New-York tribune., 1905-08-22
YALE ON TAINTED MONEY.
"1'he Rerie1c" Says Stigma Cannot
attach to Check.

New-Haven. Aug 81 Especially fact
seems to be-" says the editor in chief Of The
Yale Review in the quarterly issue for August.
just out. In discussing business ethics and the
universities, that our corporations and the
opportunities to make great fortunes by means
of them have grown more rapidly than the sup
ply Of men equipped with the moral respon-
sihiiity demanded in their managers" He
adds Our civilization has neutralized dangers
due TO the forces OF nature, but has Gre
ated in the machinery OF our elaborate business
organization new dangers. arising from the op-
portuntties which they offer for betrayals OF
trust and predatory fortune hunting.
The editorial comment for this issue discusses
the Equitable scandals and proceeds to remark
upon the assertions that universities are taking
tainted money" for their endowments. Yale
last spring received and accepted million dol
lars from John D. Rockefeller. Says The Yale
Review in this article
The recent washing in public of the soiled linen
on account of the respectabity of the directors
and the hducary nature Of the life insurance bust
which is seen in many other officers Of corpora
uons whether engaged in transportation or IN p5o
@ a9F good deal Of m1gans s fare1 S with
'eraft" and that ali large fortunes are gained
through iniquity is, put it mildly. an eAaggera.
Equitate prompt restitution was made Of certain am
commissions alleged to have been Improperly CCI-
!ected shows that substraturl OF conscienee e11
lists in ths minds even OF those whose acts ar
number OF transactions which are daily eonduc'eSt t
on te-lus OF we'll deserved conhdence the cases %
maIfeasance which have become known are GER
curious 6y-product of these exposures has been
the effort OF certain persons and newspapers 10 m
duce religious and educational institutions 70 reIISe
niovemeRt must st be regarded as protest against
the evils complained Of, rather than as serious s
that its supporters really believe that anything
like faint can attach 10 such representaLvS M Ot
general value as check If, for instance na0gTy MONEY
were given anonymously. It can hardly be thoughn5f
possibly be so inherent in the money to vitiate
its use II We look at the practical SIDE ot tlaI
Su Rat " it Is %Soud Sdd be posable % for BODY
@ 10 %hs If hey did draw draw the s ne s they would
be preventing the rich man who has gained Is ms
to it. from making the only kind Of restitution
which he can make TO the general pubic, ,-,v that
the selfdenying policy which is advocated with Fai
eev and IS in practice The fact
sti remains that abuse of power disregard OF @ the
and that our universities teachers not only Of
ethics. but also Of civcs and Of economics. nave
which they cannot close ther eyes The acceptance
10 vse fbs money with ordinary business economy
and for the promotion OF learning. but more spe-
ciacaly use it in such way that their ATTITUDE
on these questions of business ethics cannot be
There are two quite distinct methods of influence
open TO university. The first lies in the pupno
study the facts, which certainly complex. with
regard 10 corporate business, and, having studied
them, TO pronounce upon them with courage ana
vigor, whatever may be the conclusion. But tnere
our institutions OF learning. The gifts which are
Of apitai x Compensatory small amount Of their
income yielding funds is probably placed in real
estate very large part is put into the oondS
and stocks OF corporations. BY concerted nvesti-
cation and concerted action the lnvestnneit coin-
rnttees and treasurers OF our universities libraries
and other public institutions have II IN thelr power
An indirect of the evils which are COM
planned of lies in the fact that our prosperity mas
created an enormous mass OF annual savings " men
the individual capitalist cannot advantageousy usa
and which he is therefore obliged 10 put into sucL
a demand for the promoter and tenlpts the
inscriptions TO make use OF the vast capital SO
easily secured in a manner quite at variance with
the business ethics OF the mass OF the investors
As individuals they are helpless The desire 10
draw an income from their savings betrays tnem
into a partnership in practice of which they can
approve Our universities. public libraries and
endowed charities are In position 10 act as leao-
of the passive investor. II IL were known tnat
the endowed institutions really examining
carefully and tmpartialy into the business ethics
OF the various corporations in which they invest.
whether stockholders or bondholders. that mere
fact would serve as powerful deterrent To have
II generally known that these institutions had ex
amlned and approved OF the methods OF a corpora
ton would have direct pecuniary value to them
the legislatures 10 make their securities legal in
vestnlents for savings banks and trustees. Where
once, but quiet and persistent effort in the direc
tion indicated would surely produce valuable re-
suits
The Yale Review is conducted a quar-
terly journal for the scientific discussion OF
economic political and social questions and is
edited by Professor Henry W. Farnham. of the
Sheffield Scientific School, and seven university
professors OF political. economy and social
science.