On 20 June, 1956, at a Special Meeting of the Members, by a unanimous vote of the membership present, The American Field Service Fellowship for French Universities Inc. and The American Field Service Inc. were consolidated. Henceforth, all the physical and financial resources of the organization would be devoted to the secondary student scholarship program. On 6 August, 1956, the Supreme Court of the State of New York formally approved the consolidation.

The number of students spending the school year of 1956-57 in the United States was 770. Additional staff were needed to take care of such a number, and the additional office space required was secured by renting the ground floor and basement of number 117 East 30th Street. A one-year lease was entered into for the sum of $6,000.

As one might expect, the increase in student numbers came from the spread of interest to more states and to more communities. The proliferation of local committees and regional AFS Organizations obviously called for a more formalized relationship between the New York office and these volunteer AFS groups. Among other considerations, Federal laws governing non-profit organizations would require an accounting of funds raised in the name of AFS. Consequently the Executive Committee of the Board on 12 September, 1965, adopted a resolution regarding the governance of local committees and formalizing the relationship between them and the corporate body.

WHEREAS, due to the tremendous growth of the A.F.S. program and the interest in the program in all parts of the United States and in many countries of the world, the A.F.S. is represented in local communities by committees of individuals and groups whose composition and responsibility and relation to the New York office varies greatly; and

WHEREAS, because of the size of the program and the responsibility which the A.F.S. has for the welfare of an increasing number of students, it is desirable to regularize the duties and responsibilities and form an organization of committees which represent the A.F.S. in communities and to authorize such committees and only such committees as comply with rules and regulations established by the A.F.S. to represent the A.F.S. in communities:

Now, therefore, upon motion duly made, seconded and unanimously carried it was

RESOLVED, that the rules and regulations concerning local A.F.S. committees, a copy of which was presented to the meeting and ordered filed with the minutes of the meeting, be approved; and be it further

RESOLVED, that the Director General is authorized and directed to extend these rules and regulations to local committees now representing the A.F.S. and to those which may hereafter be formed and to secure in a form acceptable to him the agreement of every such committee to abide by such rules and regulations; and be it further

RESOLVED, that the Director General is authorized and empowered in his discretion to grant authority to represent the A.F.S. only to committees (1) whose form of organization meets the requirements of the rules and regulations and (2) which agree to adhere to such rules and regulations as amended from time to time, and the Director General is hereby empowered to revoke the grant of authority to any committee which fails to abide by such rules and regulations.

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American Field Service Regulations Concerning
U.S. Local and Area Committees

Preamble

The size and growth of the A.F.S. program places an increased responsibility on all those who are connected with it, and the officers and directors have determined that the program will be more efficiently administered if the relationship between the head office in New York and the committees representing the A.F.S. in various localities (be it town, city, state, region or other area) be formalized and responsibility and obligations more clearly defined. This is the purpose of these regulations.

Section I, General Principles

1. The A.F.S. shall be represented in localities and areas throughout the United States only by A.F.S. Committees which have agreed to abide by these regulations and which have been duly designated as such by the Director General of the A.F.S., and have been granted by him authority to represent the A.F.S. in such designated places.

2. The responsibility of an A.F.S. Committee is to:

a. Further the objectives of the A.F.S. program in such ways as are agreed to between it and the A.F.S. New York office (hereafter referred to as AFS/N.Y)

b. To promote the welfare of the A.F.S. students under its jurisdiction.

c. Raise the necessary funds in the area of its jurisdiction to pay for the scholarships of A.F.S. students located there.

3. The grant of authority to represent the A.FS. referred to above may be revoked by A.FS./N.Y. upon failure of a committee to comply with these regulations or for any other action, which in the judgement of the Executive Committee of the Board of Directors of the A.F.S. is contrary to the objectives and principles of the A.F.S.

4. There are three types of committees:

a. Local committee
b. Community Committee
c. Area Committee

5. Each A.F.S. student is to be under the jurisdiction of but one Local or Community Committee.

6. If any student is located in an area covered by two Area Committees, A.F.S/N.Y. will specify which committee is responsible for such student, or if there is to be division of responsibility, how that division is to be made.

Section II - Committee Organization

1. Local Committee

a. A local committee has a responsibility for one, and only one, high school. It may have one or more students in the high school under its Jurisdiction. It must consist of at least three individual members:

1. A member for fund raising.
2. A member for home placement.
3. A member for school liaison.
In addition the Committee may have additional members, and if such additional members do not exist their duties shall be performed by the three mandatory members.
4. A member for summer program.
5. A member for publicity.
6. A member for projects.
7. Such other members as it may deem necessary.

b. A new Chairman must be elected each year from among the three or more members to act as the Committee's liaison with either

1.The Area Committee under whose jurisdiction it falls; or
2. If it is not responsible to an Area Committee, the District Representative and/or the Regional Representative under whose jurisdiction it falls; or
3. If it is not responsible to any of the above, directly with A.F.S/N.Y.

2. Community Committee

a. A Community Committee has a responsibility to a minimum of two or a maximum of four schools. Each school may have more than one student.

b. This type of committee must be formed in a community which has more than one but less than five participating schools.

c. The Community Committee must consist of at least six individual members:

1. A member for fund raising.
2.A member for home placement.
3. A member for school liaison.
4. A member for Summer program.
5. A member for publicity.
6. A member for projects.

In addition, the committee may have any additional members it may deem necessary.

d. A new chairman must be elected each year from among the members, to act as the committee's liaison with either:

1. The Area Committee under whose jurisdiction it falls; or
2. If it is not responsible to an Area Committee, the District Representative and/or the Regional Representative under whose jurisdiction it falls; or,
3. If it is responsible to any of the above, directly to A.F.S./N.Y.

e. Each school is to have fair representation on the Community Committee with at least one representative.

3. Area Committee

a. An Area Committee serves and has jurisdiction over two or more Local and/or Community Committees. It does not, itself, deal directly with any High School or Community, but only indirectly through committees under its jurisdiction.

b. An Area Committee will be formed where:

1. In a city where there are more than four participating schools, each with a Local Committee, or within a reasonably compact geographic area, such as a county.
2. Within a city and its natural suburbs where there may be a combination of local and Community Committees.

c. Area Committee must have at least six individuals as members.

1. Member for fund raising.
2. Member for home placement.
3. Member for school liaison.
4. Member for Summer program.
5. Member for publicity.
6. Member for projects, and it may have such other members as it deem necessary.

d. A new Chairman must be elected each year.

e. The Chairman of each of the Committees under its jurisdiction is automatically to be a member of the Area Committee.

f. The Area Committee is responsible to the District and/or Regional Representative or in their absence to A.F.S./N.Y.

Section III - District Representatives

A.F.S./N.Y. will, as it sees fit, appoint a District Representative to act for it in a given area. He will work closely with the Committees within that area to fulfill his primary function, the expansion of the program, and in other duties designed to facilitate the work of A.F.S./N.Y. in matters such as transportation, conferences, bus trips and finances.

Section IV - Regional Representatives

Regional Representatives will be appointed by A.F.S./N.Y. to coordinate and supervise the work of District Representatives.

