The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-09-25

fered by great university are largely the
So me as those presented Dy an Insurance
society. First Of al the investment must
be safe. Speculation IS out OF the ques-
zion. In the second place il is highly de
sirabie that ), should be permanent. More
over ID is alva ntaoeous that he invest
meuts shou have a Iar.ety OF forms 30
that bard tines bad man cement or man
cial disas er In any one enterprise may not
cripple he work OF The institution.
Two Unfortunate Colleges.
The danger Of having colleges funds
all tied up la "A single line of securities
has been i.lustrat tod within the past few
years by The troubles OF Lehgh and johns
Hopkins Universities. Asa Packer. tne
founder of me former. LEFT its endowment
in securities o. the Lehigh valley Rail
road while Johns Hopkins founded his
in- tuition with his holdings in the Balu-
more and Ohio. The business difficult
res OF the TWO roads cut off the income
Of che two Institutions. Lehigh would
have beeu compelled TO close its doors eN-
cept for an appropriation from the state
Of Pennsylvania and both colleges have
found themselves seriously hempered by
The sharp fluctuations in the earning ca
p8ciy o. their funds.
Municipal bonds have been a favorite
form Of investment with colleges for the
reason that they are generally safe and
return fair rate Of interest. Many OF
the New England colleges have their funds
invested in This manner.
Eale's funds are so profitabiy invested
that with a productive capital only hair
that Of Columbia she has an income al
most as large. both Institutions receiving
aaout three-quarters OF a million a year
Cornell is looked upon a. having been
especially well maaged. About 100000
of her holdings came from gifts. The re-
maindeT was derived from the profits of
the land granted TO her under the terms
Of the Morrill, act. The policy Of Cor
nelis managers has been 90 invest her
funds in municipal bonds and Western
farm mortgages. one of the curiosities
Of college hnanciering is the fact thar
the good times of the past two years has
injured the university. The farmers OF
Kansas and other Western states have
paid their per cent. mortgages, instead
Of renewing them. and che university was
compelled 10 reinveSt at a much lower rate
Of interest. Many Of the colleges own city
real estate. having received gifts in that
form, but the majority of college endow-
ments are in bonds of one sort or an
other. The largest real estate owner OF
all The colleges is the University OF Texas
which holds title to more than 10000
acres Of land and should some day be
one of the richest institutions In the coun-
try.
A Tremendous Business Organization
The actual management of a univers-
" S business affairs IS conducted much like
that of town or city. At the beginning
of the year an estimate of the probable in
come is made. From this the expenses Of
the business management re first deduct
ed leaving about 50 percent for instruc-
ton ard administration.
There are certain fixed charges to come
out OF the latter sum, such as the salaries
Of professors. fuel, lighting and insurance.
Of haIa !,
prizes. The remainder is distributed
among different departments just as a
board of apportionment does in the case of
a city.
All this is done by a committee of the
Board Of Trustees and the annual meeting
OF this committee is the occasion of a
fight between the different departments Of
the university, each one of which wants
about twice what can be actually allowed
II. This constant pressure from within on
the part of the institutions own officers,
and from without on the part Of students
seeking admission, makes every university
ave up 10 its full income, and keeps II in
a condition of poverty no matter Sow
great its wealth may become. Thus the
constant cry for more funds that goes up
from almost every country Is not ill-found-
ed There Is probably no college of the
first rank in the country that could not
use twice the wealth il now possesses 10
advantage
Their wealth is growing rapidly. Dur
ing the past year American colleges and
universities nave received $50 O0@0 in ben
efactions of one kind and another from in
dividuals The princelv nature of some of
these gifts, especially Of Mrs Leland Stan
ford's donation of $l0.0O00O0 10 the insti-
tuition named for her son, has removed the
cry that too much of the money given for
philanthropic purposes in this country goes
to great universities. and that it is Great
ing an 'aristocracy Of learning" On the
other hand, the managers of these institu-
tons say that the greater amount Of
funds al their disposal the more free
scholarships and prizes they can found the
greater Will be the number Of poor but de-
serving youth who can receive the adVan-
tages of college education If the grow
ing number Of students applying to them
for admission are to be received, $50 OO0. COO
per year is none 100 large sum for pri-
waite philanthropy 10 bestow toward keep.
ing up The equipment of the colleges and
their present grade in instruction.
While a large part of the business man
agemeut of a university is directed by the
board OF trustees, the growth in size and
wealth of our greatest institutions has
made il more and more necessary that
their presidents shah be men of business
ability as well as of broad scholarship. 1t
is generally admitted nowadays that the
ability TO obtain and successfully admin
lege is a more important qualification for
the presidency than an intimate knoWl-
edge of Greek roots or Hebraic history
While scholarship is not sacrificed in the
case of the modern college president. bus
mess ability is also demanded. If il
comes to a question between the two, bus
mess ability is likely to have the prefer
ence.
business Men as College Presidents.
Columbus led the way in this movement
by putting Seth Low at the head of its af-
fairs A generation ago a man like Mr..
Low, who had made his career i'm bust
ness, never would have been thought of
for such a position. President Schurman
of Cornell, Angel Of Michigan, Harper of
Chicago. and Jordan of Leland stanford
were all college professors before being
appointed TO their present positions. But
they had all proved that they were sue
cessful administrators. as Is shown by the
fact thar they have all been called upon to-
fiji important governmental positions. The