Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-03-03

As though to illustrate the biblical
admonition to cast your bread upon
the waters, the great phNantnroplc
organizations of the United STATES,
despite manifold benefactions, stood,
at the turn Of the great depression. In
better financial shape than when they
entered the period. This Is not true
of every one but, grouping the l6
whose reports are made publlc-and
these include the largest and most
famous-the grand total OF assets at
the end of the period is greater than
1t was at the beginning. This Is due
to a variety of causes but, seemingly.
in no case has parsimony been re-
sponsible.
1t is a remarkable fact that institu-
lions whose business it is to give
, money away should emerge from a
season Of almost universal distress
richer than they were at the out
set. The explanation in some cases is
excellent management of the trust
funds, wise investments, and avoid
ance of financial pitfalls. In other
cases there have been fresh contribu-
lions to the funds which strengthened
their position.
Here are the tremendously impress
sive figures. For IA foundations whose
reports are based on ledger value, the
value in 1880, at the beginning of the
depression, aggregated $545,677 CAT.
At the end of 1888 a figure of $546,-
957 ,20s Is shown. It Is entirely pos
sible, indeed probable, that these fig
ures, at least at the end Of the period,
do not reflect true value. There is not
available a detailed report on just
what securities are held in the port
folios. 1t is probable that in some in
stances, were sales forced, less than
the ledger value would be realized.
But, unlike active business houses,
these foundations do not have to sell
their securities. They may hold them
for many years. Therefore, there is
some reason to agree that the trustees
are sound In sticking to ledger basis
At any rate, huge incomes have been
produced which is an indication that
most Of the securities must be all right.
Only two Of the foundations have
reported on market-value basis and
these have, indeed, revealed shrink
age, but the shrinkage is not all due
to market decline, for enormous sums
have been paid out. In 1880 these
two. on the marketable basis,
showed assets Of $22 1888 SIT.
Rockefeller and Carnegie Benefactions.
One Of the greatest of all such in
situations, the Rockefeller Founda-
ton, came out with a richer fund
than it had at the beginning, but this
gain is obviously due to the additional
contribution made by the Rockefeller
family. In 1880 the Rockefeller fund
possessed $142, 675,978. 1t had fallen
by $1,300,000 in 1881. but accretions
brought 1t back at the end Of the Pc
riod to $l53, 578.786-greater by more
than $1o,G00,000. Closely associated
is the Spelman fund of New York,
which represents Rockefeller money
inasmuch as the elder Rockefeller
named the fund after his wife, Laura
Spelman. At the beginning of the
period in 1880 the fund was worth
$9,452,3s7. Heavy appropriations were
made and in 1888 there was but
$6,596, $40 remaining.
Analysis Of the operations of these
various funds shows that while some
devoted only income to their eleemoSy-
nary work, others, recognizing the
peculiar emergencies of the times, ap-
propriated from principal. Where this
was done without further enrichment
from gifts, the total inevitably fell.
While the Rockefeller Foundation