Section V- Legal Organization

Except as it may be necessary or advisable under local law, Committees are not required to incorporate. If a Committee shall decide to incorporate, it shall first obtain the written approval of A.F.S./N.Y. and shall follow the instructions of A.F.S./N.Y. as to the name of the proposed corporation, the form of its charter and by-laws and other matters incidental to such incorporation. Every Committee, whether or not it is incorporated, shall at all times operate in accordance with rules and regulations which shall be approved by A.F.S./N.Y.

Section VI - Fund Raising

1. A.F.S./N.Y. will determine the average cost per regular student under the program and this sum is herein after referred to as the Rate.

2. An A.F.S. Committee by arranging the placement of students in its jurisdiction agrees to raise in the area under its jurisdiction a Quota equal to the Rate times the number of students under the regular program and to forward this amount to A.F.S./N.Y. as soon as possible.

3. No funds can be solicited for Local or Community Committee expenses by those committees.

4. Restrictions on fund raising for Area Committee expenses: A sum up to 2 1/2% of the Area Committee Quota can be raised and used for Area Committee expenses. However, all committee expense money raised is to be sent to A F.S./N.Y. with other A.F.S. funds, and vouchers must be submitted to A.F.S./N.Y. for payments of expenses, which in no event can exceed the sum raised.

5. Methods of fund raising: An A.F.S. Committee may raise funds by any legal method it deems advisable under the local situation except that any method which in the opinion of A.F.S./N.Y. is contrary to the objectives of the program will not be used.

Section VII - Final Authority

1. A.F.S./N.Y. has final authority to determine the type of Committee or Committees necessary to further its aims.

2. (a) Any local, Community, or Area Committee has the right of direct appeal to A.F.S./N.Y. in matter of controversy.
(b) A.F.S./N.Y. had the ultimate responsibility for the welfare of its program. Therefore, in any conflict between any A.F.S. Committee or Representatives and A.F.S./N.Y., the decision of A.F.S./N.Y. is final and absolute.

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Similarly because of the development of A.F.S. returnee groups in other countries and in some instances the legal incorporation of national entities using the name of the American Field Service, the Board had deemed it advisable to adopt a resolution, on 12 March, 1956, concerning these A. F.S. groups:

RESOLVED, that the American Field Service consent to the formation in foreign countries of groups or committees or legal entities using the name of American Field Service only when that group or committee has been formally recognized by American Field Service/New York as the group or committee representing the American Field Service in the particular country and that in order to be formally recognized by American Field Service/New York such group or committee must establish an organization, the objectives and rules of which are deemed by the Director General to be consonant with the objectives and policies of the American Field Service; and further

RESOLVED, that such recognition may be withdrawn from any such group or committee at any time upon a finding by the Director General that the program or policy of such committee or group is contrary to, or not in harmony with, the objectives, programs policies of American Field Service/New York; and further

RESOLVED, that the Director General be, and he hereby is, authorized to take such action as he may deem necessary or appropriate to carry out the foregoing resolutions.

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Finances---Again

As the programs became larger and the A F.S. organization grew more complex, greater demands were made on the financial resources available. Depending for the most part on volunteers in the United States and in many countries in even more distant parts of the world, expenses grew faster than income. Student travel became more expensive as distances increased. The proliferation of committees demanded more staff travel to insure the maintenance of high standards of selection, placement, and counseling.

As the Director General remarked in his report to the Board on 16 July. 1957:

We have worked hard this year in strengthen our local committees and do believe we have made much progress, although there is still much to be done in that respect. The main hindrance is lack of funds for the heavy traveling expenses this entails.

Our relations with the schools have become closer and many schools are taking a very real interest in the program and its value to them, rather than just accepting the student. There has been a great improvement in this way.

We still need a better understanding with our volunteer representatives who are very varied; some are not as effective in overseeing our students. That is something that will require more thought as we go along.

Larger and larger sums of money were being raised, and of course larger and larger sums were being required. Both the so-called Regular Program (to the United States) and the Summer Program in 1955-1956 operated at a deficit. The projected budget for 1956-1957 also showed a deficit. The Board was becoming more concerned. The accounting systems which had been adequate when numbers were small and operations were relatively simple, were now deemed unsatisfactory. The Budget Committee was unable to secure breakdowns on some large items of expense (e g. $53,665 for overseas expenses in the Summer Program). If proper control of expenditures was to be attained, monthly breakdowns were called for, together with monthly expenditure comparisons to budgeted figures.

So the accounting system was overhauled; the accounting department was strengthened. In July, 1957, the first controller was hired.

The Regular Program for the first time passed the 1,000 mark. The staff was still growing and the office space on 30th street was more and more cramped. The Board of Directors appointed a Real Estate Committee to come up with some answers to the problem.

The year 1957 was the year of the Asian flu epidemic. Mr. Galatti's report of November, 1957, is worth quoting in full, indicating as it does not only the seriousness of the situation but also the highly efficient way in which the A F.S. organization rose to the occasion. One feels in reading the report the urgent concern all felt, but no one flapped and the outcome was far less serious than it might have been.

A.F.S. headquarters has probably had more contact with this epidemic than any organization, as we have been plagued by it since June 23.

Our first contact was when the San Francisco bus with 1956-57 group returning home came down almost to a man in Salt Lake City. Through the able and intelligent handling of this by our A.F.S. representative, Bartlett Wicks, in conjunction with the Health Authorities, everyone recovered and there was no further spread.

Our next contact was at Rotterdam, when the 1957-58 Turkish students arrived there with the flu and were isolated. But we have since come to believe that some of the Austrians had come into contact with them. Anyway the flu went rampant on the Arosa Sky, and although 200 cases were reported, there may have been more.

Before the arrival of the students, our A. F. S. doctor, William Alden Gardner, contacted the City and State Health Departments and with them boarded the Arosa Sky, which had arrived in quarantine on the night of August 12.

Their decision was to land the boat and to send any then sick patients to A.F.S headquarters, or to the Martha Washington Hotel. Ambulances and hospitalization by the health authorities were cancelled.

The Health Department, as is the custom, had alerted the press, and this became front page news and hourly radio broadcasts, which put a tremendous strain on this office.

The A.F.S. had arranged for distribution of the incoming students by buses and planes from the New Yorker Hotel ballroom, which was big enough to feed and temporarily house both boys and girls.

It is evident after the landing, with 28 cases still sick that the epidemic was still running, and that was our chief worry.

While having to oversee the travel of about 700 kids, we also had to pick but any who were feeling badly and shunt them off to A.F.S. headquarters.

By midnight all buses and planes had left, and Dr. Gardner, Mrs. Field and other older members of the staff were checking on the patients. One, Nicholas Memmos, who had had the flue already on the boat complained of pains, and Dr. Gardner on examination immediately sent him to Roosevelt Hospital. There are complete reports in this office which show that he could not have been saved and that nothing could have been done better than was done.

We knew, of course, that there would be more cases, but we acted on the advice and authority of the Health department in not retaining the whole group here. There are specific regulations that these cases are not to be hospitalized as such, and as I stated previously the only chance of mass hospitalization was cancelled by the Health Officers after boarding the ship.

