The Chocolate Trust: Deception, Indenture and Secrets at the $12 Billion Milton Hershey School 1933822594, 2014048646, 1933822600

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COLATE TRUS Deception, Indenture andSecrets

atthe$12Billion Milton Hershey School

BOB FERNANDEZ

CAMINO BOOKS, INC. / PHILADELPHIA

Copyright ©2015byBobFernandez AllRights Reserved Nopartofthisbookmaybereproducedinanyformorbyanyelectronicor

mechanical meansincluding information storage andretrieval systems without permission inwriting fromthepublisher, except byareviewer whomayquote briefpassages inareview. Manufactured intheUnited States ofAmerica 1234 18171615

Library ofCongress Cataloging-in-Publication Data Fernandez, Bob,1965-

Thechocolate trust:deception,indentureandsecretsatthe$12billionMilton

Hershey School / BobFernandez. pagescm Includes bibliographical references. ISBN 978-1-933822-59-4 (alk.paper) 1.Milton Hershey School (Hershey, Pa.)—Corrupt practices. 2. Milton Hershey School(Hershey, Pa.)—Finance. I.Title. LD7501.H47F47 2015 371.826'940974818—dc23

2014048646

ISBN 978-1-933822-59-4 (paper) ISBN978-1-933822-60-0 (ebook)

Interior design: KateNichols Jacket design: Jerilyn Bockorick Thisbookisavailable ataspecial discount onbulkpurchases forpromotional, business, andeducational use. Publisher CaminoBooks,Inc. P.O.Box59026

Philadelphia, PA19102

www.caminobooks.com

THE CHOCOLATE TRUST

MiltonS.Hershey(Special Collections Research Center, Temple University Libraries, Philadelphia, PA)

CONTENTS

Acknowledgments Introduction

Vil ix

TheHomestead: Milton,Kitty,andOrphans RS

BoysontheFarm:TheDepression

13

GG

Post-Milton: “WhatWeKnow” and“HowWeFeel”

25

LootingtheTrust:APolitical DealtoDivertTensofMillions fromOrphans

38

WindsofChange: Girard College Finally Admits Black Boys; SoDoesHershey

56

—=

TheSouloftheOrphanage: Upscaling theInstitution;

CallThem Scholarship Winners “Orphan Army”: They FeltThey Owed IttoMr.Hershey

62 75

Recurring Problem—tThe Chocolate Profits:HowShould theTrustSpendItsBillions onPoorKids?

105

Koons: Danger onCampus; aSerial Pedophile

122

vi/ CONTENTS

10 SorryKid,NoHIVinHershey: JusticeDepartment

Investigates; theTrustSettles for$700,000 11 Abbie’s Death: ARevolving Door forPoorKidsLeads toTragedy

143

Palace:Greedanda Decade ofSoaring TrustBoard 12 Zimm’s Compensation

166

131

13 Reform SlipsAway Again: Attorney General KaneQuickly

Closes theInvestigation

183

Profiting Off 14 SlaveLaborintheCocoaLands:Hershey theToilsofChildren inWestAfrica

196

Epilogue—Hershey’s Shame: WhattoDoNow?

207

CastofCharacters

213

Sources

217

Appendix—Milton Hershey School Enrollment

Zo

ACKNOWLEDGMENTS

§)YTHANKS goto HersheySchoolalumni,formerstudents,parents, iv ) formerandcurrentemployees, insiders,attorneys, lawprofessors,

|WBeditors, colleagues andfriends whohelped mewiththisbook.Sadly, atleastthreeoftheHome Boys withwhom Ispoke abouttheirchildhoods

attheHershey IndustrialSchooldiedbeforethisbook’s publication. TheChocolate Trustwouldnothavebeenpossible withoutthealumni rebellion ofthe1990sandearly2000swhenJoeBerning, JohnHalbleib, Ric

Fouad andothers brought attention tothetroubled Hershey School andthe

machinations oftheTrustitself,sometimes atgreatpersonalcost.Craig Stark,whogrewupinHershey andisanencyclopedia onthetownandthe

Trust,wasinvaluably helpful. I spokewithmanyexperts andinterested individuals, including Rob-

ertSitkoff, theJohnL.GrayProfessor atHarvardUniversity; JamesLytle, practiceprofessor attheGraduateSchoolofEducation attheUniversity ofPennsylvania; MichaelJ.Hussey,associate professorat WidenerLaw

School; Randall W.Roth,lawprofessor attheUniversity ofHawaii; John Schmehl, partner andchairofthetaxgroupatDilworth Paxson LLP; Pablo

Eisenberg, columnist withtheChronicle ofPhilanthropy, andprivateattorneyMarkSchwartz.

MythankstoPhiladelphia Inquirer business editorBrianToolan, who edited myTruststories, andtoMikeLeary, thepersistently curious former

managingeditorattheInquirer,whokeptonaskingaboutHershey, and

viii/ ACKNOWLEDGMENTS

Vernon Loeb, former deputy managing editorfornews, whowasastrong

advocateforthe storiesabouttheTrust.Thanksto BillMarimow, the Inquirer editorwhopublished theWrenDalegolfcourseandCharles Koons

stories, andtoStanWischnowski, theInquirer editorwhenthenewspaper published several otherTruststories. MythankstoKarlStarkandAvery Rome, whoworked withmeasIreported onthestudent careattheHershey School.AndthankstoInquirerreportercolleagues JaneVonBergenand DianeMastrull, whoreadearlyversions ofchapters. Iwouldliketothankmyagent,AnneDevlin, whofoundmeapublisher; todevelopment editorMiriamSeidel andCaminoBookseditorBradFisher, whosmoothed thetextandguidedthisproject; andtoCaminoBookspub-

lisherEdwardJutkowitz,whobelievedin meand didn’twaveras I missed

deadlines.

Itakefullresponsibility forthecontents andobservations inthisbook thatcontradict theoverpowering anddecades-long narrative ofamulti-bil-

lion-dollar American institutiondedicated solelytohelpingorphansand poorchildrenwithchocolate profits. MythankstoGilGaulforhisconversations aboutthetitle,andtoRocco

Mancini, wholistened tomyHershey stories atthebusstop.

Finally, truethankstomywifeMae,whodidn'tquestionthewisdom ofputtingsomuchenergyintoa bookprojectaboutanorphanage. And thankstomysonsZack,LukeandSethforonlyminimally complaining aboutthehoursI spentinthebasement andnotwiththem.

INTRODUCTION

))OST AMERICANS don’tthinkofpoorkidswhentheyhearthename

: Hershey. TheirfirstthoughtisofHershey chocolate bars.Othersmay ©VW Bfthinkofroller-coaster ridesatHersheyPark, orthebucoliccharmof

fais farmsthatdottheareaaround thetownofHershey inCentral Pennsylvania. Butthoseofanoldergeneration doremember theschool Milton

Hershey beganoveracenturyagoforpoor,whitefatherless boys. MiltonHershey, thefounderofthemassively successful Hershey Chocolatecompany, setupatrustin1909afterheandhiswifeKittycouldn'thave

children oftheirown.Inatimeofwidespread poverty andlimited social services,startingan orphanagewasa generousactbutnotunprecedented.

Whatwould beunprecedented wasthescaleofHershey’s generosity. In

1918, thewidowed Hershey vastlyexpanded thetermsofhischarity, putting theentireassetsoftheHersheycompany—along withtheHersheymansion,Cubansugarplantation, thousands ofacresofPennsylvania farmland

andthetownofHershey itself—into thehugeandsophisticated legaltrust “exclusively devoted” tohisorphanage, thatwastoexistintoperpetuity.

MiltonHershey didnotforesee theresultsofthissweeping gesture. This bookwillshowhow,ironically, theprodigious amounts ofcashgenerated by Hershey's assetsandputexclusively inserviceofaruralschoolfororphans created hugespending dilemmas—as wellastemptations forthoseoverseeing thetrust,whofoundwaystopersistently steerfundsawayfromtheintended beneficiaries, orphansandimpoverished children. Atthesametime,histrust

x / INTRODUCTION

created anunusually intimate connection among Hershey’s for-profit enterprises, thestategovernment, thelocalcourtandthecharitable entity—one thatovertheyears,ledtomanyinstances ofoverreaching, flawed oversight, andadecades-long historyofbitterconfrontations withreformers.

THE NATION’S CHOCOLATE KING livedforalmostthreemoredecades after settingupthetrust,andhischocolate-funded orphanage would beoneof

thenation’s mostcelebrated charities ofthefirsthalfofthe20thcentury— featured onthefrontpageoftheNewYorkTimes andinnationalmagazines.

WhenhediedinaruralPennsylvania hospital in1945, governance ofthe

complex organization passedtointerlocking andself-perpetuating boards ofbusinessmen andconfidants, theso-called Trust. Handpicked successors heededMiltonHershey’s dictatesto nurture

orphans withchocolate profits through thelate1940s and1950s. Butasthe orphanage modelforhelping poorchildren declined throughout Ameri-

ca,theMiltonHershey Schoolstruggled withshrinkingenrollment, inthe faceofcontinuing hugeprofitsfunneledthroughthetrustfromthemassappealchocolate brand.Intheearly1960s, anewgeneration ofTrustleaders

privately negotiated withstateofficials andthelocalcourttodiverttensof millions ofdollars intoanewgiantmedical center totraindoctors andtreat

patients,establishing apatternofdeploying orphanage assetsinwaysthat wouldbenefitcentralPennsylvania’s economic development. TheTrust’s

businessmen leaders believed—and stateofficials agreed—that thereweren't enough orphans inAmerica tohelpusingHershey’s chocolate profits. The Trustlaterleveraged orphanage assetstobuildrollercoasters inanambitiousexpansion oftheoldHershey amusement park,andwouldbailoutthe Trust-owned Hershey Entertainment &ResortCompany whenthecompa-

nydisastrously over-extended Hershey-branded hotels. ButtheTrustcouldn't abandon itsoriginal child-care mission altogeth-

er.Intheearly1920s, theInternalRevenue Service hadapproved ofMilton Hershey’s charitable schemeto harnesshisbusinesses to hisorphanage, allowing thebusinessman federaltaxbenefits. TheHershey nameitself,ina

brilliant marketing coup, wasnowsynonymous withchocolate andorphans. TheTrustgradually loosened restrictions onadmission totheschoolso thatbythemid-1970s anyhealthy, impoverished childofwhatever raceor genderinAmerica waswelcome toapply.TheTrustalsospenthundredsof millionsofdollarsonconstruction projectstomodernize andupscalethe

campus. Butstudent numbers fellsosteadily thatby1999, enrollment was

INTRODUCTION / xi

onlytwo-thirds ofthestatedcapacity oftheearly1960s andaboutthesame levelasthelate1930s. Meanwhile, Hershey’s medical centerboomed with

thousands ofemployees. Millions oftouristsvisitedHershey, the“Sweetest PlaceonEarth,”withopenwallets. Thetownprospered. I heardaboutthissecretive, chocolate-funded charityasa business

reporter forthePhiladelphia Inquirer. Where hadthegenerations ofchocolate profits tohelporphans andpoor

childrengone? Wherewerethekids? Whoweretheeducational leaders?

Whyhadn'tIheardmoreaboutthismulti-billion-dollar school forpoor kids,rightoutside oneofthemostimpoverished citiesinAmerica, Philadelphia? Oneofmyearlystoriesin 2010describedtheTrust’spurchasewith schoolfundsofa luxurygolfcoursefortwoorthreetimesitsappraised valuefromlocalexecutives, doctorsandlawyers. Thestoryaskedwhether

orphans andpoorkidsneeded a fourthgolfcourse, particularly sincethe Hershey School didn'thaveagolfteam.

Iwroteofathree-million-dollar Trustsettlement withformerstudents whohadbeenmolestedbya serialpedophile oncampus,andan online

pornography collector nabbed oncampus. Idetailed thesoaring compensationontheTrust’scomplex ofboardsasstateRepublican powerbroker LeRoy Zimmerman presided overavastcharitable enterprise, withholdings including 10,000 acresofland,theHershey Entertainment &ResortCompany,controloftheHersheyCompany’s chocolate manufacturing, anda

multi-billion investment portfolio. Representatives oftheTrustcalledmevindictive andwrong. Butpoor mothers andconcerned alumnilitupmyphone.Theytoldmestoriesof

expelled children, attrition,harshcare,untrainedhouseparents, medicated kids,kid-on-kid sexualabuseandhiringfavoritism.

Parents whohadbeendazzled bytheHershey School’s promotional literature, themulti-billion-dollar endowment andtheallureoftheHershey

brandtoldmethatwhentheycalledthePennsylvania OfficeofAttorney Generaldesperate forhelp,officials atthestate’s toplaw-enforcement agencytoldthemtohireprivateattorneys. Buttheydidn’thavethousandsof

dollars toretainaprivate attorney. Whentheycalled otherstateagencies or elected stateofficials, theyweretoldtherewasnothing thoseofficials could do—itwas a privateschool.

xii/ INTRODUCTION

Duringtheyearsspentresearching andwritingthisbook,scandals con-

tinuedtoemerge.

APhiladelphia advocacy lawyersuedtheHersheySchoolin 2011for rejecting foradmission a teenageboywithHIV.TheTrustfoughtherand theboyinthecourtsandonitswebsite. AJusticeDepartment investigation

revealed thattheinstitution hadviolated theAmericans withDisabilities Act.TheTrustsettledin2012withtheJustice Department andtheboy, agreeing topayhim$700,000 andpostinganapology onitswebsite. In June2013,tragedystruck:an impoverished 13-year-old Hershey

School studenthanged herself inthesecond-floor bedroom ofherhome

afterbeingaskedtoleavetheschool. AbbieBartels hadcometotheHershey School asakindergartner. Shelovedcatsandlistened toSelenaGomez. The Hershey School bannedherfromhereighth-grade graduation andfromthe

campus fordepression andsuicidal thoughts. Hermother Juliebelieved the child-care school quickly targeted Abbie asaliability andwashed itshands

ofher.Afterthegirl’ssuicide, theTrustpaidforAbbie’s funeralintheTrustownedHershey Cemetery, butallegedtherehadbeennothingwrongwith hertreatment.

Some believed thatAbbie’s death,oronelikeit,wasinevitable. Though unreported publicly, theschool’s owndatashowed thattheinstitution that marketed itselfasanurturing haven forpooryouthhadtreated manypoor

andvulnerable childrenroughly. Overa recentdecade,farmorepoorkids droppedoutor werekickedoutformisbehavior thangraduated—even thoughtheinstitution hadselected themforitslavishly fundedprogram.

InMay2014, teenstudents attheHershey School dialed 911afterfinding ahiddendigitalcamera inadormshower. Police investigated aHershey Schoolstaffer. Hehadthreeloadedhandgunsinhiscampusapartment. Itdidn’tsoundtomelikeHershey wasthe“Sweetest PlaceonEarth”

forthesekids.

| FELT THAT thefullstoryofthebehavior andbroken promises ofMilton

Hershey's Trustneededtobetold.Inthechaptersthatfollow, I beginby lookingmoreclosely atMiltonandKittyHershey, thecharity’s creation and

evolution, American orphanages, andfailedreforms attheHershey School overthedecades. Igoontocover theinstitution’s current child-care failings

anddangers.LaterchapterstellthestoryoftheTrust’sflawedgovernance andoversight, including recentactionsbythecurrentPennsylvania attorneygeneralKathleen Kane.

INTRODUCTION / xiii

Finally, Iexplore theTrust-controlled Hershey Company's complacency

ineradicating slavechildlabororforcedchildlaborinWestAfrica's cocoa

industry, amajorsource ofcocoaforHershey’s chocolate barsandReese’s peanut buttercups.Thissadandstill-developing storytakesonironicovertonesinviewofMilton Hershey’s grandvisionofusinghisprofits tohelp

poorchildrenbetterthemselves. Inanepilogue, “Hershey's Shame,” I suggestwhatlawmakers andregulators mightdotohelpfixthisdeeplytroubled,$12billioninstitution andoneoftheworld’s richestphilanthropies.

|

THE HOMESTEAD Milton, Kitty, andOrphans

A

STUNNING cut-glass torchiére gracedtheentrancehallofthe$100,000 HighPointmansionwhenit openedwithfanfarein theruralhills ofPennsylvania’s LebanonValleyin 1908.MiltonHersheyhadfirst spottedthedazzlingfloorlampattheChicago World’s Fair,andarchitect

C.Emlen Urbandesigned themansion’s three-story entryhallforit.Win-

dowsflooded thecutglasswithsunlight. InhighGildedAgefashion, Milton andKittyHershey hadpurchased morethanadozenoilpaintings ataNew

Yorkgallery forHighPoint’s walls,andtheyjoyously filledits22rooms withfurniture andchinacollected during travels toAmerican andEuropeancities.Theminimally educated, hard-driving MiltonHershey occupied theGoldRoom.Kittyhadtheonewithpinkwallsandpinkcarpet.Afire-

placeinthelivingroomblazed withgaslogs,whileafull-time staff, housed inservants’ quarters, catered tothewealthy couple’s needsandwhims—a demanding andchallenging taskthatwouldrequirea newhousemaid every sixmonthsorso.MiltonandKittyhadeverything theycouldhavewanted

intheirunconventional marriage except fortheonething:children. Nowinhisearlyfifties, themulti-millionaire Chocolate Kingcouldn't denyitanylonger: Kitty,15yearshisjunior, wasbarren. There would beno

heirstowhomhecouldpasshisfabulously profitable chocolate company. Moretroubling, MiltonrealizedthatKitty’s healthwasirreversibly decliningevenashespenta smallfortuneseekingspecialized medicalcarefor her.Whatshouldtheydowiththechocolate business, withhisnamesake

2 / THE CHOCOLATE TRUST

town,withallthemoney?Kittytalkedabouthelpingorphans,andMiltoncouldn’saynotoher.Hetoothoughtitwasa goodidea.Thereisno recordofconversations betweentheMennonite husbandandhisCatholic

wifeabouttheirplans,though Milton repeatedly saidinlateryearsthatthe

orphanage wasKitty’s idea.Hegavethissimpleexplanation totheNewYork Times: “Well, Ihavenoheirs—that is,nochildren. SoIdecided tomakethe orphanboysoftheUnitedStatesmyheirs.” TheyfiledtheDeedofTrusttocreateanorphanage onNovember 15,

1909, endowing itwithabout500acresofdairyfarms, butwiththepoten-

tialtoaddassetsovertime.Thedocumentspecified thattheboyshadto befatherless, white,healthy, betweentheagesoffourandeight,andgood companions. Inthattimeoflimitedsocialservices, theplightofmillionsof orphansandhomeless childrenhadbecomea focusofnationalattention.

TheDelineator, anational fashion magazine editedbynovelist Theodore Dreiser, published photosandstories oforphans, publicizing theirplight

toitsreadership ofAmerican women. ThesameyeartheDeedwascreated, TeddyRoosevelt hostedthefirstWhiteHouseConference onChildrento addressissuesrelatedtoneglected children.

Intheearly20thcentury, widows oftenstruggled toprovide fortheir youngchildren. Somehadlittlechoice buttosendsonsanddaughters to

orphanages, alreadycrowdedwithchildrenwhohadnoparents.Many orphanages werebleakinstitutions, hardlybetteritseemedthanthealms-

houses thathadpreceded them,inwhichchildren hadbeenhoused alongsideadultdebtors, homeless orthederanged. Otherchildren wereplaced on trainstotheMidwest tobeadopted bythefirstfamily thatwould takethem. MiltonandKitty’s visionwasamorehopefulone.Theboyswhomthey accepted wouldbehousedinhome-like groupcottages; theywouldlivein

thehealthy environment ofaruralfarmsettinglooked afterbyMennonitewomen, andwouldhavethebenefit ofbasiceducation andpractical

training.MiltonHershey hadbeeninspiredbyGirardCollege, theschool forpoorfatherless boysfoundedin 1833bytheearlyAmerican merchant andshipperStephen GirardinPhiladelphia; hiscommitment toeducating

orphan boyswasgroundbreaking initstime.

Whiletheymayhavebeenresponding toaprogressive focusontheplight ofchildren, oneaspectofMiltonandKitty’s planharkedbacktoearliertimes: beforetheHersheyIndustrialSchoolwouldaccepta boy,theirwidowed

mothers hadtosignindentures. Centuries old,theseweretypically contracts forlaborservitude; Pennsylvania wasthenamong aboutadozenstatesthat

THE HOMESTEAD /3

stillallowed suchlegalarrangements socharity-case children couldworkoff

theirdebts.And,indeed,thefatherless orphanboyswhoenrolled withthe Hershey IndustrialSchoolwouldbeexpected toworkhard:milkingcows, shoveling manure, pitching hay,picking strawberries andpotatoes, andclean-

ingturkey coops onHershey-owned dairyfarms. Milton Hershey, whohad

beenapprenticed inhisearlyteens,claimed thattheindentures allowed him toraisetheboyswithoutmothers orotherfamilymembers interfering. TheLebanon DailyNewspublished anitemontheneworphanage in

thesummer of1910 andimpoverished widow MaryWagner ofMountJoy brought hersonsNelson andIrvintobeconsidered foradmission inearly September. Everyone inthispartofPennsylvania hadheardofHershey—first astheCaramelKingandnowtheChocolate King.Sheconfidently penned hersignature onNelson’s indenturewiththefinal“r”spillingintotheseal area.NelsonwouldbethefirstHomeBoy.MiltonHershey alsosignedthe

document. Otherfatherless boystrickled intotheorphanage. Calvin Mader showed uponthe8thofSeptember, andGuyandJacob Weber onthe12th. October broughtCarlSmith,JohnD.GriefandCharles Schaup. NeitherMiltonnortheailingKittytookdirectresponsibility forcaring fortheboys—that taskfelltofarmssupervisor George Copenhaver andhis

wifePrudence, wholooked afterthemattheHomestead, Milton andKitty's residence before theymoved intotheHighPointmansion. Thedeeply religiousCopenhavers instructed theboysonmanners andChristian behavior.

Georgecuthairandtaught.Prudence laiddownrules.Oneofthoserules: nosportsonSunday. Notsurprisingly fortheeraandhisbackground, GeorgeCopenhaver's viewsonchildbehavior andpsychology couldbeharsh.Amemohewrote to HersheyandtheSchool’s BoardofManagers aboutoneyoungchild, LeRoy Metzel, revealsthepunitive, sin-laden perspective thatinformed the handlingofthosefirststudents.“Itbecomes myveryunpleasant duty,”he

wrote,“toreporttoyouthatLeRoy hasearnedforhimself suchanunenviablerecordthatI consider himnolongerentitled tothebenefits ofthe schoolandanunfitassociate fortherestofthepupilshere.Theboyhasbeen heremorethanthreeandone-halfyearsandhehasnotmissedsixnights duringthistimethathedidnotwethisbed.Thisissooffensive thatwe mustkeephiminaroombyhimselfandnoneofthehelpcanwashhisbed clothesonaccountofthestench.Heisabsolutely voidofthetruth...Heis anaturalbornthief.Hehasstolenmoneyfromabureau;atonetimefrom aboxcontaining theboys’savings; twicefrompocketbooks; oncefromthe

4 / THE CHOCOLATE TRUST

governess's churchfundandoncefromanotherboy’s pocket,andatanother

timehestolea dollarbillbelonging toJohnDaniel andaftertearingitto shreds, threwitintothewastebasket. Healsostoleclothes outoftrunks,

evenwomen’s clothes. Wehavedoneallinourpowertocorrectthisboy.We haveadmonished him,wehavepunished him,andwearenowatwit’send. Ifthiswasareformatory wecouldprobably punishhimashedeserves; but

thisschool cannotgotosuchextremes.” Copenhaver described LeRoy’s “spells” andnotedtheboy’s mother “was

justasheis,andhehasprobably inheritedhiswayward ways.” TheBoardof Managers voidedtheboy’sindenture andsenthimaway.

ALOOK ATHershey’s ownearlylife,markedbypovertyandinstability, offers

someinsightintohismotivations forestablishing theHershey Industrial School. Hewasbornin1857 toaMennonite couple, FannyandHenry, in ruralDerry, Pennsylvania—where hewouldlaterfoundthetownofHer-

sheyandtheorphanage. Henry’s fatherfailedbothatfarmingandatwildcatting—digging forundiscovered oilinwesternPennsylvania. Thefamily

soldberriesandbrooms door-to-door, tryingtomakeendsmeet.Aftera while,thepiousFannydidn’tseemtowanttohaveanything todowith

Henry.ThefinalstrawmayhavebeenthedeathoftheirdaughterSarena. Theydidn’tdivorce; butHenryandFannylivedmostlyseparate lives.Miltondroppedoutofschoolafterfourthgrade,andhisparentsapprenticed

himfirsttoaprinter, andthentoLancaster confectioner JoeRoyer. Because ofhissporadic andshortened schooling, Milton mayhavebeen

illiterate. Lebanon Valley College English professor PaulWallace notedafter interviewing hundreds ofpeopleforanunpublished authorized biography for theHershey TrustCompany inthe1950s that“whathasmadetheseresearch-

esunusual isthealmost complete absence ofanything written byMr.Hershey

himself....He keptnodiariesandpreparednomemoirs. Hedid,however, leavea vividimpression onthemindsofallthosewhowerenearhim.” Hershey alwaysattributedtheideafortheorphanage toKitty.Shewas

bornCatherine “Kitty” Sweeney in1871 inupstate NewYorktoIrishparents.Hershey metheratA.D.Work’s Confectionery inJamestown, New York, ona salestripwithchocolate executive William Murrie, according totheHershey Community Archives. Kitty’s sisterrecalled themeeting

betweenMiltonandtheflirtyKitty:“Shewasnotsellingcandy.Thegirls usedtocongregate thereandmessaround.SoMr.Hershey wastherewith Mr.Murrie,andofcoursethegirlsintroduced himtomysister.”

THE HOMESTEAD /5

Michael D’Antonio tellsaverydifferent version oftheearlyrelationship

betweenMiltonandKittyinhis2006biography, Hershey: MiltonS.Hershey’s Extraordinary LifeofWealth, Empire andUtopian Dreams. D’Antonio, whohadextensive access toTrustarchives andthecooperation ofarchivists,

suggests thatKittymayhavebeenaprostitute whenMilton Hershey met

her—notin small-townJamestown,but in vice-riddenBuffalo.D’Antonio

basedthisconclusion onKitty’s medical treatment recordsandasurviving transcriptofWallace's interview withaclosefamilyfriend.Wallace inter-

viewed Mrs.Thomas Chambers in1954. ShesaidthatMilton andKitty“met inBuffalo. ShewenttoBuffalo towork.Itwasawful....He wascrazyabout her.”AsforwhatKittywasdoinginBuffalo awayfromherfamily,ChamberstoldWallace, “Iwouldnottell.Hermotherdidn’tcomplain because her motherwantedthemoney. Mrs.Sweeney, shewasawfulformoney.”

Kittyrelocated toNewYork toworkinadepartment store,andsheand Milton married a yearlaterinaprivate ceremony onMay25,1898 inthe

rectoryofSt.Patrick’s CathedralonFifthAvenue. Theweddingshocked Milton’s familyandbusiness colleagues. Milton’s piousmother,Fanny, who

dressed plainly, didnotgetalongwithhernewdaughter-in-law. Aswife ofarichchocolate industrialist, Kittycouldafford thebestmedical care, andshetraveled toGermany whereshewastreated byWilhelm Erb,who

hadestablished modernstandards fortreatinganddiagnosing syphilis and

related nervedamage. D’Antonio concludes thatthe“weight ofthemedicalevidence leaves littledoubt” aboutKitty’s illness: theadvanced stages

ofsyphilis, adiseasemostcommonly transmitted throughsexualactivity. AwomanwhoknewKittydescribed theillnessasa “creeping paralysis.” ThoseinHershey, D’Antonio writes,maintained apolitesilence onthemat-

terformorethanacentury.

WhenKitty’shealthsharplydeteriorated after1910,thecouplesailed to Europesearchingformedicalcareandvisitingexoticdestinations. Duringthesetravelsor at othertimes,theyvisitedWiesbaden, Aix-laChapelle, Monaco, Nice,Salzburg, Luxor, Alexandria andCairo.Theyrode

theParis-Orient Express, theVienna Alpiner andtheMilano-Roma rail

lines.Hershey boughtticketsontheTitanic butdidn’tsailthedoomedluxuryliner. Paralyzed bytheendof1914,KittydiedonMarch251915attheBellevue-Stratford Hotelin Philadelphia, aftera triptoAtlanticCity.Milton Hershey ranoutfora glassofchampagne. Whenhereturnedtoherhotel room,shehaddied.Hebrokedownintears,andpaidforchocolate company

6 / THE CHOCOLATE TRUST

workers totravelbytraintoherfuneral.Shewas42.TheReverend FrancisJ. ClarksaidMassforKittyattheOliverH.BairFuneralHomeinPhiladelphia

onMarch 27th.Milton temporarily interred heratthecity’s WestLaurel Hill Receiving Vault, andthenrelocated hertotheHershey Cemetery. BYTHE TIME ofKitty’sdeath,MiltonHersheyhadbeenheadoftwohigh-

lysuccessful candy-manufacturing enterprises foralmost30years.He launched theLancaster Caramel Company in1886 withborrowed funds. Hesoldthebusiness in1900 foronemillion dollars, believing caramels to

beafad.ButHershey retainedownership ofLancaster Caramel’s fast-growingchocolate divisionaspartofthedeal,andnegotiated tosupplythepurchaser, American Caramel Company, withchocolate coatings. Hedescribed

thetransaction asa“daddy-longlegs exercise, inwhichIkeptonefooton firstbasewhileIstolesecond.” Chocolate hadlongbeenaluxury treatinEurope, andHershey initially

copiedtheEuropean model.Hemarketed chocolate novelties asBijous, VassarGems,LeRoideChocolat, LeChatNoirandChocolate Blossoms. Her-

shey’s Lancaster plantlisted114oftheseproducts forwholesale inthelate 1890s. Butthebusinessman’s longer-term goalwastobringmilkchocolate

barstotheAmerican massconsumer market,ensuringprofitbyattaining manufacturing efficiencies. Heenvisioned makinga goodprofitsellinga nickelchocolate bar—asmallluxuryaccessible toanyone,poorworking

people included. Todothis,however, would beahugeproject. Heneeded todevelop chocolate-manufacturing processes, buildafactory, hireworkers

andaccesstherawmaterials—importantly, freshmilk. Hersheydecidedearlythathewouldn’t buildhisnewchocolate companyinLancaster, wherehisfirstcompany waslocated.Somesayhehad

beenasked forapolitical contribution forthelocalRepublicans andrefused, whichledtohigherproperty assessments. Hershey looked foranewstart andevaluated alternatesitesforhisnewchocolate factoryinfourdifferent states,includingMarylandandNewYork,beforedecidingontheregion

where he'dbeenborn,the“bowl oftheLebanon Valley, withLebanon and Lancaster Counties inreach—one ofthegreatmilkregions ofthecountry.” HeboughttheHershey family’s ancestral home—as theHomestead, it

would become aHershey landmark insoutheastern Dauphin County—for $10,310 evenbefore theLancaster Caramel transaction hadclosed. Hershey addedthousands ofacresofdairyfarmscontiguous toorneartheHomestead,alongwithmilk-supply depots,andaLebanon creamery. Hisplanfor

THE HOMESTEAD /7

afactory mushroomed intoaplanforanindustrial townasHershey’s vision broadened. Workers installed thefirsttelephone lineforwhatwouldbethe townofHershey in1903, andbrokegroundonthechocolate factory thesame year.TheHershey ParkDanceHallandtheCocoaHouseopenedin1905.

AHershey Pressbookarticulated MiltonHershey’s paternalistic conceptoflodging orphan boysonhisdairyfarms. Hershey planned a“chain of farmstributary tothenewindustrial town....Now allthefarmsanddairies areorganized bytheHershey IndustrialSchool.” Hershey was,morethan anything, ashrewdbusinessman, andonecanimaginehesawthissynergy

between theschool andthebusiness asaningenious example ofcapitalist virtueinaction. There wasnopublic record ofhowmanygallons ofmilkthe orphanboysproduced onHershey’s farms.AWallStreetJournalarticlesaid manyyearslaterthattheschool’s excessmilkproduction wascontributed tothechocolate factory.

Hershey insisted oncleanstreetsandorderly behavior. Inhistown, thereweretobenotaverns, piggeries, glue,soap,candle-making, lampblack factories orblacksmith shopsintheresidential areas.Hershey hiredfarmers,laborers forconstruction projects, relatives tohelpmanagethecompa-

nyand,sometimes, children forhisfactory. Margaret Clark,13yearsold, earnedfivecentsanhourintheHershey Chocolate wrapping room.She

walkedtothefactoryandclocked abouttenhoursaday.Hershey waseverywhere,MargaretClarkrecalledyearslater,“andI don’tmeanjusteverywhereintheworld.Imeaneverywhere aroundhere.”Clarkrecalled Milton

Hershey visiting thecandy-wrapping roomandlosing histemper whenhe thought shewaspacking toomanychocolates intoabox.

THE CHOCOLATE PLANT grossed $10.3 milliontheyearofKitty’s death.It wasenteringa periodofrapidrevenuegrowthasmanufacturing capacity

exploded andthenationdeveloped asweet toothforchocolate. Thecompanysoldtheclassic flatchocolate bar,thechocolate barwithalmonds, and Kisses.Hersheyalsosuppliedothercandymakerswithbulkchocolate to manufacture theirownproducts—a bigbusiness.

Thechocolate company’s potential forgrowth enabled Hershey tolever-

agehisassetsintootherventures. Hecovetously viewed chewing gumasan areainwhichhecouldgrowhisbusiness. Hershey createda subsidiary and developed agum,marketed asEasyChew. Copying hischocolate marketing,

hepriceda six-stick packforanickel. ButHershey quickly ranintofierce competition fromgummagnate William Wrigley Jr.,basedinChicago. The

8 / THE CHOCOLATE TRUST

twobusinessmen briefly engaged inagameofwhocouldoutdotheother.

Wrigley purchased aminorityshareoftheCubsbaseball team,offering him a greatmarketing opportunity. Hersheyoffered$250,000 forthePhillies,

buthecouldn't reachadealwithclubownerJohnMyers, whoaskedfor $350,000. Theill-conceived chewing-gum venture ranintomoreproblems. Hershey appointed acousintorunit,andcostsmounted whentheU.S.governmentinsistedonwar-related taxesonchewing gumingredients. Easy ChewGumcosttheChocolate Kinganeasy$2.5millioninlosses.

Thefive-cent chocolate barsrequired threemainingredients: cocoa, milkandsugar. Hershey controlled hismilksupplies through thePennsyl-

vaniadairyfarms;nowheaggressively pursueda riskymulti-million-dollar schemetocontrolhissugarsupplies. HefirstvisitedCubawithhismother Fanny,whowinteredin Havana—where localresidentsinitiallytook

herplainMennonite garbforthatofaCatholic nun.Hershey thought the Cuban climate couldbeidealforsugarproduction, andheinvestigated pur-

chasingland.Hewouldbethefirstlarge-scale sugarproducer there. In 1916,Hersheyestablished theHersheyCorporation in thestateof Delaware, tobuyorleasesugarplantations in Cuba.Hethenpurchased

tensofthousands ofacresforsugarcanecultivation, anchoring thebusiness aroundCentralRosario, CentralCarmen, CentralSanAntonio, Central JesusMaria,andCentralJuanBautista.“Allthe old-timersat CentralHer-

sheyremember Mr.Hershey’s earlymorningcigar,thecoronahelighted

afterbreakfast ashestepped outoftheoctagonal diningroomandwalked across totheSugar House twoorthreeminutes away,” wroteLebanon Valley’s PaulWallace.

Hersheyalsodisastrously purchased high-priced sugarfutureswhile waitingforhisCubansugarproduction todevelop. Whenthesugarbub-

bleburstafterWorldWarI,Hershey’s futuresplunged topennies onthe dollar.Helostanadditional twomillion dollars. Hershey Chocolate had beenhugely profitable, butitlost$395,739 in1920. Astunned National City Bankappointed anoverseer tolookafteritsloanexposure. Thebank’sR,J. DeCamprelocatedto Hershey. Thechocolate companyreboundedwith

profits ofthreemillion dollars in1921. Thetwomoney-losing ventures—gum andsugarfutures—didn't come

asa surpriseto thosewhoknewHershey. Hehadlostearlycandyretail businesses in Philadelphia andNewYorkwhenhe over-extended him-

selfwithborrowings. Hecourted risk“withanobsessive ardor,’ observed authorCharles Castner inhisregionally published Hershey biography, One

THE HOMESTEAD /9

ofaKind.“Therecordshows that...one personal characteristic thatplayed abigpartinbothstrings ofwinning andlosing wasdirectly tiedtoatrait [Hershey] inherited fromhisPapa.Hewasagambler, andhedidn’t know

whentoquit.” Thispersonal characteristic founditsoutletinotherways.Hershey trav-

eledperiodically underthealias“M.S. Hall,”requesting wiresof$500to $5,000. Hershey’s chauffeur confided toHershey’s doctorandfriendHermanHostetter thatHershey likedhorseracesandwould betonevery horse

inarace,guaranteeing himselfawinner.OnavisittoMonteCarlo,young beauties nicknamed him“Mr.Maximum” because Hershey placedthehigh-

est-allowed casino bets.“Hehad a tasteforCuban cigars, tropical fruits,and champagne, wroteD’Antonio. “Astimepassed, hewould spendhundreds ofthousands ofdollars incasinos andatracetracks. Hewould alsobecome

socomfortablewithwhohewasin Cubathathemadeno effortto hidehis habits.”

ININTERVIEWS, Hershey explained thathegavehisbusinesses totheHershey

Industrial School because oftheinstitution’s goodworkandhehadthought aboutthedecision sinceKitty’s deaththreeyearsearlier.

InNovember 1918, Milton Hershey transferred ownership ofthechocolate company, theundeveloped Cubansugarlands,hisnon-chocolate diversi-

fiedbusinesses, dairyfarmsandthetownofHershey itselftotheexisting

trustfundfortheorphanage andschool,vastlybroadening itsassetbase.

Allthesebusinesses werecontained withinonecorporate entityandstock certificate: forthechocolate company. SamHinkle, President ofHershey

Chocolate from1956to 1965,notedinanunpublished memoirthatwithin onlyafewdays,Hershey leveraged thechocolate company toborrowmillionsofdollarstoexpandintoCuba,andplacedthechocolate company into

thetrustfortheorphanage. WhatthismeantwasthatjustasHershey was takinghugeriskswithhischocolate company byborrowing millions ofdol-

larstodevelop a Cubansugar-refining complex, hewasgivingtheleveraged chocolate company awaytohisorphanage. Why?

Hershey alsoinformed theInternalRevenue Service in 1918 thathe hadcontributed hisassetstothecharity. TherecentWarRevenue Acthad allowed forthenation’s firstcharitable taxdeduction. Those whohavelooked atMilton Hershey’s finances speculate onadditionalmotivations forhisgenerosity beyondjustphilanthropy. Hershey, or

hislongtime attorney JohnSnyder, realized thefinancial risksoftheCuba

10/ THE CHOCOLATE TRUST

venture, andthatHershey's businesses neededspecial legalprotections. Placing thechocolate company insideatrustfundforanorphanage would makeitnearlyimpossible forcreditors toseizeifHershey’s leveraged businessdealings facedbankruptcy. Moreover, Hershey didn’thaveanythingto

lose.Hewasnow61yearsold,childless andawidow. Heapparently hadno intention ofremarrying andwould gainsubstantial, perhaps inflated, federaltaxbenefits withthecharitable contribution underthenewfederallaw. Asa practicalmatter,Hersheyalsowouldn'tfaceanydiminished lifestyleeventhoughhehadgivenvirtuallyeverything heownedawaytothe

orphanage. Hislegalandtaxmaneuver meantthatcontrol ofhisbusiness

andpersonal assets,including thetownofHershey, weresubjecttothedictatesinthe1909Deed.TheDeednamedtheHersheyTrustCompany as legaltrusteeoftheorphanage’s assets.MiltonHershey ownedthebankand chaireditsboard—thus, hecontinued tocontrolhiscompanies andassets

through it. The1909Deedalsoaddressed oversight oftheorphanage. Hershey

didn’thavetoworryaboutlosingcontrolhereeither.TheHersheyTrust Company boardappointed theorphanage’s BoardofManagers. Andthis bank’sboard,basedontheDeed,couldonlyselectthoseManagers froma

verysmallpoolofcandidates: themselves! Sothetwoself-perpetuating andinterlocking boards—one forthe

HersheyTrustCompany asfinancialfiduciary fortheorphanage’s assets, andthesecondfortheorphanage’s administration —werecomposed of

thesamemen,headed byMilton Hershey. Thehighly contrived charitable scheme, withneartotalpower overtheorganization aggregated intheboard ofthefor-profit Hershey TrustCompany, stillexiststoday. Before1918,Hersheyran hiscompaniesas anyotherprivatebusinessmanwould,andprivately bankrolled theHersheyIndustrialSchool.

After1918, Hershey ranhisbusinesses asa fiduciary fortheorphanage, whose teenage students livedonwhathadbeenhisdairyfarmsandmilked whathadbeenhiscows.Nowthosedairyfarmsandcowswerepartofthe orphanage trustthatMiltonHershey controlled throughthedictatesinthe 1909Deed.ProfitsfromtheHersheybusinesses rolledintotheHershey

TrustCompany. Milton Hershey dispersed theprofits totheorphanage, or

tohisbusinesses ascapital. Hershey's organization wasuniqueinAmerican industry, withfor-profit businesses hitcheddirectlytoacharity—an arrangement thatmostlylikely

wouldberejected todaybytheInternal Revenue Service. Theconvoluted

THE HOMESTEAD / 11

structuredrewtheattentionoftheIRSeventhen.Itwasonlyintheearly

1920s, afterseveral yearsofinvestigation, thattheIRSapproved Milton Hershey’s charitable donation ofhiscompanies andlandtotheHershey

Industrial School. Overtime,thefiduciary marriage oftheHershey companiesandthecharitywouldbethesourceofproblematic dealsandconflicts ofinterest,andthesourcesofmismanagement andscandal. Atthetime,though,it appearedto thepublicasan actofcorporate generosity ofhistoricproportions. TheNewYorkTimessplashed Hershey’s storyonitsfrontpageonNovember 9,1923withtheheadline,“M.S.HersheyGives$60,000,000 TrustforAnOrphanage,” adding,“Pennsylvania

Chocolate Manufacturer Transfers HisEntireWealth.” Theorphanage at thistimewasmostly acollection ofdairyfarmswithaboutahundred boys whoattended public highschool. Hersheytoldthenewspaper ofhisplansandphilosophy in a lengthy featurepublishedonNovember 18:“Iam66yearsoldandI donotneed

muchmoney. Mybusiness hasbeenfarmoresuccessful thanIeverexpected ittobe.IfI shoulddropout,whatwouldbecomeofthebusiness, thecapital,theearnings? Asmattershavebeenarranged, thebusiness willgoright on,a considerable partoftheprofitstobeusedfortheHersheyIndustrial School. Thecapital,ofcourse,remainsintact.Well,Ihavenoheirs—that is,

nochildren. SoIdecided tomaketheorphan boysoftheUnited States my

heirs.Theorphanboyhasahardertimethananybody else,youknow.There arealwaysrelatives oroutsiders totakeanorphangirl.Girlsareusefulin thehomeandpeoplearegladtogetthem.Butboysarelikelytobelooked uponasanuisance.”

Hershey continued: “Ourboysareourfinestpossession. Withthem

mustresttherealizationofallthosehighhopesheldbythisgeneration. Theyarethefutureitself,growingupbeforeoureyes.Andwedonotgive themthekindofcaretheyshouldhave.Oftenwehearitsaidthat‘children arenotwhattheyusedtobe.’Well,Ihaveanideathechildrenarejustabout whattheyalways havebeen.Sometimes Iwonderiftheparentsarenotdifferent.Thebiggestinfluence inaboy’slifeiswhathisdaddoes.Hewatches himatthedinnertable,goingofftowork,cominghome.Heknowsexactly

hisdad’s wayoflifeandmostofhisthoughts. Whenhisdadisafine,brave man,bearing hispartofthestruggle likemanshould, theboyisgoingto

bethesamesortofman.Butifhisdadhappenstobeshiftless ormeanor weak,theboyathissideisshapedthesameway.Everyboy,goodorbad, highorlow,feelsthathisdadisthemodeloflifeheshouldfollow. I wish

12/ THE CHOCOLATE TRUST

everydadcouldgetthatideaintohismindandseewhatitwoulddofor him.Andwhenaboydoesn’t happen tohaveanysortofdadheisaspecial markfordestiny.Iamafraidthatmostofourorphanboyshaveabadtime ofitandthatmanynevergettherightstart.Theytellmethattheyoungsters

whogotoprisonnever hadachance. Well, Iamgoing togivesomeofthem achance, inmyway.” Thestorywasamarketing coupfortheHershey chocolate brand,now

associated withorphansandphilanthropy. NeithertheNewYorkTimesnor theothernewspapers reportedonthecomplexofinterconnected boards thatallowed MiltonHershey toretaincontrolofhiscompanies andindustrialschool.TheNewYorkTimesalsodidn'tmentiontheindenturing practice.Someoftheboys—who arenowveryoldmen—say theirindentures weren'tmentioned byhouseparents or teachers.Someoftheboysdidn't evenknowoftheindentures untilmanyyearslaterwhentheyheardofthe

contents ofthe1909 Deed. School officials toldtheboysthatthefarmchores taughtthemresponsibility andagoodworkethic. Inevitably therewerewhispers ofcheaplabor.Through thefirstdecades of the 20thcentury,child-careadvocatessoughtto endthe persistent indenturing ofcharitycasechildren.TheU.S.Children’s Bureau,headed

bychild-labor activist GraceAbbott, notedthatPennsylvania wasoneof onlyafewremaining statestoallowindenturing. These children typically workedoffthecostoftheircarethroughtheirindentures. AMarch1926articlebyRaymond ClapperofUnitedNews,headlined “ChildIndentureBroughtOutin BureauReport,”saidsomeindentured

children werevirtualservants. “Theunderlying principle ofalltheselaws whichareinherited fromtheenlightened daysofHenryVIII,”Clapper wrote,“isthata farmerorhousewife canobtaincheaphelpbysupplying boardandroomtoindentured children.”

InWisconsin, abureau agentobserved anindentured 12-year-old girl whohelped careforthreechildren, prepared mealsandmilked fiveorsix

cowsa day.But“themanwhohadherundercontracttoldthefederalinvestigator‘hewouldnottakeanotherchildunlessI cangetoneyoungenough soI canbreakthemintowork.”

Thereportmentioned anunidentified Pennsylvania County where the

Bureaufoundchildrenwho“areunderindenturecontractsthatkeepthem virtualpeonsuntil1938or1940.” TheorphanboysattheHershey Industrial

School would remain indentured through theearly1950s.

