Wikipedia has an excellent Jazz education timeline here: http://en.m.wikipedia.org/wiki/Timeline_of_jazz_education

To answer the second part of your question is a bit harder, I've read hundreds of books about jazz musicians and don't remember any jazz musician objecting to the fact that jazz was being taught in schools. There was a controversy after WWII between BeBop and traditional jazz musicians. The traditional players objected to the growing movement by the modernists to make Jazz an art music and move away from it's good time, dance roots. But this difference of opinion existed from almost the beginning. There was movement in the 1920s to "make a lady of Jazz", to quote the famous band leader Paul Whiteman who commissioned Gershwin's "Rhapsody In Blue" as well as other modern pieces by Ellington, Bix Beiderbecke, etc. you can read a little about this controversy here: http://en.m.wikipedia.org/wiki/Moldy_figs

As far as further reading about how jazz was perceived in it's time see: The Jazz Cadence of American Culture, Edited by Robert G. O'Meally