We were fortunate that not more than 20-25 cases developed after departure and out of these only two were serious, and have recovered.

There were no cases on the Holland-American line steamer carrying 110 students, mostly Germans, which arrived the same day. Although these were mixed in the buses and planes, none caught the flu. "Meanwhile, the plane from Amsterdam had arrived with a reshuffled group of kids, and some cases developed from these but were handled in New York. "

The Turkish kids sequestered in Amsterdam all came out fine, and our Dutch Committee did a fine job in putting them into Dutch homes while awaiting shipment on the Arosa Star. They arrived here in wonderful spirits.

Our next flu came from an entirely different direction. The Argentine and Guatemalan kids were flown up from South America to Miami and bussed up from there. On arrival in Baltimore, where they were housed one night, everything was all right, but one boy developed fever the next day and was dropped off at Wilmington, where John Conant, our representative, took him in. He is now all right and with his family. Out of these 35 kids, 17 developed the flu in New York and were cared for here. One Guatemalan boy was sent to the hospital because of high fever, but he is all right now.

Having had flu from three different parts of the world, one would have thought enough is enough, but flu broke out in Paris among the American kids returning from Greece and Turkey, and as they were only passing through to catch the steamer at Rotterdam, we had only a few hours to act.

Claude Egnell, our representative, put six cases in the American Hospital and telephoned for instructions. Dr. Gardner and I consulted the Health Authorities here, who said we could decide any way we liked. If we sent them on the Arosa Kulm they would not hold us responsible and would clear the ship on arrival, as flu was not a quarantine problem.

There was not time for consultation with anyone except Dr. Gardner, but I felt that our public relations with American families would deteriorate if we allowed a group with known cases to join the others, so I telephoned Claude Egnell to hold them in Paris. The next morning I received a charter from U.S. Overseas Corporation at a price of $215 per student for a full 74 load. There are 76 students involved. This plane going over empty and leaving Paris September 4th at 10 A.M. to arrive in New York September 5th at 6 A.M. Four new cases developed on August 29th in Paris, and there was no way to tell what the toll might be; therefore there was a gamble of how many could take this plane. There was no shipping space available in September from the other side and only a seat here and there on the regular airlines, so I don't know what other choice we had. We were sending 9 students on the fall program by ship to Europe, and we put them on the empty plane, thus saving $1,800, which is a real factor and helpful, as the overall extra cost per student is only $65--or $4,810--Provided the Arosa Line accepts cancellation of these 77 passages. Actually, I have withheld payment of this amount on the final settlement bill from them.

All American parents were notified of this action on our part, and fortunately no cases developed on the Kulm.

I would like to cite the work of Dr. Gardner, who single-handed did a marvelous job with health officials, with close contact with all cases, and with the confidence he inspired in all of us. I have written him a personal letter, but believe this Board should follow this up with a resolution.

I also want to cite the staff here, five of whom fell ill because of the contact and hard work, but especially the work of Dorothy Field, who day and night followed every case, and that of Sachiye Mizuki, who was in charge of the Arosa Sky. There were American returnee volunteers who also helped nurse the kids, notably John Knapp, Susan Hubbard and Ann King, all three of whom later fell sick, as well as Hilde Laursen, a 1956-57 student who had not yet returned home.

Now to financial matters. This will cost us money, especially the Pan-American charter plane which had only 56 students instead of 71 coming from Amsterdam, and of course this charter plane for the Summer Program Greek and Turkish kids.

There will be not more than 10 hospital bills, but five of these will be fairly large. And, of course, Dr. Gardner's bill should be heavy for treating so many patients. The cost of Nicholas Memmos will run to about $1,500.

This has, however, proven again the value of self-insurance, because except for hospitalized kids, the individual bills are all running under $15, and certainly transport expenses would not come under insurance.

The year 1957 was notable too for a new pilot program. The first 22 students on what was to become the School Program were spending 5 months in 5 European countries-1 student in Norway, 4 in Denmark, 4 in Belgium, 1 in France, and 12 in Germany. In reporting to the U.S. Department of State, on a trip to Europe in October, 1957, Mr. Galatti indicated great interest in this project among school principals, and a willingness to make concessions in language and curriculum. He predicted a great future for the program.

At the same time the Regular Program to the U.S., now called the Winter Program, had placed 1,039 students in homes in this country in all but three of the then 48 states. (The exceptions were Idaho, Wyoming, and Mississippi.) The students represented 29 foreign countries, and included the first substantial number of Latin American students: 25 Argentinians, 11 Brazilians and also representatives from Bolivia, Chile, Ecuador, Costa Rica, and Honduras. George Edgell reported that this 1957-1958 program was 35 percent larger than that of the preceding year. He attributed much of this increase to the new system of Area Representatives; for example, in California, where there had been a growth from 129 to 195, and in New York State from 76 to 103.

Early Budgets

Annual budgets were beginning to appear at earlier dates and were constructed in greater detail than before. The Proposed Budget for 1958-1959 was presented at the Executive Committee meeting on 12 November, 1957. It is more than a budget, and it would be something of a horror show to an accountant; as an historical document it is a mine of rich ore.

As a matter of fact, two different budgets were presented. For purposes of comment and as a matter of interest, I have combined the two using $1,025 per student and including the income item for the year 1957-1958. The bottom lines differed by only $13,000.

INCOME:

EXPENSES:

Scholarship Program

Americans Abroad Program

The American Abroad Program is substantially self-sustaining through local contributions; however, to help equalize the number of American and Foreign Students the AFS must be able to provide full or partial AAP Scholarships for proper candidates from deserving areas. The minimum need is for 100.

(For the 1957-1958 Year the following extraordinary income was received for the Scholarships Programs: From U.S. State Department - $51,000; special contributions - $26,000; net income from investments - $11,500.)

Building Fund Program

Worthy of special notice are the following:

INCOME

1) AFS expected 1400 Winter Program Students to be sponsored by U.S. communities.

2) The sponsorship fee (later to be called the Chapter fee) was $650.

3) The average Winter Program family fee was $300.

EXPENSES

1) Ocean travel was becoming quite expensive as compared to air travel.

2) Winter Program students were receiving a cash allowance of $13 per month.

3) The average cost per student was estimated at $1,025, but the income from fees averaged out to only $950.

Americans Abroad Program

A centrally administered scholarship fund was proposed "for proper candidates from deserving areas". This was for the time an ambitious proposal. Similar proposals were made from time to time (to my knowledge as late as 1972-1973), and some attempts were made to implement them on a modest scale. Local AFS organizations have never been generally enthusiastic about abrogating the option of giving financial assistance to their own AA candidates. In some instances, this local pride has resulted in the payment of the "family fee" by local AFS organizations in behalf of students whose parents were more than capable of meeting the cost themselves.

