Introduction

Inasmuch as the law requires that the Managers respect and fulfill the Hersheys’ intent, we should measure the success of the Hersheys’ philanthropy the way we know M.S. measured the value of philanthropy. M.S.’ sole measure of the value of the Hersheys’ philanthropic efforts was the amount of good it does. Thus, the success of the Hersheys’ philanthropy should be measured in terms of the benefits of their philanthropy to their intended Beneficiaries. When measured from this perspective, the Hersheys’ philanthropy has no equal. The residential, educational and other related facilities, and employees that directly serve the Resident Beneficiaries and the Non-Resident Beneficiaries, which comprise an important component of the School, was established according to the Hersheys’ standard for measuring the value of philanthropy. Based on research, the Hersheys’ Philanthropic Standard for measuring the value of their philanthropy is to measure the value of their philanthropy based solely on the amount of good it does for each Current Beneficiary in the context of such beneficiary’s unique abilities, interests, and commitment; it is not measured by the cost to the Trust of the benefits delivered to, or received by, such beneficiary. The Hersheys’ Philanthropic Standard helps to explain why the school, as a material component of the School, is just as unique as the School.

 

The unique attributes of the school include the school, the School Family and Milton Hershey’s Alumni Association; each is unique and plays an important role in the effectiveness and success of the Hersheys’ philanthropy, measured by the Hersheys’ Philanthropic Standard. 

 

The “school”

As we describe the unique attribute of the school, we first distinguish it from the School. By way of clarification as one seeks to understand the school, keep in mind that:

(1)   the School (a) includes, among other things, the school and the “ideal community,” and (b) is first and foremost a children’s home to be operated in perpetuity for Current Beneficiaries: dependent, at-risk children, who are in need of substantially year round institutional care by a children’s home such as that intended by the Hersheys for the full development of each Current Beneficiary as a whole person according to such person’s unique abilities, interests, and commitment, and

(2)   the “school” is the residential, educational and other related facilities, and employees that directly serve the Resident Beneficiaries and the Non-Resident Beneficiaries, which comprise an important component of the School. 

Because of the nature of the school, it possesses those attributes of the “School” that derive primarily from the School’s various children’s home qualities. Nonetheless, in light of the relationship between the School and the school as manifested in the Deed of Trust, the attributes of the school radiate throughout the School by virtue of the School’s and the Managers’ overall mandate under Milton Hershey’s Deed of Trust.

 

 

It is a Children’s Home

The primary objectives of the Hersheys in executing the Deed of Trust are (1) to operate the Hersheys’ Children’s Home in perpetuity for (2) the full development of the whole person admitted to such home. The trust corpus is held “in trust for a permanent institution for the residence and accommodation of poor white male orphans, and the requisite teachers and other persons necessary in and about such an institution and the maintenance, support and education, as hereinafter prescribed of such orphans.” Such “permanent institution” is the School. The School, among other things, includes the “school” and Hershey, Pa. (the “ideal community”) – the ideal community for and to be run by orphan boys. In the words of the Honorable Judge Warren G. Morgan:

This was no conventional school that the Hersheys had in mind. […] Indeed it is not merely a school at all, but […] a home […]. The vision of Milton and Catherine Hershey was to relieve poor children from all of the conditions of poverty; to undertake their total care and upbringing.^[1]  […]

The specific intention of the Hersheys, as plainly stated in the Deed of Trust, was to remove children from an environment of poverty and to place them in a residential setting where they would be provided all of the necessities of food, shelter, clothing and health care together with moral and ethical guidance as well as class-room education.^[2]

The permanent institution founded and endowed in perpetuity through the Deed of Trust was, and remains, first and foremost the Hersheys’ Children’s Home.

 

Before founding the School, M.S. taught himself by visiting a number of orphan institutions. He was heavily influenced by the fact that these schools lacked a truly loving, home atmosphere, and concluded that his boys must grow up within a real home surrounded by loving adults. Following the creation of the Trust in 1910, for the next 35 years he was able to demonstrate the Hersheys’ intent as reflected in the Deed of Trust and the various Indentures executed on behalf of his boys.  In his mind, M.S. believed that he made it clear as to the Hersheys’ intent and how the School should be operated following his death.

 

Picture 3: Milton S. Hershey, circa 1905 and Catherine S. Hershey, circa 1910 [3]  Milton S. Hershey and his wife, Catherine S. Hershey, near the time they established The Hershey Industrial School Trust.
Picture 4:  George Copenhaver, the First Superintendent of The Hershey Industrial School, and  Prudence Copenhaver, George Copenhaver’s Wife [4]  Milton Hershey believed that credit for the success of the lives of the HIS students was due to the loving and thoughtful care of George and Prudence Copenhaver, who served as real parents to all of M.S.’s boys.

 

 

The Guiding Principles

As the Hersheys designed the School, they had the following guiding principles in mind:

·         Eliminate any notion of institutional life and charity.

·         The Current Beneficiaries must grow up with a feeling that they have a real home, among adults who love them, and the Hersheys’ Children’s Home Campus is to be rural and agrarian providing the Current Beneficiaries with a home-life that is in wholesome surroundings, keeping them close to nature, and teaching them to do productive chores in the development of their character, minds, and bodies. 

·         With respect to each Current Beneficiary, the overall objective is the full development of the whole person, both as a child and as an adult, according to such person’s unique attributes (that is, tastes, capacity, intelligence, and adaptability), interests, and commitment.

·         Give as many boys as possible real homes, real comforts, education, and training, so they become useful, happy citizens.

·         Some of the Current Beneficiaries would in time run the School, including the town of Hershey.

·         When measuring the value of their philanthropy one must apply the Hersheys’ Philanthropic Standard, which is to measure the value of their philanthropy based solely on the amount of good it does for each Current Beneficiary in the context of such beneficiary’s unique abilities, interests, and commitment.

 

Thus, the intent of the Hersheys in this regard can be summarized as the cornerstones of the Hersheys’ philanthropy, which are as follows:

·         Fully developing the whole person according to such person’s unique attributes (that is, tastes, capacity, intelligence, and adaptability), interests, and commitment;

·         Eliminating charitable institution, “communal” and all other attributes that might serve to limit the development of each individual and their respective self-image and confidence;

·         Providing the correct environment in which to best accomplish these first two objectives;

·         Building an institutional family – the School Family – to which each student becomes a member for life for the same reasons that healthy biological families are beneficial to its family members; and

• When measuring the value of their philanthropy one must apply the Hersheys’ Philanthropic Standard, which is to measure the value of their philanthropy based solely on the amount of good it does for each Current Beneficiary in the context of such beneficiary’s unique abilities, interests, and commitment.

 

 

The Nature of the Child Admitted & Indenturing

From 1910 through 1945, The Hershey Industrial School admitted as beneficiaries of the Trust only those who satisfied the requirements for admission to the School under the Deed of Trust. Here are the “Requirements for Admission” under Milton Hershey’s Deed of Trust:^[1]

Consistent with the operation of the Hersheys’ Children’s Home in perpetuity for the full development of the whole person admitted to such home, only a child determined at the time of admission to be a child:

(1)               who is dependent to the extent of not having sufficient means to properly support and educate such person (that is, such child is determined to be in need of the institutional care of the Hersheys’ Children’s Home),

(2)               with hereditary traits, physical and mental, that fall within expected and accepted norms for a child that is dependent or in need of the institutional care of the Hersheys’ Children’s Home,

(3)               that does not suffer from physical ailments that would make it inexpedient for such person to continue such person’s studies and training at the Hersheys’ Children’s Home,

(4)               with character traits and observable behavior that fall within expected and accepted norms for a child that is dependent (that is, a child who is in need of institutional care),

(5)               with at least a normal or average intelligence quotient and not otherwise incompetent to learn, or to master a trade, 

(6)               likely to benefit from the Hersheys’ Children’s Home’s efforts to fully develop such person as a whole person,

(7)               born in the United States of America,

(8)               who is subject to Indenturing, and

(9)               who is

(a)               from November 15, 1909 through October 29, 1933, a white male between 4 and 8 years of age whose father is dead, or

(b)               from October 30, 1933, a white male between 4 and 14 years of age whose father or mother is dead.

In the context of admission of a new beneficiary, “normal” means normal under the circumstances of being a poor child who has lost one or both parents and should allow for behavioral, emotional, and educational disruptions ordinarily associated with dependency and likely to be eliminated or greatly reduced if admitted to the School.

When a child suffers a broken home as a result of becoming a dependent, full- or half- biological orphan, such orphan experiences a void which is not easily filled. In the absence of the School, dependent children are left to fulfill their needs as best they can under the guidance of hundreds of persons – social workers, foster parents, government workers, teachers, judges, relatives, administrators, ministers, and others with similar qualifications. Unfortunately, these relationships are not sufficient to ensure the individual child’s full development. These relationships often prove insufficient for a number of reasons. Sometimes they do not last long enough. Where the child is without a healthy, loving family, these relationships may not adequately address such child’s need for a healthy, loving family. Substitution of these short term or limited scope types of relationships in cases where the child needs a healthy, loving family, stable environment and opportunities to succeed generally will lead to this child growing into an adult who achieves much less than his full potential or worse, experiencing any number of undesirable outcomes for which he is at risk as a dependent child. 

 

To be admitted to the School under Milton Hershey’s Deed of Trust, an otherwise qualifying orphan had to be subject to Indenturing. In other instances where indenturing was used in the context of serving the poor, those uses were not always developed with the best interests of the child in mind. Unlike these other instances, with which the Hershey context should not be mistaken to possess any similarity, the use of indenturing to be admitted to the School had the best interests of each child in mind; this is because the Hersheys’ Philanthropic Standard for measuring the value of their philanthropy is to measure the value of their philanthropy based solely on the amount of good it does for each Current Beneficiary in the context of such beneficiary’s unique abilities, interests, and commitment.

 

Thus, the expressed intent under the Deed of Trust was that no otherwise qualifying orphan could, under any circumstances, be admitted to the School until after the parent or guardian gave the Mangers adequate power to prevent said parent or guardian from interfering with or withdrawing the orphan(s) from the school.  In other words, once the orphan became a Current Beneficiary, the Managers became responsible to act in the best interests of each Current Beneficiary and consistent with this responsibility it was expressly provided that relatives, friends, and others would not interfere with or withdraw any orphan from the school.  Moreover, the Managers were to have adequate power to enforce every proper restraint in relation to each orphan.  Thus, the Managers were to have complete custody and control of each Current Beneficiary to the exclusion of all others.  This was the basis upon which the Hersheys authorized The Hershey Industrial School and the Trust, through the Managers, to admit to the School a qualifying orphan and thereby become a Current Beneficiary.  The form of Indenture used also reflects the requirements of Paragraph 15.  The form of Indenture provides greater insight into the nature of the legal relationships that were to be established as required by Paragraph 15. Each Indenture is a contract between the Managers on the one hand and the subject orphan’s parent, guardian, or other competent authority on the other.

Each Indenture establishes the legal relationships amongst and between the Managers, each orphan’s parent, guardian, or other competent authority, and the minor orphan.  Each Indenture also alters the preexisting relationship between each orphan’s parent, guardian, or other competent authority, and such orphan.  Once an Indenture had been executed and the minor orphan admitted to the School, the relationship between the Managers and such Current Beneficiaries was further modified and enhanced through the Deed of Trust.  Each Indenture remained the sole governing instrument binding upon the orphan’s parent, guardian, or other competent authority, and the Managers to evidence their contractual relationship.  However, each orphan not only derived benefit from the Indenture as an intended third party beneficiary, but also upon becoming a Current Beneficiary following admission to the School derived additional benefits under Milton Hershey’s Deed of Trust.

By virtue of the Managers entering into an Indenture, each Current Beneficiary comes to have a direct relationship with the Managers, and through a combination of this relationship and admission to the School also forms a direct relationship with the Trust.  Considering that (1) under each Indenture all parties intended to benefit its subject orphan under (a) his Indenture and (b) the Deed of Trust, (2) each Indenture contemplates that the orphan is a party by virtue of the execution of the Indenture by an adult on behalf of the minor orphan; and (3) the language of Milton Hershey’s Deed of Trust to the same effect that the Trust is for their benefit, there can be no doubt but that the Current Beneficiaries are the beneficiaries of the Trust. 

To be admitted to the School under Milton Hershey’s Deed of Trust, an otherwise qualifying orphan had to be subject to Indenturing.  Indenturing was substantive in nature and modified certain legal relationships.  It means a new legal relationship was formed between each minor orphan, the Managers and such orphan’s parent, guardian, or other competent authority and evidenced by an Indenture, pursuant to which:

(1)               the minor orphan’s parent, guardian, or other competent authority releases and relinquishes to the Managers the “custody and control of” such orphan at all times such orphan is a minor – such that

(a)               said orphan is “to dwell with and serve” the Managers and “to be under their exclusive custody and control;”

(b)               said orphan is to “faithfully, honestly, and obediently serve the said Managers and conform to all their rules and regulations with reference to residence, studies, work and duty, and all other rules and regulations established by the Managers, their executive officers, or others by them appointed;” and

(c)                “the intent of this release being to enable the Managers to enforce in relation to the said orphan every proper restraint, and to prevent relatives, friends, or others from interfering with or withdrawing the said orphan from the school;” and

(2)               the Managers as a fiduciary undertake, among other things therein provided,

(a)               to “teach and instruct, or cause to be taught or instructed, the said orphan as set forth in the deed founding and endowing the school, and will keep and maintain the said orphan during the period aforesaid;”

(b)               “in their discretion, before or after the arrival of the said orphan at the age of eighteen years, provide for his further education at some other school, college, or university;” and

(c)                this additional obligation “The home provided for the said orphan by the Managers is situated at Hershey, Dauphin County, Pennsylvania, and that will be his residence,”

in each case at all times the orphan remains a minor which undertakings are also set forth in the Deed of Trust as a continuing obligation of the Trust until fulfilled in accordance with the Deed of Trust or in the case of clause (2)(c) above in accordance with such Current Beneficiary’s Indenture.

The legal document entered into as evidence of the relationship required for Indenturing is referred to as an “Indenture.” If the child suffers an “Orphan Termination Event,” the Managers may terminate the Indenture and the contracting parent, guardian, or other competent authority “agrees to immediately assume the charge and care of the said orphan” and the undertakings of the Managers cease. For purposes of Paragraph 16 of Milton Hershey’s Deed of Trust, such Orphan no longer merits remaining at the School until they reach the age of 18. Note that Paragraph 21, which requires orphans to leave the school at age 18 and to cease to receive the benefits of the school, does not require them to leave the School (which includes the “ideal community” or Hershey, PA) nor to cease receiving benefits under the Deed of Trust or their respective Indenture (except to the extent such benefits are to be received by being at the school).

Though each Indenture is a contract with a finite term, the maximum term of which would be 17 years from a Scholar’s 4^th birthday to his 21^st birthday, assuming the longest period of time one could be a minor, there are some benefits that by their very nature continue even following the expiration of such Indenture.  The Indenture is entered into by parties who are able to contract – the orphan’s parent, guardian, or other competent authority and the Managers.  This must be the case at all times such orphan is not able to contract on his own in order to clearly shift responsibility to the Managers and to restrict that which such orphan’s parent, guardian, or other competent authority could do with respect to such orphan once he is admitted to the School.  Nonetheless, such orphan is an intended third party beneficiary of his Indenture and a party through the execution of such agreement on the minor’s behalf by an authorized adult and the Managers.  In this context, let’s discuss an example of the benefits that by their very nature must continue beyond the stated term of an Indenture, keeping in mind that the Indenture is necessary at all times the Current Beneficiary is a minor but not necessary once the Current Beneficiary is an adult.  Thus, the stated term of an Indenture is up to the date on which the subject Current Beneficiary turns 21 years of age.    

An example of benefits that by their nature must continue beyond the stated term of an Indenture is the obligation, or undertaking, to provide a “home” that includes providing his “residence.” This obligation has at least two attributes.  The first – its residential attribute – is clearly referenced as a separate matter and contemplated as part of providing a home.  However, there must be more to the attribute because there is a reference to providing a home which is to be his residence.  If the reference to providing a home were not intended to mean more than his residence, the Indenture would have just said residence.  Moreover, the Indenture contemplates that the Current Beneficiary’s residence can be changed, while his “home” is always to be “situated at Hershey.”  Thus, as third party beneficiaries of, and a party to, their respective Indentures, the Managers, on behalf of the School, became obligated to provide both Orphans and Scholars: (a) a residence, and (b) a home, including (i) the social unit formed by a family living together (that is, one’s close family and self), (ii) a place to which one intends to return, and (iii) as one grows older, a place of origin and emotional attachment.  The School Family results from such promise to provide a home, and is a core component of the School.  Moreover, the Managers, again acting through its agents pursuant to these trust obligations which originated, in part, under the Indentures, manifested related undertakings or responsibilities for the further development and continued excellent health of the School Family by setting forth responsibility for (1) keeping in touch and corresponding with, keeping a close relationship with, assisting in procuring employment for, and providing other necessary assistance to, all Former Students and (2) looking after the general welfare of all Former Good Students, Former Commendable Students and Original Alumni Association Members, as well as (3) looking after the general welfare of those who were formerly students at The Hershey Industrial School and left there with a good record.  Collectively, we refer to these as the “Trust’s School Family Obligations.”

In other words, the Trust’s School Family Obligations give rise to “School Family Benefits,” which means, in the case of each Current Beneficiary, the benefits derived from being provided a “Home.” Providing a Home and School Family Benefits to those who are admitted to the School is fully in accord with the high Hersheys’ Philanthropic Standard. The following, Diagram 11: Relationships Resulting from Indenturing, illustrates the relationships resulting from Indenturing:

 

 

 

 

 

 

Beneficiaries of the Trust

Each person who satisfied the Requirements for Admission, is admitted to the School and receives, or is entitled to receive, benefits from the Trust either because the person (i) has not been discharged, (ii) has been discharged but continues to receive, or is entitled to receive, benefits from the Trust because the person is a Scholar whose Scholar Education Completion Date has not occurred, or (iii) is a Former Student receiving School Family Benefits is a “Current Beneficiary.”  A person who is able to satisfy the Requirements for Admission, but is not a Current Beneficiary, is a “Contingent Beneficiary.”  All Contingent Beneficiaries and Current Beneficiaries constitute the “Beneficiaries” of the Trust as a whole.  There are no other beneficiaries of the Trust outside those two groups, other than pursuant to the legal fiction that the Attorney General of the Commonwealth of Pennsylvania is a beneficiary of the Trust so as to ensure consistent enforcement of the Deed of Trust.

The following table sets forth the various groupings of beneficiaries of the Trust:

 

Table 1:  Beneficiaries of the Trust

 

Beneficiaries of the Trust
Term	Meaning
	Attorney General, Current and Contingent Beneficiaries
Beneficiaries	All Contingent Beneficiaries and Current Beneficiaries constitute the “Beneficiaries” of the Trust as a whole.  There are no other beneficiaries of the Trust outside those two groups, other than pursuant to the legal fiction that the Attorney General of the Commonwealth of Pennsylvania is a beneficiary of the Trust so as to ensure consistent enforcement of the Deed of Trust.
Attorney General	Pursuant to the legal fiction that the public is the beneficiary of a charitable trust, the Attorney General as the chief legal officer of the Commonwealth of Pennsylvania is responsible for the enforcement and protection of the Trust, as the protector, supervisor, and enforcer of charitable trusts generally.
Contingent	A person who is able to satisfy the Requirements for Admission, but is not a Current Beneficiary.
Current	Each person who satisfied the Requirements for Admission, is admitted to the School and receives, or is entitled to receive, benefits from the Trust either because the person (i) has not been discharged, (ii) has been discharged but continues to receive, or is entitled to receive, benefits from the Trust because the person is a Scholar whose Scholar Education Completion Date has not occurred, or (iii) is a Former Student receiving School Family Benefits.
Resident and Non-Resident Beneficiaries
Resident		Each Current Beneficiary who is receiving the education provided directly by the School, as well as receiving food, clothing, lodging, health services, physical training, exercise, and recreation directly from the School and lives on the Hersheys’ Children’s Home Campus.
Non-Resident		Each Current Beneficiary who no longer lives on the Hersheys’ Children’s Home Campus and either (a) has received his Direct Education and now is pursuing, or is going to pursue, the part of his mandated education that is provided through other schools, colleges, and universities and not by the School  or (b) is receiving only School Family Benefits.

 

Beneficiaries of the Trust
Term	Meaning
Orphans and Scholars
Orphan	Each Current Beneficiary who is not a Scholar, which would include any Current Beneficiary who, after repeated attempts are made to change the attitude of such person so that the Trust can help, is nonetheless: a)       not worthy either because of such person’s (i) unwillingness to apply themselves or (ii) nasty desire to break the rules of the school, or b)       not demonstrating sincerity of purpose in the program which such person is undertaking, or c)       more of a hindrance than a help and does not, and will not, cooperate in taking what the Trust has to offer, or d)       a person who does harm and will accept no good. Generally, an Orphan is a child who became a Current Beneficiary, but failed to evolve into a Scholar.
Scholar	Each Current Beneficiary who is doing his best to take full advantage of the opportunities presented to such person through the Trust. It is implicit in the terms of the Trust and each Indenture that it is the responsibility of the Managers to exercise all reasonable care to cause each Orphan to develop into a Scholar.

