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Public Private Partnerships for Infrastructure and
Business Development

Public Private Partnerships for
Infrastructure and Business
Development
Principles, Practices, and Perspectives
Edited by
STEFANO CASELLI, GUIDO CORBETTA, AND
VERONICA VECCHI

PUBLIC PRIVATE PARTNERSHIPS FOR INFRASTRUCTURE AND BUSINESS DEVELOPMENT
Copyright © Stefano Caselli, Guido Corbetta, and Veronica Vecchi, 2015.
All rights reserved.
First published in 2015 by
PALGRAVE MACMILLAN®
in the United States—a division of St. Martin’s Press LLC,
175 Fifth Avenue, New York, NY 10010.
Where this book is distributed in the UK, Europe and the rest of the world,
this is by Palgrave Macmillan, a division of Macmillan Publishers Limited,
registered in England, company number 785998, of Houndmills,
Basingstoke, Hampshire RG21 6XS.
Palgrave Macmillan is the global academic imprint of the above companies
and has companies and representatives throughout the world.
Palgrave® and Macmillan® are registered trademarks in the United States,
the United Kingdom, Europe and other countries.
ISBN978-1-349-57014-0 ISBN978-1-137-54148-2(eBook)
Library of Congress Cataloging-in-Publication Data
Public private partnerships for infrastructure and business development :
principles, practices, and perspectives / edited by Stefano Caselli,
Guido Corbetta, Veronica Vecchi.
pages cm
Includes bibliographical references and index.
1. Public-private sector cooperation. 2. Infrastructure (Economics)
3. Entrepreneurship. I. Caselli, Stefano, 1969– II. Corbetta, Guido.
III. Vecchi, Veronica.
HD3871.P837 2015
658⬘.046—dc23 2015004486
A catalogue record of the book is available from the British Library.
Design by Newgen Knowledge Works (P) Ltd., Chennai, India.
First edition: September 2015
10 9 8 7 6 5 4 3 2 1
DOI10.1057/9781137541482
Softcover reprint of the hardcover 1st edition 2015 978-1-137-48782-7

To
Manuela and Mark for their intellectual stimuli and
Bruno for his friendship, by Veronica
My children, Elisa and Lorenzo, by Stefano
My wife, Rossella, by Guido

Contents
List of Figures ix
List of Tables xiii
List of Boxes xv
A Note from the Editors xvii
1 The Public-Private Partnerships’ Framework 1
Veronica Vecchi, Stefano Caselli, and Guido Corbetta
Part I Private Capital for Infrastructure
Preface to Part I 15
Gorno Tempini
2 What Drives Private Participation in Infrastructure
Developing Countries? 19
Marian Moszoro, Gonzalo Araya, Fernanda Ruiz-Nuñez,
and Jordan Schwartz
3 Public Investment as a Driver of Economic Development and Growth:
What Is the Appropriate Role of Public-Private Partnerships? 45
Mark Hellowell
4 Preparing and Structuring Bankable PPP Projects 57
Christoph Rothballer and Philipp Gerbert
5 International Trends in Infrastructure Finance 81
Raffaele Della Croce and Stefano Gatti
6 Attracting Private Investors: The EU Project Bond Initiative and
the Case of A11 Motorway 101
Veronica Vecchi, Francesca Casalini, and Stefano Gatti
7 Public-Private Partnerships for Transportation: Infrastructure
Development in the United States 119
Rick Geddes and J. H. Foote

Contents
viii
8 PPP in the Airport Infrastructure: A Case Analysis from
an International Perspective 133
Alessandro Fusellato and Fulvio Lino Di Blasio
9 Public-Private Partnerships for Energy Infrastructure: A Focus on
the MENA Region 149
Isabella Alloisio and Carlo Carraro
10 The Role of Public-Private Partnerships (PPPs) in Scaling Up
Financial Flows in the Post-Kyoto Regime 169
Giulia Galluccio
Part II Public Initiatives for Business Development
Preface to Part II 187
Josh Lerner
11 Access to Finance for SMEs and Entrepreneurs: Trends and
Policies in OECD Countries 189
Sergio Arzeni, Lucia Cusmano, and Virginia Robano
12 SMEs’ Access to Credit: Are Government Measures Helpful for
Constrained Firms? 221
Annalisa Ferrando and Monica Rossolini
13 Government Intervention in the Venture Capital Market 237
Douglas Cumming and Sofia Johan
14 Key Ingredients for an Efficient and Effective Public-Private
Equity Fund 265
Fabio Sattin
15 Impact Investing: A New Asset Class or a Societal Refocus of
Venture Capital? 275
Veronica Vecchi, Francesca Casalini, Luciano Balbo, and Stefano Caselli
16 The Rise of Sovereign Wealth Funds: Definition, Organization,
and Governance 295
Bernardo Bortolotti, Veljko Fotak, and William L. (Bill) Megginson
17 European Way to Sovereign Funds: A Comparison among CDP,
KfW, and CDC 319
Guido Corbetta and Gimede Gigante
18 Public-Private Partnerships: The Case of the Agencies for
Local Development 343
Giancarlo Canzanelli and Vincenzo Milio
Notes on Contributors 365
Index 369

Figures
1.1 The public-private partnerships framework 3
1.2 Business-government relations 4
1.3 Features of economic development partnerships 6
1.4 PPP contracts spectrum 8
2.1 Private investment in infrastructure in low- and middle-income
countries 20
2.2 Private investment in infrastructure in low- and middle-income
countries, by sector 20
4.1 Overview of typical issues of PPPs 58
4.2 Checklist of key success factors for PPP project preparation 59
4.3 PPP best-practice framework 60
4.4 Overview of risk allocation models 70
4.5 Examples for standardization in PPP project preparation 77
5.1 Different channels to infrastructure investments available to
the private sector 83
5.2 Evolution of syndicated and project finance loans worldwide,
2007–2013 86
5.3 Trends of project bonds (2007–2013) (data in US$ million) 89
5.4 Historical global infrastructure fundraising, 2004–August 2014 92
5.5 Infrastructure fundraising by geographic focus in 2013—Breakdown
of capital raised 93
5.6 Infrastructure fundraising by type of investment in 2013—Breakdown
of capital raised 94
5.7 Amount and percent composition of alternative investments by
top 100 alternative investments asset managers worldwide as
at July 2014 95
5.8 Direct Sovereign Wealth Funds’ investment activity (2005–2012)
data in $ billion 96
6.1 The effect of policy instrument on project cash flows and ratios 105
6.2 Funded and unfunded PBCE 107
6.3 Via Invest business model 111
6.4 Contractual structure of the project 112
6.5 A11 project bond drawdown structure 115
6.6 Contribution of PBCE to rating rational 117
8.1 Private participation in projects (2002–2012) 134