2 BOYS ON THE FARM TheDepression “Iwasoldenough torealize thatonelessmouth tofeedwould

begoodforthefamily.” —ALUMNUs JOHN “Mac”AICHELE

"3"HECIGAR-CHOMPING MiltonHershey, short,stoutandruddy-faced, | : witnessed theheyday ofhisorphanage intheDepression ofthe1930s. Carsbrought boysbythehundreds totheHershey Industrial School

fromBaltimore, Philadelphia, Scranton, andPennsylvania’s coal-mining andmilltowns.Nursesexamined eachone,andadmittedthehealthyones.

Theschool officials sentthemothers awayandbanned visitsforamonth. Boysbawled inkitchens, orbedrooms, orswinging onswings whenthe

realitysunkin:they'dbeseparated frombrothersandsisters, grandmothers andgrandfathers, auntsanduncles.SingleMennonite womenlookedafter

theyounger boysingrouphomeswithasmanyas30boys,andmarried couples looked aftertheolderboysonworking farms. Hersheyconstructed homesorboughtnewonestokeepupwiththe greatlyincreasedneed.Hershey’s pacequickened asbanksandfactories closedintheDepression’s economic vise-grip. ThePinehurst homeopened

inFebruary 1931, andthatyearasmallgroupofthankful Home Boyalumni heldtheirfirstformal banquet intheWalnut Room oftheHershey-owned CocoaInn. HersheyaddedtheWillowWoodhomeonCrestLanein September

1931 andCloverdale, attheintersection ofMeadow LaneandU.S.322,in November. Broad Acres opened inJanuary 1932 andBloomingdale inMay.

Men-O, namedaftera distantcousin,openedinSeptember. Therewerenow 464orphanboysenrolledattheschool.

14/ THE CHOCOLATE TRUST

ThenumberoforphansinAmerican orphanages hitahighof144,000 in

1933; anadditional 150,000 children roamed cities andsmall towns ashomelessvagrants. Wellover10million Americans wereoutofwork. Theunemployment rateinDetroit, Cleveland andotherindustrial citiesapproached 50 percent. TheDowJonesIndustrial Average hitahighof386onSeptember 3, 1929andthendropped likearock.Itbottomed outat41onJuly8,1932, having

lost90percent ofitsvalue. FrankWalker, president oftheNational Emergency Council, captured thenation’s moodwhenheobserved ofthenation’s economic calamity, “Isawoldfriendsofmine—men I hadbeentoschool with—digging ditchesandlayingsewerpipe.Theywerewearing theirregular business suitsastheyworked because theycouldn't affordoveralls andrubber

boots. IfeverIthought, “There, butforthegrace ofGod’—it wasrightthen.” Milton Hershey opened theSilverbrook andLongmeads homes inearly 1933, thenMaple Lawn, followed byMidvale, followed byArcadia, Englewood,andVenice. Thatyear,Hershey alsoresponded tothismassive crisis ofneedbyexpanding thepotential applicant pool,whenheraisedthemax-

imumageforadmission fromeighttofourteen. Hershey alsoopened the institution toboyswhose mothers haddied,though hepreserved hisracial

andgenderrestrictions—no blackorphanboysandnogirls.Thatfallof 1933, therewere604boysattheschool,doublethenumberof1930. TheboysoftheMiltonHersheyIndustrialSchoolhadbeenattending

public highschool. NowMilton Hershey financed theconstruction ofSenior Hall,spending $2.5million sothattheorphanboysonhisfarmscouldbe educated separately fromthepublicschoolchildren. Atrolleytransported theboysfromtheirgrouphomes,upthehillanddirectlyintotheschool,

which hadsuchunheard ofamenities asanindoorswimming pool.Robert Evans, a32graduate, penned theschool’s almamatertothetuneofAnchors Aweigh. Theexpansion continued through theeveofWorld WarII,whenin 1939enrollment hit1,018. Theschoolandorphanage ranlikea clockduringtheseyears: a self-

sustaining village offarms,orchards, dairyherds,tradeschool andcommercial kitchen. School staffassigned eachteenage boyaHershey-owned farmandcow,orcows,tomilk.Bynowthereweremorethanninetyfarms withnamesand numberssuchas BroadAcres(1),Arcadia(20),Oakleigh (38),Bonniemead(50)andRollingGreen(61).

Younger boyslivedinfamily-like grouphomesneartown.Theywere

lookedafterbyMennonite women.‘The boysplayedoutsideonsunnydays, andin thebasements onrainyones.SherwinBradyrecallstheseparate

BOYS ONTHE FARM / 15

kitchen building located nearthejuniorhomes. Whenthehousemothers finished, theycalled out,“Carry thecans!” Boys dropped theirbaseball bats orjumpedoffswingsandrantohoistmetalcansoffruitsandvegetables to astoragebasement.

Theteenage boysmilked before school, andafterschool. “Three [cows]

inthemorning, andthree[cows] intheafternoon,” onetoldmeinaninter-

view. Atruckpicked upthemilkandtransported ittotheHershey Dairy. HomeBoysshoveled manure,cuthay,washedSundaydishesandpolished silverware. Somefarmsweretwoorthreemilesfromschool.Boyscouldn't

belateformilking. AHomeBoywhowaslateformilking hadtorun,his armsandlegspumping, alongacountry roadtogetthereontime. John“Mac” Aichele enrolled in1935. “You knowyouweren’t allowed

familyvisitsforamonth.Andwhenmymothercametoseeme,Icriedlike ababyandmothersaid,‘T'lltakeyouhome.’ ButI saidno.Iwasoldenough

torealize thatonelessmouthtofeedwould begoodforthefamily.” Charles Bofinger losthisfatherontherailroad. Bofinger’s twobrothers

hadgottenintoGirardCollege, thePhiladelphia tradeschoolandorphanagethatHershey usedasamodelforhischarity. Hecouldn't. ItwasHershey forhim.“Ourneighbors had acar, anditwasthefirsttimeI wasina car.

ThenwhenwegotnearHershey I sawallthesefarms.” Charles waschecked overbyanurse.“Mymother wasthereandshesaid“Take careofyourself,

andshesaid,‘Goodbye,’ andthatwasit.”Thatwas1936.Heestimated that duringhischildhood inHershey hemilked13,000 cowsonHershey farms.

PhilipDiPietro’s fatherhadchoked onmustard gasintheWorld WarI battletrenches and,withweakened lungs, laterdiedoftuberculosis. Philip

rebelled athome;onedayhepuncheda kidinhisReading neighborhood. Hesprintedintothestreettogetawaywithoutlooking,andgotsideswiped byacar.In 1929, hisfamilydroppedhimoffonthefrontporchoftheHer-

sheySchool, DiPietro remembered. “Thatwasaboutit.MissBarker came

outandtookcharge.” Hismomremarried andseemedtoforgetabouthim.Philipthoughtall kidswereraisedinanorphanage. Hesleptina smallroom,“thesizeofa

closet” withnoroommate because hehadtrouble getting alongwithother boys.“Everyone wasonthefarmworking theirassoff.Wehadcows. We hadmules. Wehadtocarry alot ofshit.”Milton Hershey checked onthe Midvale farmandtheotherfarmsduringunplanned visits.“Hestayed for

afewminutesandsmokedhiscigarthroughthehallways,” saidDiPietro,

whograduated in1940. “Itwasfragrant. Cuban.”

16/ THE CHOCOLATE TRUST

KenBrady’s fatherFrankhadbeenatraveling salesman. Hediedin

1929atage36,wastingawayfromterminalcancerina rowhomeinWest Baltimore. Kenwassevenyearsoldatthetime.Hehastworecollections of hisdad:ajoyfuldaytriptothecentennial celebration oftheB&ORailroad

in1927, andvisiting himashelaydyinginacurtain-drawn second-floor bedroom. Thecancerdrained thefamily’s savings, andthewidowed Elsie abandoned therowhouseforatwo-bedroom apartment. Relatives helped outwithfood.AgrainypictureatthetimeshowsfiveolderBradychildren: theeldestgirl,Flordrid, dressedinawhitetunicdress,withherhairstyled

inaflapper bob,standing inaconfident, hands-on-hips pose.Beside her

wasKeninknickers.Nextinlinewasa hatlessSherwin; thenFrankina stripedtieandjacket,and,finally,Jeanettein a whiteponcho.

TheDecember afterFrankBrady’s death,Ken’sAuntIreneandUncle

Walter droveKenandhisbrothers northintoPennsylvania. Thehumming Model Acrossed theSusquehanna Riverandspeeded intoHershey. Snow covered thebarnsandfarmfields.Kenwouldn'tforgetthedate:December 9th.“Whenwegottothehome,theyleftusveryquickly,” saidBradyofhis aunt,uncleandmother.“Ireallydidn’tgiveitmuchthought.Itwassuch

achange oflife,goingfromafamily totheindustrial school. Someboys missed theirmothers andcried,butI didn’t. Wereally didn’t haveahometo

gobackto.”Brady, whograduated in1940,saysofthefarmworkinhisteen years,“IjusttookitasaformoflifeandI didit.Itwasapleasure ifyougot acowwhogave a lotofmilk.Wewerealways assigned thesamecow.Ifyou

wereassigned cowNo.32,youalways gotNo.32.Whenthecowstopped givingmilkyougotanewone.Theonesthatjusthadheifers always gave themostandyouwantedoneofthose.Itwasa thrilltofillthebucket.It wasroutineifyouhadhalfabucket.Ihavenoideawhetherthefarmsmade muchmoney. Buttheykeptusbusy.”

Teenage boysworked hardonthefarms,buttherealsowastimefor themtoentertain themselves. OneHershey Industrial School alumnus

wrotealettertomeofhismemories, stillvividaftermanydecades: “OneI haveisofSaturday morningbarncleanup. Therewasa tracksystemwith

suspended cartsthatwereusedtocarrythemanure fromthebarntothe pitwhereitwasaccumulated untilitcouldbespreadonthefields. After cleaningthecartofmanure,someone wouldgetintothecarandothers wouldgiveita strongpushsoitwouldsailoutofthebarn,turnthecurve overthepit,andiflucky,beabletobepulledback,”sotheboyinthecar

coulddisembark. “Thelessfortunate wouldmakethecurveandthecart

BOYS ON THE FARM / 17

woulddumpthe‘passenger’ intothemanurepit!Itwasallinfunandall hadmanylaughs.

“Inthefall,therewerehikestothesurrounding areatopickuphickorynutsorblackwalnuts. InthecaseofMen-O, thehousemothers would

bakecakesorcookies withnutmeats. Atothertimes,thehousefather would supervise theolderboysin themakingofhomemade walnuticecream. Anotherenjoyable eventwasmakinghomemade rootbeer”—supervised by

houseparents, whowould oversee thehomebrewandhelpputitinbottles. “This weenjoyed ataFourthofJulybonfire alongwithhotdogsandother

picnicstuffsentfromthecentralkitchen.”

INTHE MIDST oftheDepression, Hershey spentmillions ofdollars—some estimate easily tensofmillions ofdollars—on construction forthetownof Hershey withmoney fromtheorphanage trust.Mostofthismoney came

fromprofitsathisCubansugaroperations, whichwasnowhugely successful. TheHershey ParkGolfCourseandClubhouse openedinJuly1930.The nextyear,Hershey completed theluxuriously appointed Hershey Commu-

nityBuilding, withitslocker rooms, gymnasium, swimming pool,library,

socialroom,twotheaters, twelveclassrooms, lodgingfor125men,hospital andnurse’s quarters. Hershey returnedfromavacation intheMediterranean withapostcard

ofa35-room hotel,andtoldhisbuilder, D.PaulWitmer, “Ilikethishotel; Iwantyoutobuildonejustlikeitontopofthehill.”Onlyhedidn’t wanta 30-room hotel.Hewanteda 200-room hotel,butsettledfor150rooms.The

Moorish-themed HotelHershey opened inMay1933 withacircular dining roomsothateveryone hadthesamepanoramic viewoftheLebanon Valley.Thejust-built Hershey Community Theater helditsfirstperformance severalmonthslater,onSeptember 1,1933, withNewYorkstagerevueacts. MiltonopenedSeniorHall,thejunior-senior highschool,in1934.Hershey expanded hispetproject,theHershey Zoo,withabirdhouse. Earlyon,HersheysetasidelandfortheHersheyamusement parkas

entertainment forlocalresidents andatouristattraction. Itwasunfenced,

andpeopleorHershey School boyspaidforindividual rides.Manymothers

oforphan boysmetthereduringthesehardeconomic years. Theparkdrew tensofthousands ofvisitors ayear,andwaspartoftheorphanage trust.It would betransformed intoHersheyPark inthe1960s and1970s.

In1935, thechocolate company openeda newoffice buildingonChocolateAvenue—built withnowindows, inordertomaximize workerefficien-

18/ THE CHOCOLATE TRUST

cy.ThatwasoneofHershey’s innovations thatnever caught on.TheHershey SportsArenaopenedinlate1936,andtheHershey Gardens in 1937. Hersheyemployed morethan6,000workersin centralPennsylvania duringtheDepression. Somebelieved thatHershey spentsoheavily totake advantage ofDepression pricesforconstruction materialsandlabor,cre-

atinglargeprojects atlowcost.Thisissuewasstilla sorespotinthe1990s, asrevealed inapublic talkontheTrust’s history byTrustboardmember

WilliamAlexander. Hedrewtheattentionofhisaudience, agroupoflocal officials, tothenumberofcarsparkedadjacent tothearenaprojectinaphoto fromthe1930s, pointing themoutasevidence ofworkers’ relative prosperity. “BothMr.Hershey andMr.Witmerfeltthatskilledmanpower shouldbe paidawagecommensurate withtheskillandtalentthattheybroughttothe projectirrespective ofthehighunemployment rateinthecountry....These workers livedwellasindicated bythequantityofcarsinthispicture.” Thebusiness magazine Fortune published anarticlein1934thatpraised Hershey’s philanthropy, butraisedconcerns abouthisquasi-feudal swayover

thetownanditseconomy. Theauthor's tonewasbiting: “Onwindless summerdaysthetownofHershey ispermeated bywhatthePennsylvania Dutch

farmersoftheneighborhood call‘dachockle shtink’—the sweetish, cloying smellofmilkchocolate inthemaking.Themoralatmosphere ofthetownis

pervaded byasimilar aroma—the sweet andoppressive odorofcharity. ...To givetoomuchoutright sapsacommunity's self-reliance andinjures itspride. NotonlyhasMr.Hersheymadegiftswithoutinvitingthecooperation of thetown,buthealsohaskeptcontrolentirely inhishands.Hisschoolowns everything andhismen,notthecommunity's, manage everything....He has

astrong will,theego,andlimitations ofmanyanother self-made man.”

WITH ECONOMIC FORCES destabilizing thetown,Hershey agreedwithDerry Township publicschoolofficials thatthetownneeded a juniorcollegeto keepjobless youngmenandwomenoutofthepoolhalls,andoffthestreets.

According toTheRiseandDemise oftheHershey Junior College byRichard Russell Klotz,thenumberoftwo-year colleges intheUnitedStatesroseby aboutone-thirdbetweenthelate1930sandthemid-1960s, from556institutionsto719.Publicschoolsoruniversities rantheseinstitutions, which

weresimilar totoday’s community colleges. Hershey created a separate trustfundwithintheM.S.Hershey Foundationandendowedit with5,000sharesofchocolate companystockto financetheHersheyJuniorCollege. Because thisnewtrustfundalsowas

BOYS ONTHE FARM / 19

administered bytheHershey TrustCompany, italsofellunderhisultimate control—just liketheorphanage trust.TheM.S.Hershey Foundation hada

separate board, andwould shareboardmembers withtheBoard ofManag-

ersandtheHershey TrustCompany board. Theideaofajuniorcollege appealed tothepractical, work-focused Hershey:a boyorgirlcouldadvance theireducation afterhighschoolatminimalcosts,ortheycouldearncreditstowarda four-year degree.Hershey

calmed concerns among thefiveareafour-year colleges, telling themthat theHershey Junior College would bea“feeder school” forthemandwould

sendtheirinstitutions better-educated students. TheHershey JuniorCollege wasfreetoHershey boysorgirls,though theywouldpay$25to$40inbooksandsupplies. Because itwasacommuterschool,studentsdidn’tboardthereandcouldpursueacademic, business administration andsecretarial, orindustrial studies. Theinitialplancalledfor ninefaculty members, withclasses heldintheHershey Community Building. Thelocalpublicschoolsuperintendent J.I.Baugher explained themissionintheHotelHershey High-Lights inJune1938: “Mr.Hershey, inkeeping

withtheneedsofthetime,feelsthatitbecomes thedutyofcommunities to

provide profitable employment forouryoungpeople, thatifindustryhasno workforthemuntiltheybecome18,19or20yearsofage,theneducation of arealisticandpracticalnaturemustfillthegap.”

OnSeptember 14,1938, Milton Hershey andothers attended theopen-

ingdayceremonies fortheHershey JuniorCollege intheLittleTheaterin theHershey Community Building. Therehadbeensomejittersabouthowit wouldgooff.Hershey residents seemedskeptical thattheinstitution would open.Postersadvertised theopeningofthejuniorcollege, andregistration hourswereextendedfromeightinthemorningtoeightatnightforshift chocolate factory workers, because fewpeoplehadpre-registered. Butbylate September, theofficial registrar’s tallyshowed 66full-time and65part-time

students—more than120,andhigher thanexpectations. Milton Hershey, a fourth-grade dropout, nowwasfinancing twoeducational institutions with hischocolate profits: theHershey Industrial School andtheHershey Junior

College. Asthenationdescended intoWorldWarIIandMiltonHershey himselfintooldage,theHershey JuniorCollege wouldbeHershey’s lastbig newcharitable project EARLY ON,Hersheyhad heldall his assetsunder one umbrella:the choc-

olatecompany. Butasthechocolate companybecamehugelyprofitable,

20/ THE CHOCOLATE TRUST

anditsactivities diversified, thisbecame economically inefficient. In1927, Hershey attempted todividetheholdings optimally byseparating his

business empireintochocolate andnon-chocolate entities.Heincorporatedthenon-chocolate entitiesinthenearbytownofLebanon, asHershey Estates.Thecompanies withinHershey EstatesincludedtheCubansugar operations, thePennsylvania farms,HersheyAbattoir(Hershey Meats),

Hershey Baking Company, Hershey ColdStorage, Hershey Community Inn,HersheyCountryClub,HersheyDairy,HersheyDepartment Store, HersheyFeedandGrain,HersheyFarmingImplements, HersheyGreenhouseandNursery, Hershey Laundry, theHershey amusement park,HersheySewerage Company, HersheyTelephone Company, HersheyTransit CompanyandtheHotelHershey. Thesewouldremainprivatelyowned

bytheTrust.

MiltonHersheythensoldsharesin thechocolate companyto Wall Streetinvestors inaninitialpublicoffering, orIPO,in 1927.Thecompanyhadjustintroduced pourableHershey syrupaswellasthepopularMr. Goodbar, andthetwenties economic boomhadjazzedstockmarketvaluationstoahistoricpeak.TheTrustretainedmajority votingcontrolofthe chocolate company. In 1929,Hershey negotiated athree-way mergerwithKraftCheeseand

Colgate-Palmolive. Thenewconsumer products company would becalled International Products Corporation, andwouldbecapitalized with$100 million inafirstroundoffinancing. Hershey’s orphanage wouldown40

percentofInternational Products.Sixtypercentoftheownership would besplitevenlybetween KraftCheeseandColgate-Palmolive shareholders. LocalresidentsfearedthatMiltonHersheywouldlosecontrolofthe

chocolate company. ButHershey withheld ownership oftheCubansugar

operations, thenvaluedat $70million.Atthetime,Hersheyconsidered himselfatycoonintwoindustries: sugarandchocolate. Hershey Cubaefficiently produced sugarforexportnotonlytoHershey Chocolate, butalsoto Coca-Cola andotherU.S.corporations. Thebusiness ownedCubanNational

Railway Bonds andtraded tobacco, mahogany, hempandcocoa. Ships trans-

portedHershey sugartotheUnitedStates, andPennsylvania anthracite coal toCuba.Duringa second roundoffinancing forInternational Products, Her-

sheycould borrow against theCuban operation toraisethefundstoacquire 55percentmajority controlofInternational Products. ThedealwasreminiscentofHershey’s saleofhiscaramel company in1900, whenhe’dretained his chocolate division andthennegotiated achocolate supplier agreement with

BOYS ONTHE FARM / 21

American Caramel. Hershey circulated thepapers forthethree-way merger onOctober 28,1929. Thestockmarket crashed thenextday. Thenation’s economy wasabouttodescend intotheDepression. The

International Products dealfellapart.Thousands ofcompanies wentbankruptinthehardtimesthatfollowed, butthechocolate company withitsfivecentchocolate barswasn’t oneofthem.Hershey officials alsobeganusingthe

orphanage tocastitscommercial dealings inabetterlight.Twoevents show

howHershey’s charitable venturewaswielded tothrowacloakoflegitimacy overthecompany’s activities. Whenfederalregulators proposed newrules thatcouldharmHershey’s Cubansugaroperations, Hershey executive and confidante PercyAlexander “P.A.” Staples testified inAugust1933beforethe

Agricultural Adjustment Administration, saying, “The Hershey Corporation isanAmerican corporation, completely owned andcontrolled intheUnited Statesandheldintrustaspartoftheendowment inafundwhichMr.Milton S.Hershey, ofHershey, Pa.,hasestablished forthemaintenance andeduca-

tionoforphan boys, andweareasking thatthisjuvenile groupofAmerican stockholders benotdiscriminated against infavor ofanygroup ofAmerican

stockholders asproposed byinthistentative draftofProposed Marketing Agreement.” Staples’ comments weren'ttotallyaccurate: theorphanboys themselves mayhavebenefitted fromHershey’s corporate entities, butthey

hadnodirectownership inthecompanies.

Atthechocolate plant,laboractivistchocolate workerRussell“Bull” Behmanwaveda redhandkerchief onApril2, 1937, andfellowchocolate workersjoinedhimin sit-downintheplant.A pro-company, anti-union

flyerdistributed tothecommunity framed thesit-down strikeasaninsult toMilton Hershey, declaring inboldlettering: SIT-DOWN ISASTRIKEAGAINST ORPHANBOYS AIMSOFM.S.HERSHEY WHOBROUGHT HISCOMMUNITY THROUGHTHEDEPRESSION WITHOUTASLUMPBASEDON LONG-TERM PLAN—GAVE ENTIREWEALTHFOR BENEFITOFORPHANS

TheflyerpraisedMiltonHershey’s “metropolitan air.”“Today, this 79-year-old gentleman, aspresidentoftheHersheyTrustCompany, is watchingeverydollarspentforthehappinessandcontentment ofthe peopleofHershey.... Hershey wastheonlytowninAmerica thatthewolf ofdepression didnotenterafterthecolossal crashofthestockmarketin

22/ THE CHOCOLATE TRUST

November 1929. Morethan6,000peoplewereemployed between thechoc-

olateplantandHershey Estates, workers coming fromPalmyra, Swatara, Hummelstown, Annville,Campbelltown, Elizabethtown, Middletown, Lebanon, andothertownswithinaradiusof15miles.” Itconcluded: “Heis

working tobenefit thecommunity, anda sit-down strikeisreally asit-down strikeagainst theorphan boysheiseducating.” Thestrikeendedviolently inmid-April whenanantiunion crowdof aboutthreethousand,armedwithbaseball bats,pitchforks andleadpipes, stormedthefactoryandbeatsomeofthestrikingworkers. SomesayMilton

Hershey agedovernight: inhispaternalistic worldview, hemusthavefeltthe

workers’ strikeasapersonal betrayal.

HERSHEY’S PRESENCE loomedovertheorphanboysoftheHersheyIndustrialSchool.Alumniwithwhom I spokestillhavevividmemories ofthe

manfromthe1930s and1940s, conjuring thechocolate magnate driving around townwithanurseorchauffeur, handing outdiplomas, visiting studenthomesandattending sportingevents. RalphWolf,whowas92yearsoldin2012,remembered meetingMilton Hershey severaltimes,andreportedtheolderman’sexactwordstohimas

hegraduated in1937: “You didagoodjob,Ralph.” Wolfemphasized his ownnameinabaritone voice. Wolfreceived hisdiploma twomonths early in 1937totakeajobina Lancaster machineshop.“Howdoyoulikethem bucketofapples?” Wolfasked,savoring thememory. Helaughedandthen repeated hisimpersonation ofMr.Hershey: “Youdidagoodjob,Ralph.”

LeviFilepas waseightyearsoldwhenacarpulled upoutside hisstudent home.Heandotherboyswereplaying baseball. Milton Hershey satinthe backseatandaskedifthey'dlikearide.“Weallpacked inthecar.”They droveseveral milestoErb’sCorneratRoute322neartheMasonic Hall,and

thenreturned totheballfield. Another time,Hershey walked intothegyminSenior Hallduringa

basketball game.Filepaswassittingnearthescoringtable,andjumpedup tomakeroomforhim.“Ithoughtitwastherightthingtodo,”hesaid.“He tookmeandmybrothersoutofrealpoverty.” BeforeFilepascametothe

Hershey School, lifehadbeenhard:hismother VerahaddiedofpneumoniaanddadObradlosthisjobatBethlehem SteelinLebanon duringthe Depression. Some nights, Leviandbrothers George andMichael shared a canofbeansfordinner.“Weburnedourfurnituretokeepwarm.”

Ralph Hetrick andArtieJugel hadbeenwalking downHomestead Road

BOYS ONTHE FARM / 23

whenthebigblue-gray carpulledupaheadofthem,andtheyrantocatch

up.Anursewasdriving.Sheaskediftheywanteda ride.Jugelopenedone backdoorandHetrickopenedtheother.Anoldmanshiftedhisseattothe centertoallowroom.“Hehadonthathomburg hat,that’showIknewitwas

Milton Hershey,” Hetrick said.Theychatted abouttheafternoon’s football game. Hetrick wasfiredupoverlosing. “IwasputoutaboutitbutMr.Hersheysaid,“Oh, that’s justagame.” Hershey’s nursedrovethempartofthe

waytoBonniemead, andtheywalkedthelastmile. AroundChristmas, Hetrickandothergleeclubboyscaroleddowntown.

“Wewould stopatacorner wethought wasgoodandwewould sing,” said Hetrick, whograduated in1947. “Itwassoftlysnowing. Itwasbeautiful.

Peoplewouldstopandlisten.Wemighthavewalkedthatnighttwoorthree milesaroundtown.”TheorphanboyssangtraditionalChristianholiday songs:“Hark!TheHeraldAngelsSing,” “Silent Night”—no “Jingle Bells”or

otherpopculture holiday songs. Director JayAtleeYoung suggested they singforMilton Hershey athisHighPointmansion. Hershey looked down

onthemfromthesecondfloor,wearinghissmoking jacket. Hershey’s deathin October1945didn’tcomeasa surprise.Hewas88 yearsold,andfailing.Hebecamemischievous inhisolderyears.Heplayed

pranksanddidn'tlistentohisnurses. Hedrankchampagne andatecaviar. “Hewouldfiddlearoundfortwohoursfinding excuses nottogotobed,” oneofhisnurses,SusanSpangler, wasquotedassayinginD’Antonio’s biography.He’dturnupthebrimofhishatlikea Vaudeville comedian. “He

looked likeamanwithout acent,”Spangler said.School officials toldthe boysthatwhatever happened theycouldcontinue theirstudies, because Milton Hershey hadprovided forthem.“Iheardthechurch bells” thatrang

whenHershey died,saidWilliamWeaver ofLockHaven,oneofHershey’s orphanboys.“Wewereoutinthefieldmakingcorn.Weknewwhathappened.Westoppedandwewalkedbacktothefarm.”

OthersheardofMilton Hershey’s deathonaBoyScouthikingtripor

fromhouseparents. Thenewsbouncedaroundtheglobeonradio.Onthe libertyshipSSCarlSchurz, whichwasferryingtroopsbetween theAleutian IslandsandSeattle,RalphBoettgerawokeinhisbunktotheradio.“They

saidHershey, Pa.,andIknewrightaway itwasanannouncement ofMilton Hershey’s deathbecauseIknewhowoldhewas.I thinkitwasOctober13,”

saidBoettger, whohimself wasthen88yearsold.

Stationed attheChanuteAirForceBasesouthofChicago, LeviFilepas

asked foremergency leave fromhiscommanding officer. Filepas walked and

24/ THE CHOCOLATE TRUST

hitchhiked toCentral Pennsylvania. “Iwasinacattletruckinthebeginning and,boy,didthatstink.AndthenIgota ridewithaNavyensign whowas goingtoNewEngland, andhepickedmeup.”

Principal W.Allen Hammond toldtheboysatthememorial service that Hershey was“practical idealist” wholivedbytheGolden Rule. “The greatest

exampleofhispracticalidealismcanbeseeninhisfinancialsuccessand whathedidwithhiswealth.Youknowthestory.Youarelivingcharacters onhisstage.Actorswillcomeandgothroughout theyears.Youneednot

packupandleavenowthatheisdead,because hehasmadeprovision in hiswilltocareforyouandtogiveyoutraining forlife.” TheReverend John

H.TrederoftheAllSaintsEpiscopal Churcheulogized atMiltonHershey’s funeralceremony attended bystateofficials, community leadersandfriends

inthebighighschool hebuiltforhisorphans andneartheluxuryHotel Hershey: “Today wearegathered inthisschool roomonaPennsylvania hillside intributetoaman,whobyGod’s gracewasbrought tohisspot, somehow tobuildthiscommunity....When Mr.Hershey begantoreaphis harvestshereheleftnotonlytheforgotten sheafinthefieldforthefatherless;hegavenotonlythefirstfruitstoGod,butvirtuallyallthesheaves; and

thelivesofhundreds ofboyswhohavepassed through thesehalls;theyare thegreatmonument thathasbeenrearedandthatwillgoonabuilding as

otherscomefrombrokenhousesintothecareandguidanceoftheschool.” Theboys’choirsangA.H.Malotte’s “Lord’s Prayer” andBach’s “ComeNow,

Sweet Death,” theyoung malevoices wafting inthehushed auditorium. Onceover, thecasket waswheeled offtheauditorium stagetoa carthat

wouldcarryHershey’s bodytohiscemetery tolienearhiswifeKitty,his parentsFannyandHenry,hislongtime attorneyJohnSnyder, andhisother confidants.

AttheSunset farm,Elwood Scheib hadlearned several daysbefore MiltonHershey's funeral thathe'dbeoneofeightpallbearers. Hedidn’tand stilldoesn’t knowhowtheschool chosehim,buthewasnervous. “Itwas

cleardaybecausewhenwemadetheturnoffRoute743,wecouldseeall thewaytothehighschool.Andwhenwelookedbackwecouldseethecars

leaving theschool parking lotandwewerealready atthecemetery,” said

Scheib, then82yearsold.“Wewereina limousine. Everybody waspretty serious.Therewasnogoofing around.” Atthecemetery, thefarm-hardened boysshouldered thecasketandsolemnly walkedtothegravesite.

3 POST-MILTON “What WeKnow” and“How WeFeel”

|NOCTOBER 1944,anticipating theneedforasuccessor, MiltonHershey )picked PercyAlexander “P.A.” Staples toleadtheorganization, withits

©novelcombination offor-profit businesses andanorphancharity. Hershey diedthefollowing yearattheageof88.Staples, trainedasautilityengineer,

hadsuccessfully reorganized Hershey’s money-losing Cubansugarprop-

ertiesintheearly1920s.Whenhewasdone,the60,000-acre complex of railroadlines,cane-growing fieldsandrefiningfacilities producedthree timesmoresugarthanMiltonHersheyneededfortheChocolate Avenue chocolate factory.HersheyrewardedStaplesbyappointing himtoa successionofTrust-related boards:thechocolate companyin 1927,Hershey

Estates in1929, andtheHershey TrustCompany in1930. Asamember of theHershey TrustCompany board,Staples automatically qualified forthe school’s Board ofManagers. Still,itwasasurprising choice. Manyhadbelieved thatHershey would tapWilliam Murrie, whoatthetimeofHershey’s deathwaspresident ofthe

chocolate company. Hershey hadhiredMurrie,aformertelegraph operator, asasalesman backwhenhestillrantheLancaster Caramel Company inthe late1890s. Murriesold200barrelsofchocolate inhisfirstweek;hewassoon promotedtogeneralmanager. Murriewasa characterwholivedbig.He

owned thebiggest mansion onEastChocolate Avenue. Achauffeured PackardRoadster transported himdailythe150yardsbetween themansion and thechocolate plant;hegottherepunctually towatchemployees streaming

26/ THE CHOCOLATE TRUST

inside.Hespokelikeacharacter outofSinclair Lewis’ classic novelBabbitt:

Money was“dough” andthegovernment “thatoutfit.” Whenoffered the

opinion“theHersheybardoesn'ttastelikeit usedto,”Murriedismissed thecriticism, replying, “Itneverdid.”WhenaCatholic official toldMurrie

heshould showfavoritism andhireCatholics, Murriereportedly blurted,

“Father, I’mrunningabusiness here,notacharity.” Murriehadgrownsales to morethan$100milliona yearbythemid-1940s, though a significant portionofitwaslow-margin bulkproduct.ButMurriewasgettingold,and hisprospects forleadingthecompany werenothelpedwhenhissonBruce

began working withacompetitor, theMarsCandy Company, launching the

popularM&M’s withrationedchocolate duringWorldWarIT(M&M stands forMarsandMurrie).

P.A.Staples hadadifferent personality. Hewasaworkaholic withlittle

tasteforostentation. Having worked foryearsinCuba,henowlivedwith hiswifeinrentedroomsattheHotelHershey. Hewasdevoted toMilton

Hershey, andprintedaheartfelttributetohisformerbossafterHershey’s Industrialist: “Central Hershey, Cubaisasgreata mondeath,inTheSchool ability,hissenseoforderliness, andhisconcernfora umenttohiscreative economy asisHershey, Pennsylvania, whichmostofusknow well-rounded

somuchmoreintimately. There heopened andmadeproperavastundeveloped areabytheconstruction ofa railroad andthecreation ofmany

industries.Thushedeveloped in Cubathesametypeofcontribution to well-ordered livingashehasintheUnitedStates.” ButStaples wasn'ta sentimental businessman man.Ayearafterhetook over,Staples soldtheHershey Cubaoperation forabout$30million, seeking

todiversify theTrust’s assetsandfearing political unrest.Cuban-Atlantic SugarCompany boughtthegiantsugaroperation, andtwoHershey representatives joinedtheCuban-Atlantic board.Themoneywasredirected to theorphanage trust.WhathadbeentheHershey’s sugaroperations were

laternationalized underCastro’s Communist regime. Staples alsoclosed theHershey Estates-owned trolley lines,andfrettedoverpost-World War IIspikesincocoabeanprices. ThenumberofboysattheHershey IndustrialSchoolhadfallento620

in 1945fromtheall-time highof1,018 boysin1939because ofwartime

rationing,whichmadeit hardtofeedsomanychildren,andWorldWar IT-related laborissues.Yetatthesametime,theTrustwasrollingincash— millionsofsurplusdollars—because ofHershey Chocolate’s wartimecontractstosupplytheArmy'srationDbar,theEmergency Accessory Packet,

POST-MILTON / 27

the10-in-1 ration,K-ration andC-ration. By1945, thecompany’s threepro-

duction linesmanufactured around-the-clock atotalof24million ration

unitsaweek.WiththeJapanese andGermansurrender, Staples swungopen thedoorsoftheorphanage inthemid-1940s, attempting torenewtheorganization’s commitment tothedictatesofMiltonandKitty’s1909Deedof Trust.By1950,theHersheyIndustrialSchool’s enrollment hadgrownto matchthelate1930's levels,andfourmoregrouphomeswereopened. In1951, theTrustfiledwiththeOrphans’ CourtforitsfirstDeedmodification. Itwasamodestone:tochangetheschool’s name,fromtheHershey IndustrialSchooltotheMiltonHersheySchool.WhenMiltonandKitty firststartedtheschool,itwasoneofabout50suchindustrialandmanualtrainingschoolsinthecountry:a 1908directorylistedsimilarschools

including theManual Training andIndustrial School inBordentown, New Jersey; theCharles N.Schwab ManualTraining School inHomestead,

Pennsylvania; GirardCollege inPhiladelphia; SouthEndIndustrial School inRoxbury, Massachusetts, andtheStateNormalandIndustrialSchoolin Ellendale, NorthDakota.Butbythe1940sand1950s, thetermindustrial schoolcarriedassociations toa reformschoolfordelinquents, animpressionthattheTrustwantedtoavoid. Aboutthesametime,theTrustalsoendedindenturing—although this wasdonewithoutseekingcourtapproval. Withoutacourtfiling,therewas

nodiscussion astowhytheTrusthadindentured orphanboysthrough the1930s and1940s. Theindenturing language remained intheDeeduntil 1970. Trustlawgoesbackcenturies. It’smeanttoallowsomeone totransfer

wealthto a beneficiary orbeneficiaries. Aprivatetrustbenefitsa specificpersonorcharitable entity.A charitable trustbenefitsa classofsimilar

individuals suchastheblind,ormembers ofareligious order. TheHershey

Trustwasacharitable trustbenefitting fatherless boyorphans.Theindividualswhocomprised theTrust’sinterlocking boards—one fortheHershey TrustCompany andthesecondfortheschool’s BoardofManagers—had

day-to-day decision-making controloftheorganization, alongwiththe responsibility to preservetheHersheys’ financialestateforcurrentand futurebeneficiaries. The1909Deedwasconsidered theroadmapforhowto spendMiltonHershey’s estateassets.

Thegovernment hadoversight andregulatory powers—as itwould other similarcharitable entities—through theattorney general andtheCoun-

ty-level Orphans’ Court.Butthosepowers wereminimally defined, andthe

28/ THE CHOCOLATE TRUST

attorney general orthecourtcouldbeexpected tointerfere onlyincaseof serious disagreements orevidence ofmalfeasance. Generally, Trustleaders

hadtodemonstrate thattheorganization wasfulfilling itscharitable missionofhelping orphanswithoutwasting assetsorself-dealing. Minorissues, suchasthechangeoftheschool’s name,couldbedealtwithadministrative-

lybetween theTrustandOrphans’ Court.IftheTrustbelieved itneeded to radically alterHershey’s 1909 Deedbecause ofaso-called charitable failure, itwouldfileacy-prés petition,whichallowsthecourtstoamendtheterms ofacharitable trustwhilestayingascloseaspossible totheoriginalinten-

tionofthetestator toprevent thetrustfromfailing. Aswewillsee,more

majormodifications wouldbeundertaken, andinsomecasesimposedon theTrustinfutureyears. Goingalongwiththenamechange,Schooladministrators undertook

amakeover oftheschool, including buying black-and-white TVsforthe studenthomesintheearly1950s anddistributing brochures describing lifethereas“country living—family style—amidst thefoothills oftheBlue Ridge Mountains.” Boys wereexpected toremain attheinstitution through childhood, withtheschooltakingresponsibility fortheireducation, health

care,lodging andclothing. Family couldvisitmonthly. Boyshadatwo-

weeksummervacation.Theytrainedforblue-collar jobs,butwithgood gradesandacademic aptitude,couldqualifyforscholarships togotothe Hershey JuniorCollege. The90-page Guide forHouseParents, published inthelate1940s orearly 1950s, contained acampusmapandorganizational chart.Itexplained terms ofemployment forhouseparents, theboys’livesattheschool,andtheinsti-

tution’s philosophy. “Realizing daybydaythesubstitution ofsynthetic love forgenuine parental loveisadifficult task,weareediting thisbooklet with thehopethatyouwillstudysamecarefully andbeguided byitscontents,” theguidebegan.“Wehaveadvanced farenoughinthefieldofexperience to knowthatourfarm-home lifeisasuccess andfulfills Mr.M.S.Hershey’s idea

which wastoreplace theold-fashioned cooperative family ofbygone days.”

Housefathers couldbecalledforhelpduringharvestseason.Housemotherscannedfruitsandvegetables fortheorphanage’s consumption. But theirmostimportantresponsibilities wereteachingorphanboyshonesty,

integrity, fairplayandsocialskills.Theguideinstructed boysonhowto remove floorwax,whattowear,andhowmanyminutes itshould taketo walkhereorthere.Evendinnerhadrigidorder.According totheguide’s sectiononMinimum Standard TableEtiquette:

POST-MILTON / 29

Allboysshould beseated atthetableatthesametime. Boys should leave thediningroominindividual tablegroups. Dishesshouldbestartedattheheadofthetableandpassedtothe right.

Slices ofbreadshould bebroken priortospreading andeating.

Wheneatingsoup,thespoonshouldbedippedawayfromtheeater. Theknifeshouldbeplacedacrosstheplateafteruse.

Napkins aretobeusedateachmealandboysshouldplacethem acrosstheirlaps. Elbows shouldbekeptoffthetable. Mealsshouldnotbeeateninahurry. Congenialconversation shouldbe carriedon at eachmeal,but

boisterousness should beavoided. Knife, forkandspoonshould beplaced inparallel inthecenterof theplatewhenfinishedeating. Everyone shouldbegineatingdessertatthesametime. Eatingandchewing foodsshouldbedoneinaquietmanner. Pitchers shouldbepassedwiththehandletowardthereceiver. Itisalways improper todunkbread,cookies, etc.inliquids. Thefork,neverthespoon,shouldbeusedineatingallfoodsfrom theplate,exceptintheJuniorDivision. Themakings ofsandwiches atthetableshouldbeconsidered proper

onlywhenusingcoldsliced meatsorcheese. Leave thetableduringthemealonlywhenabsolutely necessary, and atsuchtimesasktobeexcused. Onthedayofhisfather’s accident in1948, TerryWright remembers, his

fatherhadcalledhimintothesmalllivingroomoftheirhomeintheOhio RivertownofBadenwitha surprisegift:a Hershey chocolate bar.“Strange,” Terry“Toe”Wrightsaystoday.Thatnight,therailcarbrakeman slippedat theCrucible Steelplant,andrailcarsrolledoverhim.Therewasnothingleft

ofhimbythetimetheystopped thetrain. Terryandhisbrothers LeonandLarry hadnoplacetogoafterCrucible. “Wewereliketrailerparktrash.Nobody couldtakealadyandthreekids. Myauntswould keepmeforaweekortwoandthenIwould gotoafoster home.Iwasshoveled around. Mybrothers livedlikevagrants. Mymom’s daddidn’t wantanything todowithher.Hesaid,“You madeyourbed.” WrightgottotheHersheyIndustrialSchoolonSeptember 7,1949.He

30/ THE CHOCOLATE TRUST

wasfouryearsold.Theygavehimhisclothesinalaundrybasketinthe“Old Main”andassigned himandLarry,whowasfiveyearsolder,totheEvergreenstudenthome.“Idon’tremember beinghomesick becausesomany thingsweregoingonanditwassonew,” Wrightsays.“Ibecameinstitution-

alizedprettyquickly, basically.”

Hesleptin thesamebedeverynight,andatethreemealsa day.He learnedwhatwasexpected ofhimandhedidit.Hehadwhatheneeded, buttherewaslittlepersonalattentioninahomewith30boys.“Once a year youwouldgetacakeforyourbirthday. Theywouldsenditwiththemeal,”

Wright says.“Thehousemother would sliceitup,andyouwould getaslice.

Youwouldlikemorebutyouwerejustdamnhappyto getthatcake.”A Santavisitedthestudenthomeswiththeyoungerboys.Theypulledatthe pillowinhisbellyorkickedhimintheshins.

TheboysatHershey calledhim“Toe” because hewasfromwestern Pennsylvania. Hisfavorite teamwastheCleveland Browns, andtheyhada kicker whokicked straight-on. Themedia called himLou“TheToe” Groza. Theschoolwaschanging inthe1950s, Wrightrecalled. ItwastheHersheyIndustrialSchoolwhenheenrolled, andtheHershey Schoolwhenhe

graduated. Hedidn’t knowhismother hadsigned anindenture: “Theschool

didn'ttalkaboutindenturing. I neverheardhouseparents, teachers, other students, anybody, eventalkaboutindenturing.” Thensomeone senthimhis indentureinthelate1990stoshowhimwhatitsaid.“Isaid,holyshit.”He thinkshemighthavebeenoneofthelastwhiteboysindentured inAmerica.SomeboysTerry'solderbrotherknewthoughtthefarmworkwasn’t

onlyaboutcharity, butaboutcheap laborforthefarms. Wright wouldn't go there:“OneofOldManHershey’s thingswas,hewanted toteachhisboys respect forlabor. There wasnothing wrong withdignity ofmanual labor.”

Inthemid-1950s, theHershey School openedan“intermediate division” forsixth,seventhandeighthgraders.Thoseboysdidn’thavetoboardwith

teenagers whomightbullythem.Laterinthe1950s, theschool lightened thefarmworkloadfortheboys.Boysweregetting hurtaroundthefarm

machinery, andchild-labor lawswereevolving. Aboyhadtolearnhowtosurvive andwhattoexpectatHershey, Wright says.Youdidn'tratanybody out.Youstoodyourground.Youdidwhatyou weretold.Houseparents didn’thugyou.Housefathers mighthityouwith

beltsorpingpongpaddles. Some ofthehouseparents werenice,andsome weresonsofbitches. “IfOldManHershey hadunderstood itbetter,” Wright

says,“hewouldhaveprovided moresocialworkers ormorepsychologists.”

POST-MILTON / 31

Wrightbounced aroundtheHershey campus. Helived,inaddition

toEvergreen, attheHabana,Meadowbrook, Cloverdale, Sunnybank and Sunsethomes.Wrightthoughtheshouldhavemoresayinhislifeandhe rebelled whenhegottiredofthebullshit.Theschoolfinallyplacedhimina

homeheliked.Early on,thehousefather theretoldWright tocallhimBerk; Wright toldthehousefather tocallhimToe.Theygotalonggreat.“Wehad guyswhohatedtheschool,” Wrightsays,“butwhentheyranaway, theyhad noplacetogo.I meanifyoumadeithome,theywouldsaytoyou,“What the

hellareyoudoinghere?’ andsendyouback.Thenyouhadyourhouseparentsmadatyou,andtheadministrators madatyou.” Whenhismother Ethelremarried, sheasked Terry tocomehome. Leon

wasgraduating. LarryhatedHershey, andhedidreturnhome.Wright stayedin Hershey. “ItoldherI don’tknowanyotherlifestyle. I haddone

seven yearsandIhadseven moretogo.I didnotrelate totheoutside world.” Hegraduated in1963. He'dbeenthere14years.Hismother toldhim

thatCrucible Steelhadpromised heritwouldhirehersonsbecause oftheir father’s accident. ButwhenWrightapplied, aCrucible manager inasuitand tietoldhimhehadtoservethemilitaryfirst.Wrightenlistedin64anddid

histourinNam;hewasdischarged in’68.TheGIbillpaidforhimtoattend theUniversity ofNorthCarolina. Heretired afterseveral decades fromthe SouthCarolinaDepartment ofCorrections.

ASWRIGHT wasgrowinguponHershey’s ruralcampus,theold-timers of theHershey organization inevitably agedandretiredonebyoneinthelate

1940s and1950s.

