Favorable Financial Year

Treasurer's Report Shows 1940-41 Deficit More Than Met

WITH ITS OPERATING deficit for the year amply covered by the Alumni Fund and with its total assets increased by over two million dollars, the College ended an unusually favorable financial year on June 30, it was made known in the annual report to the Board of Trustees by Halsey C. Edgerton '06, Treasurer, and Max A. Norton '19, Bursar.

The record-breaking 1941 Alumni Fund, honoring President Hopkins on his twenty-fifth anniversary, met what would other- wise have been an operating deficit o£ $79,211.16 for the fiscal year 1940-41. This difference between expense and income was $20,622.30 lower than the deficit of $99,833.36 for the preceding year. President Hopkins also designated that $7,891.18 of the Fund be used to complete the financing of Dartmouth Hall's reconstruction and that, after the application of $2,900 to Thayer School, the balance of $87,904.54 plus pledges of $8,123.80 be held as a reserve fund for uses to be specified by him at a later date.

ASSETS TOTAL 27 MILLIONS

The grand total of the Dartmouth College balance sheet had reached the figure of $27,798,121.71 when the books closed on June 30. This is an increase for the year of $2,046,239.22, the second largest increase for any one year in the history of the College. The greater part of this growth in assets is represented in the net increase of $1,586,642.71 in endowment funds to which were added $1,208,691.33 under the settlement of the estate of Justice William N. Cohen '79 and $512,599.83 under the settlement of the Emil Bommer Estate.

Total income and expense for the year 1940-41 balanced at $1,933,635.50, a figure only $1,405.47 larger than last year's total. Net income from investments amounted to $706,288.89 and was $19,121.32 greater than last year, offsetting a slight decrease of $1,540.76 in income from students, which totaled $970,675.69, and accounting for the smaller operating deficit than for the preceding year. Miscellaneous income of $97,572.12 also showed an increase of $4,828.58.

On the expense side, instructional costs increased somewhat by $5,544.38 and health service costs increased by $5,518.68, while general expenses showed a sizable decrease of $15,281.00 and smaller decreases were posted for administration and plant operation and maintenance.

The table printed on this page shows the income and expense of the year on a per student basis. Students are not directly involved in all the expenses of the College, and such averages are subject to qualification. Despite the danger of misinterpretation, the table offers an interesting break- down of College financing for the year and is again printed for the benefit of alumni readers.

The average net return on all College investments was an even 4%, compared with 3.94% for the previous year. The rate of return realized was 5.73% on preferred stocks; 4.28% on common stocks; 3.75% on bonds; 4.31% on real estate mortgages; 4.83% on dormitories, which are carried as investments of endowment funds; 2.76% on Hanover real estate; and 0.46% on real estate outside of Hanover.

The book value of College investments on June 30 was $19,526,934.08, an increase of $1,493,650.08 during the year. Dartmouth holds a larger investment in common stocks than in bonds, a distribution accentuated by the receipt of stocks accepted in the settlement of estates. The percentage of investments represented by common stocks increased to 34.9%, preferred stocks to 8.3%, with bonds reduced to 30.5%. Expressed as percentages of security holdings rather than of total investments, common stocks represent 47-3%, preferred and guaranteed stocks 11.3%, and bonds 41.4%.

At the end of the year the market value of all the College's bond investments represented 92% of book values as compared with 83.2% the year before. On preferred and guaranteed stocks the percentage was 95.5%. in comparison with g0.6%, and on common stocks it was 73% as compared with 68.3% for the preceding year.

The valuation of Dartmouth's educational plant is carried on the books at 17,525,093.46 or 27% of the total assets. If dormitories and certain service properties, which are carried as endowment investments, were included the total plant figure would be $10,541,886.55. During the past year, nineteen different funds, aggre- gating $505,582.63, all without any restric- tions on their use, were allocated by vote of the Trustees to the plant funds, thereby virtually covering the financing of Thayer Hall, heretofore carried as unfinanced at $340,755.22, and of land acquired from time to time without funds being specifically allocated for that purpose.

Following the transfer of these funds to the plant account, the total of endowment funds stood at $19,549,637.86 or 70.3% of the total balance sheet. The $1,208,691.33 added to endowments through the settlement of the William N. Cohen Estate was the fourth largest sum received from a single benefactor in the history of the College. From this fund $400,000 has been set apart as an endowment for scholarships in accordance with the preference expressed in the will; $125,000 has been set apart as an endowment for the support of music, drama and belles lettres, for which annual contribution had been made over a period of years in the name of the Class of 1879; and the balance, $683,691.33, is being carried until otherwise ordered as an unrestricted fund functioning as endowment.

