Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-08-26
Foundations and Colleges
Under the Control and
Domination OF Interests


dropped from the positions they had oc-
cupied and no valid reason Tor such &C
ton was made public. Both were Wit
nesses before the Commission, and made
statements based upon their own expert
knowledge and experience which were
given wide publicity. One was profess
sor of law in a state university. who had
acted as counsel for the strikers in Col
orado; the other a professor Of econo-
mics, who had not only been active IN
fights in behalf Of child labor legisla-
ton and other progressive measures but
had recently published a work comparing
the income paid for property ownership
with the income paid for all classes OF
service.
In the case Of the state university we
know that the coal operators In con-
junction with other business interests
had gained the ascendency and exercised
a great degree of control over the for
mer Governor of the State, that the coal
operators were bitterly opposed to the
professor in question, and that the dis
mssal of the professor had been pub
licly urged by the operators upon num-
erous occasions. and we have the IN
controverted statement Of the professor
that he had been warned that II ne tes-
titled before the Commission he would
not be reappointed. In the case OF the
professor in the other university (Which.
though privately endowed. receives large
appropriations from the State) we know
that its trustees are interested IN cor
porations which have bitterly opposed
progressive legislation, and are men
whose incomes are derived from prop
erty ownership and not from service.
In the face of such an enormous pro-
blem one can only frankly confess IN
ability to suggest measures which Will
protect the Nation from the grave dan
gers described. 1t is believed, however,
that if Congress will enact the meas
ures already recommended, providing for
heavy tax on large inheritances with
rigid limitation on the total amount of
the bequest, for the reclamation by the
Federal Government of all parts of the
public domain Including mineral rights
which have been secured by fraud, and
for a tax on non-productive land and
natural resources, a great step in the
right direction will have been taken.
AS regards the foundations created
for unlimited general purposes and en-
dowed with enormous resources, their
ultimate possibilities are so grave
menace, not only as regards their own
activities and influence but also the be-
numbing effect which they have on pri-
vate citizens and public bodies, that II
they could be clearly differentiated from
other forms of voluntary altruistic effort.
it would be desirable to recommend their
abolition. 1t is not possible, however. at
this time to devise any clear-cut defini
ton upon which they can be differen-
tiated.'
Recommendations.
LAS the basis for effective action, it is
suggested that the Commission recon-
mend:
/. The enactment by Congress of
statute providing that all incorporated
non-profit- making bodies whose present
charters empower them to perform
whose funds exceed s1,O0O.000. shall be
required to secure a Federal charter.
The Federal charter should contain the
following provisions:
a. Definite limitation Of the funds to
be held by any organization. at least not
to exceed the largest amount held by
any at the time of the passage of the
act.
the powers and functions which the or
ganization is empowered to exercise,
with provision for heavy penalties. if its
corporate powers are exceeded.
C. Specific provision against the ac-
emulation of funds by the compromising
of unexpended income. and against the
expenditure in any one year of more
than 10 per cent. of the. principal
d. Rigid inspection of the finances as
regards both investment and expendi-
ture of funds.-
e. Complete publicity through open
reports to the proper Government Off
Gals.
f.. Provision that no lone of work
which is not specifically and directly
mentioned in the article of incorporation,
shall be entered upon without the unani-
of trustees. nor unless Congress is di-
rectly informed of such intention through
communication to the Clerk of the
HOUSE House and. and the Clerk Of the Senate,
Congressional Record, nor until six
months after such intention has been de-
clared.
.. Provision by Congress for the
Committee or commlssion Dy Of ali Hpee en
dowed institutions. both secular and re-
ligious, whose property holdings or in
come exceeds moderate amount. The
CoiiHiiltCc VI COMMISSION SHOulu Uc
given full power to compel the produce
uon or books and papers and the at
tendance and testimony of witnesses. 1t
should be authorized and directed to in
vestigate not only the finances Of such
institutions, but all their activities and
affiliations.
3. AS the only effective means Of coun-
teracting the influence of the founda-
tons, as long as they are permitted to
exist. consists in the activities Of Gov
ernmental agencies along similar lines,
the appropriations of the Federal Gov
eminent for education and social service
should be correspondingly increased"
Discussing the difficulties that con-
'front.' wage earners in collecting labor
claims and securing redress for minor
establishment either by states or mu-
inequalities of Industrial courts similar
TO those which have proved to be sue
cessful in European countries.
1t also recommends that commission
ers OF labor or the industrial commits
sions OF the several states should be
directed to prosecute such claims vigor-
ously.
Unions and the Law.
Discussing the legal status Of trade
unions and the law relating to industrial
disputes. the report says:
2. The general effect Of the decisions
OF American courts, has been to restrict
the activities Of labor organizations and
deprive them Of their most effective wea-
pons, namely. the boycott and the power
OF picketing. while on the other hand