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GIFT OF
THE CARNEGIE FOUNDATION
FOR THE ADVANCEMENT
OF TEACHING
FOUNDED 1905
Mgitized by the I ht§rriet Archive
in 2007 with funding from
— IVIicrosoft Corporation
^^^- - ' ^^ R ST T V
REPRINTED FROM A HANDBOOK OF THE PUBLIC
BENEFACTIONS OF ANDREW CARNEGIE
1919
http://www.archive.org/details/carnegiefoundatiOOconcrich
THE CARNEGIE FOUNDATION
FOR THE ADVANCEMENT
OF TEACHING
FOUNDED 1905
REPRINTED FROM A HANDBOOK OF THE PUBLIC
BENEFACTIONS OF ANDREW CARNEGIE
1919
THE RUMFORD PRESS
CONCORD, N. H.
i^
THE CARNEGIE FOUNDATION FOR THE
ADVANCEMENT OF TEACHING
Founded 1905
The six institutions described in the first section of this Manual
were founded in years so recent that their beginnings are today-
fresh in the memory of those fortunate enough to have been
associated in their inception and development. To them the
personality of the founder, his belief in human progress, his opti-
mism for the future, his sincere desire to do the best with the great
fortune genius had brought together, were part and parcel of these
early associations.
Before the memories of these days grow dim, while the founder
is with us, still full of faith for the future, notwithstanding the
confusion and the pain that have fallen upon the world, it seems
fitting to set down in the pages of this handbook an account of
these beginnings, to tell briefly the story of how these enter-
prises were launched, what were the visions that set them afloat
on the stream of time, and to render some account of the short
voyage they have made in common. The statement which
follows is the story of the first twelve years of the Carnegie
Foundation for the Advancement of Teaching, the fourth in time
of Mr. Carnegie's spiritual children, born in 1905, and christened
by an Act of Congress in the spring of 1906.
For a special reason the present moment is fitting for an account
of the Carnegie Foundation, told not entirely in statistics but in
terms of human experience.
When the Carnegie Foundation was begun neither the founder
nor the Trustees conceived of the teacher's pension except in
terms of a free gift to a man grown old in a life of unselfish service.
While the Act of Incorporation and the Rules adopted by the
Trustees reserved to them full power to change their policy and
plans, this conception of the teacher's pension seemed at that
time the basis of a permanent policy.
>■ » » « p
2 MANUAL OF THE CARNEGIE BENEFACTIONS
Quid non longa valehit permutare dies? or as Mr. Carnegie pre-
ferred to quote from one of his own poets — "Nae man can tether
time or tide." Time has moved swiftly with the Carnegie
Foundation, and the lapse of twelve years finds it working for
the same objects for which it was founded but through plans
greatly modified by experience and study.
In no respect did Mr. Carnegie show greater foresight than in
emphasizing, as usual, in his letter of gift the freedom left to his
Trustees to modify, or, under certain circumstances, tochangecom-
pletely the methods of applying the great endowments entrusted
to them. To the Trustees of the Carnegie Foundation was com-
mitted the problem of teachers' pensions. The pension problem,
not alone for teachers but for all groups in the body poUtic,
became within a few years thereafter a social and economic ques-
tion of the highest importance. The Trustees of the Foundation
were led after years of study to a conception of a pension system
widely different from that with which they started. As honest
and ponscientious Trustees, they have sought to face resolutely
the difficulties of the transformation they conceived to be neces-
sary.
In this process the founder has himself taken the keenest
interest. It is a source of the deepest satisfaction that he has
lived to approve step by step the process under which the original
plan of administration of the Carnegie Foundation has been
modified, in the light of experience and study. In his judgment
these changes are changes in method only, whose only object is
to serve in a deeper and larger way the great purpose for which
the Foundation came into being.
I
ORGANIZATION AND ADMINISTRATION
The Carnegie Foundation was the outcome of Mr. Carnegie's
sympathy with the cause of education, and of his desire to be of
service to the teachers of America. In a letter of April 16, 1905,
announcing a gift for this cause, he wrote ''I have reached the
FOUNDATION FOR ADVANCEMENT OF TEACHING 6
conclusion that the least rewarded of all the professions is that
of the teacher in our higher educational institutions. . . .
Able men hesitate to accept teaching as a career, and many old
professors whose places should be occupied by younger men can
not be retired. ... I have, therefore, transferred to you
and your successors, as Trustees, $10,000,000 five per cent first
mortgage bonds of the United States Steel Corporation, the rev-
enue from which is to provide retiring pensions for the teachers
of universities, colleges and technical schools in our country,
Canada and Newfoundland, under such conditions as you may
adopt from time to time." This letter was addressed to twenty-
five men including in their number many of the best known
presidents of colleges and universities in the United States, such
as President Eliot of Harvard, President Harper of Chicago, and
President Wilson of Princeton. A list of this first group of Trust-
ees is given in the appendix of this paper.
The first Executive Committee was composed of the following
Trustees: Henry S. Pritchett, ex officio, Nicholas Murray Butler,
Robert A. Franks, Charles C. Harrison, Alexander C. Humphreys,
Frank A. Vanderlip, Woodrow Wilson.
The Executive Committee, by the direction of the Board,
obtained from the Congress of the United States an act of in-
corporation.
This act enabled the corporation to receive and maintain funds
for paying pensions to college teachers in the United States,
Canada and Newfoundland, and ''in general to do and perform
all things necessary to encourage, uphold and dignify the pro-
fession of the teacher and the cause of higher education" in
these three countries. The act is printed in full in the appendix.
Of the original members of the Board fifteen still remain in
service. President William R. Harper died before taking his
seat. Other members have resigned as they have given up their
university places.
The by-laws of the Board of Trustees provide for the election
each year of a chairman of the Board, who has duties independent
of the President, including the presiding over meetings, the ap-
4 MANUAL OF THE CARNEGIE BENEFACTIONS
pointment of committees, and the designation each year of an in-
dependent auditor to examine the books and accounts of the
Foundation. The following Trustees have served as chairman
of the Board: President Charles W. Eliot, from 1905 to 1909;
Provost Charles C. Harrison, from 1909 to 1910; Principal Wil-
Uam Peterson, from 1910 to 1914; President William Frederick
Slocum, from 1914 to 1917; President Arthur Twining Hadley,
since 1917.
The administrative officers of the Board are: Henry S. Prit-
chett. President; Robert A. Franks, Treasurer; Clyde Furst,
Secretary.
These officers are appointed by and hold office at the pleasure
of the Board.
The annual meeting of the Board of Trustees is held on the
third Wednesday in November, a date which falls near the birth-
day anniversary of Mr. Carnegie. It has been the custom at the
annual gatherings for Mr. Carnegie to meet the Board at a luncheon
held between the morning and afternoon sessions at which, with-
out taking part in the business meeting, he has been able to ex-
press his conception of the scope and development of the work
of the Foundation. These conferences, particularly those of the
earlier years, will long be remembered by the Trustees as gather-
ings from which they came away full of the hope and the faith of
which the founder was so triumphant a representative.
When the Board had obtained a charter and was duly organized
for its work, the first task to be met was the formulation of defi-
nite rules for the granting of retiring allowances.
it was clear that the granting of such allowances upon petition
and fortuitously could serve no permanent purpose. Retiring;
allowances to be of value must come in accordance with rules
under which a teacher would be entitled to anticipate such an
allowance under stated conditions. Furthermore, it was clear
that the funds at the disposition of the Trustees could provide
retiring allowances for a limited number of teachers only. The
Trustees therefore admitted to the privileges of the retiring allow-
ances certain institutions, whose work was clearly of true college
FOUNDATION FOR ADVANCEMENT OF TEACHING 0«
or university quality, and fixed rules for retirement under which
the teachers in these institutions might expect retiring allowances.
These are known as associated institutions.
The rules adopted for conferring retiring allowances were
based upon length of service and upon age. Twenty-five years
of service as a professor was the minimum basis of the service
pension and sixty-five years the minimum limit of age at which
retirement could be asked.
In making and announcing these rules, the Trustees of the
Foundation took pains not to bind themselves to any contractual
arrangement or to promises they might be unable to fulfil. In
connection with the announcement of the rules, and as part of the
same memorandum, they reserved the right to make such changes
as experience might indicate as desirable for the benefit of the
whole body of teachers. This right was soon exercised, in 1908,
by the extension of the privileges of the Foundation to widows of
teachers and to instructors as well as to professors, and in 1909
by the elimination of the pension granted on the basis of service
alone.