D.PaulWitmerhadbeenhiredasadraftsman in1924.Hedesigned and helpedconstructagas-filling stationandauto-repair shopwith75garages

andtwoapartments onWestChocolate Avenue. Milton Hershey appointedhimin1925 toruntheHershey Lumber Company thatmanufactured

boxestoshipchocolate products, whichinoneyearsawedabout13million feetofpoplarandgum.Thelumbercompany laterdiversified intofamily

furniture—drum tables, endtablesandthelike—sold through NewYork, Cleveland, Pittsburgh andWashington department stores. Witmer's big-

gestassignments cameinthe1930s, headingconstruction projectsworth millionsofdollars.“Whenhewantedsomething, andmanylittlethings, I'ddropeverything andtakecareofMr.Hershey,” Witmersaidinanoral historyfortheHershey Community Archives. “Assoonashewasthrough,

Id gobackagainandgetonwithmyjob....He sortleaned onme.”

32/ THE CHOCOLATE TRUST

Hershey wasliving intheWitmer-built HotelHershey onthehilloverlooking histownwhenGeorge Copenhaver diedin1938. Someone nowhad toruntheorphanage andschool.Hershey calledthetrustylumbercompanymangerforatalkinthehotel’smezzanine. HeaskedWitmertostepin andtakeovertheschool. Witmerrecalled thewinterdayascoldandsunny. Hedidn’twantto—hewasn’t trainedorprepared torunaninstitution edu-

cating andraising orphan boys.Hershey insisted, andafterseveral months

Witmeragreed.Formorethana decade,heranthelumbercompany and theorphanschool.Witmerrelinquished theschoolpositionin 1951,and retiredfromallhispositions intheHershey organization in 1959. EarleMarkleyhadtrainedasa machinistin theWilliamson Trade School nearPhiladelphia, andtaughtvocational education inHanover. Boys

therealternated training fortwoweeks withstudying fortwoweeks. During thesummer of1929, Copenhaver hadcalledMarkley forajobinterview.

TheymetintheHershey InnlobbyandwalkedoutsidetotalkwithMilton Hershey inhischauffeured 12-cylinder Cadillac withCubanlicenseplates. Thenumberofstudentswasgrowingat theHersheyIndustrialSchool,

andHershey believed heneeded tooffertheorphanboysmorerigorous jobtraining. Hershey askedMarkley ifheknewofahighly regarded trade school.Markley toldHershey ofoneinMerchantville inSouthJersey. Hersheytoldhimthey'dgoandvisititthatday,andtheyhauledoutofHershey

intheCadillac. “We justwentin,”Markley saidoftheMerchantville school visit.“Wedidn'thaveadate.Why, thosepeople treated Mr.Hershey likehe wasking,youknow. They wereveryproudtohavehim.”

Theentouragereturnedto theHersheyInnin theevening.Hershey asked,“Now, Mr.Markley, doyouthinkyoucouldgetmea tradeschool?” Markleyreplied,“Mr.Hershey, ifyougivemea chance,I'lleitherdoitor

hangmyself.”

Markley purchased $45,000 worthofvocational equipment foratrade schoolprogramfortheDerryTownship publicschools. Whenit opened, therewereabouteightypublicschoolboysandtentofifteenorphanboys

whoenrolled init.Markley thenexecuted a granderplanforthetrade school program atSenior Hallfortheorphan boysattheHershey IndustrialSchool, basedontheoneinMerchantville. Hershey “haditinhismind to teachtheboysto work,”Markleyrecalled.Thetradeschoolprogram taughttheorphanboysonething:“Howtoworkandthevalueofworking andknowingwhatproduction means,andI thinkweweredoing a pretty goodjob.”MarkleyranthetradeschoolprogramatSeniorHallthrough

POST-MILTON / 33

the1930s and1940s, eventraining women forfactory engine workduring World WarII.Heretiredin1958.

Hershey didn’tspeakwithMarkley ofhisaspirations fortheboys,but wouldcallhimtothemansion forlunchtotalkaboutthetradeschoolprogram.“Hehada certaincigarthathesmoked, andheneversmoked a different

one,” Markley said.“Healways passed thoseout.Inthosedays, Iwassmoking. Ithoroughly enjoyed hiscigars. AndMr.Copenhaver, hesmoked cigars.” HersheyIndustrialSchoolprincipalW.AllenHammond published a memoir, AManandHisBoys, inwhichhedescribed aconversation between ClydeA.Lynch, president ofLebanon ValleyCollege, andMiltonHershey

during which Hershey disclosed toLynch whyheestablished theorphanage andtradeschool: “(1)hewanted thesatisfaction ofseeing howhismoney

coulddogoodwhilehewaslivingand(2)hehopedthatothermenof wealth,seeinghisproject,mightfollowhisexample.” HammondtoldoftheHersheyIndustrialSchool’s ethosandpolicies

withchapters titled“Education forCharacter,” “Spirit,” “What WeKnow,” “How WeFeel”and“WhatWeWill.”Farmwork,household choresand sportsforgedthemalecharacter. Home,heredityandspiritwere“threefacetsofthesamegemofhumanpersonality. Theyaresoinextricably tiedup

together andsofusedintoeachothertomakeupanintegrated person.” Theschoolfrowned onshirkers andthosewithinflated egos.Thevocationalprogramovertimehadearned a nationalreputation, andcompanies recruitedboysoutoftheclassroom, Hammond wrote.“Thefactisthata lazyboyismostunhappyatourschool,” saidHammond. Heretiredin1959.

STAPLES WAS OBSESSED withrunningHershey’s businesses andorphan

charityinthelate1940sand1950s. Hehadn’tfiteasilyintotheinsularand clubbycultureofHershey, andinsistedthatHershey Chocolate minimize low-margin commercial andbulkchocolate salesandconcentrate onhigh-

retailsaleswithcandybars.Hetookworkhomewithhim,and er-margin Onweekends, heworked attheHerworked inbedintheHotelHershey. offices. Rumors swirled thatStaples wasthinking of sheyTrustCompany company todiversify theHershey Industrial School’s selling thechocolate assets.Hehadappointed thefirstoutsidertothechocolate company board, NewYorklawyerWilliamRadebaugh. ButStaplesdiedunexpectedly in

1956, resulting inabroadreorganization oftheHershey entities.

TheTrustpublicly committed itselftoMiltonandKitty’s orphan-caring mission, butprivately itsbusinessmen leadersrealized theinstitution hadto

34/ THE CHOCOLATE TRUST

bemodernized. How?Whowoulddecide? Andwhatshouldthesuper-rich

orphanage dowiththetensofmillions ofdollars thatithadbanked fromthe

saleoftheCubansugaroperation andoperating surpluses? TheTrustappointed a three-person expertpanelforideas.Leading the panelwasLeonardW.Mayo,whospecialized overdecadesin thecareof

delinquents, orphans andcrippled children. Hisfatherhadbeenthedirec-

toroftheBerkshire IndustrialFarmin Canaan,NewYork,andMayo’s first joboutofColbyCollege wasattheOpportunity Farmin thebackwoods of Maine,whichopenedaroundthesametimeandwasstrikingly similarto theHershey School. Opportunity FarmfounderF.ForrestPeasetoldthepublicofhisproject intheOctober1911editionofWorkwithBoys, published bytheFederated Boys’ Clubin Massachusetts. Hewrote:“Ihavemovedonto a 10-acre farm

inthetownofNewGloucester, Maine. I callit ‘Opportunity Farm.I proposetotrainboystobe‘ANo.I farmhelpandsupply toa slightextent the

greatdemandforintelligent farmhelp.Carpentry work,blacksmithing, and gasengineering willbecomestrongdepartments inthisboys’tradeschool. Iwillomitotherdetailsofmyvisionandgetdowntofacts.”Thefarm,with

itssixfireplaces, hadroomfor50boys.Every boyhadtocomewithclothes andreturnfarehome. WillardWallace, aWesleyan University historyprofessor, described it inamemoir.“Opportunity Farmwasatightlyorganized institutionand, to a largeextent,self-sustaining,” hewrote.“Thelargerandmiddle-sized

boyscarried onthebarnandfieldwork.Inthewintertheyalsofelled trees forwoodandsawed it intofurnace andstovelengths, andkepttheout-

sideareaofbothfarmsorderlyandclean—Mr. Mayowouldnottoleratea lackoftidiness.Thesmallerboys,underthedirectionofMrs.Mayo,were responsible forthehousework. Althougheveryboymadehisownbed,

thesmaller boyswashed anddriedthedishes,and,insummer, helped

withtheweedingandthegardens,pickingthepeas,beansandberries, andhuskingcorn.” Leonard MayothenheldjobsattheMaryland Training SchoolforBoys

outside Baltimore andtheChildren’s Village inDobb’s Ferry. Overtime,he helped shapeU.S.policies onchildwelfare, mental retardation andphysical disabilities. Heserved onfourWhiteHouse Conferences onChildren and

Youthfrom1930to 1960,andadvisedtheTruman,Eisenhower, Kennedy, Johnson andFordadministrations. Heattained suchrecognition forhisexpertisethattheNewYork Times published hisobituary athisdeathin1992.

POST-MILTON / 35

Frederick Allenwasthedirector oftheChildGuidance Clinic inPhila-

delphia, andchairedtheboardthatcertified childpsychiatrists intheUnitedStates.ATrustofficialcalledhim“thefatherofguidancecenters.” He wasthesecondpersonappointed tothecommittee toevaluate theHershey

School’s programs. ThethirdwasHelen Hubbell, Pennsylvania's “Miss ChildWelfare Social

Worker.” Thethreeindividuals metwithHershey School officials andspokewith

students, teachers andadministrators. Their105-page Report oftheAnniversary Committee inAugust 1960 concluded thattherewasstilla placein societyfortheHershey School, ifithiredmorestaff,professionalized childcaredelivery, andreconsidered admissions ofveryyoungboys. MiltonandKittyHersheyhadrestrictedenrollment totheorphanage

in1910 towhiteboysbetween theagesoffourandeightyearsold.Fifty yearslater,thepanelthought theinstitution should refocus admissions on boysbetween theagesof10and14yearsold.Atthispoint,ahugebodyof

researchhadshownthatseparating a youngchildfromhismotherwould bepainfulandperhapscounterproductive, emotionally andpsychological-

ly,fortheparentandchild.Plus,stateandfederal welfare programs could keepthoseyoungfamilies together atleastforafewyears.“ItistheCom-

mittee’s beliefthatalmostanymotherwouldandshouldhesitatetosenda four-toeight-year-old intoaboardingschoolsituation. Thetwofold trauma oflossofaparentandseparation fromhomecanbeanespecially damaging

experience foryounger boys,” theywrote.TheTrustdidn’tembrace this recommendation thenorlaterdespite itscontinued difficulty finding moth-

ersorfatherswhowouldagreetopartwiththeirveryyoungchildrenand continued researchindicating thatseparating a youngchildfromaparent couldbedamaging tothechild.

Mayo, AllenandHubbell thought theHershey School couldoffersub-

sidiestotheparentsofyoungboys.ThoseboyscouldrelocatetotheHersheycampuswhentheygotolder.Theexpertsalsothoughttheorphanage shouldbemoreflexible andallowfamilytovisitinthefirstmonthtoease homesickness.

Thereporthadasection titled“TheSerious Overcrowding.” TheHersheySchool’s lodging wasbasedon“cottage-style” homes withthirtyboys.

Thatwastoomanyboystoa home.Theinstitutionshouldhalvetheratio. Thiswassoimportant,thepanelbelieved, thattheinstitutionshouldhalt newadmissions untilnewhomescouldbeopenedandstaffed.Maximum

36/ THE CHOCOLATE TRUST

enrollment attheHersheycampusshouldbe1,500boys,withperhapsan

ideallevelat1,200.

Mayo,AllenandHubbellbelievedthe institutionhadto hiremore counselors andprofessionals andreviewsalaryschedules to ensure“the employment ofhigh-grade staff.”Theschoolhadrelievedhousefathers of farmwork,butalsocuttheirpay.Thepanelindicatedthatthissentthe wrongmessage tohouseparents, whoalsonowhadlongperiods,11days, withouta weekend break.Itwastoolong.Theyunanimously toldthepanel

theyhadtocarefortoomanyboys. Despite grousing bystudents aboutthefarmwork,Mayo, Allenand

Hubbellpanelfoundthatalumniuniversally praisedthefarmworkthat hadbeenrequiredofthemasteensattheHersheySchool, sayingmilking cowsandtheotherchoreshadgiventhem asense ofself-worth. Mayo,Allen

andHubbell alsobelieved theHershey School wasremarkably patientin dealing withboyswithsexual andotherdeviant behaviors. “The Committee

isimpressed withthedesiretohelptheseboysratherthandischarge them. Thisattitude,whilenotuniversal, strikesusasoneofthefinefeatures ofthe

Milton Hershey School. Theabsence ofpunitive attitudes toward ‘deviant’ boyslayssuch a finefoundation forhelping him.Ascounseling services in thevariousformsaremademoreavailable, moreofthesetroubledboyswill behelpedtoovercome theirdifficulties.” Mayo,AllenandHubbell thoughttheHershey School couldbeanation-

alinstitution forresearch intoeducating theeconomic underclass andboys withlearning disabilities. Itshould hirearesearch director andaffiliate with

a majoruniversityin Philadelphia to directresearchprojects.“Somany oftheseboyscometotheMiltonHersheySchoolwithmanyeducational deficits,” thereportnoted.“Ourpublicschoolsarebeingoverwhelmed by

theso-called slowlearner. Manysuch,evenwithnormalintelligence, are admitted hereandtheseproblems aredetected intheorientation group. The

opportunity forplannedresearch onboththeetiology andthecorrection of thesedeficits isavailable here.” TheTrustembraced someoftheideas,andrejectedothers.Theinsti-

tutionconstructed manynewstudenthomesin the1960stoeasethe

overcrowding. Butit didn’traisetheminimumageofboyswhocouldbe admitted,andit didn’taffiliate withanindependent researcher oruniversity,eventhoughtheHershey School’s orphanage modeldeviated substan-

tiallyfromevolving mainstream child-care trendstoward childadoptions andfamily-based foster care.

POST-MILTON / 37

ONTVitlookedlikepovertyhadbeenlickedinAmerica inthe1950s, anera oftraditional families, conformity, thebabyboom,nukes,theColdWarand

Ike’s toothysmile. William J.Levittperfected theconcept oftheplanned

suburbandevelopment. Tensofthousands visitedhissamplehomes,which werelatermass-produced andsoldwith30-year mortgages. AuthorMichaelHarringtonpresenteda differentviewofthenation

withhisbest-seller, TheOtherAmerica: Poverty intheUnited States. “Mr. Harrington estimates thatbetween 40and50million Americans, orabout one-fourth ofthepopulation, arenowlivinginpoverty,” wroteDwight

McDonald in a 14-page reviewofthebookin theNewYorker. “Notjust belowthelevelofcomfortable living,butrealpoverty, intheoldfashioned senseoftheword—that theyarehardputtogetthemerenecessities, begin-

ningwithenough toeat.”

Manyofthenation’s poorwerenowblacksin theSouthandAppalachianwhites.Andtheseedsoffuturepovertywerebeingsown.Blacks were migrating totheNorthforhigh-paying manufacturing jobs.Butnorthern

factories hiringthemwereclosing, andproduction relocating tolow-wage statesintheSouththatwereemptying ofblacks. Asthefactories closed, northerncitiesbecamehollowed-out racialtinderboxes abouttoburstinto flamewithraceriots. HowwouldtheTrust—the nation’s richestorphanage—respond tothese socialchanges tohelpvulnerable childrenwithitsvastwealth?

4 LOOTING THE TRUST APolitical Deal toDivert Tens ofMillions fromOrphans “Icouldseetheorphanpopulation dwindling somewhat, onthedowngrade, andI begantowonderwhatMr.Hershey woulddoifhehimself wereliving.” —HERSHEY CHOCOLATE PRESIDENT SAM HINKLE

Y1962, theMiltonHershey’s trustfundsurplus hadswelled to$96 million—the equivalent of$740 million today. Thebulkofthismassive

surplus,$72million,camefromdividends orprofitsfromtheHershey companies, withanadditional $24millionearnedbyinvesting the$72millionintostocksandbonds.

Howdidthishappen? TheTrusthadbeenbuilding surpluses sincethe 1920s, asthecompany’s profits piledupfasterthantheSchool couldspend

them.ThencamethelucrativemilitarycontractsduringWorldWarII. HersheymadetheArmy’s rationDbar,theEmergency Accessory Packet, 10-in-1 ration,K-ration andC-ration. Thecompany’s threeproduction lines

manufactured around-the-clock 24millionrationunitsaweekby1945. Profits gushed. Inthe1950s and1960s, strategies including diversification andfocusing ontheconsumer marketledtocontinued healthyprofitsand corresponding growthinthesurplus.

Theunusual charitable dilemma offiguring outwhattodowithsucha hugesurplus haditsrootsinMilton andKitty’s 1909Deed.TheDeedhad created a permanent endowment or“corpus” consisting ofownership of Hershey Chocolate andHershey Estates, including the10,000 acresofdairy

farms, Likeamodern-day college endowment, corpus assets generated dividendsthatflowed intoasecond “income account” intended topayforcosts ofrunning theorphanage: textbooks, clothing, teacher salaries, adminis-

tratorsalaries, studenthomesandthelike.Undernocircumstances wasthe

LOOTING THE TRUST / 39

corpus tobeliquidated topaytheorphanage’s bills.TheHershey School was tooperate withinthebudget oftheincome account thatheldthedividends

ofthechocolate company andMiltonHershey’s othercompanies. Butwhat ifthechocolate company andothercorpusassetsproduced surplusprofits fortheincomeaccount,morethanwasneededtopayfortheorphanage’s

dailybills? Milton andKitty’s Deedhadananswer: Admitmoreorphans. Yetduring thebooming World WarIIyears, theHershey School actuallycutthenumber oforphans almost inhalfasthenationmobilized tofight theNazisandtheJapanese. Thankstoa combination ofloweroperating costsandhighercorporate profits,theorphans’ fundsurpluses swelled by $10million.Afterthewar,theHershey School addedstudents, butcouldn’t growtheschoolata paceanywhere nearwhatcouldhavesoakedupthe

surpluses, whichcontinued tomountintheconsumer-driven economy of the1950s.

Thispatternofmountingsurpluses, withmoremoneyflowing intothe incomeaccountthantheHershey TrustCompany expended ontheorphan-

ageandschool, became thenorm.In1953, theTrustspent$2.8million on

orphansandparked$2.9millionintheincomeaccountassurplus.In1956, theTrustdishedout$2.9millionfororphanage bills,andstillsavedfour milliondollarsintheincomeaccount. Thegapwidenedin 1959, with$3.4 millionspenttooperatetheHershey School, and$5.1millionplacedinthe incomeaccountassurplus.

Asof1962, thesurplus thatMilton andKittyHershey’s orphans’ fund hadaccumulated before investment returns, $72million, wasnowgreater thanthe$62million theTrusthadspenttoeducate, lodge andfeedorphans duringitsentirehalf-century ofexistence. ThetotalvalueofHershey’s

orphans’ fundtopped$395million,orthreebilliondollarsin2014dollars, in 1962,andthesurplusaccounted foralmostone-quarter ofit. The1909Deedsaidtheincomeaccountsurpluswastobe“exclusively devoted” totheHersheySchool.TheDeedhadspelledoutotherrequire-

ments,mostofwhichwerestillbeingfollowed in 1962.Theadmission requirements limited admission tofatherless whiteboys.Theschool’s locationwasspecified asDerryTownship, withadmissions basedona geographic hierarchy: orphanboysinDauphin, Cumberland andLancaster Counties gotfirstpreference, nextcameboysfromtherestofPennsylvania, andthenboysfromthroughout theUnited States. Orphans weren'tthenationalcrisisinthe1950s thattheyhadbeenwhen MiltonandKittyfiledtheirDeed.Poverty alsohadfadedfrompublicview

40 / THE CHOCOLATE TRUST

in aneraofpost-World WarII confidence, optimismandprosperity. Yet child-care specialists whotrackedthestatistics andeconomic desperation

ofyoungAmericans stillsawmillions oforphans andneedychildren that

theHershey School couldhelp.ThefederalChildren’s Bureauestimated that in1961, threemillionchildrenhadlostamotherorfather,including 55,000 childrenwhowerefullorphanswithouta motheror father.Children’s

Bureau research director Helen Witmer notedcritical demographic chang-

es.Yes,therewerefewerorphansthaninAmerica’s pre-Depression society. Butanadditionalthreemillionchildrenwerenowbornoutofwedlock, andfourmillionchildrenlivedwithonlyamotheroronlyafatherbecause ofdivorce,desertionorseparation. Takentogether,theorphanchildren, childrenbornoutwedlock andchildrenraisedinone-parent households becauseofabandonment ordivorceamounted to 10millionchildren—15

percent ofthenation’s childpopulation. Atthetimeonlyabout300,000 got government assistance. Aswe'veseen,inthelate1940sand1950stheHershey Schooldidtake stepstoincrease theschool’s capacity. Thecampuswasmodernized, andthe

institution marketed itselfwithbrochures andafree film,ALiving Heritage

forBoys. Trustofficials publicized theorphanage’s storythousands oftimes onthousands ofvisits.Theygathered thenamesof9,000potentially eligible boysontripstowelfare offices, serviceclubsandcommunity leaders.But, evenwithaschoolpopulation ofrisingto1,080boysin1960from620boys in 1945,theTrustwasnotoperating atcapacity. Butthiswasfarlowerthan theTrust’s ownenrollment goalof1,500, setinitsspecialreportfrom1960. Andthesurpluses intheTrustkeptgrowing.

Trustofficials nowspokeprivately ofacharitable failure ofMilton and Kitty's1909Deed,withitsnever-ending flowofchocolate profits intothe

orphans’ fund.Optionstomodifytheoriginaldeedbegantobequietlyconsidered. Thiswouldmeandeploying theoldlegaldoctrineofcy-prés, which

hasthemeaning of“asnearaspossible” or“asnearasmaybe.”Acharity seeking tochange itsmission inordertostayviable would needtopropose a newmission“asnearaspossible” totheintentoftheoriginalone. IftheTrusttrulycouldn'tfindenoughorphanboystohelp,therewere someeasyfixesitcouldproposethatwouldimmediately widentheadmissionspool.Itcouldbroadenthedefinition oforphaninMiltonandKitty’s

Deedtoboysorgirlsofsinglemothers orsingle fathers, agrowing populationinthe1950s and’60s. TheTrustalsocouldopenitsdoorstoinclude blackorphanboys,ortoblackgirls.

LOOTING THE TRUST / 41

Another cy-prés option, somebelieved, would havebeentomodernize

thetuition-free Hershey JuniorCollege, orconvertittoalow-cost, four-year university. Thiswouldn't be“asnearaspossible” toMiltonandKitty’s charitablemission ofhelping orphans, butitwouldbea service tochildren ofpoor

families. Andthejuniorcollege waspopular withlocalresidents. Anupgradedjuniorcollege, moreover, couldbenefit orphan graduates oftheHershey School whocouldliveneartheschool where they’d spenttheirchildhoods

astheyattended theorphan-friendly post-secondary educational institution. AndtheJuniorCollege hadadirectconnection toMiltonHershey, who hadfoundedandfundeditinthelate1930s. Hershey’s friendandpersonal physician HermanHostetter provided evidence ofHershey’s personalcommitmenttotheJuniorCollege. Inhisself-published 1971book,TheBody,

MindandSoulofMilton Snavely Hershey, Hostetter quoted Hershey telling anofficial withthestateuniversities, “In20or25yearsthedemand for trained mechanics willbesogreatthattheschools willnotbeabletosupply thedemand.SoI amgoingtobuildaTechnical-Vocational Schoolthatwill

surpass anyotherinstitution ofitskindintheworld. I amgoingtobuild anewJunior College andwhenthetimecomes, wewillchange theJunior

College intoa four-year collegeandthereshouldbeplentyofmoneyhere todoit.Iwilltakethegroundbetween CocoaAvenue, Governor Roadand Homestead Roadandmakeacampusfortheseschools.”

ButtheTrustdidn’t takeanyoftheseactions. Instead, thepresident of Hershey Chocolate pushed hisownideaofwhatshould bedonewiththe

surpluses. Hisideadidn’tinvolve impoverished childrenatall,butanother projectthatwould,ifimplemented, offera hugeboosttotheregion’s economicdevelopment. SAMHINKLE tookoveras Hershey’s Presidentin 1956,buthe hadbeen involved withthecompany since1924. AsDirector ofResearch, hehadbeen responsible fortheintroduction ofsuchiconicproductsasHershey’s ChocolateSyrup,KrackelandMr.Goodbar.Helaterremembered howMilton

Hershey inadvertently contributed tonaming Mr.Goodbar: “‘Someone said, ‘That's agoodbar.’ And[Mr.Hershey’s] hearing being alittlebad,hethought

theysaidMr.Goodbar. SohenameditMr.Goodbar.” Aconfident leader, HinklealsopavedthewayforHershey’s diversification intootherfoodsand services. | Hinkleexplainedhisapproachto theTrust’scharitabledilemma,in grainyblack-and-white footageavailable onYouTube. Hinkletoldothers

42/ THE CHOCOLATE TRUST

seatedata tableabouttheTrust’sdilemma:“Icouldseeourfundin the Hershey Schoolaccumulating. I couldforeseeifbusiness keptontheupper trendsasit hasforyears,thefactthatwewouldhavethefundsthatwe wouldn'tneedtotakecareoforphans.I couldseetheorphanpopulation dwindling somewhat, onthedowngrade, andI begantowonderwhatMr.

Hershey woulddoifhehimself wereliving...with theaccumulation of money thathedidn’t needforhisorphans. Whatwould hedo?”

Hinkleprivatelyexpressedhis reservations towardexpandingthe Trust’s child-care mission. “Ifweweretoaskthecourt’s permission fortrust modification...to...admit boysfrombrokenhomesforexample,’ hewrote inaprivateletter,“itseemsthatweimmediately wouldbeinvitingcriticism ofourmethods...and in notimeourworstfearsof“Thelineformingon theright’wouldberealities.” ThetownofHershey, inotherwords,would

behosting andeducating manymorepoorboys—exactly whattheDeed

saysshouldbedoneifthefundswereavailable, butthatHinklewasnow lobbying against. Toavoidhisdoomsday scenario, Hinklespeculated thatMiltonHershey wouldagreethattheorphans’ fundsurpluses shouldbedevoted tonewpurposesthatwouldleadto“newandbetterremedies forthereliefofhuman suffering—probably traceable totheuntimely deathofhiswife,although he seldommentioned heryearsofdegenerating illnessforwhichhecouldfind no cure.”[Italicsadded.|

HinklewrotealettertoTrustboardchairmanJohnB.Sollenberger. In theletter,datedMay25,1959, heproposed diverting thesurpluses intothe construction andoperationofa newmedicalcentertotreatsickpatients andtraindoctors.Hinkleaddedanappendix totheletteroffering hisideas

onhowtomodernize theHershey School. Sollenberger hadheaded theTrustboardsincethesudden deathofP.A. Staples in1956.Sollenberger rosethroughtheranksofHershey Estates, the corporateentitythatheldownership ofthenon-chocolate Hersheycom-

panies, heading itfrom1949 to1962. Overtheyearshehadbooked bands atMilton Hershey’s entertainment venues, managed Hershey Parkamusements,organized a nationalgolftournament attheHershey CountryClub, andbroughtminorleaguehockeytoHershey. “[Milton Hershey] triedto

investmoney intothetownasadestination, andinawaythatthewhole community wouldbenefitandenjoy,” Sollenberger said.“Iheardhimsay

manytimesheneverwentnutsonanyonething,butliked a littlemusic andalittle sport.”

LOOTING THE TRUST / 43

WHEN JOHN SOLLENBERGER RETIRED in 1962, hehadnotacknowledged the

receiptofHinkle’s letter,withitsboldproposalto builda medicalcenter. SamHinklerevivedthemedicalcenterideawiththenewTrustchairman,ArthurWhiteman, a Schoolalumnuswhohadenrolledin 1916. His fatherhaddiedin a coalmine,andhismothersewedin a Harrisburg shirt

factory. Horrified onedayto findfour-year-old Arthurandhissix-yearoldsisterplaying intheSusquehanna River, shesenthimtotheHershey

Industrial School. Whiteman thoughthemightbea painter.Buthealsowas a whizwithnumbersandwashiredto workfortheHersheyorganization

ina banking capacity. Whiteman responded positively toHinkle’s ideaof amedical center.

Thoughthe forcefulHinklespeculatedthatMiltonHersheymight approvetheTrust’sprovidingthemoneyto builda newmedicalcenter, someone whoknewHershey wellovermanyyearsrecalled otherwise. Her-

manHostetter, Milton Hershey’s friend andphysician, recounted yearslater howHershey hadrejected proposals foramedical school whenhewasliving.

“Atleastontwooccasions [Milton Hershey] toldmehewasapproached about buildinga Medical CenterinHershey. [Hershey] said,‘ThisI wouldnotdo

because it isnotaplacefora Medical Center,” Hostetter wrote.“Theonly

timeheevergaveanythoughtorconsideration tobuilding anyotherhospital thanthecommunity hospital waswhenDr.Chambers fromtheHospital for Crippled ChildrenatElizabethtown approached himaboutbuildinga hospitalforcrippled childreninconnection withtheMiltonHershey School.” InitialopinionsfromtheTrust’sNewYorklawfirmwerenotencouragingtowardthemedicalcenterideaeither,indicating thatthediversion of

assets hadnoprecedent. Trustfundsbylawweretobeconservatively managedandadministered—they didn’t veerintonew,unintended directions.

Hinklethenturnedtothechocolate company’s politically connected labor lawyer, GilbertNurick,totaketheproject. Nurickhadpublished a 16-page bookonPennsylvania courtprocedures andhadrepresented AllstateConstruction Company beforetheSupreme Courtin1953afterAllstate failedtopayovertime toemployees. Thoughhe lostthecase,NurickshowedPennsylvania businessleadersthathecould champion thestate’sbusinesscausesatthenation’s highestcourt.Healso wouldbethefirstJewishattorneytoheadthePennsylvania BarAssociation,inthelate1960s.Hisoffices werelocatedlessthan10milesawayin

Harrisburg.

44 / THE CHOCOLATE TRUST

Nurick brought charmanddeviousness tohisworkandfeltchallenged withlegalramifications oftheproposal. Hinkleknewthatobtaining the fundsforthemedical center would require opening the“iron-bound gates ofa trustfortheavowed purposeofdrawingofa hugesumofmoneyto bedivertedforanotherpurpose.” TheHarrisburg attorney, Hinklenoted,

would havetobe“masterful” todoit.

Nurickaccepted theproject,saying,“I’vealways operated onthetheory thatifwhata clientwantsto doisbasically good,ethicallyandmorally sound,expendstheirmoney,andservesa greatpublicpurpose,thelaw

oughttobeslowtoimpair theimplementation ofthatdesire.”

Nurickacknowledged itwouldtake“alotofstretching” tobustopenthe orphans’ fundforaplannedmedical center,andhesetaboutdeveloping his

legalargument andpolitical strategy. Onthefaceofit,theneedforanewmedical center could bedemonstrated.In1959, aU.S.Surgeon General reportestimated thattheUnited States

wouldneedanadditional20to 25medicalcolleges andgraduate11,000 doctorsby1975, ascompared withthecurrent7,400newdoctorsbecause of agrowing population, underinvestment inmedicalcolleges, specialization, higherincomes andurbanization. Sotherewas a nationalneedforwhatthe Trustwasproposing.

ButdidPennsylvania needanadditional medical centertotraindoc-

tors?Thestatealreadyboastedsixmedicalschools,morethananyother stateexceptNewYork,whichhad10.Pennsylvania taxpayers subsidized

theeducation ofthesemedical students—many ofwhomeventually practicedinotherpartsofthenation—with about$3,000 perstudent ayear. “Regions whichneedmedical schools themost,” theU.S.Surgeon generalreportnoted,“arethosewithinadequate medicalopportunity fortheir youngpeopleandfewphysicians in relationtopopulation. Theneedsof

thoseareasmustbeweighed against theirability togiveadequate support tonewmedical schools.” Ninestateshadnomedical schools. Independently oftheHershey plan,thePennsylvania General Assemblyintroduced billsin 1961and1963authorizing anewmedicalcenterfor Pennsylvania StateUniversity, a projectthatwouldelevateits“cowcollege”statusandputitonparwithcolleges inPhiladelphia andPittsburgh. Launched justbeforetheCivilWarasFarmers’ HighSchool, theinstitution initsearlyyearssounded verysimilartotheHershey Industrial School, only withoutindentured orphans.Overtheyears,thefarm-based Farmers’ High School changed itsnameandmodernized itscurriculum, expanding inthe

LOOTING THE TRUST / 45

20thcentury withbranchcampuses inAltoona, DuBois, Erie,Hazleton, Ogontz andPottsville. Inthemid-20th century, PennStatehiredMilton

Eisenhower, Ike'sbrother,aspresident andbeganaquestfornationalrecognition,addingengineering andtechnical programs, andmilitaryresearch.

Eisenhower's successor, EricA.Walker, headed theuniversity’s Ordnance

Research Laboratory. Walkersetthethemeforhisadministration in his inaugural addressinthemid-1950s, saying,“Wemuststriveforqualityand quantity. Ourchallenge isthechallenge ofmassexcellence.” PennState’s blueprintcalledforan enrollment ofmorethan25,000

in1970. Colleges ofBusiness Administration, Engineering, Liberal Arts, Chemistry andPhysics, andEducation would absorb thenewstudents, and

therewouldbea higherratioofgraduate students toundergraduates. Walkerplannedtoinvest$168millionintonewbuildings onthemaincampus

andbetween 1957 and1962. EricWalker didn’t publicly encourage theideawhenlawmakers intro-

ducedbillsauthorizing aPennStatemedical center.InHershey, meanwhile, SamHinkle—a ’22PennStategradwhohadbeenawarded itsDistinguished Alumnus Awardin1957—had hismindsetondiverting theorphans’ funds intoone.

OnApril23,1963, hetelephoned Walker andformally offered thefunds toPennState—the “$50million phonecall.” TheTrustwould buildamed-

icalcenterinHershey andleaseittoPennStateforonedollara yearratherthanspendingthemoneyonmoreorphans.Animportantcondition

wasthatthemedical center beconstructed inDerryTownship. “You never

saweyeslightandanybodydroollikethatin allyourlife,”Nurickwryly observedofWalker’s reaction.NurickalsograduatedfromPennState. WalkerlatersaidthattheTrustmighthavegivenhim$60to$70millionin orphans’ fundsifhe’dasked.

IFTHE TRUST wastosucceed initsplantodivertfundsfromtheirintended

purpose ofeducating orphan boys,itwould dosowithout telling thepublic, othercharities orotherattorneys. Notonlywould public disclosure ofthe

planmostlikelyleadtoopposition totheplanincourt,butitwouldbring upquestions offiduciary duty,conflicts ofinterestandwhethertheTrust wasabandoning orphans.“Ifyouletthepublicknowthatyouhad$50millionavailable forcharitable purposes,” saidNurick,“theOrphans’Court

would conduct ahearing todetermine howitshould go,wellthatwould be alifetime careerforallthelawyers inDauphin County.”

46 / THE CHOCOLATE TRUST

Also,manyHershey residents—and businesses—could financially gain

fromthemassive construction project, andthetransformation ofHershey

intoahealth-based economy. TheTrust’s secretive approach wastypicalof thesmoke-filled backroom politicsofHarrisburg atthattime. Nurickassigned recentColumbia Lawgraduate JackRiggstothetaskof researching legalarguments andprecedents thatcouldbepresented tothe

Orphans’ Courtandtheattorney general, whohadparens patriaeresponsibility, thepower granted tothestateallowing ittointervene soastoprotect potentialorphanbeneficiaries ofMiltonandKitty’s fund. “Weevenkeptitasecretintheoffice,” Nuricknoted,“because a leaklike thiscould’ve, well,itwouldhavebeensuicidal. Jackspentdaysandnights inresearching andhe’dcomeupwithanidea,andwe'ddiscussitatnight

andseewhat’s wrongwithitandknockitdown.Finally aftermonthsof research, JackandIwereabletofashion atleastanargument.” Gilbert Nurick’s finalargument wasstraightforward: Heclaimed there

hadbeenaprotantofailureofMiltonandKitty’s orphans’ fund—in other words,apartialfailure.Thepetitionproposed thattheTrustwouldprovide benefits tothewhitemaleorphanswhocouldbeservedinHershey, Pennsylvania, estimated at 1,600,whilediverting$50millionintothemedical center.Themedicalcenterqualified underthecy-prés doctrineasbeing“as nearaspossible” toMiltonandKitty’s originalcharitable intentbecauseit

wasconsistent asaneducational institution withtheHershey School for orphans andtheHershey JuniorCollege. Based onthis,Nurickclaimed inthepetition“thatthecreationofafullyequipped medicalschoolinand aboutthetownofHershey, DerryTownship, appropriately namedtocommemorate[MiltonHershey],wouldbestfulfill[Miltonand Kitty’s]chari-

tableintentions andscheme whileproviding Pennsylvania andthenation withurgently needed medical educational facilities.”

NurickandHinklewinedanddinedtheHarrisburg powerbrokersto talkabouttheexciting plan.Theyconsulted formerattorneygeneralRobert Woodside, thena Superior Courtjudge,attheHotelHershey ona Sunday

afternoon inJanuary 1963. “Hisreaction toourconcept ofamedical school inHershey wasimmediately enthusiastic,” Hinkle recalled. Holding tohismaximofnopublic disclosure, Nurick kepttheTrust's

plansprivateashediscussed theplanwithAttorney GeneralWalterAlessandroni,whowaslegallyobligated toprotectthebeneficiaries ofMilton

andKitty’s orphans’ fund—orphans.

Nurickbelieved hecouldlegally avoidactualpublicdisclosure, by.argu-

LOOTING THE TRUST / 47

ingthatprivately informing Alessandroni thattheTrustwasabouttobust opentheorphans’ fundforanotherpurposewasequivalent tofilingpublic courtdocuments ontheTrust’scy-préspetitionin theDauphinCounty Orphans’Court.Thismeantthatcriticswouldn'thearin advanceabout

therepurposing ofthemoney andhavetheoptionofoffering alternatives inacourtproceeding. Theywouldn't beabletoarguethattheorphans’ fundshould berefocused onthemodern needsofthechild-care system. A

publicairingofthemedicalcenterplansalsowouldallowexpertstocon-

sidertheTrust’s costestimates, nottomention thedemands ofthePennsylvania health-care industry, andwhether thestatereallyneeded a new

doctor-training hospital. “Wethoughtitthroughandfigured, well,ifthePennsylvania Attorney Generalisthesoleandexclusive representative ofthepublicinmattersof

charitable trustsandiftheattorney general would goalong,” Nurick said, “thenoticetohimwouldbea noticetothepublic.”

WAS INFORMING AttorneyGeneralWalterAlessandroni, whoharbored

dreams ofsomeday beingelected governor ofPennsylvania, theequivalent

ofinforming thepubliconaplantodivertmoneyfromafundfororphans toanewmedicalcenterthatwouldcreatethousands ofjobs? CouldAlessandroni becountedontoprotectbeneficiaries ofMilton andKitty'strustfund—orphans whodidn’tvote—instead ofgoingalong withthedesiresofhugelyinfluential Trustorganization andHarrisburg powerbrokers? WalterAlessandroni beganhispoliticalcareerunderPhiladelphia

mayorRobert E.Lamberton inthelate1930s andcontinued hisservice underMayorBernardSamuel,whowouldearndistinctionasthelon-

gest-serving mayorinthecity’s history. Samuel alsowasthelastelected

Republican mayor, ashiscorruptadministration usheredintoexistence the reformist administrations ofDemocrats JosephSillClarkandRichardson Dilworth. AfterservingintheU.S.MarineCorpsReserve duringWorldWarII, Alessandroni returnedto Philadelphia andbecameknownasa McCar-

thy-eracommunist baiter,throughhisinvolvement withtheAmerican LegionaschairmanofitsNational Committee onUn-American Activities.

Drawing attention tohisfierce views, in1951 hecriticized therelease of communist leaderSteve Nelson on$20,000 bail.Alessandroni calledon federal officials tore-arrest Nelson. Hedeclared Nelson’s release a“trav-

48 / THE CHOCOLATE TRUST

estyofjustice, ifnotcorrected, occurring atthebirthplace offreedom,” which would “helpproveRussian propaganda thatweareaweak, vacillatingandconfused people.” Alessandroni believed thatcommunists should bebannedasteachers inpublicschools, because a fewofthem“intheright places” couldcontrolthemindsoftensofthousands ofchildren. Hehadsoaringpoliticalambitions andgrowing connections. Ashead

ofthePhiladelphia Housing Authority, Alessandroni administered anagen-

cywith9,500homesand40,000residents. In 1958, hebecametheyoungest chancellor inhistoryofthelegendary Philadelphia BarAssociation. President Dwight Eisenhower appointed himU.S.Attorney inPhiladelphia in1959. Alessandroni seemedtorealizethathehadgoneasfarasaRepublican couldgoin thereformisterain Philadelphia. Heexploreda bidforthe GOPgubernatorial nomination in1961, butbowedoutfor“harmony” GOP candidate WilliamScranton. ThemediabrandedScrantonasa “Kennedy Republican” because ofhisgoodlooksandsupportofcivilrights.Scranton ranwithformerCrawford CountyDistrictAttorney Raymond Shafer. Ever thegoodRepublican soldier, Alessandroni managed thevictorious Scranton/Shafer ticketagainstPhillymayorRichardDilworth.

Onceelected, Scranton rewarded Alessandroni byappointing himstate

attorneygeneral,issuingthenewsfromhisvacationhomein Florida.A 1966magazine articlenotedofAlessandroni, “He’s madeascience offormingmutuallybeneficial alliances withtherightpeople.He’sa pragmatist, aMachiavellian inthebesttradition.Inagamethatmostpeopleconsider dirty,Alessandroni haskepthisreputation asimmaculate ashekeepsthose conservative business suitshewears.” Thearticle’s authorcontinued, “Hehasaknackforallyinghimselfwith therightpeopleandtherightcauses.Hedoessowithinstinctive caution,

inanearly colorless, subdued manner. He’s intelligent andpolitically moti-

vatedto thepointthatheimpresses someasbeingcagey.He’saloofbut charming whenhehastobe.Hisalertefficiency gothimupthebackstairs ofpolitics.” Alessandroni supported theTrust’s medicalcenterplan,andconsented tokeepitconfidential. GilbertNurickthentoldDauphinCountyOrphans’ CourtJudgeLeeF.Swope ofthemedicalcenter,andofAlessandroni's support.Swope “realized thatthemedical centerwouldbeatremendous benefit tothepublic,” Nurickgushed. Nurickstillhadnointentionofdisclosing theplantothepublic.“We

worked upa largenumber oflegalmemoranda, toshow notonlythatcy-prés

LOOTING THE TRUST / 49

would beproperinthissituation butthatthecourthadtherighttoissue

adecreewithoutnoticetothepublicotherthantheAttorney Generaland withoutholdinga formalhearing.” Presented withtheplananditsarrayofsupport,Governor Scranton

approved theHershey medical center. OnAugust 23,1963, Swope signed theordertodivert$50million inorphans’ funds—about $375million in today’s dollars—and toallowthetransfer morethan500acresofTrust-

owneddairyfarms,onceworkedbyindentured Hershey Schoolstudents, totheproposedmedicalschool.Thosefarmsconsisted ofGro-Mor, 37-A;

Eastmoor, 53;LongLane,37-B; andunnamed farms55and56.

Swope'’s three-page ordershowedhowextensively theorphans’fund assetscouldbeusedforthemedicalcenter.“Thefundawardedin this decree,” thejudgewrote,“shallbeappliedandexpended forplanning, construction, operation, equipping, administration andmaintenance ofamed-

icalschool tobelocated inDerryTownship, Pennsylvania, withallofthe

necessary orappropriate components includingbutnotlimitedto,land, grounds, buildings, structures, appurtenances, equipment, supplies andany otherproperty, realorpersonal...providing adequate teachingfacilities, a

teaching hospital, dormitories, residences, dining, recreational....”

HARRISBURG NEWSPAPERS celebrated thenews.“Area ToGetMedical Col-

lege”readtheseven-column, front-page bannerheadline intheHarrisburg Patriot.Threefront-page articles jumpedtoA-2,whileA-3wasfullydevoted tocoverage withphotos,stories,sidebars andamap.Storiescrackled with

civicpride.Stunned wasthereaction among legislators whohadnoideaof

theproject.Onelocalcongressman, Representative JohnC.Kunkel, saidit

seemed asifanatomic bombdropped onHarrisburg. Onvacation, GovernorScranton issued a statement saying itwasa“source ofrealgratificationthattheHershey interests haveprovided thenecessary private fundsto

establish amedical schoolwhichshouldprovetobeoneofthefinestcenters ofmedicallearningandresearchintheworld.” Alessandroni added,“This isa momentous occasion, notonlyforthisareaandstate,butperhapsthe country.” Themedicalschoolwouldeducate200to300doctorsina200-to300bedhospital, anditwouldrequirenostatesubsidies. About$20millionof

the$50million would beusedtoconstruct themedical college. Theother $30million would generate aboutonemillion dollars ayeartooperate the facility. Even intheseearlyhoursoftheannouncement, somewerespeculat-

90/ THE CHOCOLATE TRUST

ingthatthe$20millionwouldn’t covertheconstruction costsofamodern hospitaltotraindoctors.Oneexpertsaiditcouldcost$40million. Apage-three storyinthenewspaper's frontsectioncapturedthebuoy-

antmoodandknowing winks. “I’msograteful toSamHinkle,” saidPenn State’s EricWalker, “whowehadtheforesight tonameasadistinguished alumnusa fewyearsagoandwhowehadtheforesight tonameasatrustee lastJunewithoutanyofthepeoplewhovotedforhimknowinga thing aboutthis,whichwasonfire,andI’msurethey'llallsaywehaditinthebag,

Sam,butwedidn’t, didwe?”Hinkle played alongatthepressconference, chuckling. APatrioteditorialpraisedthecivicvirtuesofthemedicalcollege, and askedPennStateto advancea planfora graduateschoolin Harrisburg.

Afollow-up newsfeaturecarriedtheheadline: “Fantastic! Wonderful! Extremely Logical!” Aspartofitpoliticalbargainforthemedicalcenterproject,theTrust theHershey Schoolandease saiditwouldspend$21millionto modernize overcrowding. Theorphans’ homeandschoolwouldhire30newhouseparents,11teachers, a naturalistandtwoassistants, aswellasaplanetarium

director, highschool counselor, vocational education counselor, research director, consulting counselor andothersasitaimedforanenrollment of 1,600students. OntheHersheySchoolcampus,orphansixth-grader JohnMardula heardaboutthecy-prés actioninaschoolassembly oforphanboys.Bornin

1951, hehadlivedinLilly, Cambria County, withhismother, whocleaned houses, afterhiscoalminerdaddiedfromalungdisease whenhewastwo. “Weweren'tmakingit,Mardulasaidlater,“andtheteacherin ourlittle schoolheardaboutMiltonHershey andtalkedtomymotheraboutit.”He recallstheassembly inwhichplansfortheMedical Centerwasannounced

totheboysandtheschool staff. Ateacher leaned overand,cryptically referringtothe$50million, askedhim,“Wouldn't youratherhavethatmoney forcollege?”