 

 

 

Benefits Under MS' Deed of Trust & Indenture

The various groupings of Beneficiaries set forth in the previous section become relevant in different contexts.  For instance, financial planning by the Trustee and the Managers should consider many things, including Current Beneficiaries, Contingent Beneficiaries, and Scholar Additional Education.  Each group requires careful financial planning and decisions that are in the best interest of each Current Beneficiary.  The Managers are required to make distinctions between Scholars and Orphans.  These groups receive different benefits under Milton Hershey’s Deed of Trust.  Here we focus on the additional benefits to be derived by Scholars versus Orphans.

Below is a breakdown of the various groupings of benefits that the Current Beneficiaries receive under Milton Hershey’s Deed of Trust and their Indentures:

 

Table 2:  Capital for Success: Basic Benefits, Education, Character, Self-Reliance, & Family

 

Capital for Success: Basic Benefits, Education, Character, Self-Reliance & Family
Term	Meaning
Basic and School Family Benefits:
Basic	The food, clothing, lodging, health services, physical training, exercise, and recreation contemplated by the first sentence of Paragraph 17 of Milton Hershey’s Deed of Trust, as well as a Minimum Education and School Family Benefits.
School Family	The benefits derived from being provided a “Home,” which Home includes: (a) a residence at the Hersheys’ Children’s Home Campus while a Resident Beneficiary, (b) being a part of the social unit formed by a family living together  – that is, the “School Family,” (c) while a Non-Resident Beneficiary, a place to which one intends to return, and (d) such Current Beneficiary’s place of origin and emotional attachment, as well as being part of the School Family as it further develops and enjoys continued excellent health through the Managers and other members of the School Family (1) keeping in touch and corresponding with, keeping a close relationship with, assisting in procuring employment for and providing other necessary assistance to, all Former Students and (2) looking after the general welfare of all Former Good Students, Former Commendable Students and Original Alumni Association Members, as well as (3) looking after the general welfare of those who were formerly students at The Hershey Industrial School and left there with a good record.
Education
Minimum	Until such person reaches 18 years of age, the Vocational, Agricultural, and Academic Education contemplated by Paragraph 17 of Milton Hershey’s Deed of Trust designed to fit such person for the trades such person is to learn, and a useful occupation in life.
Character	The moral and religious training, training to speak the truth at all times, and training in the habits of economy and industry contemplated by Paragraph 18 of Milton Hershey’s Deed of Trust.
Self-Reliance	Both before and after leaving the School, programs designed to ensure each Scholar’s effective and healthy assimilation into society in preparation for becoming self-reliant, provided directly by the Trust and in cooperation with the Alumni Association (e.g., mentor, transition, placement, and other programs).
Vocational, Agricultural, and Academic	Both before and after leaving the School, the education contemplated by Paragraph 17 of Milton Hershey’s Deed of Trust, which is instruction in the several branches of a sound education, agriculture, horticulture, gardening, such mechanical trades and handicrafts as the Managers may determine, and such natural and physical sciences and practical mathematics as in the opinion of the Managers it may be important for the Orphans to acquire, and such other learning and science as the tastes, capacities, and adaptability of the several Scholars may merit or warrant, to fit themselves for the trades they are to learn, and a useful occupation in life, bearing in mind that the main object in view is to train young men to useful trades and occupations, so that they can earn their own livelihood; one of the objects of the School being to teach and instruct in agriculture, horticulture, and gardening, each Orphan admitted to the School shall at such time or times as may be required, do such work upon the farms as may suit his capacity and ability, including vocational, agricultural, and academic.
Direct	Education which is provided directly by the School.
Indirect	Scholar Mandated Education that is provided through other schools, colleges, and universities.
Scholar Education
Core	Such Vocational, Agricultural, and Academic Education, Character Education, and Self-Reliance Education as is sufficient such that, on a self-reliant basis, such Scholar is when he leaves the School on the completion of the period for which he is to remain, able to support himself in some occupation or mechanical trade, moral, religious, truthful, financially responsible, and industrious.
Additional	Such additional education (including at other schools, colleges, or universities) as is sufficient such that, on a self-reliant basis, such Scholar is able to support himself in some occupation or mechanical trade determined by his unique tastes, capacity, intelligence, and adaptability.
Mandated	In the case of each Scholar where (i) there is sufficient income for the purposes under Paragraph 21 and (ii) the Scholar’s unique tastes, capacity, intelligence, and adaptability do merit going to another school, college, or university whether as part of, or upon completion of, his Minimum Education, the education through other schools, colleges, or universities required to provide such Scholar his Scholar Core Education and Scholar Additional Education, and otherwise, the education required to provide such Scholar with his Scholar Core Education, which education in each case listed above is mandatory and must be determined based upon such Scholar’s individual taste, capacity, intelligence, and adaptability and must be provided through Direct Education, Character Education, Self-Reliance Education and Indirect Education, as the case may be; that is, during and following such Scholar’s Minimum Education, the Managers must exercise all such other requisite efforts (e.g., mentoring, transition, placement and other programs directly and in cooperation with the Alumni Association, and so long as there is sufficient income from the Trust, education through other schools, colleges, or universities) to provide the maximum assurance that each Scholar becomes self-reliant and is successful in life.
Capital for Success
Basic	Basic Benefits are referred to herein as “Basic Capital for Success.”
Scholar	In the context of each Scholar, such Scholar’s Basic Capital for Success and Scholar Mandated Education.

 

While these are the beneficiaries and basic categories of benefits under Milton Hershey’s Deed of Trust, there are certain considerations that need to be made before one can determine the benefits a specific Current Beneficiary is to receive. Two of the primary determinates are by reference to the individual Current Beneficiary. The first determination is fully within the beneficiary’s control. It is the determination of whether the Current Beneficiary is a Scholar or an Orphan.

The benefits to be derived by an Orphan are as follows and we use the term “capital for success” as we observe that Milton Hershey’s Deed of Trust manifests the intent to invest in each Current Beneficiary according to each individual’s potential, interest, and commitment, consistent with the high Hersheys’ Philanthropic Standard.  The Managers are charged with responsibility to invest a certain threshold amount of capital in each person admitted to the School.  We call this “Basic Capital for Success.”  Orphans who merit remaining at the School until they reach the age of 18 receive the Basic Capital for Success.       

It is important to note here that all Former Students receive School Family Benefits throughout their respective lives pursuant to their Indenture, the Deed of Trust, and the Constitution. 

For those who evolve to become Scholars – and it is implicit in the terms of the Trust and each Indenture that it is the responsibility of the Managers to exercise all reasonable care to cause each Orphan to develop into a Scholar – the Managers are charged with responsibility to invest more capital in each person admitted to the Trust who evolves into a Scholar.  Thus, the following set of terms distinguishes the amount of capital the Trust is to invest in pursuit of the high Hersheys’ Philanthropic Standard.

The following, Diagram 5: Benefits Under Milton Hershey’s Deed of Trust, illustrates the distinctions made by Milton Hershey’s Deed of Trust regarding benefits to be received by the Current Beneficiaries, as well as pursuant to each Current Beneficiary’s Indenture. 

 

Diagram 3: Benefits Under Milton Hershey's Deed of Trust

 

 

 

Term of Current Beneficiaries

There is a sense of immediacy for admission of new students under Milton Hershey’s Deed of Trust. There is described an ongoing process of filling vacancies and the anticipation of growth in admitted Current Beneficiaries as the resources of the Trust permit, with a “first-come first-served” nature. In fact, Milton Hershey’s Deed of Trust contemplates only one preference in admission for otherwise qualifying applicants and that is, whenever the number of qualified applicants exceeds the number of vacancies, then and only then can the Managers give preference to an applicant based solely on where such applicant for admission was born. Otherwise, applicants for admission are to be admitted according to their individual needs and admitted at any time throughout the year. This is different from most private schools, particularly private preparatory schools. That is, the Hersheys intended, and administrators at the School understood, that those children who satisfy the Requirements of Admission are to be admitted according to their needs, which may require immediate admission, so long as the School then has the capacity to admit additional Current Beneficiaries.

Inasmuch as the promise to each Former Student of a Home and School Family Benefits (1) derive from his Indenture, the Deed of Trust and the Constitution of Milton Hershey’s Alumni Association and (2) the nature of the School Family Benefits are intended to parallel those of biological families, School Family Benefits do not terminate. School Family Benefits continue throughout the lifetime of each Former Student. M.S.’s and the School’s historic approach in delivering School Family Benefits confirm this.

In contrast with the fact that School Family Benefits do not terminate, the status of a Current Beneficiary as an Orphan or Scholar can be terminated pursuant to Paragraph 20 of Milton Hershey’s Deed of Trust, as well as under their respective Indenture.  As one might expect, the Deed of Trust distinguishes between Orphans and Scholars; a breakdown of Paragraph 20 is provided in Table 3: Termination Events as follows: 

 

Table 3:  Termination Events and Length of Time a Person is a Current Beneficiary 

Termination Events and Length of Time a Person is a Current Beneficiary
Term	Meaning
Orphan	In the case of each Orphan, if the Managers decide such person may be dismissed, removed, or expelled from the School because such person: (i)    has become incompetent to learn, or to master a trade, or (ii)   from physical ailments it would be inexpedient for such person to continue their studies and training, or (iii) became insubordinate, or guilty of vice or crime, or became an unfit companion for the others, or (iv) has so conducted himself as not worthy of future and continued support and education, or (v)   is so competent to work at his chosen trade, that he is qualified to be self-supporting, or (vi)  for any other good and sufficient reason, under Paragraph 20 of the Deed of Trust, this is referred to herein as an “Orphan Termination Event,” which would mean for purposes of Paragraph 20 and Paragraph 16 of Milton Hershey’s Deed of Trust that such Orphan no longer merits remaining at the School until he reaches the age of 18 and can be dismissed from the care of the Managers and removed or expelled from the School.  These matters are to be determined in the opinion or judgment of the Managers.
Scholar	In the case of each Scholar, if the Managers decide such Scholar deserves removal or expulsion under Paragraph 20 of the Deed of Trust, this is referred to herein as a “Scholar Termination Event.”
Orphan Term	The period of time from, and including, the date on which such person is admitted to the School to, and including, such Orphan’s Education Completion Date, subject to the ongoing Trust’s School Family Obligations.
Scholar Term	The period during which a Scholar’s status of a Current Beneficiary continues, which beneficiary status extends beyond the receipt of a Minimum Education and lasts until such Scholar’s Education Completion Date, subject to the ongoing Trust’s School Family Obligations.
Education Completion Date	In the case of each Orphan, the earlier of (a) the first date upon which such person reaches 18 years of age, and (b) the date on which such person suffers an Orphan Termination Event; and in the case of each Scholar, the earlier of (a) the first date upon which such Scholar has received his Scholar Capital for Success and (b) the date on which such person suffers a Scholar Termination Event.

While an Orphan’s Education Completion Date is clearly limited to age 18, a Scholar’s Education Completion Date may go on for a very long time, the duration of which is determined by such Scholar’s individual taste, capacity, intelligence, and adaptability, so long as there is sufficient income from the Trust. However, just because the Scholar Education Completion Date has not occurred and may continue for an extended period, the Scholar is not automatically entitled to a continuation of all benefits contemplated by Milton Hershey’s Deed of Trust.  For instance, the Education Completion Date for a doctor of medicine may last much longer than the Education Completion Date for an electrician who is also a Scholar.  Moreover, the Orphan Term and the Scholar Term continue throughout their respective lifetimes due to the ongoing Trust’s School Family Obligations and their continued receipt of School Family Benefits.

The Hersheys intended that the benefits of the Trust would continue for Scholars after they reached the age of 18 and that School Family Benefits should continue in favor of all Former Students.  This is consistent with the Hersheys’ Philanthropic Standard. Pursuant to the Deed of Trust, the Indentures, the Constitution of Milton Hershey’s Alumni Association, and the Trust’s School Family Obligations, (a) benefits are received both while on the Hersheys’ Children’s Home Campus and after leaving such campus, and (b) benefits of the following nature have historically been received by Scholars and other Former Students after they reached age 18 and after having received a high school education.  To assist in illustrating such benefits, the following is a partial list of benefits that the Trust has provided to Alumni:

 

·         a home to which Former Students return;

·         meals, lodging, and the use of other School facilities;

·         banking and investment services;

·         medical benefits;

·         formal education beyond high school and age 18 through the School, other schools, colleges and universities both (i) on the Hersheys’ Children’s Home Campus (whether remaining on campus or returning to campus) and (ii) off the Hersheys’ Children’s Home Campus;

·         creating, printing, and distributing information, books and other materials regarding the Hersheys, the school, and members of the School Family;

·         job placement programs;

·         mentor programs;

·         transition programs;

·         career and social networking programs; and

·         Milton Hershey’s Alumni Association.

 

The fact that benefits from the Trust continue to be received by Scholars and other Former Students after reaching age 18 and whether or not still on the Hersheys’ Children’s Home Campus is important because it demonstrates the intent of the Hersheys, which mirrors what occurs in most healthy biological families. It is also material to achieving the high Hersheys’ Philanthropic Standard.

 

 

All Benefits are Free

All advantages and benefits to be derived are in all respects free to the Current Beneficiaries regardless of residency.

 

 

Home & School Family

The Hersheys required that their boys grow up in a real home among loving adults. The Hersheys created Hershey, Pennsylvania as the home of such orphans and each such orphan was promised that his home would be ‘situated at Hershey, Dauphin County, Pennsylvania, though his residence could be elsewhere. The Managers, on behalf of the School, became obligated to provide both Orphans and Scholars: (a) a residence, (b) the social unit formed by a family living together (that is, one’s close family and self), (c) if no longer one’s residence, a place to which one intends to return, and (d) as one grows older, a place of origin and emotional attachment. Upon creation of Milton Hershey’s Alumni Association, the Managers manifested related undertakings or responsibilities for the further development and continued excellent health of the School Family by setting forth responsibility for (1) keeping in touch and corresponding with, keeping a close relationship with, assisting in procuring employment for, and providing other necessary assistance to, all Former Students and (2) looking after the general welfare of all Former Good Students, Former Commendable Students, and Original Alumni Association Members, as well as (3) looking after the general welfare of those who were formerly students at The Hershey Industrial School and left there with a good record.

 

The School Family is the source, and the continued inspiration, of shared and enduring identity, tradition, loyalty, and purpose, as well as a central component in providing a real home for each of the Current Beneficiaries. The School Family is a core component of the School.  It represents the institutional family created by the Hersheys; the original senior members of which were the Hersheys and others like the Copenhavers.  The School Family is comprised of all past, present, and future Managers, school administrators, teachers, houseparents, staff, former students, and current students of the school.  The fabric of the School Family begins with the Current Beneficiaries and is strengthened with the addition of those who choose to become an integral component of the School Family – not solely out of a need for employment, but rather out of individual commitment to, and love for, these unique Current Beneficiaries.  Once one becomes a member of the School Family, such member will forever remain part of the School Family.  The School Family is not designed to replace, nor compete with, biological families; rather, it is designed to supplement them.

 

Picture 5:  Members of the Early School Family [1]  Here are various members of the early School Family: From Left to Right – Top Row: Henry Hershey, M.S.’s Father, Veronica “Fanny” Hershey, M.S.’s Mother, Milton S. Hershey, and Catherine S. Hershey, M.S.’s Wife; Second Row: M.S. and Catherine Hershey and the Board of Managers circa 1944; Third Row: George Copenhaver, the Boys of The Hershey Industrial School in 1914, and Prudence Copenhaver.

 When considering why the School Family is important – remember that a strong supportive family is a much sought after resource throughout the world.  This supportive family can play an important role in one’s success – as family is often the source of one’s identity, confidence, comfort, direction, guidance, and character.  The School Family is the source of shared and enduring identity, tradition, loyalty, and purpose, which serve to make the Hersheys’ Children’s Home the very best – not only as a children’s home but also as a family.  It serves as one of the essential components of the Hersheys’ philanthropy.  Historically, the School Family has motivated and supported the success of the school and its Former Students.  Without a healthy School Family, the very high level of achievement under the Hersheys’ Philanthropic Standard as achieved during M.S.’s lifetime would become very difficult to achieve, if not impossible.

 

The unparalleled success of the school, the School Family and Milton Hershey’s Alumni Association is built upon a common source of strength derived from these shared ideals:  (i) dedication to, and the achievement of, the full development of the whole person in the context of each of the Current Beneficiaries, (ii) the expectation that each Current Beneficiary should become self-reliant and successful according to such Beneficiary’s potential (measured by their respective “taste, capacity, intelligence and adaptability”), interests, and commitment, and (iii) a mutual responsibility among all members of the School Family for the well-being of all other members of the School Family.  This enduring strength is achieved through service to one another.  Every member of the School Family has some responsibility for the long term heath and development of the School Family, including each student who pledges to honor, to uphold, and to do all he can for the good of his school.

If in perpetuity these shared ideals are to be achieved and a common source of strength enhanced and perpetuated, then the School Family must continuously (a) develop current and future leaders, (b) maintain an ongoing awareness of and commitment to the guiding principles, (c) in responsive to change, develop effective means for determining and implementing improvement to or new programs that are in the best interests of the Current Beneficiaries, and (d) develop current and future means of uniting and strengthening the School Family at all ages by protecting and enhancing our shared identity, tradition, loyalty, and purpose. The Trust’s School Family Obligations include the Managers’ (1) obligations to provide a “Home” to both Orphans and Scholars, as well as (2) responsibility for the further development and continued excellent health of the School Family by (a) keeping in touch and corresponding with, keeping a close relationship with, assisting in procuring employment for and providing other necessary assistance to, all Former Students and (b) looking after the general welfare of all Former Good Students, Former Commendable Students and Original Alumni Association Members, as well as (c) looking after the general welfare of those who were formerly students at The Hershey Industrial School and left there with a good record.

The following diagram illustrates the central role Milton Hershey’s Alumni Association plays, as well as the fact that all members have some responsibility for the long term health and development of the School Family. 

 

Diagram 4: School Family and Milton Hershey's Alumni Association: 1930

 

 

 

Students of the school who died while admitted to the School are buried near the Hersheys’ biological family plot, which contains Milton and his Mother, Father, and Wife, in the Hershey Cemetery manifesting the Hersheys’ view of these children as their own and part of the School Family.  On the other sides of the Hersheys’ biological family plot are Managers, who too are members of the School Family. 

Alumni are an important component of the School Family.  Alumni are a material component of the School Family because Alumni (i) are to receive their School Family Benefits, (ii) who remain as Scholars under the Deed of Trust continue to receive other benefits under the Deed of Trust, (iii) serve as a primary source for effective role models in the lives of younger and older Scholars, other Alumni and other members of the School Family, (iv) serve as a primary source for effective leadership in the School, as Managers and in other aspects of the Trust, (v) select other School Family members who deserve recognition for their exceptional service to the School Family and make them honorary alumni, and (vi) as the older Scholars and leaders of the School Family serve to protect the Trust through insisting upon strict adherence to the Deed of Trust, the Hersheys’ intent and the laws of the Commonwealth of Pennsylvania. Through the great vision of M.S. and the other Managers in 1930, the Milton Hershey’s Alumni Association was established as part of the School so as to ensure, among other things, that the key roles of Alumni in the School Family are achieved in perpetuity.

At the heart of having a student home permanently dedicated to Alumni to facilitate their visits home is the Managers commitment to the School Family and the School Family Benefits. The H.I.S. Alumni Memorial Home remained a part of the Hersheys’ Children’s Home and facilitates visits by Alumni as members of the School Family. 

 

Picture 6:  Broad Acres, Unit No.1, “H. I. S. Alumni Memorial Home” [2]   In 1946, The Hershey Industrial School Alumni Association organized and operated the unit formerly known as Broad Acres as facilities to provide board and lodging for members of Milton Hershey’s Alumni Association; it was known as The H.I.S. Alumni Memorial Home.  Student home Broad Acres was originally opened on January 4, 1932 for boys in grades 6-12.  While in the 1940’s it was used as an Alumni House, in the 1950’s Broad Acres was used as a college hall for HIS students attending Hershey Junior College.  Round Barn had been connected with this student home.

