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BULLETIN OF THE NATIONAL RESEARCH COUNCIL Vol. 9, Part 2 December, 1924 Number 49 AN EVALUATION OF THE SYSTEM OF CENTRAL FINANCIAL CONTROL OF RESEARCH IN STATE GOVERNMENTS BY LEONARD D. WHITE Associate Professor of Political Science The University of Chicago INTRODUCTORY NOTE The research possibilities of the agencies of state government which have to do with scientific work constitute an important resource for scientific research in this country. But there are special conditions attending the progress of research under state auspices, such as the type of governmental machinery provided by the state, the adminis- trative relationships between the scientific, regulatory, educational, and other functions of the state, and cooperative association with federal and private agencies. These conditions, as well as the nature of the scientific work itself which the state ought to undertake, affect the course of research done under state auspices. If one is to see clearly the position which scientific work ought to occupy in the application of science to public welfare through agencies of state government, it is necessary to understand these and other conditions which surround the scientific work carried on under state auspices. With the hope of aiding in the understanding of the fundamental conditions found in this field of scientific activity the Division of States Relations of the National Research Council has encouraged the undertaking of several studies upon the extent of state scientific work and of its organization. Two of these studies have already been com- pleted: one by Dr. James R. Douglas, formerly of the University of California, upon "The Research Activities of Departments of the State Government of California in Relation to the Movement for Reorgani- zation" (Bulletin, National Research Council, No. 13, June, 1921, pp. 289-3341; and the other by Professor Leonard D. White, of the University of Chicago,-upon "The Status of Scientific Research in Illinois by State Agencies other than the University of Illinois" (Bulle- tin, National Research Council, No. 29, March, 1923, 83 pages). These studies have dealt with the erect which the recent movement for the 1

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2 INTRODUCTORY NOTE reorganization of the governmental system in certain states may have had upon the position of scientific work in these states. This movement for reorganization has been marked by a tendency toward the centralization of powers, particularly in the financial con- trol of the state. Such a tendency extensively affects all func- tions of the state government. In order to be able to recognize these effects, some of which are certainly beneficial, others of which perhaps not so beneficial, the Division of States Relations has regarded it as desirable that a study be made of this tendency toward centralization of financial control in the reorganization of state government. It was possible last year to arrange with Professor White for the undertaking of such a study. In the present report, resulting from this study, Professor White has carefully examined the financial system of certain states, and espe- cially the erect of a centralized financial system upon the work of the scientific boards, commissions and other governmental agencies of these states. He has also taken up for illuminating comparison a review of the methods of administering research in a large educational institution the University of Chicago- and in certain industrial cor- porations which maintain extensive research establishments. In these studies upon the organization and work of the scientific administrative departments of state government this Division of the Research Council has considered only the organization of those admin- istrative departments of the state organization which have to do with scientific work. It is recognized that the educational institutions of the state constitute a very important research resource for the state, particularly the state university and the state agricultural college and experiment station, but it has seemed practicable to consider at first the position of science in the administrative branches of the state gov- ernment and to expect that research conditions in the educational institutions might properly be considered by other agencies more directly concerned with the educational relationships of research. The National Research Council is grateful to Professor White for the pains which he has devoted to this study and wishes to acknowl- edge to him full credit for this report and for the originality of its conclusions. The responsibility for data reported and for the opinions expressed rests, of course, with the author. The Research Council desires to record its gratitude also to many who furnished Professor White with information and assistance in the course of his study. The report is published by the Council with the hope that such an analysis as this may be of assistance to those who are concerned with the development of scientific work under state auspices. A. F. WOODS, Chairman, Division of States Relations.

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PREFACE This study was undertaken in the autumn of 1923 at the request of the Division of States Relations of the National Research Council, and may be understood as representing conditions as of February, 1924. In the preparation of the survey the writer has drawn in part on the material included in a former study of Illinois, brought down to date, has visited the state capitols of Wisconsin, Ohio, and Massa- chusetts, and has had both written and personal contact with state officials and scientists. Cordial appreciation is here expressed for the uniform courtesy and the valuable assistance which they have granted. Several chapters have had the benefit of criticism by those especially competent to express an opinion. The chapter on Illinois was reviewed by Dr. Stephen A. Forbes, chief of the Illinois State Natural History Survey; the chapter on Wisconsin by Dr. Joseph P. Harris, of the University of Wisconsin; the chapter on Ohio by Professor Francis W. Coker, of Ohio State University, and by Professor Earl N. Shoup, of Western Reserve University. Professor Charles E. Merriam, of the University of Chicago, has also given valuable suggestions. The writer expresses his deep obligation for their generous assistance. At the same time he accepts the responsibility for the evidence presented and the conclusions reached. If to a small degree the issues are clari- fied and the mutual adjustment of scientific endeavor and financial supervision is advanced the main purpose of this small contribution will have been met. LEONARD D. WHITE. 3