College Finances Sound

Treasurer's Report for 1941-42 Shows Balanced Books And Moderate War Reserve, Thanks to Alumni Fund

IN ITS FIRST FINANCIAL REPORT since the start of the war, Dartmouth College last month disclosed that it had balanced its books for the fiscal year ending June 30, 1942, and had put aside a modest reserve of some 123,000 as a war emergency fund. Once again the Alumni Fund was given major credit for the favorable showing for the year and was hailed as "a truly magnificent accomplishment" by Halsey C. Edgerton 'O6, treasurer of the College, who made the annual financial report together with Max A. Norton 'l9, bursar.

The 194 a Alumni Fund covered what would otherwise have been an operating deficit of $154,108.97 for the year. This difference between expense and income was 174,897.81 greater than the deficit covered by the Fund the preceding year. Of the total of $192,723.29 available for current use, after the receipt of about $8,OOO on pledges made the year before, $3,200 was allocated to Thayer School under a special Fund agreement; $4,222.95 was used to pay the balance on the Moosilauke construction; $7,995.80 was added to the Hopkins 25th Anniversary Fund; and the remainder of $23,195.57 was designated as a War Emergency Reserve to be administered along the same general lines as the Hopkins Anniversary Fund.

For the first time in the College's history the grand total of the annual Income and Expense Account passed the $2,000,000 mark. The books were balanced at the figure of 12,023,001.28, or $89,365.78 more than the year before. Net income from investments amounted to $724,568.75 and was $18,279.86 greater than for 1940-41, partially offsetting a drop of $29,322.03 in income from students, which totaled $941,353.66. Miscellaneous income was up by approximately $20,000, to $115,854.45, and gifts for current use, totaling $236,607.69, were $77,508.89 greater than for the year before.

The increase in expenses for the year 1941-42 applied to all the major classifications with the exception of the Health Service, which showed a small reduction of $2,600. Instructional costs rose $11,444.96 to a total of $1,119,471.16, and the associated expenses for the College libraries increased by $8,407.43 to a total of $141,482.44. Administrative costs of $220,265.10 represented a rise of $15,293.85, while the expenses of plant operation and maintenance totaled $218,533.04 and were up $26,308.32 over the figure for the preceding year. General expense also increased by $22,674.79 to the total of $111,214.18.

Since the summer semester under Dartmouth's accelerated program cut across fiscal years and since the principal expense fell in the year 1942-43, tuition and room rents for the summer have been carried forward under deferred income credits and will appear in the totals for the present fiscal year. Arrangments for the housing and feeding of successive units of the Naval Training School at Dartmouth become effective in the new year.

The tabulation of income and expense for the year on a per-student basis is customarily included in the Treasurer's Report and is presented on this page. Since students are not directly involved in all the expenses of the College, such a table is subject to qualification and might be misinterpreted; but it offers an interesting break-down of College financing for the year and is again printed for the benefit of alumni readers.

ASSETS TOTAL 28 MILLIONS

The grand total of Dartmouth College assets was $28,445,136.69 when the books closed on June 30. This is an increase for the year of $647,014.98 or 2.3% of the balance sheet. The total of endowment and similar funds stands at $19,667,988.01 or 69.1% of College assets. This represents a net increase over last year of $118,350.15, the largest item in the increasg being a payment of $lOO,OOO on account of a pledge made in previous years for instructional purposes and carried on the books as Anonymous Fund No. 4.

The valuation of Dartmouth's educational plant is carried on the books at $7,- 600,468.39- This represents 26.7% of the total assets of the College and is only about 575,000 greater than last year's valuation. If dormitories and certain other service properties, which are carried as endowment investments, were included the total plant figure would be 110,609,629.63. During the year $lOO,OOO was transferred to plant funds from the unrestricted William N. Cohen Fund to finance the addition to Baker Library, and the usual $lO,OOO was charged to operating expenses to provide for the financing of the Reed Hall reconstruction. The only unfinanced item now in the plant account is the $20,000 balance on this reconstruction.

The addition to Baker Library was necessary to house the growing collection of books and was authorized only slightly ahead of the time which was anticipated when the Library was planned. The work has gone ahead slowly without application for any priorities, and although the addition cannot be completed entirely, due to war exigencies, it will be occupied in part late this fall.