In light of the projected cost of ocean travel in the above budget of $482 per student, it is interesting to note that in a meeting a month later (17 December 1958) it was reported that contracts had been entered into for three air charters:

The planes were DC-6 Golden Falcons (How one regrets the passing of romantic names for our planes!) carrying 80 passengers. The average cost per student was approximately:

A. $739
B. $280
C. $357

The overall average was $413, a saving of $69 over the cost in the Proposed Budget for 1968-69. If this average could be maintained over the whole program, a total saving of almost $100,000 would be realized.

The high travel cost for students from Asia and the Pacific has always presented a financial problem to AFS and has in some instances influenced the program "mix." It has always been necessary for the Administration to keep a sharp eye on travel costs as compared to program income from each country of the world.

By the middle of the year 1958, the countries represented on the Winter Program and the number of their students in the U.S. were:

The students were distributed across the United States as follows:

From the Minutes of 22 October. 1959

At the request of the Chairman, Mr. Galatti read the following remarks:

I do not think that a full report, such as the one I provide at the annual meeting in June, is necessary at this time, but I do think a few words would be helpful to you.

The bus trips this summer went off smoothly, and for the first time we have had no unfavorable reaction of any kind, even from the Washington hosts. Midway, the gathering together of all the 1958-59 students at Syracuse University for four days, seems to have been a huge success.

Then followed the departures of the 1958-59 students and the arrivals of the 1959-60 students--a Herculean task. Every plane and boat was seen off and everyone was met--at Seattle, Montreal, New York, or Miami thus covering quite an area.

Miss Mizuki was in charge of the distribution of students from the port of arrival to their new homes. She had Miss Jackie Cannon as her assistant, and we engaged the services of four boys and a girl (all U.S. returnees) for the purpose of assisting them with this. We flew more students to their destinations in the U.S. than usual, because of the problems arising from arrival in Seattle and Miami.

Every day from June 10th to September 5th showed us the value of the new building and its necessity. Heaven was with us so far as the health the new arrivals was concerned, as only two even had temperatures. They were held overnight and were ready to travel on the next day.

We have settled down now with a very much larger staff and the new system mentioned above in the office. This should result in a more effective administration for the enlarged program.

We have had to raise the participation fee for the Summer Program, as steamer rates have gone up $70 for the Seven Seas, --- bringing the total fee up to $595. The Holland-American line, although very anxious for AFS and giving it first choice on student sailings, is removing from these runs one ship we have been using for the Summer Program.

We do not need to change the $650 figure yet, as the average fare for regular program students will come to $180, a five dollar advance. But all shipping is going up in price. AFS is reserving 154 of the 167 available tourist spaces in the appropriate NYK sailing next summer--at $301 against $200 for a charter-plane passage. So more and more we will have to fly students until maybe, after a gradual changeover, we will be flying all students.

Midway cost $8 per student, and we can make similar arrangements for the orientation sessions the students have been receiving on shipboard.

In the School Program, this fall, the students received two to three weeks intensive language study before going to their families. Now they are all speaking the language and getting along well in classes. Thus solves the problem of this program, which should grow considerably in the future.

The reports of the Building Committee appointed to find suitable property to meet the increased demands for working space begin to take on the air of a soap opera. Some of the suggestions in retrospect show great activity and imaginativeness on the part of the committee.

17 November, 1957 - Loew's Theatre on Avenue A between 6th and 7th Streets. Three walls, the roof, and the foundations could be utilized; the cost of new building was estimated to be $15 a square foot.

Proposal was rejected because of the character of the neighborhood and the lack of travel facilities.

12 December, 1957 - 686 Park Avenue. No comment.

11 March, 1958 - Mr. Galatti was authorized to take an option on the Edwin S. Gould property at 422-430 West 58th Street to purchase for $250,000 ($125,000 cash). No further mention of this.

17 June, 1958 - Board of Directors authorized the purchase of a property on 32nd Street for $145,000 and the expenditure of $600,000 on building.

[Ed 's note: The ultimate solution was foreshadowed at this meeting by a more or less casual mention of a Tudor City property. Foreshadowing is of course a favorite device of fiction writers to build suspense.]

11-14 November, 1958 - Suspense builds.

Because of the importance of the step that was contemplated, the historical survey provided by the documents, and the faith in the organization's future which has always characterized AFS, the editor has seen fit to include the minutes of 11 November and the memorandum of 14 November in full.

11 November. 1958

A special meeting of the Board of Directors of American Field Service, Inc. was held at 4:30 p.m. on 11 November, 1958, at 113 East 30th Street, New York, NY; William Barclay Parsons, Chairman of the Board of Directors, presided and called the meeting to order. George Rock, Secretary of the Corporation, acted as Secretary of the meeting.

1. Roll Call. Determination of Quorum. and Statement with Respect to Notice.

The following Directors were present: G. Hinman Barrett, Ward B. Chamberlin, Jr., Donald Q. Coster, Enos Curtin, Stephen Galatti, Alexander I. Henderson, Frederick W. Hoeing, Charles M. Kinsolving, Edwin R. Masback, Jr.,

William Barclay Parsons, and Reginald B. Taylor. The following Directors were absent: Julian Allen, Edward P. Curtis, Colgate W. Darden, Harry I. Dunn, Arthur Howe, Jr., Ellis D. Slater, Benjamin Strong, Edward A. Weeks, Jr., and Lee Blair Wood.

There were also present by invitation: Messrs, Gibson F. Dailey, Robert Foraste, Musgrave Hyde, Walter Miranda, William M. Sloane, and Oliver Wadsworth.

The Chairman announced that a quorum was presented and that a Notice of Meeting to all the Directors had been duly given in accordance with the By-Laws. The form of Notice was presented to the meeting and ordered prefixed to the minutes thereof.

2. Proposed Purchase of Land and Construction of Building at 311-13 East 43rd Street. New York, N.Y.

The Chairman referred to a memorandum dated 3 November, 1958 and attached papers describing the land and proposed building to be constructed by AFS at 311-13 East 43rd Street, New York, NY, and which memorandum and papers had been distributed to the members of the Board prior to the meeting. A copy of such memorandum and papers was ordered filed with the records of the meeting.

The Chairman stated that the purpose of the meeting, as outlined in the memorandum of 3 November, 1958, was to consider the proposal to purchase a plot of land at 311-13 East 43rd Street, New York, NY, for $200,000 and to construct thereon an AFS headquarters and club building at an estimated cost of $400,000. He described the project in detail, referring to (1) a mortgage loan of $225,000 for fifteen years at 5 1/2% interest which was available from the Seamen's Bank for Savings and (2) a letter dated 31 October, 1958, from George A. Fuller Company describing the kind of building that could be constructed for about $400,000. The Chairman also reviewed the financial condition of the Corporation in the light of the proposed commitment.

There ensued a lengthy discussion of the project, in which every member present expressed his views. The members asked a number of questions of Mr. Dailey of George A. Fuller Company concerning the construction of the building and of Mr. Hyde of Kahn and Jacobs concerning the design of the proposed Hyde building.

Mr. Galatti reviewed the efforts to find new quarters over the past three years and stated that in his opinion a move had to be made very soon from the present totally inadequate building if the programs of the AFS were to continue. He said that the 43rd Street project, which he had studied carefully, was the best one found so far and well within the resources of the Corporation.