 

The Alumni Association was created as an unincorporated association within the Trust to play an intended, unique, and important role in the lives of the Beneficiaries in fulfillment of the Hersheys’ intent under the Deed of Trust. Just as the community of Hershey was created to serve as the home for the Beneficiaries, so too the Alumni Association was created to serve the School, its students and former students, the School Family, and the Trust as an organization within the Trust.  Milton Hershey’s Alumni Association was created as a centralized means of fulfilling the Trust’s School Family Obligations.  That is, the Alumni Association is part of the Hersheys’ self-reliant structure that utilizes all of its own resources to their maximum benefit in order to achieve optimal economic, logistical, and, most importantly, philanthropic results.  Milton Hershey’s Alumni Association focuses on two core sets of tasks with which the Trust is burdened.  One set revolves around the Trust’s continuing educational mandate; and the other, driven by the Trust’s School Family Obligations.  Through Milton Hershey’s Alumni Association, the Trust formally developed a means of enhancing the effectiveness of the Trust in the areas of, among other things, (i) providing certain educational benefits that continue even after one leaves the campus and (ii) fulfilling those responsibilities that center around the long term heath and development of the School Family. Milton Hershey’s Alumni Association is designed as a means of enhancing the effectiveness of the School; however, unlike Hershey Estates, Milton Hershey’s Alumni Association’s role was geographically broader and was uniquely suited to enhancing the Trust effectiveness in discharging its Trust’s School Family Obligations.  The fulfillment of Milton Hershey’s Alumni Association’s purposes is a priority under the mutual covenants and individual undertakings that start when one is first admitted to the School, and such undertakings never terminate. 

As M.S. intended, here is how it works. The Constitution contemplates three groups of former students of the School:

·         “Former Students,” which includes all former students of the school,

·         “Former Good Students,” which includes all former students who left the school with a “good record,” and

“Former Commendable Students” which includes all former students who left the school with a “commendable record.” The clear import of Milton Hershey’s Alumni Association, based on the Constitution, is that:

(i)                 such Alumni Association undertakes responsibility for (a) keeping in touch and corresponding with, keeping a close relationship with, assisting in procuring employment for, and providing other necessary assistance to all Former Students and (b) looking after the general welfare of all Former Good Students, Former Commendable Students, and Alumni Association members;

(ii)               though each of these are continuing responsibilities of Milton Hershey’s Alumni Association, the Constitution clearly states “This association is organized for the purpose of looking after the general welfare of those who were formerly students at The Hershey Industrial School and left there with a good record;”

(iii)             thus, these additional responsibilities were viewed as contributing to the general welfare of Former Good Students and Former Commendable Students;

(iv)             membership in Milton Hershey’s Alumni Association is limited to Former Commendable Students from whom the existing Original Alumni Association Members select future Original Alumni Association Members;

(v)               the school (a) determines the Original Alumni Association Members, (b) on an ongoing basis determines which former students fall into particular classifications (that is, Former Student, Former Good Student, and Former Commendable Student)  and (c) thus, determines who of the Former Students is a Former Commendable Student eligible to become an Original Alumni Association Member;

(vi)             Former Commendable Students can only become an Original Alumni Association Member if the existing Original Alumni Association Members vote in favor of such Former Commendable Student;

(vii)           the transition from student to Former Student occurs on the same day as the annual meeting of Milton Hershey’s Alumni Association; and

(viii)         from among this select group of Original Alumni Association Members, they select their own officers or leaders.

Milton Hershey’s Alumni Association was designed as a means of enhancing the effectiveness of the Trust by, among other things, (i) providing certain educational benefits that continue even after one leaves the campus and (ii) fulfilling those responsibilities that center around the long term heath and development of the School Family. M.S. created his Alumni Association as the institutional mechanism for further achieving the philanthropic mission of the Trust.  Thus, the creation of the Alumni Association marked the beginning of the further fulfillment of these unique attributes of the Hersheys’ philanthropy that were best, and in many cases only, satisfied through Alumni. 

The Trust functions as a family trust, just like any other family trust.  The relevant family in this instance is the School Family.  Through the Deed of Trust and expecting that the potential and interests of each Current Beneficiary, as well as the demands of society and employers, will vary over time, the Hersheys provided for: (i) the creation and expansion of the Hersheys’ Children’s Home for existing and future Beneficiaries and (ii) benefits while living at the Home and while no longer living at the Home.  As time passes, the School Family continues to grow in size and diversity of taste, capacity, intelligence, and adaptability, and society and employers expect more from each of us.  In addition, the Hersheys understood that, although each of them would eventually die, the School Family must endure and remain well served by the Trust in perpetuity.  With this in mind, M.S. created the Alumni Association whose Original Alumni Association Members would serve as (a) the Hersheys’ successors as the senior members of the School Family from which future leaders would come (whether as Managers, School Administrators, teachers, houseparents, mentors, brothers or sisters in orphanhood, the heads of other Hershey Interests, etc.) and (b) the means of ensuring that the School Family would endure, and be well served by the Trust, in perpetuity.  It is worth noting that those who serve in these important roles as Original Alumni Association Members of Milton Hershey’s Alumni Association are duly elected by the then existing Original Alumni Association Members of Milton Hershey’s Alumni Association after having been identified by the School as Former Commendable Students.  Thus, the Original Alumni Association Members were at all times selected by the School and the existing Original Alumni Association Members from the selected population of all Former Commendable Students. 

Another purpose of the formation of Milton Hershey’s Alumni Association and its intended relationship to the Managers and the Trust is first manifested through Arthur Whiteman. In fact, each Former Student that became a Manager during or prior to 1984 (i) was Indentured, (ii) graduated from The Hershey Industrial School, (iii) served as the Alumni Association’s President and Past President either before or at the time of first becoming a Manager, and (iv) for years prior to 1984, each Manager who (a) was an alumnus, and (b) served as a Manager prior to 1984 at some point served simultaneously as a Director of the Alumni Association and as a Manager.

M.S. created the Alumni Association, and added Arthur Whiteman, Joseph Gumpher, and others as a Manager, as a means of enhancing the effectiveness of the School by, among other things, (i) providing certain educational benefits that continue even after one leaves the campus and (ii) undertaking those responsibilities that center around the long term health and development of the School Family.  That is, the Alumni Association, as part of the School, serves the School Family and the “school” by being responsible for the development and continued excellent health of the School Family and serving to identify and develop the future leaders of the Trust, the School and the School Family by selecting from its Original Alumni Association Members those that will lead in such capacities.  It follows that the overall purpose of Milton Hershey’s Alumni Association should include, and the Constitution provides:

This association is organized for the purpose of looking after the general welfare of those who were formerly students at the Hershey Industrial School and left there with a good record.

The involvement of the Alumni Association is so fundamental to the achievement of the Hersheys’ philanthropic endeavor that (i) the Managers and School Administration participate in formal activities of Milton Hershey’s Alumni Association at all times while M.S. was alive and for decades thereafter and (ii) the Managers and Milton Hershey’s Alumni Association have overlapping boards at all times after 1939 (the year that Whiteman first went on the Board of Managers) through M.S.’s death in 1945.  During this same time frame, particularly the early years, a representative of the Managers would sit in on many meetings of the Alumni Association and the School Superintendent often attended many of the meetings that occurred as often as six times a year, which one would expect given that Milton Hershey’s Alumni Association is part of the School.  

From the members of the Alumni Association’s Board and its officers came many School Family leaders who first serve and were developed through the Alumni Association.  Some examples are Arthur Whiteman, Joseph Gumpher, Kenneth Hatt, William Dearden, Bruce McKinney, John “Mac” Achiele, William Fisher, Michael Weller, Anthony Colistra, John O’Brien, and Melvin Garner.  There are many others who served and were developed through the Alumni Association and worked for the school as teachers, counselors, houseparents, and administrators, as well as in other capacities.  The most common development path was that a Former Commendable Student would first serve as a director and officer of the Alumni Association, thereby demonstrate commitment and leadership and then, be selected to play an important role in the School Family through the school or one of the other Hershey Interests.

Assets of the Trust may not be used for any purpose other than that set forth in the Deed of Trust (i.e., for the benefit of the Beneficiaries and to achieve the purposes of the Trust).  Through Milton Hershey’s Alumni Association, the Managers, and the School have used Trust assets to (i) enhance the Home to which Alumni return by having a resident Alumni Association with elected officers and directors and (ii) provide (A) meals, lodging, and the use of other Trust facilities, (B) information, books, and other materials (e.g., The School Industrialist) regarding the Hersheys, the School, and the School Family, and (C) job placement, mentor, transition, as well as career and social networking programs.

M.S.’s clear manifestation of his own intent under Milton Hershey’s Deed of Trust was to (a) establish Milton Hershey’s Alumni Association as part of the School, (b) materially enhance the value of the School Family to the Current Beneficiaries through Milton Hershey’s Alumni Association, and (c) discharge some of the Trust’s School Family Obligations and other fiduciary obligations of the Managers through Milton Hershey’s Alumni Association.  Milton Hershey’s Alumni Association has been delegated and such Alumni Association, its Original Alumni Association Members and its officers have accepted responsibility for the further development and continued excellent health of such School Family by undertaking responsibilities set forth in the Constitution.

M.S. brought the fulfillment of the Deed of Trust and the Indentures to nearer 100% by establishing the School and:

(i)                 including the School Family, to fulfill the Direct Education mandated by the Deed of Trust,

(ii)               including the School Family and Milton Hershey’s Alumni Association, to fulfill the Indirect Education mandated by the Deed of Trust, and

(iii)             including the School Family and Milton Hershey’s Alumni Association, to fulfill the Trust’s School Family Obligations and to ensure the development of a strong, loyal, and healthy School Family by “looking after the general welfare of those who were formerly students at The Hershey Industrial School and left there with a good record” and keeping in touch and corresponding with, keeping a close relationship with, assisting in procuring employment for and providing other necessary assistance to, all Former Student. 

 

In so doing, Milton Hershey’s Alumni Association enhanced the fulfillment of the Direct Education and Indirect Education mandated by the Deed of Trust, as well as the fulfillment of the Trust’s School Family Obligations by, among other things, (i) providing certain educational benefits that continue even after one leaves the campus and (ii) undertaking responsibilities that center around the long term health and development of the School Family.  Finally, much like Hershey Estates, which had been formed only three years earlier, Milton Hershey’s Alumni Association was formed as part of the School pursuant to M.S.’s continuing endeavor to create a self-reliant structure that utilizes all of its own resources to their maximum benefit in order to achieve optimal economic, logistical, and philanthropic results.

 

 

 

The Proper Environment - Rural and Agrarian

Before founding the Hersheys’ Children’s Home, the Hersheys researched other children’s homes and determined that (i) the boys must grow up with a feeling that they have a real home and a real family and (ii) the best environment for this was in a rural, cottage setting, so as to ensure the main objective – that each boy becomes successful in life as a person who is moral, religious, truthful, financially responsible, industrious, and, on a self-reliant basis, able to support himself in some occupation or mechanical trade determined by his unique taste, capacity, intelligence, and adaptability.  Through the Deed of Trust the Hersheys wove into the fabric of the Hersheys’ Children’s Home rural, farm, and agrarian components.  The Deed of Trust manifests the Hersheys’ intent that the Hersheys’ Children’s Home have a rural, agrarian campus. Under Milton Hershey’s Deed of Trust, the Managers are without authority to consolidate the Hersheys’ Children’s Home campus and have very restricted authority to destroy or abandon Trust assets such as buildings, equipment, etc. Moreover, all discretion of the Managers is servient to the dominant intent of the Hersheys to care for as many children as the income will permit in perpetuity. The Hersheys, particularly M.S., thoroughly researched children’s homes prior to signing the Deed of Trust. M.S.’s research included visiting other children’s homes.  The rural campus serves many purposes of the Trust.  For example, it facilitates the farm program that plays a material role in the self-reliant structure and reinforces each student’s confidence because his work demonstrates achievement and self-reliance. Also, the rural campus serves to engender a natural home and family environment.

M.S. was pleased that through his actions during his life time he was able to demonstrate precisely what the Hersheys intended under Milton Hershey’s Deed of Trust as the Hersheys’ philanthropy – The Hershey Industrial School.  During his lifetime, M.S. (i) expanded the Hersheys’ Children’s Home Campus to over 12,000 acres [1999 Adjudication, p. 5.] and (ii) made it abundantly clear to everyone [Milton Hershey made it clear to George Copenhaver, who was the first Superintendent of the school and a strong supporter of dormitory style living on a centralized campus.] that (a) the Resident Beneficiaries shall live on as large a campus as the Trust could support occupying much of the countryside surrounding, and including, Derry Township and (b) the Resident Beneficiaries shall not live in dormitories, on a centralized campus or under other circumstances that might detract from their living in disbursed cottages or homes in a manner consistent with traditional rural family life in America.   Should anyone suggest the construction of the Deed of Trust is otherwise than as described above, then surely this fulfillment of the Hersheys’ Children’s Home Campus expansion during M.S.’s life adds further support that such mandates of the Deed of Trust where intended by the Hersheys.

To understand this, we review the guiding principles of the Hersheys’ philanthropy. In the context of the overall goal of saving each orphan, the guiding principles of the Hersheys’ philanthropy are: (1) Fully developing the whole person according to such person’s unique attributes, interests, and commitment; (2) Eliminating charitable institution, “communal” and all other attributes that might serve to limit the development of each individual or their self-image and confidence; (3) Providing the best environment in which to accomplish the first two objectives; (4) Building an institutional family – the School Family – to which each student becomes a member for life for the same reasons that healthy biological families are beneficial to its family members; and (5) When measuring the value of their philanthropy, apply the Hersheys’ Philanthropic Standard, which is to measure the value of their philanthropy based solely on the amount of good it does for each orphan in the context of his unique abilities, interests, and commitment. To achieve these, every child must be developed as an individual in harmony with his unique potential, interests, etc. At the core of these guiding principles is the Hersheys’ belief that as (i) the campus becomes more rural, (ii) the residences of the Resident Beneficiaries function as a normal, loving family and (iii) any notions of charity are removed, this rural family environment functions more effectively in fully developing the whole person.  Conversely, the more congregated or communal the campus becomes, the more the residences function like a dormitory, and the more the environment manifests attributes of a charity, the less effective the environment is for the full development of the whole person. Each boy is to be trained in agriculture, horticulture, and gardening. M.S. believed that this was the proper approach to best ensure that each of his boys develop a sound mind and body.  He believed that environment determines a large part of a man’s character.

 

 

Full Development of the Whole Person

With respect to each Current Beneficiary, the overall objective is the full development of the whole person, both as a child and as an adult, according to such person’s unique attributes (that is, tastes, capacity, intelligence, and adaptability), interests, and commitment. This is well understood as an overall objective of the Deed of Trust. Moreover, following graduation from high school, the Trust must exercise all such other requisite efforts (e.g., education through trade (and other) schools, colleges, universities, mentoring programs, transition programs, and cooperation with the Alumni Association) to provide the maximum assurance that each Scholar becomes successful in life as a person who is, on a self-reliant basis, able to support himself or herself in some occupation or mechanical trade determined by his or her unique tastes, capacity, intelligence and adaptability, moral, religious, truthful, financially responsible, and industrious. This education is mandatory and must be tailored to each Scholar based upon such Scholar’s individual taste, capacity, intelligence, and adaptability. The Hersheys mandated that the Managers must, and gave the Managers broad discretion to, design and implement both (i) residential, campus based, direct programs for Scholars, as well as (ii) other indirect programs for Scholars, which programs could extend well beyond 18 (and in fact well beyond age 21) and a high school education. The overall program designed by the visionary M.S. was a state-of-the-art program tailored around, and intended to develop, each individual into an adult of exceptional Christian character, prepared to make a living for him following receipt of his benefits under the Deed of Trust.  The programs offered today must satisfy that required by the Deed of Trust, as well as seek always to be a state-of-the-art children’s home with a high level of performance that over many decades has become the hallmark of the school.

 

 

Work Ethic

Work ethic plays a central role in the overall program mandated by Milton Hershey’s Deed of Trust. The school’s program developed around the belief that self-respect and self-confidence are, in part, based on each individual’s ability to do a job; work ethic is a fundamental part of the Current Beneficiary’s education. In fact, each phase or component of the school’s work assignment program is educational; the lessons of the program include learning responsibility, cooperation, efficiency, achievement, honest work, and team work, and the benefits that result from successful participation in the program.

 

 

Recreation & Natural Resources

Recreational programs are mandated by Milton Hershey’s Deed of Trust and are vital components of the Hershey Children’s Home program.  The vital nature of recreation and other natural resources is reflected in the school’s program through frequent supervised recreational activities, as well as encouraged use of a boy’s free time to participate in any form of socially acceptable recreation he may desire. In keeping with this mandate and the vital nature of recreation, each student home is equipped with outdoor and indoor play space and facilities. Student homes include ball fields, lighted basketball courts, a ping-pong table, a wrestling mat, a hobby room and tools, and other athletic equipment. The School campus, beside the natural beauty and resources, provides additional resources such as the following:

Maizeland Pond     Canalview Pond

Rockridge Pond     Pennland Pond

Swatara Pond         Spring Creek

Swatara River       Conewago Creek

Camp Milton         Spartan Meadows

Pony Riding

 

 

 

Religious & Moral Education

The Deed of Trust provides that moral and religious training on a non-sectarian basis is a required part of the school’s programs. The fundamental importance of this was well understood; in fact, The Hershey Industrial School could be properly viewed as each boy’s home, church and school. The foundation of the school’s program was the goal of producing young, well educated Christian men who revere God, as well as respect and love their fellow men, and who conquer the things of the world; that is, the core objective is to develop the whole person with special emphasis on developing well formed Christian men. In addition to the formal components of the program that provided moral and religious training, M.S. surrounded his boys with adults who understood and loved his boys, requiring that “no person shall be employed who shall not be [...] of established moral character.”

M.S. was raised by his mother as, and remained during his life, a Mennonite. That is, from the first days through much later years, it was well understood that the Hersheys’ intended that the School would provide a Christian religious education and that those employed by the School must be of established moral character. That this would have been the intent is confirmed by M.S.’s own words. M.S. believed he was a Christian in the manner in which Christ desired; that is, he believed the word of God as taught by Christ. In particular, M.S. viewed himself as a Mennonite. His mother’s influence, the Hersheys’ words in Milton Hershey’s Deed of Trust and M.S.’s daily life, including in business, reflect his Christian religious beliefs. M.S. cherished and revered the Christian faith he received from both his father and his mother. In fact, M.S. was surrounded by religious leaders who possessed strong conviction in their beliefs. He believed that the Mennonite and other plain sects were nearer to honoring the Word of God than other denominations. In forming their understanding of the Word, they added very little of their own dogma or creed. In essence, M.S. respected that the Mennonite and other plain sects did not seek to add their own understandings as part of God’s Word. These beliefs became stronger as he grew older. M.S. viewed himself as a Mennonite throughout his life.

M.S. was also well known for his practice of Christian beliefs in his business dealings, particularly the Golden Rule. He liked pursuing matter in ways that benefited others, such as employees and customers. M.S. believed in the Ten Commandments and the Golden Rule, which he practiced daily in his business and personal lives. While M.S. was not much of a reader, he often read the Bible. As M.S. looked to God for his guidance and thus, read the Bible and prayed regularly. M.S. believed in God and in God’s Grace. He sought to live according to the Christ’s teachings. He practiced his faith and virtue privately without calling attention to himself. The School is a manifestation of M.S.’s Christian beliefs as he pursued a truly Christian life during the second half of his lifetime. All things considered, to conclude that the Hersheys intended that the religious and moral education required by Milton Hershey’s Deed of Trust be based on any faith other than Christianity would be unreasonable.

The religious and moral education program at The Hershey Industrial School is a core component of the overall program designed to develop the whole person.  This intended emphasis on Christianity is manifested in publications of the school. Education for character is the chief aim of the school.  Without any favoritism to a particular sect or creed, the goal is to develop the whole person with special emphasis on the qualities of young Christian manhood; that is, to develop a young man who:

·                    reveres, respects, and worships God,

·                    is a gentlemen of Christian character,

·                    possesses a desire to live a daily life in keeping with the fundamental principles of Christianity,

·                    reveres his fellow man and respects other’s religious beliefs, and 

·                    conquers the things of the world.

 

M.S. believed that if people lived by the Ten Commandments and the Golden Rule, there would be no war. M.S. required that copies of the Ten Commandments be printed on heavy paper about twenty by thirty inches, framed, and hung above the fireplace of each cottage and farm-home.

Ten Commandments   Thou shalt have no other Gods before me.      That is, we should give God first place in our lives.   Thou shalt not make unto thee any graven images.      That is, we should have no substitute for God.   Thou shalt not take the name of the Lord thy God in vain.      That is, we should use God’s name only in a reverent manner.   Remember the Sabbath day to keep it holy.      That is, we should keep the Sabbath a day of worship and rest.   Honor thy mother and father.      That is, we should obey and respect those in authority.   Thou shalt not kill.      That is, we should act in love, not hate.   Thou shalt not commit adultery.      That is, we should be clean in thought, word, and deed.                 Thou shalt not steal.      That is, we should respect the possessions of others.   Thou shalt not bear false witness against thy neighbor.      That is, we should always be truthful.                 Thou shalt not covet.      That is, we should avoid envying the possessions of others.   Golden Rule Do unto others as you would have others do unto you.

Picture 7:  The Ten Commandments and Golden Rule as Published in Student Homes       The Ten Commandments and Golden Rule are framed and hung in every Student Home. The Ten Commandments are done in calligraphy by Clyde Stacks.