NOW THE MEDICAL CENTER PROJECT entereda newphase.Architects hadto

behired.Designs hadtobeapproved. Contractors hadtobetoldwhatto

do.Cementhadtobepoured.Costshadtobewatched. TheTrustitselfnow seemed abouttotransition fromorphancareandoperating ajuniorcollege withMiltonHershey’s estatetoproviding healthcareandtrainingdoctors

totheregion.

LOOTING THE TRUST / 51

Andthemechanism ofthetransfer hadtobeworked out.Swope’s decree

allowedtheHersheyTrustCompanyto transfer$50millionofsurplus orphans’fundstotheM.S.HersheyFoundation, theseparatetrustfund thatMiltonHershey hadcreatedinthe1930s tofinancetheHershey Junior

College. These fundswould beusedtoconstruct andoperate themedical center, which would remain anassetoftheTrust.

Through itsexistence, themodestHershey JuniorCollege hadcollected accolades andaccreditations. TheStateCouncilonEducation approved the institution in 1939, andtheMiddleStatesAssociation ofColleges andSec-

ondary Schools accredited itin1943. Students couldenrich themselves with extracurricular activities byparticipating intheHershey JuniorPlayers,

JuniorCollege Choir,Russian CultureClub,StudentChristianAssociation andNewman Club.Thegolfteamwentundefeated in 1954,andthemen’s basketball teamwonthePennsylvania JuniorCollege AthleticAssociation

tournament in1962. Buttherewerenodaysoffforfootball games, andit wasn't a“place forplayboys,” notedoneobserver.

TheHershey JuniorCollege sharedspacewithothergroupsintheCommunityBuilding, andHershey residents foundithardtobeatthefreetuition.Thosewhoqualified foradmission includedDerryTownship public

school graduates, sonsanddaughters ofDerryTownship teachers, thesons

anddaughters ofemployees inTrust-controlled businesses, andHomeBoys. Thefull-time enrollment expanded from70studentsin 1950to97in 1952.

Except foroneyear, thenumber ofstudents roseannually through the1950s.

Butin 1963,Pennsylvania lawmakers enactedtheCommunity College Act,authorizing schooldistrictsandtownstosponsorcommunity colleges. Thefirstcityto applywasHarrisburg, andtheStateBoardofEducation approved oftheHarrisburg AreaCommunity College, orHACC, inFebruary1964.Allofa sudden,theHershey JuniorCollege hadcompetition 10 to15milesaway.

TheTrust, responsible fortheconstruction oversight ofthemedical centercomplex through theM.S.Hershey Foundation, alsonowhadaconvenientreason toexitthejuniorcollege business. Theofficial announcement thattheHershey Junior College would close andmerge withthenewHarris-

burginstitution cameinApril1964.TheM.S.Hershey Foundation attributedthedecision tocostsandcompetition. Undera negotiated arrangement, thestudentsandfacultywouldtransfertoHACC. Hershey residents protested. TheyaskedhowtheMiltonHershey’s foundationcouldabandonthefreelocaljuniorcollege thattheChocolate King

92/ THE CHOCOLATE TRUST

created withhismoney, whilefinancing themedical centerthathehad nothing todowith. Morethan200students andfaculty staged a mockfuneral. Ahearse carryingsignsledabout60carsinafuneralparade.Signsonthehearseand

carssaid,“First thetrustees killedourcollege. Nowwehavetoburyit,”and

“Goodcolleges neverdie;they’re justgivenaway.” Anothernoted,“Money is therootofallevil.”Thestudents planneda mockburialatMiltonHershey’s

grave, butthejuniorcollege faculty dissuaded them.

SAM HINKLE retiredaspresident ofthechocolate company in1965, butstayed onasamemberoftheTrustboard.Groundbreaking forthemedicalcenter happened onFebruary 26,1966,withthesymbolic photo-op oftheproject's

leaders, Walker andHinkle, thrusting shovels intosnow. Complexities associated withbuilding andoperating amedical center inruralHershey hadn'tbeenanticipated inthesecretmeetings todivert orphanmoneyintotheproject.Thetownlackedhousingandasocialscene fornurses,doctorsandadministrators. TheTrusthadnoexperience with suchabigproject.

Evenlocalgeology placedobstacles intheproject’s path.Limestone

cavernshoneycombed theregion’s bedrock,forcingcontractors todigtest holeseightyfeetdowntofindsolidground.Project bossesrecruited laborers fromPhiladelphia, andpaidhole-diggers extrawages. Earthmoving during

theblazing summer of1966, oneofthehottestonrecord, kicked updust plumes thatcouldbeseen10milesaway inHarrisburg. Gritseemed toland everywhere, evenwhenoneclosed thewindows anddrewthecurtains. On February 23,1967, thefifthfloorofascience wingcaughtfirewhenaburningtarpaulinignitedapropanetank.Somepartsoftheprojectfinished on

time;othersdidn't. Keeping theproject moving forward felltoJ.O.Hershey, theheadofthe

HersheySchool. J.O.—no directrelationtoMiltonandKitty—had beena partofHershey since1938whenhewashiredasahouseparent, ontwoconditions:thathecouldfarmandthathehadawife.J.O.hitchhikedto Detroit

andmarried hiscollege sweetheart Lucille. They started assubstitute house parents inJanuary 1939, theyoungest andfirstcollege-educated houseparentsattheinstitution. Onhisseconddaythere,J.O.hauledmanureonthe

orphan-staffed dairyfarm. J.O.hadnointention ofhauling cowshitforhisentirecareer, andquick-

lyclimbed theorganization’s ladder.Hedisciplined boys,helpedadmissions

LOOTING THE TRUST / 53

andtaught. Hismother haddiedinchildbirth, andhe'dbeenraisedbyan

aunt.J.O.acknowledged lateinlife,“Ihadnopracticalunderstanding of whatit’sliketohaveafatheroramother.AllIcandoisfantasize aboutallof that.”Still,theTrustappointed himtoheadtheorphanage thatwasseeking

toreplicate aloving homelife.Andovertime,hebecame asindispensable totheTrustanditsmonumental newproject asGilNurick. Hephoned contractors, watched costsandactedasanintermediary between theTrust andPennStateofficials. Themedicalcenterprojectquicklythreatened todrainadditional mil-

lionsofdollars, perhaps tensofmillions ofdollars, outofMilton andKitty Hershey's orphans’ fund.Assomefeared earlyon,theTrusthadsignificantlyunderestimated theproject’s cost. PennStatelackedthefinancial resources tocloseabudgetgap,andPenn StatepresidentWalkerhadinformally promisedstatelawmakers thathe

wouldn't seekstatesubsidies forthemedical center. Thefinancial crunch threatened theviability oftheproject, andmadeitlooklikeaboondoggle. “Thoseofusonthefacultywereawareofsomeofthefinancialproblems butcertainly nottotheextentoftheirmagnitude,” wroteC.MaxLang,one

oftheearlyhiresatthemedical center. “This wasprobably wisebecause if theseproblems hadbecome widely known, theywouldhavehad a disas-

trousimpactonrecruitment andretention offacultyandstaff.” Wherecouldthemoneycomefromtofinishtheproject? Oneimportant sourceoffunds,PennStateandTrustofficials realized, couldbethefederal government. In 1963—ironically, thesameyeartheTrustdivertedmoney fromtheorphans’ fundintothemedical center—President JohnKennedy had signedtheHealthProfessions’ Education Assistance Act.Thismadeavailable massive amounts offederalfundsfortheconstruction ofmedical centers.

Itseemed asiffederal fundsweretheanswer totheirprayers. Butthere wasahitch:PennStateandtheTrustcouldn't applyforthem.Because of

JudgeSwope’s 1963order,themedicalcenter’s underlying assets—the land andthebuildings themselves—were ownedbyprivateM.S.Hershey Foundation.Aslongasthisprivatefoundation continuedto ownthemedical center’s assets,thefederalexpected thefoundation topayforitsconstruction.ButPennState,asauniversity, couldqualifyforthefederalfunds.The Trust’sMr.Fixit,GilNurick,returnedto Swope’s courtroomtotransfer ownership ofthemedicalcentertoPennState.Inoneswiftaction,hehad

scandalously washed theTrust’s handsoftheballyhooed andunfinished project afteronlyfiveyears.

94/ THE CHOCOLATE TRUST

Swopeagreedto theTrust’srequest,witha vagueexplanation ofhis reasoningin a December 17,1968decree:“andit appearingthatcertain problems intheadministration oftheTrusthavedeveloped asa resultofthe scheme adopted...and itappearing thattheadministrative scheme adopted inthe1963Decreeisnotessential tothecharitable purpose...and, onthe contrary,hasinadvertently andunnecessarily impededtheachievement ofthosepurposes;andit appearingthattheadministration difficulties encountered bythepresenttrusteeandthePennsylvania StateUniversi-

tywould besubstantially reduced and,toalargeextent, eliminated, ifthe

fundsandassetswereremoved fromtheM.S.Hershey Foundation....” Swopedidn'tholdtheTrustaccountable forlow-balling theproject’s costandfailingtoconsidertheownership ramifications. NordidSwope

consider thattheHershey School couldhaveopened itsadmission toblack orphanboysororphangirlsin1963, whichwouldhaveundermined the argument fordiverting $50million intoamedical center. Onehasa hardtimenotviewingthemedicalcenterprojectasa $50 milliongiftfromMiltonandKitty'sorphans’fundto PennStatebytwo

alumni boosters, GilNurick andSamHinkle. PennStatefinished themedicalcenterconstruction withthehelpoffederal funds,andsubsequently ranthehospital andteaching school without Trustinterference. Langesti-

matedthattheconstruction ofthemedicalcentercost$63millionthrough theearly1970s—more thanthreetimestheoriginal$20millionestimated

budget. Some believed thattheTrustinitially projected $17million because itbasedestimates onahospital complex forpatients, instead ofateaching hospitalforpatientsandteaching. TheM.S.Hershey Foundation continued toexist,butwithout theHershey JuniorCollege orthemedicalcentertofinance. Insteadofeducating Derry

Township residents, thefoundation subsidized Hershey's tourism industry. Aglowing marketing brochure forNurick’s lawfarmyearslaterboastedofNurick’s “approach tolawyering.” Thefirmwasa“shadow ofGilbert

Nurick, whoseinfluence continues tobefelt.Aleaderinhiscommunity and

hisprofession, GilNurick builta greatfirmandendowed itwiththetraits hepersonified: integrity, persistence, intelligence, toughness andcivility. Butmostofall,hechampioned a beliefthata lawyer’s roleisnottobea naysayer; alawyer's role—at McNees, Wallace &Nurick—is tofindawayto accomplish. ..thedesiredresult.”

Diverting assets intoamedical college “wasanimpossible thingtodo. GilNurickdidnotacceptthis,”thebrochure continued. “Withhiscol-

LOOTING THETRUST / 55

leagues atthefirm,hedeveloped atheoryandsupported itwithanancient precedent thatifthereismoremoney ina charitable trustthanisnecessary

foritsbasicpurpose,thenthatexcessmaybeusedforpurposesconsistent withthecharitable philosophy ofthedonor.A medicalschoolinHershey fitwithinthatconcept.Thefirmwasabletopersuadethecourtthatthis

concept wasvalidandapplicable, andtherest,astheysay,ishistory.” Thebrochure doesn't tellthewhole story:Howthe’63cy-prés process

overlooked otheroptionsthatwouldhaveservedthestillpressing needsof poorchildren; howtheproject’s costwaswildlyunderestimated; andhowa

legalmaneuver succeeded thankstosecrecy andbackroom dealing. Nurick notedinanoralhistory thatthemedical center wasoneofthe nation’s largest cy-prés actions. Butdiditsetprecedent? “Since therewasno appealtaken,sincetherewasno opinionwritten,sinceit wasnot reported

inanyof theofficial reports,I don’tknowwhetherithasmadeanimpact

onthelawofcy-prés ornot,’Nurick admitted, adding “certainly anybody researching thequestion would nevercomeuponitunless theyknewabout thesituation.” DauphinCountyOrphans’CourtJudgeWarrenMorganrevisited Lee Swope’s decision manyyearslater,in 1999. TheTrustcametoMorganseek-

ingagaintodivert money away fromtheorphans’ fundinanewcy-prés, this timetocreate aresearch institute withorphans’ funds. BythentheHershey

Schoolhadchangeditsstudentqualifications andcouldadmitanyhealthy poorchildinAmerica, givingitapotential applicant poolofmanymillions

ofkids.Morgan refused theTrust’s request, andcommented onSwope’s 1963 actions: “That proceeding wasnotcontested; theAttorney General joined in

thepetition.Therewasnopublicnoticeofthependency ofthematter,no hearingwasconducted, andnoOpinionfiledtosupportthedecree.” EvenJ.O.Hershey seemedtoregretsomeaspectsofthemedicalcenter

thatdiverted chocolate profits awayfromorphans. “Theonethingonthe

masterplanthatneverdeveloped, thatI wassosorryabout,isthatI had several milliondollarsinthereforaresearch centertofindoutwhykids’IQs seemed toadvance anywhere from10to40pointsafterthey’re hereforsever-

alyears. I'dlovetohavefound outtowhatextent certain dietary foods affect learning. I wouldhavelovedtohavedonecertainkindsofveryselective research withthemedicalcenter.Ithadbeenmydreaminthebeginning, of

course, thatwewould haveusedthemoney forthemostoutstanding child

healthcenterintheworldtospecialize inallkindsofthingsinresearch that

relate tothehealthofchildren andlearning, allthatsortofthing.”

WINDS OFCHANGE Girard College Finally Admits BlackBoys;

50Does Hershey

")" HEEARLY 1960Satfirstlookedtobea continuation oftheoptimistic, * conformist1950s.Butthecivildisobedience ofcivilrightsactivists,

= bothinthesouthandthenorth,would haveanexplosive effect on

thecountry, bringing longstanding inequalities tothesurface, andforcing

majorinstitutional shiftsinresponse. Philadelphia, thebigcitynearestto thesmalltownofHershey, wentthroughitsownupheavals inthisperiod, whichwouldhavearippleeffectontheMiltonHershey Schoolaswell.

Oneofthecity’s epicenters ofconflict overracialequality wasGirard College. Despite itsname,itwasaboarding school serving children from

elementary throughhighschool.Established bytheincredibly wealthy StephenGirardin 1833andopenedforstudentsin 1848,GirardCollege was intended toprovide education forpoor,white,fatherless boys—a radicalidea

foritstime.Girard, wholikeMilton andKittyHershey diedwithnodirect heirs,hadmadehisfortuneinshipping andbanking,andwasbelieved tobe thewealthiest maninAmerica atthetimeofhisdeath.Thetermsofhiswill allowed fortheconstruction ofanimposing 43-acre campusfilledwithmas-

siveneo-classical stone buildings, surrounded by atall, forbidding stone wall. Bythemid-20th century, Girard College wassurrounded bypoorblack

andworking-class rowhouseneighborhoods. NathanMossell, oneofthe

firstblackdoctorsinPhiladelphia, hadrailedagainstGirardCollege’s

whites-only admissions restriction fordecades, buthediedin 1946without

seeing anychange there.Thelandmark 1954 rulingoftheSupreme Court,

WINDS OFCHANGE / 57

mandating desegregation ofthenation’s public schools, emboldened those

whohadhopedtoopenGirardtoblackchildren.TheBrownplaintiffs had toldthehighcourtthat“separate butequal”treatmentforwhiteandblack studentsinstitutionalized second-rate publicschoolsforblacks.Thesame

yearastheBrown v.BoardofEducation decision, Philadelphia’s Boardof CityTrustsrejected sixblackboyswhoapplied foradmission toGirard College. Yearsofcourtchallenges ensued. In 1965,in an atmosphere ofcontinuingfrustrationcombinedwith

raised hopes, thankstosuccessful civilrightsactions, protesters organized demonstrations inthestreetsaroundGirardCollege. Onthefirstdayof thoseprotests, inMay,several dozenpicketers encountered about1,000 Philadelphia police.Thenextmonth,theprotestersjumpedtheGirard College wallsandwerearrested.Laterthatsummer,theReverend Martin LutherKingspoketo5,000protesters fromaflatbedtruck,comparing the

Girard wallstotheBerlin Wallthatseparated Democratic-controlled West Germany fromCommunist-controlled EastGermany. “Atthisstageofthe

20thcentury,’ Kingshoutedtothecrowd,“inthecitythathasbeenknown asthecradleofliberty,theGirardCollege wallisliketheBerlinWall.This

wall,thisschool, issymbolic ofacancerinthebodypoliticthatmustbe removed before therewillbefreedom anddemocracy inthiscountry.”

Newspapers trackedtheseesaw battlewithheadlines. “GirardGranted StayinNegroAdmissions,” saidoneheadline. “U.S.CourtUpholds Girard

onExclusion ofSeven Negroes,” saidanother. “Negroes LoseAppeal Round inGirardCase.” TheAssociation forthePreservation ofWillsandPrivate

Schools warnedPennsylvania Governor Raymond P.Shaferin 1967“thatit wouldtrytocloseGirardCollege iftheschoolisforcedtoadmitNegroes.” Butthiswasa statement ofdesperation, asheadlines nowpointedtovicto-

ry.“Eisenhower HitsGirard Will,” saidone.“Negro Boys Upheld inGirard Case,’ readanother. Finally: “Negroes HoldVictory Rally atGirard College.”

Philadelphia widowMarieHickswitnessedthegrandeurofGirard College whileattendinga BoyScoutbadge-awarding ceremony fora son.

“When I sawhowbeautiful everything was,” Hicksrecalled, “itmademe evenmoreangrythatnoblack boyswereallowed in.Ifigured Iwould never

getinthereagain.”APhiladelphia newspaper calledherthe“RosaParksof GirardCollege.” :

Ajubilant crowdof450gathered attheGirardCollege wallsinJune

1968. TheU.S.Supreme Courtrefusedtointervene inthecase,andletstand

alowercourtrulingforcing theorphanage toadmitblackboys.“We're

98/ THE CHOCOLATE TRUST

goingtoturnthosewallsasblackastheywerewhite,”thunderedCecilB. Moore,ofthelocalchapteroftheNationalAssociation fortheAdvancementofColoredPeople.Headdedthathewasforminga newgroup,the BlackIndependent Alliance, “toteachpeopletovoteblack,buyblack,build black,thinkblackandlearnblack.” GirardCollegeadmittedthefirstblackboysinAugust.Onecarrieda chesssetashewalkedthroughthegates.“Therewillbea newdawnnow

withmeaschairman ofadmissions,” aGirard official promised thepublic. “Nomorediscrimination byrace,Icanassure.” Seven hundred whiteboys boardedatGirardin 1968.Theschoolhadroomfor103blackboys. TheTrustinHershey hadtodecidewhattodo—follow GirardCollege in accepting blackboys,orfightintegration. ThePhiladelphia government con-

trolled Girard, andthefederal courtsdetermined theorphanage fellunder theequalprotection clause oftheU.S.Constitution’s Fourteenth Amendmentthatprohibited racialdiscrimination bystateorlocalgovernments. ButdidtheequalprotectionclauseapplyinHershey? Verypossibly it didnot.TheTrustoperated withprivatemoney—Milton Hershey’s money.

ButdidtheTrustwanttoriskantagonizing theNAACP? Diditwanta repeatofGirardCollege, withstreetprotests andcourtchallenges incon-

servative Hershey? Probably not. Buttheinstitutionalsocouldn'tjustletblackboysintotheschool.The 1909Deedonfilewiththestatestillcontained thewhites-only restriction.

Awhitesupremacy groupmightseektoenforce therestriction iftheschool opened itsdoorstoblackboys.

TheTrust’s go-tolawyerGilbertNurickappealed privately totheattorneygeneraltoextricate theorganization fromthislegalandpublicrelations jam.TheTrusthadgottenthemedicalcenterplanthroughthestategovern-

mentandthecourtswithout telling thepublic. Nurick nowsought tosolve theracialrestriction withouttellingthepublic.Thiswouldbeapatternin subsequent decades—the Trustdealingprivately withtheorphans’court andtheattorneygeneral, andforeclosing debateonMiltonHershey’s char-

itable intent. Nurick drafted a17-page legalopinion, datedMay13,1968, arguing that

theprivateTrusthadbecomesoentangledwithstategovernment thatit legallyfellundertheequalprotection clauseitself,andshouldimmediately admitblackboyswithoutformally modifying theDeed.Thiswasanother oneofNurick’s “stretches.” MiltonHersheyhaddeliberately placedthefuturegovernance ofthe

WINDS OFCHANGE / 59

Hershey Industrial School inprivate hands,unlikeStephen Girardwho

hadhandedoverresponsibility tothenow-corrupt Philadelphia citygovernment.ItwasoneofthewaysthatHershey believed heimproved upon

Girard’s organization. Nurick citeda“galaxy” ofways inwhich theHershey School intersected withthestateandlocalgovernment. “Mr.Hershey was

asophisticated businessman andwasundoubtedly quiteknowledgeable in theadvantages ofcorporate existence andthenuancesofcorporate operations,”Nurickwrote.“Itissignificant thatintheDeedofTrusthespecifi-

callyprovided fortheauthority toincorporate theinstitution andforsaid corporation toenjoyallthebenefits ofthelawsoftheCommonwealth of

Pennsylvania relatingtothisstatus.Thisfactorassumes specialimportance because thispowertoincorporate wasexercised onDecember 19,1919 when anapplication forcharterfor“TheHershey IndustrialSchool’ wasfiledby

the[Board ofManagers] andwasapproved bytheCourtofCommon Pleas ofDauphin County, Pennsylvania asofthatdate.Itisnoteworthy thatMr.

Hersheywasoneofthemanagerswhoparticipated in thatproceeding. Thus,theSchool achieved corporate statusandmaterialbenefits therefrom throughtheapplication ofthestatelegislature andtheactionofthestate

judiciary. Wedonotsuggest that,underthepresent stateoflaw,thisaction alonewassufficient toactivatetheproscription oftheFourteenth Amendment,butitisasignificant eventwhichmustbeincluded inconsidering the totalscopeofstateinvolvement andparticipation.”

NurickaddedthattheDepartments ofLaborandIndustry, Agricul-

tureandotherstateagencies regulated theinstitution. Theorphans’ court hadapproved Deedmodifications in 1933and1951, allowing thediversion assetsintothemedicalcenter,andtheleaseofTrustlandtoasupermarket. UnderGilbertNurick’s argument, justaboutanyorganization inPennsylvania—or anyprivatebusinessincorporated in thestateorthatinteractedthestatedepartments—would fallundertheequalprotection clause, whichwasnotwhatthecourtsintended. Thatdidn’tseemtoconcernAttorney General WilliamC.Sennett, who

agreed onJune4thwithNurick’s expansive interpretation. Rejecting black boys,Sennett wrote,could“constitute Stateactionprohibited bythesaid

equalprotection clause.” Sennettconcluded hisletterinahigh-minded fashion,saying,“Iconfidently predictthattheelimination ofthecolorrestrictionwillenabletheSchool tocontinue itsinvaluable service toorphanboys, whoobviously weresodeartotheheartofitsillustrious Founder, Milton S.Hershey.”

60/ THE CHOCOLATE TRUST

TheTrustdeceived thepublicindiverting $50million fromthetrust fundin1963, lootedtheorphans’ fundforajob-creating medical center,

andfordecades deprived blackorphansofthecharitable services oftheMiltonandKitty’s trustfund.Nonetheless, Attorney GeneralSennettpraised theorganization as“judicious.” Thewhites-only restrictionin theDeed wouldbequietlyremoved in 1970.

DURING THE SAME MONTH asSennett’s letter, June1968, ayoung black mother

intheM.W.Smithhousingprojectsin Harrisburg, JoyceWaters,diedof cancer,leaving11-year-old twinsTerryandJerryin thecareofanaging father.Jerry,whoisnowanexecutive withtheLiquorControlBoard,pointedouthisfifth-floor windowduringa 2012interview toabridgecrossing theSusquehanna River.Blacks inthe1960s, hesaid,didn'tcrossitandenter

theWestShore neighborhood. JerryandTerry visited family inVirginia in

thesummerof’68.Whentheyreturnedto Harrisburg, their61-year-old fatherdrovethemthe10milestoHershey forintelligence andbehavioral

tests.“Wedidn’t wanttogo,”Jerrysaid,but“most kidswhowere11years oldinthesixties didnotquestion theirparents.”

Theboyspassedthetests,wereacceptedandassignedtotheHabana studenthomeof 15boys.“Unequivocally I feltwelcomed,” saidJerryof hishouseparents. HisHershey housefather “wastruetohisword”whenhe

toldhisbirthfather thathewould lookaftertwoblackboysasiftheywere hisown. Terry’s firstroommate wasaboynamedFrancisBacon, whohelpedhim withhisstudies.“HewasthemainreasonIcaughtupsoquickly intermsof classwork,”Terrysaid.“Itwasdefinitely morechallenging thanwhathad

beenhanded tomeintheHarrisburg public schools.” Terrysawtheword“nigger” written onthebathroom stalls.Onetime

a houseparent calledhimone.“Iremember vividlya mathteacher...who madenosecretsthathewasNOThappyto beteachingme.Healways seemedtocallonmewhenI didn’thavemyhandraisedtoanswera ques-

tion,butneverevercalled onmewhenIdid,”Terrysaidinanemail. Terry recalled onemanwhotoldhisfather onparent weekend that“they aregood

kids.Theywillneverberealsmartkids,buttheyaregoodkids.”Hisdad justsaid,“Uh,huh.”

SOME SLIGHTS wereundoubtedly real.Othersmighthavebeenperceived. TheHersheybaseballcoachcutTerry,whothoughtit couldhavebeen

WINDS OFCHANGE / 61

because hewasblack.“Iplayed andstartedona championship teamin

Harrisburg,” hesaid.“Iguesstheydidn’twantablackwhohadalittle swaggerwithhimontheteam.” Hershey hiredablackcounselor, GrayJohnson, a formermilitaryofh-

cer.Theblackboyscalled himColonel, though nooneseemed toknowhis official rank.Whitestudents viewed Johnson ashelping theblackstudents

integrate; blackstudentsviewedhimasaninformantfortheadministration.OneSaturday afterschoolletoutforthesummer, aboypushedTerry

offalittlewalking bridge. “They saiditwasanaccident andthatthekidwas joking.” Nothing happened tothekidwho'dpushedhim.“ButI hopped ononelegtheentireweekend. Asubstitute houseparent whowasthefarm dairymanwouldnottakemetothehospital. FinallyMonday morningMr. Stout[theregularhouseparent] tookmetotheschoolhospital.” Terryhad

broken hisankleinthreeplaces. Freshmen inthefarmhomes werecalled“dirt.”“Itwas‘dirtgetthis; dirtgetthat.” Theywouldtakeyouandputyourheadinatoilet andflush 29 ¢¢

it.Itwascalleda ‘whirly,” Terrysaid.“WellI wasn’thavingit.”Henever wassubjected toit,nortootherhazingsthatincluded peeingonanelectric

fence. TherewerenoblackgirlsinHershey—or very,veryfew.Areligious

instructorwhocoachedbasketball, andwasoneofthefirstblackhousemothers,droveblackgirlsfromHarrisburg toHershey ina stationwagon

forthedances. Moreblacks enrolled. Bytheearly1970s, theybeganspeaking out.“The school barbers where allwhite,” saidTerry. “They didnothaveacluehowto

cutablackperson’s hair.Alsothiswasthetimeoftheafro,andtheywanted tokeep[blackkids’]hairinlinewiththewhitestudents.FinallyI refused

togetmyhaircutbyawhitebarber. Iwasallowed togetmyhaircutwhenI

wenthome.Anyway therewereissueswithstufflikecombs.Blacks needed afrocombsorhairpicksatthattime,andwewereissuedthesamesmall six-inch blackcombsasthewhitestudentsandtoldtousethem.Therewas tensionbecausemoreblackswereatthe[highschool]andspeaking up.It

should benotedthatJerryandIwerethefirstblacks togothrough thethree yearsatthemiddle school [grades sixthrough eight] andthenthefouryears atthehighschoolsowesawprettymuchallofit.”

6 THE SOUL OF THE ORPHANAGE Upscaling theInstitution; CallThem scholarship Winners

DDYTHELATE 1960Sand 1970s,the classicHershey-style orphanage

oy hadbeenmarginalized asacomponent ofthenation’s safetynetfor Sa neglected children. Adwindling numberoforphanages caredfor

43,000kidsin a nationof200millionpeople.Thisreflecteda majorsea changeinattitudesaboutchilddevelopment, andaboutbestpracticesfor needychildren. SomeexpertsviewTheodore Roosevelt’s 1909WhiteHouse

Conference ontheCareofDependent Children asaturning pointmarking thedawnofmodern childcare,withitsrecommendation thatgovernment shoulddoallitcantokeepfamilies togetherinsteadofconsigning children toorphanages. Thisideainspiredchildadvocates, althoughitwasnotuntil morethantwodecades later,inthedepthsoftheDepression, thatthefed-

eralgovernment enacted welfare payments forimpoverished parents with children aspartoftheSocial Security Actof1935.

Researchers versedin newerpsychological theoriesalsospecialized in neglected-child issuesbeginningin the1930sand1940s.Theworkof Britain's JohnBowlby haditsrootsinpersonalexperience. Hisupper-class

Victorian mother hadbelieved herloveandaffections wouldspoilhim.A

nannyraisedtheboyuntilhecouldattendboardingschool.Bowlby later famously observed, “Iwouldn’t senda dogawaytoboardingschoolatage

seven.” TheWorldHealthOrganization commissioned Bowlby towritea reportonthementalhealthofhomeless anddisplaced children inpost-

warEurope,whichwaspublished asMaternalCareandMentalHealthin

THE SOUL OFTHE ORPHANAGE / 63

1952. AnnaFreud, MaryD.Ainsworth andothers pursued similar research

topics.MichaelRutter,oftencalledthefatherofchildpsychiatry, eventuallypublishedhisclassicbook,MaternalDeprivation Reassessed. These researchers hadahugeinfluence onchild-care models. Aspartofaseparateintellectual veinthatinvolved orphanages, sociologistErvingGoffman published Asylums: Essays ontheSocialSituation of MentalPatientsandOtherInmates. Inthis1961book,Goffman introduced theconceptof“totalinstitution.” Thesewere“places ofresidence andwork

wherea largenumber oflike-situated individuals, cutofffromthewider

societyforanappreciable periodoftime,togetherleadanenclosed, formallyadministered roundoflife.”Goffman lookedatthephysical indignities andpsychological humiliations forcedonindividuals intotalinstitutions, applying theconcepttomentalhospitals, monasteries, prisonsandorphan-

ages.Mental hospitals inparticular seemed toreinforce chronic mental illness.KenKesey portrayed theseindignities inhisnovel, OneFlewOverthe

Cuckoo's Nest. Increasingly, socialworkerscounseledagainstplacingchildreninto orphanages—total institutionsthatdepriveda childofa mother’s affec-

tionandlove.Foster careboomed. Adoptions drained children outofthe

orphanage market.TheNationalCenterforSocialStatistics reportedthat thenumberofchildrenadoptedincreased from91,000in 1957to 135,000 in 1964,to 169,000 in 1971.“Largeinstitutions wereespecially outoffavor andinmoststates...were usedaslittleaspossible bypublicagencies,” wrote

Marshall B.Jones ofPennStateUniversity inahistory ofAmerican orphanagesbetween1941and 1980.“Ifa children’s homewasto existat all,it shouldbeprofessional andtreatment-oriented, assmallandasintegrated

withthegeneral community aspossible.”

Theremaining orphanages caredforproblemkids.ButtheChildWelfareLeagueofAmericaobserved thattheagingandmostlyunderfunded institutions werepoorlypreparedfornewchild-care realitiesofkidswith emotional andpsychological problems. A 1960leaguereportdescribed an orphanage inYork,Pennsylvania, wherethestaff“hasnotbeenprepared bytrainingorexperience tomeettheemotional problems; sodespitetheir hardworkandinterestinthechildren,theirtherapeutic helpisseriously

limited. Theirmethods ofsolving problems havebeenlimited to‘agood, firmdiscipline, ignoring thebehavior withthehopethatitwilldisappear, diverting thechild,keeping himbusyatworkorplay,finding relatives or friendsforhim.Thesemethodsfrequently eliminate thesymptom butleave

64/ THE CHOCOLATE TRUST

itscausesuntouched. Whenthesemethodsfail,childrenwhoarea threat

tothegroup’s equilibrium havetoberemoved. Without trainedstaffand withoutcasework services, aninstitution hasnootherchoice,andyetitis theseverydifficult childrenwhomostneedgroupcare.” TheTrustacknowledged thatmodernchild-care trendsdiverged sharplyfromitsaway-from-home institutional caremodelin ruralHershey. In

its1963 cy-prés petition—the onethatmodified theDeedofTrust,allowing

fundstogotoanewmedicalcenter—the Trustadmittedthatprofessionals tendedto“disfavor institutional careofhealthychildreninfavorofinstitutionalfostercareintheirlocalcommunities and,whereinstitutional careis indicated, todisfavor placingstudentsininstitutions whicharelocatedlong distancesfromtheirlocalcommunities infavorofplacingthemin insti-

tutionsreasonably neartheirhomes sothatclosecontacts withsurviving family members canbemaintained.”

Thiswasa legalisticwayofsayingthattheschoolshouldbelocated nearkids’families.ButtheTrustburiedthecomments deepinthecourt document.TheissueoftheHersheySchool’s caremodelneverbecamea publicissuebecausethereneverwereanypublichearingsonthecy-pres petition.Doingso—talking aboutthecaremodel—would opena canof worms.Whatshouldthealternate caremodelbe?TheHershey School could takedelinquents awayfromhome.Buttheschooldidn’twanttobeviewed asareformschoolfordelinquents. Itwantedtoenrollgood,poorboys.The TrustcouldrelocateHersheyeducational facilities closertocities.ExpendituresoftheHershey Schoolassets,MiltonandKitty’s chocolate-enriched trustfund,wouldthenbeappliedtoothergeographic locations. Thelocal businessmen whosatontheboardoftheHershey TrustCompany andcon-

trolled thecharity’s expenditures didn'twanttodothis. Theeasiest waytodealwiththisdilemma wasthrough somejudicious rebranding. J.O.Hershey, theheadoftheHersheySchool,lobbiedto tell mothersorfatherstheywereofferingextremely generousscholarships to orphanboys.Hespokeofcentralizing thecampussothatitwouldlooklike

aNewEngland prepschool. TheTrustconstructed Founder’s Hall,opening

thedomedmonument toMiltonHershey intheearly1970sonRoute322. Trustleadersappearedtohavecopiedtheideaofanexpansive andarchitecturallyadventurous buildingfromGirardCollege. StephenGirardhad

specified theconstruction inhiswill,andbanker Nicholas Biddle managed

theproject.ThearchitectwhodesignedFounder’s HallatGirardCollege, Thomas UstickWalter, haddesigned thedomeoftheUnitedStatesCapitol.

THE SOUL OFTHE ORPHANAGE / 65

Trustofficials didn’t disclose thecostofFounder’s Hall,butestimates atthe timeranged between $15million and$25million. Gubernatorial inaugural

ballswouldbeheldintheFounder's Halllobby. Othermodernizations attheHersheySchoolwoweditsvisitors.New

carpetscovered theclassrooms andhallway floors, andmoreTVswere

added.TheTrustpurchased14-seatstationwagonsforhouseparents,

andenlarged theautoshopatSenior Hallwithanopenpittoteachfrontendalignments. TheTrustrenovated oropened dozens ofstudent homes

between1962and1969:Monroe,Fulton,Adams,Buchanan, Eisenhower, Madison, Jefferson, Washington, Lincoln, Logan,andsoon.

JOE BERNING’S EXPERIENCE atHershey reveals someofthedangers ofinstitutionalizing orphan children. Hismother haddiedofacerebral hemorrhage whenhewasinfirstgrade:“IraninandallIremember isgrabbing herfoot andshakingherandtryingtowakeherup.Andthenthelifesquadcame

andtookheraway, anditwas a blurafterthat,andtheneighbors helped out.”Thetraumatized boystartedhavingtroubleinschool. Hecrawled andsnorted intheclassroom. Hechased girlsintoelementary school bathrooms.Administrators endedupkickinghimoutoftwoschools. Thenhis fathermarriedthehousekeeper. “Shewhipped usandbeatus,andmydad

thought itwasgreatbecause hethought shewaswhipping usintoshape. My brother andIwerescared shitless.” HisfathertoldBerning hewould have

togoeithertoMiltonHershey orareformschoolbecause oftheexpulsions. Theypackedthe61FordFalconforCentralPennsylvania. “Thecarwassooverloaded thatitdragged, andwhenyou'dhitabump,

thebackuniversal jointwould hitthemetal,” Berning recalls. They traveled

forhours.“Ihadtopisssobadandmystepmother handedback ajuice bottleandsaid,‘Pissinthebottle.’ Soanyway, Ipissedinthisbottle.I emptied itoutofthecar.I rolleddownthewindowandemptiedthebottle’—here

Joemadeamotion ofextending hisarmoutawindow andshaking abottle. “Igotpissalloverthesideofthecar.Well, shejustturnedaround andbeat thesnotoutofme.ThatwasmytriptoHershey.”

Whentheygotto town,Joeheardhisfathertellhishousefather that thehousefather hadhispermission tobeathissonifhemisbehaved. “My brotherwasfouryearsolderthanmeandhehadnotbeenenrolled. Hon-

estly, Ihadcontact oncea month. Iwould geta five-minute phonecalland

theyweresoparanoidthattheywouldtimethecall.Mydaddidn’twantthe long-distance phonebill.SoitwouldbefiveminutesandIwouldbetalking

66/ THE CHOCOLATE TRUST

andhewouldsayyougottwominutes,yougotoneminute.Saygoodbye. AndI wouldwriteletters,butI stoppedaftera whilebecauseI wouldget noresponse.” Houseparents didn’thavetohughimandtell JoeBerning likedHershey. himhewasa goodboy—and he didn’texpectit. Hewantedto betreated fairlyandthesameasotherboys.Andhewas.Everything wasdistributed HomeBoyshadfivesetsofclothes: playclothes, equally, eventheclothing. houseclothes,schoolclothes,second-best clothesandSunday-best clothes. Theyworebigwhite“barnsocks.”Oneboyworehisbarnsockswithhis

shinybrownMilton Hershey School trackuniform totrackmeets. “We'd

laughing. They say,Homey,youlooklikeanorphan,”Berningremembers, did.Shower timewas calledhimOrph.“There wasaroutinethateverybody Snacktime.Bedtime.Everything wasschedthesametimeforeverybody.

uledandeverybody didit.Soyoudidn’t feelliketheywerepicking onyou. That's mydefinition ofinstitutionalized.”

Hazingandbullyingcouldbebrutalandritualizedin an orphanage whereboyssoughtpoweroverpeers,andcontrolin aninstitutionwhere thatthisiswhatyoudid.Youhadto theyhadlittlesay.“Ijustconsidered payyourdues,”Berningrecalled.“Theboyshadthefreedomrun.Older

boysgaveyou a headstartsoyoucouldfindaplacetohideinthecornfield.

Youmightbeforcedtopissonanelectricfence.Youcouldbethrowninthe manurespreader.” Berninglearnedto fixcarsas partofthetradeschoolprogram.He playedfootballin the fall,andhecutweighttowrestleat 185poundsin

thewinter. “Itwasjusta wayoflife.I wascompletely institutionalized at thatpoint.Istillgotintotrouble. I gotinacouple offights andI gotcaught

stealingtoolsfromtheautoshop,andtheytriedtokickmeoutforthat.” Houseparentsandcoaches stoodupforhim.Hestayed.

wenthometoCincinnati, butfound Afterhis73graduation, Berning hecouldn't makea goofthingsontheoutside, evenlivingnearhisfamily,

whowerestrangers tohim.Hereturnedto Hershey in twoweeks: “Itdidn’t workout[inCincinnati]. I hadnoplacetolive.Nothing.I hada pickup truckwithacampercaponit,andIdroveituptoCampMiltonandparked itthereandsleptinmytruckuntilI madeacontact.Abuddy

RATHER THAN RESPOND to thesocietalanddemographic shiftsofthetime withsubstantive reformsto theSchool, theTrusthaddiverteda hugeportionofitsassetsto themedicalcenter.In itspetitionto theAttorney Gen-

THE SOUL OFTHE ORPHANAGE / 67

eralandtheOrphan’s Courtin1963, theTrust’s argument restedonthe claimthatithadmoremoney thanitneeded toprovide caretoAmerica’s

whiteorphanboys.Ittoldcourtandstateofficials thatitcouldfinanceboth themodernization ofa 1,600-student orphanage andtheconstruction of a medicalcenterwithcashsurpluses, bothofthemmassive projects. Asit turnedout,thisrepresented amonumental miscalculation ofconstruction costsandtheTrust’s spending power. Thechocolate business waschanging rapidly. MarsInc.wasovertaking Hersheyasthenation’s leadingchocolate manufacturer withitspopular M&Ms, Snickers andMilkyWaybars.Othercompanies, including W.R.

Grace, National DairyProducts, Lorillard, Standard Brands andPetInc. hadenteredthechocolate business. Hershey Chocolate boughtReese's peanutbuttercups,whicheventually becamebiggerthanthetraditional Hershey brand.ButHershey itselfhadn'tintroduced anynewblockbuster productsfordecades, andstillvieweditselfasa “flatbar”chocolate com-

panyastheconsumer market washeading toward barswithnougat, caramelandotheringredients. Itstilldidn’t advertise ontelevision. Meanwhile, cocoapricesspiked200percentinthe1960sona commodity cycle.This wasparticularly badforHershey, becauseitcouldn’t offsetthecocoaspike withthesugar-based ingredients in itschocolate bars.Whatto do?The company diversified intopastaandpreparedfoods,andbuilta California

planttohelpslashnational trucking costsbyamillion ayear.Italsobought 5,000acresofalmondgrovesforacheapersupplyofnuts. Stilltheeconomic tidewashedoverHershey. Timepublished “Choc-

olate’s Drop”inFebruary 1968, inthemidstoftheconstruction bingein Hershey. Othernational publications jumped onthestory.“BigChocolate Maker, Beset byProfitSlide, GetsMoreAggressive,’ theWallStreet Journaltolditsbusiness readersinafront-page storyin 1970.Reporter JackH. MorrisvisitedHershey andsummarized theissues:“Plunging profitshave forcedthefirmto discontinue thenickelcandybar,longitsbest-selling product. Aggressive competitors havenibbledawayatHershey’s shareofthe candymarket.” AplantinCanada—Hershey’s firstmanufacturing venture outsidePennsylvania—was notdoingwell.“AndalthoughHershey executivesrefusetodiscussthematter,knowledgeable sourcessaythecompany

lostabundle onthecocoamarket—which Hershey allegedly controls.” Hershey Chocolate profits fellto$12million in1969 from$25million in

1966. The1969financials included sevenmilliondollarsinthecocoa-market losses.Squeezed byNixon-era costcontrolsaimedatcontaining inflation,

68/ THE CHOCOLATE TRUST

alongwiththesoaringcostofrawmaterialsandaggressive competitors,

Hershey Chocolate cutitsstockdividend—not once,buttwice. Thosedividends werethesourceoftheHershey School’s operating

budgettoeducateandlodgeorphans,andthecorporatehardshiphadan immediate impactonorphans.The1909Deedmandated thattheHershey

School couldn't operate withdeficits, anditcouldn’t liquidate the“corpus,”

orpermanent endowment. TheTrustorderednew-student enrollment cut-

backs.John“Mac”Aichele,an alumnusand headofthe school’sbusiness

operations inthe1970s, toldme:“Thenicepartwaswedidnothavetofire

anybody. Wewereloyaltoouremployees andwecouldkeepthestudents

wehad.Itdidtakeawhiletogetthemoneyback.” TheTrust,withafiduciary responsibility toorphans,shouldhavebeen expected nowtohunkerdownanddoallitcouldtodelivercharitable ser-

vicesduringtheeconomic crisis—tighten beltsandsacrifice. Instead, the onlyonestosacrifice seemed tobeorphans. TheTrustfunctioned asifnothingwaswrong and,infact,tookanactionatthispointwhich loosened the

financial protections onthetrustfundandreinforced theTrust’sevolving economic-development missionaroundthetownofHershey. In 1970,theTrust’sattorneyspetitioned theOrphans’Courttoallow

anumber ofmodifications tothe1909Deed.Oneofitsprovisions barred

anyonewitha financialinterestin thecharityfromservingontheTrust board.Thisincludedschooladministrators, consultants, lawyers andconstructioncontractors. MiltonHershey hadinsertedtheconflict-of-interest provisionintotheDeedin the 1930s,becausehedidn’twantthosewho

couldfinancially benefit fromtheorphanage’s assets having power overthe

trustfunditself.OnDecember 24,1970, Orphans’ CourtJudgeLeeF.Swope agreedwiththeTrust’srequesttoweaken— somethoughtgut—that provision.Because Swope released thedecision onChristmas Eve,fewpeople

outside oftheTrustorlegalcommunity knewofit.Activist alumnidiscovered thechange twodecades laterastheyexhaustively researched the

institution's legalhistory. WithinmonthsofSwope’s 1970decision, attorney GilbertNurickoftheWallace McNees firmjoinedtheTrustboard.Nurick andSamuelHinklewerethetwomenmostresponsible fordivertingthe

Trust’s orphanassets intothemedical center. Butthatwasnotall.Atthesametime,Judge Swope granted theTrust’s

requesttodoawaywiththeDeed’sland-salerestrictions. The1909Deed haddictatedthatTrusthadtoreinvesttheproceeds oflandsalesintonew landpurchases fortheorphanage. ThisseemedtoreflectMiltonHershey's

THE SOUL OFTHE ORPHANAGE / 69

Mennonite upbringing; Mennonites placedgreatvalueinowning land. Swope saidthattheorganization didn’t havetoabide bytherestriction any-

more,whichallowed theTrusttoliquidate partsofitslandholdings—such asparcelsonbusyroads—without findingreplacement land.Manybelieved thisaddeduptoaneconomic development boontothetownbymaking

landavailable forstores, homes andtourism. AmonthafterSwope’s decision,theAntique Automobile Association bought theRolling Green orphan

farm.Millions oftouristswouldvisittheassociation’s annualcarshowover theyears. TheTrustclosedorsoldmanyofthelegacyHershey Estatesbusinesses

andutilities connected withrunning thetownofHershey: telephone lines, thesewer system, thedrugstoreandthedepartment store.Instead ofput-

tingmoneyintotheHershey School tomaintainenrollment, theTrustreinvestedthecapitalintotourismprojects, suchastheHershey MotorLodge andtheHersheyConvention Center.Thelargestmeetingspacebetween

Philadelphia andPittsburgh, thefacility opened in 1974astheHershey School itselfwasretrenching.

