New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-08-26
National Welfare Threat
ened by Its Work, Says
Federal Commission.
WOULD DOMINATE
COUNTRY'S POLICY
Sees Evil In Concentration 81
Power in Hands of Men
Who Control Industry.
tBy telegraph to The rrieunsl

BY IclcgIaph 70 Auc AitVone'l
Chicago, Aug. ga bitter attack on
the Rockefeller Foundation is the chief
feature in the third and final section
of the main report of the Industrial
Relations Commission, or Walsh board.
made public here to-day. The Rookie
fellers are charged with acting in bad
faith, with concentrating in their own
hands and for their own purposes the
vast power Of the foundation which, II
is charged, is constructed to evade gov
ornamental control. and with planning to
use literature they knew to be untrue
in their union educational campaign
THE domination by the men IN
whose hands the final control of large
part OF American industry rests the
report says, sis not limited to their
employees, but is being rapidly extended
TO control the education and social
service of the nation. The Rockefeller
Foundations entrance into the field OF
industrial relations constitutes men
ace to the national welfare to which
the attention not only of Congress but
of the entire country should be
directed. Backed by the SlOO'OOO.OoO
of the Rockefeller Foundation. this
movement has the power to influence
the entire country in the determine
ton of its most vital policy"
Congress is urged by the report TO
enact a statute providing that all in
corporated non-proht making bodies,
whose present charters empower them
10 perform more than a single speclhc
function and whose funds exceed ST.
900 900. shall be compelled to take out
Federal charter. This should pro-
vide, it is proposed, for strict Federal
control of the work of the foundations
Endowments Show Control.
The pervasive subtlety of the small
number of wealthy and powerful imam
eiers into whose hands the practical
control of American industry has
passed" the report suggests, IS shown
IN the endowment through the 1ounaa-
tions of colleges. teachers pension
the control or influencing Of the press.
"Tbe control of these funds has been
widely published as being in the hands
of eminent educators and public splr-
tied citizens" the report says. In
the case of the Rockefeller founda-
tions. however, not only is the con-
troll in the hands of John D. Rookie
Teller, jr., and two members Of the per-
sonal staff of John d. Rockefeller.
sr., who constitute the finance com
mittee, but the majority of the trus-
tees of the funds are salaried en-
ployes of Mr.. Rockefeller or the foun-
dations, who are subject to personal
dictation and may be removed at any
moment"
The policies of the foundations must
inevitably be colored if not controlled
to conform to the policies Of the cor
porations in which their securities are
invested, it is declared.
"The funds of the foundations" the
report continues, represent largely the
results either of the exploitation of
American workers through the payment
of low wages or Of the exploitation of
the American public through the exac-
tion of high prices. The funds. there
fore, by every right belong TO the
American people
MOTIVES are questioned.
Documentary evidence in the hands
OF the commission indicates, saws the
report, that the so-called investigation
of industrial relations by the Rookie
Teller Foundation "has not. as claimed,
either a scientific or a social basis, but
originated TO promote the industrial
interests of Mr.. Rockefeller"
This investigation formed part. il is
Il, oTe1l ~
union educational campaign" in which
he planned to utilize literature con-
tanning statements which were known
TO him at the time to be untrue and
misleading, and also literature contain
ing statements which constituted a
malicious libel upon a large body Of
American citizens for example. the
following statement of Professor John
J. Stevenson:
Labor unions defy the law. but
are ever ready to demand its protec-
ton; their principles are no better
than those Of the India thugs who prac-
tised robbery and murder in the name
of the Goddess Cali"
Instances of the exertion of infu-
ence by the Rockefeller and Carnegie
foundations on other public ser
vice enterprises are cited in the case of
"the adoption of a definite line of
policy by the Bureau Of Municipal Re-
search of New York TO meet the con-
ditions imposed by Mr. Rockefeller in
connection with proposed contribu-
tons" and also in that of the abandon
ment by several colleges and universe
ties Of sectarian affiliations and charter
clauses relating TO religion in order to
secure endowments from the Carnegie
corporation and pensions for profess
sors from the Carnegie foundation"
Control Over Teachings.
The report also asserts that apart
from the foundations there is "devel-
oping a degree of control over the
teachings of professors in our colleges
which constitutes most serious men
ace" Two professors of wide reputa-
tion were dropped from their positions,
il says, because of their interest in
the cause of the strikers and in pro-
gressive legislation.
The ultimate possibilities of the
foundations. II says, "are so grave a
menace not Vniy as regards their own
activities and influence, but also the
benumbing effect which they have on
private citizens and public bodies, that
IL they could be clearly differentiated
from other forms of altruistic effort 1t
would be desirable TO recommend their
abolition"
Suggesting a Federal charter as an
alternative, the report proposes that
the funds TO be held by the founda-
tions shall be definitely limited, their
powers be exactly defined, accunula-
ton OF funds by compounding unex-
pended income be prohibited, that there
l. ..tI inc ~ G