Figures
x
9.1 Total assets by type of institutional investors in the OECD
(1996–2012) 154
9.2 Potential annual pension funds and insurance companies
investment vs. OECD project investment needs 156
10.1 Change in annual investment flow from baseline levels 170
10.2 Investment commitments to PPI in developing countries,
1990–2011 172
10.3 Total PPPs sample by sector 173
10.4 Renewable and nonrenewable PPP energy projects in the electricity
generation segment (total annual investment commitments—
including pipeline) 177
10.5 PPPs investments in renewable energy generation by energy sources 178
10.6 Installed capacity (GW) of PPP and CDM projects in renewable
energy in the period 2005–2011 179
10.7 Water PPPs trends by main sub-sector 179
11.1 Trends in outstanding SME loans 2007–2012 192
11.2 Growth patterns of outstanding SME loans, 2007–2012 194
11.3 Trends in SME nominal interest rates and interest rate spreads,
2011–2012 195
11.4 Trends in SME collateral requirements: 2010–2012 196
11.5 Average annual real growth rate of credit guarantees, 2007–2013 202
13.1 Australian venture capital and private equity investments, all stages,
1982–2005 (Q1) 246
13.2 Australian venture capital and private equity investments, by stage,
1982–2005 (Q1) 247
13.3 Australian startup and early stage venture capital investments,
by investor, 1982–2005 (Q1) 247
13.4 Australian venture capital and private equity exits by exit vehicle,
1982–2005 (Q1) 248
13.5 Australian IPO exits by investor type, 1982–2005 (Q1) 249
13.6 IPO share price returns, net of market returns, by type of
venture capital backing 249
13.7 Venture capital under management by investor type in Canada:
1992–2004 253
13.8 Capital for investment in Canada: 1988–2004 253
13.9 Selected indices 1992–2005 254
13.10 Ranked scatter plot of LSVCC returns (all funds) versus Canadian
small cap mutual fund returns (sample) 255
14.1 Example of a 50/50 public private investment fund structured
by using the “up-side leveraged scheme” 269
14.2 Carried Interest mechanism in a public private investment fund 270
14.3 Simplified carried interest calculation in a public private
investment fund 270
15.1 The enterprise continuum and the target of impact investing 280
15.2 Impact investing, venture capital, and early stage financing 281
15.3 Evolution of patients at CMS 289

Figures xi
16.1 Total foreign exchange reserves, world and country groupings,
US$ billions, 1984–2011 297
17.1 CDP functioning model 327
17.2 KfW functioning model 328
17.3 CDC functioning model 328
17.4 Portfolio of activities versus funding sources 329
17.5 Asset class distribution comparison (% on total asset) 330
17.6 Asset class distribution comparison (€ million) 331
17.7 CDP 2012 funding sources 332
17.8 2010–2012 postal savers’ average return (%) 332
17.9 KfW 2012 sources of funding 333
17.10 CDC 2011 sources of funding 334
17.11 Growth of total assets % 335
17.12 Total equity/total assets (%) 336
17.13 Impaired loans/gross loans 337
17.14 Cost/income ratio 338
18.1 The LEDA activities 345
18.2 The TEULEDA credit scheme 351
18.3 REDASP organizational chart 355
18.4 CIDES organizational chart 360

Tables
2.1 Summary statistics 28
2.2 Correlation of independent variables 29
2.3 Determinants of private participation in infrastructure. Dependent
variable: log of total private investments in infrastructure.
Specification with country fixed effects and year dummies 30
2.4 Determinants of private participation in infrastructure by sector.
Dependent variable: log of total private investments in infrastructure
by sector. Specification with country fixed effects and year dummies 32
2.5 Determinants of private participation in infrastructure.
Dependent variable: log of total private investments in infrastructure.
Specification with country fixed effects (no year dummies) 36
2.6 Determinants of private participation in infrastructure by sector.
Dependent variable: log of total private investments in infrastructure
by sector. Specification with country fixed effects (no year dummies) 38
5.1 Typical characteristics of infrastructure investments 83
5.2 Global project finance by geographic area (US$ mil)—2012/2013 87
5.3 Global project finance by sector (in US$ mil)—2012/2013 88
5.4 Project bond issues by country, 2007–2013 89
5.5 Project bond issues by sector, 2007–2013 90
5.6 Ten largest infrastructure funds, June 2013 93
5.7 Selected SWF infrastructure investments 97
6.1 Main guarantee schemes for PPP 103
6.2 Projects approved by the EIB for PBCE 108
6.3 A11 PPP project overview 109
6.4 A11 PPP project’s timetable 110
6.5 Description of project key contracts 112
6.6 Uses and sources of funds 114
6.7 Bonds main terms and conditions 115
6.8 Risk allocation matrix 116
8.1 India—Celbi Delhi Cargo Terminal 136
8.2 India—Hyderabad International Airport 137
8.3 Croazia—Zagreb Airport Expansion 138
8.4 Russia—Kurumoch International Airport Privatisation and Expansion 140
8.5 Russia—Pulkovo Airport 141
8.6 Côte d’Ivoire—Abidjan FHB Airport Expansion 142

Tables
xiv
8.7 Saudi Arabia—Medina Airport Expansion 143
8.8 Australia—Melbourne Airport Refinancing 144
8.9 Mackay—Mackay Airports 145
8.10 United States—Gary Chicago International Airport 147
9.1 Deployment, IRR, and investment horizon by source of
capital for renewable energy projects 152
9.2 Institutional investors’ liability profile and propensity to risk 155
10.1 Selected PPPs projects by contract type and sector 174
10.2 Selected PPPs projects by region and sector 175
10.3 Selected PPPs projects by status and sector 176
11.1 Growth of SME business loans, 2007–2012 193
11.2 Venture and growth capital invested, 2007–2012 197
11.3 Trends in bankruptcies 2007–2012 198
11.4 Government policy responses to improve access to finance,
2007–2012 200
Annex 11.1 Core indicators in the OECD Scoreboard on Financing of
SMEs and Entrepreneurs 217
12.1 Overview of government measures introduced since 2011 226
12.2 The number of observations in the sample 227
12.3 Country means for share of firms using alternative sources of
finance 228
12.4 Country means for indicators of credit constraints 229
12.5 Use of grants or subsidized loans—probit model
(marginal effect) 231
13.1 Government venture capital support programs 240
15.1 Impact investing definitions 277
15.2 Horizon IRRs to December 31, 2013, for Europe and
the United States (funds formed 1980–2013) 283
15.3 Oltre Venture I portfolio snapshot 287
16.1 Sovereign wealth funds in the Sovereign Investment
Lab SWF transaction database 300
16.2 Transparency, economic freedom, and governance scores
for fund-sponsor countries and sovereign wealth funds 309
17.1 Leverage—D/E 336
17.2 ROE 336
17.3 ROA 336

Boxes
4.1 PPP Best-Practices beyond project preparation 61
6.1 Via Invest and PMV 110
9.1 Case-study of PPP renewable energy project in Morocco,
Ouarzazate Solar Phase 1 162
9.2 Case-study of PPP renewable energy project in Jordan,
Tafila Wind Project 165
11.1 The Funding for Lending scheme in the United Kingdom 201
11.2 Credit Guarantee Schemes in the United States: The 7(a)
Loan Program 202
11.3 Korea Technology Finance Corporation (KIBO) 203
11.4 Mutual Guarantee Schemes in Italy (Confidi) 205
11.5 “Mini-bonds” in Italy 212
11.6 Contrat de développement participatif, OSEO, France 213
11.7 Co-Investment Funding in Seed and Early Stage Ventures:
The TechnoPartners Seed Facility in the Netherlands 214
11.8 Crowdfunding as a Finance Instrument for SMEs 215
12.1 The Empirical Methodology 229
15.1 Overview of German-based Social Venture Fund 284
15.2 Oltre Venture I Investment Approach 286
15.3 Description of Oltre Venture I three main investments 288
18.1 Objectives of Cides of Kaolack 358
18.2 Objectives of Cides of Pikine 359