In closing his introduction to the financial report, Mr. Edgerton again paid tribute to the vital role which the Alumni Fund plays in College financing. "This year many of us were expecting new records," he wrote, "but the final result was so much ahead of anything that we had contemplated that no superlatives which I have would be adequate to express the amazement, the delight, and the gratitude which we have in the accomplishment

"The deep gratitude of everyone connected with the official College goes out to all the contributors and to all the workers who have made possible such a wonderful exnibition of loyalty. President Hopkins has been given a very real inspiration."

Printed copies of the complete Financial Report for 1940-41 are available on application. Alumni not already on the mailing list may obtain copies by sending a request to the Treasurer's Office.

Faculty Additions

EIGHT NEW APPOINTMENTS to the Dartmouth faculty and a change in position for an administrative officer were announced during the summer. C. Dean Chamberlin '26, assistant to the Dean of Freshmen, on special leave during the past several years, has resumed active administrative work this fall as Associate in Personnel in the Personnel Bureau.

The faculty members added since June are Prof. Warner Arms Wick of Central Y.M.C.A. College of Chicago, who has come to Dartmouth as Exchange Professor of Philosophy, exchanging posts with Prof. Albert W. Levi '32; Kenneth K. Edgar as Assistant Professor of Industrial Engineering in the Thayer School, replacing Clyde I. Millard who resigned shortly after his new appointment in June; Daniel Marx Jr. '29, and Charles G. Coit, both as Instructor in Economics; Carl H. Nordstrom as Instructor in Physics; Ray L. Watterson as Instructor in Zoology; Lt. Piltti Heiskanen as Instructor and Director of Recreational Skiing; and George L. Mason as Assistant in Physics.

ZOOLOGY INSTRUCTOR DRAFTED

During the summer the College received the resignations of Dr. Leroy A. Shattuck as Instructor in Economics and of Richard A. Montgomery as Assistant in Physics. Charles E. Wilde Jr. '40, Instructor in Zoology, was called up for Selective Servive training and was granted leave of absence for the present academic year.

Eighteen other new faculty members, appointed earlier in the year, also took up teaching duties with the start of the new college year on September 18. John Pelenyi, until recently Hungarian Minister to the United States, asumed the post of Visiting Lecturer in Political Science, with the rank of full professor; and Walter Curt Behrendt, former member of the Dartmouth art staff, returned as Lecturer in City Planning and Housing, with the rank of full professor. Dr. John Clinton Adams, former faculty member at Princeton, assumed his post as Assistant Professor of History, to teach courses in modern European history; and Charles J. Gaa joined the Tuck School staff as Assistant Professor of Accounting and Finance.

New instructors included Jerry Donohue III '41 and John E. Eldridge, Chemistry; Walter E. Bezanson '33 and Vernon Hall Jr., English; David A. Shand, Music; Dr. Bernard Brodie, Political Science; James F. Crow, Zoology; Dr. Richard H. Barrett, Pharmacology, Medical School; Dr. Reginald K. House, Pathology, Medical School; Dr. Arthur S. Cain, Teaching Fellow in Pathology, Medical School.

New assistants included Irving S. Fisher and Gwyn Bulwer Lytton, Geology; Charles P. Hadley '41, Physics; and Richard K. Muller, Engineering, Thayer School.

Transportation Chairman

THE APPOINTMENT OF Nelson Lee Smith '21, former Dartmouth professor of economics, to the Federal Board of Research and Investigation of Transportation was unanimously confirmed by the U. S. Senate in August. Shortly thereafter President Roosevelt named him chairman of the Board. Chosen last March as Republican member of the Board, he was the only survivor of the three original appointees. Finally confirmed with him this summer were Robert E. Webb, chairman of the Kentucky Public Service Commission and Cyril E. Childe, of Nebraska. The board was created by Congress under the general Transportation Act to make a complete study of the entire transportation problem and to investigate the facilities of transportation by rail, motor vehicle and coastwise shipping. Originally named for two years, the members who will receive $10,000 annually, may be retained for an additional period at the discretion of the President. They will report to the President and to Congress each year.

Mr. Smith, who started an academic career at Dartmouth immediately after graduation, first entered public life by serving on the New England Governors' Railroad Committee in 1929, 1930 and 1931. Appointed a member of the New Hampshire Public Service Commission by Governor John G. Winant in 1933, he was made its chairman in 1934 and that year was also made a full professor of economics by the College. Since then he has served as president of the National Association of Railroad and Utility Commissioners and of the National Association of Utility Commissioners. He is the author of TheFair Rate of Return in Public Utility Regulation and, with Prof. Bruce Knight, of a two-volume text entitled Economics.