TrustChairman ArthurWhiteman askedJ.O.Hershey tosplithisduties betweenrunningthebudget-tightened HersheySchoolandmodernizing

HersheyPark, anassetmeanttobenefit theschool. “SoI wentover,” J.O recounted. “What doIknowaboutapark?Idon’tknowanything abouta

park.ButI wentoverandwalkedthroughitwithmanagement.” J.O.flew aroundthenationto speakwithtopamusement parkexecutives. “Soto makea longstoryshort,I comebackwitha prettyhighpricetag,many millionsofdollarstoredothepark.Weremodeled andexpanded thepark

intothestyleitistoday.” TheSooperDooperLooper rollercoaster opened in

April1977. Trustofficials broached theideaofaPennsylvania Turnpike exit toHershey attractions. TheTrustnowbelievedit couldgonationalwithitsorphan-subsi-

dizedHershey-branded tourism business. Itrenamed Hershey Estates as

theHershey Entertainment andResortCompany. Thecompany developed multi-million-dollar trophyproperties, evenasenrollment attheHershey Schoolremained farbelowthetargetof1,600students. TherewasaTrustownedHersheyPhiladelphia HotelonSouthBroadStreet,a Trust-owned PoconoHershey Resort,andaTrust-owned Hershey CorpusChristiHotel inTexas.Thecompany alsoboughta run-downamusement parkinConnecticut.Butthedebt-dependent nationalexpansion didn’tadvancethe mission oftheHershey School withcashdividends. Instead, theTrustended

70/ THE CHOCOLATE TRUST

upbailingoutthenear-bankrupt, mismanaged entertainment company

with$15million inschool fundsinthelate1980s.

SOMETHING HAD tobedoneaboutthelamechocolate cashcow.BillDearden, a 1941graduate oftheHershey Industrial School, tookoverasCEOin1976,

andbeganimplementing sweeping reforms. Hede-emphasized theflat chocolate bar,andheavily marketed Reese’s peanutbuttercupswithTV

adsusingthepitch,“twogreattastesthattastegreattogether.” Hediversifiedthecandybusinessbyacquiringtherightsto Good&Plenty,Jolly Rancher, Twizzler, KitKat,Rolo,Heath,YorkPeppermint Patties,Payday, MilkDudsandWhoppers, recapturing thetopmarketsharepositioninthe U.S.chocolate business. Onthecorporate side,Hershey Foodsrecapitalized itsfinancial struc-

turein1984, dividing thecompany’s equity intotwoshareclasses. ClassA shares paidahigherdividend butcarried onevoteingovernance matters. Super-voting ClassBsharescarried10votesbutpaidalowerdividend. The Trustretainedvotingcontrolofthecompany bytransferring itsownership intoClassBshares.Theshrewdrecapitalization benefited thechocolate

company withawarchestforacquisitions, andbenefited theTrustwith cashthatcouldbereinvested intohigher-yielding government bonds. Cash surpluses againflowed intotheTrust’s income account fortheHershey School’s operating budget.Finally, theHershey Schoolseemeddestinedto realizeitspotential. TheTrusthadcashsurpluses becauseoftherecapital-

ization ofthechocolate company. Andithadwidened itsapplicant pooltremendously: in1976, theTrustabandoned thestrict“orphan” requirement in

theDeed,andopenedadmission toallqualified poorkids,including girls. TheTrustcalledthesekids“socialorphans;” traditional orphanswouldall butdisappear fromtheschool’s enrollment.

Butevenwiththisgreatly broadened eligibility, theTrustcouldn’t reach thelong-sought 1,600 students onwhich ithadbasedthe1963 cy-prés peti-

tion.Infact,enrollment fell.Hershey School statistics tellthestory.In 1965, theHershey School enrolled 1,378 boysasitopenednewhomesandmodernizedthecampus. Studentnumbers peakedat1,553 boysin 1971—about the timeofthecrisisatthechocolate company. Enrollment thendropped steadily to1,216 students in1976,1,033 students in1987, and1,024 students in1989. ThetownofHershey gotitsmedicalcenter—eventually oneofthelargestemployers incentralPennsylvania—and abig tourismindustry, thanks

totheexpansion ofHersheyPark, theconstruction oftheHershey Lodge on

THE SOUL OFTHE ORPHANAGE / 71

orphan land,andmore.Whatdidtheorphans andpoorkidsget?Because

theHershey School consistently didn’tattainits1,600-student goalbetween theearly1970sandthemid-2000s, oneofthenation’s wealthiest charities effectively failedtoenrollabout14,000 orphansorpoorchildren—which

wasthedifference between 1,600 students andtheactualenrollment over thoseyears.Thisdoesn't takeintoaccount theexplosion ofTrustassets, whichshouldhavepushedtheenrollment targetsubstantially higherthan 1,600studentsinthelate1980sand1990s.

NO GOVERNMENT AGENCY ormediaorganization inPennsylvania seemed to understand theTrustorwhatitwasdoingduringthe1960s and1970s. But inNebraska a verysimilarcharity,BoysTown,hadcometotheattentionof crusading newspaper publisher andinvestor WarrenBuffett.

BoysTownwasfounded in 1917 byFatherEdward JohnFlanagan as ahomeforhomeless boysbetween theagesof10and16.Located west ofOmaha,Nebraska, TheCityofLittleMen,asit wouldbeknown,had a mayor,a postoffice,a chapel,a schoolanditsownzipcode—quite like Hershey. The1938Hollywood filmBoysTown, starringSpencer Tracy, pub-

licized thecharity tothenation. Tensofmillions ofdollars poured intothe organization's coffers through appeals forcontributions evenafterFlanagan diedin1948. Flanagan hadinsisted oncaring forhardcore delinquents. He’d eventakejuveniles chargedwithmurder.Hissuccessors, though,screened

outemotionally disturbed boys, mentally challenged boysandserious delinquents, instead seeking outhomeless boyswithnosignificant emotional or

physical problems. Bytheearly1970s, theinstitutionemployed about600 staffers tocarefor665boys,and,aswithHershey, its“institutional approach ofhousing boysinisolation fromthesurrounding community, withacusto-

dial,evenprisonlike atmosphere, hadbegun toseemoutofdate,” wrote Alice Schroeder inSnowball, herbiography ofWarren Buffett,

Buffetthadpurchased theOmahaSunchainofsevenweeklynewspapersinthelate1960s.Thepaperspublished newsintheOmahasuburbs,

andBuffett encouraged theeditors tolookintothesacrosanct Boys Town. SuneditorPaulWilliams obtained areportshowing thatBoysTown sent between 34and50million mailings ayear—a staggering national charitable appeal.BuffetthadtheinsighttotellreporterstoobtainBoysTown’s tax filingswiththeInternalRevenue Service. Thedocuments revealed a donation-supported orphancharitywitha networthof$209millionthatwas

growing by$18million a year,fourtimesmorethanitspentonitsopera-

72/ THE CHOCOLATE TRUST

tions.Whenasked tojustify thefundraising appeals totheAmerican public whenitwasflushwithcash,74-year-old Reverend Monsignor Nicholas H.

Wegner replied,“We're sodeepindebtallthetime.”TheSunpublished the storyonBoysTownonMarch30,1972andwon a PulitzerPrizeforitayear later.Inresponse tothepublicbacklash, BoysTownenactedreforms.

BYTHE 1980S, theHershey School’s famedvocational education program—

thejewelofMilton Hershey’s vision forhisboys—was suffering fromlack ofstudent interest. Thejobshops were“likeaghosttown,” recalled aretired school administrator. “Nobody wanted tobeanelectrician oraplumber.

Theyallwantedtogotocollege orbeaCEO”—partly, perhaps,drivenbya moreselective admissions department. Andattritionwasbecoming aprob-

lem.Boysandgirls—the firstgirlsgraduated intheearly1980s—dropped outiftheydidn’t liketherulesorthedailychoreprogram, another foundationalaspect oftheschool. TheHersheySchoollookedtorebrandtheinstitution withthehelpof Wilmington-based Independent SchoolManagement—as aprep school.

In1988 theconsulting firmsubmitted its47-page blueprint forthefuture, “Market PlanforMiltonHershey School.” Itasserted thattheHershey

School hadtoshedits“orphanage image” andmarketitselfasa“year-round boardingschoolwhichoffersfullscholarships toqualified students. Accep-

tancetoMilton Hershey School isanhonor.” Freetuitionandboardcould bepresented tothepublic asa$25,000 scholarship, according toauthor Rita Borden. “This willalsohelpchange theMHSimage asadumping ground forcounselors’ problem children.” TheHershey School’s culturehadtobemodernized, anditcouldn'ttreat studentswithparents,itsnewclientele, asiftheywereorphans,thereport

said.Thestaffhadtosmile. Theyhadtobepleasant. Academic programs

hadtoenrichstudentlives.“Whenwhatparentswantintersects withwhat studentswant—and theschoolisnotproviding it—there isanalmostirresistiblepushtoleavetheschool.Example: ‘lackofacaringatmosphere.” It

continued: “Themiddle classparents whoaremaking upmoreandmoreof MHS'’s parentbodyareparticular abouteverything thattouches theirchil-

dren’slives.Theyaremoredemanding andholdtheschoolaccountable.” Studentsneededmorepersonaltime.Ruleshadtogo.Thefarmshad

toclose. Student overcrowding inthegroup homes—a problem sincethe1950s at

thenation’s richestorphanage, onethatcouldn’findsufficient kidstoenroll

THE SOUL OFTHE ORPHANAGE / 73

initsprogram—had toease.“Ifthegoalistopromote a‘home’ aswellasa school, thencreate manageable family residences, perhaps eightmaximum.”

Houseparents shouldofferstudentspositivereinforcement, notscolding.Burned-out houseparents shouldberetired.Theinstitutionshouldbe

moreselective inhiringhouseparents.

Manytimes,houseparents dotedontheirownchildrenandtreated thestudentsassecond-class citizensintheirgrouphome.Thereportwas

unflinching initsassessment: “Address theproblem ofdiffering standards forhouseparents’ children vs.MHSstudents.”

Alumnishouldberecruitedforpresentations, videosfilmed,brochures printedandparentletterspersonalized. SignsaroundthetownofHershey couldbe updatedto pointouttheschoolanditsamenities.Theschool

shouldcontact anational magazine towriteafeature article. Thereport suggested a5Kor10K run“through thecampus. Objective istoshow people cluster homes, school buildings, sportsfacilities, medical center, etc.Endat

Founder's Hallwhererunnersandspectators beinvitedinforcolddrinks, topickuptheirT-shirt.” Thereportintroduced theideasbeingcontemplated atthetoplevelsof

thecharity. InFebruary 1990, theTrustformally released its21stCentury

Initiative, a radicaltransformation planthatinvolved strongeracademics, reducedemphasis onvocational education, acentralized campusandracial diversity.

TheplannotedthatJimCarney, theoutside professional whohadbeen hiredtohelpsearchforanewheadofschool, hadspentseveral dayslivingattheschoolandmeetingandinterviewing staffmembers. Carneyhad comeawaywiththesensethatthebiggestproblemattheschoolwasthe

perceived lackofdirection. “People nolongerweresurethattheMilton Hershey School wasmoving inonedirection and,tothecontrary, feltit

wasmovinginalot ofdifferent andsometimes contradictory directions at thesametime.” TopTrustofficials, it continued, believed“themajorityofourpeople

willcatchtheexcitement andenthusiastically joininourefforts toturnthe dreams setforthintheenclosed documents intorealities.”

Threemonthsafterthereleaseofthereport,HersheySchoolpresident BillFisher,an alumnus,announcedhisretirement.TheTrusthiredthe

firstoutsider andfirstwoman toheadtheschool, Frances O’Connor, in July1991. Sheresigned thefollowing summer inAugust 1992. TheTrust boardhiredArthurLevine oftheHarvard Graduate School ofEducation to

74/ THE CHOCOLATE TRUST

replace O'Connor, buthequitwithout relocating toHershey. McNees Wal-

lacepartnerRodPeraservedasinterimpresident whiletheTrustsearched

forapermanent president.

In September 1993,theTrustappointedWilliamLepleyto headthe

Hershey School. Lepley wasaformer superintendent oftheCouncil Bluffs

SchoolDistrictin Iowa;healsoheadedtheIowaDepartmentofEducationunderGovernorTerryBranstad.ThegovernorpraisedLepleyas“a visionary andenergetic leaderforIowa's education system.” Lepley hadbeen a targetforpoliticalandreligious conservatives whosaidhiseducational standards “sought toimposea liberalsocialagenda.” SixtopHershey School administrators werefired,sendingshockwavesthroughthecampus. Teachers,houseparents andservices employees unionized toprotecttheirjobs.

] “ORPHAN ARMY” They FeltThey Owed IttoMr.Hershey

D) ICK PURCELL andotherHomeBoyalumnididn’tlikethenewstheywere hearingaroundHersheyin thelate1980s:farmclosings, persistentlylowandsinkingenrollment, a lackofaccountability ontheTrust

board,andthesaleofTrustland.Purcell, a1961 Hershey School graduate, couldn't stomach theclosing ofEarleMarkley’s vocational education program.Seventy percent oftheHomeBoys, including him,hadgraduated

withjob-ready skillsinprinting,automechanics, machine shop,electricity,

plumbing, sheetmetal,electronics, foodservice, drafting, floriculture or poultrymanagement overthedecades oftheprogram. Companies hired HomeBoysrightintoapprenticeships orgood-paying blue-collar jobs.

Someboysgraduated earlyiftherewasajobforthem.Theethosoftheplace reflected a sensethatHomeBoysmightnotbe thebrighteststarsin the sky;theymightnotcomefromthebestfamilies. Butif theyworkedhard,

thetradesprogram couldliftthemoutofpoverty byfixingcars,framing

homes,repairingpipes,machining steelorsweeping floors.Purcellbuilta two-cargarageandopeneda machineshopwithbrotherMilt,alsoa Hersheyalum.DickPurcell,saidhiswife,“wasdetermined todoeverything he

couldtomakesurethevocational tradesdidnotgodownthedrain.” Theconcerned alumniorganized aprivate brunchtotalkwithTrust leaders. Noseems torecalltheexactyear,butwasthelate1980s orearly

1990s, aroundthetimeofthereleaseofthe21stCenturyInitiative report, heraldinga majorshiftintheschool’s direction.AlumnusJamesHarvey,

76/ THE CHOCOLATE TRUST

classof69,hadopened a high-end restaurant onChocolate Avenue, competing withHotel Hershey andRillo’s. Condé Nast’s Gourmet magazine featuredsomeofHarvey’s selections, giving itarealmarketing boost.Patrons dinedonstuffedshrimpwrappedinbacon,Norwegian salmon,seafood Louisiana, Australian lambandsteakinoneofthreediningrooms.They

drankcocktails ina45-seat lounge. Afireroaredinthefireplace. Harvey openedtherestaurant ona Sunday fortheprivatemeeting

between topTrustofficials andalumniassociation members. Hefiredupthe stoveforabuffetofeggs,sausage, bacon,coffeeandfruitjuice.Hehadbeen exposedtopreparingfoodandbutchering animalsasanorphanstudent, andbelieved theHershey School’s vocational programwasoneofthebest inthenation.Hefeltstronglythattheprogramshouldn'tbeclosed—that it shouldcontinueasavaluedpartoftheschool.Thosewhoattendedthe

and McKinney Bruce RodPera,RonGlosser, Trustinsider included brunch JohnRineman. Emotions ranashotasthecooking stove during thebrunch.

“Wesaid,‘You havegottogetvocational education back,”recalled William Schwanger, analumnileaderatthetime.“Theyweretotallyblownaway because itwasthefirsttimethatagroupofalumnichallenged them....They

knowwhatwe andwedidn’t wewereabunchofhooligans wereconvinced weretalking about.Weweretaughtintheschool toberespectful, andwe

weretryingtodothiscleanly.” Schwanger waslikePurcell.Hefeltindebtedto MiltonHershey. His mother,Elsie,haddiedofaheartattackatage46.Hecouldhavebeenraised

byanoldersibling, buthisfather, Jacob, thought heshouldgotoGirard College orHershey. Schwanger boarded atFosterleigh andlivedonthe

farmsasateenager. Bullying wasrampant,butheandseveral younger boys jumpedthejuniorsandseniorsinafarmhomeoneday.“Wewantedtolet themknowwewouldn’t takeitanymore,” Schwanger recalled.Heplayed

offensive anddefensive tackle fortheSpartans andgraduated in1964. Shippensburg University offered himafootball scholarship, butheattended the morepracticalHershey JuniorCollege. “Itwasafantastic experience. I did not,in myopinion,havea toughtimegoingintotheHome,”hesaid.“I

neverrelated thatmydadabandoned me,though heworried thatI might.” Schwanger knewbullshit whenhesawit.Heknewbullshit whenhe heardit.Hewasseeing itandhearing itnowfromtheTrustboardmembers afterthebrunch.Theyweren'tlistening tothealumniconcerns. Afterward, heandothersagreedtheyhadtodosomething more.TheyreadtheDeed,

gathered information onTrustconstruction projects, landsales, GilNurick,

“ORPHAN ARMY” / 77

andDeedmodifications. They contacted avocational education expert who saiditwasimportant tokeeptheprogram going. Aftermoreconversations,

Schwanger said,“Wesensedtherewouldbea lotofgamesmanship andwe neededmoreresources.” ThealumniretainedalawfirmandopeneddiscussionswiththeOffice ofAttorney GeneralErniePreate.

ERNIE PREATE wasaconsummate player oftheHarrisburg political gameasit

existedthen.HehadcometothepostofAttorney General forPennsylvania in 1988,afterservingasD.A.inLackawanna County.Whatnooneknew

whentheHershey alumni contacted himwasthathiscampaign fundshad gottenaboostfromvideopokeroperators. Popular theninbetting-crazed Pennsylvania, electronic videopokermachines couldbemanufactured for

$1,400 to$2,800 andproduceillegalprofitsof$1,000 a weekinbarsandprivateclubs—a hugereturnonacapitalinvestment forabusinessman willing totakeariskonthem.Ashadowy networkofmanufacturers anddistribu-

torsfedtheoutlawed industry. Preate, vulnerable duetoleftover campaign debtfromhisearlier racefordistrict attorney, madeadeal:inexchange for

thevideopokeroperators’ financialhelp,hewouldpromisetogosofton prosecutions.

Onepokeroperatorintroduced Preatetooperators throughout Penn-

sylvania. Another operator waslaterquoted assaying, “Idon’tcareifyou

paythebills.MakesureErniegetshismoney.” Andtheinvestment seemed toreapreturns.InApril1988,theScranton-area barownerswerewarned ofapendingbustofvideopokeroperators. Somequickly pulledtheirvideo pokermachinesoutoftheirtavernsbeforetheraid.Onceelectedattor-

neygeneral, Preate didn'trecuse himself fromastatewide grandjurylookingintovideopoker. Ofthe25individuals recommended forprosecution

by the statewidegrandjury on chargesrelatedto corruptorganizations,

sevenweren'tarrested.Theremaining 18individuals werearrestedinearly

1990. Sixteen ofthoseeitherhadtheirarrestrecords expunged orhadtheir

chargeswithdrawn. ElmoBaldassari wouldboastfromprison,“Imade ErniePreateattorneygeneral.” Preatehadhigherpolitical ambitions thanattorneygeneral: hiseyewas onthegovernorship. Butastimewenton,hecouldn’tshaketherumors ofhisconnections to videopokeroperators, andhebegancrackingdown

onthem.“WearenotgoingtostandidlybyandpermitPennsylvania to

becomea defactogambling state,”Preatetolda newsconference. “We're

changing therisk-reward equation forbarowners anddistributors....In the

78/ THE CHOCOLATE TRUST

pasttheyknewthatiftheywereconvicted ofillegal gambling, theonlypunishment theywerelikely togetwasamodest fine....Our goalisnothing less thandriving everyvideopokermachine outofPennsylvania....And we're clamping downevenlyontheentireindustry, toptobottom.” Thevideopokeroperators feltbetrayed. Political foessmelled blood.

Preatefoughthispolitical enemies inthecorridors ofpowerinHarrisburg. Itwasduringtheearly1990s thathegottherequest fromPurcell andtheotherHershey alumnitoinvestigate possible mismanagement, and otherbreachesat theorphanage. In agreeingto doit,Preateseta prec-

edent—he became thefirstPennsylvania attorney general totakeonthe

sacredChocolate Trust. Itdidn’tseemlikeadifficult calloncethestaffattheOfficeofAttorney GeneralblewthedustoffMiltonandKitty’s1909Deedandreadit.Itsaid

oftheeducation tobeoffered toorphan boys: “Each andevery scholar shall berequired tolearn,andbethoroughly instructed insomeoccupation or

mechanical trade,sothatwhenheleavestheSchool onthecompletion ofthe periodforwhichheistoremain,hemaybeabletosupporthimself” TheTrustsurrendered quickly. ErniePreate’s September 1993Memoran-

dumofUnderstanding didn’tsaytheschool hadviolated theDeed.Butit seemed tobeaclosecall.Aspartofitsagreement withPreate, theHershey School agreed“toprovide job-specific vocational trainingtoitsstudents,” hire certified teachers, publicize theprogramandcounsel students onjobskills. Preate’s memoseemedlikea “bigvictoryforus,”saidJosephBerning,

whonowwasoneoftheactivist alumni, “because wethought thatmemorandums,agreements andboardresolutions meantsomething. Wewerenaive.” THE ALUMNI hadothergripes.TheytargetedTrustheadRodPera,whosucceededGilNurickasthetopMcNees Wallace partnerattheTrust.Alumni

believed thatPerawasbehindtheplantotransform theorphanage intoa prepschool andtoshrinkthe10,000-acre campus toathousand acresso

thattheTrustcoulddevelop theschool’s bucolic landfortouristattractions. TheTrusthadelectedPerachairmanoftheboardandthenappointed him

interim headoftheHershey School intheearly1990s, which allowed himto consolidate power overtheschool’s financial assets, andtheschool’s admin-

istrationandculture. Thealumnididn’tthinkPerashouldbesopowerful, andtheydidn’t likehimpersonally. HewasraisedinHershey andhistorically HomeBoys

andtownie boysdidn’t getalong. They competed oversports, girlsandjobs.

“ORPHAN ARMY” / 79

Whenhewasalive,Milton Hershey hadcontrolled thetownanditseco-

nomicresources: theland,thechocolate company andthediversified businesses(lumbercompany, hotel,department store,etc.).Townsfolk seemed to resentHershey’s decision topledgetheeconomic benefits ofhisestateto

orphanboys,andthealumni believed thatthetown’s residents constantly schemed toundermine theorphanage andtakeitslandandmoney. Alumni

discovered a memofromthe1930sin whicha Trustofficialor consultant hadsuggested thatMiltonHershey redirectsomeofhisphilanthropy tothe community. Hedidn'tdoso,andin factseemedtostrengthen theDeed’s

provisions related toorphan boys. Hershey hadkept a lidonthetown’s discontent duringhislifetime. He

financed theHershey JuniorCollege, whichwasopentoareastudents, and developed amenities thatwereavailable toeveryone, including a first-class golfcourse,a sportsarenaandthecommunity buildingwithitsrecroom

andpool.Butafterhisdeathin1945, it seemed tobeadifferent story.J.O. Hershey, thena mid-level school administrator, feltcompelled tocirculate

a memoonNewYear'sEve1946to houseparents inthefarmhomeswith thisedict:“Themovieprivilege scheduled fortonighthasbeenpostponed

indefinitely. Thisactionhasbeennecessary inviewofthetension thatis existing atthispresent timebetween theboysofthetownandtheboysof theHershey Industrial School.”

A tightcircleofbusinessmen andotherlocalinsiderscomprised the Trustboard.Theyhad tiesto the communitywhosebiggesteconomic

resource wasthechocolate-enriched trustfundfortheorphanage, includingitsland.Inthe1960s and’70s,HomeBoysdidn’t feelwelcome tostay

in Hershey aftergraduation. Hershey childrenraisedin the1950s, 60sand °70sconfirmthattherewasminimalinteraction between thelocalresidents andtheorphanboysduringthisperiod.HomeBoysthemselves hadone

nightoftownprivileges inHershey. Thestreets seemed toempty astheboys wandered tohangouts orHersheyPark.

Nowinthelate1980sandearly1990s, alumnithoughtRodPerawould repurposethe school’seconomicresourcesforthe community’s bene-

fit.Theyfeltthathedisrespected them.“Hethought wewereabunchof farmers,” commented one.Oneday,about50alumni picketed McNees, Gil

Nurick’s andRodPera’s lawoffices indowntown Harrisburg.

THE ALUMNI APPEAL totheOfficeofAttorneyGeneralhadgottenthestate agency's attention. NowtheOAGbeganaskingquestions thatwouldstart

80/ THE CHOCOLATE TRUST

shining a lightonthecozyback-room dealings thathadcharacterized the Trust’s modus operandi. MaryBethO’Hara, senior deputy attorney general intheOfficeofAttorneyGeneral,senttheTrusta letteronNovember 10,

1993 asking aboutRodPera’s compensation, andforboardmeeting minutes

andpaperwork relatingtothesaleoflandtoH.B.Alexander, aconstruction firmownedbya Trustboardmember, WilliamAlexander. Sherequested anyandalldocuments onconstruction projectsgreaterthan$10,000. O’HaraalsoaskedhowmuchtheTrusthadpaidtoMcNees, Wallace & Nurickforlegalservices fortheHershey School, Hershey TrustCompany, Hershey Entertainment &ResortCompany andHershey Chocolate overthe previousfiveyears.Herinquiryincludeda requestfordetailsonwhythe TrustalteredMiltonHershey’s conflict-of-interest provision in 1970.Who preparedthatchange,andhowdidTrustboardmembers vote?Howmuch

money fromtheorphans’ fundhadtheHershey TrustCompany infused intothemismanaged Hershey Entertainment &Resort Company‘

TheTrustcouldn’t retaintheMcNees Wallace firmtodefenditselfwith theOffice ofAttorney General: RodPeraandMcNees Wallace werepartof theinvestigation. InsteadtheTrustretainedthe“special counsel” ofThomasCaldwell, RobertL.Freedman andGeorgeJ.Hauptfuhrer Jr. Caldwell andhisfamilyhaddeeppolitical tiesinCentralPennsylvania. Hauptfuhrer, atopPhiladelphia lawyer, hadbeen afirst-rounddraftbythe BostonCeltics inthelate1940s, butinsteadattended PennLawSchool, join-

ingDechert, Price&Rhoads rightoutofthatschool. Hemadepartnerin eightyears, andintimerosetoheadthefirm.Hauptfuhrer chaired theReal

Property, ProbateandTrustLawSectionoftheAmerican BarAssociation, thePennsylvania BarAssociation andthePhiladelphia BarAssociation. He hadexcellent legalcredentials and,perhapsasimportant, belonged tothe

bestgolfclubs: PineValley, theHonorable Company ofEdinburgh Golfers, Huntingdon Valley, JohnsIslandandRoaring Gap.Robert Freedman also wasanattorneywithDechert. WilliamLepley, thenewheadoftheHershey School, wrotetoThomas Caldwell onDecember 20,1993.“Thisletteristoconfirmmyunderstand-

ingofhowyouareproceeding underyourengagement byMilton Hershey Schoolinconnection withinquireswhichhavebeenmadebytheAttorney GeneralofPennsylvania regarding School finances andregarding practices oftheSchool’s BoardofManagers.” Lepley addedthatitwas“essential that

theseissues beresolved promptly, soMilton Hershey School canmoveon

frompreoccupation withpastcontroversies to concentration onthecare

“ORPHAN ARMY” / 81

andeducationofyoungpeople,presentandfuture,whoareentrustedto

ourcare.”

TheTrust'sspecialcounselteam,theattorneysCaldwell, Hauptfuhrer andFreedman, didn’tfindanythingseriously wrongwithitsclient’s actions. LepleythenaskedformerPennsylvania attorneygeneralFredSpeakerfor hisimprimatur.Lepleydidn’tdancearoundthetopic.“Mr.Caldwell of Caldwell &KearnsandMessrs.Hauptfuhrer andFreedmanofDechert,

Price&Rhoads tellmethatwhilerepresenting theboardinthismatter

theyhavebeenconvinced thereisnoevidence ofanyviolationofconflict ofintereststatutesoranyotherlaws,”Lepley wroteSpeaker. “Ofcourse,we valuetheiropinion,butareconscious ofthefactthatit comesfromlegal counselandpaidasadvocates.”

TheTrustpresented FredSpeaker publicly asanindependent fact-finder

whowoulddohisanalysis probono.ButtheHarrisburg Republican insider hadlongties—orat leasta tangentialconnection—to theTrust.Hehad servedasspecialassistanttoformergovernor Scranton, whointhe1960s

hadagreed todivert$50million inorphanfundstothemedical center. Speaker alsowasthestate’s attorney general inlate1970 whenJudge Swope modifiedMiltonandKitty’sDeed,allowingforTrustlandsalesandthe electionofGilNuricktotheTrustboard. Speaker responded toLepley withinweeks,withmorethan40pagesof

analysis. Hetooabsolved theTrustofwrongdoing. Regarding theconstructioncontract tothefirmowned byWilliam Alexander, Speaker noted: “Mr. Alexander wasnotamember oftheBuilding Committee andhedidnot

participate in itsdeliberations. Inaddition,whentherecommendation of theBuilding Committee waspresented totheentireBoard,Mr.Alexander leftthemeetinganddidnotparticipate ineitherthediscussion orthevote.” Speaker notedthatRodPera,theheadoftheTrust,didn’tparticipate in discussions orvoteonhiscompensation. AndPerahadpaidthedirectors’ feesfromHershey Entertainment andHersheyFoodsbacktotheMcNees Wallace firm.

Attorneys GilNurick andJackRiggs hadprepared thelegaldocuments leading totheweakened conflicts provision inlate1970. Speaker observed thattheredidn’t seemtobeanything illegal aboutthemodifications. Oddly, FredSpeaker wouldhavebeen—or shouldhavebeen—informed ofthemat

thetimein1970 asattorney general. Buthedidnotshedadditional lighton

whattranspired withthemodifications, oronhisinvolvement inthemmore

thantwodecades earlier. Trustpolicies toavoidillegal conflicts metthe

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standards ofPennsylvania law,Speaker concluded. ButSpeaker alsocheered WilliamLepley’s proposed reformstocleansetheTrustofthescandal. LepleysoldthefindingstothepublicinanApril7,1994pressrelease.

“Armed withtheindependent finding ofaformerstateattorney general

aswellastheopinionofitsownlegalcounselthatitsexistingpractices to controlconflicts ofinterestwerelegallyproper,theMiltonHershey School boardofmanagersWednesday nightadoptedtougherethicalstandards andotherprocedures tochangethewaytheschoolisgoverned,” theTrust assertedinthefirstparagraph oftherelease. Thecleansing oftheslatewouldinvolve arangeofchanges andreforms: WilliamAlexander andRodPerawouldresignasTrustboardmembers; boardtermswouldbelimitedto 10years,tobringnewperspectives into theorganization; andnewboardmembers wouldbeappointed whowould haveskillsthatpertainedtotheschool’s child-care mission. TheTrustalso

would adoptanewconflicts-of-interest policy. Whenthedustofthenewsstoriessettled, though, Alexander didn't

resignhisTrustboardseat.Inacomplex transaction, hesoldhisconstructionbusinesstoinsidersandretainedtheposition—without theconstructionbusiness,henowcomplied withthenewconflicts-of-interest policy. Hisformercompany retainedconstruction contracts worthtensofmillions ofdollarswiththeTrustformanyyears.Peraresigned hisTrustboardseat, butretainedhisconnection totheTrustthroughTrust-owned entities. WherewasAttorney GeneralErniePreateinallthis?AshardasPreate triedtoextricatehimselffromthemushrooming videopokerscandal,he couldn'tdoit.TheFBIopenedOperationPokerhand, andinApril1994, thesamemonthFredSpeakerreleasedhisreportontheTrust,thePennsylvania CrimeCommission published the204-page Investigation Intothe Conduct ofLackawanna CountyDistrictAttorney/Attorney General Ernest PreateJr.

FearfulofthePreatescandal,theGOPsupportedmoderatecongress-

manTomRidgeofErieinthegubernatorial primary thatspring.Preate

lashedoutthatRidgewouldbebeholden totheRepublican bossesandhe doggedly campaigned alongthethousandsofmilesofstateroads.“Ernie PreateisafighterandI'llbeafighterforyou.PeoplelikethefactthatErnie

Preate cantakeapunchandcomeoffthefloor. I’mlikeRocky,” hesaidona

campaign stopinLancaster. PreatelosttheMayprimarytoRidge,342,913

votesto285,220. Ridge wonthegeneral election inthefall.

TheU.S.Attorney’s OfficesentPreatea targetletterin early1995.He

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resigned asattorney general andpleaded guiltytomailfraud.U.S.District

JudgeSylviaRambosentenced himto 14monthsinfederalprison.Preate hadspokenofhisremorseinJudgeRambo’s courtroom, buthelatertold JohnM.BaerofthePhiladelphia DailyNews, “Icandofederalprisonstandingonmyhead.I'ma strongguy.I’mnotafraidtodotime.I didmytime

inhellinVietnam.” Governor Ridge chose topcampaign aideTomCorbett tofillPreate’s unexpired term.Corbett agreed nottoseekelection asattorneygeneral in1996, buttheinterim appointment exposed himtostatewide

voters,helpinghimtoachieve successful runsforattorneygeneralin2004 and2008,aswellasthegovernorship in2010.

WhileErniePreatewasundergoing hisdisgraceful fall,Trustadvisorsweremakingrecommendations onhowtomodernize theHershey

School’s vocational program.Delaysdraggedintomonthsandyears.The Trustrestateditscommitment tovocational education inaSeptember 1996 non-binding boardresolution. Butitsoundedlikemediaspin.

“They wererecruiting kidsintothecollege path,”alumnus JoeBerningnoted,“buttheyweren't college material.” Hershey School graduates dropped outofcollege and“hadnothing tofallbackon.Bythemid-1990s,

mostofuswereoftheopinionthattherehadtobeseriouschange, butthere wasa difference of[opinion on]howthatwouldhappen.Therewereconstantmeetings overandoveragain.Wewerejerkedaroundforfiveyears. Theystalledusoffallthoseyears.Everybody thinkswewerevigilantes and abunchofyahoos.Thatwasn’tso.Thereasonwecouldn’t accomplish anythingwasthatweweretoorespectful.”

FOLLOWING THE SHARP RECESSION intheearly1990s, partsofAmerica were gripped inextreme poverty. Average family income fellandthenation’s childpoverty ratesclimbed. Morethan10million children livedmiserably. Meanwhile, theenrollment attheultra-rich Hershey School fellto between 1,000 and1,100 students—far shortofthe1,600-student goalsetby theTrustinits1963cy-prés petition.Thenumberonlypartlytoldthestory

ofunder-enrollment. Manydays,theHershey School lodged andeducated

fewerthan1,000studentsbecausekidswoulddropoutduringtheschool yearandwouldn'tbeimmediately replaced withnewstudents.Sometimes therecouldbeasfewas800to900students. Andnotonlywasthenumberpathetically low,buttheTrustseemedto

beskimming theranksofeligible poorkidsforthebestandbrightest ones foradmission.

84/ THE CHOCOLATE TRUST

Teachers andhouseparents complained toactivistalumniofstudents whoenrolled withhighIQs,hadtwoparentsandtwocars—not thesortof needykidsthealumnibelieved theTrustshouldhelp.“Ourbigthing,”said formeralumniassociation president JohnMardula, aWashington attorney, “wasthattheyshouldbehelpingthe‘mostaloneandthemostneedy’ kids.” Whenthealumnispokewiththeschooladministration, theygotvague

answers.

Aschocolate profitspouredintoMiltonandKitty’s orphans’ fundfaster thantheTrustcouldawardnewconstruction contractsto centralize the school’s campus,theHersheySchool’s incomeaccountsurplusswelled to morethan$500million.Eventually, thesurpluswouldclimbto 10times theschool’s annualoperating budget.Trustofficials beganholding“stake-

holder” meetings totalkaboutwhattodowithit.Alumni leaders, including somenewones,wereskeptical. TheTrusthadn'tlistened tothemforyears andseemed stilltobedoingprettymuchwhatitwanted. Inearly1999, theTrustfiledanewcy-prés petition. Asithadin1963, the Trustsoughtagaintodivertorphans’ fundsintoanewcharitable purpose. Theirargumentwasthesame:thatithadtoomanyassetsandtherewere

toofewimpoverished kidsinAmerica tocareforinHershey—even though millions ofchildren, boysandgirlsofallraces, werenoweligible foradmis-

sion.Thistime,theTrustproposeddivertingtensofmillionsofdollars— hundreds ofmillions ofdollarsovertime—into apoverty research centerfor teachers. TheCatherine Hershey InstituteforLearning andDevelopment, theTrusttoldtheOrphans’ Court,“willsupporttheSchool’s effortstobe a modelofbestpracticeinresidential education, anditwillbethemechanismthroughwhichtheSchoolservesthoseneedychildrenwhocannotbe serveddirectlyasenrolledstudentsoftheSchool.” Anexecutive directoroftheproposed institutewouldreporttoWilliam

Lepley. AboutathirdoftheTrust’s operating budget—money thatotherwiseshould directly fundapoorchild’s education andupbringing, based onthe1909 Deed—would fundtheresearch center. Initially, thiswould be $20million.Two-thirds oftheTrust’s operating budgetwouldfundthelegacyHershey School, whichwouldremainthecharity's“polestar.” Justasit

haddonebackin1963, theTrustplanned tomodernize theHershey School campus withafloodofnewconstruction—coming afteraboutadecade of rapidconstruction tocentralize thecampusatanestimatedcostof$300 million.Whatmorecouldit possiblyconstruct? TheTrustsaidit would putanadditional $227millionintonewstudenthomes,a middleschool,

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anelementary school, aperformance gym,alearning resource centerand

avisualartscenter. Thenewcy-préspetitionsoughtto establishan enrollment targetof 1,500kidsattheHershey Schoolby2007,insistingthatthiswasthemaxi-

mumnumber thatcouldfitintoHershey’s centralized campus. “The school, withitsneighborhoods ofstudenthomesandsurrogatefamilies,school buildings, recreational facilities, andhealthandothersupportservices, is a community wherechildrenfromdisadvantaged circumstances canbe nurturedandeducated,” theTrusttoldtheOrphans’Court.“Expansion

beyond 1,500 students wouldundermine theSchool’s traditional senseof community because itwould require theconstruction ofadditional school andsupportbuildings physically separated fromtheexistingcampus.” In an interview withmemorethana decadelater,Lepleysaidthathealso

feared theruraltown’s reaction toenrolling morethan1,500 students, as manyofthestudents nowcamefromPhiladelphia andothercities.

Thecenturies-old cy-présdoctrinehadn’tchanged.Anewcharitable missionfortheorphans’fundstillhadtobe“asnearaspossible” tothe charitablemissionspelledoutin MiltonandKitty’snow-mangled 1909

Deed.TheTrusthadargued,andthecourtandattorneygeneralhad accepted intheearly1960s, theideathatthereweretoofewwhiteboy orphansinAmerica toenrollattheHershey School, andthatfinancial

assetshadtobedivertedintothemedicalcenter.TheTrustmodified the Deedinthemid-1970s toadmitgirls,blackboysandpoorkidsofsingleor divorcedparents,thusopeningadmission tomanymillionsofkids.Still theTrustcouldn'tfindenoughofthemtomeetitstargetedenrollment. In its1999filing,theTrusttoldtheOrphans’ Courtthattheresearch institute qualifiedunderthecy-présdoctrinebecauseit was“consistent withMr. Hershey's approach tobusiness andtocharitytonotonlyattempttocreate

a schooltoaidneedychildren, buttoalsoapplyinnovative thinking....” [Italicsadded.]

Alumniprivatelyslammedthe CatherineHersheyInstituteas an ego-driven conceptdesigned toboostWilliamLepley’s nationalreputation

witheducators. Theyvowed tofightiteverystepoftheway.Theresearch

instituteseemedtobe“anothermonument topeopleinpower,” saidJohn Mardula, whowasthepresident ofthealumniassociation atthetime.The alumniaskedquestionsaboutit.Theywantedtohavea wayto trackthe institute’s performance. AlltheTrustwouldtellthemwasthatit would bebasedinDerryTownship, theoneprovision inMiltonandKitty’s1909

86/ THE CHOCOLATE TRUST

DeedthattheTrustdogmatically clungto.“What[Lepley] proposed todo wasapublicfunction,” Mardulasaid.“ItwasnotthefunctionoftheTrust.”

OVER TIME, anewgeneration ofalumni association leaders replaced theearly

blue-collar activists, bringingsophistication andresources tothereform movement.

Chicago attorney andalumnus JohnHalbleib gotanadvance copyofthe

cy-pres petitionin early1999because hehadjustbeenelectedtothealumni association board.Halbleib threwtheunopened petitionintohistravelbag, andreadit ontheplaneridetoHarrisburg. Hisfirstthoughtuponreadingthedocument wasthatthenewinstitutewould“cannibalize theTrust. Onceyouhaveit, it’salwaysthere.IfyouaddthistotheTrust,it’sonlya

matter oftimeandtheytellthecourttherearenotenough orphans orneedy children orwhatever.” Theorphanage would betotally transformed intoa

grant-making research institutewithlittledirectcontactwithpoorkids. ThiswaspersonalforHalbleib.Hisfatherhadlosthis Harrisburg fuel-delivery business duringaneconomic downturninthelate1950s, and

itwasprettymuchdownhill forthefamily afterthat.Hepacked himself andhisyoungfamilyforthestifling heatofAlbuquerque, NewMexico,

wherehegotajobasa motorcycle copin theNewMexicosunandthen ate,drankandsmokedhimselftodeath.Hediedin 1963,leavinga widow

witheightchildren andababyontheway. TheHalbleib kidsdrifted backto Harrisburg, andfiveofthemenrolled intheHershey School: John,James, J.Michael, Robert andDorothy. “There wasnodoubtyoucouldbeachild thereandyouweretaughtvaluesandself-worth,” saidJohn,whoenrolled in 1966.Helivedin theRollingGreenandCanalview farms.Heplayed footballandran track.“ThefastestwhiteguyI evermet,’JoeBerning

recalled. Halbleib graduated in1971 andwenttoLebanon Valley College as anundergraduate, andthenontoNorthwestern University inIllinois for

MBAandlawdegrees. Hehadresearched theTrust’s1963cy-prés petition asalawstudentandbelieved thatJudgeSwope’s decision wasflawed, buthis lawprofessors didn’tseemtocare.

JohnHalbleib hostedmini-reunions forHershey alumniathishome southofChicago. Heinvited William Lepley toattend, andtheygotalong.

Halbleib wonanalumniboardseatinlate1998; somebelieved thathemight bea Lepleymole—a Trustplantin thealumniassociation. ButHalbleib

proposed totheprobonocommittee athisChicago firm,Mayer Brown, thatherepresentthealumniassociation tofightthecy-prés petition.The

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partners agreed. Forthefirsttime,theTrustwould faceasophisticated legal adversary withfinancial resources. Halbleibconsultedthefirm’strustandcharitablelawattorneys.He requested information fromtheOfficeofAttorneyGeneralandfromthe

Trustitself. Hewasshocked atwhatlittleinformation wasavailable tohim.

Oneofthemostreliablesourcesofinformation wasJosephBerning,who hadbeencollecting books,goingthroughcourtrecordsandmakingcontactsoncampus.AndBerninghadabuddynamedCraigStark.Starkhad

beenfascinated withtheHershey storysincehewasaboy,andhadamassed ahugetroveofinformation. JoecalledStark,withgreatadmiration, “a groundhog inthecourthouse.” Halbleib droveJoeBerningtoOfficeMaxtobuyhisfirstcomputer so

thathecouldemailinformation. HegaveBerning stacks ofFedEx slipsand empty package containers. Berning packed documents, called FedEx tohis ruralhomeandshipped thepackages offtoChicago. Clerks atMayer Brown

scannedthedocuments andbooks,andreturnedthepackages viaFedEx. Halbleibalsodeveloped hisowntheorieson theTrust.Hecameto believethatMiltonandKittyHersheywerecreatinga “familytrust”and

nota“public charitable trust”withthe1909 Deed. Indenturing theorphan

boyswasMiltonHershey’s attempttoadoptthem,Halbleib thought.Milton Hersheyburiedtheindenturedboyswhodiedattheorphanage nearhis familyplotintheHershey Cemetery withKittyandhisparentsHenryand

Fanny. Halbleib believed theorphanboysburiedtheresupported hisview thatMilton andKittyconsidered theorphanboysaspartoftheHershey family, theirownsons.Halbleib hadtolearnmoreaboutthoseboys. Berning walked through thecemetery, gotthenamesandresearched thecircumstances oftheorphan boys’ deaths, storing theinformation inhis computer ina filetitled“Hershey RIP”—a forgotten history oftheHershey

Ifanything,itseemedtoconfirmthatthefarmscouldbe IndustrialSchool. inDecember 1918. dangerous places.CharlesH.Swartzdiedofinfluenza Aschoolbusran overThomasS.Myric,agenine,in 1929.RaymondR. froman appendectomy in Zettlemoyer, age12,diedfromcomplications

1931. Rheumatic fevertookthelifeof10-year-old AllanD.Tellet inFebruary1936. Several months later,tubercular meningitis got11-year-old Frank

J.Klein.FranklinKurtzNeiswender, age14,fellthroughahayholeinJuly 1938.JamesE. Tranumdrownedin the SwataraCreekin June1949.Ten-

year-old Leroy R.L.Wiestfellunderthewheels ofafarmwagon inAugust 1953. TheSwatara Creek claimed itssecond victiminMay1958 whenBen-

88/ THE CHOCOLATE TRUST

jaminWeaver drowned whilecrossing ittobuycigarettes. William F.Dayhoff,agenine,diedofaheartillnessinOctober 1958. Robert P.Curtiss, whohadcelebrated hisnineteenth birthday threemonths earlier, diedin November 1962ina fatalcarcrashwhileattending Hershey JuniorCollege. DAUPHIN COUNTY Orphans’ CourtJudgeWarrenMorganscheduled public

testimony forthecy-prés petition forJune3,1999. Among thosewhotestifiedwasPeterGurt,analumnus whoheaded theHershey School’s admissionsdepartment. Hetoldthejudgethatoneofthenation’s richestprivate charitiesforpoorchildren,aninstitutionthatnowhadbillionsofdollars inassets,couldbea difficult sellforpoorparents.“We...refer totheMilton HersheySchoolasthebest-kept secretinAmerica,” Gurttestified. “Often-

timesthereisashamefromenrolling achildatMiltonHershey. Parents mayfeeltheyarelessthanadequate becausetheyhavebeenunabletoprovidethecarethatwecanprovide,andsoitisa challenge forustotryand workwiththefamilies toeliminate thatmindsetandhelpthemunderstand thatweareproviding anopportunity.”

Gurtacknowledged thatHershey’s child-care program diverged fromthe

now-mainstream viewthatagencies andinstitutions shoulddoalltheycould tokeepfamilies intactandnotseparatekidsfromparents.“Mostfolks,” he toldthejudge,“aretrainedinafamily-preservation model,meaning let’sdo

whatwecantokeepfamilies together. So,evenintryingtonetwork with otherprofessionals, weneedtohelpalleviate thatperception thatsomehow MiltonHershey[School]isdetrimentalto a family-preservation model.”