A Note from the Editors
This book has been developed within the Università Bocconi Monitor on Public
Private Partnerships (MP3), an initiative of two research centers of our University,
Centre for Applied Research in Finance (CAREFIN) and Center for Research in
Innovation, Organization and Strategy (CRIOS), thanks to the support of Cassa
Depositi e Prestiti, the Boston Consulting Group, and EY.1
MP3 is a platform to connect players and stakeholders to generate influential
research and debate to stimulate a co-evolution of public and private Institutions
and operators and to sustain policy makers in the development of an adequate eco-
system for sustainable and balanced partnerships.
In the last years several forms of collaboration and partnership between pub-
lic and private institutions emerged, with significant variations across sectors and
jurisdictions, as a consequence of the attempt to find new answers to economic
and social needs in a context of high complexity and globalization. More recently,
partnerships have often become the only game in town to cope with severe fiscal
constraints and financial crisis. According to our view, summarized in chapter 1,
Public-Private Partnership (PPP) is a concept that goes beyond contracts for infra-
structure and service delivery, to which the majority of institutional and scientific
literature is referred. In our PPPs’ framework, we distinguish among PPPs as business-
government relations (at policy level), PPPs as programs for sustaining economic
development, and PPPs for public services/infrastructure delivery.
This book is a significant milestone in the global diffusion of such a wider
approach to PPPs. However it is focused on the second and third form of PPPs.
The first section, from chapter 2 to chapter 10, is dedicated to PPPs for infrastruc-
ture-based services. The second section, from chapter 11 to chapter 18, is focused on
PPPs for sustaining the economic development.
Now, let’s move to the ritual but authentic acknowledgments.
First of all we thank the persons who have helped us to launch and develop
MP3 and are still giving their invaluable support: Prof. Andrea Sironi, Università
Bocconi Rector, and Prof. Angelo Provasoli, past Rector of our University; Fabio
Sattin, Chairman of Private Equity Partners; Andrea Montanino, Director at the
Atlantic Council and past Executive Director at the International Monetary Fund;
and Giovanni Gorno Tempini, Chief Executive Officer of Cassa Depositi e Prestiti,
who also signed the preface to this book.
We acknowledge for their precious inputs the members of MP3 Managing Board
and Steering Committee: our colleagues Filippo Annunziata and Elio Borgonovi;

A Note from the Editors
xviii
Prof. Dante Roscini, Harvard Business School; Marco Airoldi, General Manager
of Benetton Group; Claudia Bugno, Director of Italian Ministry of Economic
Development; Donato Iacovone, Managing Partner of Ernst and Young in Italy,
Spain, and Portugal; Giovanni Sabatini, Director General of ABI—the Association
of Italian Banks; and Marcella Panucci, Director General of Confindustria—the
Italian Association of Businesses.
A special thank is for all the authors who accepted to contribute to this work and
to Anna De Longhi, whose commitment was essential to review chapters, copyright
permissions, and finalize the manuscript. We also acknowledge Palgrave staff, in
particular Leila Campoli, who offered the chance to publish this book, and Sarah
Lawrence for her patience.
A special thanks to Elena Suragni, MP3 coordination assistant, for the valuable
support to MP3.
Last but not the least, we are very honoured to have the preface to the second part
signed by Josh Lerner. Thanks very much Josh!
Milano, December 2014
Note
1. In 2013 MP3 was supported also by the international law firm Gianni, Origoni, Grippo,
Cappelli & partners.

Chapter 1
The Public-Private Partnerships’
Framework
Veronica Vecchi, Stefano Caselli, and
Guido Corbetta
1.1. Introduction
Public-Private Partnership (hereafter PPP) is a blurred concept, with several meanings
(Linder 1999; Wettenhall 2003; Hodge and Greve 2005; Khanom 2010), spanning
from a specific contract or arrangement to a wider policy (Bovaird 2004).
According to a quite popular definition (Teisman and Klijn 2002; van Ham and
Koppenjan 2001), a partnership is a cooperation of some sort of durability between
public and private actors in which they jointly develop products and services, even
according to co-production modes, and share risks, costs, and resources that are
connected with these products.
Quite often, partnerships are characterized by a financial scope, and for this
reason, Bovaird (2004) refers to them as a “marriage for money.” Rosenau (2000)
underlines that integrated and co-accountable partnerships are rare, as private
stockholders’ interests tend to prevail, and suggests to use them only in case cost
considerations about service delivery are prioritized.
Literature mainly refers to PPP as a contractual arrangement to deliver public ser-
vices, as an intermediate solution between traditional public driven and privatized
solutions. Actually, the New Public Management (Osborne 2000) has introduced
PPPs as a management or governance tool to reach more efficiency and effectiveness
in the public sector.
Khanom (2010) sheds the light on PPP also as a tool to foster development, with
a specific focus on developing countries (Fiszbein and Lowden 1999). Partnerships
for economic development have been referred also to urban areas (Osborne 2000),

2
and, recently, Mintzberg (2014) has introduced the concept of Plural PPPs (PPPPs)
as a way to answer to the most challenging and resilient social issues such as poverty
and global warming. The “fourth P” stands for the multidimensional initiatives
developed by the society at large.
Our approach to PPPs is wider because we consider not only arrangements to
deliver services and infrastructures but also those interactions aimed at building a
more favorable context for businesses.
Actually, some authors have discussed the importance of government for the
success of a business strategy (Baron 1996; Porter 2008), hence the need for many
companies to influence the policy maker and the regulator through lobbying.
However, the action of government in the business environment can be deeper:
red tape reduction, business services delivery, fiscal incentives and other forms of
financial support are just some examples of the public effort to support the economic
development and the competitiveness.
1.2. The PPP Framework
Established that the word “partnership” has a loose meaning, we have defined a
broader framework to include the main forms of arrangements, collaborations, and
relations among governments and businesses. These relations can be referred to as
a policy or a more focused program or a specific contract.
At policy level, these relations are nontransactional, as they are based on imma-
terial exchanges, such as information, or their effects are not immediate or clearly
assessed or captured. Moving toward programs or specific contracts, they become
transactional as they are characterized by a tangible and immediate exchange
(Brusoni, Vecchi, and Cusumano 2013). Figure 1.1 shows the pattern of these
relations.
In the next sections, we explore the three main categories of relations: pure busi-
ness-government relations at policy level, PPP programs for economic development,
contractual and noncontractual PPPs for service delivery.
1.2.1. Business-Government Relations
According to Watkins, Edwards, and Thakrar (2002) businesses play two games:
Value net game, as a market actors, in a market environment, where competi-
●
tors, suppliers, and customers also play;
Public Interest game, in a nonmarket environment, where citizens, media,
●
activists, and government play.
Government (as rule maker, referee, and regulator) influences these two games,
thus generating costs and benefits for businesses, through specific market/business