Notwithstanding the need to grant retiring allowances accord-
ing to rule, rather than in response to requests and recommenda-
tions, the Trustees realized that it was Mr. Carnegie's wish to
serve the old and faithful teachers of this generation, to as great an
extent as possible. The Trustees have therefore always devoted a-
considerable proportion of the income of the Endowment to the
payment of retiring allowances to individual teachers, in institu-
tions not associated with the Foundation, but who had grown old
in teaching, and who had rendered long and distinguished service
in their respective States. The income of the Foundation has
never been pledged for the indefinite future to a group of teachers.
Immediately upon the announcement of the rules of retirement,
the Trustees were called upon to decide a difficult question of
general poUcy. Mr. Carnegie, in the language of his letter of
gift, did not ''presume to include" institutions controlled and
supported by the States. The representatives of the tax-sup-
ported institutions made vigorous application to be included iA
6 MANUAL OF THE CARNEGIE BENEFACTIONS
the list of institutions sharing in the pension privileges. The
inclusion of State institutions was urged mainly upon three
grounds — that these institutions were nonsectarian and therefore
belonged to the class of colleges in which Mr. Carnegie was most
interested; that to omit them from the pension privileges of the
Foundation would divide American institutions of learning into
two contrasted groups, and in the third place it was argued that
the States of the Union and the provinces of Canada would never
pay pensions to teachers, and therefore aid from private sources
was essential if pensions were ever to be obtained by the teachers
in tax-supported institutions.
By direction of the Trustees the matter was made the subject
of a special report by the President. This report presented the
arguments for and against the establishment of a pension system
in State institutions by private endowment, and urged in con-
clusion that the best interests of the teachers in State institutions
would be conserved by obtaining pension privileges through the
State governments, even though it might require time to educate
the pubUc to this notion.
Mr. Carnegie in March 1908, offered five millions of dollars
■additional endowment to enable the Trustees to enlarge the num-
ber of institutions *' should the governing boards of any State uni-
-versities apply for participation in the fund and the legislature
and governor of the State approve such appU cation." He di-
rected that the two funds thus provided be considered a single
endowment. In accordance with these conditions, application
has been made on behalf of all of our State universities for a share
in the pensions provided by this endowment, and these appUca-
tions have been approved by the legislatures and governors of the
respective States. Similar action has been taken in the provinces
of Canada.
It is interesting to note that although little more than ten years
have elapsed since this discussion, pensions for teachers are al-
ready being paid in whole or in part by the following State or
Provincial Governments: Arizona, California, Colorado, Connecti-
cut, IlUnois, Indiana, Maine, Maryland, Massachusetts, Minne-
FOUNDATION FOR ADVANCEMENT OF TEACHING 7
seta, Nevada, New Hampshire, New Jersey, New York, North
Dakota, Pennsylvania, Rhode Island, Vermont, Virginia, West
Virginia, and Wisconsin, and in the Canadian provinces of Ontario
and Saskatchewan.
Seventy-three institutions of higher learning have been ad-
mitted to the list of associated institutions. Of these, sixty-
three are endowed colleges controlled by boards of trustees,
while ten are tax-supported institutions controlled by State,
provincial, or municipal governments.
Of the seventy-three associated institutions seventy are in the
United States and three in Canada. There are in the United
States approximately one thousand institutions granting college
degrees. In the Dominion of Canada, where the degree-granting
power has been much more carefully guarded, there are some
seventy institutions bearing the name college or university. The
institutions whose professors participate in the privileges of the
pension system of the Foundation include, therefore, only about
seven per cent of the degree-granting institutions of the United
States and Canada, but as these institutions include some of the
largest endowed and tax-supported universities their teachers
constitute a much larger percentage of the total number of coUege
teachers in the two countries. A list of the associated colleges
and universities is given in the appendix.
The Carnegie Institute of Technology also enjoys the privi-
leges of an associated institution, thus bringing the total to
seventy-four.
In these seventy-four colleges, universities and technical schools
there were, as of date April 1, 1917, 6,593 teachers including
professors, associate or assistant professors, and instructors. Of
these 715 were women.
The cost of the retiring allowances for these teachers and of
pensions for widows of teachers amounted for the year ending
June 30, 1918, to $680,855.71. For the thifteen years of its
existence ending November 20, 1918, the Foundation has granted
469 retiring allowances and 151 widows' pensions in the associated
institutions at a cost of $4,910,967.17 and 135 allowances and 43
8 MANUAL OF THE CARNEGIE BENEFACTIONS
widows' pensions in87 other institutions at a cost of $1,349,532.99.
The total expenditure for the entire 798 allowances and pensions
amounted therefore at the date mentioned to $6,260,500.16.
These payments were made, in the main, to men and women
grown old in a profession in which there had been scant oppor-
tunity to provide against dependence in old age. How much of
human anxiety the expenditure of this money has relieved, no
one can tell. To have rendered this service has been to the
founder of this institution one of the greatest satisfactions amid
the gradually lengthening shadows of advancing age. To him
the occasional letter of appreciation from an old teacher, or from
a teacher's widow, has meant a true benediction.
The administration of the Trust so far as Newfoundland is con-
cerned has presented difficulties. When it became necessary, in
the judgment of the Trustees, to pay retiring allowances through
institutions of college grade, articulating with a secondary school
system, the educational system in Newfoundland was so unlike
those in the United States and Canada, that it has been found
necessary to grant such retiring allowances as were paid to teachers
in Newfoundland to individuals, upon the recommendation of the
Newfoundland authorities.
The transformation of the retiring allowance system into a con-
tributory form, as described hereafter, will offer to teachers in
higher education in Newfoundland, and in particular to those
hereafter entering the profession, exactly the same opportunities
as to those in the United States and Canada.
Among the distinguished scholars and teachers who have re-
ceived retiring allowances at the hands of the Trustees of the
Foundation have been the following: Professors William James,
Palmer, Peabody, and Toy of Harvard, Beers, Sumner, Ladd, and
Woolsey of Yale, Corson and De Garmo of Cornell, Burgess and
Chandler of Columbia, Ormond of Princeton, March of Lafayette
and Gildersleeve of Johns Hopkins; Deans Wright of Yale, Van
Amringe of Columbia, Stoddard of New York University , and Snow
<ind Woodward of Washington University; Edgar Gardner Mur-
phy, secretary of the Southern Education Board; Presidents
FOUNDATION FOR ADVANCEMENT OF TEACHING 9
Eliot of Harvard, Patton of Princeton, Remsen of Johns Hopkins,
Seelye of Smith, and Taylor of Vassar, Gordon of Queen's Univer-
sity, Northrup of Minnesota, Jesse of Missouri, Jordan of Leland
Stanford; WiUiam Pilot, president of the Council of Education of
Newfoundland; and William T. Harris, United States Commis-
sioner of Education.
II
STUDIES IN EDUCATION
In the charter of the Foundation, provision is made for engag-
ing in any endeavor within the field of education that tends to
promote and advance the profession of the teacher. It has always
been recognized by the Trustees that the study and report upon
educational problems is one of the fruitful fields of endeavor upon
which such an endowed agency could enter. For this work, the
detachment of the Foundation from local interests and institution-
al plans presents a certain advantage. It goes without saying that
those in charge of such an organization can assume to possess no
wisdom superior to that of college teachers, or of university
presidents, or of officials of State systems of education. They
may, however, by reason of the very detachment of such an
endowment, be able to approach such questions free, to some
extent at least, of local interest or of institutional parallax. If
the studies of the Foundation have resulted in a real service to
education, the result is due, in part at least, to this fact.
