Seaboard Railroad Fund and Early Issues of Sponsorship

Graham found the Seaboard Railroad Fund in violation of the Graham Plan during the December hearings.  This fund was set up by an outside source, the Seaboard Railroad Company.  There were many questions discussed at the hearings concerning the handling of this financial aid because there was uncertainty expressed by the Seaboard Railroad Company, Sermon, Sermon’s secretary, and the player who mostly received the money over who the check was written out to, how many students the check was supposed to help, and the terms and conditions of the check.  The first excerpt shows the Seaboard Railroad Company’s explanation that the fund’s recipient must work for the company, “just as any other employee.”  Despite the fact that the fund required the student to complete a job, Graham opposed it because the company sought an athlete particularly. 

The Seaboard Railroad Fund also brought up questions about player sponsorship, a major question in today’s college athletic programs.  Originally, the Seaboard Railroad Fund was supposed to aid one player by giving him a part time job.  In the second excerpt provided here, the player who received most of the money, Mr. Bailey, said that he only worked a couple times, mainly posing for pictures that would be on posters advertising the Seaboard Railroad Company.  Professional athletes are sponsored all the time like this today but it remains a major no-no for college athletes.  Mr. Bailey admitted in this excerpt, “Truth be told, I didn’t know what I was doing...,” emphasizing the uncertainty of this fund.  Regardless of the facets of the fund, Graham disapproved considering the fact that the fund originated from sources outside the university.