The average net return from all investments for the year 1941-43 was 3.81% as compared with 4.00% for the previous year. The rate of return realized was 5.60% on preferred stocks; 4 53% on common stocks; 4.23% on real estate mortgages; 3.97% on dormitories; 3.50% on bonds; 2.19% on Hanover real estate; .38% on real estate outside of Hanover; and a deficit of 1.51% on the Tuck School dormitories and refectory.

The book value of College investments on June 30 was $20,374,754.15, an increase of $847,820.07 during the year. The percentage of investments represented by bonds rose from 30.5% to 33.86%, while common stocks, hitherto the largest holdings, dropped from 34.9% to 33.21% of total investments. Expressed as percentages of security holdings rather than of total investments, common stocks dropped from 47-3% to 44-13% while bonds rose from 41.4% to 45.0%. Preferred and guaranteed stocks represent 10.87% of security holdings, compared with 11.3% the year before;

The College's security holdings are 27.41% in industrials; 25.65% in public utilities; 21.74% in railroads; 10.19% mining and oil; 8.08% in financial stocks; and 6.93% in government and municipal bonds. Holdings of United States Government securities were increased during the year from $258,125 to $588,449.50.

At the end of the year the market value of the College's bond investments represented 93.2% of book values, a slight gain for the year. On preferred and guaranteed stocks the percentage was 82.2%, and on common stocks 63.3%, both decreases.

In closing his introduction to the financial report to the Trustees, Mr. Edgerton once again paid tribute to the Alumni Fund and to the all-important role which it annually plays in College financing.

"In 1940-1941 the Dartmouth College Alumni Fund broke all records as the Ernest M. Hopkins Twenty-Fifth Anniversary Fund," he wrote. "We considered this a remarkable showing and one which would not soon be equalled. Nevertheless, without the stimulus of the Twenty-Fifth Anniversary appeal, the totals for 19411942 are in excess of the figures for the previous year—an amazing accomplishment and a remarkable evidence of the generous feeling which Dartmouth men have for their College.

"The contributions for the year including the income from special funds totalled $195,715.98 as against a comparable cash figure for the previous year of $188,164.17. The figures of the previous year included $17,307 contributions from parents and friends to whom no special appeal was made this year. In addition during the current year about $8,OOO was received on pledges made during the previous year so that the grand total actually available during the current year after meeting the expense of the campaign and the application of income from the General Fund was $192,723.29 as against a comparable figure of $177,906.88 for the previous year. If the pledges of the previous year were treated as applicable to that year the comparative showing is still spectacular..

"This year contributions were received from 10,925 persons. The total number of living graduates stands at 13,142 and living non-graduates at 5,942

"As Treasurer of the College I want to make record of the deep gratitude of the official College and the great inspiration to the administrative personnel resulting from such a magnificent accomplishment."

Printed copies of the complete Financial Report for 1941-42 are available on application. Alumni not already on the mailing list may obtain copies by writing to the Treasurer's Office at the College.

SINCE EARLY IN THE COLLEGE YEAR 1940-41, a total of 58 members of the teaching and administrative staff have left Dartmouth to enter war service. These men hold positions in the Army, Navy, Marine Corps, and various government departments. In the case of the latter, their war service listing in the following table is very often given simply as Washington, since in some instances, it is inadvisable to reveal the exact nature of their work. It will be noted that several faculty members have left Hanover to go into defense industries. In most of these cases the men have been called upon to do research and specialized work which is vital to the expanded war program in industry.

The following list has been drawn up from faculty and alumni records to make the most recent information available.