Recognizing the value of such work, Mr. Carnegie, as president
of the Carnegie Corporation, addressed a letter on January 31,
1913, to the Trustees of the Foundation in which he offered
$1,250,000 of four per cent bonds as an endowment for a Division
of Edui^ation al Enq uiry. The Trustees accepted this gift as a
separate trust, and the fifty thousand dollars of annual income
has been devoted to the work of educational enquiry. In making
such studies, the effort has been made to avoid the formation of a
bureau having a fixed organization and a crystalUzed educational
program. The principal studies have been made by men selected
10 MANUAL OF THE CARNEGIE BENEFACTIONS
for their special qualifications, who have come temporarily to
the service of the Foundation, giving their whole time and thought
to the study during the period of their stay, and at the com-
pletion of the study, returning to their former places. Universi-
ties and colleges have cooperated most cordially with the Founda-
tion by lending their professors for periods of one, two, or three
years for such studies. Among those who have temporarily
served the Foundation in its various studies are Abraham Flexner,
now secretary of the General Education Board ; Morris Llewellyn
Cooke, now of the War Industries Board; Professor Josef Red-
lich of the University of Vienna; Charles Riborg Mann, now
adviser to the War Department Committee on Education ; Deans
Pound, Stone, Hall, Bates, James, and McGovney, and Professor
Costigan of the law schools of Harvard, Columbia, Chicago,
Michigan, Missouri, Iowa, and Northwestern; among professors-
of education: Thorndike and Strayer of Columbia, Dearborn of
Harvard, McMurry of George Peabody College, Bagley of
Illinois, Josselyn of Kansas, and Elliott of Montana; and Com-^
missioner Hillegas of Vermont. Technical advice has been se-
cured from a large number of others.
In the prosecution of educational studies, the Foundation has
offered to those who thus cooperated with it the largest measure
of freedom, both in their methods and in their utterances. The
discussions and papers relating to educational enquiries have been
printed in part in the annual reports of the President, and in part
in special publications known as bulletins. These discussions,
and reports have covered a wide range of topics, such as miUtary,
civil, clerical, industrial, and teachers' pension systems; State,
provincial, and denominational support and control of higher edu-
cation and financial reporting; college advertising and catalogues;
college entrance requirements and their administration; the ap~
pointment, salaries, tenure, and retirement privileges of college
teachers; the reporting of college finances; the present state of
agricultural, engineering, legal, and medical education and the
FOUNDATION FOR ADVANCEMENT OF TEACHING 11
training of teachers; academic standards in general; education
and politics; State educational reports; the legislative history of
federal aid to education, and European views of American educa-
tion. The Foundation has just issued bulletins concerning En-
gineering Education and Pensions for Public School Teachers.
Studies of the training of teachers and of legal aid societies are
nearly ready. Steady progress is being made on a comprehensive
study of legal education.
In the prosecution of these studies the Foundation has had an
enlightening experience, not only as to the difficulty of obtaining
men fitted for the discriminating and laborious study of educa-
tional enquiry, but also as to the expenditure of time and money
necessary to obtain the information upon which alone a just and
useful report could be based.
The re port o n medical education in the United States and in
Europe, contained in two bulletins, occupied four years in prep-
aration and cost, including publication, approximately forty
thousand dollars.
The re^port on the educational system of Vermont occupied
two years in preparation, and cost in its preparation and publica-
tion twenty thousand dollars.
The study of the training of teachers, part of which is now in
presS; has engaged first and last the services of seventy-five per-
sons, and deals comprehensively with the training institutions
and the twenty thousand teachers of a great State. It has oc-
cupied more than four years and has cost seventy-five thousand
dollars.
The report on legal education begun in 1913 is not yet complete.
One bulletin has already appeared dealing with the Case System
of instruction in law schools. A second bulletin, entitled ''Justice
and the Poor," is now in press. The study has involved not
only the examination of every law school in the country but the
study of the system of admission to the bar in forty-eight States.
At times as many as fifty people have been occupied simultane-
ously in this study. The mass of material brought together is
12 MANUAL OF THE CARNEGIE BENEFACTIONS
enormous, but it has gradually been digested to the point where
its evidence can be made clear, not only to the trained lawyer,
but to the intelligent layman interested in the administration of
justice.
In a country so large as ours where conditions are so varied
and the number of men and of organizations to be considered in
any educational enquiry is so great, the mere gathering of the in-
formation necessary to come to a fair knowledge of the truth is a
costly and laborious undertaking.
Whenever the Foundation has undertaken a study of this char-
acter, it has adopted the principle that a thorough and painstaking
study, based upon full evidence and fairly and honestly inter-
preted, is worth more than any number of superficial and partial
reports. Having begun such an enquiry, it has 'spared neither
expense nor time to procure the information deemed necessary
by those having the study in charge, and it has steadily declined
to publish a report until the subject has been, to the best of our
knowledge and ability, worked out. Having reached that point,
the Foundation has endeavored to print its reports in as clear and
simple a form as possible. One must under such conditions
sometimes be disappointed by unexpected delays. Time is itself
a factor in the value of a report or of an educational study.
Nevertheless, the dangers from delays due to such causes are not
to be compared to those that arise from hasty investigations.
A list of the publications of the Foundation, including the an-
nual reports and the bulletins devoted to special enquiries, is given
at the end of this paper. There is a cumulative index to the first
ten reports.
Ill
THE REORGANIZATION OF THE PENSION SYSTEM
When the Carnegie Foundation was incorporated in the spring
of 1906, there was no conception of a pension plan in the minds of
Mr. Carnegie and of his Trustees, except that of the free payment
of pensions to as many teachers as the income of the endowment
FOUNDATION FOR ADVANCEMENT OF TEACHING 13
would provide. In making such payments, the Trustees had
clearly recognized that such pensions or allowances must be sti-
pendiary in character, that is to say, they must have some fair
relation to the active salary. In general, the rules aimed to pro-
vide an old age pension equal to approximately sixty per cent of
the active pay during the last five years of service. The rules
were so framed that this proportion was about sixty per cent f®r
the average pay of the full professor; being larger than sixty per
cent for smaller salaries and less than sixty per cent for larger
ones. Thus a man retiring at sixty-five on a salary of $1200 re-
ceived a retiring allowance of SI 000; one retiring on a $3000 salary
a $1900 allowance, while one retiring on a $6000 salary received an
allowance of $3400. The maximum allowance granted was $4000.
The Trustees likewise adopted as a general policy the confer-
ring of retiring allowances through designated colleges and uni-
versities. No other plan was possible if the teacher was to re-
ceive his allowance under definite rules, while at the same time
the number of teachers to whom pensions could be given was
necessarily limited. The system of retiring allowances set up by
the Trustees in accordance with the general desire of the founder,
was, therefore, a non contributory pension, established in a
limited number of colleges and universities, under rules fixed by
the Trustees, and subject to modification as time and experience
might indicate.
Within a very short time the defects of this plan began to show
themselves. The establishment of a privilege so valuable as a
free pension, when restricted to a limited number of institutions,
involved discriminations between institutions which as time passed
became more and more difficult to justify.
The working of the rules themselves began to show results not
anticipated. Mr, Carnegie had in mind the offer of a pension to
the teacher grown old in the service. To the old teacher, such
a privilege coming unexpectedly at the end of long and faithful
work was a gracious and friendly service. The situation was
entirely different when the promise of a pension was held before
the eyes of the man who was twenty, thirty, or forty years away
14 MANUAL OF THE CARNEGIE BENEFACTIONS
from retirement. Within a few years, both Mr. Carnegie and the
Trustees began to have serious doubts of the wisdom of any sys-
tem of pensions provided entirely without the cooperation of the
beneficiary, whether he were a teacher, a government employe, or
an industrial worker.
There was only one thing that right-minded and courageous
men could do under such circumstances, and that was to make
a thorough study of the whole subject and, after full knowledge,
to go forward to ^ constructive and permanent solution of the
problem of teachers^ pensions.
As a preliminary, the literature of the world bearing on such
questions was brought together and discussed. The reports of
the Foundation and the material gathered at its office contain
probably the most complete statement of pension literature in ex-
istence. In addition, the Trustees of the Foundation sought the
advice and aid of expert actuaries, statisticians, and economists.
The pension problem has become in the last twelve years a
social and economic question of the first importance, and the
Trustees soon realized that the right solution of their problem
was one of far-reaching effect. They endeavored, therefore, to
deal not only with the details of teachers' pensions, but to deter-
mine the fundamental principles that must underlie a pension
system designed for any group in the body politic.
This study extended over a series of years. The steps by which
the various conclusions were reached are given in detail in the
reports and bulletins of the Foundation. They can be best ex-
amined in these publications.
The conclusions to which the Trustees were led were so impor-
tant, that these should be briefly stated in any account of the
first twelve years of the Foundation's history.
The facts clearly estabUshed by these investigations were the
following:
A pension system paid out of income, whether of a government
or of a corporation, at no cost to the beneficiary is expensive be-
yond all anticipation. Its cost is not only impossible to estimate
in advance, but has proved an intolerable burden even to the
practically unlimited income of a government.