Plant Activities

BUILDING OPERATIONS AT Dartmouth this summer centered chiefly around the installation of a new boiler at the heating plant and the remodelling of the Webster Hall stage. What was expected to be the major plant undertaking—the construction of additional stack space at the north end of Baker Library—was held up by the national defense program which made it impossible to obtain the steel necessary for the addition. Work on the foundations of the new stacks was begun shortly before College opened, however, so that the construction can move ahead rapidly as soon as steel becomes available.

In place of the temporary, movable stage which has long been used in Webster Hall the College this summer put in a permanent stage and removed several of the pillars and the rear archway, as well as the small balconies in the wings, to create more space and facilitate the presentation of plays and concerts. New overhead beams and rigging were also installed to improve the staging of plays.

The College roadway leading from Fayerweather Row to East Wheelock Street was widened and straightened during the summer, and new sidewalks were laid around Rollins Chapel. The Town of Hanover constructed new walks from the Chapel to Wheeler Hall and also installed sidewalks along North Park Street and near the Mary Hitchcock Hospital.

The usual College program of repairing and refurbishing the buildings and grounds was carried on throughout the summer, although the difficulty of this was increased by the growing use of Dartmouth buildings for conventions and other summer events.

Athletic Deficit Reported

OPERATIONS of the Dartmouth College Athletic Council during the fiscal year 1940-41 resulted in a deficit of $32,429.03. This represents a loss of $41,246.23 over last year's modest surplus and of $33,473 over the original budget estimate for the year. The major factor in the 1940-41 financial showing was a decrease of $54,207.26 in the net income from varsity football, which posted an operating surplus of only $45,658.85 compared with $99,866.11 last year.

Total athletic receipts of $151,522.27 were 196,575.80 lower than last year, while total expenditures were $57,511.03 lower. Following the fall season, the athletic budget was drastically revised, with the result that total expenses were $29,000 lower than in the original budget. The past year's deficit will be covered by the comparatively small surplus fund built up by the Athletic Council in recent years.

Basketball was the only sport which improved its income appreciably over the preceding year, showing a gain on the books of $1,728. Soccer, squash, swimming, freshman football, and the tennis courts showed greater deficits than in the preceding year, but all the other sports and expense items showed improvement, notably basketball, hockey, track and administration.

Foreign Policy Prize

A DARTMOUTH COLLEGE committee of three seniors and a faculty adviser won second place in a national contest for the best studies on "The Next Decade of American Foreign Policy," it was announced last month by the Institute for National Policy of the College of William and Mary. First place among the 144 in- stitutions competing went to Washington and Lee University and third place to Ursinus College. Each of the three committees received a national prize of $450.

The Dartmouth committee, under the faculty guidance of Prof. Frank Maloy Anderson of the History department, was made up of three Senior Fellows: Charles G. ISolte '41 of Greenwich, Conn.; Richard B. McCornack '41 of Chicago; and Law- rence E. Thompson '41 of San Marino, Calif. These three seniors covered, in their special interests, the modern history of Europe, the Americas, and the Far East.

Judges of the national contest were Senator Elbert D. Thomas of Utah, vice president of the American Society of Internation Law; Admiral Harry E. Yarnell, U.S.N., retired, former Commander of the Asiatic fleet; and Hanson W. Baldwin, military and naval correspondent of TheNew York Times.

Thayer Overseer

AT A MEETING of the Overseers of the Thayer School of Civil Engineering, held during Commencement last June, Charles F. Goodrich '05 of Pittsburgh, Pa., was elected an Overseer to fill the unexpired term of Otis E. Hovey '85 whose death occurred last April.

Mr. Goodrich is a graduate of Thayer School, in the class of 1906, and since graduation has been employed by the American Bridge Company successively as draftsman, estimator, designer, Assistant Chief Engineer, and as Chief Engineer, which position he now holds. Mr. Goodrich is a member of the American Society of Civil Engineers, the American Society for Testing Materials, and the American Welding Society.

Class Reunions

WITH THE NEW PLAN o£ dates for class reunions approved by the classes concerned last June, the same plan will be followed next spring unless further changes are made by the Alumni Council at its meeting next month.

The classes from the oldest reuning group through the 25th year class will hold their reunions during Commencement on June 12, 13, 14. These classes are: 1877, 1882, 1887, 1892, 1897, 1902, 1907, 1912, 1917.

