New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-14
DENIES
FOUNDATION IS
UNABLE TO PAY
Declares That Finances OF
Organization Are on
Solid Basis.

Andrew Carnegie emphatically denied
yesterday that the Carnegie Foundation
was unable to meet its obligations. His
statement was made through Clyde
Furst. secretary of the Foundation, but
Mcneil Sayre, who formerly was en-
poyed by the Foundation, who aided in
forming its pension system, and who
is now building up a pension system
for the Protestant Episcopal Church. IN
sists that the Foundation cannot meet
its obligations, as set forth in its trst
published report
"The first report OF the Carnegie
Foundation stated that the income from
100000 would provide perpetually
for professors pensions in 100 col
leges," said Mr.. Sayre yesterday. But
what has happened is that the income
from $15,000,O00 is exhausted in pay
ing professors pensions in eighty col
leges.
"The reason is that the Foundation
did not accumulate business-llke and
essential data TO work upon IN the be
ginning: il may have these data now,
but none has been officially published.
] base my opinion on figures and re
suits"
Calls Methods Unsound.
Mr.. Savre explained further that
bcncfciaries of the fund have increased
so rapidly that the Foundation has not
been able to meet its obligations to
the 100 institutions of learning, the
reason for this being that sound foun-
dations for q perpetual pension sys-
tenn were not laid, and that competent
actuaries had not been engaged to ad-
vocate proper plans for the Founda-
tons aims.
CLYDE Furst replied TO these allega-
tions as follows: "The Carnegie
Foundation is far from being bankrupt.
The last annual report of the treas
urer. now in press, shows a million
dollar surplus from accumulated IN
come. .
mir. Sayre, who is a good friend Of
mine, is usually we'll Informed con
corning pensions. lie was a member
of the Carnegie Foundation for SIX
wears, devoting good deal OF time TO
the study Of pensions. A year and a
half ago he left the Carnegie Founda-
ton to accept an offer from the
Church Pension Fund TO take charge
Of its pension system.
"The system of the Church Pension
Fund is to be contributory, the fund
being provided by the parish OF each
diocese in proportion to the salary OF
the rectors. Mr. Sayrc is so strong an
advocate Of this system that he ap-
pears to believe there Is no soundness
in any pension system which, like that
Of the Carnegie Foundation, Is not
contributory.
"The reasons for adopting the sys-
tenn of the Carnegie Foundation are
fully discussed in the annual reports,
which contain extensive studies OF all
new DEVELOPMENTS in the field Of pen
sions. These studies, under direction
of eminent actuarics. begin with the
first report, which Nh Sayre criticises
for containing nothing but generaliza-
lions. II contains actuarial statistics
Of 3S9 universities and colleges, OF pro-
tcssors' salaries i'm 32I institutions and
Of other pension systems.
Foundations Record.
"Mr. Sayre refers to the financial
estimates of this report as being too
low. Since that time, however, the
plans of the Foundation have been
much expanded, the maximum allow
ance increased from $4,000 TO $4,000;
instructors as well as professors have
been included; pensions for widows
have been made automatic, and state
universities have been admitted.
For this last purpose Mr.. Carnegie
offered in 1908, i'm addition to the Sl0,-
100000 endowment, 100000 more
than would be needed. Only three of
thes, 100000 have been called for
in 1911 and 1912; the other 100000
are not yet needed
"Future financial needs OF the Foun-
datlon depend upon the increase in the
number Of professors in the institu-
tions IN its list, and the increase Of
salaries the retiring allowance being
based upon salaries
In general. both the number Of pro-
fessors and the size Of their salaries
have increased at the rate Of about 10
per cent every five years. II this should
continue for thirty years the cost Of
retiring allowances for these inStitu-
tions would be about doubled. This
actuarial estimate, although probably
too large, is much more likely 10 be
correct than MIR. Sayre's estimate of a
tenfold increase IN obligations. which
would mean that IN 1915 Columbia
University. for example. would have
10000 students and pay its professors
$4,000 & year
However, Mr.. Sayre insists. as he
maintained in Pittsburgh Monday
night, that the Carnegie Foundation
Is unable TO meet its obligations. and
that II viii remain so until II Remedies
Its pension system.