A glance at this statement shows at once that one-half of these institutions are in the New England States, New York and Pennsylvania. With three exceptions, the whole list of institutions lies in the northern belt of States reaching from the latitude of Maryland to the Canadian border, and extending across the continent. Outside of this limit there are but three institutions which have a place on this list: one in the far south and two in Canada. It was inevitable that any choice of institutions which took account of educational standards or denominational limitations, and which excluded state institutions, should have some such result upon its first application. The older and richer sections of the country have institutions which are the result of long development. Their educational standards have for many years been supported by strong secondary schools, and in these same sections the development away from denominational conditions has been most marked. On the other hand, throughout the south and certain parts of the west, almost all private institutions of learning have been under denominational control; and particularly in the south very few institutions require of their students conditions of admission such as are enforced in all colleges upon the "accepted list," or such as are required by the laws of the State of New York. At the time when the Foundation was inaugurated, there were not more than two or three institutions south of Mason and Dixon's line whose entrance requirements approached this standard. Vanderbilt University requirements are up to the standard adopted. Tulane University has been admitted upon the ground of entrance requirements which are to go into force in 1907. The Randolph-Macon Woman's College has maintained entrance requirements which are quite equal to those in the best colleges for women in other sections of the country, but in very few instances have institutions in the South, even those of age and high standing, enforced entrance requirements which made any sharp distinction between the high school and the college. A comparison of the "units"1 required for admission by the various institutions given in the table below brings out the character of these differences. These estimates of the units required for admission are based upon the statements found in the latest catalogues available, generally those for the school year 1905–6. All friends of education have sympathised with the conditions which existed in the Southern States for many years after the war, and with the enormous 1 For definition of the term unit as here used, see page 38. work which had to be done in bringing up education in that section to its present status. Splendid progress has been made, and it would seem that the time has now come when the stronger institutions could frankly adopt standards of entrance requirements comparable with those in other parts of the 1 country. Until the stronger and better known institutions courageously adopt this policy it would seem impossible to build up a system of high schools furnishing a good four-year course. A good system of high schools and a college system with fair entrance requirements go together. Each is likely to wait upon the other and to feel the difficulties of the educational system when either tries to develop alone. Teachers in colleges say, quite truthfully, that the high schools do not furnish to them pupils fitted to sustain high entrance conditions. Principals of high schools complain, with equal truth, that they cannot keep students in the high schools when these are allowed to enter the colleges and universities after the completion of half or three-quarters of their high-school work. Nothing could be done in southern education which would tend more successfully to clear the educational situation, to bring about sharper conceptions in the mind of the public as to what constitutes a high school and what constitutes a college than the adoption by the stronger southern colleges and universities of moderate entrance requirements, such as those set up by the State of New York, and which have been adopted by the Trustees of this Foundation. The Trustees have not the slightest wish to interfere in any way with the free and wise development of education in accordance with the needs of varying environments; still less do they wish to impose any procrustean plan of standardization upon the colleges of the country. The last thing which they would desire is the forcing up of colleges which ought to be junior colleges or academics into a position in advance of the requirements of education and which cannot be maintained. They do believe, however, that some sort of unity can be brought into educational conceptions by a fair agreement as to the line which separates the college from the academy or the high school, and they are convinced that some such agreement must be reached before we may hope for any far-reaching advance in either our higher or our secondary institutions of learning. The Trustees carnestly hope to see upon the list of "accepted" institutions, within a reasonable time, a number of the stronger and more influential southern colleges and universities. Meantime, the Trustees have endeavored to deal generously with scholars in all sections in institutions not on the "accepted list." In the State of Virginia alone, retiring allowances have already been voted to five distinguished men who have served conspicuously the cause of education in Virginia: Professor Noah K. Davis, of the University of Virginia, Professor Alexander L. Nelson, of Washington and Lee University, Professor Lyman B. Wharton, of William and Mary College, Dr. John M. McBryde, President of the Virginia Polytechnic Institute, and General Scott Shipp, Superintendent of the Virginia Military Institute. FINANCIAL ADMINISTRATION OF THE FOUNDATION Together with this report will be found a complete financial statement by the Treasurer. The bonds presented by Mr. Carnegie ($10,000,000 United States Steel Corporation on Registered 50 years 5 per cent Gold Bonds) were transferred to the Foundation on December 1, 1905, and the interest on them began to be received by us from that time. For some months no retiring allowances were granted, and the accumulated income was therefore subject to small drafts during the period prior to reorganization. The surplus which has accumulated, after paying the expenses of administration and such retiring allowances as have been granted, has been invested by the Executive Committee in interest-bearing bonds of the best character. Up to October 1, 1906, $190,000 par value of such bonds have been purchased. It is the hope of the Executive Committee that the money accumulated during the next few years, during which the whole income will not be used for retiring allowances, may be sufficient to provide a