Mr. Curtin questioned whether this large financial commitment was advisable in the light of funds available for such a project. He pointed out that, although there was available at the meeting a statement dated 6 November, 1958, and signed by the Controller, showing approximately $605,000 available, there was not yet prepared by Arthur Andersen & Company, the firm of independent public accountants which audited the Corporation's books, the financial statements for the year ending 31 August, 1958.

Mr. Henderson stated that a matter of this significance to the Corporation should be discussed with as many as possible of the Directors who would not be able to attend the meeting and their views reported to the meeting.

Other members present expressed the opinion that the project was a vital necessity to the Corporation and its programs and that in their judgments it could be financed through the present resources of the Corporation plus a well organized fundraising campaign.

At this point, Mr. Taylor left the meeting.

The Chairman then stated that in his view it would be advisable to postpone taking a vote at this meeting. He stated that because of some of the questions raised another meeting should be held in the near future and that it would be helpful to have for such a meeting: (1) a statement approved by the auditors as to the financial condition of the Corporation as of 31 August, 1958, the end of the last fiscal year; (2) a more detailed outline of the project, its cost and method of financing; and (3) an expression of opinion as to the merits of the project from Directors who would not be present. There was no objection to this proposal, and it was the sense of the meeting that another meeting should be called as soon as practicable.

There being no further business to come before the meeting it was unanimously resolved to adjourn.

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A Most Important Development

3 November, 1958

Memorandum on Proposed New AFS Building at 11-13 East 43rd Street

At the June meeting of the Board of Directors of American Field Service, Inc., the property of 122-26 East 32nd Street and the property at 311-13 East 43rd Street were considered as sites to purchase for the erection of an AFS Headquarters. At that time, the 32nd Street property, which was larger and less expensive, seemed more attractive, and the Director General was authorized to enter into negotiations for the eventual purchase of that lot and the erection thereon of a building for AFS use at a total cost to AFS of $600,000, of which $300,000 was to be financed by loans.

After that meeting it was found that the restriction on the height of any building erected on the 32nd Street plot could not be removed. So that plot was dropped from consideration. Another plot, on East 35th Street, was considered, but financing for it proved impossible to obtain.

Therefore the property at 311-13 East 43rd Street, in the Tudor City area, was again brought under consideration. The price is now $25,000 lower than when it was first considered, and we are now of a Class #1 office building, which allows building 90 feet deep rather than 65 feet that would have been the maximum permitted under residential zoning.

The proposition that has been presented is as follows: Lot: 311-13 East 43rd Street, between 1st Avenue and Tudor City Place, 50 x 100.5 ft.

According to the attached letter from Brett, Wyckoff, Potter and Hamilton, the second mortgage from the Fred F. French Co. is in fact only a two-year loan, which adds heavily to the repayment schedule during the first two years. However, it is proposed to repay this amount by funds specially collected for the purpose. The Seamens Bank is aware of this second mortgage.

The mortgage financing from the Seamens Bank is in the amount of $225,000 over 15 years. Repayment is at the rate of $1,250 a month, or with interest and amortization at a rate of $25,000 for the first three years.

Maintenance can be estimated at slightly under $1 per square foot per year, which for a gross of 22,000 sq. ft. would probably come to $20,000 a year.

This makes total payments, exclusive of the second mortgage, $45,000 per year.

Unaudited statements for the fiscal year 1957-1958 are being prepared and will be ready for the meeting of the Board of Directors on 6 November at 4:30 p.m. Thus the Directors will be able to consider the repayment schedule in the light of the financial position of the corporation at this time.

14 November, 1958

Memorandum to the Board of Directors
concerning proposed purchase of land at 311-13 East 43rd Street
and construction of new AFS headquarters building thereon

A Special Meeting of the Board of Directors was convened on Thursday, 6 Nov., 1958, to consider the proposal referred to above. After a lengthy discussion of the many factors involved, the meeting was adjourned without a vote being taken, and it was proposed that the meeting be continued at a subsequent date or that another meeting be convened. It was suggested that in the meanwhile the Directors be furnished with a revised and more complete statement of facts concerning the proposal and that the Director General, prior to the next meeting, attempt to discuss the proposal with and receive an indication of the views of those Directors who will not be able to attend the meeting. The next meeting is now to be held at 4:30 p.m. on Tuesday, 25 November, 1958, at 113 East 30th Street, New York City. Notice of this meeting has been sent to the Directors by separate mail.

There were present at the meeting on 6 November, eleven of the twenty-one members of the Board of Directors. The Membership Corporations Law of New York, under which the AFS is organized, requires that a sale or mortgage of real property have the approval of at least a majority of the number of Directors. With twenty-one Directors, a minimum of eleven votes in favor will therefore be required. However, in a project of such importance to the Corporation, it is important for each Director to understand the decision that is being made. For this reason, the Director General has been asked to discuss the proposal with those who do not expect to be present.

Background

For the past three years the Board has been struggling with the question of a new headquarters for the AFS. It has been obvious for some time that with a successful and continually expanding program, 113 East 30th Street is inadequate. The Board and its Committees concerned with this problem have actively considered at least twenty buildings and twelve sites upon which to build a headquarters.

Mr. Galatti feels strongly that an adequate AFS headquarters in New York should provide four kinds of space: (1) office space, (2) club and conference rooms, (3) auditorium and cafeteria facilities, and (4) dormitory space for both boys and girls. After an exhaustive search, it became clear that there was no building on the market in New York City that would fulfill these requirements and that to remodel other buildings would be both extremely expensive and ultimately unsatisfactory.

The Board then began to consider building an AFS building, and a number of sites were considered. Mortgage money proved difficult to secure. However, after many other possibilities had been considered and rejected, the site and project now before the Board was proposed.

It should also be stated that careful consideration was given to the advisability of renting the space needed. This was rejected principally because space offering the facilities outlined above could not be found and also because many Board members' felt that a sense of permanency was one of the vital needs of the program and that only by the construction or purchase of an AFS headquarters in New York would this important need be fulfilled. A further consideration was that in paying rent, which necessarily would reflect the cost of real-estate taxes, the Corporation would not be taking advantage of its tax-exempt status.

Need for New Quarters

(a) Expanding Program: In the last five years the Regular Program (bringing foreign students to the U.S.) has expanded from 445 students m 1954-55 to 1,170 students in 1958-59. The Summer Program (American teenagers abroad) has expanded during the same period from 367 to 834. And the new program, under which we send American students abroad to study, this year involved 16 students, and present indications are that this number will be substantially increased in future years.

These increased numbers, of course, require a continually increasing staff, which has now grown to more than 45 people. They must work in most crowded quarters on two floors and the basement of 113 East 30th Street and on one floor and the basement of another building at 117 East 30th Street (under lease). Access from one building to the other can only be made by going outdoors onto 30th Street. In inclement weather this tends to decrease the efficient operation of the program.