 

 

 

Farm & Vocational Education

The farm and vocational programs are mandated by the Deed of Trust. Paragraph 17 of Milton Hershey’s Deed of Trust mandates vocational education, instruction in agriculture, horticulture, and gardening and work on the farms.  Inasmuch as the Deed of Trust mandates that agriculture, horticulture, gardening, and such mechanical trades and handicrafts as the Managers may determine must be part of the education provided, with the goals “to fit themselves for the trades they are to learn, and a useful occupation in life” and “the main object in view is to train young men to useful trades and occupations, so that they can earn their own livelihood,” these programs must be of the very highest caliber in order to achieve these goals.  Moreover, the Deed of Trust could not be any clearer in its mandate “one of the objects of the School being to teach and instruct in agriculture, horticulture, and gardening, each orphan admitted to the School shall at such time or times as may be required, do such work upon the farms as may suit his capacity and ability.” As Milton Hershey’s Deed of Trust mandates, the courses to be taught also had to be of the very highest caliber in order to achieve the goals. Milton Hershey’s Deed of Trust mandates both an effective vocational program and an effective farm program. 

 

The rationale for the vocational education is the main object of the program – to train young men to useful trades and occupations, so that they can earn their own livelihood.  Regarding the farm program, M.S. expressed his intent that his boys would grow up on a farm as he had a child. This would provide each of the boys with a home in wholesome surroundings, close to nature, and afford them a learning experience from doing chores. In particular, the daily farm-home work (farming, milking cows, cleaning the house, cooking and doing other chores), family and play routine were part of each boy’s human development and education. These responsibilities played some role in maintaining the effective operation of the student home and family. In fact, graduates frequently reported the benefits of farm life.

 

 

Certain Benefits Continue After Age 18

The Hersheys intended that the benefits of the Trust would continue for Scholars after Scholars reached age 18 and that School Family Benefits should continue in favor of all Former Students. 

 

Picture 8:  Milton S. Hershey in 1941 [1]

In 1941, M.S. was 84.

 

 

 

INDEX OF TERMS

1 1905 Formation of HTC 1908 Incorporation of Hershey Chocolate Company 1909 Milton Hershey Will 1910 Formation of the Trust 1918 Contribution of Hershey Chocolate Company Stock 1918 Conveyance of Non Chocolate Assets to Hershey Chocolate Company 1918 Endorsement of the 1918 Transferred Hershey Chocolate Company Stock Certificate 1918 Hershey Chocolate Company Stock Certificate 1918 Letter to Hershey Chocolate Company 1918 Transferred Shares of Hershey Chocolate Company Common Capital Stock Shares 1919 Decree 1919 Deed Modification 1919 Incorporation of the Managers 1923 Literary Digest 1927 Formation of Hershey Chocolate Corporation 1927 Formation of Hershey Estates 1929 Stock Market Crash 1932 Snavely 1933 Decree 1933 Deed Modifications 1933 M.S. Hershey Declaration and Joinder 1933 Paul Reed Memo 1933 Petition 1935 Description of HIS 1935 HJC Trust 1935 Living Trust of Milton Hershey 1935 Map of HIS Units 1939 Murrie 1944 Milton Hershey Will 1945 Residual Derry Township School District Trust 1946 Houseparent Handbook 1947 Alumni Association Incorporation Decree 1947 Alumni Association Petition for Incorporation 1948 Hershey 1950 Gumpher 1950 Hershey 1950 Houseparent Handbook 1950 Wallace 1951 Decree 1951 Deed Modification 1951 Deed of Trust 1951 Petition 1957 Snavely 1959 Anniversary Lectures 1959 Home Division Handbook 1960 Rudisill 1962 Rudisill 1963 Decree 1963 Education Division Handbook 1963 Hershey Chocolate 1963 Petition 1964 Nurick Letter to BOM 1968 Decree 1968 Nurick Opinion re Girard 1968 OAG Opinion re Girard 1968 Petition 1968 Senior Division Guidebook 1969 Hammond 1970 Decree 1970 Deed Modifications 1970 Deed of Trust 1970 Petition 1970 Petitioners 1971 Hostetter            1973 Klotz 1976 Declaration of Fellowship 1976 Decree 1976 Deed Modifications 1976 Deed of Trust 1976 Petition 1983 Castner 1984 Alumni Association Articles of Amendment 1988 MHS Market Plan 1990 Hershey 1990-1991 Board of Managers 1991 Trust Agreement 1992 Bryce Jordan Study 1992 Hershey Heritage Re John Snyder 1996 Hershey Chronology 1997 Relationship Memo 1998 Deed Modification 1999 – 2002 Alumni Association Legal Counsel 1999 Adjudication 1999 Amicus Brief 1999 Cy Pres Petition 2 2001 MHS Chronology 2002 Central Pa Magazine 2002 OAG Dialogues 2002 Stark Part I 2003 Alumni Association Petition 2003 Decrees 2003 Hearing Transcript 2003 MHS Alumni Directory 2003 Opinion 2004 MHS Chronology 21st Century Initiative            22nd Trust Accounting 23rd Trust Accounting A Alumni Alumni Association Alumni Association Board Alumni Association History Alumni Association Member Alumni Scholar Programs America’s Six Depressions Arthur Whiteman Attorney General August 22, 2000 MHSAA Memo August 3, 2000 MHSAA Memo B Basic Benefits Basic Capital for Success Beneficiaries Bias, Flaw, & Avoidance Board of Managers Business C Character Education CHILD Christianity Defined Community Constitution Contingent Beneficiary Copenhaver Copenhavers Current Beneficiary

D Deed of Trust  Dependent Direct Education Discretion Dr. Hershey Dr. Rudisill E Education Education Completion Date F Financial Need Former Commendable Students Former Good Students Former Students G George Copenhaver Great Depression Gumpher H Hammond HERCO Hershey Hershey Chocolate Company Hershey Chocolate Corporation Hershey Corporation Hershey Estates Hershey Foods Hershey High Hershey Industrial School Hershey Interests Hershey Junior College Hershey Trust Company Hersheys Hersheys’ Children’s Home Hersheys’ Children’s Home Campus Hersheys’ Children’s Home Development Plan HFC HIS HJC Home Homestead Hotel Hershey HTC HTC Board of Directors I Indenture Indenturing Indirect Education J J.O. Hershey John O. Hershey Joseph Gumpher Joseph Richard Snavel Joseph Snavely K K&L Report M M.S. Hershey Foundation Managers Medical Center Memorandum of Understanding MHS Milton Hershey School Milton Hershey’s 1944 Final Will Milton Hershey’s Alumni Association Milton Hershey’s Deed of Trust Milton Hershey’s First Trust Milton Hershey’s November 14, 1909 Will Minimum Education MS N Non-Resident Beneficiary Non-Resident Employee Normal O OAG Original Alumni Association Member Original Deed of Trust Orphan            Orphan Benefits Orphan Capital for Success Orphan Term Orphan Termination Event Orphans’ Court P P.N. Hershey Proposed Greenway Easement Proposed Third Restated Deed of Trust R Requirements for Admission Resident Beneficiary Resident Employee Resident Non-Employees Richard A. Rudisill Rudisill S Scholar Scholar Additional Education            Scholar Benefits Scholar Capital for Success Scholar Core Education Scholar Mandated Education Scholar Term Scholar Termination Event school School School Administration School Administrator School Archives School Family School Family Benefits Self-Reliance Education Snavely Social Need T The M.S. Hershey Foundation Trust Trust’s School Family Obligations Trustee            U USPS V Vocational, Agricultural and Academic Education W W. Allen Hammond Whiteman World War I World War II Y Year-round

 

 

GLOSSARY OF TERMS

Over more than a Century, many things have changed in America, particularly as relates to the Hersheys’ philanthropy – The Hershey Industrial School (which includes the “ideal community” or Hershey, Pennsylvania). That which the Hersheys created has no parallel. A consequence of the passage of so much time, precise definitions are needed that capture these changes and add specific meaning to the vocabulary used to explain the Hersheys philanthropy. 

The method of sighting references throughout this text is also somewhat different. This difference is deliberate. Most of the cite references specify the year in which the material was published or came into existence. This referencing is an important indicator. Generally speaking, sources published when Milton Hershey was alive, or soon after his death, tend to reflect a view more in line with that of Milton Hershey. When the date of publication follows Milton Hershey’s death in 1945, much of the writing reflects influences other than Milton Hershey’s.

 

“1905 Formation of HTC”- the 1905 formation of the Hershey Trust Company. 

“1908 Incorporation of Hershey Chocolate Company”- the incorporation of the Hershey Chocolate Company in 1908.

“1909 Milton Hershey Will”- that certain will of Milton Hershey dated November 14, 1909, together with the codicils thereto, that is, Milton Hershey’s November 14, 1909 Will.

“1910 Formation of the Trust”- the moment at which the Trust was first formed as a result of the execution of the Deed of Trust by the Hershey Trust Company on April 14, 1910 and the execution of the initial Managers of the Deed of Trust on April 14, 1910, which became binding on third parties upon the recording of the Deed of Trust in the public records on July 7, 1910.

“1918 Conveyance of Non Chocolate Assets to Hershey Chocolate Company”- that certain conveyance, effective January 1, 1918, pursuant to which Milton Hershey transferred to the Hershey Chocolate Company the Hershey Transit Company, Elizabethtown and Deodate Street Railway Company, Deodate and Hershey Street Railway Company, Hershey Electric Company, Hershey Water Company, Hershey Bell Telephone Company, Hershey Cuban Railway Company, Campania Agraria Cubana, Hershey Corporation, and the businesses operated as the planing mill, printery, laundry, stable, garage, and other miscellaneous businesses, which included: “Whereas, the Hershey Chocolate Company has acquired and is taking over by conveyance from M.S. Hershey certain lands, being the town of Hershey, Pa., and certain dairies, farms, and the equipment thereof, more particularly described in a schedule thereof prepared and to be annexed hereto, with the income thereof from January 1, 1918, [...] and also certain personal property consisting of shares of stock, [...] of the several companies and businesses hereinafter named, which have been and are being operated in connection with the Hershey Chocolate Company.”^[1] In a letter dated November 14, 1918, M.S. Hershey states that certain land (and related assets) had “for some years past belonged to the Hershey Industrial School, and has been operated, managed, and controlled solely by it, the legal title to the real estate being held by me in trust.”^[2]

“1918 Contribution of Hershey Chocolate Company Stock”- the November 13, 1918 gift by Milton S. Hershey of substantially all the stock he owned in the Hershey Chocolate Company to the Trust, which was then valued at $60,000,000,^[3] which occurred two days following World War I Armistice on November 11, 1918.

“1918 Endorsement of the 1918 Transferred Hershey Chocolate Company Stock Certificate”- that certain endorsement on the riverside of the 1918 Transferred Hershey Chocolate Company Stock Certificate, Number 7, which endorsement reads as follows:

For value Received I hereby sell, assign and transfer unto Hershey Trust Company, Trustee, in trust, for Hershey Industrial School, four thousand nine hundred and fifty eight shares of the Common Capital Stock represented by the within Certificate and do hereby irrevocably constitute and appoint _______________________________ Attorney to transfer the said stock on the Books of the within named Company with full power of substitution in the premises.

 

Dated November 13, 1918

Sealed and Delivered              /s/ M S Hershey [seal]

 in presence of  

/s/ A. M. Mowery

/s/ Wm. J. Harvey

“1918 Letter to Hershey Chocolate Company”- that certain letter dated November 14, 1918, in which M.S. Hershey states that certain land (and related assets) had “for some years past belonged to the Hershey Industrial School, and has been operated, managed, and controlled solely by it, the legal title to the real estate being held by me in trust.”  This letter has a handwritten note initialled by John Snyder which states, in reference to this letter, “Is preserved as a memorandum.”

“1918 Transferred Hershey Chocolate Company Stock Certificate”- that certain Stock Certificate Number 7 dated March 4, 1915 evidencing Four Thousand Nine Hundred and Sixty Eight (4,968) shares of the common capital stock of the Hershey Chocolate Company, incorporated under the laws of the State of Pennsylvania issued to M. S. Hershey as owner, signed by Ezra Hershey as Treasurer of Hershey Chocolate Company and William Murrie as President of Hershey Chocolate Company.

“1918 Transferred Shares of Hershey Chocolate Company Common Capital Stock Shares” - the four thousand nine hundred and fifty eight (4,958) shares of the Common Capital Stock of Hershey Chocolate Company transferred to the Trust pursuant to the 1918 Endorsement of the 1918 Transferred Hershey Chocolate Company Stock Certificate.

 “1919 Decree”- the decree entered by the Court of Common Pleas of Dauphin County, Pennsylvania which authorized the incorporation of the Managers as The Hershey Industrial School, a Pennsylvania nonprofit corporation, a corporation of the first class, which charter was recorded in the Office of the Recorder of Deeds in Dauphin County, Pennsylvania in Charter Book L, Page 282, which also gave rise to the Certificate of Incorporation of The Hershey Industrial School, approved by said Decree of Dauphin County Court of Common Pleas on 12/30/19, having been recorded at Dauphin County Recorder of Deeds Charter Book L, Page 282, etc.  (Docket entries other than No. 712, year of 1963.)

“1919 Deed Modification”- the incorporation of the Managers as The Hershey Industrial School, a Pennsylvania nonprofit corporation, a corporation of the first class, authorized by the Court of Common Pleas of Dauphin County, Pennsylvania, the charter for which is recorded in the Office of the Recorder of Deeds in Dauphin County, Pennsylvania in Charter Book L, Page 282.

“1919 Incorporation of the Managers”- the incorporation of the Managers as The Hershey Industrial School, a Pennsylvania nonprofit corporation, pursuant to Paragraph 28 of the Deed of Trust and the 1919 Decree.

“1923 Literary Digest”- “Chocolate Millions for Charity,” The Literary Digest. Vol. LXXIX No. 9, Dec. 1, 1923.

“1927 Formation of Hershey Chocolate Corporation”- the October 1927 formation and incorporation of Hershey Chocolate Corporation, a Delaware corporation, which was capitalized with all the “chocolate assets” previously owned by Hershey Chocolate Company.^[4]

“1927 Formation of Hershey Estates”- the October 1927 formation and incorporation of Hershey Estates, a Pennsylvania corporation, which was capitalized with all of the non-chocolate assets or “town assets” previously owned by Hershey Chocolate Company.^[5]

“1929 Stock Market Crash”- the event generally referred to today as “Black Thursday,” which marks the Stock Market crash on October 24, 1929. ^[6]

“1932 Snavely”- Snavely, J. R. A Chat with Mr. Hershey. 1932.

“1933 Decree”- the Decree dated October 30, 1933 issued in connection with the 1933 Petition by the Court of Common Pleas of Dauphin County, Pennsylvania, in Equity.

“1933 Deed Modifications”- revision of the Original Deed of Trust by the Court’s 1933 Decree which modified the Original Deed of Trust (1) to expand the class of orphans served by the school, as follows: (a) the maximum age range for admission of poor, healthy, white male orphans was expanded from between four and eight years of age to between four and fourteen years of age; and (b) otherwise qualified boys whose mothers were deceased but whose fathers were still living were made eligible for admission and (2) to add this provision, “No person employed by the school, in any capacity, in connection with which any compensation or expenses are directly or indirectly paid, shall at the same time serve as a member of the Managers of The Hershey Industrial School,” as Paragraph 29 of the Deed of Trust; Milton S. Hershey joined in said 1933 Petition.^[7]

“1933 M.S. Hershey Declaration and Joinder”- the Declaration of Intent and Joinder of Milton S. Hershey, filed by Milton S. Hershey in connection with the 1933 Petition, dated October 27, 1933.

“1933 Paul Reed Memo”- the memorandum dated November 10, 1933, from Mr. Paul Reed to Mr. W. v.Tresckow, Assistant Vice President regarding Suggestions to Mr. Hershey and Associates.

"1933 Petition”- the Petition for Modification of Trust, dated October 27, 1933, filed in the Court of Common Pleas of Dauphin County, Pennsylvania, in Equity, Equity Docket, Number 1096, filed by The Hershey Industrial School, a nonprofit corporation as the petitioner, by leave of the Attorney General.^[8]

“1935 Description of HIS”- A Brief Description of The Hershey Industrial School, 1935 Edition, 1935.

“1935 HJC Trust” or “The M.S. Hershey Foundation” or “M.S. Hershey Foundation”- The M.S. Hershey Foundation, created pursuant to that certain Agreement of Trust, between Milton S. Hershey, as Donor, and Hershey Trust Company, as Trustee, and M.S. Hershey, Ezra F. Hershey, William F.R. Murrie, P.A. Staples, S.C. Stecher, P.N. Hershey, and William H. Earnest, as Managers, dated December 5, 1935, for the purpose of creating and endowing in perpetuity a Foundation for educational purposes to be known as “The M.S. Hershey Foundation.”

“1935 Living Trust of Milton Hershey”- the Declaration of Trust, dated August 22, 1935, regarding the transfer, assignment and delivery of 1250 shares of the capital stock of the Hershey Trust Company from Milton S. Hershey to Milton S. Hershey, as trustee, in trust for the benefit of the Trust, pursuant to which Milton Hershey gave the economic value of such shares to the Trust but retained all voting rights.

“1935 Map of HIS Units”-the map titled “Location of Hershey Industrial School Units,” dated March 1935 and numbered 1354.

“1939 Murrie”- Murrie, Richard Wallace^[9] The Story Behind a Hershey Bar, the History of the foundation and subsequent growth of the Hershey Chocolate Corporation and the simultaneous development of the model industrial community of Hershey, Pennsylvania. Senior Thesis, Department of History, Princeton University, 1939

“1944 Milton Hershey Will”- the will dated September 29, 1944 of Milton S. Hershey, that is, Milton Hershey’s 1944 Final Will.

“1945 Residual Derry Township School District Trust”- that certain trust created pursuant to the 1944 Milton Hershey Will, pursuant to which Milton Hershey bequeathed all of the rest and residue of his estate “to Hershey Trust Company, of Hershey, Pennsylvania, in trust, nevertheless, to hold, invest and reinvest in such securities as may seem best in the judgment of the Directors of said Trust Company, and order and direct my said Trustee to pay the income thereof in semi-annual installments to the School District of Derry Township, Dauphin County, Pennsylvania, for the use of said School District, particularly for the purpose of assisting such Township to relieve the tax burden for the upkeep and maintenance of the public school in said District.”

“1946 Houseparent Handbook”- Official Handbook for the House-Parents of The Hershey Industrial School, Hershey, Pa. May, 1946. The Handbook was first developed in 1945 and was adopted by the Administrative Staff of the School in 1946.

“1947 Alumni Association Petition for Incorporation”- the Application for a Charter for a Domestic Nonprofit Corporation, for The Hershey Industrial School Alumni Association, dated January 30, 1947, in the Court of Common Pleas of Dauphin County, Pennsylvania, No. 213, January Term, 1947, filed in the Office of the Prothonotary of Dauphin County on February 14, 1947.

“1947 Alumni Association Incorporation Decree”- the decree by the Court of Common Pleas of Dauphin County, on March 17, 1947, which decree provided that upon the recording of the Articles of Incorporation and this Order, that the Alumni Association would be incorporated and the Alumni Association was incorporated on March 17, 1947.^[10] 

“1948 Hershey”- Hershey, John O. The Development of an In-Service Training Program for House-Parents of the Hershey Industrial School.  University of Pennsylvania, 1948. This report was submitted in partial fulfillment of the requirements for the degree of Doctor of Education.           

“1950 Gumpher” - Gumpher, Joseph S. Institutional Trust Service. New Burnswick: Rutgers University, 1950. This document was submitted in partial fulfillment of the requirements for The Graduate School of Banking conducted by the American Bankers Association at Rutgers University.

“1950 Hershey”- Hershey, John O. The Alumni of The Hershey Industrial School, Information Concerning Them and What They Say About Their Alma Mater. Hershey, PA: The Hershey Industrial School, 1950.

“1950 Houseparent Handbook”- Bobb, James E., John J. Daniel, John O. Hershey eds. The Houseparent Handbook, a Guide for the Houseparents of The Hershey Industrial School. Hershey, Pennsylvania: The Hershey Industrial School, 1950. The Handbook was first adopted in May 1946; was then revised in Jan. 1947 and again in Jan. 1948; it was first printed in this 1950 edition. The printing was done by the students of The Hershey Industrial School.  At that time, John O. Hershey was Director, Student Personnel Department, and he edited this Guide in collaboration with James E. Bobb, Superintendent Farm-Home Division, and John J. Daniel, Superintendent Junior Division.

“1950 Wallace”- Wallace, Paul A. W. THE CHOCOLATE KING, The Story of M.S. Hershey.  Unpublished essay, circa 1950s. This was commissioned by the Milton Hershey School.

 “1951 Decree”- the decree entered in Dauphin County Orphans' Court Docket No. 824, on December 17, 1951, which also gave rise to an Amendment to the Articles of Incorporation of the Managers recorded in the Office of the Recorder of Deeds in and for the County of Dauphin in Charter Book "P", at page 658 and further amended on December 24, 1951 in Charter Book "T" at page 273.