fund whose income may support the administrative expenses of the Foundation, thus leaving the entire original gift of Mr. Carnegie to be used for its direct purpose. The expenses of administration are approximately $27,500 a year, and are made up of the following items: RETIRING ALLOWANCES FOR THE COMING YEAR It is evident to one who has been familiar with the work of the Foundation up to this point that it is too early in its history to predict the probable number of retiring allowances which the fund can sustain or the probable number which will be asked for during the coming year. The fifty-two institutions on the "accepted list" include in their faculties 2,042 persons. Of these, approximately 257 were eligible under our rules on July 1, 1906, and the professors in these institutions were invited to avail themselves of the right to retiring allowances. Of this number 46 accepted retiring allowances, and for the coming year it is estimated by the heads of these institutions that 50 of the remaining eligible professors will accept. These uncertainties are so great that it is scarcely possible to estimate what demand will be made upon the fund during the next fiscal year. The question is further complicated by the unsettled status of the State institutions. There are in the United States and Canada some eighty institutions of college rank supported by a State or a municipality. Of these approximately forty would apparently be eligible on the basis of educational standard, or would quickly become so, if State institutions are admitted; and if these should be added to our list the possible demands to be made upon the fund would be at once largely increased. Until the question of their admission to the benefits of the Foundation has been determined, and until we shall have time to see what action will be taken. by institutions whose denominational connections are but slight, it is impossible to say how many institutions will qualify within the coming year for a place upon the "accepted list." POSSIBLE NUMBER OF RETIRING ALLOWANCES The officers and Executive Committee of the Foundation have naturally sought to answer the question as to how many institutions and how many retiring allowances can be sustained with the income which has been so generously provided by Mr. Carnegie's gift. While this question can be answered upon various assumptions, the grounds of the assumptions themselves are so variable that no answer is entirely satisfactory. A careful collection of data from various institutions gives the following information concerning the pay of professors in American colleges: This table shows that in the aggregate 327 colleges employ 6,207 professors at a total annual compensation of $9,631,360, or at an average salary of $1,550 a year. It is clear that an income of $500,000 a year could not maintain an adequate pension system in all of these institutions. The average retiring allowance which the Foundation is now paying amounts to a little less than $1,450. This is likely to be somewhat less in the future, owing to the fact that a number of persons have been retired whose pay was relatively large. At this rate approximately 350 persons could be carried on the retired list at this average pay. While this average rate seems a fairly safe one to assume, it still does not answer the question as to how many institutions may be admitted to the "accepted list" and how many professors in active service will furnish 350 on the retired list. An examination of the 52 institutions on the accepted list shows that approximately 12 per cent of the members of their faculties were eligible to retirement at the time when the institutions were admitted. Of this percentage 18 per cent have accepted the retiring allowance. These fifty-two institutions have at present 2,042 professors. A little over one half of these, 1053, are, however, in nine large institutions: Harvard University, Yale University, Columbia University, Cornell University, Leland Stanford Jr. University, Princeton University, University of Pennsylvania, the Massachusetts Institute of Technology, and McGill University. Omitting these nine and Radcliffe College, whose professors are included in those of Harvard University, the average faculty of the remaining 25 institutions is 25. It may safely be assumed that the average faculty of institutions to be admitted in the future, omitting State institutions, will not exceed this, and that it would almost surely fall somewhat below it. THE SYSTEM OF RETIRING ALLOWANCES FOR UNITED STATES ARMY OFFICERS AND ITS COST The Government of the United States provides for officers of the Army a liberal system of retiring allowances. The retired pay is 75 per cent of the active pay, and, under present conditions, most men who go on the retired list are promoted immediately before retirement. The table which follows shows the cost and the nature of this retiring system for the eight years from 1890 to 1897 inclusive. This table is interesting for the light which it throws upon the maintenance of a retired pay system apart from the comparison with the system of retired pay for professors. The results show that from 1890 to 1897, while the number of officers of all grades on the active list did not increase in fact, shows a slight diminution—the number of men on the retired list shows a large increase, in consequence of which the ratio of the number of retired officers to active officers rose from 23 to 31 per cent and the ratio of the cost of the retiring pay system rose similarly from 23 to 31 per cent. A very interesting comparison, so far as the army itself is concerned, would be found by comparing the retired pay system at this epoch with what it became after the Spanish War. Without going completely into this, which is somewhat outside our purpose, it may be added that, for the year 1904, the figures are as follows: No. Officers on 3,860 No. Officers on Total Pay of Active List. $8,486,000 Total Pay of Retired List. $2,285,000 It will be noted that the total cost had largely increased on account of the expansion of the army itself, but that the ratio of the retired to active officers had again dropped back to 23 per cent, a result due, of course, to the addition of men in the lower grades. A very marked contrast with the system. of retiring allowances maintained for professors is the comparison in the army retiring system between the average pay of officers on the active list and the average pay of officers on the retired list. Before the Spanish War the average pay of a retired officer was practically the same as that of men on the active list. After the Spanish War the average pay of officers on the retired list was considerably larger than the average pay of officers on the active list. The explanation of the first of these facts-that is to say, the practical equal |