PeterGurtofferednodatatoshowthattheHershey Schoolmodelproducedmoreeffective outcomesthanotherinstitutions,buthe notedto

Judge Morgan thatthe13-person admissions department hadapproval to addseven newemployees whowould worktoattaintheplanned-for 1,500 students—which meantitcouldmoreheavily markettheinstitution topoor

parents.

KatiHaycock, directoroftheEducation Trust,testified toJudgeMorgan

thatherWashington organization wasdoingwhattheTrustproposed to

dowitha researchinstitute—only Hershey’s wouldbeona granderscale becauseofitschocolate profits.“Weareavery,verysmallorganization,” withastaffofaboutnineteen, Haycock stated.“Moreover, ourresearch staff,

ifyoucancallitthat,isoneveryproductive dataanalyst, andatbestonecan onlyunderstand inrathersimple andsuperficial waysthingsthatweneed toknowmuchmoreclearly.”

“ORPHAN ARMY” / 89

Shecontinued: “What wearetalking about, asIunderstand it,isnotthe kindofresearch thatuniversities do,which isreally mostly aboutprofessors researching thequestionsthatareofinteresttothemandthenreporting theirfindingsin articlesthateducators areincapable ofreading.It really takesthequestionsthatteachersandprincipalshaverightnowandtries

tomakea connection withtheresearch thatisoutthere,tobringthetwo together.” Theproposed research institute wouldn't bea“university extension,”

WilliamLepley testified. “Ttisgoingtobegettingintothehandsofteachers andprincipals whatarethebestpractices aboutcurriculum, or [what]the bestcontentstrategyistellingus,thewholebodyofresearch unfolding how

children learn.... Wearegoing totakeaverypractical approach.”

TheTrustalwaysseemedto win.It hadthedeepestpocketsandthe bestlawyers. Ithadthebestpoliticalconnections. Buttimeshadchanged. Attorney GeneralMikeFisher,whenitcametimetoofferhisofficial opin-

ion,rejected theideaofdiverting fundsintoaresearch institute. TheOffice ofAttorney General’s courtfiling,madeafterthepublictestimony and monthsofalumniprotests,statedtheTrusthas“notsustainedtheburden ofprovingitisimpossible orimpractical toexpandtheSchool’s enrollment andfacilities toservemorestudentsinthefuture.” OnDecember 7,1999,JudgeMorganalsorejectedLepley’s proposed

research institute. Hedescribed theinstitute’s planned functions as“con-

ductingresearch onemerging trends...monitoring legislative activities and publicpolicyatthefederallevel...in-service trainingprograms...convening thoughtleaders...influencing government policiesaffecting disadvantaged

children...designing newschools...developing programs...utilizing MHS fundsasseedmoney.” Theproposed institute,Morganwrote,“doesnotcomeclosetoapprox-

imating thedominant intentoftheHersheys,” adding, “anyreading ofthe DeedofTrustmustconvince onethattheHersheys hadinmindthattheirs would beadirectgifttothechildwithobservable results.”

MORE ALUMNI nowgravitated tothereformcause.Oneofthemostpassionate wasF.Frederic “Ric”Fouad.Richadnorecollection ofhisfather,whomhe lostattheageoftwo.Duringa familyvisittoBaghdad in 1963,hisfather

waspicked upbytheIraqipolice inthemidstofaBaathist coup,thenshot andkilled.Ricandhissisterlivedwiththeirmentallyunstablemotherin

NewYork City, firstintheBronx andlaterinGreenwich Village. Authorities

90/ THE CHOCOLATE TRUST

placed hissisterinalong-term foster home. Ricbounced around. Alone for hoursatatime,hewenttoschool disheveled anddirty.Hissisterresearched

privateschools andfoundtheHershey orphanage. Shetoldtheirmotherthat Ricshouldgo. Ricenrolledasan 11-year-old in 1972.HelivedintheOakleigh group

homewith15otherboys.Duringthefirstweek,anolderboybeathim

whenhedidn’tfollowthehouseshowering rules:olderboysfirstandthen youngerboys.Hefearedhishouseparents. Overtheyears,theTrusthad recruited unemployed couples fromthetownofVandergrift andotherpoor Pennsylvania coalandsteeltowns.“Iwatched a housefather takeakidinthe bathroomandbeathisheadintothewall.Wethoughthewouldkillhim,” saysFouad.“Itwasahorrifying placestaffedbypeoplewhocouldhavebeen prisonguards.”

Aneighth-grader taughtRicwrestling moves inthebasement, andhe triedoutfortheteaminseventh grade. Hewasthelastkidnotcut.“Imade

theteamandgotawork-out uniform,” Fouadrecalled. “Making thatteam wasthefirsttimein mylifeI hadexperienced success.” Heate,breathed andsleptwrestling. Hewrestled toanundefeated seasonasafreshman. He

wrestled varsity asasophomore withawicked fireman’s carrytake-down. Hewould holdtheschool’s take-down record foryears. Theteenaged RicmetJoeBerning inthoseyears.Berning hadgraduatedina fewyearsearlier,andwashangingdrywalloncommercial projectsaroundHershey. Hewasalsoknownforridinga choppertofootball games.Berning, theformerheavyweight wrestler, volunteered tohelpcoach

theHershey School bigguys.During onebarn-burner ofamatchbetween Hershey andLower Dauphin High,Fouad’s opponent keptbacking away fromRictodefendhimselfagainstthefireman’s carry.Berningthoughtthe refereewasbiasedandwasallowing thekidtostall.“Iwasscreaming andI

lostitandIcalled himadickwithears,” Berning remembered. Thereferee whistled Fouad’s matchdeadandkicked Joeoutofthegym.“Thadtowait inthefucking bus,”herecalled. Fouad talkedaboutthatwrestling match

30yearslaterinaninterview inhisUpperWestSideapartment overlooking Columbus CircleandCentralPark.Herewasthisbigguyscreaming atthe

ref.ThatwasJoe.Hewasalways there. Fouad’s confidence grewashewrestled ontheHershey school teamand

startedgettinggoodgrades.Hecomplained aboutthechores,andespecially abouttendingthecows.Butsodidtheotherboys.Helearnedhowtoovercomehisfearofheightsbyclimbing thesiloladderonthefarm.Hemoved

“ORPHAN ARMY” / 91

around todifferent farms: Bonniemead, Meadowbrook, Rosemont. Hershey School students believed theyweresecond-class citizens inHershey, “butwe

hadswagger amongourselves,” Ricnoted.“Itwasn’t Choate-Rosemary Hall swagger. Itwasinstitutional pride.”

Eveninthelate1970s, Fouadbelieved, theHershey School wasdriftingawayfromitsmission ofhelping orphansandveryneedychildren. “You smelled it.Theyweretryingtochange direction.” Theschool didn't

wanttocareforhardcoredisadvantaged kids.Studentselectedhimpresidentforhissenioryear.Hesatona committee developing a newpolicy toexpelstudentswhofailedacademically. Whatkindoforphanage, Ric

thought, expelsorphansforbadgrades? Heopposed suchapolicy,and askedadministrators iftheywouldkicktheirchildren outoftheirhomes iftheygotF's. Fouadlobbied toallowstudentstogohometobewiththeirfamilies for

Thanksgiving. Students thenstillhadtostayattheHershey School during theThanksgiving weekend, astheyhadfordecades. Healsoactedonaconcernforthestudents’ medicalcare.EventhoughtheTrusthadfinanced the HersheyMedicalCenter,theschooldidnotprovidespecialized medical careforitsstudentsorathletes.Ric—who hadlostonlyonematchinhis

senioryearandwhosomebelieved couldbecompetitive forastatetitle inhisweight class—dropped outofthetournament because ofshoulder injuries, endinghishighschoolwrestling career.Buttheschooldidn'tsend himtoaspecialist tocheckhisshoulders. Atabanquetinlatespring,hemet anorthopedic doctorwhoagreedtolookathimforfree.Thephysician told

Ricthathehadseparated bothshoulders andneeded surgery. Butultra-rich Hershey Schooldidnotprovidemoneyforspecialized surgery. Fouadgraduated inthelastall-boyclassin 1980.HeattendedFranklin andMarshallCollege forayearandfinishedattheUniversity ofPennsyl-

vania.Hewrestled atPenn,butwasneverthesamebecause ofhisshoulders.NewYorkUniversity LawSchool awarded himameritscholarship. RiclearnedtospeakJapanese andpracticed lawinJapan.Hehadhisown international lawpracticebythelate1990s,specializing incomplex com-

mercial litigation. Through theyears, Fouad followed developments attheHershey School. In1999, hemetJoeBerning, JohnHalbleib andotheralumni leaders ataBob Evans restaurant nearHershey totalkabouthowhecouldhelp.Berning,

analumniboardmember, vividlyrecalledRicasa tenacious wrestler. He believed Fouadcouldbringthesametoughattitudetothereformmove-

92/ THE CHOCOLATE TRUST

ment.“Ivouched forRic,”herecalled, “because Iwasreallyconnected tothe

hometown crowd.” Fouadwasn'tasconcerned aboutvocational education asJoseph Berningandtheotherearlyreformers. Hefocusedonchildcare.Hetoldthe

alumni thattheHershey School wasaccepting students wellabove thefederalpoverty levels andthattheTrusthadtorefocus onmoreneedychil-

dren:foster-care kids,wardsofthecourt,bonafideorphansandothers.

Ifitwasn’t already, theHershey School wasbeingtransformed intoaprep school foronlymoderately disadvantaged kids.Fouad laterobtained from adisgruntled employee theIndependent School Management’s marketing

planfromthelate1980s, whichconfirmed hissuspicions thattheHershey Schoolwasdeliberately upscaling itsimageandadmissions. Asforthose kidswhoenrolledandneededspecialservices, theHersheySchooldidn’t

seemtoknowwhatitwasdoing. “When youtookaway thefarms, youtook awaythebestpartoftheprogram andyoulefttheworstpart,thegroup

homes,” headded. FouadrodeAmtrakbetween NewYorkandHarrisburg. HestayedovernightattheHotelHershey, oratthehomeofa retiredadministrator. Joe

Berning wouldpickupFouadatthetrainstation. RicFouadbrought an

in-your-face activism andenergytothemovement. AtaTrusteventduring homecoming, RicdistributedflyersopposingtheclosingofSeniorHall. MiltonHershey hadconstructed SeniorHallona hilloutsideHershey inthe 1930s. Generations oforphanboyshadbeeneducated there.Fouadcalled

it “ourJerusalem.” NowtheTrustwastalkingaboutclosing it.Alumni believed theTrustmightdemolish SeniorHallandconvert theproperty

intoa waterparkforHersheyPark. FouadrecruitedBerningtohelphim withtheflyers.TheNewYorkinternational lawyerandthePennsylvania

automechanic placed hundreds ofthemontablesintheSenior Hallgymnasium. Alumni andTrustofficials buzzed overit.“Ithought itwastimefor alittlevigilante activism,” Berning declared. “Iwasgladitcame.”

JoeBerningandRicFouadattendeda packedcommunity meetingin theHershey Department Storeatwhichaconsultant talkedaboutredevel-

opingdowntown Hershey withTrustland.Someone fromthecommunity spotted Berning, Fouadandotheralumnithere,andsaidtheinformation

didn’tconcernthemortheschool.Everyone laughed. Fouadstoodupand

toldthecrowd thatitwasn’t funny. Thetownbelieved Trustlandwastheir land,Berning noted.Butitwasn’t theirland.Itwastheschool’s land.Why wouldn't thealumnibepartofthediscussion astowhattodowiththe

“ORPHAN ARMY” / 93

Trustland?“It’s likeyourneighbor coming intoyourbasement andtelling youhowtorenovate yourhouse,” Berning argued. “It’salways beenour viewthatwe'repartofthecommunity. Youcan’tseparatethedirtyorphans fromthetown.” |

JUST ASTHE ALUMNI ASSOCIATION sought topressfordeeperreforms after theirapparent victorywithErniePreatein1993,theassociation nowwant-

edtopursuestructural reforms afterJudgeMorgan rejected thecy-pres petitionattempting tocreatea separateresearchinstituteonlearningand development.

JohnHalbleib’s firm,Mayer Brown, agreed tolethimcontinue torepresentthealumni probonoafterthealumni cy-preés victory. InJanuary 2000, Halbleib senttheTrusta 61-page document drafted intheformofacourt

petition.“There hasbeenaconsistent patternofreduced benefits tothebeneficiaries oftheOrphans’ Trust,”hewrote,“adistancing fromthealumni

oftheSchool, higheradmission standards thanarerequired bytheDeed ofTrust,anddecisions thatbenefit thebusiness interests ofcounsel tothe Board andcertain keymembers oftheBoard ofManagers, ratherthanthe

orphanbeneficiaries.” TheTrust,realizingitfaceda broaderbattlewiththealumniassociation,retainedthePittsburgh lawfirmofKirkpatrick &Lockharttoinves-

tigatethealumniclaims, repeating itstacticfrom1994whenitretained

thespecialcounselofThomasCaldwell, RobertFreedmanandGeorge Hauptfuhrer tocleanseitselfofthealumniclaimsofTrustmisbehavior. TheKirkpatrick &Lockhartattorneysspokewith70teachers,adminis-

tratorsandTrustleaders. Theyreadthousands ofpagesofdocuments. No newinformation cameoutofthe“Findings andConclusions oftheSpecial Counsel.” RicFouad authored mostofthedocument inwhichthealumni flame-

torchedtheK&Lreportwith acritical response, titled“Bias,Flaw&Avoidance.”TheKirkpatrick &Lockhartattorneys considered onlywhetherthe actionsoftheTrustboardwerelegal.Thequestionpursuedbytheattorneys,thealumnidocumentdeclared,shouldhavebeenwhatwouldbe bestforat-riskchildren.TheK&Lreportclaimedtobean “Independent Evaluation ofFiduciary Compliance.” ButthealumniclaimedthatDick

Thornburgh, theformer U.S.Attorney andtwo-time Pennsylvania governor

whosenameappeared ontheK&Lreport,hadalong-standing relationship

withtheTrust.Thornburgh hadheldagubernatorial inaugural partyat

94/ THE CHOCOLATE TRUST

Founder's Hall.Theparty’sinclusionofalcoholic beverages wentagainst theschool’s strictprohibition of“thepresence ofalcoholanywhere onthe school’s campusunderanycircumstances—a rulesosacrosanct thateven alumnibanquetsarealcohol-free, asarehomecoming tailgateparties.So wellunderstood isthisrulebytheschool’s children thatoneboycalledonto performthetaskaskedwhether theymightgetintroubleforservingalcohol evenunderdirectinstructions,” thealumniwrote.Theboywasimmediately dismissed andsentbacktohisstudenthomeforhavingdaredtomention thetopic,according to“Bias,Flaw&Avoidance.”

People magazine profiled JohnHalbleib andwhatthemagazine dubbed

“theOrphanArmy”inJanuary2001.Afewmonthslater,alumnicriticized WilliamLepleyduringa ribboncuttingforhiscentralized campus,usuallyconsidered amonghiscrowningachievements. JosephBerningand

thealumnialsopublicized instances ofchild-on-child sexual abuseinthe school’s grouphomes. Alumni believed thatthepolicy ofhousing children

withsignificant agedifferences resultedintheolderboyssexually abusing younger orweaker boys.Lepley responded bydistributing amemotoschool employees andaskingforareviewbyoutsideexpertsandtheschool’s staff. InOctober 2001,theparentsofa 10-year-old boyfromSchuylkill Coun-

tyfiledalawsuit claiming abuseandnegligence. TheboylivedintheHarris student home. Whilethere,according tothelawsuit, “beginning inSeptem-

ber1999andextending intoFebruary 2001,” anotherboyintheHarrisstudenthome“forcibly andwithoutconsentsexually assaulted[theplaintiff]

intheshower...during bathing time.” Thesuitclaimed theHershey School hadrelocated thealleged abuser to

theHarrishomeaftermisconduct inapriorstudenthome.Theschool,the suitfurtherclaimed, hadfailedtohaveinplace,implement orpractice “proceduresforhousingandsupervising children withahistoryofmisconduct.” DavidBarash,aformerU.S.Attorney fortheMiddleDistrictofPenn-

sylvania, participated ina “Blue Ribbon TaskForce” thatoffered safety recommendations. Someofthesameobservations madebysocialservice

expertsintheindependent reviewfromthelate1950sappeared inthenew report.Amongthenewreport’srecommendations: TheHersheySchool shouldprofessionalize itsadmissions department. It shouldcollectmore information onstudents.Newstudentsshouldvisitthecampusformore thanoneday.A counselor orpsychologist shouldbeassigned toeachnew student,andthereshouldbemorecommunication between parentsandthe Hershey staff.Overcrowding hadtobereduced. Grouphomesshouldhave

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nomorethaneightchildren, andchildren inahomeshouldbenomore thanthreeyearsapartin age.

InDecember 2001,about30alumnimetwithofficials fromtheOffice of Attorney General atStrawberry Square. MarkPacella, theOAGofficial who headedthecharitable section, toldthemtoexpectbroad,sweeping reforms.

Buttheyneeded tobepatient. Months later,inJuly, Attorney General Mike Fisher—now runningforgovernor—announced asweeping agreement to

reformtheTrustbybreaking apartitsinterconnected complex ofboardsfor HersheyChocolate, theHersheyTrustCompany andHersheyEntertainment&ResortCompany.

Fisher’s agreement alsoattempted torefocus theHershey School’s missiononfinding andhelping moreneedy kids.Theagreement dictated maximumhousehold incomefornewHershey Schoolstudentsatnomorethan 150percentofthefederalpovertylevel.In2002,thatwas$22,530 forasin-

gleparentwithtwochildren. Thecutoff hadbeen250percent ofthepoverty level. TheHershey School alsohadtoconsider foradmission children with aminimumIQof80—the previous IQcut-offhadbeen90.Theinstitution hadtoadmitchildrenwhohadfallenbehindintheirclasses. TheHershey SchoolalsohadtousetheBlueRibbonTaskForcerecommendations asa

safety blueprint. Thereforms weretoofficially takeeffect onJune30,2003.

WILLIAM LEPLEY, nowlocked inalong-running warwiththealumni, agreed toMikeFisher’s reforms, butthendroppedabombshell: inordertodiver-

sifythecharity’s assets, theTrustwasnegotiating tosellHershey Chocolate.Fisher’s reform agreement wouldsevertheboardlinkage between the

Hershey entities—Hershey Chocolate andHershey Entertainment andeven theM.S.Hershey Foundation—and theTrustcouldnowberunmorelike anormalchild-care educational charitywithoutthetaciteconomic-developmentmission. Mainstream charitiesrarelyconcentrated theirassetsinonecompany

orindustry because ofthedangers ofanoverweighted portfolio. Economic

problems inanoverweighted company orindustrycouldleadtoa decline intheportfolio’s valueandspending power,depriving potentialbeneficiariesofcharitable services. Trustlawexpertsrecommended adiversified, or balanced, portfolio. Hershey Foodswouldhavetobesold. Lepley’s decisiongrabbedheadlines intheglobalizing candyindustry. Hershey Foodscontrolled morethan40percentoftheU.S.chocolate marketshare.Competitors jumpedtobid.AjointNestlé/Cadbury Schweppes

96/ THE CHOCOLATE TRUST

offervaluedthecompany at$10.5billion,andaWilliamWrigley Jr.Com-

panybidvalued itat$12.5 billion.

Asalewouldbea windfallfortheTrustandtheHersheySchool.But theproposedsalestunnedthecommunity’s residents, whofearedthata buyerwouldslashPennsylvania jobsandhollowouttheHersheyFoods headquarters. “Weknewitwouldbedifficult andperhapsa bloodbath with thewhite-collar employees,” saidformerHershey Chocolate CEORichard Zimmerman. “NestlédidnotneedtheHersheytechnicalcenter;Wrigley haditssalesforce.” Civicboostersasked:WhatwouldHershey bewithout Hershey Chocolate? Residents planted“DerailtheSale”signsintheirfront yards.TheTVnetworks cametoHershey totellthestory. Thealumniassociation joinedforceswiththecommunity leadersin opposing thesaleofHershey Foods,believing thatapoliticalalliancewith

thecommunity wouldultimately helpthemreformtheHershey School itself.Television newsstations captured images ofresidents withprotest

signsontheirlawns,andassembled forprotestgatherings. MikeFisher’s campaign washurtpolitically inthisRepublican bastionbyLepley’s timing onthesaleofthechocolate company. FishersoughttoblocktheHershey

Foods salethrough theDauphin County Orphans’ Court,anextraordinary intervention byanattorney general intotheday-to-day affairs oftheTrust.

Seeingthepublic’s outragethroughalmostdailystoriesonTVorthelocal newspapers, JudgeWarrenMorganagreedwithFisher. “TheAttorney Generalhassufficiently carriedhisburdenprovingthepotentialharmthathe

seekstoprevent, namely, theadverse economic andsocialimpactagainst thepublic interest ifasaleofHershey Foods Corporation takesplace, par-

ticularlyinitseffectonemployees oftheCorporation andthecommunity ofDerryTownship,” MorganwroteinhisSeptember 10,2002adjudication thatbegantheprocessofhaltingthesale.

TheOrphans’ Courthaddonenothingfordecades astheHershey

Schoolfailedtoheedits1963cy-prés agreement andenroll1,600kids,or efficiently spendtheorphanage assetsonpoorkids.Nowitproactively protectedthetown’s economic jewel,ownedbytheorphanage. JudgeMorgan

acknowledged thatMilton andKitty’s 1909DeedgavetheTrustboardthe power tosellHershey Foods. However, therule,Morgan chided theTrust, “isageneralrule,notanabsolute.” Childcareandtheconcerns oftheschoolgotpushedtothebackburner

asthecommunity lashedoutattheTrustoverjobs.“Thememorials ofa goodandgenerous manhavenotbeenwellserved byevents surrounding

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thislitigation,” Morgan saidinhisadjudication ofOctober 16,2002.“In

thismid-statearea,Hersheyiseverybody’s town;thereissharedpridein identifying withthatcommunity, itsindustryandtheSchool,allfoundedbyMiltonHershey. Respect forMiltonHershey demandsreconciliation

amongthoseinterests asessential toeffectively carrying outhisphilan-

thropicscheme.” Statelawmakers draftedlegislation protecting Hershey Foodsagainsta hostiletakeover orsurprisesale.Theproposed lawwouldrequiretheTrust togivenoticetotheattorney general atleast60daysbeforea sale—sufficient

timetoblockit.“Theultimate beneficiary ofacharitable trustinPennsyl-

vaniaisthepublic,” Fisher,theofficial protectoroftheTrust’s namedbeneficiaries—orphans andpoorkids—told theAssociated PressonOctober

23rd.“This legislation willensure thatacharitable trustwhichisconsideringselling abusiness aspartofitsfiduciary dutieswillconsider how a sale willaffect theworkers atthebusiness andthesurrounding community.” Philadelphia charitable lawattorneyDonaldW.Kramerwarned,“This isbadlegislation thatappearstobequicklyproposedto dealwitha sin-

gletransaction without considering theimpactontherestoftheworld. Itwouldbeunfortunate topassbroadgeneral legislation without public hearings.” Statelawmakers diditanyway. Themeasure passedintheSenate, 48-1. TheHousealsopassedit,andGovernor MarkSchweiker signedit.

MIKE FISHER CARRIED rock-ribbed-Republican DauphinCountyin the November election, butEdRendell, thepopulist former mayor ofPhiladelphia,trounced himstatewide, 53.4percentto44.4percent. Withtheelection

over, Fisher andMorgan dealtharshly withLepley andtherecalcitrant Trust boardovertheattempted chocolate company sale.Fisherannounced on

November 14ththat10of17boardmembers whohadvotedtosellHershey Foodswouldnotremain.Headdedthattheboardchanges wouldendthe uncertainty attheTrust“without thedelaythatisinherentwithlitigation.”

Many viewed itasaRepublican takeover ofthemulti-billion-dollar pri-

vateTrust.TheDauphinCountyCourtswerecontrolled byRepublicans,

andFisherwasa Republican. LeRoy Zimmerman, oneofthestate’s top

Republican powerbrokersandaformertwo-termattorneygeneral, joined

theTrustboardcontrolling Hershey Foods, Hershey Entertainment, thousandsofacresofland,andhundredsofmillions ofdollarsinsurplusorphan funds.

98/ THE CHOCOLATE TRUST

Otherpolitically connected civicboostersalsojoinedtheTrustboard: formerPatriot-News publisher Raymond L.Gover, Hershey Chocolate CEO RichardH.Lenny,andPennsylvania-American WaterCompany attorney VelmaRedmond. Noneofthem—not Zimmerman, Gover,Lennyor Redmond—was astate ornationalexpertoneducation, poverty, childcareor fostercare,althoughtheyhadnear-total powerovertheHershey Schoolas members oftheBoardofManagers. Therewerenoalumniactivists appoint-

edtotheboard. ThenewTrustboarddesignated alumnus Anthony Colistra aschair-

man.A1959graduate, Colistrahada doctorate in education fromTemple University; hehadservedaspresident ofthealumniassociation, andhad retiredassuperintendent of a Harrisburg-area suburbanschooldistrict.

Lepley hadtapped himfortheTrustboardinthemid-1990s. Activist alumnihadtakentocalling him“phony Tony.” ThereconstitutedTrustboardhiredalumnusJohnO’Brienas interim

president, replacing Lepley. O’Brien hadnoexperience asan educator, or runninga school.HewasthefirstHomeBoyadmittedtoPrinceton, and

nowacorporate consultant whospecialized in“organizational change leadership,” according tohisrésumé. Hehadbeena keynote speaker, seminar

leaderandperformance coachformanagers andexecutives. Othergood-paying andinfluential schooljobswentto alumniasWilliamLepley’s educatorsand administrators quit or retired—aformof

alumnipatronage aimedatneutralizing alumnicritics.PeterGurthad

beendirectorofadmissions, butleftunderLepley. O’Brien rehiredhimas vicepresident ofadministration. Gurt,a popularguywithalumni,gradu-

atedfromtheHershey School in1985. Theschool hiredNickNissley, 1984 graduate, aschieflearning officer anddirector oforganizational effectiveness.Theinstitution hiredRobert Fehrsasheadofthemiddle school. He’d

graduatedin 1963.RalphCarfagno, a 1973graduate,becamedirectorof graduate services. MikeWeller, a 1966graduate, becamedirectorofspecial projectsandlaterheadofthehighschool,or SeniorDivision. Wellerhad

beentheexecutive director ofthealumni association duringitsmostconfrontational timeswiththeTrust.

MikeFisherandotherofficials attheOffice ofAttorney General metwith theactivists inthespringof2003.FisheraskedRicFouadhowmanykidshe

thought could beeducated attheHershey School. Fouad remembers offering him afigureof5,000 or6,000. Fisher’s response, according toFouad, was thatthecommunity wouldn’t allow theschool togrowthatlarge.

“ORPHAN ARMY” / 99

Joseph Berning askedFisher aboutthereform agreement thathadbeen

signedinthesummerof2002andwouldbeimplemented inthesummerof 2003.Fisherresponded thatitwasanagreement between theTrustandthe OfficeofAttorneyGeneral.Assuch,it alwayscouldbechanged.“Iknew

thenwewerescrewed, Berning admitted. OntheFriday before MikeFisher’s sweeping reform package wastobe

implemented, hereplaced itwithawatered-down version. TheTrustboards wouldremaininterconnected andthenewTrustboardwouldhavelargely

thesamepowers oftheTrustboardsthrough priordecades. There wasno talkoftheBlueRibbon TaskForce childsafety recommendations.

“Thenewlyreconstituted board,”theattorneygeneralsaidina statementonJune27,2003,“hasassuredusthatitiscommitted tofulfilling the

vision ofMilton andCatherine Hershey thatpoorchildren receive ahome, theeducation andupbringing thatwillallow themtosucceed inlife.” Fisherresignedasattorneygeneralin 2003andwasconfirmedasa federalappealscourtjudgeinPhiladelphia. Heexplained inabriefphone conversation withmeabouta decadelaterthathebelieved thattheharsh

reforms ofthe2002package wereunnecessary withZimmerman andother localindividuals ontheTrustboard. THE ACTIVIST ALUMNI feltbetrayedbyMikeFisher.Theynowviewedthe previous decadeasmostlywastedefforts—there werenostructuralreforms atthecharity,onlynewfacesontheTrustboard. Unwillingto surrender,the alumniassociationsuedin Orphans’ Courtto reinstateFisher’s originalreform.“Wefoughtforyearsto get sometypeofrealstructuralimprovement. ThentheOfficeofAttorney

General justletthenewTrustboardshredthereformagreement,” John Rice,thenewalumniassociation boardpresident, saidinannouncing the legalaction.“TheAttorney General hasmadeitclearthathewantsthis

$5.5billiontrusttocontinuetofunctionlikeanassetofthegeneralpublic. Hisnewagreement isbasically a blueprintforsellingoffTrustland,and forperpetuating theviewoftheTrustasaneconomic engineforCentral Pennsylvania.” JudgeMorganheardthealumniassociation’s lawsuit. Thecaseturned onanarcanebutcriticallegalpointfortheTrust:Didthealumniassociationhavethe“legalstanding” tosuetheTrust?WithMiltonandKitty's

Trust,legalstanding tosuewasrestricted totheOffice ofAttorney General andTrustboardmembers. Butthealumniassociation believed bothgroups

100/ THE CHOCOLATE TRUST

werecompromised asit regarded protecting potentialbeneficiaries ofMiltrustfund. tonandKitty’s On November10,2003,deputyattorneygeneralHeatherJ. Vance-

Rittman testified toJudge Morgan thatthealumni association wasnotqualifiedtobringthesuit,andthattheattorney general sufficiently regulated

theTrustandlookedoutfortheimpoverished kidswhoweretheTrust’s beneficiaries.

“There is nothing,” Vance-Rittman saidincourt,“tostoptheattorneygeneral fromacting. Iftheschool weretorevertbacktothewayitwas before, there’s nothing toprevent theattorney general frombringing action

andcorrecting thesituation.” Shecontinued, “Theonlycourseavailable to thealumniisto complain totheattorneygeneral. Theattorneygeneralhas

beenveryreceptive andopentotheircomments. Wewelcome theirinput.” Fouad testified thattheOffice ofAttorney General hadfailed toprotect poorkids,andwould likely failagain. “Atevery turn,”hetoldthejudge, “we

havebeenbeforetheattorneygeneralontheseissues.Ourworkcontributed togettingthisreformagreement. Ifthereforms fail,allofourresources that

weexpended willhavebeenfornaught, andwe'llbeherein sevenyears orwe'llbeattheattorney general foranother sevenyears,foranother10

years. onNovember 19, JudgeMorganruledagainstthealumniassociation 2003,saying,“Werejectoutofhandtheimplication thattheschoolandthe

attorney general havesubordinated to otherinterests theinterests ofthe

childrenwhonoworlatermayattendtheschool.” Thealumni,unified,nowsplitintotwofactions. JohnO’Brien, thenew school president, headedagroupseeking atrucewiththeTrustandtheOffice

ofAttorney General. They wanted todialdowntheangerandconfrontation andgivethenewTrustboardtimetoimplement reforms. O’Brien circulated

a 20-page memowrittenbyalumni-relations expertDanWhite,proposing friendlier relations between schooladministrators, theTrustboardandthe

alumni association. TheTrustshould consider designating a vicepresident tomanage external relations andcreating analumni centeroncampus “as

asacredspace.” O’Brien describedhistransitionplanin a letterto alumni.Theplan includedsectionstitled,“Findand ServetheChildrenWhoNeedOur

School theMost,” “BeObsessed withGraduate Success,” “Focus onChar-

acterandLeadership Development” and“TheMiltonHershey Way.” There wastalkof a hugeconstruction program,andexceeding theenrollment

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goalof1,600 students onthecampus inHershey. TheTrustcouldrenovate SeniorHall.ANorthCampuswouldbeaddedformiddleschoolstudents. TheHershey SchoolheldagalainSeptember 2003forO’Brien’s inaugurationasHomeBoypresident. Color-guard studentscamedownthecenter aisleofthepackedauditorium in Founder’s Hallto thetuneof“Johnny

Comes Marching Home.”

RicFouadwasconcerned thatthereconstituted Trustcouldreverttothe waysofformerTrustboards,andhewasconcerned aswellwiththeinflux ofalumniadministrators. DuringHomecoming, hespoketoalumniinthe

sameauditorium whereJohnO’Brien’s inauguration hadbeencelebrated, comparing thealumni activists tothedesperate NezPerce tribethatin1877 fledtheU.S.Armyonhorseback across Oregon, Washington, Idaho, WyomingandMontana, looking forpolitical asylum. Theysurrendered only milesfromtheCanadian borderandsafety.Fouadimplored thealumnito

keepfighting, “We're 15milesfromtheborder.” O’Brien tightened thescrews onthealumni activists whenhemailed a lettertoalumni, printed onMilton Hershey School letterhead, inJune2004. Thelettersaidtheyhad“wornouttheirwelcome withtheOffice ofAttorney General,burnedtheirbridgeto theOrphans’Courtandalienatedmost

past[alumni association] presidents andleaders. Itistimeforachange.” Heevicted themfromtheHomestead. Thealumni boardrented conference spaceintheHoliday Inn. Thealumniassociation appealed JudgeMorgan’s rulingtothenext highercourtlevel, Commonwealth Court.Ajudges’ panelheardtheargumentsonDecember 8,2004.Thatcourtissueda decision onJanuary31,givingasurprising victorytothealumni.“Atbottom,” Commonwealth Court

Judge DanPellegrini wrote, “theMHSAA [Milton Hershey School Alumni

Association], whosemembership consistsexclusively ofpastbeneficiaries oftheHershey Trust,istheonlyotherpartywithasufficient relationship to

theTrustthatwould haveanyinterest inassuring thatitscharitable purpose isachieved.” Legalstandingforthealumniassociation, Pellegrini added, “willservethepublicinterestin assuringthattheTrustisoperatingeffi-

ciently andeffectively toserveitsbeneficiaries.” Hisopinion would becited intrustlawtextbooks. Thedeep-pocketed Trustappealed theCommonwealth Courtdecision

tothestateSupreme Court,thehighest statecourt.TheTrustandthealum-

niassociation arguedtheirsidesonMay9,2006.Representing thealumni association wereRicFouadandJohnSchmehl, a partnerinthePhiladel-

102/ THE CHOCOLATE TRUST

phialawfirmofDilworth Paxson. Schmehl’s father,William, hadgraduated

fromtheMilton Hershey Industrial School in1939. “Hewasalways grateful

totheschool,” Johnsaidofhisfather.WilliamSchmehl wentonto teach

political science andhistory atHershey Junior College. Afteritclosed inthe

1960s, hetaughtatHarrisburg AreaCommunity College. Hehelpedtoraise fundsfortheiconicstatueofMiltonHershey withayoungboyinFounder’s Hall,andkeptaccountsas treasurerofthe alumniassociation. Theelder

Schmehl diedin 1981, andJohn’s mother, Mary, purchased a cemetery plot

sohecouldbeburiednearMiltonintheHershey Cemetery. “Sheprobably paidmorethansheshouldhave.Sheknewhowmuchitmeanttohim,”John Schmehl reflected. JohnG.Knorr3darguedfortheAttorney General’s office, andBarbara MatherofPepperHamiltonrepresented theHershey Trust.“Youcouldtell

fromthemoment that[Judge] Cappy spoke, weweredead,” Schmehl noted. Cappy warned, “Wedon’t wantemotions toruletheday.” Schmehl thought

thejusticesasked“somedecentquestions butalotofthemdidnotlookvery interestedandthatwasnotgoodforus.”AttorneyGeneralTomCorbett andLeRoy Zimmerman, theRepublican powerbrokerandnowheadofthe

Trust,satnearthefrontofthecourtroom. alumnus Bobby Alsoattending theSupreme Courthearing wasHershey

rowhouse Chalmers.Hecameto Hersheyin 1954froma Philadelphia crowdedwithsevenkidsafterhisdad,Walter,diedat age42 ofa brain hemorrhage. HismomhadtalkedtoGirardCollege aboutenrollingsons

Bobby, JerryandHarry.Buttherewasnoroom,soGirardreferred herto Hershey. “Iwasyoungand I reallydidn’tknowwhatwasgoingon,”said Jerrydidn’t stay. Bobby, whobeganasakindergartner in1954. Hisbrother

“Here’s a kidwhohada littlefreedomandthenhehadnone.Hetoldme laterhethoughthewasin prison.”

the Bobby remembers playing fortwiththeotherboysandmowing inHershey. Once lawnwithapush-mower downbythecherry treeorchard

aweektheywouldbebusedintotownforanightout.Theboyswouldgravassembly itatetotheirfavorite placestosmoke.Bobby wasattheall-school whenJ.O.Hersheyannounced theplansforthemedicalcenter.J.O.really

pumped it up,herecalled, telling themthatHomeBoyscouldgotomedicalschool andbedoctors. ButmostoftheHomeBoysweretraining for

blue-collar trades.Bobbylearnedcarpentry.Hedidhisfarmchores.He milkedcowsin thebarn.Hethoughthewaspartofthechocolate factory. “Whatdodairycowsmake?” Chalmers askedmeaswetalkedovercof-

“ORPHAN ARMY” / 103

feeinPhiladelphia's Reading Terminal Market. Hemademotions likehe wasmilking acow.“Milk. Whatdoyouputinamilkchocolate bar?Milk.

Thosewhodon’tthinkthatthatthoughtdidn’tgothroughMiltonHershey’s mindareindenial.” BobbyChalmers graduated in 1966,andstayedconnected totheHer-

sheySchool. Heheardinthe1990s thattheschool hadclosed itsvocational education shops. Thatdidn’t soundrighttohim.Heheardabouttheactiv-

ists.Hethoughthe’dliketo help.OneoftheHomeBoysin thealumni association drovetoKingofPrussia,wherehelived,andgaveBobbythe addresses ofthealumnilivinginthePhiladelphia area.Hemailedlettersout

tothem—his wifehelped himwiththelabels—and launched aPhiladelphia alumni chapter. Theymetinachurch onAramingo Street, where another HomeBoyworkedasamaintenance man.Chalmers arrangedforFouadto speaktothePhiladelphia chapter. Itwaselectrifying. “Atthatmoment,” he said,“thealumniassociation wasveryunified.”

Chalmers supported thealumni’s courtcaseseeking therighttosuethe Trust, andJoeBerning asked himtogototheSupreme Courthearing. There

wereabout40peoplethere.HesawAttorneyGeneralCorbettandTrust headZimmerman, whowouldeventually earnabouttwomilliondollarsin

Trust-related directors’ fees,sitting nearthefrontofthecourtroom. “Thad a lotoffaithintheSupreme Court,” Chalmers reflected. Butashe

satlistening tothejudges,hefeltthealumniweren’t gettinga fairshake.The questions tothealumnilawyers werepointedandchallenging. Onejustice

keptglancing overatCorbett andZimmerman with,itseemed, aknowing look.“You couldtellthatthiswasfixed. Ithought, welost.” TheSupreme Court’sDecember 28,2006decisioncrushedChalmers, Fouad,Berningandtherestofthealumniactivists. “WefindtheAssociationdidnothavea specialinterestsufficient tovestitwithstanding,” the

decision read.“Nothing inthislitigation would affect theAssociation itself; itlosesnothing andgainsnothing....The Association’s intensity ofconcern

isrealandcommendable, butit isnota substituteforanactualinterest. Standing isnotcreatedthroughtheAssociation’s advocacy oritsmembers’ pastcloserelationship withtheSchool asformerindividual recipients ofthe Trust’s benefits. TheTrustdidnotcontemplate theAssociation, oranyone

else,tobea‘shadow board’ ofgraduates withstanding tochallenge actions theBoard takes.” Therewerenootherappeals. Millions ofdollarsandthousands ofhours

ofvolunteerism over15yearshadgoneintotryingtoreformtheTrust.

104/ THE CHOCOLATE TRUST

Between 1999and2003,JohnHalbleib estimated thathespentabout8,000

hoursontheTrustbusiness, valued at$3.5million inlegalfees.Hestored aterabyteofinformation onhiscomputers intheChicago area.RicFouad practically suspended hislegalcareerforthealumnicause.Thoseefforts andfinancial resources swirleddownthedrainthatday,defeated byHarrisburgpolitics, thecourtsandtheTrustlawyers.

RicFouadbooked a flighttoTokyo thedayaftertheSupreme Court decision, andtookajobasanin-house counsel ataJapanese financial advi-

soryfirm.Hecreatedthenon-profit ProtecttheHershey’s Childrenasa clearinghouse forinformation ontheHersheySchoolandaplaceforstudentsandparentstocomplain. Activistalumnigravitated toit,whilethe Hershey School administration ostracized himandblocked hisemails.“T’ve beenlivingupinthehillsandtryingtokeepalive,” hesaidwrylyintheNew

York interview. “The public officials arethebadguys.[The alumni] werethe onlyagentofchange.”

RECURRING PROBLEM— THE CHOCOLATE PROFITS How Should theTrust Spend ItsBillions onPoor Kids? “There isaccumulating evidence thatifyoukeepkids athomethereseemstobelong-term benefits asopposed toinstitutionalizing them.” —FORMER HERSHEY SCHOOL VICEPRESIDENT RONTHOMPSON

VER THEDECADES, theTrusthadconstructedmoreruralstudenthomes,

moreclassrooms, moregymnasiums andmoreadministrative buildingsinHershey withthetrustfundsurpluses thathadbeenbuiltup

fromburgeoning chocolate profits.Now,following JudgeWarrenMorgan’s 1999rejection ofhisproposed research institute, WilliamLepley castabout

forwhattodowiththehundreds ofmillions ofdollars thatMorgan saidhad

tobespentdirectlyonpoorchildren. TheformerIowaeducation bureaucrat askedhisstafftheobvious question:Wasan all-in-Hershey expansionoftheschool’s servicesthebest

option going forward forthenation’s poorkids?Should theTrusttrysomethingnew? Should theHershey School staybottled upinruralHershey with somuchpoverty incities? Howeffective wasthesuper-rich Hershey School, stillbasedonMilton Hershey’s outmoded model, inimproving thelivesof

poorchildren? Thepubliclookedat theTrust’smassivewealthemanatingfromthe

chocolate company, andattheschool’s gorgeous campus, andthought the Hershey School mustbedoinggreatthingsforpoorkidstoliftthemout

ofpoverty. Theinstitution’s PRmachinecontinued tocrankoutstoriesof poorkidsgraduating fromhighschoolonanupwardtrajectory, painting theinstitution asatickettocollege andthemiddleclass.

106/ THE CHOCOLATE TRUST

Insiders knewdifferently. Fewkidsenrolled askindergartners orfirst graders because parents werereluctant tosendtheiryoungchildren away

fromhome.ManyHershey School studentsenteredineighth,ninthortenth grades,givingtheinstitution onlyafewyearstodevelop themacademically andsocially forcollege.

Teenage students were rebelling against thestrictrules. Attrition hadbeen

aproblem sincethe1970s eventhoughtheinstitution nowpractically threw moneyatpoorboysandgirls,atleastaccording toitsIRSfilings. TheTrust spentannually about$100,000 perstudent—a whopping amountwhencomparedwiththevalueoftuitionandboarding feesateliteprivate schools andthe otherspecialized residential child-care institutions. Because itwassoexpensivetooperate, andcostswerenotoffsetbyanytuitionfeesastheywouldbe atmostboarding schools, astudentwhoattended theHershey School fortwo

yearsandthendropped outcostMilton andKitty’s trustfund$200,000 with minimal charitable returnonthosefunds. Achildattending thereforfive, six

or10yearscoulddropoutorbeexpelled. ThosekidscostMiltonandKitty’s trustfundbetween $500,000 andonemilliondollars. Students andtheirpar-

entsviewed theHershey School asacollege-prep boarding school—an idea promoted bytheinstitution withitsacademic-based curriculum, centralized andcompact campusandcollege-aid scholarship program. ButmostMHS graduates whowentontocollege dropped outbeforeearninga degree. Sincethelate1950s, theTrustoritsconsultants hadtoldtheOrphans’

Courtandtheattorney general thattheHershey School should enroll1,500 or1,600orphansorpoorstudents inHershey. Butthatcouldeasilybe

changed withoutahugelegalbattle.JudgeMorganhadincluded a footnote inhisdecreerejectingthe1999cy-prés petition,indicating thattheTrust couldconsiderlocationsoutsideofHersheytoexpandschooloperations

withitssurplus because, hewrote, ofthe“doctrine ofdeviations istheavailableremedy; location ismerely adetailoftrustadministration.”

Thisperhapscouldbetheopening.Lepleyhimselfhadreservations aboutexpanding theschoolin Hershey: hebelievedthatthe“largerthe schoolgot,thehigherthepotentialtherewasforproblems withthetown.”

Hebeganconsidering satellite schools. Lepley hiredRonald Thompson of BoysTown inNebraska tooversee anindependent research project which

wouldevaluate theHershey School anditsprograms—the firstindependent evaluation byexpertssincethelate1950s. Morgan hadorderedtheHershey Schooltoexpenditssurplusdirectlyonpoorkids.Lepleywouldfindthe

bestwaytodoit,usingthebeststandards ofresearch.

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Hershey School couldbea powerful forceforgoodinhelping the

nation’s poorchildren, Thompson believed. Buthecametotheprojectwith knowledge builtofyearsofresearch, andhedidn’tthinkanall-in-Hershey approach wasthebestoption.“Thereisaccumulating evidence,” Thompson saidinaphoneinterview, “thatifyoukeepkidsathomethereseemstobe

long-term benefits asopposed toinstitutionalizing them.” Having theHersheySchool expand inHershey, Thompson continued, meantthat“yougot onesolutiontochildpovertyinAmericaandthatwastoconvince parents tosendtheirchildrentoHershey.” Thompson hada budgetofseveralmilliondollars—one estimatewas

fivemillion—for asophisticated andcomprehensive analysis oftheHersheySchool’s programs. Withthismuchmoney, workcouldproceed atthe

highestprofessional level.Thompson engaged someoftheleadingBritish andAmericanresearchers asadvisors,includingSirMichaelRutter,“the fatherofchildpsychology” andauthoroftheclassicMaternalDeprivation

Reassessed; theUniversity ofMaryland’s Richard Barth; PennState’s Mark Greenberg; Michael Little, fromtheResearch UnitatDartington, andthe University ofChicago’s Harold Richman. Thisadvisory boardmetatthe HotelHershey andtouredthecampus. ThompsonretainedChapinHall,a policyresearchcenterat the

University ofChicago, tocrunchthenumbers andassemble research.