The four youngest reuning classes will meet in Hanover a week later, June 19, 20, 21. These classes are: 1922, 1927, 1932, 1937.

As part of the plan followed this past year, joint meetings of class secretaries, club and association secretaries, class agents, and class treasurers were held in Hanover for the first time during the later reunion week-end. It is probable that these groups will meet in Hanover June 19-20, 1942.

The attendance at Hanover Holiday in June exceeded that at any previous program of faculty talks. The dates of the Holiday this year will be June 15-19, immediately following Commencement and ending with the younger class reunion week-end.

A discussion of the success of the new reunion plan is scheduled for the Alumni Council meeting in New York, November 7, to be led by Francis L. Childs '06, chairman of the Council's Committee on Alumni Projects. Reports from classes that received the new plan with approval in its first trial will be presented and methods of improving the program of both reunion week-ends will be discussed.

Football Week-ends

IN RESPONSE to inquiries about the availability of Thayer Hall for non-student patronage, Mrs. Elizabeth Hayward, manager, wishes to make clear that alumni and other visitors are invited to use the dining facilities at any time. Complaints have been made that Hanover cannot satisfactorily absorb the crowds for meals during football week-ends, Carnival, and Commencement; but with the new class reunion plan removing the over-crowding at Commencement, it is felt that crowds on other occasions can be handled by the Inn and Coffee Shop, Outing Club House, local restaurants and nearby hotels, and Thayer Hall.

Consideration has been given to establishing cafeteria service at the gym for lunch on days of home games. The plan will not be followed this fall and will only be adopted if existing eating places are not adequate.

RICHARD V. CHASE ' 11 Who began his first term of three years onthe Alumni Council in June succeeding tothe Council membership of Sumner B. Emerson '77 which ended with a second term.

INCOME AND EXPENSE SHOWN ON A PER STUDENT BASIS Amount for Proportion AmountIncome Year of Total per Student Students $ 970,675.69 50.20% $397.65 Net Income from Investments 706,288.89 .36.52 289.34 Miscellaneous 97,572.12 5.05 39.98 Gifts 159,098.80 8.23 65.18 Totals $1,933,635.50 100.00% $792.15 Expenses Instructional including Library $1,241,101.21 64.19% $508.44 Health Service 97,228.52 5.03 39.83 Administration 204,971.25 10.60 83.97 General 88,539.39 4.58 36.27 Plant Operation and Maintenance 192,224.72 9.94 78.75 Restricted Current Funds 52,467.55 2.71 21.50 Annuities and Additions to Principal 57,102.86 2.95 23.39 Totals $1.933,635.50 100.00% $792.15

Financial Report of the Athletic Council Operating Surplus and Deficit for the Year Ending June 30,1941OperatingSurplus* or I. Departmental Income Expense Deficit A. Varsity 1. Baseball..... $ 4.331-37 Ii 5.353-22 I 8,021.852. Basketball..... 15,277.91 16,003.58 725-67 3. Cross Country...... 85.00 1,654.68 1,569.68 4. Football....... 116,694.96 71,036.11 45,658.85*5. Golf...... 10.00 672.17 662.176. Hockey..... 6,671.38 9.934-77 3.263.397. Lacrosse..... 425.00 3.335-84 2,910.848. Soccer........ 75.00 3.580.96 3.505.969. Squash....... 1,911.94 1,911.94 10. Swimming......... 667.25 6,557.30 5,890.05 11. Tennis.......... 513.00 1,692.19 1,179.19 12 Track......... 643.61 12,709.28 12,065.67 B. Freshman 1. Baseball....... 150.00 1,380.13 1,230.13 2. Basketball..... 40.00 1,333.54 1,293.543. Cross Country...... 45.00 1,010.65 965.654. Football...... 1,377.50 8,388.02 7,010.525. Golf....... 40.00 40.00 6. Hockey....... 225.00 1,215.11 990.117. Lacrosse .....50.00 123.93 73.93 8. Soccer...... 15.00 215.20 200.209. Swimming..... 90.00 863.77 773.77 10. Tennis....... 55.50 318.18 262.6811. Track...... 175.00 3,272.68 3,097.68Total...... $147,657.48 1159,603.25 111,945.77 11. Administration...... $ 20,983.59 120,983.59 III. Other1. Concessions...... $ 3,524.74 $ 2,786.75 $ 737.99* 2. Tennis Courts..... 340.05 577.71 237.66 Total..... $3,864.79 f 3.364-46 $ 500.33* TOTAL..... $151,522.27 $183,951.30 $32,429.03