The
Business
Government
NET
relations
BUSINESS
as
partner
operator
as
supplier
key
players
of
economic
development
in
regulated
sectors
all
the
firms
GOVERNMENT
as
service
regulator
as
client
as
business
dev.
policy
maker
as
regulator
(ie
antitrust)
as
social
policy
maker
(ie
environment,
health,
pension
policies)
policy
program
contract/project
Contractual
PPP
(BOT
–
likes
schemes);
Institutional
PPP
(mixed
company);
Impact
Investing
Contractual
PPP
(availability
–
based
schemes);
Public
procurement
Direct/Indirect
funding
schemes,
services
and
ecosystem
development
programs
for
enhancing
competitiveness
Lobbying,
self
regulation
Lobbying,
corporate
citizenship/CSR
Business
Government
Relations
PPP
for
economic
development
PPP
for
services
delivery
Figure
1.1
The
public-private
partnerships
framework.
Source:
Adapted
from
(Brusoni,
Vecchi,
and
Cusumano
2013).

4
oriented laws and regulation and broader policies aimed at tackling the general pub-
lic interest. Public interest games primarily concern industries with a significant
impact on public health and safety, such as oil, chemicals, tobacco, pharmaceuticals,
automobiles, and, increasingly, collection and use of consumers’ data. However,
some matters, like those involving employee benefits or Internet privacy, potentially
affect all businesses. Here, coalitions of businesses, and even entire industries, pit
nonbusiness organizations like unions, consumer groups, and environmental orga-
nizations to include their instances in the political agenda.
Therefore, when businesses’ opportunities are controlled by government or
challenged by public pressure, firms have a strong incentive to influence the gov-
ernment through lobbying, to shape the nonmarket environment (Bach and Allen
2012) or to integrate nonmarket strategy into an overall competitive strategy
(Baron 1995).
Governments can also participate directly as players in these two arenas.
In the value net game, the government can play as customer (on average the
15%–20% of a country’s GDP generally is generated through public purchasing)
and provider (health, energy, security,...). Sometimes, it could play also as busi-
nesses’ competitor.
However, businesses also can contribute to achieve public values, for example,
supporting the development of better health and social conditions, thus enforcing
public policies. This issue is known as corporate social responsibility (CSR) or in
some circumstances as “corporate citizenship” (Carroll 1998; Matten and Crane
2005). They can play a crucial role also as a mean of lobbying.
Government
(rule makers, regulator, referees)
Company
Lobbying
CSR–Corporate
Citizenship
actions
Market environment:
clients, competitors, suppliers
(value net game)
S
p
e
c
i
f
i
c
b
u
s
i
n
e
s
s
l
a
w
-
a
n
t
i
t
r
u
s
t
P
u
b
l
i
c
i
n
t
e
r
e
s
t
l
a
w
s
-
e
n
v
i
r
o
n
m
e
n
t
,
l
a
b
o
r
Non market environment: citizens
media, activists
(public interest game)
Government can also
play in market arena
Figure 1.2 Business-government relations.
Source: Authors.

The PPP Framework 5
A further nuance of the role that businesses can play in the society is the Porter’s
“shared value creation” concept, which has been considered as an evolution of CSR,
though contested by CSR exponents (Crane et al. 2014). According to Porter and
Kramer (2011), shared value can be defined as policies and operating practices that
enhance the competitiveness of a company while simultaneously advancing the eco-
nomic and social conditions in the communities in which it operates. Figure 1.2
shows the dynamics of business-government relations.
1.2.2. Public-Private Partnerships for
Economic Development
Our wider approach to PPP allows for also considering public-private programs to
support business and entrepreneurial development defined according to a network
governance approach, where local, national, and supranational (i.e., the European
Union) actors interact, cooperate, partner with social and economic players at dif-
ferent institutional levels. However, the majority of these partnerships take place at
regional and local level, close to the business environment.
Partnerships for economic development can refer to three main areas (Vecchi,
Brusoni, and Borgonovi 2014):
developing a conducive ecosystem;
●
delivering services to businesses;
●
financing businesses.
●
Among the system conditions, apart from lean rules (Porter 2000) and the lead-
ership of public authorities, based on the effective ability to respond to problems
and generate results (Ansell and Gash 2007), we want to underline a soft element:
the “co-evolution” of public and private players. Co-evolution can be identified as
the ability to listen to the enterprises’ and more in general the stakeholders’ needs
and to define integrated (public-private) paths for development. Business needs’
understanding is rare within entrepreneurial public programs, but it has proven to
be essential for their effectiveness.
Business services are aimed at supporting enterprises development, where market
failures exist. Public-Private organizations or initiatives are generally set up to offer
services to weaker segments, such as start-ups and small and medium enterprises
(SMEs). These partnerships usually take the form of development agencies and
business incubators (Pena 2002; Colin Mason and Brown 2011), sometimes with
a mixed ownership.
However, it is with reference to financial instruments that we can see a wide spec-
trum of partnerships, as a more efficient alternative approach to traditional public
grants, because of their capability to stimulate the private co-financing and the
beneficiaries’ commitment (Mason, McNally, and Harrison 1996; Hallberg 1999).
They span from guarantee schemes to sustain access to credit to subsidized loans
and public-private venture capital funds aimed at closing the funding gap. Here,
the partnership is not represented by a public-private institution, even if sometimes

6
this is possible (i.e., this is the case of financial agencies or regional development
banks), but rather by co-financing mechanism to reach a certain degree of leverage
and therefore to expand the availability of capital for businesses. Recently, these
instruments have been introduced not only to sustain businesses and in particular
SMEs, but also the attraction of private capital into infrastructure. To avoid the
misallocation of public resources into noneffective or inappropriate instruments
and moral hazard effects, it is important that these financial programs are rooted
in a well-planned integration of public and private sources of funding (Oakey
2003), based on a deep understanding of the market features, target businesses’
needs, and investors’ expectations. In Figure 1.3 we summarize the main features
of these partnerships.
1.2.3. Public-Private Partnerships for Services Delivery
In this section we take into consideration PPPs for services delivery and infrastruc-
ture development, where authorities can play as client and service regulator and
market players as providers and partner operators.
In public procurement, especially for infrastructure and service delivery and far
less for goods, the partnership is characterized by a midterm contract that requires
a certain degree of interaction and collaboration in order to maximize the value for
the client (public authority) and therefore to increase the competitive advantage for
the provider (private player). Generally, these partnership-intensive contracts gener-
ate also a mutual learning process that sustain the innovation. Furthermore, when
authorities buy complex services and infrastructure, they (should) adopt mechanisms
Aim Mode Form
To develop the
business ecosystem
Collaboration to set leaner and
adequate rules
Continuous interaction to
facilitate understanding
Light partnership—
collaboration and
co-evolution
To offer services Business incubators, Science and
technology parks
Local and national Development
agencies
Training
Institutional partnership
(public-private owned
Institutions/Agencies)
Mid-term agreements with
co-investment
To increase the
availability of
capital
Guarantee schemes
Subsidized Loans
Public-Private Venture Capital
Fund
Institutional partnership
(public-private owned
financial Institutions)
Mid-term agreements with
co-investment
Figure 1.3 Features of economic development partnerships.
Source: Authors.