FOUNDATION FOR ADVANCEMENT OF TEACHING 15
Experience shows further that while under the noncontrib-
utory plan the beneficiary appears to get something for nothing,
it is certain that in a limited number of years the pension will be
absorbed in the wage or salary schedule, and become practically
deferred pay, received by only a minority of those interested.
The effect of the so-called free pension upon the individual is
distinctly demoralizing. The notion of getting something for
nothing appeals to our universal human nature, but it is a prolific
breeder of human selfishness. Not only is this true, but the
Ufting from the shoulders of the individual of a responsibihty
properly and rightfully his is a source of weakness, not of strength.
What society needs is the machinery under which the individual
shall be able to discharge his obHgation, without making an
unreasonable demand either upon his financial resources or upon
his self-control.
The evidence brought together convinced the Trustees that a
noncontributory pension system, such as they had inaugurated,
was not in the permanent interest of the college teacher, and that
it should be transformed into a system in which the expense could
be definitely estimated in advance, in which the teacher should
have the security of an individual contract, and in which the
teacher and his employer, the college, should cooperate in estab-
lishing, maintaining, and governing the organization through
which the contracts for retiring allowances were to be made and
carried out. It is a source of great satisfaction that the founder
himself approved these conclusions heartily and completely.
When the Trustees had come thus far, their task was only be-
gun. It is one thing to point out the defects of a piece of social
mechanism; it is quite another to construct in its place one that
will serve. In this constructive effort the Trustees sought to avail
themselves of every possible aid from experts in America and
Europe, and they endeavored also to consult all those directly
interested in the outcome, desiring not only to obtain the benefit
of constructive suggestion, but also to meet as far as possible the
points of view of the teachers themselves, and of the various col-
leges and universities. With this end in view the Foundation
16 MANUAL OF THE CARNEGIE BENEFACTIONS
corresponded not only with hundreds of individual teachers, and
with college and university authorities, but invited organizations
such as the Association of American Universities, the Association
of State Universities, the Association of American Colleges, and
the American Association of University Professors to criticize the
provisional plans proposed, and to set forth themselves such con-
structive measures as in their individual or collective judgment
were desirable or important. These exchanges occupied more
than two years, and afforded every opportunity for conference with
and the cooperation of those interested.
Finally, the Trustees of the Foundation appointed a commis-
sion to consider a provisional plan, and to report upon the funda-
mental principles of a pension system. Besides Trustees of the
Foundation, this commission contained representatives of the
various organizations just mentioned. The commission had the
assistance of expert actuaries. In their report to the Foundation
the commission stated in definite and carefully chosen words, the
fundamental principles of a sound pension system. These prin-
ciples fall into two groups, the one resting upon economic and
social considerations, the other upon actuarial and financial facts.
The principles thus formulated by the commission were the
following:
1. The function of a pension system is to secure to the individual who
participates in it protection against the risk of dependence due to old age or to
disability.
2. The obligation to secure this protection for himself and for his family
rests first upon the individual. This is one of the primary obUgations of the
existing social order. Society has done its best for the individual when it pro-
vides the machinery by which he may obtain this protection at a cost within
his reasonable ability to pay.
3. Men either on salary or on wages are, in the economic sense, employes.
The employer, whether a government, a corporation, or an individual, has a
direct financial interest in the establishment of some pension system which
shall enable old or disabled employes to retire under satisfactory conditions.
In addition, society demands today that the employer assume some part in the
moral and social betterment of his employes. The obligation of the employer
FOUNDATION FOR ADVANCEMENT OF TEACHING 17
to cooperate in sustaining a pension system is primarily a financial one, and in
the second place, a moral one.
4. A pension system designed for any group of industrial or vocational
workers, should rest upon the cooperation of employe and employer.
5. Teachers' pensions should be stipendiary in character, amounting to a
fair proportion of the active pay.
II
1. In actuarial terms, a pension is a deferred annuity upon the life of one or
more individuals, payable upon the fulfilment of certain conditions.
2. In order that an individual participating in a pension system may be
assured of his annuity when due, one condition is indispensable: There must
be set aside, year by year, the reserve necessary, with its accumulated interest,
to provide the annuity at the age agreed upon. On no other conditions can
the participator obtain a satisfactory contract. The man of thirty who partici-
pates in a pension plan under which he expects an annuity thirty-five or forty
years in the future, will take some risk of disappointment in accepting any
arrangement less secure than a contractual one.
3. A pension system conducted upon the actuarial basis of setting aside,
year by year, the necessary reserve is the only pension system whose cost can
be accurately estimated in advance.
4. A method by which a pension is paid for in advance in annual or monthly
instalments is the most practical plan which can be devised for purchasing a
deferred annuity, provided that the contributions begin early in the employe's
career, and provided also that the contributions paid in year by year receive
the benefit of the current interest for safe investments.
5. As a matter of practical administration, a pension system should apply to
a group whose members live under comparable financial and economic condi-
tions. To attain its full purpose, participation in the pension system to the
extent of an agreed minimum, should form a condition of entering the service
or employment the members of which are cooperating in the pension system.
In addition to this formulation of the underlying principles of
a pension or annuity system, the commission pointed out that the
problem of affording protection to the teacher against dependence
in old age, both for economic and for financial reasons, should
be coordinated with that of protection for his family against de-
pendence in case of his premature death. In other words, an in-
surance contract covering the active period of a teacher's service
ought to articulate with an annuity contract when income earning
power diminishes. The question of obtaining such facilities
18 MANUAL OF THE CARNEGIE BENEFACTIONS
through existing insurance companies was carefully considered,
and the opinions of actuaries and of the experts in state depart-^
ments of insurance were obtained. These opinions were unani-
mous in recommending the creation of an agency specially devoted
to this purpose. The commission, therefore, approved and rec-
ommended to the Trustees of the Foundation a plan for an in-
surance and annuity company to be chartered under State law,
which should offer to teachers, as they enter their profession,
insurance and annuity contracts at net rates and in forms best
adapted to their needs. This recommendation has been carried
out by the establishment of the Teachers Insurance and Annuity
Association of America, chartered under the laws of the State of
New York, and supplied by the Carnegie Corporation, at the rec-
ommendation of the Foundation, with a capital and surplus of
one million dollars. In this agency is now provided the machin-
ery through which the teacher may obtain, through insurance and
annuity contracts, requisite protection for himself and for his de-
pendents. The handbook of the Association describes in detail
the various policies, their cost, and the arrangement under which
the premiums may be paid in annual, semi-annual, quarterly, or
monthly payments. Any information desired concerning the
policies of the Association can be had by addressing the Actuary
of the Association at 576 Fifth Avenue, New York City.
Unless one has had the time and the patience to read the Htera-
ture of old age pensions and of social insurance, he can not appre-
ciate at its full value the significance to the teaching profession
of the solution of the problem of old age pensions and teachers'
insurance thus worked out. Teachers themselves will perhaps
appreciate its significance only after the lapse of some years,
blinder the conditions thus established, a young instructor at
'thirty can carry five thousand dollars of insurance at an approxi-
mate cost of five dollars a month. By a similar monthly payment
in cooperation with his college, he may secure an annuity contract
which, if he lives to sixty-five, will provide an annual income of
one thousand dollars, or in case of death before that age, will be
added with its accumulations to the insurance payment. In a
FOUNDATION FOR ADVANCEMENT OF TEACHING 19
word, the conditions have been estabhshed under which the am-
bitious and high-minded man entering the profession of the teacher
may, within his reasonable abihty to pay, protect himself and his
family, and may do this with full consciousness of manly inde-
pendence, of financial security, and of freedom in his profession.
By such a process as that described, the problem that Mr.
Carnegie set before his Trustees has been brought to a solu-
tion.
When the Trustees of the Foundation had determined upon the
wisdom of transforming the noncontributory pension system, up-
on which they had entered, into a contributory system of annuity
contracts, and of offering with these the insurance contracts that
would naturally supplement the annuities, they still had to decide
the question: What is a just and reasonable fulfilment of the ex-
pectations of the six thousand teachers now in the associated
institutions under the old rules?