“1951 Deed Modification”- the change from use of the name “The Hershey Industrial School” to use of the name “Milton Hershey School,” authorized by the 1951 Decree.^[11]

“1951 Deed of Trust”- Milton Hershey’s Deed of Trust as modified by the 1951 Decree.

“1951 Petition”- the Petition for Modification of Trust, In Re Petition of The Hershey Industrial School for Modification of Trust, No. 824 – 1951, in the Orphans’ Court of Dauphin County, Pennsylvania, dated December 12, 1951, filed by The Hershey Industrial School, a Pennsylvania nonprofit corporation, by leave of the Attorney General.

“1957 Snavely”- Snavely, Joseph R. An Intimate Story of Milton S. Hershey. Harrisburg: J. Horace McFarland Company, 1957.

“1959 Anniversary Lectures”- Faculty and Students of the Printing Curriculum. The Anniversary Lecture Series. Hershey: Milton Hershey School, 1959-1960. This series was sponsored “as one of the ways of celebrating the fiftieth anniversary school year (1959-60) of this professional institution founded and endowed by the late Milton S. Hershey in November 1909.”^[12]

“1959 Home Division Handbook”- Gibble, Alfred T., John O. Hershey, Richard A. Rudisill. eds. The Home Division Handbook, a Guide for the Houseparents of Milton Hershey School.  Hershey, PA: Milton Hershey School, 1959.^[13]

“1960 Rudisill”- Rudisill, Richard A. A Survey of Alumni of Milton Hershey School Since 1949, A Paper Presented in Partial Fulfillment of the Requirements in Education 800. University of Pennsylvania, 1960.

“1962 Rudisill”- Rudisill, Richard A. Milton Hershey School, The First Fifty Years. Diss. University of Pennsylvania, 1962. Pn362.7, R835. This document was submitted in partial fulfillment of the requirements for the degree of Doctor of Education, Studies in Education No. 130. It was approved Nov. 1962 (Maria Hosmer Penniman Library of Education).^[14]

 “1963 Decree”- the Decree entered in Dauphin County Orphans' Court Docket No. 712 of 1963 on August 23, 1963, by Judge Lee F. Swope, entered the same day as the day on which the 1963 Petition was filed with said Court.

“1963 Education Division Handbook”- the Educational Division Handbook, A Guide for the Teachers of Milton Hershey School, Revised 1963-64.

“1963 Hershey Chocolate"- Hershey Chocolate Corporation. The Story of Hershey the Chocolate Town. Hershey, Pennsylvania: 1963.

“1963 Petition”- the cy pres petition filed in Dauphin County Orphans' Court Docket No. 712 of 1963 on August 23, 1963. 

“1964 Nurick Letter to BOM”- Nurick, Gilbert. Opinion Letter to the Board of Managers. 22 July 1964. McNees, Wallace & Nurick, Attorneys at Law.

“1968 Decree”- the Decree entered in Dauphin County Orphans' Court Docket No. 712 of 1963 on December 17, 1968 entered by Lee F. Swope, which 1968 Decree, among other things, authorized the transfer of ownership and control of The Milton S. Hershey Medical Center from The M.S. Hershey Foundation to The Pennsylvania State University.   The 1968 Petition was filed on December 17, 1968, the 1968 Degree was entered on December 17, 1968 and the 1968 Decree was recorded on December 17, 1968, 712 of 63, O.C. Book Vol. J-4, Page 238 / Clerk of Orphans Court, without notice or a hearing.

“1968 Nurick Opinion re Girard”- the May 13, 1968 Opinion of Gilbert Nurick, Counsel to the Board of Managers of Milton Hershey School, pursuant to which the racially restrictive admissions requirement was terminated.

“1968 OAG Opinion re Girard”- June 4, 1968 Opinion of William C. Sennett, Attorney General of Pennsylvania, pursuant to which racially restrictive admissions requirement was terminated.

“1968 Petition”- the Petition for Modification of the Decree of the Orphans’ Court of Dauphin County Dated August 23, 1963, filed in the Orphans’ Court of Dauphin County, Pennsylvania No. 712, 1963, as In Re: Petition of Hershey Trust Company, Trustee for The M.S. Hershey Foundation, for Modification of the Decree of the Orphans’ Court of Dauphin County, Pennsylvania, dated August 23, 1963, to Substitute The Pennsylvania State University as Trustee of The Milton S. Hershey Medical Center.^[15]

“1968 Senior Division Guidebook”- Senior Division Guidebook, the Milton Hershey School, 1968.

“1969 Hammond”- Hammond, W. Allen. A Man and His Boys, 60^th Anniversary 1909-1969. Manheim, PA: Stiegel Printing Company, 1969.

“1970 Decree”- the Decree of the Orphans’ Court Dauphin County, Pennsylvania, entered in Dauphin County Orphans' Court Docket No. 712 of 1963 on December 24, 1970, signed by Lee F. Swope.  The 1970 Petition was filed on December 24, 1970, the 1970 Degree was entered on December 24, 1970 and the 1970 Decree was recorded on December 24, 1970, 712 of 63, O. C. Book Vol. Q-4, Page 129/ Clerk of Orphans Court, without notice or a hearing.

“1970 Deed of Trust”- the 1951 Deed of Trust as modified by the 1970 Decree.

“1970 Deed Modifications”- the numerous changes to the Deed of Trust effected by the 1970 Decree, which includes (1) elimination of all references in the Deed of Trust that restricted admission to the school to “white” orphans; (2) authorizing the payment of reasonable expenses incurred by the Managers’ in the performance of their duties; (3) authorizing officers, counsel and consultants who were compensated employees of the school to also serve as Managers; (4) authorizing the examination of Trust investment securities to be performed by certified public accountants rather than the Managers; (5) authorizing the Managers to delegate investment decisions to an Investment Committee; (6) extension of the age of admission to sixteen years (that is, that the child not have reached his 16th birthday); (7) acknowledging the expansion of the school beyond land originally conveyed by the Original Deed of Trust; (8) elimination of the requirement in the Deed of Trust that “No orphans shall be admitted until” Indentured; (9) elimination of the requirement that proceeds from the sale of land be used solely to purchase additional land; (10) expressly authorizing students to remain at the school until they completed their secondary education, even if they remained past their eighteenth birthday; and (11) the incorporation of all prior modifications of the Original Deed of Trust into a Restated Deed of Trust.^[16]

“1970 Petition”- the cy pres petition, Petition for Modification of Trust, filed in Dauphin County Orphans' Court Docket No. 712 of 1963 on December 24, 1970.

“1970 Petitioners”- the petitioners under the 1970 Petition.

“1971 Hostetter”- Hostetter, Herman H. The Body, Mind and Soul of Milton Snavely Hershey, 1971. Hostetter was M.S.’s personal doctor.^[17]

“1973 Klotz”- Klotz, Richard Russell. The Rise and Demise of the Hershey Junior College, an Historical – Descriptive Study of the Hershey Junior College, Hershey, Pennsylvania, 1938-1965.  Manheim, PA: Stiegel Printing, Inc. 1973.

“1976 Declaration of Fellowship”- Milton Hershey School Alumni Association. The Unanimous Declaration of Fellowship – 1976. 24 Apr. 1976.

 “1976 Decree”- the Decree entered in Dauphin County Orphans' Court Docket No. 712 of 1963 on November 15, 1976, signed by Lee F. Swope." The 1976 Petition was filed on November 15, 1976, and the 1976 Degree was entered on November 15, 1976, without notice or a hearing.

“1976 Deed of Trust”- the 1970 Deed of Trust as modified by the 1976 Decree, which has been designated the “Second Restated Deed of Trust.”

“1976 Deed Modifications”- the numerous changes to the Deed of Trust effected by the 1976 Decree, which includes (1) elimination of all references to the restriction of admission to “males”; (2) elimination of the requirement that students be biological orphans, and allowing admission if a child was not receiving adequate parental care from one of his or her natural parents, even though both of the child’s natural parents were living; (3) correction of the spelling of Catherine S. Hershey’s first name; and (4) the incorporation of these 1976 modifications into a Second Restated Deed of Trust.^[18]

“1976 Petition”- the cy pres petition, Petition for Modification of Trust, filed in Dauphin County Orphans' Court Docket No. 712 of 1963 on November 15, 1976.

“1983 Castner”- Castner, Charles Schuyler. One of a Kind, Milton Snavely Hershey 1857-1945. Hershey, PA: The Kutztown Publishing Co. Inc., 1983.

“1984 Alumni Association Articles of Amendment”- the Articles of Amendment – Domestic Nonprofit Corporation of the Milton Hershey School Alumni Association filed on June 5, 1984 with the Secretary of the Commonwealth, Department of State, Commonwealth of Pennsylvania, in which it is stated that the Alumni Association was incorporated on March 17, 1947.

“1988 MHS Market Plan”- the “Market Plan for Milton Hershey School,” prepared by Rita H. Borden, Senior Marketing Consultant, Independent School Management, 1316 N. Union Street, Wilmington, Delaware 19806, dated November 11, 1988.

“1990 Hershey”- “Hershey Community Archives, Oral History Program, Dr. John O. Hershey.” 28 Aug. 1990. Hershey, PA: Hershey Community Archives.

“1990-1991 Board of Managers”- the Board of Managers who developed and approved the 21^st Century Initiative who knew that changes to the Deed of Trust and Orphans’ Court approval were necessary to the proper determination of whether the 21^st Century Initiative could be implemented and authorized and/or required the preparation of the Proposed Third Restated Deed of Trust.

“1991 Trust Agreement”- the Trust Agreement, dated January 1, 1991, by and between Milton Hershey School, as Settlor, and the Hershey Trust Company, as Trustee.           

“1992 Bryce Jordan Study”- Jordan, Bryce, John T. Whatley. The Milton S. Hershey School: A Brief Study of the Institution with Conclusions and Recommendations. 20 July 1992. Jordan was the President Emeritus of Pennsylvania State University and Whatley was President of Whatley Associates.

“1992 Hershey Heritage Re John Snyder”- Reese, Robert M. Rotary Club of Hershey, Our Hershey Heritage, November – December 1992, Our Hershey Heritage, December 7, 1992, The Lawyer, Judge John Snyder. 7 Dec. 1992.  Hershey Foods Corporation.

“1996 Hershey Chronology”- Hershey Community Archives. The Hershey Chronology, 1724 to Present. Hershey, PA. 25 Apr1996.

“1997 Relationship Memo”- the July 11, 1997 Memo from Mavis Kelley and Robert Stets, Esq. to Ralph Carfagno and Graham McIntyre regarding Range of Relationship.

“1998 Deed Modification”- The Honorable Judge Warren G. Morgan’s ruling in the Orphans’ Court’s confirmation of the Twenty-Second and Partial Accounting dated August 12, 1998 that “[…] this Court confirming that it is appropriate for the School, from time to time, to provide minor, incidental direct support to, and/or permit the minor, incidental use of assets/facilities of the School by, certain third parties and members of the public, without charge (or for nominal charge), where such support and/or use has been determined by the School, in its discretion, to further the charitable purpose of the School, as described in the Petition for Adjudication.”^[19]

“1999 Adjudication”- the Adjudication dated December 7, 1999 entered in Dauphin County Orphans' Court Docket No. 712 of 1963 and signed by the Honorable Judge Warren G. Morgan.^[20]

“1999 – 2002 Alumni Association Legal Counsel”- Mayer, Brown & Platt, which by agreement became Mayer, Brown, Rowe & Maw in February 2002, ^[21] which served as legal counsel to the Alumni Association from the beginning of 1999 through the end of 2002 on a pro bono basis.

“1999 Amicus Brief”- the Brief of Milton Hershey School Alumni Association, authored by Mayer, Brown & Platt as counsel for the Alumni Association, filed by John F. Halbleib, Esq., as a partner in Mayer, Brown & Platt, John F. Mardula, Esq., as Vice President and Counsel of the Alumni Association and Michael J. Wilson, Esq., as local pro bono counsel, in the Orphans Court in opposition to the 1999 Cy Pres Petition (that is, opposing CHILD and the Greenway Easement), on behalf of the Alumni Association, dated July 23, 1999.

“1999 Cy Pres Petition”- the Petition for Cy Pres Award of Portion of Accumulated Income and Authorization for the Execution and Delivery of Certain Easements Cy Pres, signed January 19, 1999 and filed in Dauphin County Orphans' Court Docket No. 712 of 1963 in February 1999, by the Milton Hershey School, a Pennsylvania nonprofit corporation, as the Managers, and the Hershey Trust Company, as Trustee, of the Milton Hershey School Trust.

“2001 MHS Chronology”- Brechbill, Joseph A. A Chronology of Milton Hershey School. Historical Records, May 1997. Rev. 5 Feb.  2001.

“2002 Central Pa Magazine”- Rohland, Pamela. “What Would Milton Do?, Hershey: The Man, The Community and Change.” Central PA Magazine, Nov. 2002, Vol. 22 No. 5.

“2002 OAG Dialogues”- the dialogues which began in early calendar year 2002, among the Alumni Association, Board of Managers and OAG.

“2002 Stark Part I”- Stark, Craig. “Part I: The Legacy of Milton S. Hershey.” Harrisburg Magazine Nov. 2002, Vol. 8, No. 11.

“2003 Alumni Association Petition” - that certain petition, dated September 4, 2003, filed by the Milton Hershey School Alumni Association, a Pennsylvania nonprofit corporation, in the Court of Common Pleas, Orphans’ Court Division, Dauphin County, Pennsylvania, in equity proceeding Milton Hershey School and Hershey Trust Company, trustee of Milton Hershey School Trust, No. 712, Year of 1963.

“2003 Decrees” - those certain Orders, dated November 19, 2003, entered by the Orphans’ Court denying the Alumni Association standing and dismissing the 2003 Alumni Association Petition.

“2003 Hearing Transcript” - that certain Transcript of Proceedings, Preliminary Objections to Petition to Show Cause before the Honorable Warren G. Morgan, dated November 10, 2003, in connection with the 2003 Alumni Association Petition.  

“2003 MHS Alumni Directory” - Milton Hershey School, Alumni Directory, 2003, Bernard C. Harris Publishing Company, Inc., 2003, Purchase, New York.

“2003 Opinion” - that certain Opinion, dated November 19, 2003, of the Honorable Judge Warren G. Morgan, issued in support of the Orphans Court’s 2003 Decrees, denying standing to the Alumni Association and dismissing the 2003 Alumni Association Petition.

“2004 MHS Chronology”- Brechbill, Joseph A., D.ED, Curator and Dodge, Helen S., M.S., Director, Board and Visitor Relations, Chronology, Milton Hershey School, Historical Records of the Milton Hershey School, Rev. 20 April 2004.

 “21^st Century Initiative”- that certain Milton Hershey School: Its Mission, Purpose Goals and Strategies, Report and Recommendations, By A Joint Committee of Board and Staff Comprised of Rod J. Pera, Chairman, Joseph A. Brechbill, D. Rodney Chamberlain, William R. Fisher, Kenneth V. Hatt, Alan R. Malkoff, J. Bruce McKinney, Rodney E. McLaughlin, Robert L. Oesterling, John F. Rineman and D. Michael Weller, approved by the Board of Managers on February 8, 1990.

“22^nd Trust Accounting”- the Twenty-Second and Partial Account, Docket Entries at No. 712 of 1963, Accountings - Applicable Years: 08/01/93 to 07/31/96, Confirmed by Court on August 12, 1998.

“23^rd Trust Accounting”- the Twenty-Third and Partial Account, filed on October 6, 2000 in Docket Entries at No. 712 of 1963, Accountings - Applicable Years: 08/01/96  to 07/31/99, Date Confirmed by Court: Open.

“Alumni”- in the context of the Hersheys’ Children’s Home, all Former Students.

“Alumni Association”- from 1930 through March 16, 1947, Milton Hershey’s Alumni Association, and from March 17, 1947, the Milton Hershey School Alumni Association, a Pennsylvania nonprofit corporation.

 “Alumni Association Board” - the Board of Directors of the Alumni Association.

“Alumni Association History” - Milton Hershey School Alumni Association. The History of the Milton Hershey School Alumni Association. May 2002.

“Alumni Association Member” - a member or the Alumni Association in good standing.

“Alumni Scholar Programs” - the (i) residential, campus based, direct programs for Scholars, as well as (ii) other indirect programs for Scholars, which programs could extend well beyond a Scholar’s receipt of such Scholar’s Minimum Education, age 18 (and in fact well beyond age 21) and a high school education, which Alumni Scholar Programs the Hersheys mandated under the Deed of Trust that the Managers must, and gave the Managers broad discretion to, design and implement.

“America’s Six Depressions”^[22] - refers to the six depressions in American history that are thought to be the worst since detailed records of economic data started to be kept (around 1867), which are as follows: 1873 – 1879, 1893 – 1897, 1907 – 1908, 1920 – 1921, 1929 – 1933, and 1937 – 1938.

“Attorney General” - the Attorney General of the Commonwealth of Pennsylvania.

“August 3, 2000 MHSAA Memo” - the Memorandum, dated August 3, 2000, to William L. Lepley, President and CEO, Milton Hershey School, from John F. Mardula, President, Milton Hershey School Alumni Association, regarding Paragraph 5(a) of the Relationship Agreement, founders park, Campus Consolidation and Trust Land Generally.

“August 22, 2000 MHSAA Memo” - the Memorandum, dated August 22, 2000, from Milton Hershey School Alumni Association, to Andrew Cline and Richard Thornburgh of Kirkpatrick & Lockhart, Special Counsel, with copies to members of the MHS Board of Managers, Ad Hoc Oversight Committee (A. John Gabig, Esq., Lucy D. Hackney, Esq., Reverend John S. McDowell, Jr., and Ms. Wendy D. Puriefoy) and Mark Pacella and Linda Williams of the Office of the Attorney General, with enclosures, regarding the farm program and land.

“Basic Benefits” - the food, clothing, lodging, health services, physical training, exercise and recreation as contemplated by the first sentence of Paragraph 17 of Milton Hershey’s Deed of Trust,^[23] as well as a Minimum Education and School Family Benefits.

“Basic Capital for Success” - the Trust’s investment of Basic Benefits in Current Beneficiaries.

“Beneficiaries” - all Contingent Beneficiaries and all Current Beneficiaries.

“Bias, Flaw, & Avoidance” - Alumni Association. “Bias, Flaw, & Avoidance: A Response to the K&L Report.” 16 October 2000.

“Board of Managers” - term used in the Deed of Trust, meaning (1) from April 14, 1910, the date on which the original Managers accepted under the Deed of Trust, the individual Managers named in the Original Deed of Trust and their respective successors, collectively as a fiduciary under the Deed of Trust, through December 29, 1919, who where from amongst their group to elect officers of the Managers following a corporate governance model,^[24] and (2) on and after December 30, 1919, the Board of Directors of the Milton Hershey School, a Pennsylvania nonprofit corporation, collectively, who where from amongst their group to elect officers of the Managers following a corporate governance model. 

“Business” - the “Industrial” component of The Hershey Industrial School. The Hershey Industrial School is comprised of three major components, each of which is reflected in the name “The Hershey Industrial School.”^[25] “Industrial” represents the various businesses, including the Hershey Chocolate Company which the Hersheys created. In 1918, Milton Hershey first transferred ownership and control of all other businesses to the Hershey Chocolate Company. Then, he transferred ownership and control of the Hershey Chocolate Company to the Trust. In 1927, all of the non-chocolate businesses (including most of the land then owned by the Hershey Chocolate Company (including the town of Hershey), which was transferred on November 12, 1927, but excluding the assets related to the Cuban operation) were transferred to Hershey Estates, which was wholly owned by the Trust. In 1927, the Hershey Corporation was created to hold all sugar interests in Cuba.  It was also owned by the Trust. The funding for these resources came primarily from the Hersheys, the Trust or businesses owned or controlled by the Trust. Throughout, this component of The Hershey Industrial School is referred to as “Business.”

“Character Education” - the moral and religious training, training to speak the truth at all times, and training in the habits of economy and industry contemplated by Paragraph 18 of Milton Hershey’s Deed of Trust.^[26]

“CHILD” - the Catherine Hershey Institute for Learning and Development as proposed in the 1999 Cy Pres Petition.

“Christianity Defined” - Reformed Mennonite Church. Christianity Defined. Lancaster, Pennsylvania: Rudisill & Company, Incorporated, 1958.

“Community” - the “Hershey” component of The Hershey Industrial School. The Hershey Industrial School is comprised of three major components, each of which is reflected in the name “The Hershey Industrial School.”^[27] “Hershey” represents the community of Hershey, Pennsylvania, which the Hersheys founded. Hershey includes Derry Township and certain surrounding land. In 1918, Milton S. Hershey conveyed Hershey to the Hershey Chocolate Company, and then transferred ownership and control of the Hershey Chocolate Company to the Trust. On November 12, 1927, Hershey was transferred to Hershey Estates, which was wholly owned by the Trust. The funding for the improvements to Hershey (e.g., the Community Building and Theatre) came primarily from the Hersheys, the Trust, or businesses owned or controlled by the Trust. Throughout, this component of The Hershey Industrial School is referred to as “Community.”

