Secretary's Office and General Administration

The work of the Secretary's office consists generally of performing the duties prescribed for the Secretary by the By-Laws, namely, the general supervision of the Endowment's operations and of the details of the administrative management of its affairs. The actions of the Executive Committee with reference to this office relate chiefly to the allotment of funds for carrying on this general administrative work, and, since the Secretary's report to the Board contains a complete statement of these allotments and fully explains their use, it is not necessary for the Committee again to refer to them here, except in a few cases where the Committee found it advisable to somewhat increase the work of the office.

It has been deemed desirable to provide for a larger edition of the Year Book. The importance of this volume-the official account of the Endowment's activities has already been pointed out in the previous report of the Secretary to the Board (Year Book for 1912, page 31), and the growing demands for a larger edition were also therein referred to. The Committee, after careful consideration, decided to increase the edition to 10,000 copies.

The Committee has provided for the keeping of an extensive mailing list as a part of the headquarters equipment. The necessity for such a list was very much impressed upon the Committee at the time of the issuance of the statement of certain of the Trustees concerning the Panama Canal tolls question. Through a temporary arrangement at that time a very satisfactory distribution of that statement was made, but the Committee then decided that the Endowment should have permanent facilities for reaching the people of the country upon matters which it might be desired to bring to their attention, and the Secretary was directed to take steps to prepare and keep such a list. This has been done and it involves the addition of two clerks to the permanent clerical force. The method of obtaining the names for and keeping the list is described in the Secretary's report.

The work of editing, printing and distributing the publications issued directly by the Endowment is, for reasons of economy and uniformity, performed at the headquarters. The Secretary's report shows a very considerable increase in this kind of work during the preceding year, due to the increase of the work of the Divisions, and the Committee provided an additional allotment of funds in order to enable his office to carry on the work.

The Board, at its meeting on November 14, 1913, approved the purchase of the headquarters buildings at Washington and provided the necessary funds to pay the purchase price. These buildings were originally erected as private residences, and it was necessary that certain alterations be made in order to fit them for permanent office use. The Committee accordingly authorized the Secretary to make the necessary improvements to the buildings, which are referred to in his report. The buildings afford accommodations for the Secretary's office and for the Division of International Law. An office in them has also been assigned for the use of the American Group of the Interparliamentary Union, of which

the Assistant Secretary of the Endowment is the Executive Secretary. This connection between the Endowment and the Interparliamentary Union with the explanation thereof was reported to the Board by the Secretary in his report for last year (Year Book for 1912, page 33). Provision has also been made in the buildings for an office for the American Society of International Law, with which some of the officials of the Endowment are closely identified. This room is used primarily for providing quarters for the translators for the Spanish edition of the American Journal of International Law, which is being issued by the Society at the request of and under an arrangement with the Endowment.

A further act of the Executive Committee coming under the head of general administration should also be referred to here. In the annual report of the Secretary for last year (Year Book, page 30) he referred to the question of printing and properly distributing the scientific publications of the Endowment, that is, the works containing the concrete results of the labors of the Endowment in its scientific fields, principally through the Division of Economics and History and the Division of International Law. He stated that he was carrying on negotiations to secure a competent and responsible publishing house, whose facilities are such that it can not only print but distribute and place such publications upon the market in all parts of the world. The negotiations referred to resulted in the conclusion on June 16th last of an agreement between the Secretary, acting on behalf of the Endowment, and the Delegates of the Clarendon Press of the University of Oxford, under which the Press agrees to act as printer and publisher for the Endowment and to use its excellent facilities in all parts of the world for calling the Endowment's publications to the attention of the interested public and placing them within the reach of those who may desire to obtain them. The Committee believes that by means of the arrangement the Endowment's publications of a less popular kind, which might otherwise remain indefinitely in storage, will become a part of the literature of the subject with which they deal, and thus justify the considerable outlays which are being made on them. The Committee has approved the action of the Secretary in signing the contract.

