The Universalist. [volume] (Chicago [Ill.]) 1884-1897, 1895-02-16
SAOREDNESs OF END0WMENTs,

6''Sh W OOiiNS Co anu Otucl iuStibu-
tons in the way of endowment funds,
the recipients of these funds should
have clear idea of their nature and
use," says the Tribune of this city, in
its issue of Sunday last, and thus
beginning it reads timely little les
son to colleges in regard to the ma
ture and use of these endowments,
saying: DIR. George A. Gates, Presi-
dent of Iowa College, has contributed
timely article upon this subject
to the Chicago Advance, which
should be carefully read by the bust
ness managers of colleges. He urges
upon them the necessity of making
distinction between endowment funds
and other college property. Other
gifts may do just as much good and
perhaps more, but the intent of the
giver of the endowment fund is to be
taken into account. That intent is
sacred and any other use of the mon
ey, DR.. Gates bluntly declares, is.
stealing.
Conceding all the temptations to
put the endowment to other uses,
DR.. Gates does not consider them any
answer to the charge. He says very
pointedly:
There is special need of emphasis up
Western colleges. The demands upon
their resources are imperious. 1t is in
deed pitiful that the often meager sal
aries due to their instructors should not
be promptly paid. 1t seems sometimes
as if certain needs OF the colleges must
be met. Boards of Tru. tees find them
selves face to face with these tremen-
dous needs, and here are college funds
with which they can meet them. They
simply yield to the temptation. and that
is all there is of it. They have no more
right to do that thing than the directors
OF bank have right to embezzle the
deposits. Because money is within
reach is no reason why it should be used.
Deposits in bank should be looked up
on as non existent for other than their
legitimate uses. The endowment fund
OF college has no business appearing
above the horizon when trustees are
discussing how to meet current expen-
seS.
The matter of trustees borrowing
from endowments for current expen-
ses is fraudulent, unless such debts
are secured legally like any other
debts. These funds to be invested,
not consumed. That is the sum and
substance of it. If they are diverted
from their purpose, if the principal is
trenched upon, then the donors
should have their rights guarded just
as widows and minors have when
their trustees use up the principal.
To guard themselves they must make
IRON bound legal contracts, providing
for the use only of the income, and if
the conditions are violated, then the
violators should be brought before
the courts and taughta useful lesson.
And this is all the more important
since liberal endowments conditioned
upon the raising of certain sum, also
to be used as endowment, the sys-
tenn SO successfully put in operation
by DIR. D. X. Pearsons of Chicago, are
fast becoming the fashion in modern
munificence. These generous and
public spirited donors have the right
to be protected. Their conditions
should be respected. If they are not,
the flow of generosity may be checked
and colleges which respect the sa-
credness of endowments may suffer
equally with those which do not. In
every case these funds have been
given and taken under written con-
ditions that they shall be kept intact,
and as DR.. Gates we'll says: eff col
leges expect to deserve and win and
retain the confidence of donors there
must be solid ground for faith on the
part of the givers that the conditions
of endowment will be most sacredly
observed"