“Community Building” - the Community Building and Theatre, housing the Hershey Community Theatre and the Community Center, which was dedicated during the thirtieth anniversary celebration of the town, September 1 through 4, 1933. As early as 1915, Milton Hershey possessed architect's drawings for the construction of a community building, but the arrival of World War I overclouded any such construction venture. As Mr. Hershey tightened his belt, the architect's plans were put away and virtually forgotten. The Hershey Community Building and Theatre, originally planned for construction in 1916, would not be constructed until 1929. The Community Building and Theatre were constructed during the Great Depression as part of Hershey's great building campaign. The Community Building and Theatre were built following the original 1916 plans drawn by C. Emlen Urban, a noted Lancaster, PA architect, with construction under the supervision of D. Paul Witmer. When completed, the building solidly stood in the center of town, spanning the block between Chocolate and Caracas Avenues, and bordered by Cocoa Avenue. It occupied sites once owned by Milton Hershey's mother and the McKinley School.^[28] The cost was $3,000,000 and it was funded by the Trust, from profits derived from Hershey Corporation.

“Constitution” - the Constitution of Milton Hershey’s Alumni Association.

“Contingent Beneficiary” - each natural person who is able to satisfy the Requirements for Admission, but who is not at the time a Current Beneficiary.

“Copenhaver” or “George Copenhaver” - George Copenhaver, first employed by Milton Hershey to be the Superintendent of Farms. When the School was founded he was named the School’s first Superintendent. He is buried in the Hershey Cemetery. For more information regarding George Copenhaver, refer to Section 2.10 1938 Death of George Copenhaver.

“Copenhavers” - George Copenhaver and his wife, Prudence. Even though The Homestead was no longer suitable for the number of students enrolled in the School, it continued to serve as the central office and residence of key administrators: the first superintendent Copenhaver and his wife resided there until their deaths. (George - 1938; Prudence - 1949). In the words of Milton Hershey “Much of the credit for the success of the lives of the students of the school was due and is due to the splendid work of Mr. and Mrs. Copenhaver. They have been real parents to all the boys who have come under their loving and thoughtful care. Mr. Copenhaver did a fine work in all the years he devoted to these young men, and his influence for good will continue in the many years ahead of the students whose lives he touched.”^[29] 

“Current Beneficiary” - each natural person who has satisfied the Requirements for Admission, has been admitted to the School and continues to receive, or continues to be entitled to receive, benefits from the Trust because such person (i) has not been discharged, (ii) has been discharged but continues to receive, or is entitled to receive, benefits from the Trust because such person remains a Scholar whose Scholar Education Completion Date has not occurred, or (iii) is a Former Student receiving School Family Benefits.

“Deed of Trust” - the Original Deed of Trust, as revised through authority of the court and now evidenced by the 1976 Second Restated Deed of Trust and as further described in Appendix VII: Deed of Trust – As of Date of Publication in 2005; Restatement of the Deed of Trust recorded in the Office of the Recorder of Deeds in Chapter Book “L”, Vol. 2, Pages 459, 463, and 464-482.

“Dependent” - a child’s status that has resulted from extreme financial need and social need, to a degree where the child is in need of substantially year-round residential care by the Hersheys’ Children’s Home such as that which was intended by the Hersheys, as well as the material goods, services, development and education provided by the Trust, where “financial need” means a degree of dependency which demonstrates a household whose total income is such that the child’s healthy development is severely impeded, where the basic necessities of life are not consistently available, and where poverty is of such a degree that the impact on the child’s well-being is unquestionable, and “social need” means a degree of dependency which demonstrates a complete lacking of any parental care whatsoever from at least one parent, and a lacking of adequate care from such child’s other parent, guardian or other authority.

“Direct Education” - that education which is provided directly by the School.^[30]

“Discretion” - the authority and responsibility delegated by the Hersheys under the Deed of Trust and to be exercised by the Trustee or the Managers responsibility to exercise judgment, which includes (without limitation) that which the Hersheys mandated the Managers must, and gave the Managers broad discretion to, design and implement both (i) residential, campus based, direct programs for scholars, as well as (ii) other indirect programs for scholars, which programs could extend well beyond 18 (and in fact well beyond age 21) and a high school education.^[31]

“Education” - the “School” component of The Hershey Industrial School.  The Hershey Industrial School is comprised of three major components, each of which is reflected in the name “The Hershey Industrial School.”^[32] School represents the education system which the Hersheys created within Derry Township, including those that were public and those that were not. The funding for these resources came primarily from the Hersheys and the Trust, as well as the community of Hershey primarily through taxes. Throughout, this component of The Hershey Industrial School is referred to as “Education.”

“Education Completion Date” - (a) in the case of each Orphan, the earlier of (i) the first date upon which such person (A) from November 15, 1909 through December 23, 1970, reaches 18 years of age and (B) on and after December 24, 1970, completes the full course of secondary education being offered by the School, and (ii) the date on which such person suffers an Orphan Termination Event, and (b) in the case of each Scholar, the earlier of (i) the first date upon which such Scholar has received his or her Scholar Capital for Success and (ii) the date on which such person suffers a Scholar Termination Event.

“Former Commendable Students” - all former students who left the school with a “commendable record.”

“Former Good Students” - all former students who left the school with a “good record,” which would include Former Commendable Students.

“Former Students” - all former students of the school, which would include Former Good Students and Former Commendable Students.

“Great Depression” - the economic period generally referred to as the “Great Depression”^[33] which began with the 1929 Stock Market Crash and ended with the United States of America’s entry into World War II in December 1941, and which is not a single depression but rather two economic depressions (the first began in 1929 and continued to 1933 and the second began in May 1937 and continued to 1938) between which there was an incomplete economic recovery.  This period was marked by widespread unemployment.^[34]

“Gumpher” or “Joseph Gumpher” - an alumnus of HIS, Class of 1936, and President of Milton Hershey’s Alumni Association from 1938 through 1939 and its Past President from 1940 through 1941, who in 1959 became the second Original Alumni Association Member to become a Manager. 

“Hammond” or “W. Allen Hammond” - Principal of Milton Hershey School, 1934 – 1959 and author of A Man and His Boys, 60^th Anniversary 1909-1969.

 “HERCO” - Hershey Estates, a Pennsylvania corporation formed pursuant to the 1927 Formation of Hershey Estates, which changed its name to “HERCO, Inc.” in 1976, and then changed its name to “Hershey Entertainment & Resort Company” in 1980. HERCO is used more commonly after 1976.

“Hershey” - the unincorporated community that became known as “Hershey” in 1906 to satisfy the USPS’s requirement that the new Post Office have a name, and which remains unincorporated to this day. “Hershey” represents the community of Hershey, Pennsylvania, which the Hersheys founded. Hershey includes Derry Township and certain surrounding land. In 1918, Milton S. Hershey conveyed Hershey to the Hershey Chocolate Company, and then transferred ownership and control of the Hershey Chocolate Company to the Trust. On November 12, 1927, Hershey was transferred to Hershey Estates, which was wholly owned by the Trust. The funding for most of the improvements to Hershey (e.g., the Community Building and Theatre) came primarily from the Hersheys, the Trust or businesses owned or controlled by the Trust.

“Hershey Chocolate Company” - (1) from its initial formation as an unincorporated business, through its first production of chocolate on January 1, 1894 as a subsidiary of the Lancaster Caramel Company and until the 1908 Incorporation of Hershey Chocolate Company, the unincorporated Hershey Chocolate Company, and (2) upon and following the 1908 Incorporation of Hershey Chocolate Company and until the 1927 Formation of Hershey Chocolate Corporation, the incorporated Hershey Chocolate Company. 

“Hershey Chocolate Corporation” - the Hershey Chocolate Corporation, a Delaware corporation, which resulted from the 1927 Formation of Hershey Chocolate Corporation.

“Hershey Corporation”^[35] - created in 1927 to hold all sugar interests in Cuba.  It was owned by the Trust. 

“Hershey Estates” - Hershey Estates, a Pennsylvania corporation formed pursuant to the 1927 Formation of Hershey Estates, which changed its name to “HERCO, Inc.” in 1976, and then changed its name to “Hershey Entertainment & Resort Company” in 1980.

“Hershey Foods” or “HFC” - Hershey Foods Corporation.

“Hershey High” - the various school (vocational and otherwise) which constituted the high school program in Derry Township School District, Derry Township, Dauphin County, Pennsylvania.^[36]

“Hershey Industrial School” or “HIS” - the School from November 15, 1909 to December 16, 1951, which became known as “Milton Hershey School” on December 17, 1951.

“Hershey Interests” - the various businesses from time to time owned or controlled by Milton Hershey or the Trust, which includes, but is not limited to, the Hershey Improvement Company, Hershey Estates, Hershey Trust Company, the Hershey Bank, Hershey Chocolate Company, Hershey Corporation, Hershey Chocolate Corporation, the school, etc.

“Hershey Junior College” or “HJC” - the Hershey Junior College, established by The M.S. Hershey Foundation in 1938. In 1938, three years after The M.S. Hershey Foundation was established, the Hershey Junior College opened, offering tuition free higher education to all Derry Township residents. Housed in the Community Building, the Hershey Junior College maintained high academic standards and helped many Hershey residents receive a college education. Hershey Junior College closed in 1965.^[37]

“Hershey Trust Company” or “HTC” - the Hershey Trust Company, which was formed in 1905.

“Hersheys” - “Milton S. Hershey and Catherine S. Hershey, his wife, of Hershey, Derry Township, Dauphin County, Pennsylvania, parties of the first part” under the Deed of Trust. 

“Hersheys’ Children’s Home” - a children’s home of the type, nature and programs intended by the Hersheys under the Deed of Trust, giving full effect to the resources of the Trust. The Hersheys’ Children’s Home is the School and all of its components, which is a children’s home for the Current Beneficiaries, that is dependent, at-risk children, who are in need of substantially year round institutional care by a children’s home such as that intended by the Hersheys for the full development of each Current Beneficiary as a whole person according to such person’s unique abilities, interests and commitment.

“Hersheys’ Children’s Home Campus” - substantially all of Derry Township and the surrounding land that from time to time is acquired for School purposes and adjoins or is conveniently near School property as contemplated by the first recital and Paragraph 7 of the Deed of Trust, which includes the “ideal community” of Hershey which serves as the “home” of the Beneficiaries.

“Hersheys’ Children’s Home Development Plan” - the step-by-step development plan pursuant to which the Hersheys pursued a wise plan through which they built The Hershey Industrial School.^[38]  Their end was achieved, but the achievement was no small task.  To achieve their objectives, it was prudent for the Hersheys to pursue their philanthropy in the following sequence:

1. The philanthropy required a profit driven economic engine to fund it.  Thus, the Hersheys created, and verified the economic viability of, the Business component (e.g. Hershey Chocolate Company, which serves as the profit driven economic engine that funds the philanthropy), while at the same time providing employment and stability to the Community (which is the Home of each Current Beneficiary).
2. To build a permanent “ideal community,” they would need a large land area.  Inasmuch as Lancaster (the original site of operation of Lancaster Caramel Company and Hershey Chocolate Company) was somewhat already developed, Lancaster would not suffice.  Thus, the Hersheys had to locate a large area of land well suited to producing chocolate, serving as an “ideal community,” and operating the Hersheys’ Children’s Home.  They found Derry Township and the surrounding area rural and well suited to such other requirements.
3. To create an “ideal community,” the Hersheys would need to build and verify the long term viability of the Community, as well as the additional Businesses that operate the Community.  This Community must serve as the Home of the Current Beneficiaries, as well as those who play some role in delivering the benefits of the Trust to the Current Beneficiaries (whether, for example, as a teacher, houseparent, worker or community member).
4. Once the viability of the Hershey Chocolate Company and the Community was sufficiently validated by the Hersheys, the Hersheys then set about to establish, and improve, the Education system in Derry Township.  This system serves to educate the Current Beneficiaries, as well as those who are members of the Community.

Once the viability of these components had been sufficiently validated, the Hersheys then set about to make their “ideal community” permanent.  For this permanence, they chose the Trust.  The timing of when to make the overall structure, or portions thereof, permanent is driven by both the timing of when to bring the Beneficiaries into the development plan and the confidence that the overall structure has proven its effectiveness and viability in perpetuity.

When one considers the full scope and implications of The Hershey Industrial School, 32 years for designing the plan, determining the viability of each component, fully implementing such design, and making The Hershey Industrial School subject to a permanent structure makes sense.  This well thought out, step-by-step development plan is referred to as the Hersheys’ Children’s Home Development Plan.

“Home” - the School, with particular emphasis on the School’s function as a home in the lives of the Current Beneficiaries and other members of the School Family.^[39]

“Homestead” - Milton S. Hershey’s family homestead near the village of Derry Church, in what was formerly the northwest tier of Lancaster County, where Milton S. Hershey was born on September 13, 1857 one year and eight month following the marriage of Henry H. Hershey and Veronica “Fanny” B. Snavely.^[40]

“Hotel Hershey” - Hotel Hershey, Hershey, Pennsylvania. 

“HTC Board of Directors” - the board of directors of the Hershey Trust Company.

“Indenture” - the legal document entered into to evidence the relationship required for Indenturing.^[41]

“Indenturing” - the legal relationship formed between each child, the Managers and the child’s parent, guardian or other competent authority required by Paragraph 15 of Milton Hershey’s Deed of Trust^[42] and was evidenced by an Indenture, pursuant to which (1) the child’s parent, guardian or other competent authority releases and relinquishes to the Managers the “custody and control of” the child at all times such child is a minor under state law – such that (a) the child is “to dwell with and serve” the Managers and “to be under their exclusive custody and control;” (b) the child is to “faithfully, honestly, and obediently serve the said Managers and conform to all their rules and regulations with reference to residence, studies, work and duty, and all other rules and regulations established by the Managers, their executive officers, or others by them appointed;” and (c) “the intent of this release being to enable the Managers to enforce in relation to the said orphan every proper restraint, and to prevent relatives, friends, or others from interfering with or withdrawing the said orphan from the school;” and (2) the Managers as a fiduciary undertake, among other things therein provided, (a) to “teach and instruct, or cause to be taught or instructed, the said orphan as set forth in the deed founding and endowing the school, and will keep and maintain the said orphan during the period aforesaid;” (b) “in their discretion, before or after the arrival of the said orphan at the age of eighteen years, provide for his further education at some other school, college, or university;” and (c) this additional obligation “The home provided for the said orphan by the Managers is situated at Hershey, Dauphin County, Pennsylvania, and that will be his residence,” in each case at all times the orphan remains a minor which undertakings are also set forth in the Deed of Trust as a continuing obligation of the Trust so long as such orphan remains a Scholar, including those described in “(b)” and “(c)” above while the Scholar is an adult.

“Indirect Education” - such of the Scholar Mandated Education that is provided through other schools, colleges and universities.^[43]

“John O. Hershey” or “J.O. Hershey” or “Dr. Hershey” - John O. Hershey.  Dr. John O. Hershey served Milton Hershey School for over 42 years. He began his work at The Hershey Industrial School as a houseparent in 1939 at student home Bonniemead where he served for seven years. After this assignment, he served as a guidance counselor, Director of Enrollment, Superintendent, and finally President of Milton Hershey School, a Pennsylvania nonprofit corporation, from 1963 until his retirement in 1981. Prior to coming to Milton Hershey School, Dr. Hershey attended several colleges, including Taylor University where he received his Bachelor of Arts degree and the University of Pennsylvania where he received his Masters Degree and Doctorate of Education. In addition to these degrees, he holds three honorary degrees from Taylor University, Bricker College and Albright College.  He served as President of the Milton Hershey School, a Pennsylvania nonprofit corporation, from 1963 until his retirement in 1981, as well as its Vice-Chairman in 1974 and Chairman from 1974 to 1981.  He served The M.S. Hershey Foundation from 1963 to 1982, and as its Vice-Chairman in 1974 and its Chairman from 1974 through 1981.  He served the Hershey Trust Company from 1963 through 1981, and as its Assistant Vice President from 1963 through 1980.  He served HERCO from 1967 through 1986, and as its Vice President from 1968 through 1974.^[44]

“K&L Report” - the Independent Evaluation of Fiduciary Compliance, Findings and Conclusions of Special Counsel, dated September 1, 2000, by Kirkpatrick & Lockhart LLP, as special counsel to the Board of Managers of the Milton Hershey School and the Board of Directors of the Hershey Trust Company.

“Managers” - term used in the Deed of Trust, meaning (1) from April 14, 1910, the date on which the original Managers accepted under the Deed of Trust, the individual Managers named in the Original Deed of Trust as “parties of the third part” and their respective successors, through December 29, 1919, and (2) on and after December 30, 1919, the Milton Hershey School, a Pennsylvania nonprofit corporation, as successor in interest to the individual Managers as contemplated by and effected through the exercise of Paragraph 28 of the Deed of Trust and the 1919 Decree,^[45] which Joseph Gumpher refers to as the “corporate fiduciary” in contrast with the School which he refers to as the “charitable institution.” ^[46]

“Medical Center” - The Milton S. Hershey Medical Center.

“Memorandum of Understanding” - the Memorandum of Understanding, dated as of September 9, 1993, between the Commonwealth of Pennsylvania, through its Attorney General Earnest D. Preate, Jr., and the Board of Managers of the Milton Hershey School.^[47]

“Milton Hershey’s November 14, 1909 Will” - that certain will and testament dated November 14, 1909, executed by Milton Hershey, with codicils of Milton S. Hershey, which includes 1^st Codicil dated July 31, 1912, 2^nd Codicil dated July 31, 1913, 3^rd Codicil dated April 2, 1915, 4^th Codicil dated September 4, 1915, 5^th Codicil dated September 8, 1919, 6^th Codicil dated November 3, 1921, 7^th Codicil dated January 2, 1923, 8^th Codicil dated June 18, 1928, 9^th Codicil dated May 27, 1929, and 10^th Codicil dated  July 22, 1929.

 “Milton Hershey’s 1944 Final Will” - the certain will dated September 29, 1944, pursuant to which he revoked Milton Hershey’s November 14, 1909 Will, and went on to provide (1) a contribution of all shares of the capital stock of the Hershey Trust Company to the Trust, providing that the Directors of the Hershey Trust Company are to have the power to vote said stock at all meetings or elections of the shareholders of the Hershey Trust Company, (2) all of the rest and residue of his estate “to Hershey Trust Company, of Hershey, Pennsylvania, in trust, nevertheless, to hold, invest and reinvest in such securities as may seem best in the judgment of the Directors of said Trust Company, and order and direct my said Trustee to pay the income thereof in semi-annual installments to the School District of Derry Township, Dauphin County, Pennsylvania, for the use of said School District, particularly for the purpose of assisting such Township to relieve the tax burden for the upkeep and maintenance of the public school in said District,” with Ezra F. Hershey, William F. R. Murrie and William H. Earnest appointed as his Executors.

“Milton Hershey’s Alumni Association” - the unincorporated association designated “The Hershey Industrial School Alumni Association” created in 1930 for and at the direction of Milton Hershey by George Copenhaver pursuant to a certain Constitution which provided, among other things, (1) “This association is organized for the purpose of looking after the general welfare of those who were formerly students at The Hershey Industrial School and left there with a good record,” (2) “The membership shall consist of those who were formerly students at The Hershey Industrial School, left there with a commendable record and have been elected to membership by a majority of the members present at any meeting,” (3) “It shall be the duty of the Secretary to keep a list of the membership, to correspond with former students of the School, to endeavor to keep a close relationship between the Association and these former students, and to encourage members of the Association to assist each other in every reasonable means,” (4) “It shall be the duty of the Welfare Committee to assist the Secretary in looking after the general welfare of the members of the Association,” and (5) “it is the purpose of this Association to keep in touch with former students, to assist in procuring employment for such students, and to provide such other assistance as may from time to time be necessary.”

“Milton Hershey’s Deed of Trust” - the Original Deed of Trust as modified during Milton S. Hershey’s life time, first when on December 30, 1919 the Court of Common Pleas of Dauphin County, Pennsylvania authorized the incorporation of the Board of Managers as The Hershey Industrial School, a Pennsylvania nonprofit corporation, a corporation of the first class, the charter for which is recorded in the Office of the Recorder of Deeds in Dauphin County, Pennsylvania in Charter Book L, Page 282, and second, when on October 30, 1933 the Court approved a petition authorizing revision of the Original Deed of Trust and such Court’s 1933 Decree (1) modified the Original Deed of Trust to expand the class of children served by the school, as follows: (a) the maximum age range for admission of poor, healthy, white male orphans was expanded from between four and eight years of age to between four and fourteen years of age; and (b) otherwise qualified boys whose mothers were deceased but whose fathers were still living were made eligible for admission and (2) added this provision, “No person employed by the school, in any capacity, in connection with which any compensation or expenses are directly or indirectly paid, shall at the same time serve as a member of the Managers of The Hershey Industrial School,” as Paragraph 29 of the Deed of Trust; Milton S. Hershey joined in said 1933 Petition.