(b) Expanding needs: The increased numbers of students bring an increased responsibility. In the larger numbers there is certain to be more illnesses, and some of it serious. When this occurs in New York and does not require hospitalization, beds for such students are a practical necessity. There is the need to have a place to talk with and to give orientation lectures to large groups of students as they come and go from New York. There is a vital need to have a place to sleep small groups of students in New York. It is certain that a substantial cash saving (over present costs) will be made by having dormitories in an AFS building such as is being proposed. As it now is, the bill for hotel rooms in New York City and for students' meals is a very costly item. Consequently, AFS does not give students in transit either the rest or attention we would like to give them and feel they need and require.

Condition of 113 East 30th Street

It is obvious to anyone who has seen it that the present headquarters building at 113 East 30th Street is not only inadequate for students and staff but is also not a worthy symbol of the AFS, either its traditions or its present programs. The insurance companies will no longer permit students to be housed there. The insurance companies and the New York City Housing Authorities have withdrawn their previous requests that sprinkler systems, fire-alarm systems, etc., be added in view of our planned departure for other quarters. The Housing people have not yet made their annual fall inspection, but after twice being lenient because of the projected move they may suspect that we were telling them a story and crack down. This would involve the expenditure of a considerable sum of money. It should further be pointed out that we have received estimates that to put the building in a safe and habitable condition would require the expenditure of $20,000-$30,000 in addition to the cost of meeting the requirements of the Housing Authorities.

The need of a new headquarters for the AFS in New York would thus seem well established. The advantages and disadvantages of AFS owning its own building, and of constructing it, will be discussed below.

The Land and Building at 311-313 East 43rd Street

(a) Land: The proposal before the Board is to purchase a plot of land measuring 50 x 100.5 feet. It is on 43rd Street between 1st and 2nd Avenues, less than one block west of the United Nations buildings. The purchase price of the land is $200,000: $100,000 down and the remaining $100,000 payable within two years of date of purchase, to be secured by a so-called second mortgage.

The plot has recently been re-zoned to permit the erection of a Class A office building (as described in the letter from Brett, Wyckoff, Potter & Hamilton, dated 27 October, 1958, a copy of which was sent to the Directors on 3 November). As a result, 95 feet of the depth of the plot can be used for the building. (The plot had formerly been zoned for residential use only.) The 43rd Street area is attractive, and recently a number of charitable organizations (such as the Heart Foundation and the Multiple Sclerosis Foundation) have moved their headquarters to this immediate area, which already houses a great number of private international organizations.

(b) Building: About six months ago the firm of Kahn and Jacobs was retained, through Musgrave Hyde, to prepare preliminary drawings of the kind of building that would be suitable for the AFS. Kahn and Jacobs have worked closely during this period with the construction firm of George A. Fuller Company in advising Mr. Galatti on matters relating to the building. There is attached hereto a copy of a preliminary sketch of the facade of the proposed building prepared by Kahn and Jacobs. It will be noted that the building will consist of 22,000 square feet gross, with four floors and a basement. Additional floors could be constructed if required.

With the material sent to the Directors on 3 November was a letter from the George A. Fuller Company, dated 31 October, stating that a building such as is proposed could be built for approximately $400,000, including Fuller's fee. The cost of the building would thus be about $18.50 per sq. ft. The letter noted a number of economies that would make this price possible and stated that "You will get a good substantial building--well built--a building which can be maintained well.."

As now contemplated, the proposed building will consist of:

Cost:

* Estimate from the Lincoln Warehouse Corp., after inspection of the premises at 113 and 117 East 30th Street, was $2,100 to $2,400 for the entire job, including packing.

Proposed method of financing

Except for the sum of $225,000 that would be raised by a mortgage loan from the Seamen's Bank for Saving, the total cost of this project would fall upon AFS.

The details of the loan from Seamen's were outlined in its letter dated 30 October, 1958, a copy of which was mailed to the Directors on 3 November. It is hoped that during negotiations with Seamen's the proposed interest rate of 5 1/2% and the prepayment provisions can be improved. Every effort will be made to do so. However, the figures included herein are based on a loan of $225,000 for 15 years at 5 1/2 percent.

Subtracting $255,000 from $714,800 leaves $489,800 to be financed by the AFS. The owners of the property on 43rd Street, as noted above, will accept $100,000 down and the remaining $100,000 payable in two years. But this short-term loan would have to be accounted for all purposes as an immediate obligation.

There is following on page 105 the statement dated 6 November of AFS free funds as of 31 August, 1958, the end of our last fiscal year, which was prepared by Robert Foraste, AFS Controller. It shows that as of that date the AFS had in free funds (that is, funds which can be used for any corporate purpose) the sum of $605,000. This is a net-worth figure, including the property and building at 113 East 30th Street at a book valuation of$44,921.53.

Arthur Andersen & Company, the firm of independent public accountants which has audited the AFS accounts for many years, has completed its audit for the year ending 31 August, 1958. Their complete report will not be ready by the 25th November, but they will on that date have for review by the Directors a signed copy of the figures resulting from their audit for the year ending 31 August, 1958. Mr. Foraste's statement below was reviewed by them, and in their judgment, while allocation of expenses may change some program totals, the total of fund balances ($445,305) was not expected to differ by a sum any greater than $20,000 to $30,000.

The AFS free funds of $605,000 is made up of: (1) common stocks and long-term obligations valued at approximately $340,000 as of 31 August, 1958, (2) short-term obligations and cash, and (3) the value of the property and building at 113 East 30th Street. The present thinking of the Finance Committee of the Board of Directors is that, if this project is approved, AFS would sell immediately the common stocks and long-term obligations and keep these funds, together with other AFS free funds totalling in the aggregate $500,000, in a segregated fund to be called the Building Fund. This fund would not be used for any purpose other than expenses in connection with the new building. Funds raised specially for the building from other sources would be credited to this fund, and at such times an equal amount would be released from the Building Fund.

Thus, it is proposed that more than the total obligation of the AFS for the land and building at 311-313 East 43rd Street be placed in a segregated fund for this use only. This would not, in Mr. Galatti's judgment, in any way impede the operations of the AFS programs, which themselves generate sufficient operating funds.

Schedule of Annual Maintenance, Upkeep and Carrying Charges

Notes:

* Assuming that the $100,000 1st mortgage is amortized over a two year period.

** See below for breakdown of costs.

*** This represents an annual increase of $3,220 over present maintenance costs at 113 East 30th Street. These present costs total $16,700 and include $5,000 for rent of quarters at 117 East 30th Street, maintenance, fuel, electricity, superintendent, and insurance. The estimate of maintenance for the proposed new building at just under $1 per sq. ft. would seem realistic.

Statement of free funds on 31 August. 1958

* Includes some income (net of expenses) applicable to programs completed in prior years but excludes all income (net of expenses) applicable to programs now in process.

** Subject to final audit and adjustments. Allocation of expenses may change some program totals, but the total of fund balances is not expected to differ by more than a possible $20,000 to $30,000.

*** Securities held at Fiduciary Trust Company, as of 31 August, 1958:

Fund Raising Prospects

Throughout the year we have been repairing and have also embarked on various forms of fund raising. A new building and heavy obligations to pay off would give a new impetus to this effort as well as a new incentive to potential donors.

