THE most serious crisis faced by the University during the administration of President Angell, and probably the most serious during its entire history, was the affair which has come to be known as the Douglas-Rose controversy. At their meeting in October, 1875, the Regents unanimously adopted a resolution requiring the director of the chemical laboratory to render quarterly accounts of all money received for the sale of chemicals to students, and further that duplicate vouchers be presented, "as in all other departments, covering all payments, in accordance with the existing law." In the same month, Professor Silas H. Douglas,* 1.1 Director of the Chemical Laboratory, reported to President Angell that he had discovered a deficit in the accounts of the laboratory. Investigation by President Angell and Professors Douglas and A. B. Prescott revealed that a considerable amount of laboratory-fee money paid by students had never reached the treasurer of the University. According to the procedure which had been followed in the handling of the laboratory accounts, student fees were paid to Preston B. Rose, Assistant Professor of Physiological Chemistry, who turned them over to Professor Douglas; Douglas, in turn, transferred them to the Regents of the University. The deficit was thus obviously chargeable to Assistant Professor Rose, to Professor Douglas, or to them jointly. For the year 1874-75, the first for which records were examined, the deficit was found to be $831.10.
When Rose was confronted with the findings of this examination, he agreed to pay a portion of the amount of the deficit. In November, 1875, he paid the remainder, $645, having raised the money by placing a mortgage upon his house. When further investigation revealed discrepancies in the laboratory accounts for earlier years, President Angell reported the fact to the executive committee of the Regents. Two members of the committee immediately visited Ann Arbor, called Rose before them, and requested that he furnish the University with security against loss. He accordingly gave a trust deed of his house to the treasurer of the University.
A special investigating committee of three Regents reported on December 21, 1875, a deficit over a period of several years amounting to $4,718.62. This committee further reported that it had at first had full assistance from Rose during its investigations, but that after the news of the deficit had reached the public, he had declined to give further aid. Immediately following the presentation of this report to the Regents, Rose read a statement to the Board describing the bookkeeping