While the Foundation had explicitly reserved from the begin-
ning the right to change the rules governing the granting of these
allowances, nevertheless there was a very natural tendency on
the part of the beneficiaries, both individuals and colleges, to
construe these privileges as contracts. The Trustees of the
Foundation in consultation with many teachers and college offi-
cials, as well as with high-minded and disinterested men of affairs,
sought to determine the question what would be a just and gener-
ous fulfilment of these expectations without involving the Founda-
tion in an unwarrantable use of trust funds for a very long period
of years to the exclusion of the claims of the great body of teachers
in the United States and Canada? In making such a determina-
tion the Foundation necessarily took counsel with the Trustees
of the Carnegie Corporation, to whose generous interest they
were indebted for the additional funds necessary to provide these
pensions for the distant future.
It was clear that teachers nearing retirement had expectations,
of a very different sort from those of young men twenty-five,
thirty, or forty years away from retirement, and who through the
Teachers Insurance and Annuity Association could at very small
"20 MANUAL OF THE CARNEGIE BENEFACTIONS
<;ost supplement their pensions by additional annuities. To all
younger men in the associated colleges the facilities of the new
association were quite as valuable as to teachers in colleges not
associated with the Foundation.
The following plan was therefore adopted: For five years no
change is made. At the end of that period the minimum age of
retirement is raised, year by year, one year at a time, for a second
period of five years, by which time it has been brought to seventy
years. After the first five years, a teacher retiring before the
minimum age will receive an allowance diminished by one-fifteenth
for every year by which he anticipates the minimum age. This
arrangement will still require a very large expenditure, and one
that will absorb practically the whole income of the Foundation
for fifty years. In addition there will be expended the entire
principal and interest of one million dollars accumulated by
the Foundation and a large reserve fund of eleven millions of dol-
lars, contributed by the Carnegie Corporation for this purpose.
The Foundation will expend, during the next fifty years, some
sixty millions of dollars in carrying out the expectations of the
teachers in the associated institutions.
While the income of the Foundation will thus be devoted for
many years to come to the payment of pensions of teachers in the
associated colleges, its great endowment of fifteen millions of
dollars is untouched. Its income, as it is set free, will be devoted
to the advancement of teaching along such lines as the Trustees
of that day may decide.
The gift of the Founder of this institution was conceived in the
most generous spirit. It has enabled hundreds of college teachers
grown old in service to retire in comfort and security. As a per-
manent solution of the problem of the protection of teachers from
the risk of dependence, the plan originally adopted by Mr. Carne-
gie and by the Trustees of the Foundation was insufficient. It
has served its purpose. The real gain to colleges, both of the
associated Hst of institutions and of those not so related, hes in
the fact that the pension problem has been worked out and its
solution provided for upon a basis that is reasonable, sound, and
FOUNDATION FOR ADVANCEMENT OF TEACHING 21
enduring. The solution of the fulfilment of reasonable expecta-
tions of teachers under the old rules that has finally been reached
is made possible by the generous aid of the Carnegie Corporation.
This solution is regarded by high-minded and thoughtful men
looking at the matter from a detached and disinterested point of
view as a most generous fulfilment of the expectations of these
teachers. It is believed that it will be so regarded by the teachers
themselves.
The obligations in this matter do not He wholly with the Trus-
tees of the Carnegie Foundation. There are also obligations
upon the teachers and the associated colleges who have been for
twelve years, and who will continue to be for fifty years to come,
the chief beneficiaries of the trust. The common obligations of
Trustees and beneficiaries have perhaps been nowhere better
stated than in the following words from the president of the
American Association of University Professors, in the presidential
address of four years ago :
The founder's idea was a noble and unique one; himself and his Trustees are
entitled to our heartiest gratitude and cordial sympathy. The grumbUng and
even hostile attitude sometimes exhibited is not justifiable. All parties can
and should approach the subject in a spirit of desire for frank exchange of views
and of mutual support. . . . The situation at the outset was novel; the
enterprise was in some degree inevitably experimental and alterable. The
Trustees were and are morally entitled to make such changes as may seem
-absolutely necessary; the propriety of fulfilling natural expectations of bene-
ficiaries being as obvious to the Trustees as to others. Whatever change of
plan is proposed will properly rest for its adoption upon the just and enlight-
ened judgment of the Trustees after full deliberation.
The story of the twelve years of the Carnegie Foundation here
briefly told touches a problem of vast importance to the people
and to the government of the United States. War pensions in
the past have constituted the greatest source of political demorali-
ization of which our government can be charged. The legislation
relating to our Civil War pensions is a monument to the weakness
of our legislators and our Presidents, with the notable exception
of Grover Cleveland. The increases of these pensions even
during the last year, a half century after the war ended, has
22 MANltAL OF THE CARNEGIE BENEFACTIONS
raised the annual pension roll to a new and unheard of load of
$220,000,000.
We are now involved in a war in which the number of soldiers
engaged enormously exceeds that of the Civil War. If there
should follow upon the heels of peace such pension legislation as
followed the Civil War, no one can estimate the staggering sum
that may be imposed upon the country in the matter of pensions.
And the money cost is only the smallest part of the load. The
demoralization of such wholesale exploitation of the treasury of
the government is beyond words. It has in the past corrupted
parties, poisoned legislation, and spoiled the sweet taste of pa-
triotic devotion for millions of our people.
Very wisely our government is seeking to forestall such an event
by a generous system of insurance for soldiers upon the lines
adopted in the Teachers Insurance and Annuity Association.
Our past experience, however, indicates that once the people are
taught to expect something for nothing, nothing short of an edu-
cation as to the fundamental principles of a pension will suffice to
prevent in the future a demand for free pensions more costly and
more demoralizing than those of the past.
The Trustees of the Foundation have sought honestly and sin-
cerely to apprehend and to state clearly the fundamental condi-
tions for a pension system that shall be effective but shall not
demoralize. In formulating these principles and in reconstruct-
ing their own system in accordance therewith, they have dealt in
a small way with a question with which the nation must deal on
a far greater scale. The Trustees have sought to discharge their
obhgation, not only to a trust and to a particular group in the
body politic but an obligation to the country as well.
Henry S. Pritchett.
February, 1919.
APPENDIX
The following documents bearing upon the organization,
history and work of the Foundation are included in the
Appendix.
(1) The Letter of Mr. Carnegie establishing the trust.
(2) The Original Board of Trustees and the constitution of the Board as of
July 1, 1918.
(3) The Executive Officers.
(4) The Charter.
(5) List of Associated Colleges and Universities.
(6) List of PubUcations.
New York. April 16, 1905.
Gentlemen :
I have reached the conclusion that the least rewarded of all the professions is
that of the teacher in our higher educational institutions. New York City
generously, and very wisely, provides retiring pensions for teachers in her
public schools and also for her policemen. Very few indeed of our colleges are
able to do so. The consequences are grievous. Able men hesitate to adopt
teaching as a career, and many old professors whose places should be occupied
by younger men, can not be retired.
I have, therefore, transferred to you and your successors, as Trustees,
$10,000,000.00, 5% First Mortgage Bonds of the United States Steel Corpora-
tion, the revenue from which is to provide retiring pensions for the teachers of
Universities, Colleges, and Technical Schools in our country, Canada and
Newfoundland under such conditions as you may adopt from time to time.
Expert calculation shows that the revenue will be ample for the purpose.
The fund appUes to the three classes of institutions named, without regard
to race, sex, creed or color. We have, however, to recognize that State and
Colonial Governments which have established or mainly supported Universi-
ties, Colleges or Schools may prefer that their relations shall remain exclusively
with the State. I can not, therefore, presume to include them.
There is another class which states do not aid, their constitution in some
cases even forbidding it, viz.. Sectarian Institutions. Many of these estab-
lished long ago, were truly sectarian, but today are free to all men of all creeds
or of none — such are not to be considered sectarian now. Only such as are
under the control of a sect or require Trustees (or a majority thereof), Officers,
Faculty or Students to belong to any specified sect, or which impose any
theological test, are to be excluded.
24 MANUAL OF THE CARNEGIE BENEFACTIONS
1 Trustees shall hold office for five years and be eligible for reelection. The
first Trustees shall draw lots for one, two, three, four or five year terms, so-
that one-fifth shall retire each year. Each institution participating in the
Fund shall cast one vote for Trustees.
The Trustees are hereby given full powers to manage the Trust in every
respect, to fill vacancies of non-ex-officio members; appoint executive com-
mittees; employ agents; change securities, and, generally speaking, to do all
things necessary, in their judgment, to secure the most beneficial administra-
tion of the Fimds.
