The Washington times., 1901-12-13
CARNEGIE'S COLLEGE DONATION.
Perp1exing Problems Connected
with the sIO,OOO,OOO Oner.

with the sIO,OOO,OOO Oner.
President Roosevelt has a white ele-
phant on his hands in the form of Andrew
Carnegies letter offering to give to the
United States Government. as trustee of
the American people. slO,0O0,000 for the
establishment in Washington of college
OF higher education the nucleus 10 be the
various Government scientific bureaus.
The Presidents embarrassment arises
from the fact that Mr.. Carnegie did not
put up the cash. but instead makes an Of
fer to deposit $40. .0O0.0 900 in bonds OF the
United States Steel Company. OF course
the bonds today are as good or better
than cash. but the United States Govern
ment is doing business strictly on cash
basis.
The Government had one experience in
taking bonds at the time James Smithson
made his bequest for the establishment
of the Smithsonian Institution. the money
contained in this donation was invested
in Arkansas bonds, of which the bottom
afterward dropped out. compelling Con-
gress to make an appropriation to cover
the deficit. II President Roosevelt had
known that Mr.. Carnegie had made pro-
posal of bonds instead of cash he would
not have allowed the matter to become
public and indeed. IL was his intention
to keep the whole subject a profound
secret until he could make the offer
known to Congress in special message.
But the President of the United States
is always at the mercy of his more or
less discreet friends, and in this instance
he has been made their victim
One of his warm personal friends, who
has his official ear whenever he wants it,
learned from the head of a Western col
lege what was in the wind, and told the
story to a newspaper man. who printed 1t.
Now the President does not know what
course to pursue. He does not conceal
his annoyance over the matter becoming
public and during the past few days has
been in consultation with some of the
shrewdest men in both houses OF Con-
gross. particularly those In charge OF fs
cal affairs All et them have advised him
not TO touch the bonds, not only because
OF the possibility that they might some
DAY depreciate in value. but because Of the
political club that would be put in the
hands Of the Democratic party If the Re
publican Congress should. on the recon-
mendation Of the Republican President,
become. as trustees for the American peo-
ple, the holder of the bonds of what IS
popularly if unwarrantably described as
tho greatest trust of all the trusts on
earth.
President Roosevelt admits the force OF
the argument as thus presented to him.
and il is safe to say that Mr. Carnegie
letter will not be submitted to Congress
with the Presidents recommendation un-
less it shall be very materially changed in
substance.
The generous offer OF Mr.. Carnegie is
very deeply appreciated by the President
and his friends in and out Of Congress,
but they all appreciate as well that some
way out of the dilemma must be found.
One of the prominent Congressman who
called upon the President yesterday at his
request to consult with him on this mat
ter advised that a mutual friend be sent
to Mr.. Carnegie with a request to with
draw his letter as the only solution of the
problem.
II this action is taken 1t Is probable
that hint will be dropped that if the Of
fer should be renewed on q cash basis ii
would be accepted with thanks.