Name JOHN C. ADAMS PAUL S. ALLEN '26 HAROLD M. BANNERMAN DONALD BARTLETT '24 GEORGE K. BEEBE ADRIAN N. BOUCHARD NATHANIEL G. BURLEIGH 'll RALPH A. BURNS EDWARD T. CHAMBERLAIN JR. '36 C. DEAN CHAMBERLIN '26 JOHN H. CUTLER ARTHUR N. DANIELS ALBERT L. DEMAREE GEORGE E. DILLER JOEL W. EGERER H. WENTWORTH ELDREDGE '3l JOHN W. FINCH IRVING S. FISHER ROBERT P. FULLER '37 CHARLES J. GAA JESSE M. GALT '36 JOHN W. HARRIMAN MALCOLM C. HENDERSON HENRY L. HEYL ARTHUR B. HILLEGAS RALPH W. HUNTER '3l DAVIS JACKSON '36 ROBERT E. LANG '38 RUSSELL R. LARMON 'l9 HOWARD P. LINTON '34 FRANCIS A. LINVILLE GWYN B. LYTTON DANIEL MARX '29 J. MILTON MCDANIEL ROBERT A. MCKENNAN '25 DUNCAN MCLARTY FRANCIS E. MERRILL '26 NATHAN T. MILLIKEN RICHARD A. MONTGOMERY MILLETT G. MORGAN CHARLES E. MORITZ '32 ELLIOT B. NOYES '32 ROBERT R. O'BRIEN '4O HENRY S. ODBERT '3O WALTER PRAGER HARRY L. PURDY JOHN A. RAND '38 FORD K. SAYRE '33 EMIL SCHNAP GEORGE L. SCOTT '25 JAMES L. SCOTT RICHARD E. STOIBER '32 JOHN P. TROXELL THOMAS H. VANCE ALBERTO VAZQUEZ PHILIP A. WHITE '37 HENRY B. WILLIAMS CHARLES E. WILDE '4O

Department History Library Geology Biography Spanish Staff photographer Tuck School Education Administration English Spanish Thayer School History French English Sociology English Geology Athletic Council Tuck School Medical School Tuck School Physics Medical School Botany Medical School Administration Administration Admin. 11-12 Library Economics Geology Economics Economics Sociology Botany Sociology Medical School Physics '' Thayer School Zoology Physical Ed. Philosophy Psychology Ski Coach Economics DOC, Gen. Mgr. Hanover Inn, Mgr. Medical School Education German Geology Tuck School English Romance Lang. Carpenter Gal. English Zoology

War Service 2nd Lt. USA Washington Washington (Geol. Survey) Washington Defense Industry Corp. USA Coast Artillery WPB, Washington Capt. USA Air Corps Ensign USNR Ist Lt. USA Air Corps Lt. (jg) USNR Lt. Comdr. USNR Lt. USNR Ist Lt. USA Air Corps Ist Lt. US Marine Corps 2nd Lt. USA Air Corps Lt. (jg) USNR Ensign USNR Lt. (jg) USNR OPA, Chicago ist Lt. USA Medical Corps Capt. USA Air Corps Research for Navy Capt. USA Medical Corps Army Dermatological Survey Lt. USNR Medical Corps Lt. (jg) USNR Washington OPA, New Hampshire Director Library of Congress State Dept., Washington Washington War Shipping Admin., Wash. Lt. USNR Capt. USA Air Corps RCAF, Civilian WPB, Washington Capt. USA Medical Corps Canadian Forces Goverment Instructor Naval Ordnance, Civilian Lt. (jg) USNR Cadet USA Air Corps Natl. Research Council Staff Sgt. USA Mountain Inf. Washington (Transportation) Pvt. USA Mountain Inf. ist Lt. USA Air Corps ist Lt. USA Medical Corps ist Lt. USA Air Corps USA War Dept., Washington Glenn Martin Cos. USNR State Dept., Washington Defense Industry Officer Training USA Engineers Staff Sgt. USA Medical Corps

INCOME AND EXPENSE SHOWN ON A PER STUDENT BASIS AmountProportionAmountIncomeYearof Totalper Student Students $ 941'35S-66 46.53% $388.02 Net Income from Investments 724,568.75 35-82 298.67 Miscellaneous 120,471.18 5-95 49.66 Gifts 236,607.69I 1.70 97-53 Totals $2,023,001.28100.00%$833.88Expenses Instructional including Library $1,260,953.60 62-34% ?5!9-77 Health Service 94,624.744.6839,00 Administra don 220,265.1010.89 90-79 General 111,214.18 5-49 45.84 Plant Operation and Maintenance 218,533.0410.8090.08 Restricted Current Funds 56,422.54 2-79 23.26 Annuities and Additions to Principal 60,988.083.0125.14 Totals $2,023,001.28100.00%$833.88