By a two-thirds vote they may from time to time apply the revenue in a,
different manner and for a different, though similar purpose to that specified,^
should coming days bring such changes as to render this necessary in their
judgment to,produce the best results possible for the teachers and for educa-
tion.
No Trustee shall incur any legal liabihty flowing from his Trusteeship. All
travelling and hotel expenses incurred by Trustees in the performance of their
duties shall be paid from the Fund. The expenses of a wife or daughter accom-
panying the Trustees to the Annual meeting are included.
I hope this Fund may do much for the cause of higher education and to
remove a source of deep and constant anxiety to the poorest paid and yet one
of the highest of aU professions.
Gratefully yours,
(Signed) Andrew Carnegie.
ijn view of the desirability of a permanent, self -perpetuating goyerniag
board, the provisions of this paragraph were, upon the advice and with the
consent of Mr. Carnegie, omitted from the Act of Incorpcwatiou which forms
the present charter of the Foundation.
FOUNDATION FOR ADVANCEMENT OF TEACHING
25.
ORIGINAL TRUSTEES OF THE CARNEGIE
FOUNDATION
Hill McClelland Bell
President of Drake University
Nicholas Mukray Butler
President of Columbia University
T. Morris Carnegie
Edwin Boone Craighead
President of Tulane University
William Henry Crawford
President of Allegheny College
George Hutcheson Denny
President of Washington and Lee
University
Charles William Eliot
President of Harvard University
Robert A. Franks
President Home Trust Company
Arthur Twining Hadley
President of Yale University
William Rainey Harper
President of the University of
Chicago
Charles Custis Harrison
Provost of the University of
Pennsylvania
Edwin Holt Hughes
President of DePauw University
Alexander Crombie Humphreys
President of Stevens Institute of
Technology
David Starr Jordan
President of Leland Stanford Junior
University
Henry Churchill King
President of Oberlin College
Thomas McClelland
President of Knox College
Samuel Black McCormick
Chancellor of the University of
Pittsburgh
William Peterson
Principal of McGill University
Samuel Plantz
President of Lawrence University
Henry Smith Pritchett
President of the Massachusetts
Institute of Technology
Jacob Gould Schurman
President of Cornell University
Laurenus Clark Seelye
President of Smith College
Charles Franklin Thwing
President of Western Reserve^
University
Frank Arthur Vanderlip
Vice President National City Bank
New York
WooDROW Wilson
President of Princeton University-
26 MANUAL OF THE CARNEGIE BENEFACTIONS
PRESENT TRUSTEES AND OFFICERS OF
ADMINISTRATION
TRUSTEES
Akthur Twining Hadley, Chairman
Henry Churchill King, Vice Chairman
Charles Franklin Thwing, Secretary of the Board
William Lowe Bryan Thomas William Lamont
Marion Le Roy Burton Abbott Lawrence Lowell
Nicholas Murray Butler Samuel Black McCormick
Thomas Morris Carnegie William Peterson
William Henry Crawford Samuel Plantz
George Hutcheson Denny Henry Smith Pritchett
Robert Falconer Jacob Gould Schurman
Robert A. Franks Edgar Fahs Smith
Alexander Crombie Humphreys Frank Arthur Vanderlip
James Hampton Kirkland
Henry Smith Pritchett, President
Robert A. Franks, Treasurer
Clyde Furst, Secretary
New York Office : 576 Fifth Avenue, New York City
FOUNDATION FOR ADVANCEMENT OF TEACHING 27
AN ACT TO INCORPORATE THE CARNEGIE FOUNDATION FOR
THE ADVANCEMENT OF TEACHING
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
That the persons following, namely, Arthur T. Hadley, Charles William
EHot, Nicholas Murray Butler, Jacob G. Schiuman, Woodrow Wilson, L. Clark
Seelye, Charles C. Harrison, Alexander C. Humphreys, S. B. McCormick,
Edwin B. Craighead, Henry C. King, Charles F. Thwing, Thomas McClelland^
Edwin H. Hughes, H. McClelland Bell, George H. Denny, William Peterson,
Samuel Plantz, David S. Jordan, William H. Crawford, Henry S. Pritchett,
Frank A. Vanderlip, T. Morris Carnegie, Robert A. Franks, their associates
and successors duly chosen are hereby incorporated and declared to be a body
corporate, of the District of Columbia, by the name of The Carnegie Founda-
tion for the Advancement of Teaching, and by that name shall be known and
have perpetual succession, with the powers, limitations and restrictions herein
contained.
Section 2. That the objects for which said corporation is incorporated
shall be —
(a) To receive and maintain a fund or funds and apply the income thereof
as follows :
To provide retiring pensions, without regard to race, sex, creed or color, for
the teachers of universities, colleges and technical schools in the United States,
the Dominion of Canada, and Newfoundland, who, by reason of long and
meritorious service, or by reason of old age, disabihty, or other sufficient reason,
shall be deemed entitled to the assistance and aid of this corporation, on such
terms and conditions, however, as such corporation may from time to time
approve and adopt: Provided, however. That the said retiring pensions shall
be paid to such teachers only as are or have been connected with institutions
not under control of a sect or which do not require their trustees, their officers,
faculties, or students (or a majority thereof) to belong to any specified sect,
and which do not impose any theological test as a condition of entrance therein
or of connection therewith.
(b) In general, to do and perform all things necessary to encourage, uphold
and dignify the profession of the teacher and the cause of higher education
within the United States, the Dominion of Canada, and Newfoundland afore-
said, and to promote the objects of the Foundation, with full power, however,
to the Trustees hereinafter appointed and their successors from time to time to
modify the conditions and regulations under which the work shall be carried on,
so as to secure the application of the funds in the manner best adapted to the
conditions of the time: And provided, That such corporation may by a vote of
two-thirds of the entire number of Trustees enlarge or vary the purposes herein
28 MANUAL OF THE CARNEGIE BENEFACTIONS
set forth, provided that the objects of the corporation shall at all times be
among the foregoing and kindred thereto.
(c) To receive and hold by gift, bequest, devise, grant, or purchase, any-
real or personal property, and to use and dispose of the same for the purposes
of the corporation.
Section 3. That the direction and management of the affairs of the cor-
poration, and the control and disposition of its property and funds, shall be
vested in a Board of Trustees, twenty-five in number, to be composed of the
following individuals: Arthur T. Hadley, Charles William Eliot, Nicholas
Murray Butler, Jacob G. Schurman, Woodrow Wilson, L. Clark Seelye, Charles
O. Harrison, Alexander C. Humphreys, S. B. McCormick, Edwin B. Craighead,
Henry C. King, Charles F. Thwing, Thomas McClelland, Edwin H. Hughes,
H. McClelland Bell, George H. Denny, William Peterson, Samuel Plantz,
David S. Jordan, William H. Crawford, Henry S. Pritchett, Frank A. Vander-
lip, T. Morris Carnegie, and Robert A. Franks, being twenty-four in number
with power to said Board to increase the same to twenty-five in all, who shall
constitute the first Board of Trustees and constitute the members of the cor-
poration. Vacancies occurring by death, resignation, or otherwise shall be
filled by the remaining Trustees in such manner as the by-laws shall prescribe,
and the persons so elected shall thereupon become Trustees and also members
of the corporation.
Section 4. The principal office of the corporation shall be located in the
District of Columbia, but offices may be maintained and meetings of the cor-
poration or the Trustees and committees may be held in other places, such as
the by-laws may from time to time fix.
Section 5. The said Trustees shall be entitled to take, hold, and administer
any securities, funds, or property which may be transferred to them for the
purposes and objects hereinbefore enumerated, and such other funds or prop-
erty as may at any time be given, devised or bequeathed to them, or to such
corporation, for the purposes of the trust; with full power from time to time
to adopt a common seal, to appoint officers, whether members of the Board of
Trustees or otherwise, and such employes as may be necessary in carrying on
the business of the corporation and at such salaries or with such remuneration
as they may think proper; and full power to adopt by-laws and such rules or
regulations as may be necessary to secure the safe and convenient transaction
of the business of the corporation; and full power and discretion to invest any
principal and deal with and expend the income of the corporation in such man-
ner as in their judgment will best promote the objects hereinbefore set forth;
and in general to have and use all the powers and authority necessary to pro-
mote such objects and carry out the purposes of the donor.
