Financial Report

A deficit of $19,266.88 for the fiscal year ending June 30 was shown in the financial report presented to the trustees by Halsey C. Edgerton, treasurer of the College, and recently published. The deficit brought forward from last year was met from various non-recurring items, and by exercise of economy at all possible points the deficit carried forward for future financing is only the deficit from the year's operations.

Figures of income and expense on a "per student" basis showed that the deficit amounted to $8.16 per student. "Perhaps the most significant facts which the tabulation shows," the report said with regard to the "per student" figures, "are that the charge for tuition represents only about half of the direct cost of operating the institution for the year, and that after allowance is made for scholarship aid, the students contribute only 45.2% of the total income, whereas the direct cost of instruction alone, but including Library operation under this term instruction, is 68% of the total expense."

"The most satisfactory phase of the financial operations of the year was the fact that we were able to close our books with a deficit of only $19,266.88," the report said. "The expenses of the College for a number of years have been rapidly increasing. Income has been growing almost rapidly enough to meet the expenses. In view of the decision of the Trustees not to reduce salaries of instruction and with the various commitments of one sort or another holding over from previous years, it was only by general cooperation of all departments that sufficient economies could be effected to check the increase and hold expenses substantially at their old level. With instructional services running in excess of one million dollars a year and salaries in connection with Library operation and Administration bringing such total salaries to a figure in excess of two-thirds of the grand total of expenses, it is evident that opportunities for reduction of expenses are limited.

"The result finally secured was made possible only by economies where such could be made and by some increase in income not anticipated at the time the budget for the year was adopted. The income from investments showed a decrease of $22,271.01. This would have been considerably larger if it had not been for some increases in the funds. Tuition and other student fees showed an increase of $22,485.28, due to an increase of about 50 in the enrolment and less shrinkage during the year. On the expense side, the principal increase was in the item of plant operation and maintenance in which was included an item for increased stacks in Baker Library for which commitment had been made before the financial situation had developed to be as serious as has proved to be the case. This accounted for $33,141.66. This is a non-recurring item. General Expenses included a large loss at the Hanover Inn."

The report referred to the Alumni Fund as a "strong bulwark, permitting the College to carry on." "The most striking thing about the Dartmouth College Alumni Fund on the Tucker Foundation is the extent to which the large proportion of Dartmouth men have been contributing to the result," Mr. Edgerton said. "This year 5,081 different persons participated, a shrinkage of only 4.4% in the number of contributions from the previous year."