Financial Condition for the Year
THE TREASURER AND BURSAR REPORT BALANCED BOOKSAND PAYMENT ON DARTMOUTH HALL RECONSTRUCTION
DARTMOUTH'S fiscal year ended June 30. The treasurer of the College, Halsey C. Edgerton '06, and tne Dursar, Max A. Norton '19, have compiled their annual report showing the financial condition of the College at the close of the past year and the results of the year's operations. In his foreword to the report, addressed to the Trustees, Mr. Edgerton says: "Again it has been possible to close the books for the year without carrying forward a deficit and again this has been possible because of the Alumni Fund." In addition to balancing the books the subscriptions of more than 7,500 alumni made possible a further reduction of the account for the rebuilding of Dartmouth Hall.
Concerning this major expense item, caused by the destruction of Dartmouth Hall by fire on April 25, 1935, the report shows that the total cost of rebuilding and re-equipping was $211,871.58. Every precaution was taken in rebuilding to make the new hall fireproof. A portion of the Alumni Fund last year was applied to reconstruction costs and another payment was made through the Fund this year. These payments, plus the insurance adjustment, leave an obligation of $97,821.98 outstanding on the new Dartmouth Hall project.
PLANT VALUED AT NEARLY 7 MILLION
The total plant valuation of the College appears on the books at $6,909,569.43, an increase for the year of $210,823.95. Endowment funds total $17,239,839.34, or 70.5% of the total balance sheet figure. Endowment has been increased during the year by several gifts, all of which are listed in the financial report. Mr. and Mrs. Lewis Parkhurst have made a further and generous addition of $25,000 to the special endowment fund for the maintenance and operation of Parkhurst Hall which has been steadily augmented by gifts of the donors of the building.
A settlement of the May E. Morrill Estate brought a total bequest of $62,113.98 to the College, for instruction purposes, and there was payment during the year of the Adolph S. Ochs unrestricted bequest of $25,000. Mr. Edgerton, and other officers of the College, have frequently stated the great value of gifts to endowment. These funds, often established as memorials, are held intact so far as principal amoujits are concerned and only the income devoted to meeting instructional or other general expenses of the College.
In his introduction Mr. Edgerton discusses the investment situation for the past year and reveals that of the total endowment 38.7% is held in stocks, 35.2% in bonds, and the balance in real estate and mortgages. Of the last group, dormitories form the largest single item (13%) for they are carried as investments and not as physical plant. The net return on investments for the year was 3.44% as compared with 3.52% for the preceding year. On the subject of investments carried in the Dartmouth portfolio Mr. Edgerton points out that "During the year a number of changes have been made in the investments but these have not represented any radical change of investment policy. Some bonds were called in connection with corporate refunding operations during the year. A few of the newer low-rate issues were taken and some stocks were purchased. In an effort to diversify our portfolio, a portion of several large holdings of stock, principally Chase National Bank in the Tuck Fund and Standard Oil Company of New Jersey in Associated Endowments, were sold and the proceeds reinvested in other stocks.
"Further progress was made in consolidating some of the smaller holdings received in connection with the settlement of different estates in which the College has been a beneficiary.
"Notwithstanding such changes, we continue to hold many items received as gifts or bequests which would not have been purchased by us as investments. Our portfolio, in common with the portfolios of our sister institutions, always has had and probably always will have many items of this nature. This situation should be kept in mind at all times in studying the list of holdings of any educational institution."
INCOME AND EXPENSE
After indicating that it was proceeds from the Alumni Fund that prevented a deficit during the past year, Mr. Edgerton's introduction to the annual report discusses income and expense for the period. He says:
"The expenses for the year amounted to $1,766,525.04, an increase of $46,632.29. There was some increase in expenses for all major classifications as indicated on page 12 of the report. Plant operation and maintenance expenses showed the most substantial increase, due in part to our practice of writing our fire insurance policies on a three-year term with a renewal during the year. While this procedure of handling items of this nature on the cash basis rather than the accrual basis differs from the usual commercial accounting procedure, we believe it is the desirable practice for an institution like Dartmouth College.
"Income also showed increases under all of the major classifications except that from students which showed a net reduction of 16,927.27. This was a result of the small reduction in the number of students in College, this total having been reduced from 2,480 to 2,460. The greatest increase was in the items of Gifts for Current Use, the larger items being the increase in the Alumni Fund and the increase in the grant from the Rockefeller Foundation for the purpose of conducting research in Physiological Optics.
"A tabulation is given below showing the percentages of total income and expense represented by the various major classifications in our accounts and the figures reduced to a per student basis. Attention is again called to the care which should be used in drawing conclusions from any per student figures. They are included in the hope that the value of the figure may exceed the dangers of misunderstandings and misapplications.
ALUMNI FUND
"The Dartmouth College Alumni Fund on the Tucker Foundation again made a wonderful showing, setting a new record for number of contributors, 7,542, and reaching a total in contributions which is the highest figure since 1931. The total contributions for the year, before applying income on Special Funds, aggregated $92,104.26, a gain of 11.73 per cent. After adding the income of Special Funds and the income of the Charles H. Gould Memorial Fund, the income of the General Fund and the deduction of expenses, there was available for distribution $88,777.91.
"The Alumni Fund, year by year, has made it possible for the Administration of the College to go forward with plans which have represented real progress, with expenditures which otherwise would have had to be deferred or eliminated. The items cannot be tabulated. So many different decisions are affected by the availability of the Fund that it truly represents a cross-section of the whole financing of the College. The application of the Alumni Fund over so broad a base has made the amounts contributed of the greatest possible usefulness to the College.
"To all the contributors, and especially to the Class Agents and Officers who have made this possible, I indicate the great debt of gratitude continuously recognized by the official family of the College."
COPIES OF REPORT AVAILABLE
Attention of alumni is called to the free distribution of printed copies of the complete Financial Report. It may be secured, by those who are not already on the mailing list, by addressing a request to the Treasurer's Office, Hanover, N. H.
