Assets Top 35 Million

Financial Report to Trustees for 1947-48 Puts Cost of Operating College at Record $3,118,731

THE GRAND TOTAL of Dartmouth. College assets now stands at more than $35,000,000, it was reported to the Board of Trustees on October 29 when Treasurer Halsey C. Edgerton '06 made his annual financial report at the fall meeting of the Board. The balance sheet at the close of the fiscal year 1947-48 showed a total of $35,008,321.75, the highest figure in the history of the College and a gain of 3.5% for the year.

Mr. Edgerton's report also gave the cost of operating Dartmouth College during -1947-48 as $3,118,731.71, a figure 7% greater than the record-breaking total of the preceding year. Once again the Alumni Fund permitted the College to balance its books for the year, providing $352,361.94 to close the gap which would otherwise have existed between income and expense.

The greatest increase in operating expense occurred in scholarships, as civilian students needing aid replaced some of the large percentage of veterans receiving G.I. educational benefits. This increase, which is expected to rise even further in the next few years, amounted to $64,871.90. Direct instructional expense increased $57,085.04 over the year before, and plant operation and maintenance rose by $57,190.36, the largest factor in this latter increase being the greater cost of fuel for heating.

Income from student fees was lower than in the preceding -year because of the smaller enrollment in the 1947 summer session as compared with the summer session in 1946. The drop was from $1,680,252.74 to 11,659,051.09. In two other major categories, however, income was higher. The net income from investments during the past fiscal year was $826,598.62 as compared with $738,101.77 the year before. Gifts for current use are listed in the 194748 report at $460,007.01 as compared with $287,563.45 for 1946-47. The big factor in the latter increase is the larger portion of the Alumni Fund used to meet current operating expense.

A comparative summary of income and expense for the past two years accompanies this article. The summary is intended primarily to show the operations of Dartmouth College as a teaching institution; it does not include figures on the Dartmouth Dining Association, the Hanover Country Club, the Dartmouth Outing Club or the Council on Student Organizations except as the net results of such operations are involved.

INVESTMENT FUNDS EXCEED 25 MILLION

Dartmouth's total assets of $35,008,-321.75 include investments of $25,761,-701.26, plant assets of $8,189,798.14, and current assets of cash, inventories, and accounts receivable of $1,056,822.35. The plant figure does not include dormitories and certain service properties carried on the college books as investments. If these properties were added, the total value of the Dartmouth plant would be $11,193,. 498.05.

The net increase in endowment funds during was $1,219,090.23, of which %897,700.17 came from gifts and bequests. The larger additions during the year included partial payment of the bequest of Lillie W. Otis establishing the Waldemar Otis Scholarships, $172,154.65; the Emma P. Greenough bequest establishing the Walter Henry Pomeroy Scholarships, $166,-084.91 the Sarah E. Odlin bequest for the Medical School, $53,959.72; and a settlement of the Verson W. Gooch bequest for scholarships, $41,793.04. The Class of 1923 Memorial Fund gift of $107,292.45 was also a major addition to Dartmouth's endowment funds.

HOPKINS FUND INCREASES $260,000

At the close of the 1947-48 fiscal year the Hopkins War Memorial Program Fund stood at $1,487,514.52, an increase of a little over $260,000 for the year. In order that funds for the Hopkins Center Project might be in liquid form when required for construction purposes, they have been invested separately in short term securities.

Development of the Dartmouth plant during 1947-48 was confined largely to the completion of the additions to the Cummings Memorial building, housing the Thayer School of Engineering. The cost of two new wings and equipment reached a grand total of $340,547.07. Construction of a new kitchen addition for the Hanover Inn was begun during the past fiscal year.

The average net return on all Dartmouth investments during 1947-48 was 3-96% as compared with 4.07% the year before. The decrease, Mr. Edgerton reported, was primarily due to the reduced return on dormitories. The average return for the year on security investments was 4-33% as compared with 4.27% for the preceding year. These average rates of return are all computed on the book value of college investments. As of June 30, the market value of college security investments was 107% of book value, or an excess of $1,448,824.

The distribution of College security investments is: industrial, 24.3%; public utility, 24.3%; governments, 19.9%; railroad, 16.2%; mining and oil, 8.5%; finan- cial, 6.8%. "In no year does our list of securities depict accurately what might be termed the investment policy of the institution," Mr. Edgerton stated in his report. Many gifts to the College are in the form of securities some of which for one reason or another are held in their original invested state.

Printed copies of the financial report for 1947-48, containing detailed schedules of assets and of operating income and expense for the year, may be obtained by writing to the Office of the Treasurer, Parkhurst Hall, Hanover, N. H.

Income and Expense, 1947-48 INCOME Year 1946-1947 Year 1947-1948 §885,879.15 Income from Investments §930,124.29 147,777.38 Less Annuities and Additions to Principal 103,525.67 $738,101.77 §826,598.62 §1,680,252.74 Student Fees §1,659,051.09 157,147.25 Miscellaneous Income 135,134.00 47,010.98 Restricted Current Funds 37.940.99 287,563.45 Gifts for Current Use 460,007.01 §2,910,076.19 §3,118,731.71 EXPENSE §1,659,130.33 Instructional §1,716,215.37 219,386.31 Libraries 212,788.31 304,562.83 Administration 327,127.88 121,626.31 Health Service 141,294.70 32,088.40 Scholarships 96,960.30 143,036.74 General 155,165.05 331,407.91 Plant Operation and Maintenance 388,598.27 98,837.36 Restricted Current Funds 80,581.83 §2,910,076.19 §3,118,731.71