Heretofore, the appropriation for administration has been charged with the cost of the Year Book and of the up-keep of the general library. The Committee does not consider that these two items are proper charges against the cost of administration, in the sense in which that term is generally used in estimating overhead charges. The Year Book, being the public account of the Endowment's activities, may properly be regarded as a part of the publicity branch of its work. The library is maintained not only for the use of the officers of the Endowment but to supply information to the public on the subjects in which the Endowment is interested, in accordance with the provision of the Articles of Association with reference to the diffusion of information. The Committee has recently decided to add to the usefulness of the library in this respect, by enlarging its reference department, and, in further pursuance of this policy, the Secretary has recom

mended the preparation and distribution by the library of selected bibliographical lists on international affairs, which the Committee has approved by the addition of one clerk in the library to assist in doing this work.

The requirements for the Secretary's office have, therefore, for the ensuing fiscal year, been divided into two appropriations, namely, one for administration and one for the library and publication of the Year Book.

Division of Intercourse and Education

This Division was established to perform, and it has generally assumed the functions of, a militant force in the work of propaganda which is so essential to the creation and maintenance of an enlightened public opinion on the subject of international peace. The many directions which this form of activity may properly take and the large amount of funds which may be legitimately and advantageously utilized therein are shown in the report of the Acting Director of the Division, wherein he narrates in detail the use which has been made of the funds allotted by the Executive Committee, in accordance with the appropriations of the Board, for expenditure in his Division. The administration of the Division in the United States and in Europe, its work in Europe, the corps of special correspondents, the conduct of relations with the other American republics and with Japan and the Orient, the organization of international visits of representative men, the helpful assistance of the Association for International Conciliation and other work in the United States, are sufficiently explained in the report of this Committee for last year and in the reports of the Acting Director, and need no repetition to emphasize the splendid and efficient machinery which has been built up "for the organization throughout the world," in the words of the Acting Director, "of centers of interest and of constructive policy that may be used in the years to come as the foundation upon which to erect a superstructure of international confidence and good will and, therefore, of peace."

The visit to South America of the Honorable Robert Bacon, who has since been elected a member of the Board of Trustees, undertaken in pursuance of the plan of this Division for a Latin American exchange, turned out to be a most important step in the organization of the work of the Endowment in the Latin American field. The object of Mr. Bacon's visit was stated in the instructions to him from the President of the Board to be "to secure the interest and sympathy of the leaders of opinion in South America in the various enterprises for the advancement of international peace which the Endowment is seeking to promote, and, by means of personal intercourse and explanation, to bring about personal cooperation in that work in South America." Instead of confining his activities to one Division, Mr. Bacon therefore acted as the representative of the Endowment in all the great divisions of its labors. Detailed accounts of the preparations made for his visit and of the very gratifying results accomplished by him are given under the appropriate headings in the accompanying reports of the Secretary and Directors of the Divisions.

Another example of effective work made possible by the organization of international visits under this Division was the nomination by the Endowment of Professor Frank J. Goodnow as American adviser to the Chinese Government,— a direct result of the trip of Dr. Charles W. Eliot to the Orient in 1912. The wisdom of the Committee's choice has very recently been strikingly illustrated by the selection of Professor Goodnow as president of Johns Hopkins University, which position he accepted only after the Executive Committee at its meeting on February 21, 1914, upon very careful consideration of all the circumstances, had adopted a resolution expressing its readiness to concur in such action as Professor Goodnow might take with the approval of the Chinese Government.

Of the other recommendations made by Dr. Eliot as the result of his visit, which were presented to the Board at its meeting on November 14, 1913, and referred to this Committee for action, some of them, which certain of the Trustees seem to regard as being beyond the scope of the Endowment's activities, might properly be referred to other philanthropic organizations. The balance are under consideration in the appropriate Divisions of the Endowment.

