The New York herald., 1922-01-31
New Gifts Will Be Used to
EndOw Universities
Medical Branches.
HAVE OPERATED AT LOSS
Action Is Result of Campaign
Started for Remedying
Serious Condition.

The annual report of the General
Education Board, which was made
public yesterday, announced that John
d. Rockefeller had given the board
additional funds aggregating approxi-
mately s45.O0O,O0O, with tie sugges-
tion that they be added to the general
resources of the board, although he
would approve If the board thought it
wise to devote those funds to medical
education.
The gift followed the calling of Mr..
Rockefeler's attention to the fact that
a general campaign looking toward
schools Of medicine had to be inaugu-
rated, because of conditions which
forced such schools to operate at a
loss.
*120,7sS,O84 Total Gifts.
The report says that the total Of Mr..
Rockefeller's gifts to the board. esti-
mated at their book value at thesdates
when they were made. is $126.TsS .o9l
The capital funds which the board hell
or June 20. 1921. were ss4. 65. .652. it's cap
ital having been decreased by A2. 1872. 42.
Thus the board has appropriated its en-
tire annual income and 80 per cent. of
its capital The report says:
THE General Education Board was
created to aid in accomplishing certain
ends that can at this time he perhaps
best accomplished through specific type
ever. regardless of changes of social.
political. educational or. economic
character. In due time it's objects will
have been achieved; new problems will
Board will then have ceased to exist.
The statesmen and benefactors of the
next age will invent the organizations
and provide the means then requisite
The report explains that in the last
few years the resources of the board
have been increased largely by Mr..
Rockefeller to meet new demands and
unexpected opportunities. The rise of
prices threatened the existence of many
endowed educational institutions. The
cost OF living had gone up 80 per cent.
and salaries perhaps % per cent. In
order to stimulate giving Mf. Rookie
feller placed securities valued at the time
at approximately s5O.000.o00 at the
boards disposal.
Up to 1909 Mr. Rockefeller had
given to the board approximately s21.-
900. 900 to be held as permanent en-
dowment. the income alone to be distrib-
uted. In that year he added 10000. 900.
giving to the board discretionary power
to distribute principal or income. at the
same time removing the limitations at
tached to his previous gifts. II was
stipulated. however. that before the
principal was impaired an affirmative
vote Of two-thirds Of the members Of the
board should be required at special
meeting held on not less than thirty
days notice.
Removes All Restrictions.
In making his gifts for medical edu-
cation apd teachers salaries within the
last two years Mr.. Rockefeller has said
he would cordially indorse n decision
TO use the principal as we'll az the m
come'' In a letter dated December Is,
1926. which IL Incorporated In the re-
port, lie has removed all restrictions on
manner II sees fit of the principal Of all
the gifts lie has made.
After explaining that institutions of
learning should Undoubtedly protect
their capital and preserve II inviolate
from generation to generation the re-
port says
"But there Is no reason why giving
orga nizations like the General Education
Board or why benevolent giver should
decline to meet n pressing need to-day
in order TO relieve posterity OF a re-
sponsibility that will mature genera
tion or more hence. OF course there
should be no reckless distribution OF
large funds there is abundant room for
the exercise of far sighted caution and
discrimination. But subject to such con-
sidcrations a body like the General
Education Board should be trusted In its
discretion to devote Its resources--prin-
cipal and income--to purposes OF weight
and Importance"