(a) Corporations: We have approached and will approach corporations, and although some of our local Chapters have been successful, so far we have not received such gifts for general funds in New York. But we understand that we should keep on asking, as policies change yearly.

The following have shown very definite interest in giving to general funds in New York: Socony Mobile and Reynolds Tobacco Co. We have already received gifts from TWA and from the Racing Association of Southern California. However, support from these companies is problematic, and we are not counting on this source of possible gifts.

(b) College Funds: "College funds" are student collections of charitable donations on college campuses for a specific list of organizations, allotting a percentage of the total take to each organization listed by them. Write-in designations of the recipient of a specific donation are permitted.

We have now contacted practically every college fund in the country through Applewhite's leads from our summer students. Next year will surely see an increase in the $3,600 or so we have received from such funds this year.

(c) Communities and Committees: We have now formed free-fund committees in a number of cities whose interest is in raising funds in excess of local program needs. For example, for 1958-59:

Los Angeles has accepted a $10,000 quota.
Minneapolis has accepted a $10,000 to $15,000 quota
St. Paul, Minn., has accepted a $3,000 quota
Buffalo, NY has already raised $4,000.
Chappaqua will again give a benefit to net $1,300.
San Francisco will give two benefits to net $5,000.
Milwaukee has formed a committee for this purpose, but no sum indicated yet
Duluth has pledged $40 per student = $600.
Rochester, NY has pledged $50 per student = S500.
Phoenix has pledged $50 per student = $500.
Detroit has not pledged, but Carl Hanna is going all out for these funds on a special project.
Other communities have contributed more than $6,000 this year by giving extra funds on a per-student basis.

It would seem that all these would represent $50,000 this year and hopefully an increase each year.

(d) Free-Fund Gifts: We have recontacted our flu donors of last year, which netted us $6,000. And, although no emergency is involved this year, we should get in $2,000 from this new group of regular givers.

Last year AFS free-fund gifts ran to $48,000. As we can expect $100,000 next year (adding this $48,000 to the $50,000 in (c) above), it may be safe to assume that without any special building fund campaign we should have the necessary amount through gifts to pay off the $100,000 each year having, of course, to be saved as a cushion for operating expenses.

(e) Special Building-Fund Campaign: You can always make a guess of what funds a building drive will bring. Remember that there is a place for memorials, which are very helpful in a drive of this kind. There are five such now, which can be developed as we have kept aside the "gifts in lieu of flowers" in all these cases.

(f) Increased numbers of dues-paying students: We have not made any allusion to the possibility of dues from American student returnees. We feel that we can solicit such dues only when we have something to offer these students, such as a Headquarters building that would be useful and available to them. Every year will add over 1,000 to their numbers.

Summing Up: Pros and Cons

(a) Advantages (not necessarily in the order of their importance):

1. Sufficient space in which to run the programs, allowing for expansion of programs as well as additional useful activities (such as meetings of Chapters in Greater New York area) never before possible because of lack of space.

2. Establishing a permanent AFS.

3. Providing an international center for our program.

4. Increased efficiency in running the program and the possibility of numerous economies, for example:

(i) much less renting of hotel rooms when students are held overnight, as well as saving on meals in New York City.

(ii) less last-minute rescheduling of air flights and onward travel, and less worry when flights are delayed.

(iii) cash savings due to ability to buy supplies in bulk.

(b) Disadvantages: The major and perhaps sole disadvantage appears to be the financial risk involved. Of course, there is the additional maintenance expense that a larger building would entail. As shown above, however, this would not be as great as might ordinarily be the case because of the large maintenance cost involved in the old and run-down building the AFS now operates. In addition we would have to anticipate larger expenses (for rent, etc.) in the future because of the constant expansion of all programs.

As to the financial risk, the question is whether in the judgment of the Board the AFS should invest substantially all (85%) of its present capital in a building. To be sure, the capital is there and some will be left even if no additional money were to be raised. Also, the maintenance charges and interest and amortizations payments assume that the AFS programs will continue at least on their present scale and with the same margin of receipts over expenditures which the year 1957-58 produced.

Thus, if the fund-raising campaign were not successful and at the same time the programs were cut, the Corporation might find itself in the position of being unable to pay the interest and amortization, and the mortgage would be foreclosed with the resultant loss to the AFS of at least a substantial part of its investment of approximately $500,000. These are factors which the Board will want to take into account.

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25 November, 1958 - Resolution and denouement! At a special meeting of the Board of Directors a resolution was passed authorizing:

1) The sale of the property at 113 East 3ûth Street;

2) The purchase of the land at 313 East 43rd Street for S200,000

3) A contract with George A. Fuller, Inc. for a building cost S500,000, and

4) A contract with Kahn & Jacobs, Architects.

At the same meeting, also authorized was the appointment of a Building Construction Committee and a Building Fund Campaign Committee.

In subsequent minutes one follows with interest the growth of the Building Fund as revealed in Bob Applewhite's periodic reports, the escalation of Building costs, and the transfer of Funds from Reserve to Building Fund to meet the bills as the building progressed. By September, 1959, 113 East 30th Street would be sold for a net of $47,500, the sale contingent on moving to new quarters within fifteen months of the year.

During 1959 finances, fund raising, and the progress of the new building on 43rd Street occupy much of the time of the Executive Committee, but no one ever loses sight of the program and the continual progress being made there.

(One interesting footnote to AFS history during this period is the short-lived AFS Gifts Inc. Gifts was an AFS subsidiary established to import gifts from countries around the world and sell them to AFS friends and constituents, the income to be used for general purposes. Gifts was established in April, 1959, and dissolved a year later; a somewhat disappointing venture which failed to realize the profits envisioned for it.)

The Combined Funds of AFS had by the end of 1959 reached a total of $1,463,400, the Building Fund had passed $100,000, and estimated annual income from investments was about $56,000. The Americans Abroad Fee was raised from $525 to $595; the Winter Program student allowance from $12 a month to $14. (Only half of the students received allowance from AFS funds; the other half paid not only their own allowance but also international travel). The cost per student for the 1959-1960 program was approximately $670. The number of AFS offices around the world reached eighteen.

In his Annual Report in May, 1960, the Director General noted that the most important event of the year just past was the breaking of ground for the new building. He went on to mention several other important developments:

The last year has been marked by a new departure--namely the holding of 6 large regional meetings in this country. These were for the purpose of bringing together the Chapter Chairmen and members for discussions. They were held in Detroit, Milwaukee, Minneapolis, Amarillo, Santa Barbara, and Buffalo, and the combined attendance was very close to the 2,000 mark.

Besides these large meetings, there were a great many local ones, involving 15 to 20 Chapters, which members of the staff also attended.

Last July, the President again spoke to our students and emphasized his own belief that this program was so very important for our future hopes of peace.

Our relations with the State Department have continued excellent, and we shall again receive a grant of $60,000 from it for general administration and special travel purposes. A new bureau of the Department was formed last fall to include all cultural and USIS activities, and Robert H. Thayer (former Ambassador to Rumania) was named by the President as its first head. He had for a long time been a member of the AFS National Advisory Committee, though his present position precludes his service in such a capacity for the duration of his present appointment.