Accordingto itswebsite,ChapinHall’s“impactderiveslargelyfroma distinctivemarriageofthemostrigorousacademicresearchandinnovativepartnerships withpublicsystems,institutions,organizations, and programsthatarein a positionto deploythatresearch.” ChapinHall’s areasofspecialtywerechildwelfareandfostercare,community change, economic supportsforthefamily,homevisitationandabuseprevention, schools,workforce development andcrime.Itsresearchers chosetough topics:whymoreblacksthanwhitesseemedtobeplacedin fostercare, thetransitionoffosterchildrenintoadulthood,andunderperforming poorschools. Michael LittleofDartington coordinated theHershey project.TheBritishhadmoreexperience withboardingschools, anditwasonlylogicalthat theyweremoreadvancedin theiranalysisofthem.Dartington’s Social

Research Unithadbeen“keyinbringing abouttheclosure ofresidential

centersfordelinquent youth,limitsonthenumberofchildrenplacedin

securesettings, andtheprovision formorecontact between looked-after children andtheirparents,” according toitsorganizational history. “We

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havealsobeenanimportantvoiceinthenationaldebateaboutmorepre-

vention andearlyintervention inchildren’s services.” Datacollectors knocked ondoorsandinterviewed parentsinpoor neighborhoods inPhiladelphia andotherPennsylvania cities, asking them

whattheythoughtofsendingtheirchildrenawaytoaboarding-type school withworld-class educational facilitiesandcollege-prep academictrack.

High-income parentssawboarding schoolasa riteofpassage fortheir children.Butthiswasn’ttheviewinimpoverished, joblessbrickrowhouse

neighborhoods. Mothers andfathers therefeared county social workers tak-

ingchildrenoutoftheirhomeforneglectandplacingtheminfosterhomes. “Parents inlowersocioeconomic levelshaveevenstrongerbondsthanfamilieswhosendtheirchildrentoprivateboardingschools,” saidThompson. “Theyhatetohavetheirkidsplacedoutoftheirhome.”

Researchers alsoweretroubled withhowtheHershey School interacted

withparents.Contemporary researchshowedthata poorchildin a residentialschoolhadtomaintaincloserelations withtheirmother,fatherand otherfamilymembers. Thesewerepeoplewithwhomthey’dhaverelationshipsthatlastedtherestoftheirlives.TheHershey School stilloperated asif

thekidshadbeenorphaned without family. Itrestricted visitshomebythe students anddidn’tregularly update parents ontheirchild’s performance inHershey. WHAT EXCITED top-level BritishandAmericanresearchers themostabout

theHershey project wasthepotential toanswer thebet-the-farm question: Howdidpoorstudents whoattended theHershey School, theworld’s richest

boardingschoolforimpoverished children,comparewithpoorstudents whoappliedbutdidn’tenrollthereandperhapswereeducated inpublicor privateschoolneartheirhomes?

Putmoresimply: Using objective comparisons, didtheHershey School improve thelivesofkidswhowentthereandwhobenefited fromthe $100,000 ayearfromMiltonandKitty’s trustfund,whentheywereobjectivelycompared withthestudentsofthesamesocioeconomic background

whodidnotattendtheHershey School?

Likeproudparents,administrators toldstoriesofstudents whoachieved

college orprofessional success afterMHS. Eachyear,theschool stillhanded

outa distinguished alumniaward.Butthosewereanecdotes innewspaper storiesandpublicrelations andmarketing brochures, nottheresultofvet-

tedresearch. Those sameadministrators neglected totellthesadstories of

RECURRING PROBLEM—THE CHOCOLATE PROFITS / 109

students whodropped outofMHS, orflunked outofcollege. There seemed

tobeatleastasmany,perhapsmore,ofthosestudentsassuccessful ones. Skeptical researchers alsoaskedwhetherthehigh-achieving MHSstudentwouldhavesucceeded withoutMHS.Wasittheinstitution ortheindividual?Whenonetalliedupthesuccesses andfailures, weretheremoreof onethantheother?“There areexceptional storiesofpeoplefromHershey,”

saidoneofthedreamteamresearchers. “Butwecan'ttelliftheywould have doneaswelliftheyhadnotgonetoHershey.” TheBritish andAmerican researchers structured theproject likearan-

domdrugtrial.In sucha drugtrial,onepatientgrouptakesanexperimentaldrugwhileasecondgroupdoesn't—that’s thecontrolgroup.Atthe

trial’s end,overweeks, months oryears, researchers compare thehealth outcomes ofthetwogroups. Iftheexperimental drugimproved thehealthof

thegroupwhosemembers tookitwhilehealthofthegroupwhosemembers didnottakethemedication didn’timprove, thedrugcouldbeconsidered effective andsafetobesoldtothepublic.Andviceversa.

Theresearchers believed theycouldcompare thelivesofpoorkidswho

attendedtheHershey School withthelivesofthosewhoappliedforadmissionandwererejected. Theycouldlookatcurrentstudentsandrecentgraduates,andtheycouldlookretrospectively byanalyzing historicdatainthe admissions department. WithLepley supporting theproject,theresearch-

erscouldaccess student andadmissions data—names, ages, raceandhouse-

holdincome.Theproject’s resultswouldlookatthebroadperformance of theHershey Schoolwithpoorstudents.Italsocouldlookatotherfactors, suchasdifferentiations basedonrace.

TheHershey School hadadjusted itsadmissions criteria overtheyears tomaintain a50-50 racial balance ofAfrican-American andwhitestudents. TheHershey School hadthehardest timerecruiting poorwhitekidsfrom

ruralPennsylvania, whileiteasilyfoundapplicants amongAfrican-Americanpopulations—most likelybecauseofthedangerous andpoorlyrun

publicschools inPennsylvania’s largercities.Philadelphia schools were careening fromonefinancial crisistothenextoverfunding. Atthispoint,

iftheHershey Schoolweretoenrollonlythemostqualified studentswho appliedona color-blind basis,moststudentswhoattendedtheHershey SchoolwouldbeAfrican-American, according toaformertopschoolofh-

cial.Because African-American children camefromhomes thatweregenerally poorer thanpoorwhitestudents, theHershey School mightbemost usefulraisingthelivingstandards ofAfrican-American students, some

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believed. Butsucha researchconclusion seemedto causediscomfort in Trustboardmembers whoweredetermined tomaintaina 50-50student

racialbalance.

Inthemidstofthismulti-million-dollar research project, JudgeMorgan andAttorney GeneralMikeFisheroustedWilliamLepley andhisallieson theTrustboardovertheproposedsaleofHersheyChocolate. Replacing themwerethepolitically powerful LeRoy Zimmerman, formernewspaper

publisher Raymond Gover, andothercivicboosters. Alumni remained a powerful voting blocontheTrustboard.ThenewTrustboardsaiditwant-

edtocontinue tocooperate withtheresearchers. Butnow,datawasn’t forthcoming. Thenewschoolpresident, JohnO’Brien, balkedatparticipating in someareasoftheproject, believing itrequired theinstitution todeliberately

rejectsomestudents whowould qualify sotheycouldbetracked. ThenewTrustboardalsoseemed tobeleaning toward expanding the

school’s operations inHershey—keeping MiltonandKitty’s orphans’ funds localinsteadoffinancing schoolfacilities andoperations inotherpartsof Pennsylvania orthenation.Inlate2003,theTrustboardfinalized plansto

boosttheenrollment to1,800 students, aproject thatwould costhundreds ofmillions ofdollars inconstruction. LatertheTrustboardraisedthebar evenhigher, withagoalof2,000 students by2013 inHershey—400 students morethanthetargetinthe1963cy-prés petitionand500morethanthe 1999cy-prés petition.TheTrustmovedtoexpandinHershey withoutthe resultsoftheresearchproject,whichverylikelywouldhaveshowedthat anall-in-Hershey expansion wasn’tthebestoptionforpoorstudents.“It

wasclear,” saidoneoftheadvisory boardmembers, “thatthiswasn’t like a [National Institutes ofHealth] grantinwhichthegovernment gaveyou moneyandwentawaysoyoucouldresearch.” TheTrust’staxfilingswiththeInternalRevenue Servicein 2002and 2003eventually werethe onlypublicevidencethat the researchproj-

ectexisted atall.Those 990’s referenced $1,117,410 spenton“educational researchers, paidtoChapin Hallin2002,andanadditional $996,791 in

paidto 2003.TheTrustlistedtheamountsinthesectionforcompensation In2002,ChapinHallwastheHersheySchool’s independent contractors. contractor, andin2003itwasthesecondhighest. highest-paid independent in theIRSdocuments to ChapinHallafterthe Therewerenoreferences

2003filing.

RichardBarth,thedeanoftheSchoolofSocialWorkattheUniversity ofMaryland andanadvisory boardmember, commented ontheproject’s

RECURRING PROBLEM—THE CHOCOLATE PROFITS / 111

termination: “There seemed nottobeagreatseriousness orcompunction ontheirparttoseewhether whattheyweredoingwasmaking adifference,

orwhethertheycouldimprove.” Asecondadvisoryboardmembersaid hebelieved thatlocalandstatepoliticsoverrode child-care concerns. Ron Thompson, thevicepresident recruited fortheproject,quitandreturnedto

Boys Town inNebraska. Theproject “kindofnevergotofftheground inthe

twoyearsI wasthere,”hesaid.“Ifeltlikewewerenotonfirstbase.Itwas movingatasnail’s pace.Theywerenotinterested intheanswers.” TheChapinHallresearchers neverpublished areportforpublicconsumptionontheHershey School. ButThompson, Michael LittleandAmelia Kohm

placed anarticle intheInternational Journal ofSocial Welfare in2005, blandlytitled, “The impact ofresidential placement onchilddevelopment: research andpolicyimplications.” Thompson forwarded thearticleinanemailtome. ThejournalarticledidnotnametheHershey School, butaddressed residential-education issuesconsistent withthoseattheinstitution.

“Very littleisknown abouttheimpact ofseparation onthefunctioning

oftheseparated adultanditsimpactontheseparated child,”theauthors wrote.“Whereinformationon the successof residentialinterventions exists,itusuallyindicatesthatsomechildrendowell,meaningothersdo

notimprove (and,aswehavehypothesized, thatsomemayactually beworse offasaresultoftheexperience).” Theauthors bemoaned theguessing. Theythought bullying couldbea

problem, buttheydidn’tknowtheextent.Therewerefewmore“intrusive

interventions’ ina child’s lifethanplacing themina residential facility, and the“potential positive ornegative impact alonejustifies thecostofrigorous evaluation.” Theauthorsconcluded: “Withoutsignificant changes,thefutureof residential provision forchildrenlooksbleak.Certainsectors,suchasthe

eliteboarding schools, will,ofcourse, remain, although itseems reasonable toassume theywillcontinue todecline intermsofnumbers ofchildren served...

“Isthereanalternative scenario? Wedonotknowwhichchildrenwill benefit...or whyinterventions workwhentheydo.Butwehaveevidence thattherearepositiveoutcomes forsomechildreninsomedomains,and

weshould trytobuilduponthisknowledge.”

THE HERSHEY SCHOOL wasnowaninstitutionbasedontheconceptofresidentialeducation thatnotonlylackedscientific underpinnings andbroad

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support,butwasanoutlierintermsoftheconventional educational sys-

temintheUnited States. Butithadadvocates inWashington. Community activist HeidiGoldsmith established theCoalition forResidential Educa-

tiontolobbyandadvocatein Washington fortheresidential education conceptin the 1990s.ThegroupwentbytheacronymCORE.Itsmembershiptodayconsistsofabout35institutions: repurposedorphanages andcurrentor formerhomesfordelinquent, homeless, abusedortroubledchildren.TheyincludetheBenRicheyBoysRanch;FloridaSheriffs’ YouthRanches; GirardCollege; MethodistChildren’s Home;Oklahoma BaptistHomesforChildren; theSEEDSchools andtheTupeloChildren’s Mansion. TheirhistoryisascolorfulandvariedanddaringasAmericans themselves.TheReverend JamesA.ScottandhiswifeTheodocia openedan

orphanage inOklahoma Cityin1903, seven yearsbefore Milton andKitty. TheBaptist minister explained inhis1936 manuscript: “Now thisinstitu-

tionwasbornintheheartofMrs.J.A.Scott.WhileI wasattheSeminary at Louisville, wefrequently visitedtheLouisville BaptistOrphanage and Masonic Orphans’ Home.Itwasoftenexpressed thatifweeverweretogo

toOklahoma, ifothers hadnot,wewanted tostartaBaptist orphanage. The waydidnotopeninourfirstcoming toOklahoma, butwhenwetookthe workatWashington Avenue in Oklahoma City,theLordopenedtheway andthreechildrenwereputinourhands.” Themotherofthefirstchild“waslivingina oneroomhouseonthe

alleyofChickasaw Street. Themother andchildseemed hopeless andready todie,”Scottwrote. “Thenextbaby, Annabelle [Hunt], wasa foundling left

inawagonatPaul’sValley, thenIndianTerritory. ShewasbroughtbyMrs. Scott’ssuggestion totheHome.Mrs.Turnerfoundherwhenshehearda babycryatoneo’clock inthemorning.”

TheOklahoma andIndianTerritory Orphans’ Homeshortened its

nametotheOklahoma BaptistOrphans’ Homein 1917. Therewereother namechanges, newbuildings andnewservices. Acrisispregnancy center opened.Intheearly1990s,in thefaceofsmallerenrollment, theformer orphanage closedeightcottages andcutitsstaff.

InTexas, theAbilene citycommissioner, BenRichey, noticed “how boys intheareawhowerewithoutChristianrolemodelsfellintothesamerut.” Thecharity'sliteraturesaysthe“BenRicheyBoysRanch,openedin 1947, willprovidea clean,comfortable andsafehomeforeachboyattheranch.

Through nurturing andguidance ofhomeparents andstaff,eachboywill

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develop confidence andlearntotakeresponsibility forhisactions.” Itshel-

ters20to25homeless boysforabouta milliondollarsa year. TheReverend T.C.Montgomery drovethebackroadsofMississippi

withaBible, collecting $322tofoundtheTupelo Children’s Mansion. In 1952, itwasrecognized bytheUnitedPentecostal Church, andthestate granted itnon-profit statusthesameyear.Itsfirstfourchildren, agesfour

through12,arrivedbytrainthenextyear. Inthe1970s, thegroup’s campusexpanded to26buildings fromseven. In2004,thecharityopenedahomefortroubledteenagegirlswithspecial needs.TheTupelo Children’s Mansion saysinitsIRSfilingthatitspent$2.8 millionin2010.

Nicholette Smith-Bligen, CORE’s executive director, saysresidential

education isa “boarding schoolmodel”fordisadvantaged children.“They

areallresidential andtheirprograms arecentered oneducation,” shesaid.

The“primaryfocusisontheacademics andnotthementalhealth,” while acknowledging “thekidswetargetmaycomefromdifficult circumstances andmayneedadditional support.”

Though anecdotal evidence shows thatresidential education helpschildren,Smith-Bligen acknowledged thatmoreresearch needed tobedone

onresidential education. Sheadded,“Boarding schoolshavebeenaround forever, buttheyhavenotbeentalkedaboutinimpoverished communities.

It’saviable optionforallyouth, notjustyouthinthewealthy community.” MILTON AND KITTY HERSHEY hadinitiallylaunchedan orphanage. With thatinstitutional modeldiscredited, themodernized Hershey Schoolwith itscentralized campusdirectedpeoples’ attentiontocollege-prep board-

ingschools asitsmodel. ThegloryyearsforU.S.boarding schools came between 1890and1910—America’s Gilded Age.Evenoneoftheirbiggest advocates today,PeterUpham,executive directoroftheAssociation of Boarding Schools, acknowledges “thereiscertainly notgrowthinthenum-

berofNorthAmerican students going toaboarding school. It’swhatthey'd calla maturemarket.” Choate-Rosemary Hall,Deerfield, theGunnery, Lawrenceville, Grotonandotherprivate boarding schools enroll35,000 childrenofupper-middle-class andwell-to-do parentsintheUnitedStates orCanada.Another15,000 foreignstudentsattendtheinstitutions, bring-

ingthetotalboarding school population toabout50,000 kids. Uphamdescribed boarding schools as“prettycounter-culture” and saidthatonlyonein 500Americanstudentsenrollinone.“Youarekind

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ofanoddball ifyougotoaboarding school.” Parents areonlywilling to

payboardingschooltuition,whichaverages around$40,000a yearbut couldbesignificantly higheratthemosteliteinstitutions, becauseofthe

so-called boarding-school effect. Children whoattendboarding schools do

morehomework, watchlessTVandinteractmorewithteachers, Upham contended. “Thereisamountainofevidence onabatteryofmeasures that boarding schools makeabigdifference. Parentswouldn't paythemoneywe

charge iftheydidnotthinktheirkidswould beabletocompete forslotsat

themostselect[colleges].” TheAssociation ofBoardingSchools, orTABS,keepsa databaseon itsmembers thatcanbesortedandsearched ontheInternet.TheHershey SchoolisnowrankedintheTABSdatabaseasthenation’s largestboard-

ingschool bywealth andenrollment, accounting forabout5percent ofthe U.S.boarding school population. Upham welcomed Milton Hershey’s formerno-frills orphanage andtradeschoolasapeerintheassociation of

thenation’s eliteboardingschools becausetheHershey School“sharesour criteria.It isa residential schoolandit iscollegepreparatory in mission

andpractice.” Butcouldthebenefits ofaboarding school forrichkidsbe transferred topoorkids?“I'dliketothinkso,butIdon’tknoweitherway,” Uphamsaid.“Ihaven'tthoughta greatdealaboutthisbutI don’tseeany reasonaboarding school...couldn’t workwithapopulation MiltonHershey

serves.

ALUMNUS JOHN O'BRIEN, takingoveras the newpresidentof the Hershey

School in2003,inheritedaconfused andtraumatized institution. O’Brien’s

baseofsupport, thealumniassociation, hadfought theschool’s administrationmostofthepriordecade.Theybelieved theoutsiderWilliamLepley,didn’tknowwhathewasdoingandneglected toemphasize teaching discipline, respectandgoodbehavior. O’Brien andhisnewalumnischool administrators wouldrestorethesetraditionstotheHersheySchoolwith

busykidsandaculture of“more gratitude, lessattitude.” Alumniadministrators formalized a system ofmeritsanddemerits thathadexistedontheHershey Schoolcampusfordecades, withbehavior ratingsanda point-based disciplinescheme.Atthesametime,O’Brien attemptedto lowerattritionrates—kids droppingoutof the Hershey

School before graduation. Heandothersviewed theschool’s failurewith

attritionasparticularly troubling.Tothem,a kidwhowalkedoutofthe HersheySchoolwasthesameasa kidwalkingawayfromtheirfamily

RECURRING PROBLEM—THE CHOCOLATE PROFITS / 115

home.Manyofthemthoughtoftheinstitution asthe“Home.” Noone

thoughtthatwasOK. O’Brien developed theideaofwelcoming Springboard Academy: an experimental stand-alone educational facilityontheHershey Schoolcampusformiddleschoolchildren. TheTrustapproved theconceptandagreed

tospend$36million onitsconstruction. Itwastoeasekidsintotherigors of theHershey School withitsregimented dailylife.AtSpringboard, though,

kidssleptindorms,notgroupstudenthomes.Therewasoneforgirlsand oneforboys.Theydidn’tevenattendtraditional classes. Anembarrassing failure,theTrustclosedit aftera fewyearsbecauseit didn’tmeasurably

boostattrition andbecause ofsafety concerns withsomanykidssleeping together inadorm. Thetradeschoolasithadexistedinthe1950s wasn’tcomingback.The Trusthadinvested heavily intotheboardingschoolmodelandcentralized campus.It recruitedstudentswiththepromiseofTrust-funded college

scholarships accruing witheachyearofhighschool attendance. O’Brien andTrustleaders realized thatbytheearly2000sthiswasabigproblem.

MostMHSgraduates weren'tearningcollege degrees. Theydidn’thavethe so-called persistence togetthroughfouryearsofcollege anddroppedout

orfailed out.ForthosewhoreadMilton andKitty’s 1909 Deed, thispointed

tocharitable failure.TheDeedstatedthattheinstitution’s purposewasto educateorphans,nowpoorkids,tolead“productive” livesasmiddle-class American citizens. MiltonHershey’s solution hadbeentograduate “employableproducts” withtradeskillsinplumbing, electrical work,carpentry and otherblue-collar jobs.Nowtheinstitution graduated kidswithhighschool

diplomas andsentthemtocollege withthebeliefthey'dmatriculate. Few Americans believed intheearly2000s thatahighschool education—even a

veryexpensive chocolate-funded highschooleducation—was theticketto amiddle-class life. Partoftheproblemwithcollegepersistence seemedtobea legacyof theinstitution’s historyasanorphanage. TheHersheySchoolrigorously structuredstudentlivesdowntotheminute.Studentshadlittleindependence.Theyweretoldwhattodoandwhattotalkaboutandwheretogoand whattodowiththeirtime.Therewerelimitsontheiruseofsocialmedia andmobilephonesandevenvisitshome.WhenMHSstudentsgraduated,

theywereunprepared toshop,budget, findmedical care,study, makegood friendsandworkontheirown.O’Brien andthenewalumnileadersdevelopedapartment-style “transitional living”unitsforhighschoolseniorsto

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experience somefreedoms. Thiswasagoodstart.Butitdidn’tseemtogo farenough, anditdidn’tsolveanotherproblem forimpoverished kids:a lack

offamily support whentheyentered college. Milton Hershey believed that poorboyshadtoquickly entertheworkforce andearnapaycheck because theycouldn't countonfamily tohelpthemthrough college. Times hadn't changed allthatmuchforpoorkidsbetween 1920and2013.One2005MHS

graduate observed inaninterview, “Itwasdifficult forsomeofthekids duringthesummer. Theydidn'thave a placetolive.There werealotofstu-

dentswhowerehomeless inthesummerandthenthereweresomestudents whoweren'tsmartwiththeirmoney.Hersheyexpectsyoutobeanadult whenyougetout,andalotofkidsarenotatthatmaturitylevel.” MHSstudents tendedtoaimforselectcolleges. Thiswaspartoftheallure ofthegorgeous campusandtheprepschoolmodel.ButMHSstudents strug-

gledveryhardatwhatever college theyattended. Beginning withO’Brien, the Hershey School triedtocalibrate student expectations andtolinkscholarship

aidtohighschoolperformance. Students wereevaluated througha matrixof grades,SATscoresandstateproficiency scores, limitingtheiroptions. Based onthematrix,manywouldonlyqualifyforcommunity colleges.

Financial aidadministrators alsothought thatifimpoverished students hadloans—as opposed toaid—they’d haveanincentive tograduate from

collegebecausethey'dhavetopayofftheloans.Themulti-billion-dollar HersheySchooltoldstudentstheyhadtoborrow$2,500a yearfromthe federalStafford loanprogramforcollege. Theamountcouldberepaidwith

Hershey School college scholarship aidiftheygraduated fromcollege. If theydidn'tgraduate, they'dbeonthehookforthousands offederal student dollarsthemselves. Onetopschoolofficial, analumnus, calledit“skininthe game.” Butthepolicyalsoshiftedthefinancial burdenofpayingforcollege fromtheHersheySchool’s chocolate-funded endowment to itsimpover-

ishedgraduates. TheHershey School marketed the$80,000 incollege aidasarecruitment

tooltobringingoodstudents.Butinmanycases,topacademic achievers attheHersheySchooldidn’tevenneedtheHersheySchool’s scholarship programthathadseemedsoattractivetothemandtheirparentsbackin

seventh oreighth grade. Withgoodgrades andlowhousehold income, these students independently qualified forgrantsandnon-Trust college aidprogramsbasedonfinancial need.

OnegirldroppedoutoftheHersheySchoolmonthsbeforegraduation whena collegeofherchoicenearherhometownofferedhera fullride.

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ShelivedhoursfromHershey andmissed herfamily. Shewasaveryintel-

ligentandmotivated student—well abovetheaverageMHSstudent.“No onewantstobehere,andI feeltheadministration usesthe$80,000 likea carrotonastick.Wehavetokeepchasingitevenifitmakesusmiserable,”

shetoldme. There wasalsotheproblem ofSATscores. Theyremained apervasive

factorincollege admissions, thoughstudiesconsistently indicated thatthe scoreswerestronglyaffectedbyhousehold income.TheHersheySchool hadtransformed itselfintoaboardingschooltopreparepoorstudentsfor college, yetthehistoricSATscoresofpoorstudentswhoattendedtheHer-

sheySchool strongly suggested thatMHSgraduates wouldstruggle toget

throughcollege—unless theHersheySchoolcoulddevelopaninnovative programtosubstantially boostitsSATs. Ithadn't.In2011, theHershey School’s average SATscoresranked515th outof648amongPennsylvania publicandcharterschools,lowerthan

somePennsylvania public schools withhighpercentages ofpoorstudents, according totheHershey’s “Annual Student LifeReport Card,” released in 2012,andPennsylvania Department ofEducation data. Trendsshowedthataverage SATscoresattheHersheySchoolweren’t

heading higher, butlower. Female student SAT scores fell—from anaverage of1352 formath,reading andwritingin2009to1304in2012.TheHer-

sheySchoolsucceeded withonestudentpopulation overthistime,though: African-Americans. Theaverage SATscoresforAfrican-American students wereslightly betterthanthestateaverage. Withaverage SATscoresatthelowerendofthestate’s spectrum, choic-

esandthelikelihood forsuccess atcollege narrowed sharply forHershey School students. Hershey School showed thattopdestinations forMHS

graduates werecommunity colleges andfairlynonselective stateuniversities,including Harrisburg AreaCommunity College, Pennsylvania Institute ofTechnology, Kutztown University, Northampton Community College

andtheCommunity College ofPhiladelphia. ManyoftheMHSgraduates

weredropping outofthesepost-secondary institutions aswell. AJanuary27,2012Hershey Schoolinternalschoolmemotoldasoberingstoryaboutcollege persistence a decadeafterMikeFisherandWarren Morganreconfigured theTrustboard,andtheJohnO’Brien-led adminis-

trationattempted totighten discipline andboostcollege success. Thememo

listedrecentcollege gradsbystudentnameandpost-secondary institution theywereattendingaftergraduation.

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Twenty-seven percentoftheHershey School’s graduating classof2010,

significantly lessthanone-third, wereenrolled incommunity orfour-year colleges andearning a 2.5gradepointaverage orhigherafterthreesemes-

tersincollege. IntheClassof2011,30percentofMHSgraduates earneda 2.5grade pointaverageorhigheraftertheirfirstsemesterina community orfour-

yearcollege. ManyMHSgraduates weresimply notmakingitatcollege afterthe Trusthadspenthundredsofmillionsofdollars,perhapsa billion,overtwo decadestotransformtheformervocational schoolintoa prepschoolfor poorkids.

JUNE 10,2012brokegloriously intheLebanon Valley forthepageantry and jubilation oftheHershey School graduation inFounder's Hall.Thepark-

inglotsaroundFounder's Hallfilledtocapacity. Menandwomen,grandmothersandgrandfathers, walkedintothebuilding dressedintheirSunday best.Therewasanoverflow areainsidethecafeteria withgiant-screen TVs

showing theceremony fortheseveral hundred attendees whodidn’thave tickets. Thesomber strains ofBach’s Toccata andFugue inDMinoropened the ceremony. Themembers oftheBoardofManagers tooktheirplacesonthe stagewiththetoptwoschooladministrators, president TonyColistraand

chiefoperating officer PeterGurt,bothalumni. Atthismoment, itwashardnottosetasideconcerns abouttheschool

andstudentachievement, andjustfeeltheprideinthestudentsthatreverberatedthroughtheroom.Houseparents andteacherssatin theseatsin thefrontrows.Thereweresobsandhugswithhouseparents astheseniors,

dressed inbrownandgoldgowns, streamed downtheauditorium’s long aisles andtoward thestage. ArianaNeely ofBaltimore, whohadenrolled nineyearsearlierinthe elementary school,andwhohopedtobea pediatriconcologist, gavethe “Welcome Speech” tothecrowd.Itwasanuplifting speechlikesomanyof

thecomments thatday—including thosebyschool administrators—and ittouched onthedifficulty ofleaving homeandparents forHershey. The consistent themewasovercoming hardship. “MiltonHersheyseemedliketheperfectgetaway foranadventurous littlegirlwhoneededtobeawayfromthefamilyturmoil,”Neelysaidon thestagetothecrowd.“Although I wantedtobehere,everydayforthat

RECURRING PROBLEM—THE CHOCOLATE PROFITS / 119

firstmonthIcriedandcriedovertheabsence ofmyfamily. Iremember my

houseparents tellingmetostopcryingandbeabig girl.I thoughttheywere beinginsensitive. However astimewenton,I realizedtheywereteaching metobestrong.”

Shetoldastory. During herfirstdaysatMilton Hershey, herhousemotheraskedhertouse“elbow grease” tocleanthekitchen. Shehadn’t heardof

elbowgreaseanddidn’tknowwhatthatwas.Maybeitwasa cleaningsolvent?Shelookedthroughthecabinets forthe“elbow grease.” Ofcourseshe

couldn't finditandshelearned thatitwashardphysical scrubbing thatthe housemother expected ofher.Putsomeelbow greaseintoit.Elbow grease

washermetaphor forherexperience atHershey, andsheconnected thedots toMiltonHershey himselfandthankedhim. “Mr.Hershey puthiselbowgreaseintomakingtheperfectchocolate bar,”Neelysaid.“WhenMr.Hersheyfinallyexperienced masssuccesshe

didnotspendhisfortune selfishly. Rather helistened toCatherine’s suggestionandbuiltthisschool. Hewanted ustoknowthatinordertohaveour ownsuccesswewouldhavetolearnhowtouseourelbowgrease.Weare eternally thankfultotheHersheys fortheopportunities theyhavegivenus andthelessonstheyhavetaughtus.”

Shethankedthestaff.“Houseparents, youhavebeenforcedtousea lotofelbow grease whileworking withus,”Neely said.“Through mytime

hereI couldseethestresswrittenonyourfaceswhenwepinthingssuchas unlikable rulesandpolicies onyou.Itwasobvious thatyouwerestruggling nottotakeyourfrustration outonthestudent.Through thosehardtimes...

youalways foundawaytoteachuslifelessons.” Neelytoldofherhousefather whotaughthertomanage hertime.

“Manytimeswethoughthewasjustbeingcruel.Wedidnotrealizethathe wasgivingusthetoolsandskillswewouldneedforcollege andbeyond,” shesaid.Shealludedtothehardshiponherfamily. “Perhaps thepeoplewho

usedthemostelbow grease wereourfamily members. Youmadethebiggest sacrifice. Yousentyourchildren away. Youstruggled toletusgo.Butyou

didit.Thereweresomanytimesthatwerantoyoucryingthatitwastoo hardhere,”Neelysaid.“Wedidnotwanttobehereanymore. Wewantedto

benormal teenagers. Fortunately though, youhavestoodstrong, said“No, andsentusrightback.”

Neelylookedaheadtowardafutureofelbowgrease.“Classof2012,as webeginourfinalhoursatMHS,Iencourage youtoremember allthegood timesyouhavehad,butmoreimportantly Iencourage youtoremember the

120/ THE CHOCOLATE TRUST

struggles. Those hardtimesthatwefacedtaughtusimportant lessons for life.Byremembering thosetimeswewillremember thelessons weneedto

know.Aswemoveonwithourliveswewillfacedifficulties andhardtimes. Justremember, with alittle elbowgreasewecangetthroughanything.” Studentsin theseniorchoirensemble sangKatyPerry’s“Fireworks,”

andchiefoperating officer Gurt,an’85graduate, toldthecrowdthatof the192graduating seniors, 41students hadattended theschool sincethe

elementary grades.Gurtsaidthat54percentofthegraduatingstudents intendedtoenterafour-year college, and33percentatwo-year institution. Theremaining studentswouldentertheworkforce orthemilitary. Nowthemomentthestudentshadbeenwaitingforcame.Seniorboys struttedandchest-thumped astheywalkedto acceptdiplomas.Family

members andfriendshootedwithjoy.Seniorgirlsplayfully waltzed on thestage.Sesay Bayoh, aReading girl,hadenrolled in2004,andhopedto

bea nursepractitioner. Shegavethefarewell speech,comparing hertrek throughtheHershey School asatriathlon—a grueling running,swimming

andbikingrace.“Ihavecrossed thefinishlinewithmyheadheldhighand

withallthatisleftofme.”Shespokeofhomesickness onherfirstdaysat Hershey, andhowshedidn’tknowwhattoexpect—she thoughtshewould begoinghomeandnotstayingthere. “Mymotherlookedatme,kissedmegoodbye, andwalkedawaywith tearsinhereyes.I didnotunderstand whatwashappening. Ijustdidwhat

Iwastoldandstayed. Thenextmorning Iwasreadyformymother tocome andgetme.I wasinthemudroom withmybagspacked looking outthe

window. Whenmyhousemother wokeupandnoticedme,shetoldmethat mymotherwasnotcomingbacktoday;thatwaswhen I realizedthatthis waspermanent. I felt,aswehaveallfelt,asifI waspushedintothewater

andtreading tokeepmyheadabove thewaves.” OverthelastChristmas break,Sesay toldthecrowd, hermotherhad

beenadmittedtothehospital,anddiedonJanuary18,2012.“Iwasatmy weakest point.Thefuturewasblurryandseemedhopeless. However, I still hadstrengthtomakeitupthemountain. Withthehelpofteachers, house-

parents, staff, counselors, teammates, coaches, friends andfamily, Iwasable

tomakeitoverthemountain. I neverfeltmoreloveandsupportfromthe schoolthanduringmytimeofhardship. Theypushedmeoverthemountaineventhoughmytireswererunningoutofair.”

Shequickly brought herspeech around toMilton Hershey. “Obstacles,”

shesaid,“maycomeourway,anditisokaytogettiredinarace;however, itis

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howyoufinish thatmakes allthedifference. Milton Hershey portrayed that countless timesbypersevering through hisfailures tocreate achocolate bar.” Afterthe90-minute ceremony, thestudents andtheirfamilies gathered intherotundaofFounder's Hall.Thiscouldbethelasttimetheysaweach

otherastheytooktheirnextsteps,scattering todifferent partsofPennsylvaniaandthenation. MartaylaPoellinitzhadcometo theHersheySchoolwhenshewas

eightyearsold.Shewasoneofsixchildren ofasingle motherinHarris-

burg.Fiveofthesixchildreninthefamilyendedupattending theHershey School—she wasthesecondyoungest. “Thehardestpartwasadjusting to therulesandthehouseparents,” shesaid.Shesaidshehadwantedtoquit inhermiddleschoolyearsbutstuckitout.Sheplannedtoenrollinthefall inDuquesne University. Hopefulofsuccess, shesaid,“Ilearnedsomany

thingsherethereisnowayIcouldfailunless Idon'ttry. Monazia Joseph-Ward, 18,ofLebanon, Pennsylvania hadattended the school forfouryears.Shehadn’t wanted tocome,buthermother, Chaka

Ward,“wouldnotbudge,”thegirlsaid.Shedescribedwitha laughthe mostimportantlessonoftheschool:“Onething,I knowhowtocleanvery

good.” Sheadded, seriously, “Iknowhowtoassociate withotherpeople.” Sheintended toattendcosmetology school. Monazia’s mothersaidtheschoolhaddonewhatshehadhoped.“Look ather,”shesaid,referring toherdaughter. “IfshewasinLebanon shewould

havebeencutting school andrunning aboutthestreets.” Dereck Perez, ahandsome 18-year-old fromHarrisburg, hadenrolled in Hershey atfouryearsold.Hismother wasjailed,andhisauntandgrandmother wereraising him.“They saiditwasbetterforme,”hesaid.“They

saidI wouldcometo appreciate it.”Heintendedto attendShippensburg

University andstudyjournalism. Alusine Barry, 18,ofsouthwest Philadelphia commented, “They taught

methatifyouhaveyourheadonstraight, you'llbeokay.” Barryhadenrolled intheseventhgradeathismother’s insistence. “Thiswasabetteroption. Theonlyoption,” heamended, notingthattwoofhisbestfriendsfromfirst gradeinPhiladelphia wereservingprisonsentences. Heplannedtoattend

Central PennCollege forfashion design inthefall.“IthinkI'mready.”

g KOONS Danger onCampus; aSerial Pedophile “MygutfeelingisthattheyweretryingtoprotectMiltonHershey [School] andhopeitwould justgoaway.YouknowHershey is Hershey andtheyhavetoprotecttheHershey name.” —THEMOTHER OFABOYMOLESTED BYSERIAL PEDOPHILE CHARLES KOONS 2D

"HEGRAYING formerHersheySchoolhockeycoachwasnow48years old,andhisaccuserwas24.Theyhadmetyearsearlierwhenhewasa

younger man,andhisaccuser wasayoung boyinthecoach’s car,his

apartment, aHershey School lockerroomandsupplycenter.Theyengaged intouching, oralsexandwatching X-ratedmovies. Themolestations continuedevenaftertheschooldismissed thecoach. Theoldermandeniedthe27felonyandmisdemeanor counts,butina preliminary hearingonFebruary20,2014,DistrictJusticeDominicPelinoorderedhimheldfortrial.TheHershey Schoolhadnocomment inthe Patriot-News onthedayofPelino’s decision, thoughTrustspokeswoman LisaScullindownplayed theincidentwhenpolicefirstdisclosed itin2013. “Itisdeeplyupsetting,” shetoldthenewspaper, “tolearnofallegations that

oneofourstudents wasabused whileinourcare.”

Actually, itwasthemostrecentone. Overtheyears,sexualincidents betweenstaffmembers andimpoverishedstudentslivinghoursawayfromhomehavebeena systemic prob-

lematthechocolate-funded Hershey School, which advertises itselfonthe

Internetandmailingsasa compassionate safehavenforvulnerable boys andgirls.Theschoolhaspublicly admittedthatitcan’tpreventitsstudents fromhavingsexonitssprawling campusofoverseveral thousandacresand

morethan150buildings andhomes. Butithasn’t publicly acknowledged thefarmoreinsidious problem ofstaffers preying onstudents. Thiscan

KOONS / 123

onlybepieced together through courtfilings andpolice reports. Longtime observers oftheTrustbelieve thedocuments giveonlyapartialaccounting

ofsexabuseat theinstitution.Someofthesexabusealsoisofthestudent-on-student kindprosecuted injuvenilecourt.According tomultiple policedepartments andcourtdocuments:

In1995and1996, aHershey School housefather downloaded pornographyontoaschool-owned computer andshowed ittoeightgirlsunderhis

care.Hewas“convicted ofindecent assaultontwoofthegirlsfortouching one12-year-old girl’sbreastsandanother14-year-old girl’sbuttocks,” afederalgovernment sentencing memorandum forthehousefather disclosed in

2013. Bythetimeofhissentencing, hewas a repeat sexual offender. Hisfirst

offense hadbeenabusinganimals. In2001,theDerrypoliceprosecuted amarriednurseattheschoolfor engaging in anaffairwithafemalestudent. In early2002,theDerryTownship policearresteda HersheySchool

housefather forhaving sexwithafemale student inhishome.Hewas54

yearsoldandshewas17. In2006,a 30-year-old femaleEnglishteacherpleadednocontesttoa chargeofcorrupting a minorafterengaging inasexualrelationship witha

17-year-old malestudent. ADauphin County judgesentenced herlaterthat yeartotwoyearsofprobation anda$500fine,according tocourtrecords. In2007,apart-timedruminstructorattheHershey School admittedto havingconsensual sexwithanunderage femalestudentduringatriptoher

homeinNewHampshire in2007. Thetwostayed overnight inaDaysInn

inWindsor, NewYork.CourtrecordsinNewYorkshowedtheinstructor waschargedwithdisorderly conduct,sexualmisconduct andendangering

thewelfare ofachild;hewasfined$250.

DauphinCounty’s mostprolificpedophile ofthemodernera,Charles

Koons 2d,preyed onyoungboysasheaccompanied hismother, asubstitutehouseparent, onweekends totheHershey School. Thedetails ofKoons’ molestations andeventualcapturepointtothedangersofparentssending theirchildtoaresidential facility, andrevealtheincompetence ofHershey Schoolofficials andlocalpolice.Specifically, officials andpolicefailedto

respond toanApril2,1998 sworn statement bya grief-stricken mother who

saidhersonhadbeenmolested asa 10-year-old boybyKoons. “Duringthisconversation wewerebothcrying,” themotherwrotethe policeandtheschoolinthenotarized statement whendisclosing thealleged

abuse. “[My son]askedthatI stopcryingandItoldhimthatIwascrying

124/ THE CHOCOLATE TRUST

because ofthissortofthinghappening tohim.I asked whyhenever toldme thatthiswashappening tohim.Hisresponse wasthathedidn’twantmeto feelguiltyaboutsendinghimthereinthefirstplace.” TheboyhadattendedtheHershey Schoolforonlyafewmonthsinthe

late1980s. Otherboysinthehomewentcamping fortheweekend, leaving himbehind withapart-time housemother andherson,Chuck. “While he wasinbedsleeping, Chuck Koon[sic] cameintohisroomandwoke himup

andhadhimgowithChucktothebackroomwheretheykeepraincoats,” themotherwrote.“ChuckKoonspulleddownhispants,exposinghim-

self....As thiswasgoingon,Koons reached downandgrabbed [herson’s]

penis. “TheyweredisturbedbyMomKoons,whowaswalkingbythisroom. ChuckKoonsatthistimeplacedhishandover[herson’s]mouthandmade

asoundlikethesoundofthelettersSandHtogether, sothatMomKoons wouldn't hearthem.Whenshepassed thisarea,Chuck told[herson]togo

backtohisroom,whichhedidandwentbacktosleep.” Themothernamed asecondboywhomKoonsmayhavemolested, aswellasthefull-time house parentsatthecottage.

Police hadanameand a specific incident inaspecific grouphome, and theyhadavictim andanupsetmother. Derrypolice assigned Detective Les-

lieMealstoinvestigate, andtheHershey Schoolappointed a topadministratorasaliaisontohelpthepoliceobtaininformation. TheHershey School

administrator reassigned thetasktoalower-level staffer because ofafamily emergency. Nothing happened withtheKoons investigation between April 1998, whenthemother sentthenotarized letter,andNovember 1998.

In December, theboy’sattorneycalledthepolicedepartmentto ask aboutit.“Isearched thecase,”aDerryTownship sergeant wroteonDecember16th.“Despite thefactthatI hadseveraldiscussions withDetective

Mealsonthiscase,andadvised heronwhatactiontotake,noactionor

supplementation wastakentodate.” Thesergeantassigneda newdetective, StevenP.Coulter,tothecase. Coulterspokewiththeboy’smother.“Shewasextremely upsetthatnothing

hasbeendone,andaskedwherethenotarized statement shehadsentup

here[was]. ItoldherIhadnoidea,andwouldcheckwithRecords,” Coulter wroteonDecember 21st. CoulterspokeinearlyJanuary1999withBethShaw, theHershey School

staffer andliaison. OnJanuary 5th,“Coulter metDr.BethShawatMHS Kinderhausto discussthis incident.Shawadvised[that]DetectiveMeals

KOONS / 125

hadneverspoken toherinperson regarding thisincident, andinfactShaw hadinhernotesthatMealscontacted herbyphoneapproximately October 10,1998.”

ShawinformedDetective Coulterthat“shewasundertheimpression thatMr.andMrs.Koonshadbeenhouseparentsatonetime,andthatMrs.

Dorothy Koons wasstillserving asasubstitute houseparent.Shelooked uptheaddressforMrs.Koons,anditwasthesameaswehadforCharles Koons.” Theschoolreleased confidential information tothepoliceabouttheboy whoclaimed hehadbeenmolested—information thatseemed tocastdoubt

onhischaracter. There wasanincident ofsexual behavior toward hissister, andbullying. InMay1995, theboytoldhismother hewould “doanything”

togetoutoftheMiltonHershey School, theschooltoldpolice.Themother hadwithdrawn him.

Coulter contacted theboy’s attorney andtoldhimheneeded a separate

swornstatement. Theboyresponded onFebruary 4,1999. “OnenightI was

asleep,” theboywrote. “Some ofthekidswereonacamping tripincluding

myroommate. ThatnightChuckKoens[sic]cameinmyroom,wokeme

up,andtoldmetocomewithhim.I thought hewasgoingtoletmestayup

towatchTV,butwewenttotheraincoatroom.Hedroppedhispantsand tookmypantsdown.Hehadmeplacemyhandsandmouthonhispenis asherubbedmine.I remember beingscaredatthetime,butalsoashamed. Ithappened foraboutfiveto10minutesandthenheheardhismotherand gotscaredandhehadmepullupmypantsandpulleduphis.Hesentme

backtomyroom.Icouldn't tellmyparents because Iwasashamed ofwhat

happened. ButI finallydid.Ihopethisisenoughimformation [sic].” OnFebruary23rd,theboy’smothercalledDetective Coulterto ask abouttheinvestigation. ShetoldCoulterthathersonhada newattorney.

OnMarch 11th, Coulter reported thatShaw “was getting alltheinformation Ineeded...and wasgoing tocallmewhenshehadthestuffready.” OnApril 5th,CoulterwrotethatShawtoldhimshehadtheinformation, butthat

“shewould beoutoftownuntil041299. Iwillbecalling herandsetting up ameeting for041299 or041399.” Thatwasit,thelastreference totheinvestigation inpolicefiles.The

internalDerrypolicenarrative oftheinvestigation endstherewiththeplans ofalocaldetective andaHershey Schoolstaffertomeettodiscussa sexual molestation claimatthenation’s richestresidential facilityforpoorkids, whichhadoccurredoveradecadeearlier.

126/ THE CHOCOLATE TRUST

INFORMATION ontheKoons’ investigation gathered dustintheDerryTown-

shippolicefilesforyears.In2007,asecondmotherbroughtCharlesKoons totheattentionofpolice.Shetolda patrolofficerin nearbyMiddletown BoroughPoliceDepartment abouta gangster-pose photoofhersonthat

KoonspostedonhisMySpace page.Shethoughtit weird.Itmadeher

uncomfortable. Thepatrolofficer passedtheinformation toDetective David Sweitzer, whospecialized in sex-crimes investigations inthesmallworking-class boroughnearHershey andHarrisburg.

Sweitzer looked attheMySpace page,andthought itcouldbethatof

a molester. Buthehadnocriminalcasebasedona socialmediaposting. Hetoldthemothertowait.Monthslater,a different boydisclosed tothe DauphinCountychildren’s servicesagencythata man—anuncle—had

molested himyearsearlierinMiddletown Borough. Sweitzer connected thedotsofthetwostories. Police arrested Charles Koons athisfactory job in August2008andsearchedtheapartmenthesharedwithhisparents, seizing12,000pornographic images.Manyoftheimageswerecontained

oncomputerstoragedevices.Oncein custody,Koonsconfessedto molest-

ingnotjusttwoboys,buteight.Oneofthem,hetoldthepolice, hadfatally overdosed. Sweitzer hadKoonsin custodyanda confession. Butthe detective believed thereweremorevictims,potentially manymore.Helearnedthat Koonsnetworked throughfamilyandpeopleinhisapartmentcomplex to

meetyoung boys.Hecameoffasahappybuddy withacar.He’ddrivethe young boysaround inhisBuick andshootofffireworks. Hemolested them inhiscar,inahotel,inaparkandunder a bridge. Someoftheboyswereasyoungasfourorfiveyearsold.Sweitzer found enoughvictimstofilla classroom. Buthebelieved hewasmissingsome.

Among Koons’ possessions were alist ofboys’ names inhiswallet andboxes offadedsnapshots. OneoftheboyshadonaBatman costume. Averyyoung

Koonshadhisarmdrapedaroundanotherboy.Therewasaphotoofaboy’s privateparts.Whoweretheseboys?Wherewerethephotostaken?They

didn’t seemlikeanyofhisrecent victims.

