IV . REPORT ON FISCAL POLICY The Association inherited from its constituent bodies at the time of their consolidation a variety of methods for financing its work . These included as sources of income arbitration fees assessed against a party to cover the cost of a proceeding and

a memberships and contributions from individuals , corporations or organizations . These sources of income have not , however , borne any precise relation to the value of the service rendered nor have they come from all of the most stable or representative elements in the business life which arbitration serves . The sub ject of the proper financing of commercial arbitration is , therefore , one to which the directors have given careful consideration .

Policies . The policies in force in so far as present economic conditions permit are the following :

1. The cost of an arbitration proceeding should be kept at the lowest possible minimum and should be borne by the parties in controversy in such a proceeding .

2. The overhead which includes the general administra tion of facilities whether in use or not , the legislative and educational work and plans for expansion should be borne by industry on a basis of apportionment and should not be a charge on the parties in any particular proceeding .

3. The cost of proceedings in trade or commercial or ganizations should be borne by such organizations , a certain sum being set aside as a contribution to the Association to cover its expenses for installing , supervising or administer ing facilities in such organizations .

4. As a general principle , arbitrators should receive no compensation and sufficiently large panels should be main tained so each person called upon can afford to serve on an honorary basis as a matter of public duty . This policy has in view the accomplishment of the following objectives : ( 1 ) To establish arbitration on a public service basis wherein arbitrators serve wholly disinterestedly . ( 2 ) To avoid creating a professional class of arbitrators interested

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