Financial scarcity forced the Institute to hold members’ salaries hostage to loyalty.

Evidence

But putting aside those reservations which were well founded, you may believe me when I say that I had several points of view which would have stood the test of criticism. Which of us was right, only time will tell. Pollock apparently believes that he owes it to himself and to the Institute to make it clear, at a moment at which you are more or less officially our representative on the faculty, that any payments made by the Institute in the coming year will be on a voluntary basis … From year to year, the question of financing your post from another source has been mentioned between us, but, truly, not because you were less important to the Institute than others, but because we have a greater responsibility towards the others. … If Neumann were to resort to legal measures, Horkheimer added, it would not only damage the Institute but would also be less advantageous to himself than the lecture course and the rest of what the Institute had to offer him. — Rolf Wiggershaus, The Frankfurt School, 316

Categorization

• XREF: Illustrates the general ‘institutions restore information and manage commitments’ problem in Milgrom’s law-merchant analysis, transposed to a patronage bureaucracy. — connects to: Financial independence lost in exile forces an institute into contract research and moral compromise. — Rolf Wiggershaus, The Frankfurt School: Its History,…, 457; Financial dependence forced the Institute to adopt the contract strategy it despised in Lazarsfeld. — Rolf Wiggershaus, The Frankfurt School: Its History,…, 1858; Deliberate funding starvation pushed Institute members toward government employment — Rolf Wiggershaus, The Frankfurt School: Its History,…, 321 (+5 more)
• yield-rescued: below the book’s yield-target cutoff, included anyway for connecting to: Financial independence lost in exile forces an institute into contract research and moral compromise. — Rolf Wiggershaus, The Frankfurt School: Its History,…, 457; Financial dependence forced the Institute to adopt the contract strategy it despised in Lazarsfeld. — Rolf Wiggershaus, The Frankfurt School: Its History,…, 1858; Deliberate funding starvation pushed Institute members toward government employment — Rolf Wiggershaus, The Frankfurt School: Its History,…, 321 (+5 more)