Compton was inaugurated on June 6, 1930, before several thousand guests assembled in MIT's Great Court. The Great Depression created significant new headwinds for the Corporation's ambitious plans for science investments. The same month, Gerard Swope announced the Technology Loan Plan, a plan to raise tuition and provide loan-based financial assistance to students in need, drawing contributions from
George Eastman,
Alfred P. Sloan Jr., and several members of the du Pont family.
Academic reforms Compton's first sustained effort was in the science departments. He recruited
John C. Slater, a theoretical physicist who had been an associate professor at Harvard, to chair the physics department, and brought
George Harrison from Stanford to lead experimental work. Slater reorganized the graduate program and helped recruit a new generation of theoreticians and experimentalists; when six National Research Council fellows chose to spend time at MIT in 1932–33, the department's changed reputation was evident. The opening of the George Eastman Research Laboratories in 1932, which Compton had helped design to minimize vibration and foster contact between faculty and students, gave physics and chemistry a shared home for this work. Compton's first encounter with
Vannevar Bush was a confrontation. In 1931, Compton imposed a one-day-a-week limit on outside consulting and required faculty to deposit half their consulting income into a Professors' Fund intended to raise salaries and discourage work unrelated to the Institute's mission. Bush, whose own consulting arrangements predated the policy, charged into the president's office and announced he was leaving MIT. Compton offered an exemption; Bush refused it. "Your whole damn fool plan," he said, "will dissolve in a welter of exceptions." Bush did not leave MIT. He found Compton's willingness to hear him out disarming, and Compton recognized in Bush exactly the blunt, operationally minded partner he needed. After the October 1931 death of his predecessor,
Samuel Stratton, Compton revived the dormant vice presidency. Bush suggested himself for the job. Compton, seeing their opposite temperaments as complementary, agreed, and the executive committee approved Bush as vice president and dean of engineering in May 1932. One colleague described the partnership as a balance of contrasts: Compton was diplomatic and inclined to give everyone the benefit of the doubt, while Bush brought shrewd tactical judgment and did not mind making enemies. Together they divided responsibilities, with Compton overseeing the science departments, foundations, and government relations, and Bush running the engineering school and handling patent matters. At the same time, Compton moved quickly to reorganize the Institute's administration. He proposed grouping MIT's departments into three degree-granting schools:
Engineering,
Science, and
Architecture, alongside a Division of Industrial Cooperation and a Humanities division. A Graduate School dean would oversee admissions and degree requirements without direct curricular authority. An administrative council of the president, vice president, deans, and directors would meet weekly. The intent, as Compton framed it, was to bring science and architecture into parity with engineering, helping define "a fine university...in which a great engineering school is one important part, but not the whole." Compton sought to expand MIT's research funding beyond industrial contracts. He persuaded the Rockefeller Foundation, in a significant departure from its standard policy, to provide MIT a general research fund of $170,000; total annual foundation support nearly tripled from $37,000 in fiscal year 1936 to $111,000 by 1939. In engineering, he appointed research-oriented faculty to department chairs, and in 1938 recommended to Swope the elimination of Mining Engineering, Electrochemical Engineering, and Sanitary Engineering as programs he considered obsolete.
Industry relationships Compton and Bush moved to centralize MIT's relationship with industry. The Division of Industrial Cooperation and Research, which had coordinated industrially sponsored work since 1920, was renamed the Division of Industrial Cooperation in 1932 and placed under presidential authority. Where department heads had previously negotiated contracts with sponsors and notified the administration only afterward, every research agreement now required approval at the top. Compton and Bush also established MIT as one of the first major universities to engage in
patent licensing. The Corporation endorsed a formal patent policy in 1932, over the objections of industrial members who considered it improper for an educational institution to hold patents. A patent committee was created in 1933, and in 1937 an agreement with the
Research Corporation transferred patent administration to an outside body, shielding MIT from accusations of competing with industry. Swope himself had opposed the patent policy, a sign that Compton was willing to act against the interests of those who had helped recruit him. When
General Electric sought exclusive licensing rights to
Robert Van de Graaff's
high-voltage generator as a condition of further collaboration, Compton refused outright. The Professors' Fund was abandoned within a few years, undone by faculty opposition, but Compton regarded it as having established the principle that the faculty's first obligation was to the Institute. Separately, in the fall of 1932, as the Depression deepened, Compton announced a salary reserve plan withholding 10 percent of each professor's salary above $500 and depositing it into an emergency pool. When conditions improved the withheld funds were returned intact. By the mid-1930s, the results of Compton's reforms were visible enough that MIT was invited to join the
Association of American Universities, whose membership represented the leading research universities in the country. Graduate enrollment grew substantially, a school of science was consolidated, and the ratio of research to teaching activity shifted in favor of the former. On the eve of the Second World War, however, the transformation remained incomplete. Roughly 80 percent of MIT students were still enrolled in the engineering school, and the close relationship with industry persisted. Compton and Bush had laid the institutional foundations for a science-based technological university, but the full realization of that vision awaited federal patronage on a scale that the Depression had made impossible.