Sweitzer anda fellowdetectivekeptcomingbackto thefadedphotos—where weretheytaken?Finally, hispartnerremembered. Hehandled a canineunitthathadsweptHershey School’s grouphomeswithdogsfor

atraining exercise. Herecalled thebathroom tilework; thesametilework

wasvisibleinoneofKoons’ fadedsnapshots. Sweitzer contacted theHer-

KOONS / 127

sheySchool toarrange forteachers tolookatthephotos. Teachers putsome names withfaces. Oneoftheboystheyidentified hadoverdosed—as Koons

hadsaid.Sweitzer trackeddownformerstudentsinIndiana,Ohio,FloridaandPennsylvania forinterviews, butnoneofthestudentstoldSweitzer they'dbeenmolested byKoons.

OnenightalmostayearafterKoons’ arrest,andtwoyearsafterthe mother firstcomplained abouttheMySpace page,aMaryland mancalled Sweitzer’s officeandleftavoicemessage. ItwasJune2009.Themansoundeddrunk.HehadreadabouttheKoonsarrestontheInternet.Hesaid

hehadinformation. He’dbeena formerHershey School student, living intheRevere student homein1989. HismothertoldtheDerryTownship Police thatKoons hadmolested him.Withthistip,Sweitzer approached the DerryTownship police.Thedepartment produced theincomplete fileonthe investigation from1998and1999.

TheDauphin County District Attorney eventually prosecuted Koons for 17molestations oflocalboys,someofthemfromtheapartment complex

whereKoonslivedwithhisparents,andoneHershey student.Thestatute oflimitations hadrunoutontheotherHershey Schoolstudentswhocame forwardashavingbeenmolested byKoons.ButtheHersheySchoolitself

facedpotential civillitigation fromthoseotherstudents. Eventually, the

schoolpaidthreemilliondollarstosettlefiveclaims.Schoolspokeswoman ConnieMcNamara saidtheinstitutionwas“brokenhearted bywhathap-

penedhere.” Theschool wastryingtomakeitrightwiththefinancial settlements. “Webelieved whattheindividuals werealleging,” shesaid.“We foundittobetrue.” WhiletheHershey School studentsobtainedonaverage $600,000 each, thelocalboyswhoweremolested byKoonsafterDerrypolicelettheinves-

tigation lapsehadnoonetosue.Theschool couldn't besuedforbadpolice work,andthepolice department couldn’t beheldliable. Themother ofone

ofthoseuncompensated victimsspoketo memorethana yearafterthe ordeal,overlunchinarestaurant inCentralPennsylvania. SheblamedherselfforbeingnaiveaboutKoons.Shecookeddinnerwithhim.Shebelieved

himwhenhetoldherhewasaprofootball scout.Shehadn'tsuspected anythingwaswronguntilshesawtheTVnewsonthedayofhisarrest.She criedwhensheheardthathehadn'tbeenprosecuted inthelate1990sover theallegedHershey School molestation. Shewantedtospeakout.Butother

mothers didn’t wanttobringattention onthemselves ortheirboys.Shame waspartofit.Mothers ofthechildvictims hopedthenightmare would end

128/ THE CHOCOLATE TRUST

andtheirboyswouldn'thavepermanent psychological damage.Plus,they fearedbattlingthepowerful Hershey TrustanditsPRmachine. “AllI couldthinkaboutwasthatallthisdidn’thavetohappen,” the

mother said.“Mygutfeeling isthattheyweretryingtoprotect Milton Hershey[School] andhopeitwould justgoaway. YouknowHershey isHershey andtheyhavetoprotecttheHershey name.”

THE TRUST settledtheKoonscaseinearly2010,andhopedthesexscandal

wouldfade.Butanotheronewasbrewing. TheInternet service provider AOLhadflagged emailed child-porn images inlate2009intheHershey

area,andinformed theNational CenterforMissing andExploited Children. Expertsidentified theimagesasthe“Trevor” seriesandthe“Dalmatian” series.

“Oneoftheimages isanudeprepubescent boysitting ontopofanadult male,whoisalsonude,” readacourtdocument. “The adultmaleistouching

hisownpenisandthepenisoftheboy....One imageisofanudeprepubescentboybentover.Thereisa closeupofhisgenitalsandbottom....Three imagescontainaprepubescent boywithanadultmaleputtinghispenison

theboy’s mouth.” Theflagged emailbanterbetween twoindividuals wasmoredisturbing.

FBIagentslocatedoneoftheemailers intheHershey area,andtheyraided theTrust-owned homeofWilliamCharneyinFebruary 2010.Helivedon Meadow LanenearFounder’s Hall.Law-enforcement officials seizedalmost

700child-porn images andabout40videosalongwithcomputers, iPods andstorage devices. Charney livedwithhiswife,Mollie, andtwochildren.

Oneobviousconcernforinvestigators astheypursuedthecase:Had Charney donemorethanlookatchild-porn videosandphotosonacampus ofabout1,000impoverished children? Hehadlivedandworkedtherefor

almost10years, firstasahouseparent andthenasahousing administrator.

TheschoolpromotedCharneyandpresentedhimasa modelemployee. Withonlinechild-porn becoming anationalpolitical issue,researchers were makingaconnection between child-porn viewers andchildmolesters. One widelyreferenced onlinearticleonthetopichadappeared intheJournalof

Family Violence inDecember 2008. Michael Bourke, chiefpsychologist with

theU.S.Marshal’s Service andoneofthearticle’s researchers, devoted years toevaluating andtreatingsexoffenders infederalprisons.Reliable informa-

tiononchild-sex offenders andtheirvictims hasbeendifficult togather, but Bourke saidthatlivingwiththeoffenders andgaining theirtrustallowed

KOONS / 129

himtodevelop relationships withoffenders, andgavehiminsightintotheir thinking.“Howmanypeoplewhohavecollected 10,000 baseball cardshave nevergonetoabaseball game,orplayedbaseball, orthoughtaboutplaying baseball?” Bourkeaskedmeina phoneconversation. “People collectthat

which theyareinterested in.”Formolesters tofinda“perfect victim,’ they need“tobearound manyofthem,” headded. Bourke hadnoknowledge of theCharneycaseandwasspeaking generally. TheU.S.Attorney inHarrisburg formally chargedWilliamCharneyin

February 2011 withonecountofreceiving anddistributing childpornography.Apressrelease disclosed thecharge, identifying Charney bynameand disclosing hislivinginHershey. TheHershey School confirmed hewasan employee andsaidthatnoneoftheimageshadbeenofHershey School students.Butneithertheschoolnorfederalprosecutors disclosed publicly that

helivedontheHershey School campus amidstthestudents. TheHershey livedhours ofwhom many parents, alsodidnotinformstudents’ School away.TheseparentsdidnothaveaccesstoHarrisburg-area newspapers or TVstationsthatwouldhaveallowed themtolearnofthepresence ofachild pornographer ontheschool’s campus.

OnOctober 20,2011,Charney walkedintotheHarrisburg federal

courthouse onWalnutStreet,aboutthreeblocksfromtheSusquehanna River.Forty-three yearsoldandaretiredNavyofficer, hewasdressedina blueblazer,khakipants,docker-style shoes,whiteshirtandtie,andseemed ingoodspiritsonthatcrispmorningdespitehisappointment with a federal

judgeforsentencing. Hehadpleaded guiltyinApril. Charney looked rested butolderthanwhenheappeared inaHershey School yearbook photowith othertopadministrators. Family andfriendsaccompanied himthroughthe

metaldetectors andtotheelevator takingthemtotheeighth-floor courtroomofthegrandmotherly JudgeSylvia Rambo, whohadsentenced formerattorneygeneralErniePreateyearsearlier.Charney leanedagainstthe courtroomdoor,waitingforanemployee tounlockit.TherewerenoT'V

cameras andnorepresentatives fromtheHershey School inattendance. The

familyandfriends,theprosecutor, onlypersonthere,otherthanCharney’s Charney’s attorney, courtemployees andthejudge,wasme. JudgeRambobeganthesentencing hearingpromptlyat 11a.m.The an assistantU.S.AttorbyDarylBloom, wasrepresented U.S.government

hadbeen ofCampHill.Theschool Boyle wasDennis lawyer ney;Charney’s him andhadasked students, mighthavemolested thatCharney concerned in court said Boyle judge. toldthe B oyle test, a lie-detector to submitto

130/ THE CHOCOLATE TRUST

documentsand at thesentencing that Charneypassedthe test.Connie

McNamara, theschool spokeswoman, saidinanemailthatCharney volunteered forthelie-detector testandtheschool accepted hisoffer.“It’sa

difficult casebecauseMr.Charneyis trulya goodman,”BoyletoldJudge Rambo.Charneyhada compulsion; hedownloaded theimagesandthen deletedthem.Thecompulsion beganwithhomosexual pornography and

progressed tochildporn.Hehadtwochildren andanintactmarriage. He wasa decorated military officer. Charney included lettersofsupport from

hismotherandsister,a cousin,anda ministerin hissentencing memoon filewiththecourt.Hecitedchildabuseasa mitigating factor.Rambotold himtherewerefactorsthatcouldcontribute to leniency, butshewastroubledbya checkthatCharneywrotein orderto meeta teenageboy.Boyle

saidthatthemeeting nevertookplace. Charney expressed remorse, saying, “Theshame wasoverwhelming andI didn’tknowwhattodoaboutit....]

apologize formyactions.IwishtherewasmoreI coulddo.” Thejudgesentenced WilliamCharneyto morethansevenyearsin federalprison.TheTrustissueda statementafterward, andconfirmed that

Charney hadlivedoncampus foryears.“Milton Hershey School isa safe placeforchildren,” theschool’s statement read.“Noschool iswithout isolatedinstances ofproblems andtheyareheartbreaking whentheyoccur.We doeverything humanlypossible to preventthemandwelearnfromthem

iftheydooccur. Buttheseisolated instances arenotthestoryoftheMilton Hershey School. ThestoryoftheMilton Hershey School isthestoryofasafe environment forchildren tolearnandgrow.”

16 SORRY KID, NO HIV INHERSHEY Justice Department Investigates; theTrust

Settles for$700,000

“Despite ourbestefforts, some ofourstudents willengage insexual activity withoneanother. Given ourresidential setting, when they do,theywillbedoingsoonourwatch.” —HERSHEYSCHOOLSTATEMENT POSTEDONWEBSITEIN 2011

#) NARUNDOWN BLOCK inCenter CityPhiladelphia, theoffices oftheAIDS | LawProjectofPennsylvania couldbefoundinearly2012,alongwith

w aboarded-up Chinese restaurant, aSprint phonestoreandastate-run liquor store.Oneunseasonably warmdayinlateJanuary, withreggae music playing outside theEZBargain discount store, pedestrians hurried pastpanhandlerstowardCityHallinonedirection, ortheThomas Jefferson Hospitalcomplex intheother.RondaGoldfein, theAIDSLawProject's executive

director, welcomed meintotheagency’s modest offices. “Wearegrateful for alandlord whodoesn’t always expect hispayment rightontime,” shesaid.

Goldfein andI satdowninherofficewitha secondlawyer, SarahR.Schalman-Bergen, andtheytoldmethestorythatledtotheirlittleorganization takingonthewealthy andpolitically connected Hershey Trust.

Thestorybeganwitha 13-year-old boywithHIVwholivedwithhis

singlemotherinoneofPhiladelphia’s oldersuburbs. Theboycontrolled his HIVhimselfbytakingfivepillsandavitamina day.HehadA’sinschool andplayedsports,andhedidnotwantHIVtoruinhislife.Afterresearch-

ingprivate schools, hehadselected theHershey School because itwasfree, aboarding institution, andoffered apathtocollege through itsscholarship program thatawarded asmuchas$80,000 tokidswithgoodgradesand behavior.

Theboy’smotherdidn’tthinkitwasa goodidea.Hewassick,and shewasafraidarejection couldcrushhishopes.Sherealized thatevena

132/ THE CHOCOLATE TRUST

multi-billion-dollar child-care institution thatadvertised itselfonitsWeb

siteandinbrochures ascompassionate andnurturing couldreactnegatively

totheideaofenrolling a boywithHIV. Buttheboytoldhismotherhehadthelawonhisside.Thiswas2011,

not1981. Hismother consented, andaskedherson’s healthcare casemanagerattheChildren’s Hospital ofPhiladelphia tolookintoit.LayladeLuria

contacted theHershey School. AHershey School official seemed tocuther

offquickly, tellinghertheinstitution “didn’ttakekidslikethat.”DeLuria contacted Hershey School medicalstafferHelenBurkabyle andadmissions

director DannyWarner. Burkabyle tolddeLuriatosendtheboy’s medi-

calrecords,anddeLuriafaxedthemonMarch3,2011.Theboy’smother completed Hershey’s enrollment application inApril.Theschoolformally rejected theapplication inlateJune.

Ronda Goldfein fellintoHIV/AIDS advocacy afterleaving alucrative legalcareerdefending doctors inmalpractice casesandinsurance companiesagainst asbestos claims. Shequitherbrother’s firmin 1992, hoping

tofindsomething morefulfilling. Aroundthistime,shelearnedofissues relatedtoHIV/AIDS throughtheexperiences oftwofriends.Achildhood

friendhadlearned thatsheandherbabyhadAIDS. Thefriendthought she contracted thedisease fromarape.Asecond friendreceived anHIVdiag-

nosisastheresultofa routinebloodtest.Goldfein readthatthePhiladelphiaBarAssociation offered freelegalaidtopeoplewhowerediscriminated againstbecause theyhadHIV/AIDS; theprojectwaslookingforvolunteer

attorneys. Goldfein hadfoundhercalling. HIV/AIDS activism wasbiginPhiladelphia intheearly1990s. Hollywoodreleased themoviePhiladelphia, withstarsTomHanksandDen-

zelWashington, in 1993.ThemovietoldthestoryofaPhiladelphia lawyer whosuedhislawfirmforwrongful firinginoneofthenation’s firstAIDS

discrimination cases. Thefilm’s treatment ofissuesofhomosexuality and homophobia wasunprecedentedly directforthetime.Crews shotthecourt

scenesin CityHall,twoblocksawayfromGoldfein’s office.In themovie'sHollywood-style ending,thePhiladelphia lawyerwonthecourtcase againsthisformerlawfirm.Movieviewerscameoutofthefilmfeeling

good,thoughtheHollywood storyseemed aheadofthen-prevalent atti-

tudesinitsunderstanding andtreatment ofindividuals withHIV/AIDS. Onaregionallevel,theAIDSLawProjectandotherorganizations came intoexistence tohelpthosewhofaceddiscrimination becauseofthedis-

ease.Society's perceptions ofthedisease began tochange andfearseasedas

SORRY KID, NOHIV INHERSHEY / 133

medicalresearchers developed medications, so-called cocktails, tocontrol

thedisease. TheSupreme Court,meanwhile, expanded theAmericans with Disabilities Actof1990toinclude people withHIV/AIDS. Butdiscriminationpersistedforyears.In2008,theprojectfileda complaint withthe Pennsylvania HumanRelations Commission againstastate-licensed Medicaid-financed personal-care homewhenitexpelled a 36-year-old woman

whowasschizophrenic andincontinent. Thewoman’s HIVwasdiscovered whenthemedical staffaskedabouthermedications, andsherevealed that theshingles, forwhichshehadmedication, wasaside effectofhavingHIV. Shamedbythewaytheyhadtreatedher,thewomanleft,andentereda homeless shelter.Socialserviceofficials latertransferred hertothelock-

downunitofapsychiatric ward.InSeptember 2010, Pennsylvania Human Relations Commission ordered thecarehome’s ownertopay$50,000 in compensatory damages forhumiliating her. Inthesummerof2011,themotheroftheboywhohadbeenrejected

bytheHershey School phoned thelawproject’s hotline. Shetoldthemof herson’s story.Lawproject staffers quickly concluded thatifallthefacts

themotherwastellingweretrue,thereseemedtobeverylittledoubtthat theHershey School’s actionswereillegal.“Thelawisclearthatthereisno riskfromcongregate living.Wecouldn’t quitebelieveitwashappening,” Goldfein toldme. Themostlyvolunteer groupchoseitslegalbattlescarefully; nowRonda

Goldfein considered whattodo.Strategically, theproject needed winsto

rallysupporters whocouldcontribute fundsortime.Evenacursorycheckof newspaper clipsrevealed thewealthoftheHershey School, whichcontrolled thechocolate company andmanaged a hugeinvestment portfolio. Thepowerfulandpolitically connected LeRoy Zimmerman, theformertwo-term attorneygeneral, headedtheTrustboard.Goldfein alsowantedtobesure abouttheboy:“I’m a firmbeliever thatifwedidn’tgetagoodvibefromthe client,nooneelsewouldeither.” Shearranged a face-to-face meeting attheir offices. Goldfein gotthevibe.Shecontacted theHersheySchool, andtold themthattheboywantedtoattendinthefall.Whycouldn'the?ConversationsdraggedintoSeptember andthenOctober. Goldfein gotimpatient.

Theboycouldbeattending classes. Shewantedayesornoanswer. The attorney fortheHershey School toldherthattheinstitution believed the boyposedathreattotheotherstudents.

OnOctober 20th,theAIDSLawProject filedacharge withthePenn-

sylvania HumanRelations Commission. Thenextaction—if itgotthere—

134/ THE CHOCOLATE TRUST

would beafederal lawsuit. Goldfein realized thissuitcouldgothedistance. Shealsoknewshe’d havetowinoverthemedia. Shebelieved theboywould

beviewedsympathetically byTVnewsstations,newspapers andwireservicesifshecouldfocuspressattentiononhisstory.Theonecomplication wasthattheboy’snamewasn’ttobedisclosed. Goldfein scannedthecal-

endarforadatetofileafederal lawsuit. December Ist,World AIDSDay,

caughthereye.TheAIDSLawProjectattorneys draftedalawsuitandsent ittotheHershey School’s attorney. “Theydealwithpoorpeople,” shesaid, “andI don’tthinktheywerepreparedforthepushback.”

TheAIDS LawProject filedthelawsuit onNovember 30thinPhiladelphiafederal court,blandly titled,Mother Smith, onbehalf ofherself asaParentandNaturalGuardian, onbehalfofAbrahamSmithv.MiltonHershey School. The13-year-old boynowatleasthada name—though nothisreal one—to whichhecouldbereferred: Abraham. ThesuitquotedtheCenters

forDisease Control andPrevention asfinding nodocumented casesofHIV beingtransmitted throughcasualcontact andnocasesofitbeingtransmittedthroughparticipation insports.TheNationalAssociation ofState BoardsofEducation couldfindnoreasontoexclude anHIV-positive youth fromrecessorgym.TheAssociated Presspickedupthestoryoutofthe

Philadelphia federal courts, theNewYork Times rana story,andthecableTVnewsnetworks ranwithit. ConnieMcNamara, theTrust’sspokeswoman, responded asifit had beenpolitically attacked. Inlegallycodedlanguage, shetoldreportersthat the institutionhadtoprotectitsotherchildren.“Inordertoprotectour

children inthisuniqueenvironment, wecannotaccommodate theneeds ofstudents withchronic communicable diseases thatposeadirectthreat

tothehealthandsafetyofothers,”McNamara toldReuters.“Thereason issimple.Weareservingchildren,andnochildcanbeassumed toalways

makeresponsible decisions thatprotect thewell-being ofothers.” Directthreatwasatermcontained intheAmericans withDisabilities

Act.Thisconceptofferedinstitutions anout,orameanstoignorepartsof theDisabilities Actwithoutlegalconsequence. Thespecific directthreat,

school officials said,wasthepotential forthe13-year-old boytoengage in unprotected sexoncampus afterpuberty. Hecouldthenspread theHIVto

otherstudents. TheHershey School saidithadbeenconsidering asking a federaljudgeinHarrisburg foranopiniononitslegalpositionwhentheAIDS LawProject“tooktheadversarial actionoffilingalawsuit” inPhiladelphia.

TheHershey School posted a statement onthehomepageofitswebsite:

SORRY KID, NOHIV INHERSHEY / 135

Unlike publicschools, theMiltonHershey School isnotrequired toaccept everystudent. Wecanlawfully exclude students whodo notmeetoureligibility criteriaorwherewecannotmeettheneeds ofthestudentinouruniqueenvironment. UndertheADA,weare notrequiredtoadmitanystudentwhowouldposea directthreat

tothehealthandsafety ofothersthatcannot beavoided byreasonablemodifications oftheSchool’s policies andprocedures. Thisis thesamelegalstandardthatappliestostudentswithactivecommunicable diseasesinpublicschools; thedifference isourunique environment.

Duringtheadmissions process, theSchool givescarefulconsideration toanyissuesthatcanaffecttheabilityofourchildren

tolearn,wouldrequireaccommodations beyondthescopeofour programs andservices, orcouldimpactthehealthandsafetyofour studentbody.Whenmedicalissuesareidentified, theyaregiven

careful review. Weunderstand thelawandwefollow it. TheSchool decided thatit couldnotadmitthestudentwho usesthepseudonym AbrahamSmithduetofactorsrelatingtohis HIV-positive status.Thisdecisionwasnotmadebasedonbiasor

ignorance. Weconsidered anumber offactors relating totherisks posedtothehealthandsafetyofothers,andourability toreduce thoserisksandmaintain confidentiality inouruniqueresidential environment. WeknowthatHIVisnottransmitted throughcasualcontact

and,thankfully, thatuniversal precautions canaddress theconcerns oftransmission inatypicalschoolenvironment. Ouruniqueenvi-

ronment, however, alsoposes unique concerns. Asignificant concern

isthatHIVcanbetransmitted throughsexualcontact. Wesystemat-

ically encourage abstinence, andweeducate ourchildren onsexual healthissues. But,asspecial astheyare,ourteenagers arethesame asteensallacross thecountry. Despite ourbestefforts, someofour studentswillengageinsexualactivitywithoneanother.Givenour residential setting,whentheydo,theywillbedoingsoonourwatch.

Thestatement effectively presented theboytothepublicasanHIV-ridden menaceoncampus.Publiccomment forumsinthelocalnewspaper incentralPennsylvania litupwithreaderssupporting theTrust’sposition.But

asmediareports onthecasecontinued, independent legalexperts thought

136/ THE CHOCOLATE TRUST

theTrustwasskatingonverythinice.In1998,theU.S.Supreme Courthad

ruledinRandon Bragdon v.Sidney Abbott thatindividuals withHIVwere

disabled andqualified undertheAmericans withDisabilities Act.Abbott, awomaninfectedwithHIV,hadbeendeniedtreatmentinaMainedental

office foracavity. Othercases werecoming tothefederal courts, too.Oneofthemseemed toofferaguidepost: JaneDoe,asParentandNaturalGuardian, onbehalf ofAdamDoev.DeerMountain DayCampInc.;DeerMountain BasketballAcademy intheSouthern District ofNewYork. Thecamphaddenied admission toa 10-year-old boybecause ofhisHIV,inthebeliefthathe

wouldtransmittheHIVthroughbloodyurineorstoolstoothercampers. Thecampusedthe“directthreat”defense. JudgeDonaldC.Poguerejected thecamp’s claims,saying a directthreat

defense couldn't bebasedonHIVstereotypes. “Thecourt,” Pogue wrotein January 2010, “agrees thatDefendants wereobligated toprotect othercamp-

ersfromaserious,life-threatening viralinfection. Butthisobligation does notexcusetheDefendants’ actionswhenbasedonunsubstantiated fears.” AbrahamSmith’s rejection alsocaughttheattentionofAIDSactivists

inHollywood andNewYork, whocompared himwithRyanWhite,the Kokomo, Indiana, boywhowasn’t allowed toattendpublicschools inthe hysterical earlydaysoftheAIDScrisis.Ahemophiliac, Whitehadcon-

tractedHIV/AIDS throughcontaminated blood.(Itwasnotdisclosed in courtdocuments howAbrahamSmithcontracted HIV;Goldfein declined

toanswer thequestion.) TheRyanWhitecasewaseventually settled inthe IndianacourtsinWhite’s favor. AnAIDSmovement celebrity andicon, Whitediedin 1990.

CNN’sAnderson Cooperaireda “Keeping ThemHonest”segmenton theHershey SchoolcaseinearlyDecember. Dr.Kimberly Manningofthe

EmoryUniversity School ofMedicine toldCooper, “Thiswasa decision

rootedinfearandnotpublichealthconcerns.” Abraham SmithtoldAndersoninwritingthathewishedthattheHershey School would“stopmaking outlikeI’mthisverminthat’souttogetthestudentbodyatMiltonHer-

shey.” McNamara, Hershey’s spokesperson, toldAnderson thattheschool “hadtobalance therisktothoseother2,000students inourhome.” Ronda

Goldfein wrylynotedthattheHershey School apparently thoughtherclient wasadangertoeverystudentthere,evenfirstandsecondgraders. EarlyactionsbytheHersheySchoolcomplicated itsdefense.Plain-

tiffssuingoverHIV/AIDS discrimination havetoproveincourtthatthe

SORRY KID, NOHIVIN HERSHEY / 137

defendant knewoftheirHIV/AIDS infection, andthedefendant usedthat information todenythemajob,housing, medical care,education orother

services. It’sahighandmanytimesinsurmountable legalbar.Defendants candenytheyknewthepersonhadHIV/AIDS orcanclaimtheydenied

themservices forotherreasons. TheHershey School relinquished those defenses whenitsaidrepeatedly andpublicly thatitdidn’t admitAbraham Smithprecisely because hehadHIV/AIDS. Officials evenpostedtherejectionandthereasononitsofficial website, intheprocesspublicly humiliatingtheboy.

TheTrustnowhadonlythe“direct threat”defense tofallbackon.But evenhere,theHershey School hadaproblem. ForAbraham tobea “direct threat”tootherstudents astheinstitution claimed, theHershey School

hadtoindividually assesshim.TheAIDSLawProjectcontended thatthere hadn'tbeenanindividual assessment oftheboy.Theschoolrejectedhim

afterreceiving thefaxthatdisclosed hisHIV. ThePennsylvania AIDSLawProjectandAbraham Smithwonthe

openingmediabattle.Butnowcamethecourtfight.Initsfirstlegalaction, theTrustfiledtolitigatetheHIV/AIDS caseonitshometurfin Central Pennsylvania. LiberalPhiladelphia hadavibrantandpolitically powerful

gaycommunity. Trustlawyers wanted toprythecaseloosefromthereand relocate ittosolidly Republican country inHarrisburg; theyarguedtwo

pointsforthenewvenue.AfederaljudgewouldhavetovisittheHershey

School andseeforhimself theinnerworkings oftheinstitution tofully understand whytheschool rejected Abraham. “The decision nottocontinue

theenrollment process forthispotential studentisbasedinlargepartonthe

unique, residential andhome-like setting oftheMilton Hershey School—a

settingsouniquethatatrueunderstanding ofitanditssignificance inthe decision madehere,willrequirea sitevisitbytheultimatefact-finder,” the Trustwroteinitslegaldocuments.

TheTrust’s second pointwasthatlitigating inPhiladelphia wouldbe

inconvenient forschoolemployees. “These peopleneedtobeattheschool,

or,asneartheschool aspossible, essentially 24/7,” itwrotethecourt.“This isvirtually impossible whentheSchool canbeanywhere fromtwotoany number ofhoursfromthefederal courthouse inPhiladelphia, depending on

thetraffic.Bycontrast, theSchool is20minutesfromthefederalcourthouse

inHarrisburg.”

Seeking a newcourtvenuealsosenttherun-on-a-shoestring AIDSLaw Projectanditsimpoverished teenclienta message: Prepareforabruising

138/ THE CHOCOLATE TRUST

andcostlyfightwithapolitically powerful child-care charityrepresented bytheprestigious Philadelphia lawfirmSaulEwing, withitselevenoffices,

including thoseinBoston, NewYork, Washington andHarrisburg. Ronda Goldfein andherlegalteamwouldn't becowed. Theproject filed

asevidence theTrust’s 990tax-filing withtheInternalRevenue Service that described itsbillionsofdollarsinassets,andnumberofemployees. “MHS’s requestwouldsimplyshifttheinconvenience ofatwo-hour commute from

theSchool toAbraham andhismother, alow-income family represented byanonprofit public interest lawfirm.Incontrast, MHShasclosetoeight

billiondollarsin assetsandapproximately twothousandemployees and volunteers.” Frustration creptintotheAIDSLawProject’s courtdocument. “MHS hidesbehindthelaudatory bannerofprotecting itschildrenasablanket

excuse foritscontinued insensitive andunlawful treatment ofAbraham— whether indenying himadmission toitsschool orseeking tomove thecase severalhoursfromhishome,” itwrote. Some40gayactivistsprotestedin HersheyonFebruary8,2012.One dressedina Hershey's Kisscostume.Fourorfivepolicecarswithofficers

watched theprotest, withanemptypaddywagon. Thepolice warned that iftheysteppedonTrustproperty,theywouldbearrested.Astheywere protesting, peopledrovepastyelling, “Thisisaprivateschool.Theycando whattheywant.” Theactivistsalsoprotestedat theHersheystorein TimesSquare.In

May, about20activists flewtoChicago fortheannual candyindustry expo. Theydressed inbusiness suitstoentertheexhibit space, andonceinside

unfurledpillowcasesthatsaid“Boycott Hershey” and“NoKissesforHershey.”Securityescortedthemoutandarrestedone.“Ofalltheprotests,” saidoneoftheactivists,“Ithinkthecandyexpowasthemosteffective

because itreally pissed themoff.”

TheTrusthadotherproblems. JusticeDepartment hadsentcivilrights investigators to Hersheyto lookintoitshandlingofAbrahamSmith’s enrollment application, lookingforpossibleviolations oftheAmericans

withDisabilities ActandtheFairHousing Act.

THE TRUST BOARD—whose members wereearningaminimumof$100,000 ayearinpart-timedirectors’ fees—were woefully unprepared torespond

tomodern issuesrelated toadmitting aboyorgirlwithHIV/AIDS tothe school. Andthecontroversy wasquickly snowballing intoanational scan-

SORRY KID, NOHIV INHERSHEY / 139

dal.Theboardincluded nonational experts onresidential education, pover-

tyorchildpsychology whocouldoffersageadvice. Theorganization seemed toberelyingonitslawyers, whobilledbythehourfortheiradvice. Atthesametime,theTrustboardwasfacinganinvestigation bythe

Office ofAttorney General overitsbusiness decisions andinternal dramas. Powerful boardchairman LeRoy Zimmerman retiredinlate2011inthe

midstoftheOAGinvestigation andinternalboardconflicts. Meanwhile, alumnus andTrustboardmember JoeSenser wasentangled inasensational mediastorybackathomeinMinnesota.

OnthenightofAugust 23,2011, Senser’s wifewasinvolved inafatal

hit-and-run accident. Shehadstruckandkilledapopularlocalchefwhile drivingthefamily’s Mercedes-Benz ML350 SUVonanexitrampoffInterstate94,andthenspedoff.Anousone Phanthavong’s carhadrunoutofgas

onthedarkened roadandhewasrefilling hisgastank.Police photographed himaftertheaccident: facedown, armssplayed, shoesknocked offhisfeet, hisliverlacerated, ninebroken ribs. Thenextdaythefamily’s attorneyturnedtheSUVintopolicewitha brokenheadlight andbloodonthecarbody.AmyandJoe,meanwhile, took theirtwodaughters onanunplanned overnight trip.Asitbecameapparent

thattheMercedes-Benz SUVwasinvolved inthefatalaccident, theSenser familydidn’tdisclosewhohadbeendrivingtheSUVonthenightofthe fatalaccident. JoeSensergraduated fromtheHershey Schoolin 1974andplayedtight

endfortheNFL's Vikings. Alocalcelebrity inMinneapolis-St. Paul,he

operatedlocalsportsbarsanddida radioshow.Withoutthenameofthe driver,suspicion fellononeofJoeSenser’s daughters fromhisfirstmarriage. Textsreleased publicly manymonthslatershowedBrittaniSensertexting

herdadonSeptember 2nd:“I’msosorrythisishappening. Butdaduneed [to]clearyourname.Thenewsistalkingabouthowmuchofa standup guyu areandthatur a charitable andlovinghumanbeing.It’snoturjob toprotectsomeone whoprobwouldn'tprotectu iftheshoeswereonthe otherfeet.”Inanexpletive-filled textonthesameday,Brittanisaidtoher stepmother: “Amy everyone thinksitsme.Thatisso[messed] upthatbyyou guysnotfessingimgettingthrownunderthebus.Takeresponsibility 4ur actions.Goonlinewatchthenewsthatisso[messed] upAmy.”

BrittaniSenserlatertoldABC’s RobinRoberts, “Ibelieve thatthe defense’s strategy wasthatiftheycouldn't figure outwhowasdriving that noonecouldbeconvicted.”

140/ THE CHOCOLATE TRUST

Tendaysaftertheaccident, AmySenserfinallytoldpoliceinafaxthat

shewasthedriver. Phanthavong’s family wasn'tsatisfied; onSeptember 6, 2011, theyfiledacivillawsuit against AmySenser because ofwhatthevic-

tim’sfamilyperceived aspolicestonewalling. “TheSenserfamilyhasreallyputa lidonthis,”saidthePhanthavong family’s attorney. “There isalotoffrustration inthecommunity withpeoplethinkingtherichandpowerfuldon’thavetoanswerforwhatthey’ve

done.” Abigquestion waswhenJoeSenser knewoftheaccident andwhat hedidthenightofit. AtthecriminaltrialinApril2012,AmySensertestified thatshe'dfirst metJoewhileworkinginoneofhisrestaurants. Onthenightoftheaccident,shedrankpartofaglassofwineata restaurantandscalped a ticket

totheKatyPerryconcert thatherdaughters werewatching. Duringthe concert, shedidn'tfeelwellandlefttogohome. Shehadsecond thoughts— believing itwas“pretty ridiculous todriveallthewayhome,” shedecided toreturntotheconcertarenaandwaitoutsideforherdaughters. Exiting thehighway at Riverside, shestruckPhanthavong. “I'dneverbeenin an

accident, soI didn’tknowifI'dhitapothole oraconstruction sign.” She assumed itwasanorange barricade barrel.Because oftheconstruction, Amygotlostbefore finding herwayhome. Thejuryreturnedaguiltyverdictontwocountsofvehicular homicide. Afterward, reporterAbbySimmons oftheStarTribune interviewed juror

JayLarson. Henotedinconsistencies insomeofthetestimony. JoeSenser explained thataneight-minute phonecallbetween himandhiswifeon

thenightoftheaccident wastheresultofhiskeeping thecellularlineopen whilehewaspickinguphisdaughters andtheirfriendsattheconcert.“I don’tthinkanyofusboughtthat,”LarsontoldSimmons.

AmySenser wassentenced tothreeandahalfyearsinprison.HennepinCounty District Judge Daniel Mabley saidhedidn’t“entirely trust”

AmySenser’s accountofwhathappenedonthenightoftheaccidentbut

he believedshewasremorsefulthat a man died.Afterthe trial,JoeSenser

lashed outatthemediaandapologized fortheunwanted publicity thecase brought ontheVikings football organization. “Wearegoodanddecent, hardworking peopleandIdon’tapologize forhardwork.Theytriedtopaint AmySenserasthisrich,whiteEdinahousewife, andnothingcouldbefurtherfromthetruth.”

Senser’s troubleswereunreported bythemediain Pennsylvania. Through themonths oftheaccident investigation andcriminal courtcasein

SORRY KID, NOHIV INHERSHEY / 141

Minneapolis—the period thatcoincided withtheTrust’s rejection ofAbra-

hamSmithandtheJusticeDepartment’s investigation intodiscrimination attheHershey School—Senser remained anactiveparticipant ontheTrust boardthatcontrolled oneofthenation’s richestprivatechild-care charities.

Theorganization latergavehimadditional responsibilities thatdoubled his

directors’ feecompensation, naminghimto theHersheyEntertainment board.

PHILADELPHIA JUDGE C.DARNELL JONES IIissuedhisdecision onwherethe

“Smiths”casewouldbeheardonJuneIst.It wasa sharpdefeatforthe Trust.Thecasewouldstayin Philly.Litigating in Philadelphia wouldn't disruptschooloperations,Jonessaid.“Thecourtcannotfathomhow a long-standing institutionoftheDefendant’s sizeandstaturewouldbe

unable tofunction merely because afewofitsnumerous employees might havetoappear—one atatime—to provide testimony andpossibly testify

atatrial.” AmtrakranbetweenPhiladelphia andHarrisburg in anhourand35 minutes,andJonesnotedhe’dbeflexible withtraveltimesandscheduling

testimony. “Ifultimately deemed necessary, thiscourtwould bemorethan willing toaccommodate commuting witnesses byallowing presentation oftheirtestimony tobeginafter10a.m.andtoconclude earlyenoughto

returntoHarrisburg ataconvenient timetowards theendoftheworkday.”

Theschool’s venue-change request“failstoidentifythespecific witnesses whowillbeinconvenienced, failstoprovidethenatureoftheintendedtestimony...,’ thejudgenoted. Jonesdidn'tviewthecontroversy asalocalone.“Theissueinvolved in thiscaseisnotuniquely ornecessarily tiedtoMHSortheMiddleDistrict ofPennsylvania butinsteadisrelevant tothelivesofoveronemillionpeoplenationwide, manyofwhomarecurrentlylivingin congregate-living settings,andarenotcreatinga directthreattoothers.” Amonthlater,Hershey Schoolpresident AnthonyColistrasentaletter

toAbraham Smith’s mother, saying theinstitution hadrescinded itsrejectionandwould admitherson.Negotiations continued between theTrust,

theAIDSLawProjectandtheJusticeDepartment. OnSeptember 12th,the Trustsettledthecasewiththeboyfor$700,000. Colistraapologized in a statement postedontheHershey School website’s homepageforwhatithad puttheboythrough:“WehadhopedthatthestudentknownasAbraham

Smith would attendtheMilton Hershey School thisfallandexperience the

142/ THE CHOCOLATE TRUST

life-changing opportunities thisunique environment provides. Heandhis motherhavedecidedthatAbrahamwillnotattend,andwerespecttheir

decision. Iamsorryfortheimpact ofourinitialdecision onAbraham and

hismother.” Thestatement remained onthewebsite formonthsaspartof thesettlement. TheTrustalsosettledwiththeJusticeDepartment’s Disability Rights Section onSeptember 12th.“TheUnitedStates,havingconsidered allinfor-

mation gathered inthecourse ofitsinvestigation, hasdetermined thatwhile

theSchool statesthatitdidnotactwithmaliceoranimustowardAbraham SmithorchildrenwithHIV,theSchoolcannotshowthatenrolling AbrahamSmithorotherchildrenwithHIVwouldposea ‘directthreat’tothe healthorsafetyofothers,” thesettlement stated.

Thegovernment concluded thattheschool violated theAmericans with Disabilities Actanddiscriminated against“Mother Smith.” Theschool agreedtopayacivilfineof$15,000, andtodraftwithin15daysa nondiscrimination andequalopportunitystatement. ThisEOPolicywasto state,inpart,thatchildrenwithHIV“maynotbeafactoronwhichappli-

cants,orcurrent students, maybedenied admission toordisenrolled from theSchool.” TheEOPolicy, basedonthesigned agreement, wastocontinuewitha second,evenbroaderassertiononinclusiveness attheHershey School: “TheSchool doesnotdiscriminate againstapplicants orstudentson

thebasisofdisability.” TheHershey School hadtoposttheEOpolicy onitswebsite anddis-

tributeittoemployees. Through2016,thegovernment couldmonitorthe Hershey School’s trainingofstaffandstudentsonHIV,andtheuseofuniversalprecautions topreventthetransmission ofHIV,hepatitisBvirus,

andotherblood-borne pathogens. According totheagreement, theHershey School alsowould instruct students on“theimportance oftreating individ-

ualswithdisabilities inarespectful andcourteous way”andof“theSchool’s refusaltotolerateharassment orbullying onthebasisofdisability.” RondaGoldfein considered thegovernment oversight andfinancial set-

tlement ahugewin.ButAbraham “didnotfeelwelcome,” shesaid.“Itwas hardfora14-year-old toputbehind himwhattheysaidabouthim.”

11 ABBIE’S DEATH ARevolving Door forPoor Kids Leads toTragedy “Iwouldn't evenconsider sending mychildthereagain.AndI wouldn't recommend ittoanyoneelseeither.I’msodisgusted...” —THEMOTHER OFANEXPELLED MHSsTuDENT

h--

BARTELS, aneighth-grader atMilton Hershey School, seemed to

bedoingfine.ShewroteinherdiaryonSeptember 28,2012,“Imade Goldin mystudenthomethisweek.So,afterschool,theGoldand Spartans wenttothemoviestowatchParanorman.” ShelikedTheVampire

Diaries, Selena Gomez, kayaking, rollercoasters, catsandpainting. Bythefollowing April, though, things werenotgoing wellforher.Abbie worried aboutherdad’sdrinking, andshehadadispute withagirlinher studenthome.Sheseemed tobemoreupsetabouteverything thanshe should be.Hermother, JulieBartels, attributed Abbie’s surprisingly workedupbehavior to“teenage angst.” Sheaskedtheschool ifAbbie couldtakea temporary leave andcooloutonavisittohergrandmother inArizona. Julie didn'tthinkthisshouldbeaproblem. Butaschoolofficial toldJuliethatif shepulledAbbieoutofclasses fortwomonths,herdaughtercouldloseher enrollment. Abbiewouldhavetoreapplyforadmission. Andtherewasno guarantee shewouldbereadmitted.

Abbie hadenrolled attheHershey School in2004whenshewasfour yearsold.Juliewaslaidoffatthetime,andFred,Abbie’s father, wasoutof work.Theylaterdivorced. Theschool’s admissions department evaluated Abbiebeforeaccepting herintotheprogram, andshe’dbeenanexemplary

student. “Thechildren,” Abbie’s momsaid,“really havetobeperfect togo through there.Theyonlytakeperfect children.” Abbie didn’t wanttotaketheriskofleaving theschool. Shehadgrown

144/ THE CHOCOLATE TRUST

upattheHershey School. Shehadfriendsthere;shelikedherhouseparents.

Shefeltsafeinitsrigidly structured environment, andevenfoundwaysto

havefun.Youcouldn'tdowildthingswithyourhaironcampus,asteenage

girlssometimes liketodo.WhenAbbie dyedherhairwithKool-Aid, itwas

onsummerbreak.“Shewantedtobethere,”Juliesaid.“That’s whereshe wantedtogotoschool.ShewasaMilt.That’s whatshewantedtobe.That’s whyIjumpedthroughallthesehoops.” Abbie’s mentalstateseemedtocareenoutofcontrolthroughthespring of2013.OnMay15th,Abbiewroteinherrednotebook, “Ikeepthinking

aboutkillingmyself. Ihavetriedmanytimesbefore. Myonlyproblem’s I

believe andhavefaithinGod,butifI killedmyselfwouldn’t thatmeanI'd gotohell?”

TheHershey School toldJulieinlateMaythatAbbie’s moods hadbeen swinging wildly, andtheyhadsenthertoPhilhaven Hospital foraweek oftreatmentfordepression andsuicidalthoughts.OnMay30th,Abbie

wroteinherdiary:“Thisfucking sucks.It’samentalinstitution! Ifthis

placeasksmetodoonemoreweirdthingI amgoingtoflipout.Ihatethis! I maybecrazy,butnotthatcrazy.Knowing I’minamentalinstitution isn’t goingto makemehappier,whatdotheyexpect!”Severaldayslater,she seemedtohaveturneda corner:“I’mleavingthisplace!Yeah!” Philhaven

discharged heronJune5thwiththerecommendation thatAbbie “receive

aftercare inthesupportive environment of...theMiltonHershey School.” Abbiereturnedtocampusbutdidnotattendregularclasses. School officials watched her.

Ateenage girlwithsuicidal thoughts shouldn't havecomeasa sur-

prisetoaprivateresidential schoolthatrecruitsimpoverished childrenas

students. KarenFitzpatrick, thelongtime girlfriend ofAbbie’s father, had

watchedAbbiegrowup.Shesaid,“Allthekidswhogotherecomefrom someabnormalfamilylife.”Nationalhealthstatistics, moreover, pointed toadisturbing riseintherateofsuicides amongyoungAmericans. More

teenagers andyoungadultsdiedin 1996ofsuicide thanthecombined

deathsfromcancer,heartdisease, AIDS,birthdefects,stroke,pneumonia andinfluenza, andchroniclungdisease,according to statisticsfromthe NationalAlliance onMentalIllness.Thoughthesuicideratehaddeclined modestly inthe1990s, thesuiciderateamongteenagers andyoungadults hadtripledbetween1965and1987. Itwasthethird-leading causeofdeath foryoungAmericans between15and24yearsold,andthefourth-leading causeforthose10to 14yearsold.Between theearly1980sandthemid-

ABBIE’S DEATH / 145

1990s, thesuicide rateforblackmaleteensandyoungadultsmorethan doubled. Supportgroupsandsuicide-prevention organizations offeredadvice, andhealth-care professionals viewedyouthsuicidesastreatable.“Bring-

ingupthequestion ofsuicide anddiscussing itwithout showing shockor

disapproval istheoneofthemosthelpfulthingsyoucando.Thisopenness showsthatyouaretakingtheindividual seriously responding totheseverity

ofhisorherdistress,” theNational Alliance onMental Illnesscounseled onitswebsite. “Even themostseverely depressed person hasmixed feelings

aboutdeath,wavering untilthelastmomentbetweenwantingtoliveand wantingtodie.Mostsuicidal peopledonotwantdeath;theywantthepain tostop.Theimpulse toenditall,though,nomatterhowoverpowering, does

notlastforever.”

Katherine Dahlsgaard, apsychologist attheChildren’s Hospital ofPhiladelphia, toldtheauthor,“Suicide isabsolutely preventable bynoticingthe signsandtreatingitveryseriously.” ScottPoland,apsychology professor at

Nova Southeastern University inFlorida, whoauthored the1989 bookSuicide Intervention intheSchools, added thatthe“vastmajority ofindividuals with suicidal thoughts, particularly adolescent girls,arenotathreattoothers.” Abbiecouldn’tgetawayfromthesuicidalthoughts.Shementioned something toanothergirloncampus.TheHersheySchooltoldJuliethat

Abbie needed moretreatment, andarranged forhertobeadmitted tothe Pennsylvania Psychiatric Institutein Harrisburg. “Shehada complete breakdown atPPIbecause shedidnotwanttogothere,” Juliesaid.“She was crying.Shewasthrowing afit onthefloor.” Insteadofdrawingupamental-health careplanwithAbbie’s doctorsto

helphergetbetter, the“compassionate” Hershey School nowbeganreviewingAbbie’s enrollment status—the firststeptowardexpelling her.Abbie

knewaboutthisdevelopment. Showing hersarcasticstreak,shewrotein herdiaryonJune14th,“People arehavinga wholemeetingaboutme! I feel sospecial.” Pennsylvania Psychiatric Institute’s treatmentfocusedonrebuilding

Abbie’s self-worth. Shewroteof50positive thingsaboutherself. “Myeyes >

>