The said Trustees shall have further power from time to time to hold as in-
vestments any securities transferred or which may be transferred to them or
^to such corporation by any person, persons, or corporation, and to invest the
FOUNDATION FOR ADVANCEMENT OF TEACHING 29
same or any part thereof from time to time in such securities and in such form
and manner as is or may be permitted to Trustees or to savings banks or to
charitable or literary corporations for investment, according to the laws of the
District of Columbia or in such securities as may be transferred to them or
authorized for investment by any deed of trust or gift or by any deed of gift or
last will and testament to be hereafter made or executed.
Section 6. That the said corporation may take and hold any additional
donations, grants, devises, or bequests which may be made in the further sup-
port of the purposes of the said corporation.
Section 7. That the services of the Trustees of the said corporation, acting
as Trustees, shall be gratuitous, but such corporation may provide for the
reasonable expenses incurred by Trustees in the performance of their duties.
Section 8. That as soon as may be possible after the passage of this act,
a meeting of the Trustees hereinbefore named shall be called by Henry S.
Pritchett, Charles William Eliot, Arthur T. Hadley, Nicholas Murray Butler,
Woodrow Wilson, Jacob G. Schurman, Charles C. Harrison, Alexander C.
Humphreys, and George H. Denny, or any six of them, at the Borough of
Manhattan, in the City and State of New York, by notice served in person,
or by mail, addressed to each Trustee at his place of residence; and the said
Trustees named herein, or a majority thereof, being assembled, shall organize
and proceed to adopt by-laws, to elect officers, fix their compensation, and gen-
erally to organize the said corporation.
The corporation hereby incorporated may accept a transfer of all real and
personal property of any other corporation created for similar objects, not-
withstanding the fact that both said corporations may have common Trustees,
upon such terms as may be agreed upon, and may receive, take over, and enter
into possession, custody, and management, of all such property, real and
personal. Provided, however, that such property shall be applied to the pur-
poses of the corporation hereby incorporated as hereinbefore set forth.
Section 9. That such corporation hereby incorporated, upon accepting a
transfer of all the real and personal property of such other corporation shall
eucceed to the obligations and liabilities and be held liable to pay and dis-
charge all the debts, liabilities, and contracts of any such corporation so exist-
ing, to the same effect as if such corporation hereby incorporated had itself
incurred the obligation or liability to pay such debt or damages.
Section 10. That Congress may from time to time alter, repeal, or modify
this act of incorporation, but no contract or individual right made or acquired
shall thereby be divested or impaired.
Section 11. This act shall take effect immediately on its passage.
Approved March 10, 1906.
30
MANUAL OF THE CARNEGIE BENEFACTIONS
LIST OF ASSOCIATED INSTITUTIONS
Allegheny College
Meadville, Pennsylvania
Amherst College
Amherst, Massachusetts
Bates College
Lewiston, Maine
Beloit College
Beloit, Wisconsin
BowDOiN College
Brunswick, Maine
University of California
Berkeley
Carleton College
Northfield, Minnesota
Carnegie Institute of Technology
Pittsburgh, Pennsylvania
Case School of Applied Science
Cleveland, Ohio
Central University of Kentucky
Danville
University of Cincinnati
Cincinnati, Ohio
Clark University
Worcester, Massachusetts
Thomas S. Clarkson Memorial
College op Technology
Potsdam, New York
CoE College
Cedar Rapids, Iowa
Colorado College
Colorado Springs
Columbia University
New York City
Cornell University
Ithaca, New York
Dalhousie College and University
Halifax, Nova Scotia
Dartmouth College
Hanover, New Hampshire
Dickinson College
Carlisle, Pennsylvania
Drake University
Des Moines, Iowa
Drury College
Springfield, Missouri
Franklin College of Indiana.
Franklin
Grinnell College
Grinnell, Iowa
Hamilton College
Clinton, New York
Harvard University
Cambridge, Massachusetts-
HoBART College
Geneva, New York
Indiana University
Bloomington
Johns Hopkins University
Baltimore, Maryland
Knox College
Galesburg, Illinois
Lawrence College
Appleton, Wisconsin
Lehigh University
South Bethlehem, Pennsylvania
Leland Stanford Junior Uni-
versity
Stanford University, California
McGiLL University
Montreal, Quebec
Marietta College
Marietta, Ohio
Massachusetts Institute of Tech-
nology
Boston
University of Michigan
Ann Arbor
FOUNDATION FOR ADVANCEMENT OF TEACHING
31
MroDLEBUBY College
Middlebury, Vermont
University of Minnesota
Minneapolis
University of Missouri
Columbia
Mount Holyoke College
South Hadley, Massachusetts
New York University
New York City
Oberlin College
Oberlin, Ohio
University of Pennsylvania
Philadelphia
University op Pittsburgh
Pittsburgh, Pennsylvania
Polytechnic Institute of Brook-
lyn
Brooklyn, New York
Princeton University
Princeton, New Jersey
Purdue University
Lafayette, Indiana
Radcliffe College
Cambridge, Massachusetts
Rensselaer Polytechnic Institute
Troy, New York
RiPON College
Ripon, Wisconsin
University op Rochester
Rochester, New York
Rose Polytechnic Institute
Terre Haute, Indiana
Smith College
Northampton, Massachusetts
Stevens Institute op Technology
Hoboken, New Jersey
:Swarthmore College
Swarthmore, Pennsylvania
February, 1919.
University of Toronto
Toronto, Ontario
Trinity College
Hartford, Connecticut
Tufts College
Tufts College, Massachusetts
TuLANE University op Louisiana
New Orleans
Union University
Schenectady, New York
Vanderbilt University
NashviUe, Tennessee
Vassar College
Poughkeepsie, New York
University of Vermont
Burlington
University of Virginia
Charlottesville
Wabash College
Crawfordsville, Indiana
Washington and Jefferson Col-
lege
Washington, Pennsylvania
Washington University
St. Louis, Missouri
Wellesley College
Wellesley, Massachusetts
Wells College
Aurora, New York
Wesleyan University
Middletown, Connecticut
Western Reserve University
Cleveland, Ohio
Williams College
WiUiamstown, Massachusetts
University op Wisconsin
Madison
Worcester Polytechnic Institute
Worcester, Massachusetts
Yale University
New Haven, Connecticut
Total— ?6
32 MANUAL OF THE CARNEGIE BENEFACTIONS
LIST OF PUBLICATIONS
THE ANNUAL REPORTS
These contain in each instance: (I) An account of the business of the year,
including the meetings of the Trustees and of the Executive Committee, the
admission of institutions to the associated list, the voting of retiring allowances,
and the general administration of the trust; (II) sundry results of inquiry into
educational problems that affect the advancement of teaching. Some refer-
ence to these records is given in the following summaries ; (III) brief biographies
of recipients of retiring allowances who have died during the year; and (IV)
the report of the Treasurer.
The First Annual Report of the President and of the Treasurer, 84 pages.
1906.
Including an historical sketch of the Foundation; a study of army and
professorial pensions; and a statement of the general policy, the educational
standards, and the administrative rules of the Foundation. {Out of print.)
The Second Annual Report of the President and of the Treasurer, 124 pages.
1907.
Including discussions of the place of the college and the university in the
United States, the function of college entrance requirements, the forms of
denominational control, the relation of the Foundation to denominational
and State institutions, and the ratio between institutional cost and
efficiency. {Out of print.)
The Third Annual Report of the President and of the Treasurer, 211 pages.
1908.
Including academic and financial data concerning institutions on the ac-
cepted list; and discussions of the problems of financial reports, pensions,
and life insurance; of the governmental and political aspects of tax-sup-
ported institutions; of entrance requirements, instruction, higher and
professional education, and of the influence of denominational boards of
education.
The Fourth Annual Report of the President and of the Treasurer, 201 pages.
1909.
Including discussions of the rules for retirement, of agricultural education,
of college administration and advertising, and complete records of the
practice of the institutions on the accepted list of the Foundation in ad-
mitting regular, conditioned, and special students.
The Fifth Annual Report of the President and of the Treasurer, 113 pages.
1910.
Including discussions of the relation of colleges to professional, technical,
FOUNDATION FOR ADVANCEMENT OF TEACHING 33
and industrial education, to secondary schools, to the training of teachers,
and to State supervision; together with the comments of Oxford tutors oa
American education as represented by Rhodes scholars.
The Sixth Annual Report of the President and of the Treasurer, 154 pages.
1911.
