From “My Uncle the Netziv” (p 204):
Anyone with eyes in his head could see that the students of Volozhin were quite knowledgeable in secular studies: they took an interest in science, history and geography and knew many languages. In fact, those students who desired to pursue these disciplines succeeded in learning twice as much as any student at a state institution. In Volohzin, Torah and derech eretz walked hand in hand, neither one held captive by the other. It was the special achievement of the Volozhin student that when he left the yeshiva, he was able to converse with any man in any social setting on the highest intellectual plane. The Volohzin student was able to conquer both worlds — the world of Torah and the world at large. A well-known adage among parents who were trying to best educate their children was, “Do you want your child to develop into a complete Jew, dedicated to Torah and derech eretz? Do you want him to be able to mingle with people and get along in the world? Send him to Volozhin! (page 204)
R’ Epstein explains what was actually proposed, which caused his uncle to close the yeshiva.
On the twenty second of October 1891, the Minister of Education certified a system of changes to be established in the Volozhin Yeshiva, four of which struck at its main life-giving arteries and imperiled its existence. They consisted of the following:
1. The general studies program shall take place between nine o’clock in the morning and three in the afternoon.
2. There shall be no [yeshiva] studies at night at which time the yeshiva building shall be closed.
3. The entire study program shall be no longer than ten hours per twenty four hour period.
4. The Rosh yeshiva and all the instructors shall possess an educational degree.
The result of all this was that during the winter months no time at all would remain for studying the Talmud. Even in the summer, considering that the general studies program would finish at three in the afternoon followed by lunch, only minimal time would remain for Torah study. The students would also be exhausted from 5 or 6 hours of general studies, and thus the best hours of the day would have been wasted.
It is clear that these conditions, capped by the impossible demand that every single teacher from the Rosh yeshiva down to the instructor of the lowest shiur, have a degree, left my uncle with very little choice. “Under these conditions what do I need the yeshiva for and for what does the yeshiva need me? This will no longer be a yeshiva but a school. Aren’t there enough schools in this country already? (pages 206-207)