The recent action of Mr. Carnegie in setting aside a separate endowment for the work of international peace in the churches has made it unnecessary for your Committee to take any action on the proposals of the Church Peace League of America and the Associated Councils of Churches in the British and German Empires, referred to the Committee by the Board at its meeting on November 14, 1913.

As foreshadowed in the last annual report to the Board, the Committee at the beginning of the present fiscal year entrusted to the Advisory Council of the Division of Intercourse and Education in Europe the duty of allotting to the various national peace societies the sums set aside for that purpose by the Trustees. It is proposed to continue this policy, and in addition somewhat to enlarge it by leaving to the Advisory Council and its executive committee the duty of apportioning among the different other items of work the sums of money appropriated and allotted for the Division of Intercourse and Education in Europe. The estimates for next year for the Division of Intercourse and Education in Europe have therefore been divided into two parts, one for the maintenance of the European Bureau at Paris and one for work of propaganda.

In pursuance of this policy of utilizing the organization which has been established for the express purpose of assisting in the proper distribution and use of the Endowment's funds, the Committee has assumed the attitude that it is not the policy of the Endowment to take action upon applications for subventions for work of societies or individuals located in the Eastern Hemisphere, or for work to be done in the Eastern Hemisphere, until such matters have been considered and recommendations made thereon by the European Bureau, with the advice of the Advisory Council in Europe or of its executive committee, whose particular functions are to advise the Endowment as to matters and policies lying within the scope of the Division of Intercourse and Education in European countries.

The Board, at its meeting on April 18, 1913, adopted a resolution declaring that it is not the policy of the Endowment to substitute its action for the interest and activity of others in the cause of peace, and declared that whenever it appears that the allotment of money by the Endowment to any other organization constitutes an undue proportion of the income of such organization, it will be the policy of the Endowment to reduce gradually its allotment. In preparing its recommendations for appropriation for the ensuing fiscal year for the Division of Intercourse and Education, the Committee has been impressed with the fact that some of the organizations which receive large subventions seem to rely almost entirely upon the Endowment for their income and to regard it as their right not only to have the subventions continued permanently, but that they might reasonably expect to have them increased from time to time as occasion may require. It is clearly evident that, unless the Endowment discourages this view, it may not be many years before its entire income will be required to meet permanent annual charges, leaving nothing or an insufficient amount to meet current needs of an emergency nature, which, after all, may be the most important work for the Endowment to do. The Committee has thoroughly considered the situation and believes that a more definite attitude should be adopted than that outlined in the resolution of April 18th. The conclusion of the Committee, reached after such consideration, is contained in the following resolution, adopted at its meeting on February 21, 1914, which the Committee recommends be reaffirmed by the Board:

Whereas, The Board of Trustees at its meeting on April 18, 1913, declared that it is not the policy of the Endowment to substitute its action for the interest and activity of others in the cause of peace and resolved that, whenever it appears that the allotment of money by the Endowment to any other organization constitutes an undue proportion of the income of such organization, it will be the policy of the Endowment to reduce gradually its allotment, and

Whereas, The Executive Committee is of the opinion that the granting to organizations of money without regard to other sources of support tends to stop such other sources and that the inevitable result of having all other persons relieved from a sense of responsibility of taking any part in the support of such organizations is a decrease of interest and activity; therefore be it

Resolved, That the Committee, upon a review of the foregoing resolution of the Board of Trustees and of the situation which it was intended to meet, have been confirmed in their opinion that the Endowment should follow a policy of establishing a relation between subventions from the funds of the Endowment and the other sources of revenue of the various subventionaires, and are of the further opinion that for the year 1915-16 the relation should not exceed the ratio of three to one, that is to say, within the limits of the funds of the Endowment which are available for the purpose, the various subventionaires should receive from the funds of the Endowment not more than three dollars for each dollar raised from other sources during the previous year, and that after the year 1915-16 some similar principle of proportionate allotment should prevail as a policy of the Endowment.