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Near to the breakwater at the faded old seaside resort of Cape May, New Jersey, there looms an immense hotel of the twenties-formerly the fashionable Admiral Hotel, now called the Christian Admiral. Today it is the property of a small fundamentalist denomination, the Bible Presbyterian Church. To the rear of the hotel stand the new buildings of Shelton College, a Bible Presbyterian school for educating preachers and teachers-something of a seminary, something of a liberal arts college. The state of New Jersey has tried to prevent Shelton College from operating within the state; but this attempt has been rebuffed, at least for the time being, by a federal court ruling.1 Persistently, the state of New Jersey has also tried to prevent Shelton College from conferring degrees; here a federal court decision has sustained Shelton College again, at least for the time being.2 Whether Shelton can function fully as a school of higher studies, or survive at all, will probably be decided judicially within a few months. This interesting case is intimately connected with the developing law of churchstate contacts, including the entanglement test announced for the Establishment Clause by the Supreme Court.3 As such the case raises again long-debated questions of relationships between church and state in America. The principal issue in the Shelton College case is this: how far may state agencies regulate "pervasively religious" educational institutions? May a state forbid a college or school to exist unless it complies with state requirements and regulations repugnant to that educational institution's sponsoring religious body? Or, if such a college or school is

Shelton College and State Licensing of Religious Schools: An Educator's View of the Interface between the Establishment and Free Exercise Clauses