Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-09-23


his holdings in the Baltimore and Ohio.
The business difficulties of the two roads
cut on the income of the two institutions.
i4ehlsh would have been compelled to close
It's doors except for an appropriation from
the state of Pennsylvania and both coll
reyes have found themselves seriously ham,
pered by the sharp fluctuations in the
earning capacity of their funds.
Municipal bonds have been a favorite
form of investment with colleges, for the
reason that they are generally safe and
return a fair rate Of interest. Many of the
New England colleges have their funds in
vested in this manner.
fales funds are proftably invested
that with productive capital only half
that of Columbia she has an income almost
as 'arge. both institutions receiving about
three-auarters of a million year.
Lost by Good Times.
Cornell is looked upon as having been
especially well managed. About 100000
OF her holdings came from gifts The re-
n'ainder was derived from the profits OF the
land granted to her under the terms of the
Morrill, act. The policy of Cornelrs man.
ayers has been to invest her funds in mu-
nicipal bonGs and western farm mortgages.
one OF the curiosities of college financier-
ing is the fact that 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 the univer-
sfty was compelled to renvest 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 en-
oowments 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 1000, 600
acres of land and should some day be one
OF the richest institutions in the country.
A n Bushes. Organization.
The actual management of university's
business affairs is conducted much like that
or town or city. At the beginning of the
year an estimate of the probable income Is
mace. From this the expenses of the bust
ness management are first deducted leav-
ing about SO per cent for instruction and
administration
There are certain fixed charges to come
out of the latter sum- such as the salaries
OF professors. the repair and care of build
lngs. fuel lighting and insurance. and the
payment or scholarships and prizes The
remainder Is distributed among different
departments just as a board of apnortion-
Hent does IN the case of city
All thIs Is done by committee of the
oeard OF trustees. and the annual meeting
OF thls committee is the occasion of a
nght between the different departments q.
the university, each one of which wants
ABOUT twice what can be actually allowed
~. rms 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
live up to Its full income. and keeps It in a
, schuitlon OF poverty. no matter how great
IT'S wealth may become. Thus the constant
cry for more funds that goes I'D from al
most every institution of higher learning
In the country is not ill-founded There is
PROBABLY no college of the first rank in the
country that could not use twice the
wealth 1t now possesses to advantage
Rapid Growth.
Their wealth is growing rapidly. During
the past year American colleges and uni
Versities have received $50 900 900 in bene
FACTIONS of one kind and another from In
d1viduals. The princely nature of some of
these gifts, especially of Mrs. Leland Stan
ford's donation of $4,000 600 to the instftu-
ZION named for her son. has removed the
cry that too much of the money given for
ph'anthropfc purposes in this country goes
TO great universities. and that it is creating
an .aristocracy of learning" On the other
hand the manag gers of these institutions
say that the greater the amount of funds
az their disposal. the more free scholar
SHIPS and prizes they can found the great
er will be the number of poor but desery-
ing youth who can receive the advantages
or a college education. If the growing
number of students applying TO them for
admission are to be received, 800 600 600 per
year Is none too large a sum for private
philanthropy to bestow toward keeping up
the equipment of the colleges and their
present grade of instruction.
Liberal Giving
While a large part of the business man.
agement of a university is directed by the
board Of trustees, the growth In size and
wealth of our greatest institutions has
made it more and more necessary that
their presidents shall be men of business
ability as well as of broad scholarship 1t
IS generally admitted NOWADAYS that the
apfllty to obtain and successfully admins
for ha how a.
Is a more important qualification for the
presidency than an intimate knowledge of
Greek roots or Hebraic history While
scholarship is not sacrificed in the case of
the modern college president, business abil-
1ty Is also demanded. If it comes to a ques-
ton between the two business ability Is
likely to have the preference
Business Men College Presidents,
Columbia led the way in this movement
by putting Seth Low at the head of its
affairs. A generation ago a man like Mr..
Low, who had made his career In business
never would have been thought of for such
a position. Presidents Schurman of Cornell
ANGEL OF Michigan, Harper of Chicago and
Jordan of Leland Stanford We're all col
'ege professors before being appointed to
their present positions. But they had all
proved that they were successful admins
traitors, as Is shown by the fact that they
nave all been called upon to fill jmportant
governmental positions. The appointment of
Hadley to be president of Yale is
understood to be due to the belief that that
university has suffered from a lack of bust
ness enterprise, and needs clever bust
ness man to direct its affairs
The whole tendency of the present time
49, without detracting from the educational
work of the university, to make it more
ard more business undertaking. conduct
ed on strict business principles and arriy-
ing at its results by business methods
Doing the Office Work.
The actual direction Of a universities
business affairs is usually in the hands of
a treasurer, whose duties are much the
same as those Of bank president He
investigates proposed investments and has
the general oversight of all the financial
activities of the institution. These actiy-
tiles are directly in charge of separate bu-
reaus or departments. One of these in the.
case of the larger universities employing
half dozen clerks. looks after the collec-
ton of tuition and other fees from stu
dents. Another and larger force of clerks
looks after the renting of rooms In the col
lege dormitories, and. in where a
is maintained. the supply of food
to the college dining rooms. AS many as
100 men are employed in this branch Of
the business office of university like Har-
ward. Still third department is that