“Milton Hershey’s First Trust” - the first trust he formed through his ownership of land and related assets in trust as part of the Hersheys’ Children’s Home but not yet contributed to the Trust, as acknowledged in his 1918 Letter to Hershey Chocolate Company regarding his holding title to certain land in trust for The Hershey Industrial School.

“Milton Hershey School” or “MHS” - the School from and after December 17, 1951, which was formerly known as “The Hershey Industrial School” from November 9, 1909 through December 16, 1951.

“Minimum Education” - (i) from November 15, 1909 through December 23, 1970, the Vocational, Agricultural and Academic Education contemplated by Paragraph 16 of the Deed of Trust^[48] until such person reaches 18 years of age, and (ii) on and after December 24, 1970, the Vocational, Agricultural and Academic Education contemplated by Paragraph 16 of the Deed of Trust until such person receives a full course of secondary education, in each case designed to fit such person for the trades such person is to learn, and a useful occupation in life.

“M.S.” - Milton S. Hershey. Many individuals called Milton S. Hershey “MS” during his life time and for a long time thereafter. In particular, the students in The Hershey Industrial School referred to Milton S. Hershey, and remember him today, as “MS.”

 “Non-Resident Employee” - any officer, director or employee of any Hershey Interest located within the Hersheys’ Children’s Home Campus or otherwise serving the Hersheys’ Children’s Home and not residing on the Hersheys’ Children’s Home Campus.

“Non-Resident Beneficiary” - a Current Beneficiary that is not a Resident Beneficiary.

“Normal” - with respect to the Requirements for Admission means “normal under the circumstances” and shall allow for behavioral, emotional, and educational disruptions ordinarily associated with dependency and likely of elimination or adequate amelioration once provided the substantially year-round residential care and material goods, services, development and education provided by the Trust.

“OAG” - the Office of the Attorney General of the Commonwealth of Pennsylvania.

“Original Alumni Association Member” - a Former Commendable Student who has been elected to membership in Milton Hershey’s Alumni Association by a majority of the existing members of such Alumni Association present at any meeting of such Alumni Association.

“Original Deed of Trust” - that certain Indenture made November 15, 1909 by Milton S. Hershey and Catherine S. Hershey, accepted by the Hershey Trust Company on April 14, 1910, accepted by the original Managers on April 14, 1910 and recorded in the Office of the Recorder of Deeds of Dauphin County, Pennsylvania in Deed Book “E,” Volume 14, Pages 331-345, on July 7, 1910.

“Orphan” - all Current Beneficiaries who are not Scholars, which (as distinguished from a Scholar) would include any Current Beneficiary who, after repeated attempts are made to change the attitude of such person so that the Trust can help such person, is nonetheless: (a) not worthy either because of such person’s (i) unwillingness to apply themselves or (ii) nasty desire to break the rules of the School, or (b) not demonstrating sincerity of purpose in the program which such person is undertaking, or (c) more of a hindrance than a help and does not want and will not cooperate in taking what the Trust has to offer, or (d) a person who does harm and will accept no good.

“Orphan Benefits” - an Orphan’s Basic Capital for Success.

“Orphan Capital for Success” - in the context of each Orphan, the Trust’s investment in such person their Basic Capital for Success. 

“Orphan Term” - in the context of each Orphan, the period of time from and including the date on which such person is admitted to the School to and including such Orphan’s Education Completion Date, subject to the ongoing Trust’s School Family Obligations.

“Orphan Termination Event” - in the case of each Orphan, the Managers decide such person may be dismissed, removed or expelled from the School because such person (i) has become incompetent to learn, or to master a trade, or (ii) from physical ailments it would be inexpedient for such person to continue their studies and training, or (iii) became insubordinate, or guilty of vice or crime, or became an unfit companion for the others, or (iv) has so conducted himself as not worthy of future and continued support and education, or (v) is so competent to work at his chosen trade, that he is qualified to be self-supporting, or (vi) for any other good and sufficient reason, under Paragraph 20 of the Deed of Trust, which would mean for purposes of Paragraph 16 of Milton Hershey’s Deed of Trust (and Paragraph 15 of the current Deed of Trust) that such Orphan (a) from November 15, 1909 through November 14, 1976, no longer merits remaining at the School until they reach the age of 18, or (b) from and after November 15, 1976, in the opinion of the Managers, is no longer a worthy student making satisfactory progress and can be dismissed from the care of the Managers and removed or expelled from the School.  These matters are to be determined in the opinion or judgment of the Managers.

“Orphans’ Court” - the Orphans’ Court Division, Court of Common Pleas of Dauphin County, Pennsylvania.

“P.N. Hershey” - P.N. Hershey, who in 1950 was the Agricultural Director of The Hershey Estates Farm Dept.  He was a Manager from 1935 to 1956.

“Proposed Greenway Easement” - the proposed “greenway” easement, which was “to perpetually preserve for conservation purposes a portion of School Trust real estate, consisting of approximately 1,000 acres along 11 miles of the Swatara Creek in Dauphin County, as more particularly described in Exhibit “A-12" to the Appendix,” as proposed in the 1999 Cy Pres Petition.

“Proposed Third Restated Deed of Trust” - the drafted, but not approved, Third Restated Deed of Trust, drafted by Richard M. Glanton, Esq., as counsel for Milton Hershey School, approximately 1990-1991.^[49]

“Requirements for Admission” - under the Deed of Trust means, consistent with the operation of the Hersheys’ Children’s Home in perpetuity for the full development of the whole person admitted to such home, only a child determined at the time of admission to be a child: (1) who is dependent to the extent of not having sufficient means to properly support and educate such person (that is, such child is determined to be in need of the institutional care of the Hersheys’ Children’s Home), (2) (a) with hereditary traits, physical and mental, that fall within expected and accepted norms for a child that is dependent or in need of the institutional care of the Hersheys’ Children’s Home, and (b) that does not suffer from physical ailments that would make it inexpedient for such person to continue such person’s studies and training at the Hersheys’ Children’s Home, (3) with character traits and observable behavior that fall within expected and accepted norms for a child that is dependent or in need of said institutional care, (4) with at least a normal or average intelligence quotient and not otherwise incompetent to learn, or to master a trade, (5) likely to benefit from the Hersheys’ Children’s Home’s efforts to fully develop such person as a whole person, (6) born in the United States of America, (7) from November 15, 1909 through December 24, 1970, who is subject to Indenturing, and (8) who is (a) from November 15, 1909 through October 29, 1933, a white male between 4 and 8 years of age whose father is dead, (b) from October 30, 1933 through December 23, 1970, a white male between 4 and 14 years of age whose father or mother is dead, (c) from December 24, 1970 through November 14, 1976, a male between 4 and 16 years of age whose father or mother is dead, and (d) from and after November 15, 1976, a child between 4 and 16 years of age whose father or mother is dead or who is otherwise not receiving adequate care from one of such child’s natural parents.

“Resident Employee” - any officer, director or employee of any Hershey Interest located within the Hersheys’ Children’s Home Campus or otherwise serving the Hersheys’ Children’s Home and residing on the Hersheys’ Children’s Home Campus.

“Resident Non-Employees” - the individuals residing on the Hersheys’ Children’s Home Campus who are not employees of any of the Hershey Interests.

“Resident Beneficiary” - a Current Beneficiary that is receiving Direct Education.

“Rudisill” or “Richard A. Rudisill” or “Dr. Rudisill” - Richard A. Rudisill.  In April 1951, Rudisill, the school’s first Headmaster, joined the school faculty as a reading teacher in Memorial Hall. On August 1, 1958, Rudisill was appointed Assistant Superintendent of the Milton Hershey School.  Rudisill was appointed Headmaster of Milton Hershey School, a Pennsylvania nonprofit corporation, on January 3, 1963, upon the election of John O. Hershey as President of Milton Hershey School, a Pennsylvania nonprofit corporation. On July 16, 1974, Rudisill was named Vice-President Headmaster, Milton Hershey School. On August 1, 1983, Rudisill was named Senior Vice President of Milton Hershey School.  On September 1, 1984, Rudisill, Senior Vice President, retired from Milton Hershey School after 33 years of service. Rudisill died on December 3, 1987.^[50] 

“Scholar” - each Current Beneficiary who is doing their best to take full advantage of the opportunities presented to such person through the Trust.^[51]

“Scholar Additional Education” - such additional education (including at other schools, colleges or universities) (which is to be determined after ascertaining and considering the Scholar’s unique tastes, capacity, intelligence and adaptability) as is sufficient such that, on a self-reliant basis, such Scholar is able to support himself or herself in some occupation or mechanical trade determined by his or her unique tastes, capacity, intelligence and adaptability.

“Scholar Benefits” - in the context of each Scholar, such person’s Scholar Capital for Success.

“Scholar Capital for Success” - in the context of each Scholar, such Scholar’s Basic Capital for Success and Scholar Mandated Education.^[52]

“Scholar Core Education” - such Vocational, Agricultural and Academic Education (which is to be determined after ascertaining and considering the Scholar’s unique tastes, capacity, intelligence and adaptability), Character Education, and Self-Reliance Education as is sufficient such that, on a self-reliant basis, such Scholar is (i) “when he or she leaves the School on the completion of the period for which he or she is to remain,” “able to support himself or herself”^[53] in some occupation or mechanical trade, (ii) moral, (iii) religious, (iv) truthful, (v) financially responsible and (vi) industrious.

“Scholar Mandated Education” - in the case of each Scholar:

(a) where (i) there is sufficient income for the purposes under Paragraph 21 and (ii) the Scholar’s unique tastes, capacity, intelligence and adaptability do merit going to another school, college or university whether as part of, or upon completion of, his Minimum Education, the education through other schools, colleges or universities required to provide such Scholar his Scholar Core Education and Scholar Additional Education, and

(b) otherwise, the education required to provide such Scholar with his Scholar Core Education,

which education in each case (a) and (b) above is mandatory and must be determined based upon such Scholar’s individual taste, capacity, intelligence, and adaptability and must be provided through Direct Education, Character Education, Self-Reliance Education and Indirect Education, as the case may be; that is, during and following such Scholar’s Minimum Education, the Managers must exercise all such other requisite efforts (e.g., mentoring, transition, placement and other programs directly and in cooperation with the Alumni Association, and so long as there is sufficient income from the Trust, education through other schools, colleges, or universities) to provide the maximum assurance that each Scholar becomes self-reliant and is successful in life.^[54]

“Scholar Term” - for each Scholar, the period during which such Scholar’s status of a Current Beneficiary continues which beneficiary status extends beyond the receipt of a Minimum Education and lasts until such Scholar’s Education Completion Date, subject to the ongoing Trust’s School Family Obligations.

“Scholar Termination Event” - in the case of each Scholar, the Managers decides such Scholar deserves removal or expulsion under Paragraph 20 of the Deed of Trust.

“School” - the “institution” founded and endowed in perpetuity pursuant to the Deed of Trust (and the first “institution” named in the Deed of Trust), named “The Hershey Industrial School” from November 15, 1909 until December 16, 1951 and as the “Milton Hershey School” from and after December 17, 1951, and designated as the “School” in the first recital of the Deed of Trust, “to be located in Derry Township,” which Joseph Gumpher refers to as the “charitable institution” in contrast with the Managers which he refers to as the “corporate fiduciary.”^[55] The School is the Hersheys’ Children’s Home and includes, among other things, the “ideal community,” the Hersheys’ Children’s Home Campus (including Hershey, Pa.), Hershey Estates, the Hershey Chocolate Company and its successors and the school. 

“school” - the residential, educational and other related facilities and employees that directly serve the Resident Beneficiaries and Non-Resident Beneficiaries, which comprise a major component of the School but are distinguished from the School. This distinction from the “School” is emphasized by the 1933 Deed Modification which added the provision, “No person employed by the school, in any capacity, in connection with which any compensation or expenses are directly or indirectly paid, shall at the same time serve as a member of the Managers of The Hershey Industrial School,” as Paragraph 29 of the Deed of Trust. When Paragraph 29 was added, the reference to “school” became the only provision of Milton Hershey’s Deed of Trust where the term “school” was not “School” as the institution was so designated in the Original Deed of Trust.  In both the 1933 Petition and the 1933 Decree, the parties requested, and the Court decreed, that “No person employed by the school, in any capacity, in connection with which any compensation or expenses are directly or indirectly paid, shall at the same time serve as a member of the Managers of The Hershey Industrial School.”  In the 1933 Petition, reference was expressly made to the “School” when quoting the Original Deed of Trust.  However, in the same document, the relief sought refers to the “school.”  This pattern of distinction is likewise maintained in the 1933 Articles of Amendment of Certificate of Incorporation, dated October 30, 1933, which arose solely as a result of the 1933 Decree. The following five points support the understanding that the “school” was viewed as a part of the Hersheys’ Children’s Home or the School, but not all of it:

1. Managers worked for Hershey Estates during M.S.’s lifetime, which employed both employees of the school as well as employees of other Hershey Interests,
2. Hershey Estates managed the overall operation of the Hershey’s Children’s Home,
3. the language of the Deed of Trust expressly distinguishes between the “School” and the “school,”^[56]
4. the language of the Articles of Amendment clearly distinguished between the incorporated Managers, the School and the school, and
5. during this period, John Snyder remained the primary legal counsel to all Hershey Interests and M.S.

Refer to Sections 3.4(d) and 3.4(e), and Appendix XXIII for detailed analysis of the “school” and the various documents that manifest the school’s separate existence within the “School.”

“School Administration” - the senior administration of the school; likewise “School Administrator” means a member of the School Administration.

“School Archives” - the Historical Archives and/or Historical Records of the Milton Hershey School.

“School Family” - the institutional family created by the Hersheys and the original senior members of which were the Hersheys and others like the Copenhavers, which is comprised of all of the past, present and future Managers, school administrators, teachers, houseparents, staff, former students and students of the school, who once a member of the School Family forever will remain part of the School Family, not to replace, nor compete with, biological families, but rather to supplement them.

“School Family Benefits” - in the case of each Current Beneficiary, the benefits derived from being provided a “Home,” which Home includes: (a) a residence at the Hersheys’ Children’s Home Campus while a Resident Beneficiary, (b) being a part of the social unit formed by a family living together (that is, one’s close family and self) – that is, the “School Family”, (c) while a Non-Resident Beneficiary, a place to which one intends to return, and (d) such Current Beneficiary’s place of origin and emotional attachment, as well as (2) being part of the School Family as it further develops and enjoys continued excellent health through the Managers and other members of the School Family (1) keeping in touch and corresponding with, keeping a close relationship with, assisting in procuring employment for and providing other necessary assistance to, all Former Students and (2) looking after the general welfare of all Former Good Students, Former Commendable Students and Original Alumni Association Members, as well as (3) looking after the general welfare of those who were formerly students at The Hershey Industrial School (now known as the Milton Hershey School) and left there with a good record.

“Self-Reliance Education” - both before and after leaving the School, programs designed to insure each Scholar’s effective and healthy assimilation into society in preparation for becoming self-reliant, provided directly by the Trust and in cooperation with the Alumni Association (e.g., mentor, transition, placement and other programs).  

“Snavely” or ”Joseph Snavely” or “Joseph Richard Snavely” - Joseph Richard Snavely, Milton S. Hershey’s cousin. Milton Hershey shared his thoughts with Snavely, who then recorded Milton Hershey’s words. Rudisill confirms that Hershey shared his thoughts with his cousin and that Hershey’s words were recorded by Snavely. [See 1962 Rudisill , p. 261 and 262]  Moreover, Snavely published several works regarding Milton Hershey. Two of them are A Chat with Mr. Hershey, published before Milton Hershey’s death and An Intimate Story of Milton S. Hershey.

“Trust” - the formal, legal entity created pursuant to the Deed of Trust and commonly referred to as the “Milton Hershey School Trust,” formerly known as “The Hershey Industrial School Trust.”

“Trust’s School Family Obligations” - include the Managers’ (1) obligations to provide a “Home” to both Orphans and Scholars, which Home is to include: (a) a residence, (b) the social unit formed by a family living together (that is, one’s close family and self) – that is, the “School Family”, (c) if no longer one’s residence, a place to which one intends to return, and (d) as one grows older, it is likewise one’s place of origin and emotional attachment, as well as (2) undertakings or responsibilities for the further development and continued excellent health of the School Family by undertaking responsibility for (1) keeping in touch and corresponding with, keeping a close relationship with, assisting in procuring employment for and providing other necessary assistance to, all Former Students and (2) looking after the general welfare of all Former Good Students, Former Commendable Students and Alumni Association members, as well as (3) looking after the general welfare of those who were formerly students at The Hershey Industrial School (now known as the Milton Hershey School) and left there with a good record.

“Trustee” - the Hershey Trust Company of Hershey, Derry Township, Dauphin County, Pennsylvania, designated “as Trustee” and “party of the second part” under the Deed of Trust, in its capacity as Trustee under the Deed of Trust.

“USPS” – United States Postal Service.

“Vocational, Agricultural and Academic Education” - both before and after leaving the School, the education contemplated by Paragraph 17 of Milton Hershey’s Deed of Trust comprised of instruction in the several branches of a sound education, agriculture, horticulture, gardening, such mechanical trades and handicrafts as the Managers may determine, and such natural and physical sciences and practical mathematics as in the opinion of the Managers it may be important for the Orphans to acquire, and such other learning and science as the tastes, capacities, and adaptability of the several Scholars may merit or warrant, to fit themselves for the trades they are to learn, and a useful occupation in life, bearing in mind that the main object in view is to train young men to useful trades and occupations, so that they can earn their own livelihood; one of the objects of the School being to teach and instruct in agriculture, horticulture, and gardening, each Orphan admitted to the School shall at such time or times as may be required, do such work upon the farms as may suit his capacity and ability, which includes vocational, agricultural and academic education.^[57]

“Whiteman” or “Arthur Whiteman” - Arthur R. Whiteman, the 38^th student admitted to the School who graduated from the Derry Township public school system as a member of the HIS Class of 1927. Whiteman was picked by Milton Hershey when Whiteman was only 15 years of age (and still attending school and living on the Hersheys’ Children’s Home Campus) to work at the Hershey Trust Company.  Thus, Whiteman worked at the Hershey Trust Company before he was discharged from the custody and control of the Board of Managers under his Indenture. Whiteman, HIS Class of 1927, was the first President of Milton Hershey’s Alumni Association (1930 to 1932) and continued as an officer as Past President from 1933 to 1936. He was made a Manager in 1939 even though he was only thirty years old at the time.^[58] The average age of Milton Hershey’s other trusted advisers on the Board of Managers was twice Whiteman’s age. Arthur Whiteman served on the Board of Directors of the Hershey Trust Company from 1939 through 1974. He served the Hershey Trust Company as Treasurer from 1934 through 1956, as Secretary from 1940 through 1962, as a Vice President from 1956 through 1962, as President from 1962 through 1974 and as Chairman in 1974. He retired from the Hershey Trust Company on July 30, 1974 following 50 years of service. He served on the Board of Managers from 1939 through 1974 and was Treasurer 1939-1956 and Secretary 1939-l962. He served HERCO from 1950 to 1974, as a Vice President from 1950 to 1962 and as its President from 1962 to 1967. He served on the Board of the M.S. Hershey Foundation from 1939 through 1974, serving as Treasurer from 1939 through 1956 and as Secretary from 1939 through 1962.  Whiteman died on June 30, 1988.^[59]

“World War I” - the war generally referred to today as World War I, which began in August 1914 and lasted until November 1918, and in which the United States of America became active on April 6, 1917 when Congress declared war against Germany and expanded its role on December 7, 1917 when Congress declared war against Austria-Hungary.^[60]

“World War II” - the war generally referred to today as World War II, which began in September 1939 upon Germany’s invasion of Poland and lasted until September 2, 1945 upon the surrender of Japan, and in which the United States of America became active on December 7, 1941 – Japan’s attack on Pearl Harbor – which was immediately followed by the United States of America’s declaration of war on Japan on December 8, 1941 and Germany and Italy’s declaration of war on the United States of America on December 11, 1941.^[61]

“Year-round” - 365 days per year, subject only to such leaves of absence as are necessary to maintain family ties where appropriate, and so long as such leaves of absence are of a duration that they do not compromise the year-round caretaker function of the School or the healthy development of the child.

 

---

[1] See document of conveyance signed by M.S. Hershey on January 5, 1918, effective as of January 1, 1918.  A copy of this document was obtained through the Hershey Trust Company.  Refer to Appendix X: 1918 Conveyance of Non-Chocolate Assets to Hershey Chocolate Company.

[2] See letter dated November 14, 1918 from M.S. Hershey to the Hershey Chocolate Company.  A copy of this document was obtained through the Hershey Trust Company.   Refer to Appendix XII: 1918 Letter to Hershey Chocolate Company. 

[3] 1992 Hershey Heritage Re John Snyder, p. 6.

[4] 1992 Hershey Heritage Re John Snyder, p. 6.

[5] 1992 Hershey Heritage Re John Snyder, p. 6.

[6] Refer to America’s Great Depression, April 25, 2001, at http://www.amatecon.com/greatdepression.html. 