The only real problem we have is the non-growth of the Summer Program for the American Students, which is understandable to us but not to the local AFS chapters, and this is causing some concern in the field. The school program for American students is growing steadily, although necessarily at a slow pace.

The administration of AFS is in excellent hands. The Directors and Executive Committee have been very faithful and helpful. In the office we have found the necessary experienced leadership above the divisional heads--Mr. George Edgell, Miss Sachiye Mizuki, Mrs. Field, Miss Sally Howells, Mr. George Rock, and Mr. Robert Applewhite.

It has been a wonderful year. As we expand, more and more of the AFS membership come into the picture, especially the World War II members. This is so important to me, as this indicates that this current AFS program is a continuation and not a new project. That is why the new building is so important, as it symbolizes the continuing action of AFS in international relations.

And now all I can say is that each and every one of you will have the warmest welcome at 313 East 43rd Street--after September first.

The Annual Meeting of the Board of Directors on 23 June, 1960 was held at 313 East 43rd Street, "The future headquarters office of the corporation". The building would, however, not be completed for several more months, and the final disbursement as announced on 9 May, 1961 was $677,003. Of this cost $310,653 came from the Building Fund managed by Robert Applewhite, who was later to become Secretary of the American Field Service (in March, 1962).

The year 1960-61 brought AFS to the stage at which the Winter Program was leveling off in certain countries and areas while other countries continued to open up and grow. The development of the program seemed over the years to take the same course in all countries. It started with an individual or an organization interested enough to take the responsibility for selecting the initial group of students, often the Cultural Affairs Officer or some other United States Department of State person and sometimes a private individual.

As an example: Because of the interest of the State Department, AFS brought 6 students from Argentina in 1955-1956 and 4 the following year. The returnees worked with the CAO and the Centros Culturales on selection, and in 1957-1958 AFS brought 25 Argentines to the United States, then 32, and 43, and in 1960-1961 the number grew to 76. The returnees started the Summer Program in 1958 with 15 Americans and the School Program in 1960 with 9 placements.

As the entire Winter Program stood in 1960-1961 there were 1,847 students, of whom 69 percent, or 1,280, came from Europe, 237 from Latin America, 259 from Asia and the South Pacific area, and 64 from other countries, including the first 7 students from African countries.

In the Americans Abroad School Program for 1960-1961 there were 274 students, an increase of almost a hundred percent; the Summer Program in 1960 numbered 966 students. (Many countries had reached a saturation point apparently in the Summer Program, and it would be eight years before this number was surpassed.) The School Program, too, was destined to grow slowly. There is no doubt, however, that the quality of the programs continued to improve steadily in respect to the host families and students involved and in the program administration both in the United States and in other countries.

In January, 1961, Mr. Galatti for the first time presented a formal budget to the Board of Directors. As an historical document it is worth reproducing in full. (Like most of Mr. Galatti's reports, letters, and other communications, it is quite brief and unelaborated.)

Excerpted from the minutes of the 22 October meeting was the following
report:

Notes:

A. Americans Abroad expense had now reached 31% of total budget.
B. Office expenses here and abroad--23.8%.
C. Chapter fee for Winter Program is still $650.
D. 45% of allowance and travel is paid by parents. This, however, seems merely a bookkeeping device since total WP parental contribution amounts to $615,000, an average of a bit over $300 per family.
E. Americans Abroad family contribution of $595 is labeled "Communities."

On 8 February, 1961, came the final dedication of the new building at 313 East 43rd Street. The Reverend Norman C. Eddy, a former driver and a Trustee Member of AFS, conducted the dedication ceremony. Approximately four hundred and fifty attended the dedication and the following Open House, including twelve consuls general and numerous other consular representatives, business associates and Funding Members of the AFS.

After some months of use of the building Mr. Galatti would say:

Of course, the most important factor of the year has been the new building at 313 East 43rd Street. It has enabled us to increase the staff to 118 members so that we can properly administer the scholarship programs. It has also been a great joy to work in. The dormitories, although designed for incoming and outgoing students in the summer, have been occupied throughout the year and, I believe, are a force in keeping the interest of our American returnees, AFS ambulance drivers, and committee members.

The lounge has become a unique room with all its mementos, paintings and library and is creating an atmosphere of the past and present vitality of the AFS.

Every day we notice people standing to look up at Pierre Bourdelle's interesting and beautiful sculpture, and it's nice to have the AFS flag waving in the breeze.

In September, 1962, appointments to the Board of Governors included Mrs. Charles Bicking and Mrs. Hugh Kelleher, both of whom had been so effective in developing AFS chapters, the former in Western New York and the latter in the San Francisco area. Other appointments at the same meeting were Mr. W. Palmer Dixon, a most active and generous supporter, Mr. Isaac Patch, Jr., a brother-in-law of the late Piatt Andrew, founder of the Field Service, and Mr. Robert H. Thayer, long a friend of Mr. Galatti and a liaison between AFS and the Department of State. As a member of the Diplomatic Corps and a former Ambassador, Mr. Thayer was most effective in opening doors in official circles in Washington and in insuring a warm welcome for AFS representatives, particularly in the Middle East.

One cannot fail to note at this time, the death of Frederick W. Hoeing. Mr. Hoeing, in the Field Service in WWII and a great contributor to the success of the early days of AFSIS, was associated with the program in a meaningful way until his death.

"Fred Hoeing was one of the legendary figures of that era, with whom I had been very close, because he was the commander of the other company in North Africa and Italy. Fred was very active in this (Scholarship) program.

"He could stand this operation for six months each year. Fred would work intensively and loyally for Steve from about April until October, and then, just before he totally lost his mind, he would pack up, put his possessions in his car, and drive to a lousy motel on the north end of Hollywood Beach--or Miami Beach--and spend up to five months with his books. Then he'd come back to his apartment here in Tudor City, where I used to see him a lot. Here was a wonderfully able man, who was an enormous source of strength in those early days.

"I had worked with him very closely. He had been a trustee of Hampton Institute for some years when he died. I had asked him to join that Board when I was Chairman of it, and he was wonderfully active there.

"Fred had been an associate or assistant professor of history at Harvard and associate professor at the University of Rochester. He was a well-read and scholarly man, in addition to being a man of action and of a wonderful enthusiasm. A wise man and a great human being."(9)

The letterhead of AFSIS in 1962 is a fruitful source of historical facts as well as of a few oddities.

Interestingly, The Board of Governors was found to be illegal under the charter and by-laws and at a later time was, upon discovery of this fact, abolished with all due haste. The names of many of the "Governors" will be readily recognized as belonging to former or future Trustee Members and members of The Board of Directors. Worthy of note too is the name of Mrs. Frederick Madison as an Assistant Director on the staff though I could find nothing to indicate that she had ever been a "professional" in the sense that she had been on salary. She had always been a volunteer, though one who spent at least half of any year working in New York City or traveling abroad for AFS.

At the bottom of the official stationery appears a plug for the coming convention:

The reverse side of the paper bears some names both nationally and internationally known, as well as names mentioned several times in the course of this history:

Chapter XII: Growing Pains

Table of Contents