The PPP Framework 7
of dialogue with the market in order to fine-tune procurement documents and
to secure the highest value for money.
A more sophisticated form of public procurement is characterized by PPP con-
tracts for the delivery of infrastructure-based services. As written earlier, this is the
quintessential form of PPP.
Here it is important to make a distinction between availability-based contracts,
or more in general contracts in which the private operator does not bear the demand
risk, and those in which the operator bears a full entrepreneurial risk.
In the first case, the PPP contract is more similar to public procurement, even if
the degree of risk transferred to the private partner is higher. Actually, the private
operator designs, finances, builds, and maintains the infrastructure and operates
the service. The authority pays this through an availability-based payment, related
to the availability and quality of the service delivered during the contract’s life.
This model has been introduced in the United Kingdom under the Private Finance
Initiative, and it is known as DBF(M)O1
contract (Hellowell 2010). It is gener-
ally used for social infrastructure, such as hospitals and schools, where the core
service remains of full responsibility of the authority, while soft services (mainte-
nance, catering, cleaning) are tasked to the private player, which has also sustained
the investment. This model is also applied to economic infrastructures, for which
users pay a fee (such as motorways, underground, trains). Here the authority can
pay a shadow toll to the private partner (as it happens in the United Kingdom for
motorways) or, more and more often, an availability fee, to reduce the impact of the
demand risk on the contract.
When the private operator bears the demand risk, he is (or should be) fully
responsible for the delivery of the service and the authority plays a role more similar
to that of a regulator. This is the case of PPP for economic infrastructures, in the
transport and energy sector for example, where in some cases PPP is an alternative
to privatization (Savas 2000). These contracts are often known as BOT—Build
Operate and Transfer—schemes, where all the components of the project (even if
not captured by the abbreviation), such as the design and finance, are in the respon-
sibilities of the private player.
These PPPs for the delivery of infrastructure-based services are generally based
on the concession contract, which allocates the entrepreneurial risk to the private
operator.
BOT and DBF(M)O schemes are very common and popular; however partner-
ship schemes for the delivery of an infrastructure, a service, or an infrastructure-
based service are more numerous, and they have these following features as least
common denominators:
a mid- to long-term contract (generally from three years onwards);
●
a payment based on performance;
●
a share of risk between the public commissioning authority and the private
●
company.
Figure 1.4 summarizes the most common schemes along with their main features.

Figure
1.4
PPP
contracts
spectrum.
PPP
contracts
spectrum
Private
sector
involvement
spectrum
Payments
construction
technology
funding
maintenance
renewal
non
core
service
operation
&
delivery
core
service
operation
&
delivery
Design
and
Build
(turn
key
contract)
√
√
Lump
sum
paid
by
the
Authority
Finance
leasing
(mainly
for
buildings,
real
estate)
√
√
√
(√)
Installments
paid
by
the
Authority
Operate
leasing
(mainly
for
technologies)
√
√
√
√
Availability
based
payments
from
the
Authority
Operation
and
Maintenance—
service
management
as
outsourcing
(mainly
for
energy
and
facility
management
or
other
non
core
services)
√
√
√
Fixed
payments
from
the
Authorities
with
some
elements
of
variability
Availability
and
Performance
based
concession—DBFO
√
√
√
√
√
Availability
based
payments
from
the
Authority
Operation
and
Maintenance—
service
concession
(√)
√
√
√
√
Payment
from
users
Demand
based
concession
(BOT)
√
√
√
√
√
√
Payment
from
users
Source:
Authors.

The PPP Framework 9
Also notice that the outcomes of BOT, DBF(M)O, and Operation and
Maintenance concession schemes can be reached through a so-called Institutional
PPP, based on a public-private owned company. However, in Figure 1.4, we refer
only to contractual PPPs.
Finally, it is useful to mention an evolution of demand risk-based PPP toward
impact investing, which is a new entrepreneurial approach aimed at intentionally
generating social value. Societal impact enterprises, as defined in this book by
Vecchi et al. (see chapter 15), can play a relevant role in the delivery of more inno-
vative and more needs-oriented services for the society, in emerging countries as
well as mature economies, where public budget are constrained.2
Thanks to social
innovation, impact investing may represent more value for money and an affordable
alternative to traditional concession-based PPPs.
Actually, a clear signal of this comes from the UK social impact bond, which is
often considered a first approach to impact investing or at least a way to combine
social and financial return. Social impact bond represents a form of social PPP
where the responsibility of the delivery of a certain service is given to a social or
societal impact enterprise, which raises money from investors and, thanks also to a
certain degree of social innovation, is able to increase the quality and effectiveness
of the service and therefore to reduce its overall cost. The payment for the service
comes from the competent authority, and it is linked to the performance achieved,
also measured as saving against the historical cost sustained by the authority itself
under a more traditional approach. The stream of payments, based on the level
of performance achieved, is used to cover the cost for the service provision and
to remunerate the capital invested—the capital provided by investors through the
social bonds. Actually, it is not strange that social impact bonds have been con-
ceived for the first time in the United Kingdom, the homeland of PPP. In the case
of social bond, at least according to the UK experience, the payment comes from
the authority. However, impact investing goes far beyond social impact bonds
and, in the majority of cases, is referred to businesses that sell their services and
goods in the market, reaching targets underserved by the traditional public and
private sector.
1.3. Conclusions
In this chapter we have provided a possible framework to understand the wide
and often blurred concept of PPP, offering a larger perspective than the conven-
tional approach, which restrict PPPs to contractual forms to deliver infrastructure.
However, PPPs for infrastructure development remain one of the most relevant
forms, increasingly more popular and maybe necessary to close the infrastructure
gap, by leveraging private capital and skills. The first section of the book is dedi-
cated to these forms of PPPs. The second section of the book sheds light on looser
and tighter forms of partnership to sustain the economic development of businesses,
from financial instruments to development banks and agencies.

10
Notes
1. DBF(M)O stands for design, finance, build, maintenance, and operation—in other
words the activities under the responsibility of the private partner.
2. Chapter 15 refers to Impact Investing as a market niche of societal impact enterprises,
whose development can be sustained by public-private funds, such as the Social Impact
Accelerator program of the European Investment Fund.
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When She Came Home From
College

When She Came Home
From College
BY
MARIAN KENT HURD
AND
JEAN BINGHAM WILSON
With Illustrations by
George Gibbs
BOSTON AND NEW YORK
HOUGHTON MIFFLIN COMPANY
The Riverside Press Cambridge
1909

COPYRIGHT, 1909, BY MARIAN KENT HURD AND JEAN BINGHAM WILSON
ALL RIGHTS RESERVED
Published October, 1909

Contents
I.Alma Mater 1
II.Home 15
III.The Theory of Philosophy 40
IV.The Practice 56
V.The “Idgit” 81
VI.The Duchess 106
VII.“The Falling out of Faithful Friends” 128
VIII.Applied Philanthropy 142
IX.“Without” 170
X.The Vegetable Man’s Daughter 193
XI.Real Trouble 222
XII.The End of the Interregnum 249

