Feeling the effects of its deliberate decision to limit the growth of its student body, Colgate University began to face the problem of a steady state in 1971 that many institutions are now having thrust on them for other reasons. This problem was brought to a head at Colgate in 1972, four years after the Board of Trustees adopted a "general guideline", connected with a policy of improving faculty salaries and increasing promotion standards, that no more than 55 percent of the faculty may be on tenure at any given time. What was fair treatment for those young faculty members who had been hired prior to this policy without knowing that it would reduce their chances of continuing employment, or tenure, past their probationary service? Should the guideline be abolished, raised to 65 percent suspended temporarily, or implemented in a flexible manner? All these questions are explored in this document, their anticipated consequences are debated, and the compromise solution, adopted in January 1973, is presented. (Author/PG)