Including discussions of the application of the rules for retirement, and
the obligations and influences of pension systems; together with a critical
and constructive survey of education from a national point of view, as this
is reflected in legislation. State systems, regional conditions, the relations
of school, college, and university, in professional and graduate study and
religious education, and in the problems of political and alunmi influence.
The Seventh Annual Report of the President and of the Treasurer, 194 pages.
1912.
Including discussions of actual and possible systems of college pensions;
State, district, and local pensions for public school teachers; industrial
and civil service pensions; contributory and noncontributory, subsistence
and stipendiary pensions in general; and a review of the administrative,
financial, and educational experience of the Foundation; together with
comments upon admission to college and to advanced standing, medical
progress, college financial reporting, advertising in education, education
and pontics, and sham universities.
The Eighth Annual Report of the President and of the Treasurer, 158 pages.
1913.
Including discussions of recent pension developments, of the Carnegie
Corporation of New York, of the establishment of the Division of Educa-
tional Enquiry and its studies of medical education, education in Vermont,
and legal education ; together with comments on college entrance require-
ments, the State regulation of higher education, politics and education in
Iowa, the improved financial status of college teachers, and college cata-
logues.
The Ninth Annual Report of the President and of the Treasurer, 154 pages.
1914.
Including discussions of pension principles and of recent developments in
the field of teachers, industrial, and federal pensions; records of the prog-
ress of the Foundation's studies of legal education, engineering education,
and the training of teachers; comments upon the results of its Study of
Education in Vermont and upon recent developments in medical educa-
tion; and discussions concerning educational standards. State educational
reports, and educational surveys.
The Tenth Annual Report of the President and of the Treasurer, 142 pages.
1915.
Including discussions of pensions for public school and for university
34 MANUAL OF THE CARNEGIE BENEFACTIONS
teachers, clergy pension funds, and industrial pensions, with tabular
statements of 65 teachers and 58 industrial and institutional pension
systems; together with reports of the progress of the Foimdation's studies
of legal education, engineering education, and the training of teachers in
Missouri, the results of its study of Education in Vermont; and a discus-
sion of college charges for tuition.
Cumulative Index of the First Ten Annual Reports, 78 pages. 1916.
The Eleventh Annual Report of the President and of the Treasurer, 172
pages. 1916.
Including discussions of a comprehensive plan of insurance and annuities
for college teachers with the comments of the Associated Institutions, and
discussions of teachers, industrial, and clergy pension funds in general;
together with reports of progress in the Foundation's studies of legal
education, engineering education, agricultural education, and the training
of teachers; and a study of college entrance certificates, with suggestions
! for a uniform blank.
The Twelfth Annual Report of the President and of the Treasurer, 154
pages. 1917.
Including discussions of insurance and annuities for college teachers, with
the report of a Conmiission on Insurance and Annuities and the charter of
the Teachers Insurance and Annuity Association of America; descriptions
of current developments in the general field of pensions; and reports of
progress in the Foundation's educational enquiries.
THE BULLETINS
Number One. Papers Relating to the Admission of State Institutions to the
System of Retiring Allowances of the Carnegie Foundation, 45 pages.
1907.
Including arguments in favor of the admission of State and provincial
universities to the benefits of the Foundation, and a statement by the
President of the administrative and financial problems involved. {Out of
print.)
Number Two, The Financial Status of the Professor in America and in
Germany, 101 pages. 1909.
A study of the expenditure for instruction in one hundred and fifty-six
American institutions, with comparisons of the maximum and average
salaries, the average age, the amount of teaching, the appointment, tenure,
and retirement privileges of professors in the United States and Canada
and in Germany. (Out of print.)
Number Three. Standard Forms for Financial Reports of Colleges, Uni-
versities and Technical Schools, 37 pages. 1910.
Containing twenty-five typical blank forms for the public reporting of the
FOUNDATION FOR ADVANCEMENT OF TEACHING 35
financial receipts and expenditure of universities and colleges, with an
introduction recommending the modification of current practice in direc-
tions commended by educators, financiers, and accountants. {Out of
print; a new edition is in preparation.)
Number Four. Medical Education in the United States and Canada, 346
pages. 1910.
A comprehensive report to the Foundation, by Abraham Flexner, on
medical education in the United States and Canada, with regard to the
course of study, financial aspects, medical sects, State boards, post-gradu-
ate schools, and other special forms of medical education; with descriptive
and tabular accounts of all the medical schools throughout the United
States and Canada; and a general plan for reconstruction, with an introduc-
tion by the President of the Foundation.
Number Five. Academic and Industrial Efficiency, 134 pages. 1910.
A report to the Foundation, by Morris Llewellyn Cooke, on the teach-
ing and research in physics in eight American universities, colleges, and
technical schools, with an endeavor to estimate efficiency in organization,
teaching, research, the use of buildings, and in financial, departmental,
and student administration, (Out of print.)
Number Six. Medical Education in Europe, 357 pages. 1912.
A report by Abraham Flexner concerning the contemporary condition in
Germany, Great Britain, and France, of the basis of medical education,
the preliminary and the medical sciences, clinical instruction, curricula
and examinations, post-graduate education, the medical education of
women, the number and distribution of physicians, the financial aspects
of medical education, and the problem of sects and quacks; together with
an introduction by the President of the Foundation, contrasting these
European conditions with those in the United States and Canada.
Number Seven. Education in Vermont, 241 pages. 1914.
A study prepared at the request of the Vermont Educational Commission,
giving the reason for and the method of the enquiry, description and dis-
cussion of the entire educational system of the State, with certain conclu-
sions and recommendations, and a brief statistical appendix.
Number Eight. The Common Law and the Case Method in American
University Law Schools, 84 pages. 1914.
A report to the Foundation by Joseph Redlich, of the University of
Vienna, dealing with law as a science and a profession, early methods of
legal instruction, the development and success of the Case Method, its
weaknesses, and suggestions for improvement in legal instruction, scholar-
ship, and research.
Number Nine. A Comprehensive Plan of Insurance and Annuities for Col-
lege Teachers, 68 pages. 1916.
A discussion, by the President of the Foundation, of pensions, annuities,
36 MANUAL OF THE CARNEGIE BENEFACTIONS
and life insurance in general and for teachers in particular, with indications
of the limitations of the Foundation's present system and suggestions for
the development of a comprehensive and permanent plan.
(Confidential edition for officers and professors of the institutions that are
associated with the Foundation, October, 1915. Reprinted, with a
preliminary statement, for general distribution, April, 1916.)
Number Ten. Federal Aid for Vocational Education, 127 pages. 1917.
A study, by I. L. Kandel, dealing with the legislative history of the various
acts for the establishment and support of land grant colleges, the poUtical
and educational policies underlying this form of legislation, the develop-
ment of the land grant colleges and their relation to social demand, and
the influence of the precedents established by these acts on the recent move-
ment for federal aid for vocational education.
Number Eleven. Engineering Education, 135 pages. 1918.
A study, by Charles Riborg Mann, at the request of a joint committee
of the national engineering societies, of the development of engineering
schools in the United States, — their aims, resources, administration, cur-
ricula, instruction, and student progress; the chief problems of engineering
education, — admission, curricula, courses, testing, and grading; with sug-
gestions concerning the curriculimi, speciahzation, teaching, and the pro-
fessional spirit.
Number Twelve. Pensions for PubHc School Teachers, 90 pages. 1918.
A report, by Clyde Furst and I. L. Kandel, for the Committee on Sal-
aries, Pensions, and Tenure of the National Education Association,
describing all existing systems of pensions for teachers, discussing their
limitations in the light of experience and the fundamental principles for
pensions, and presenting an illustration of a financially and socially sound
State system of pensions for teachers, based upon a complete census of
the teachers in the State of Vermont.
OTHER PUBLICATIONS
Rules for the Admission of Institutions and for the Granting of Retiring
Allowances, 16 pages, 1906. Revised, 12 pages. 1908; 12 pages. 1910;
10 pages. 1913; 12 pages. 1918.
A Plan for an Exchange of Teachers between Prussia and the United States,
7 pages. 1908.
An American Teacher's Year in a Prussian Gynmasium, 37 pages. 1911.
Curricula designed for the Professional Preparation of Teachers for American
Public Schools, 60 pages. 1917. Provisional suggestions for discussion.
List of Pubhcations, 16 pages. 1917.
Bulletins on Legal Education, the Training of Teachers, and Justice and the
Poor are in press.
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