Advocacy for science funding The Depression thrust Compton into a new public role. As industries shed workers and the
Technocracy movement blamed scientific progress for unemployment, he mounted a counterargument: that science, rather than displacing labor, generated new industries and new employment. In a 1933 essay rebutting the Technocrats, he argued that if civilization were destroyed, the fault would lie in human stubbornness rather than in the machines humans had made. Writing in the
New York Times Magazine in December 1934, he put the argument in terms that would circulate for years: new industries, he wrote, were "like babies — they need shelter and nourishment, which they take in the form of patent protection, financing, and the chance of reasonable profits. But, before all, they need to be born, and their parents are science and invention." Throughout the mid-1930s he maintained an output of public addresses and essays in
Vital Speeches of the Day,
The Atlantic, and
Science, consistently framing research expenditure as investment rather than a luxury in times of austerity. Compton also worked to organize American science for advocacy. In 1931, he helped found the
American Institute of Physics and served as chairman of its governing board until 1936. The AIP originated as an attempt to reduce publishing costs by centralizing the editorial operations of several physics societies. It became quickly became "a trade association in defense of science and all its works," bringing the separate societies into a federation that spoke collectively for the discipline. In July 1933, President Roosevelt created the
Science Advisory Board by executive order, on the initiative of the geographer
Isaiah Bowman and with the backing of Agriculture Secretary
Henry Wallace. Roosevelt appointed Compton chairman. The Board received no federal funds even for its own operating expenses and was given a two-year life, but Compton set to work on a substantive program. By December 1934 he had brought the Board to endorse a proposal to the President: $75 million over five years for research, primarily in universities, and a permanent scientific advisory body to assist the Bureau of the Budget in reviewing the programs of government technical agencies. The proposal insisted that the distribution of funds be insulated from political interference; only the scientific merit of projects should govern the allocations. This placed Compton in conflict with New Deal planners who wanted any research program tied to the social sciences and, ultimately, to immediate relief work. Harold Ickes forwarded the proposal to the
National Resources Board, whose members—
Wesley Mitchell,
Charles Merriam, and Roosevelt's uncle
Frederick Delano—regarded the country's problems as social and economic before they were technological, and found Compton's scale of request "staggering." When Roosevelt conditioned any science appropriation on ninety percent of the spending going to workers drawn from relief rolls, the program was effectively blocked. The Board went out of business on schedule in 1935. Compton, by his own account, felt like a man who had bet on the wrong horse. The proposal itself was not forgotten: Compton's plan for a government science fund, administered by scientists and insulated from political control of programmatic purpose, reappeared virtually intact a decade later in
Vannevar Bush's
Science, The Endless Frontier, the report widely credited as the founding document of the
National Science Foundation.
New England and venture capital With federal advocacy stymied, Compton turned after 1936 to a regional strategy. New England's
textile industry was in structural decline, and within the
New England Council there was growing recognition that the universities and research laboratories concentrated around Boston represented an asset few other regions could match. In 1939, at Compton's suggestion, the Council formed a New Products Committee to examine how science might compensate for the region's manufacturing losses. The committee brought together Compton, the Harvard Business School professor
Georges Doriot, the Vermont manufacturer
Ralph Flanders, and the investment trust president
Merrill Griswold. Its November 1940 annual meeting concluded that while capital for new ventures existed, what was lacking was the organizational capacity to evaluate technical opportunities rigorously enough to give investors reasonable assurance. The that pointed toward the kind of institution, a professional venture capital fund, that Compton and his colleagues would build after the war. A parallel experiment, Enterprise Associates, took a more direct approach, pooling $300,000 from private stockholders to finance promising research projects. Compton and Griswold participated. When Germany's invasion of France in May 1940 prompted most participants to withdraw from the group's first commitment, the episode exposed a structural problem: an organization with only enough money to locate and study opportunities, then pass the hat for backing, was hostage to events outside its control. Compton and Griswold concluded that any workable venture firm would need its own capital, committed in advance. The war interrupted these efforts before they could be resolved, but the core network was assembled; Compton would reconvene it in 1946.
Health Although he appeared robust, Compton's commitments strained him. He had arrived at MIT in 1930 nursing a stomach ulcer, managed by an easygoing disposition and a regimen of midmorning milk. In 1936, after the peak stress of the Depression-era reforms and the Science Advisory Board struggle, he suffered what appeared to be a mild stroke. His doctors traced the episodes to arterial hardening worsened by cigar smoking, a habit he had acquired in Paris during the First World War. Friends grew accustomed to watching him swear off cigars and then resume. In the fall of 1937, Vannevar Bush proposed a remedy: both men should find country retreats where they could spend weekends away from Cambridge. Bush drew a circle on a map around Boston, calculated distances and prices, and turned up a house near
Jaffrey Center, New Hampshire. Compton bought it within two weeks, and the family used it as a weekend escape through the war years. ==World War II==