Illustrations
Hel-lo, little girl (page 16) Frontispiece
Cantyloops! What’s them? 68
Why are you eating in here? 72
In the middle of the floor sat the Idgit 104
I’m Mrs. ’Arris, an’ I’ve come to ’elp you hout 108
Such a sadly changed Gassy 182
Barbara sank down wearily 190

When She Came Home
From College

“W
CHAPTER I
ALMA MATER
ELL, this is cheerful!” cried the Infant, as she stepped briskly
into the room where the rest of the “Set” were dejectedly
assembled. “What if this is the last night of college! What if our
diplomas are all concealed in the tops of our top trays! Can’t this
crowd be original enough to smile a little on our last evening,
instead of looking like a country prayer-meeting?”
The Infant cast herself upon the cushionless frame of a Morris
armchair, and grinned at the forms on the packing-boxes around her.
Her eyes roved round the disorderly room, stripped of the pretty
portières, cushions, mandolins, and posters, which are as inevitably
a part of a college suite as the curriculum is a part of the college
itself. Even the Infant suppressed a sigh as she caught sight of the
trunks outside in the corridor.
“Tears, idle tears, I know not what they mean;
Tears from the depths of some divine despair,
Rise from the heart and gather to the eyes,
On looking at the—excelsior—on the floor,
And thinking of the days that are no more,”
she chanted.
“It’s all very well to talk in that unfeeling way, Infant,” said
Knowledge, separating herself with difficulty from the embrace of
the Sphinx and sitting up on the packing-box to address her chums
to better advantage. “It’s very well to talk, but the fact remains that
to-morrow we are all to be scattered to the four corners of the
United States. And who knows whether we shall ever all be together
again in our whole lives?” Knowledge forgot the dignity of her new

A. B. and gulped audibly; while the Sphinx patted her on the back,
and said nothing, as usual.
“Well!” retorted the Infant, rising, “if I am the youngest, I have
more sense than the rest of you. I’ve kept my chafing-dish out of my
trunk, and I’ve saved some sugar and alcohol and chocolate, and
‘borrowed’ some milk and butter from the table downstairs; because
I knew something would be needed to revive this set, and I hadn’t
the money to buy enough smelling-salts.”
The Infant ran down the corridor, and came back with her
battered dish; and the girls gathered together on the dusty floor
around the box, which now served as a table. Their faces, worn from
the strain of the week of graduation, relaxed noticeably as the
familiar odor began to float upon the air.
“This is comfortable,” sighed Barbara, gratefully. “Let me take the
spoon, Infant. Your four years of college life have not yet A. B.’d you
in fudge.”
“Oh, you are not quite crushed by the pangs of the coming
separation, after all, then,” grinned the youngest member. “Girls, did
you hear an awful chuckle when our Barbara finished her
Commencement speech yesterday? It was I, and I was dreadfully
ashamed.”
“Mercy, no!” cried Atalanta, turning shocked eyes at the offender.
“What on earth did you chuckle for, when it was so sad?”
“That’s just it!” said the Irreverent Infant. “When Babbie began to
talk of Life and Love and the Discipline of Experience and the
Opportunities for Uplifting One’s Environment,—wasn’t that it,
Babbie?—I began to wonder how she knew it all. Babbie has never
loved a man in her life” (the Infant glanced sharply at Barbara’s clear
profile); “Babbie has never had any experiences to be disciplined
about; Babbie’s environment, which is we, girls, hasn’t been
especially uplifted by any titanic efforts on her part; and as for Life,
why, Babbie’s had only twenty-one years of it, and some of them

were unconscious. So when her oration ended with that grand
triumphant climax, and every one was holding her breath and
looking awed and tearful, I was chuckling to think how beautifully
Barbara was selling all those people.”
A horrified clamor arose from the girls.
“Why, Evelyn Clinton! It was lovely!”
“Infant, you shameless creature!”
With a whirl of her white skirts, amid the confusion that followed,
the House Plant rose to her feet and the rescue of her chum. “Just
because you can’t appreciate what a splendid mind Babbie has,
Evelyn Clinton, and how much the English professors think of her,
and what a prodigy she is, anyway—”
“Hear, hear!” cried Barbara, laughing.
“—And how proud we are of her,” went on the impetuous House
Plant “Just because you have no soul is no reason why you should
deny its possession by others!”
“Well, I’ve stirred you all up, anyway,” said the Infant,
comfortably. “And that is all I wanted.”
Barbara took the spoon out of the fudge dreamily. “You may be
right,” she said to the Infant. “You know I didn’t get the Eastman
Scholarship.”
“Don’t you ever mention that odious thing again!” cried Atalanta.
“You know that the whole class thinks you should have had it.”
Barbara turned her face aside to hide a momentary shadow.
“Well, in any case,” she said, “there is work ahead for me. Every
one who anticipates a literary career must work hard for
recognition.”

“You won’t have to,” declared the House Plant, hugging her chum,
and followed by a murmur of assent from the floor. “Why, Babbie,
didn’t you get five dollars from that Sunday-School Journal, and
don’t they want more stories at the same rate? I think that is
splendid!”
“I shall not write insipid little stories when I go home,” Barbara
answered, smiling kindly down at the enthusiastic little devotee who
had subsided at her feet “I shall write something really worth while,
—perhaps a story which will unveil characters in all their complexity
and show how they are swayed by all the different elements which
enter into environment—”
“Ouch!” exclaimed the Infant “You are letting the fudge burn, and
unveiling your characteristic of absent-mindedness to the set, who
know it already. This stuff is done, anyway, and I’ll pour it out Or, no,
—let’s eat it hot with these spoons.”
The Infant dealt out spoons with the rapidity of a dexterous
bridge-player, and the girls burned their tongues in one second, and
blamed their youngest in the next.
“By the way, Babbie,” suggested the Infant with a view to hiding
speedily her second enormity, “you never told us the advice that
New York editor gave you last week.”
Barbara’s scorn rose. “He was horrid,” she said. “He told me that
an entering wedge into literary life was stenography in a magazine
office. Imagine! He said that sometimes stenographers earned as
much as twenty dollars a week. I told him that perhaps he had not
realized that I was of New England ancestry and Vassar College, and
that I was not wearing my hair in a huge pompadour, nor was I
chewing gum.”
The others looked impressed.
“What did he reply?” asked the Infant.

“He said, ‘Dear me, I had forgotten the need of a rarefied
atmosphere for the college graduate. I am sorry that I am no longer
at leisure.’ And I walked out.”
“You did just right,” declared the House Plant, warmly, confirmed
in her opinion by a murmur of assent from the girls.
“Right!” echoed the Infant. “Babbie, you are the dearest old
goose in the world. You will never succeed nor make any money if
you take an attitude like that.”
“I shall not write for money,” declared Barbara, beginning to pace
the floor. “What is money, compared to accomplishment? I shall go
home, shut myself up, and write, write, write—until recognition
comes to me. I am sure it will come if I work and wait!”
She flung her head back with her usual independent gesture, and
the crimson color rose in her cheeks. And the girls eyed, a little
awesomely, this splendid prodigy, in whose powers they believed
with that absolute, unquestioning faith which is found only in youth
and college. The short silence was broken almost immediately by the
Infant.
“Are you going to have a chance to write at home, undisturbed?”
she asked. “Our house is a perfect Bedlam all the time. Two young
sisters and a raft of brothers keep me occupied every minute.”
“There are four children younger than I, too,” answered Barbara.
“But do you suppose that I am going to allow them to come
between me and my life-work? It would not be right; and my mother
would never permit it.”
“Mine would,” said the Infant, gloomily. “She thinks it is the
mission of an elder sister to help manage those who have the luck to
be younger and less responsible. I wish your mother could have
come to graduation, Babbie. She might have converted my mother
to her standpoint.”