[7] The 1933 Petition arose largely due to concern that the Trust fund was growing at a rate greater than the rate at which income could prudently be spent at the school to serve the class of needy children identified in the Original Deed of Trust.  See, for example Appendix XVII: 1933 Petition, at Paragraph 9, which reads: “As restricted in the deed of trust, the income is greatly in excess of what is required and can be used for said purposes; and, unless the terms and conditions of the trust may be modified, the income must be permitted to accumulate, and your petitioner will not be permitted to expend the same.”  Thus, the 1933 Petition argued, and the 1933 Decree concluded, that a deviation was in order as to age and the identity of surviving parent so as to better achieve the Hersheys’, including Milton Hershey’s, original intent – to admit as many children as the income and other resources would permit.

New Paragraph 29 of the Deed of Trust emphasizes the distinction between (1) the “permanent institution” known as The Hershey Industrial School referenced and designated as the “School” in the first recital of the Deed of Trust, (2) the “school” referenced and also named The Hershey Industrial School in Paragraph 11 of the Deed of Trust, and (3) the incorporated Board of Managers, likewise named The Hershey Industrial School (a Pennsylvania nonprofit corporation) in Paragraph 28 of the Deed of Trust. Refer to Sections 3.4(d) and (e), as well as Appendix XXIII. It is commonly believed today that the addition of Paragraph 29 of the Deed of Trust was added to protect the “school” from certain conflicts. Based on the timing of the 1933 Decree, the 1933 Paul Reed Memo, the 1935 M.S. Hershey Foundation, and the 1936-37 labor activities, it seems likely that this provision could have been added to protect the entirety of the “School” from domination by those at the school, who were closest to the Current Beneficiaries. Moreover, the Managers already owed their fiduciary duties to the Beneficiaries.

[8] Paragraphs 3-5 of the 1933 Petition state:  “3. Pursuant to the provisions of the deed of trust, The Hershey Industrial School was established on or about the third day of September, 1910; and was conducted and managed by said Managers and their successors as an unincorporated school for the purposes and subject to the conditions in the deed of trust set forth, until the thirtieth day of December, 1919.  4. On the’ thirtieth day of December, 1919, your Honorable Court entered a decree incorporating the Managers and their successors as a corporation of the first class, under and subject to the provisions of the Act of Assembly approved the 29th day of April, 1874, entitled “An act to provide for the incorporation and regulation of certain corporations,” under the name and style of “The Hershey Industrial School,” your petitioner herein. The charter granted to your petition is recorded in the office for the recording of deeds, etc. aforesaid, in Charter Book L, page 282, etc. A copy thereof is attached hereto, marked “Exhibit B” and made a part hereof.  5. Upon its incorporation, your petitioner took over the control and management of the school and has since and is now conducting the same as contemplated by, and under the conditions and limitations contained in, the deed of trust.  6. At the time of, and from time to time subsequent to, the establishment of the school, Milton S. Hershey.[…]”  The bolded words are missing or changed in the 1951 Petition.

[9] Richard Wallace Murrie is the son of William Franklin Reynolds Murrie, who was once a President of the Hershey Chocolate Company and member of the Board of Managers.

[10]  Refer to the 1984 Alumni Association Articles of Amendment.

[11] This change was made in response to concerns that the term “industrial school” had become a pejorative term, implying that the students had been committed to the school by reason of some crime of delinquency.  Due to this colloquial change, Milton Hershey’s Deed of Trust was amended to avoid any misleading impressions concerning the students at the school. 

[12] Under “Other Major Anniversary Contributions” is listed “The Statue of Milton S. Hershey” under which is written:  “Presented to the school by the alumni as an expression of their love and appreciation to the one who founded the school and provided for its growth and constant improvement. The distinguished American sculptor, Walker Hancock, has caught the friendly spirit of Mr. Hershey in communication with a boy who represents all Milton Hershey School boys.  This bronze memorial stands in the foyer of the Junior-Senior High Building where it is a constant source of inspiration to the boys who pass it daily and to the host of visitors who frequent the campus.  “His Deeds Are His Monument […] His Life Is Our Inspiration”” [1959 Anniversary Lectures, p. 123]

Under “A Tribute To Milton S. Hershey” is written:  “Fifty golden years since your dream became a reality […] more than 2500 alumni of Milton Hershey School are “making their mark” in the world.  Good Americans […] good family men […] many of them leaders in government, in science, in commerce, and in industry. Yesterday ‘Milton Hershey boys’ […] today, leaders in the life of their community.” [1959 Anniversary Lectures, p. 124]

[13] In the 1959 Home Division Handbook, John O. Hershey states in the Introduction:  “The houseparent handbook was first developed in 1945 by a committee composed of both houseparents and department heads of the school.  It was officially adopted in 1946.  Minor revisions have been made from time to time, but this edition is the first major revision since its origin.”

[14] Rudisill writes of Milton Hershey in his Preface “He gave his wealth many years before his death in order that he might personally direct the early implementation of the Deed of Trust, the legal instrument which brought the home and school into existence.  It was his proud boast that he was the Executor of his own will.  It would have been difficult for him to have found a more worthy or more able administrator.”  1962 Rudisill, Preface.

[15] Paragraph 5 of the 1968 Petition states:  “Prior to August 23, 1963, the assets of the Foundation Trust were derived solely from the inter vivos gifts of Settlor [, Milton S. Hershey,] and subsequent gifts of the Hershey Foods Corporation, formerly Hershey Chocolate Company.”

[16] Of particular interest here is the modification which extended the upper limit of the age for admission to the school to permit admission of orphan boys who had not attained their sixteenth birthday.  Although the 1970 Petition did not directly address the issue of accumulation of income, the Board of Managers claimed in 1999 “the rationale for the particular request is consistent with the reasoning expressed in prior petitions:  namely that a pro tanto failure of the purposes of the Trust could occur (resulting in additional accumulation of income) due to the school’s inability to expend sufficient income in strict compliance with the Deed of Trust.”  Thus, the 1970 Petition, at Paragraph 49, stated as follows:

“Your Petitioners submit that the problems caused by the decrease in the number of orphans needing institutional care, which could cause a partial failure of the purposes of the Trust, would be alleviated by modification of the Deed of Trust to provide for the admission of orphans to but not including their sixteenth birthday.”  [emphasis added]

[17] 1971 Hostetter, p. 6-7: “Mr. Hershey lived his religion as well as any man I have ever known or been intimately acquainted with.  The core of Mr. Hershey’s religion was faith in God and in charity as a way to God in heaven and to peace and happiness on earth.  ‘I am a Christian in the only sense that Christ wished anyone to be, sincerely attached to his doctrine in preference to all others.  I became a Mennonite when I went to church with my mother, and I am still a Mennonite.’”

[18] Of particular interest here are the modifications which again expanded the class of persons eligible for admission to the school.  The theme of a “partial failure” is also repeated, with the 1976 Petition, at Paragraph 27, stating as follows:

Since the modification of the Deed of Trust of the School in 1970, certain factors noted at that time have continued to cause what your Petitioners believe is a partial failure of the purposes of the Trust, which partial failure your Petitioners submit can be alleviated by [the modifications expanding the class of eligible persons].

The 1976 Decree recognized this in its statement (at p. 1) that “the retention in the Restated Deed of Trust of the requirement that only males be admitted to the School is causing a partial failure of the purposes of the trust.[…]”

[19] Although “minor, incidental” support and use were approved, it appears that rather than limiting trust assets to such, these types of activities through 2002 in the aggregate far exceed the notion of “minor” and the notion of “incidental.”  The school shift to programs and student body that allow the children to go home for nearly half the year show that prior to the end of 2002 the School Administration was freeing up assets for use by the community and others, while eliminating “dependent” children from the program because they would not have a home to which they could return.  Refer to Twenty-Second and Partial Account.  (Docket Entries at No. 712 of 1963.)  Accountings - Applicable Years: 08/01/93 to 07/31/96 Date Confirmed by Court: 08/12/98.

[20] In his 1999 Adjudication, Judge Morgan denied the Trust’s petition for CHILD and the Greenway Easement.  Judge Morgan granted the petition for the Bike Path Easement.  Here are some important points that Judge Morgan makes in his decision:

• The vision of Milton and Catherine Hershey was to relieve poor children from all of the conditions of poverty; to undertake their total care and upbringing.
• Any discretion of the Board of Managers is servient to the dominant intent of the Hersheys to care for as many children at the School as the income will permit.
• We reject the Managers’ suggestion that conclusions reflected in decrees of this Court in prior proceedings in which the expression “pro tanto failure” was asserted are binding upon us in this proceeding.
• The specific intention of the Hersheys, as plainly stated in the Deed of Trust, was to remove children from an environment of poverty and to place them in a residential setting where they would be provided all of the necessities of food, shelter, clothing and health care together with moral and ethical guidance as well as class-room education.
• The proposed Institute does not approximate the Hersheys’ express intention for the Milton Hershey School and would do violence to it.
• When, in 1976, the Managers, alleging that the requested modification was consistent with the intent of the Hersheys, obtained from this Court a decree changing applicant eligibility to include males and females, whites and non-whites, and re-defined “orphan”, they forever [St. Mark 14:7] expanded the mission of the School and the charge upon its Managers.
• The express purpose to which the Hersheys dedicated their wealth is a structured, residential setting to which a child is removed from impoverished living conditions.  Any reading of the Deed of Trust must convince one that the Hersheys had in mind that theirs would be a direct gift to the child, with observable results.
• However well intentioned, the Managers’ idea of philanthropic efficiency is not a ground for cy pres.
• In the exercise of cy pres, deference to the “Dead Hands” of Milton S. Hershey and Catherine, his wife, need not be so rigid as to stifle resourcefulness but our discretion is not unfettered and, if exercised, must be within the limits of approximating the dominant intent of the Hersheys.  The proposed Institute does not come close.
• However worthy the motive of the Managers, the land is held under trust and their power to alienate such property is limited.  The Managers have a broad discretion to sell the land but it is well established that the power of sale conferred upon a trustee does not authorize an alienation of any character other than a sale.  The power to sell does not authorize a gift of the property.
• However, the duration of the easement [for the bike path] is for a limited period; the cost of construction will come from sources other than the trust, and the improvement will be a direct and readily available benefit to the School at its campus.  Under these circumstances, there is sufficient consideration received for the grant of the easement to support the conveyance.

[21] Mayer, Brown, Rowe & Maw is a combination of two limited liability partnerships, each named Mayer, Brown, Rowe & Maw LLP, one established in Illinois, USA and one incorporated in England.

[22]  Refer to America’s Great Depression, April 25, 2001, at http://www.amatecon.com/greatdepression.html. 

[23] These provisions remain unchanged under the Deed of Trust but have been renumbered as Paragraph 16 of the Deed of Trust.

[24] Paragraph 26 of the Deed of Trust

[25] In Cuba, Milton S. Hershey named his philanthropy in the same manner.  However, the philanthropy in Cuba revolved around the sugarcane plantation and related agrarian efforts.  That is, Milton S. Hershey also founded an orphan school, the “Hershey Agricultural School,” in Cuba.  Refer to Hershey Archives Web site at: http://www.hersheyarchives.org/Default.aspx?Page=Cuba (July 8, 2004).

[26] Paragraph 17 of the Deed of Trust

[27] In Cuba, Milton S. Hershey named his philanthropy in the same manner.  However, the philanthropy in Cuba revolved around the sugarcane plantation and related agrarian efforts.  That is, Milton S. Hershey also founded an orphan school, the “Hershey Agricultural School,” in Cuba.  Refer to Hershey Archives Web site at: http://www.hersheyarchives.org/Default.aspx?Page=Cuba (July 8, 2004).

[28] Refer to the Hershey Archives Web site at http://www.hersheyarchives.org/Default.aspx?Page=Cuba, July 7, 2004.

[29] 1962 Rudisill, p. 145. Rudisill quotes from “As I Knew Him,” by Milton S. Hershey, The School Industrialist, Vol. V, No. 8, (May 1938), p. 3.

[30] Note that Direct Education could include college education should the Managers add this to the School’s current program.  In fact, Milton Hershey’s Deed of Trust authorizes Direct Education to include college and post graduate education.  When Hershey Junior College existed, it provided Direct Education that included the first two years of college.

[31] These conclusions are consistent with the treatment of the same subjects in the Indenture entered into on behalf of the child as required by the Original Deed of Trust during the period the child remained a minor.

[32] In Cuba, Milton S. Hershey named his philanthropy in the same manner.  However, the philanthropy in Cuba revolved around the sugarcane plantation and related agrarian efforts.  That is, Milton S. Hershey also founded an orphan school, the “Hershey Agricultural School,” in Cuba.  Refer to Hershey Archives Web site at: http://www.hersheyarchives.org/Default.aspx?Page=Cuba (July 8, 2004).  

[33] This economic period actually represents two economic contractions separated by an incomplete expansion.

[34] Refer to America’s Great Depression, April 25, 2001, at http://www.amatecon.com/greatdepression.html. 

[35] Hershey Corporation owned the sugar interests in Cuba.

[36] Refer to http://www.hershey.k12.pa.us/the_schools/history_dtsd.html (July 7, 2004) for more detail.  

[37] Refer to http://www.hersheyarchives.org/Default.aspx?Page=Foundation for more detail.

[38] Appendix I: Development of The Hershey Industrial School illustrates this plan by providing a chronology organized around the three components of Community, Business and Education.  The Hersheys established a children’s home for the full development of the whole person, according to their respective attributes (that is, tastes, capacity, intelligence and adaptability), interests and commitment by providing them with, among other things, a real home and family that engendered a deep sense of belonging to a family and community.

[39] In 1936 in a speech honoring Milton S. Hershey, William Earnest (then a member of the Board of Managers) states that the President of Milton Hershey’s Alumni Association said:  “[…] I should say the school is my home. […] the boys made school life seem like family life.  That idea was Mr. Hershey’s from the beginning and still is.”  Note that this reference to “home” is not in the passed tense even though the President of the Alumni Association no longer lived at the school.  The understandings of alumni and students (i) that they have a Home and a School Family, as well as (ii) that these were Milton Hershey’s intended ideas originated from the beginning and is of the highest order of priority in defining oneself to others.  School Archives

[40] 2002 Stark Part I, p. 32.

[41] The form of Indenture remained unchanged in substance from 1910 through Milton Hershey’s death.

[42] Paragraph 15 of the Original Deed of Trust remained the same in Milton Hershey’s Deed of Trust and provides “No orphans shall be admitted until the surviving parent, guardian, or other competent authority shall have given by indenture, release, relinquishment, or other lawful acquittance, for such period as the Managers may determine, adequate power to the Managers, or others by them appointed, to enforce, in relation to each orphan, every proper restraint, and to prevent relatives, friends, or others from interfering with, or withdrawing such orphans from the institution.”

[43] Indirect Education must be provided by the Trust so long as there is sufficient income.  Refer to Paragraph 21 of the Deed of Trust.

[44] 1996 Hershey Chronology

[45] Paragraph 29 of Milton Hershey’s Deed of Trust reads: “No person employed by the school, in any capacity, in connection with which any compensation or expenses are directly or indirectly paid, shall at the same time serve as a member of the Managers of the Hershey Industrial School.”  In 1919 the Board of Managers was incorporated and this was the only expressed goal sought by Paragraph 28 of the Deed of Trust.  Moreover, Paragraph 29 of Milton Hershey’s Deed of Trust was, among other things, an endeavor to forever clearly recognize and preserve the separate identity of the “permanent institution” contemplated by the Deed of Trust, on the one hand, and the Milton Hershey School, a Pennsylvania nonprofit corporation (that is, the Managers), on the other. 

The incorporation of the Managers in 1919 was a wise decision following Milton Hershey’s contribution of $60,000,000 of Hershey Chocolate Company stock to the Trust in 1918.  It was designed to insulate the Trust corpus from, among other things, the potential liability associated with the Managers’ exercise of fiduciary duties to the individual beneficiaries of the Trust.

[46] 1950 Gumpher, p. 68.

[47] The Memorandum of Understanding states, in part, that “the beneficiaries of that Trust, namely the MHS students.[…]”  The Memorandum of Understanding reflects an understanding that the Milton Hershey School “is operated pursuant to a charitable trust” and that “the Managers are entrusted with the duty to operate MHS pursuant to the original Milton Hershey School Deed of Trust” and that the Memorandum’s references to the Milton Hershey School is not a reference to the incorporated Board of Managers.

[48] During the period from November 15, 1909 through December 23, 1970, Paragraph 16 of the Deed of Trust was Paragraph 17 of Milton Hershey’s Deed of Trust.

[49] The 21^st Century Initiative contains a number of admissions criteria and program changes that do not conform to the Deed of Trust.  Sometime after or in connection with the adoption of the 21^st Century Initiative, the 1990-1991 Board of Managers authorized the drafting of a proposed “Third Restated Deed of Trust” by Richard M. Glanton, Esq., counsel for Milton Hershey School.  By its own terms, the Proposed Third Restated Deed of Trust was to have been submitted to the Orphans’ Court for approval as “Exhibit G” to a petition, which approval was anticipated for 1992. 

[50] 1996 Hershey Chronology  

[51] For clarity’s sake, the term “Scholar” does not include any person who, after repeated attempts are made to change the attitude of such person so that the Trust can help such person, is nonetheless: (a) not worthy either because of such person’s (i) unwillingness to apply themselves or (ii) nasty desire to break the rules of the School, or (b) not demonstrating sincerity of purpose in the program which such person is undertaking, or (c) more of a hindrance than a help and does not want and will not cooperate in taking what the Trust has to offer, or (d) a person who does harm and will accept no good.

[52] The Honorable Judge Warren G. Morgan stated in the 1999 Adjudication:

The vision of Milton and Catherine Hershey was to relieve poor children from all of the conditions of poverty; to undertake their total care and upbringing.

^[53] Refer to Paragraph 16 of the Deed of Trust, which is Paragraph 17 of Milton Hershey’s Deed of Trust.

^[54] Refer to Paragraphs 16 through 21 and Paragraph 23 of the Deed of Trust.  That Paragraph 23 of the Deed of Trust establishes a continuing obligation of the Trust after graduation from high school is observed by W. Allen Hammond, Principal of Milton Hershey School from 1934 through 1959, in his book A Man and His Boys, when he states “In fact, in accord with section 23 of the ‘Deed’ [...], a Placement Service has been set up, which not only secures employment for boys but also follows up on them to assist those who may encounter difficulties of adjustment, to change assignments for those who should change, to stimulate some who may be prone to mark time, to commend those who succeed, and to make contacts for others who follow.  An attempt is made to fit the boy to the job or the job to the boy so that he may make his best and happiest contribution to the world of productive work in college, business or industry.”  [1969 Hammond, p. 23-24]

[55] 1950 Gumpher, p. 68. This legal fact continued to be repeated to the Orphans’ Court for a long period of time. In fact, the term “School” was defined in the 1970 Petition in the following manner: “By deed of trust dated November 15, 1909 […] Milton S. Hershey and Catharine [sic] S. Hershey [...] granted and conveyed certain real estate [...] to your Petitioner, Hershey Trust Company, as Trustee, (hereinafter called “Trustee”) and constituted M.S. Hershey, W.H. Lebkicher, [...] and their successors, Managers (hereinafter called “Managers”) for the purpose of founding and endowing in perpetuity an institution to be known as “The Hershey Industrial School”, now known as the “Milton Hershey School”, (hereinafter called “School”) for the maintenance, education and training of “poor, healthy, white, male orphans,” subject to certain trusts and conditions set forth in  the Deed of Trust.” 

[56] Refer to Sections 3.4(d) and 3.4(e), and Appendix XXIII for detailed analysis of the “school” and the various documents that manifest the school’s separate existence within the “School.”

[57] This is now Paragraph 16 of the Deed of Trust.

[58] M.S. understood the benefits associated with grooming Scholars in fulfillment of the Hersheys’ design “to build a town to be run by and for orphan boys” and selected Whiteman, HIS Class of 1927, at age 15 to begin Whiteman’s grooming that resulted in Whiteman becoming a Manager on May 11, 1939 and remaining a Manager through 1974.  Whiteman was a member of Milton Hershey’s Alumni Association’s Board from its creation in 1930 through 1953, and from 1976 through 1979, and during 1981, 1983, 1984, 1985, 1987 and 1988.  Arthur Whiteman was the first recipient of the Alumnus of the Year recognition award. He died in 1988.  Arthur Whiteman, as well as other Scholars such as Joseph Gumpher, Kenneth Hatt, William Dearden and others who came later, personified the Hersheys’ design “to build a town to be run by and for orphan boys.”  Milton Hershey’s Alumni Association was designed by Milton Hershey as the entity that in perpetuity would continue to groom other Scholars to follow and continue to fulfill the Hersheys’ design “to build a town to be run by and for orphan boys,” as well as to serve students, Alumni, the School, the School Family, the school and the Trust.

[59] 1996 Hershey Chronology 

[60] Refer to America’s Great Depression, April 25, 2001, at http://www.amatecon.com/greatdepression.html. 

[61] Refer to America’s Great Depression, April 25, 2001, at http://www.amatecon.com/greatdepression.html. 

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