The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-05-26

got INTO deep water, and later entry
shows the expenditure Of $500 by the trus,,
tees for the purpose Of getting the ice pond
Newland T. DePauw was a member OF the
investment committee, and his influence with
,ne committee probably accounts for the ne
to the Ohio Falls car works. the DePauw
plate glass works, the New Albany woolen
concerns in which Newland and Charles
DePauw were interested. and many OF
which have gone into receivers hands. These
ioans were all without adequate security,
methods and the capacity of this investment
may be in IRON OF ua
year ago. This report showed that out of
about 100000 that had been invested there
that is to say say capital upon which the in
terest was being paid. The balance of s120.-
@ wss Sasssd ssd as sppfsd pSe to be sspd 10
interest had been defaulted. but which It
the property on which it was lien. The
"doubtfuf' consisted of paper the interest
on which had not only lapsed, but concern
denominated den t as s bad RA was s not not only bad,
had been bv invested it it was estimated that the
loss through ill-advised investments would
The Institution also lost through the mis-
management of Dean Howe, OF the school
of music, whose transactions cost a tidy
sum. After the School Of Music had been
in operation some time Howe, having the
confidence or the faculty and the board or
trustees ust % was given the management ,n of the
while the department Of music should be
knewn as a part OF the university, Dean
Howe n should d. run @ it and retain the profits %
Years ago it % ea%e to the he ears ears of the he
board of trustees that Howe was
In deep water. Without divulging the
real condition of affairs into which the
School of Music had been precpitated.
to the university and left for California,
where he has since resided. Later. bills
was discovered that Howe had used his
alleged connection with the university TO
purchase heavily of pianos. organs music
and other paraphernalia that would be
necessary to equip first-cass music plant.
Not only this. but it was found that every
musical instrument, and every sheet OF
music had been mortgaged for all 1t was
worth, and that the proceeds of these
loans could not be satisfactorily accounted
for; The mortgages that Howe
School of Music were paid off, the bills that
had been piled up at the music houses were
paid. and the university became the owner
of the music school equipment after hav-
ing, in effect, paid for it twice. The ex-
pense TO the university of covering up the
Howe scandal is said to have been in the
neighborhood of $4,000.
former member OF the board of trus-
tees, who is convinced that the real con-
dition of the finances OF DePauw Uni
versty must sooner or later come to the
surface, when asked for statement of the
schools financial condition, wrote out the
following:
Revising the last report that was made
to the board of trustees in June, 1884, it
may be fairly stated that the producing
capital Of the university in 1895 is about
%o.TS: .TSS. ,osses nv Investments NAV be esti-
'If the estate would pay over to the uni
versity in money and notes the 40 per cent
of the proceeds OF the sale OF is, tne cnicago
s64 600. and pay the amounts due in 1894
from the estate under the will to the ex-
pense fund of the university, to wit: SS,-
from the estate for 1895 the expense fund
to the university to wit: $1,000, making now
fSe fhe s1m so inc of t6e Gnirersty would
be so relieved Of its present financial en-
barrassment as to enable the board TO meet
DR.. Johns theory of education, which he
calls new education, and which he has
1t will therefore be seen that for the
change of the name Of Asbury University
to DePauw University the institution has,
the sum of only $4,000. AS to what the
balance of the estate. will produce there
iva gSfa dea @ DePauW shortly o before bis
death, gave ii as his opinion that his be-
quests to the university would net ultimate
W. d
million and a half dollars. TIE shrinkage
that came with the panic caused an enor-
nous decline of values, and recent revision
of estimates of what the college would
finally realize places the sum that the in
stitution may yet expect at $3N,VcO-a falling
off of 81 100000. Unless there be a change
in the business methods of the board of
trustees and the Investment committee, the
amount that will be realized will fall far
short of that sum, and in any event the
amount that will likely be realized is more
likely to fally below that estimate than to
exceed IL.
FUTURE OF THE UNIVERSITY.
Already the Methodists of the State are
asking themselves the question whether it
has paid to trade the name of Asbury for De-
Pauw. even though it received 100000 or
s4Oo 900, or possibly 100000 to boot The name
of Asbury was derived from a father OF
Methodism, a bishop of the early church
in Indiana, who gave his life TO the work
of building UP the denomination in the
West and many there are who still re-
member the chill that Indiana Methodists
felt when first it was proposed to divest
this sturdy and growing educational IN
stitution of the sainted name OF Asbury
and substitute the name of the new pen pen
efactor for a money consideration. Whie
il is not to be denied that the school re-
ward and upward, it is equally true that
from that time the institution lost the SYM
pathy throughout the state or part Oh OIL Inc ne
that time, had been its tower of strength
and the rock of it's support. Already there
is agitation in some quarters looking TO the
restoration of the name or Asbury, put
II is doubtful If this would restore the
sympathy and support that has been alien
afed or tend to show the way out or the
entauglement in which the Institution mas
become involved. The board of trustees is
not likely to do anything that would de-
nrive II of the funds still due from the
bapauw estate, of which the institution
stands i'm such sore need. On one point,
bowever there is no difference of opinion.
nud that is there must be a change OF
6nonciaI talent at the head of the insti-
tmtinn different from that which has
brought the university to its present low
friends of DePauw who have known all
.,nnc of the waste of funds, and who have
ssac,'1 to talk since the resignation of Pres.
sSeet Iohn claim to entertain grave fears
co. the future of the university should the
ffnoncia, mana agement be turned over to DIR.
Sims In support of their claims they
ara circulating the report of the finances
of Syracuse University made by Chancellor
nov who recently succeeded DR.. Sims
thare ON this subject the New York Trib-
une printed from Syracuse, few weeks
ago, the following:
sThe chancellor Oay says that Then
ho accented office he was informed :ilat the
nndowment fund was $600Go0 in round num-
hars hut he soon discovered that nearly
SI7o cO0 had been set aside TO pay annui-
tants and that not one dollar Of it was
waiIsbie for college work Of the re-
mainder $4,000 was in loans in the West,