“I wish she had come,” said Barbara, wistfully. “It seems as if she
might have managed some way.”
Her mind flew back to the quiet little Western town,—a thousand
miles away; to the household full of children, presided over by that
serene, sweet-faced mother. Why could not that mother have left
the children with some one, and have come to see her eldest
daughter graduate “with honor”?
“What a splendid thing it is to have a real gift to develop, like
Babbie’s,” sighed the House Plant.
Barbara looked uncomfortable. “You all have them,” she said. “I
think I talk about mine more than the rest of you.”
“You may give us all presentation copies of your magnum opus,”
announced the Infant, mercenarily. “You will come forth from your
lair—I mean workroom—a dozen years hence, and find us all living
happy, commonplace lives. The House Plant here will be fulfilling her
name by raising six Peter Thompson children and embroidering
lingerie waists. Atalanta,—by the way, girls, mother asked me why
we called that very slow-moving girl Atalanta, and I told her I was
ashamed to think that she should ask such a question,—well,
Atalanta will marry that Yale individual who never took his eyes off
her at Class-Day march. And I think you are mean not to tell us,
Atalanta, when we know you’re engaged.”
The Infant threw a spoon at her blushing friend, who
unexpectedly justified her nickname by dodging it.
“As for the Sphinx,” went on the Infant, happy in the unusual feat
of holding the attention of the girls, “the poor Sphinx can’t get
married because she never says enough for a man to know whether
it’s yes or no. She will just keep on loving her pyramids and cones,
and teaching algebraic riddles, until she dies. Knowledge will always
look so dignified that she will frighten men away. Father exclaimed
to me, when he met her, ‘What a lovely, calm, classical face!’ I said,
‘Yes, that is our Knowledge all over.’ And you can imagine how I felt

when she opened those dignified lips of hers and remarked
conversationally, ‘Say! Isn’t it hot as hot?’”
The girls laughed at poor Knowledge, and the cruel Infant
continued to read the future.
“Well, all of us will get presentation copies of Bab’s great work,
even I, who will be making home happy ‘if no one comes to marry
me’”—
“‘And I don’t see why they should,’” finished Barbara, cuttingly.
She rapped the Inspired Soothsayer on her fluffy head with a
curtain-rod.
“Your mind runs on matrimony to a disgusting extent, Infant,” she
warned. “I shall never marry unless I can carry on my writing.”
“And be a second Mrs. Jellyby?” inquired her friend. “All right; I’ll
come to live with you and keep the little Jellybys out of the gravy
while you unveil the characters of some Horace and Viola to the
admiring world. Oh, girls! The fudge is gone, and it’s twelve o’clock,
and even my eyelids will not stay apart much longer.”
The girls rose slowly from their improvised chairs, and stood
together, half-unconsciously taking note of the dear, familiar room in
its dismantled, unfamiliar condition. Out in the corridor a few unseen
classmates began to sing,
“Gaudeamus igitur, juvenes dum sumus—”
“What on earth are they gaudeamusing about to-night?” growled
the Infant; but no one answered her.
They stood looking at each other in silence.
“Some of you I won’t see again,” said Barbara, in a wavering
voice. “My train goes so early. Dear, dear Sphinxy,—and Atalanta—”
An odd, snuffling sound caused her to look around. “The Infant’s
crying!” she exclaimed.

The Infant threw her arms about Barbara’s neck. “I guess I have
feelings,” she sobbed, “if I did try to make things cheerful. Don’t
forget me, Babbie dear, for I do love you astonishingly, and expect
great things from you.”
Barbara hurried blindly down the corridor, with the faithful House
Plant beside her. At the end she turned, and faintly saw the four
white figures still watching her. They were looking their last at their
beloved companion, the girl whose strength of character and
instinctive leadership had first attracted, then held them together,
through four eventful years at college.
Barbara waved her handkerchief at the silent figures, and her
head dropped on her room-mate’s shoulder as they neared their
familiar door.
“Oh, Helen dear!” she sobbed. “How can we ever leave this
college?”

T
CHAPTER II
HOME
HE Overland Passenger was clanking its way across the prairies
of the middle West. Barbara, sitting on one of the stuffy red-
plush seats, pressed her face against the window-pane, and looked
out into the night. There was little to see,—the long, monotonous
stretches of land, cloaked in shadows, with dim lights showing from
a few farmhouses, and a wide expanse of sky, freckled with stars,
above. But Barbara was nearing home, and the dull pain which had
been with her since the last good-bys at college was forgotten, as
her eyes drank in every familiar detail of the shadowy landscape.
Above the purr and hiss of the engine sounded the jerky refrain of
the rails, and the girl’s heart echoed the words.
“Near-home, near-home,” it throbbed.
The noise of the train deepened as the piers of a bridge flashed
by. A porter with a lighted lantern passed through the car, and a
traveling agent in the seat ahead began to gather up his hand-
baggage. But Barbara still gazed out of the window, over the great
piles of pine that marked the boundary of the Auburn lumber-yard,
towards a dim light that shone down from the hill.
“Auburn, Auburn! This way out,” called the brakeman.
A thin, gray man stood at the steps of the car almost before the
wheels ceased to move. His voice and his hands went up
simultaneously.
“Hel-lo, little girl,” he said to Barbara.
“Dear old Dad!” said Barbara to him.

“We’ll have to trust to the livery,” said Dr. Grafton. “Maud S. has
had a hard day, and I didn’t have the heart to have her harnessed
again to-night.”
“There’s a rummage-sale hat,” laughed Barbara, as a driver in a
shabby suit of livery and an ill-fitting top hat approached for her
baggage checks.
Auburn knew naught of cabs. A “hack line,” including perhaps
three dozen carriages which had passed beyond the wedding and
funeral stage, attended passengers to and from the railway station.
In a spirit of metropolitanism which seized the town at rare intervals,
the proprietors of the “line” had decided to livery their drivers. So
they had attended a rummage sale, given by the women members
of an indigent church, and had purchased therefrom every top hat in
sight, regardless of size, shape, or vintage. These they had
distributed among their drivers in an equally reckless and care-free
way. Auburn, as a whole, had not yet ceased to thrill with pride at
her liveried service; but those of her inhabitants who happened to
be blessed with a sense of humor experienced a sensation other
than that of pride, upon beholding the pompous splendor of Banker
Willowby’s last season’s hat held in place by the eyebrows of
Peanuts Barker, or Piety Sanborn’s decorous beaver perched upon
the manly brow of Spike Hannegan.
The mutual enjoyment of this other sensation renewed the old
feeling of fellowship between Barbara and her father.
“It’s good to have you back, Girl,” he said.
Barbara crept a bit closer. “It’s good to be here,” she answered.
The Grafton house stood at the top of the longest hill in Auburn,
and it was ten minutes more before the carriage stopped at the
maple tree in front of the doctor’s home. The electric lights of
Auburn, for economical reasons, were put out upon the arrival of the
moon, and it was still and dark when the two started up the walk
together. The stars hung low near the horizon, a sleepy bird was

