecuniary benefit
except reasonable compensation for services in effecting the pur-
poses of the corporation.
Sec. 12. No officer, trustee, member, or employee of said corpora-
tion shall receive any pecuniary benefit from the operations thereof,
except reasonable compensation for services in effecting one or more of
the purposes of the corporation.
SEC. 13. ANNUAL REPORT.— An annual report to be
filed with the Secretary of the Interior stating in detail the
property held and the use made of it.
Sec. 13. That the corporation shall annually file with the Secretary of
the Interior of the United States a report in writing, stating m detail
the property, real and personal, held by the corporation, and the expendi-
ture or other use or disposition of the same or of the income thereof
during the preceding year.
SEC. 14. ALTERATION, AMENDMENT, OR REPEAL.
—"That this charter shall be subject to alteration, amendment,
or repeal at the pleasure of the Congress of the United States.
Sec. 14. That this charter shall be subject to alteration, amendment,
or repeal at the pleasure of the Congress of the United States.
SEC. IS. TO TAKE EFFECT IMMEDIATELY.— "That
this act shall take effect immediately on its passage."
Sec. is. That this Act shall take effect immediately on its passage.
102 XHE BOCKEFEIiLEB FOUNDAXIOII'
COPY OF A CIRCULAR LETTER SENT TO MEMBERS
OP THE SENATE UPON THE PASSAGE OF THE
ROCKEFELLER FOUNDATION BILL BY THE
HOUSE OF REPRESENTATIVES ON JANUARY 20,
1913-
The bill to incorporate the Rockefeller Foundation (H. R.
21532) after a unanimous report by the Judiciary Committee of
the House was passed on January 20, by a vote of 152 to 65,
and sent to the Senate. There it has been referred to the Judic-
iary Committee.
This bill was originally introduced by Senator Gallinger in
1910 and favorably reported by the Committee on the District
of Columbia. At this point it received wide discussion in the
press and some criticism, but the latter proceeded largely from
sources by no means hostile to the general purposes of the pro-
posed Foundation, and was directed toward the improvement
of the bill in certain particulars. With the cordial approval of
the incorporators the bill was accordingly amended and re-
introduced by Senator Gallinger as S. 2675, which is substan-
tially the same as H. R. 21532, the significant changes being the
insertion of the words "by eleemosynary and philanthropic
means" as an explicit qualification of all the activities of the
Foundation; and the increase of the minimum number of mem-
bers of the cori)oration from five to nine, together with a pro-
vision that no gifts could be legally made by the Foundation so
long as the number of members should reniain by any chance
less than nine. With reference to the criticisms and sugges-
tions that have been before the public the following features
of the bill in its present form should be noted:
(i) The element of perpetuity has been removed, provision
having beeen made for the dissolution of the Corporation and
the distribution of its funds, either voluntarily or at the direc-
tion of Congress.
(2) The amount of the endowment has been limited and the
income is to be spent — not added to the principal.
(3) The Trustees are not to be a close corporation, the elec-
tion of new members being subject to disapproval by certain
specified representatives of the public interest.
(4) Congress has complete power to impose such limitations
upon the objects of the corporation as the public interest may
demand; and all gifts must be accepted subject to this pro-
vision.
(5) No exemption from state taxation is, or constitutionally
could be, conferred by the bill, and no exemption whatever is
conferred with respect to real estate.
_ (6) A charter is sought through Congress solely because the
gift is to the people of the United States, and is to be con-
trolled by them rather than in the interest, however beneficent,
of any one section.
The accompanying circular gives the history of the measure
up to the time of its latest introduction into the House and also
describes in some detail the changes referred to above and the
considerations on which they were based. I trust that you will
recognize in these features of the present bill an ample safe-
guard against any dangers that may have been attributed to the
original plan, and that by promoting the early passage of the
bill you will enable the incorporators to enter upon the import-
THE BOOKEFELLBB FOUIin>AIION 103
ant work in the lines of education, research and public health to
which they are pledged.
Respectfully yours,
JEROME D. GREENE.
Trustee for the Rockefeller Institute for
r Medical Research and Member of the
General Education Board.
Schedule of Publications Issued by The Rocke-
feller Sanitary Commission for the Eradica-
tion of Hookworm Disease and the Intema-
tional Health Commission.*
ROCKEFELLER SANITARY COMMISSION:
1. Soil Pollution as Cause of Ground-Itch, Hookworm Dis-
ease (Ground-Itch Anemia), and Dirt Eating. By Ch. Wardell
Stiles, Ph.D., U. S. Public Health and Marine-Hospital Service.
— ^A Circular for Use in Schools Issued by The Rockefeller
Sanitary Commission for the Eradication of Hookworm Dis-
ease. '■Washington. D. C, 1910.
2. Report of Scientific Secretary. 191 1.
3. Report of Administrative Secretary (First Annual Re-
port). 1910.
4. State Systems of Public Health in Twelve Southern States.
191 1.
5. Second Annual Report. 1911.
6. Hookworm Infection in Foreign Countries. 1911.
7. Third Annual Report. 1912.
8. Fourth Annual Report. 1913.
INTERNATIONAL HEALTH COMMISSION:
1. Resolutions establishing the International Health Commis-
sion. 1913.
2. Outline Plan for Co-operating in the Work of Relief and
Control of Uncinariasis (Hookworm Disease) in Infected
Countries. 1913.
3. Countries, by Groups, in which Hookworm Infection Has
Been Demonstrated. 1913.
4. Hookworm Disease. A Simple Sketch for the Layman.
1914.
5. The International Health Commission: Its Scope, Method
of Work, and Organization. 1914.
OTHER PUBLICATIONS:
1. The Rural School and Hookworm Disease by John A.
Ferrell, M.D. (Bulletin No. 20, United States Bureau of Edu-
2. Public Health Work as a Career, by John A. Ferrell, M.D.
(From the Journal of the American Medical Association, An-
gust 22, 1 914).
*See page 32, Qaestion a.
s^^
DATE DUE
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CAVLORO
PniNTKOINU.m.A.
Cornell University Library
HV 97.R6R68 1915
Information furnished by the Roclcefelier
3 1924 000 617 567
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