talking to himself in the willow tree, and the air was full of the bitter-
sweet of cherry blossoms. A little gray, shaggy dog came bounding
over the terrace to meet them, and the doorway was full of
children’s heads.
Barbara’s mother stood on the front porch. Her eyes were soft
and full, and her face was the glad-sorry kind. She did not say a
word, only opened her arms, and the girl went in.
The children’s greetings were characteristic. Eighteen-year-old
Jack added a hearty smack to his “Hello, Barb”; David laid a pale
little cheek against his sister’s glowing one; and the Kid thrust his
school report into Barbara’s hand, and inquired in eager tones what
gifts were forthcoming. Only one member of the family circle was
absent.
“Gassy’s gone to bed,” exclaimed Jack. “She’s got a grouch.”
“I have not,” retorted an aggressive voice. “Hello, Barbara.” A thin
little girl of eleven, in a nightgown, her head covered with bumps of
red hair wrapped about kid-curlers, seized Barbara from behind.
There was a vigorous hug, which sent a thrill of surprise to the big
sister’s heart, and Gassy became her own undemonstrative self
again.
“Gee, you ought to see how you look!” said Jack.
“You ought not, ’cause ’twould make you unhappy,” retorted
Gassy.
“I should think you’d feel unhappy, sleeping on that tiara of
bumps. Uneasy lies the head that wears a crown. You look just like a
tomato-worm.”
“Careful, Jack,” cautioned his father.
But the warning came too late. The small girl rushed at her
tormentor, leapt upon him, and thrust a cold little hand inside of his
gray sweater.

“There, there, children, don’t squabble before Barbara; she’s
forgotten that you are not always friends,” said Mrs. Grafton. “Run
back to bed, Cecilia; you’ll take cold. The rest of us are going, too.
It’s long past bedtime.”
Barbara had expected to find the first nights away from her
college room lonely ones; but the big four-poster, ugly as it had
always seemed to her, was an improvement upon the cot that was a
divan by day and a bed by night. Blessed, too, was the silence that
was almost noisy, out-of-doors, and the good-night pat of the
mother, as she tucked her firstling in. It was good, after all, to be at
home, and good, too, that she could be of use there. Her last
thought was of the new green carpet in the sitting-room below.
“It’s an outrage on æsthetics, that shade,” she said to herself. “I
wish mother hadn’t bought it until I got home. They do need me
here.”
“It’s the same old place,” said Barbara, at four o’clock the next
afternoon, “the same dear, old, sleepy place. Aside from the fact that
I find some more tucks let down in gowns and some more inches
added to trousers each year, I don’t think Auburn changes anything
—even her mind—from going-away time to coming-home time.
Procrastination is the spice of life, here.”
“The things that keep a town awake are usually sent away to
college,” said her mother, slyly. “But Auburn is solid, as well as
conservative.”
“It’s pitifully, painfully solid,” said Barbara. “If it only realized its
own deficiencies, there would be hope for it. But it is always so
complacent and contented with itself. The road that leads up the hill
to Dyer’s Corner is characteristic of the whole town. Some man with
plenty of time on his hands—or for his feet—ambled along up the hill
in the beginning of things, and for fifty years the people have
followed his long, devious path, rather than branch out and originate

another easier. I believe that any sign of progress, civic or
intellectual, would cut Auburn to the quick,—if there is any quick to
cut, in the town.”
“Haven’t you noted the fine schedule on our electric-car line?”
laughed her mother.
“That’s just what I was thinking of. I commented on the improved
time that the cars make to Miss Bates, this morning. To my surprise
she stiffened at once. ‘You ain’t the first to make complaint,’ she
said. ‘There ain’t no need of running a street-car like a fire-engine;
and they say that since this new schedule has been fixed, the
conductors won’t deliver dinner-pails to the factory men, or hold the
car for you while you go on a short errand. Auburn ain’t going to
tolerate that.’ Doesn’t that sound just like Miss Bates, and like
Auburn?”
“That’s right; run down Auburn,” said Jack, tossing his strap of
school-books on a chair, and hanging his cap on the rubber-plant.
“You’ll make yourself good and popular if you go about expressing
opinions like that in public. Auburn was good enough for Airy Fairy
Lilian in high-school days, but having received four years of
‘culchaw,’ and a starter on the alphabet to add to her name, the
plebeian ways of the old home-place jar her nerves. I like your
loyalty, Mistress Barbara!”
“That is totally uncalled for, Jack,” said Barbara. “I like Auburn as
much as you do. But it’s not an intellectual affection. I can’t help
seeing, in spite of my love for it, that the town is raw and Western,—
and painfully crude.”
“An intellectual affection! That’s as bad as a hygienic plum-
pudding,” groaned Jack. “If I didn’t have to go out to coach the
football team in five minutes, I would sit down and express my
sympathy at the stultifying life which you must lead for the next sixty
years. Unless, of course, we marry you off. There is always that
alternative.”

“I hope you are going to be contented, dear,” said Mrs. Grafton,
as her tall son relieved the rubber-plant of its burden, and clattered
noisily out of the room. “I realize that after four years of the jolly
intercourse you have had with the girls, and the growing college life,
we must seem slow and prosaic to you here; nothing much happens
when you are away. Of course, I don’t miss things as much as you
will. I’m used to the old slow way, and besides, I’m too busy to have
time to think of what is lacking. But I don’t want you to be hungry
for what is not. The happiest thing I’ve had to think about all these
four years, has been your home-coming, but I’ve been a little
worried about your coming, sometimes. Do you think you are going
to be contented with us?”
Barbara’s answer was judicial. “Why, yes, I think so,” she said. “Of
course I shall miss the college life, and the intellectual stimulus I had
there, but I’m going to work hard, too. All the theories I learned at
Vassar are just ready to be put into practice, and I have so much to
give the world that I can hardly wait to take my pen in hand. Oh, I
am so glad, mother, that my life-work is laid out for me. I tell you
frankly that I never could stand living in Auburn if I were not busy.
The sordidness of the workers, and the pettiness of the idlers, would
make me desperate. But I shall go to work at once, and write—write
—all the things I have been longing to give utterance to for four
years.”
“But you can’t write all the time,” said Mrs. Grafton.
“No, I don’t intend to. There are other things to do. There has
never been any organized philanthropy in Auburn, and there is
plenty of work for somebody in that line. I hope, too, that I may fall
in with some congenial people who will care to do some regular,
systematic study with me,—though I suppose they will be hard to
find in a town of this size. Then, too, I thought that I might help
Susan.”
Mrs. Grafton’s busy needle flew as she talked. “How, dear?”

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