A Report on Finances

THE 1954 Alumni fund, reported fully in this issue, played the familiar role of hero in the College's financial operations for the fiscal year that ended June 30. In his annual report to the Trustees, John F. Meek '33, Treasurer and Vice President of the College, announced that the application of $550,000 of the record-breaking $700,365 received as contributions to the 1954 Alumni Fund, together with increases in endowment and miscellaneous income, enabled the College to stay "in the black" for 1953-54, despite an increase of more than a quarter of a million dollars in educational and general expense. The Fund also provided additional resources for scholarships.

Approximately half of the year's additional expenditure represented increased instructional expense, while the balance was accounted for largely by increases in scholarship awards, plant operation and maintenance, and the Development Council and Tucker Foundation programs. The plant operation and maintenance increase resulted from expenditures of over $60,000 from the deferred maintenance and

improvement reserve created from 1952-53 income. These expenditures, most of which were non-recurring in nature, included repairs and improvements in Baker Library, Silsby, Wilder and College Halls, and the Gymnasium.

A further plant improvements reserve of $85,000, created from 1953-54 income, is being expended this year to finance essential improvements in instructional buildings, faculty apartments, College Hall and the athletic fields, which cannot be met as current operating expenses.

The increase in scholarship expense reflected the inauguration of the Daniel Webster National Scholarship program and an increase from 16 to 25% in the percentage of freshmen receiving scholarship aid. This additional expense was partially met by the use of $16,343 of 'he Alumni Fund scholarship reserve.

The net expense of operating the auxiliary activities in 1953-54 was more than $40,000 under that of the previous year. This favorable outcome largely resulted from a decrease in the deficit incurred in the operation of the Dartmouth College Athletic Council and from favorable showings for the Hanover Inn and other miscellaneous auxiliary operations. For the third successive year, during which time it has been under the direction of an alumni Board of Overseers, the Hanover Inn was operated without loss.

Receipts from student fees, based on an instructional charge of $800 per student, continued to meet only about one-half of the total cost of providing the Dartmouth educational program, with the balance coming principally from endowment income and current gifts, including the Alumni Fund. Total gifts including the Alumni Fund amounted to $1,761,645, of which $720,215 represented additions to the College's endowment. The largest of these was a bequest of $152,590 received under the will of Charles F. Mathewson '82, a Trustee of the College from 1894 to 1915.

Gross income from investments was up 6% over last year and resulted in a net return on the total average investment at book value of 5.00% compared to 4-89% for the previous year. On the basis of average market values, the net rate of return on the security investments alone was 4.30% compared to 4.24% for 1953-53. At book and market values, respectively, ap- proximately 55% and 65% of the security portfolio was invested in common stocks.

The distribution of security investments at book value, excluding the Hopkins War Memorial Program Fund, which amounted to $1,621,118 on June 30, was SO-3%in industrials, 27-5% in public utilities, 11.3% in governments, 12.9% in mining and oil, 9.4% in financials, and 8.6% in railroads. This distribution is the result partly of gifts made in invested form and retained in that form by specific request.

The assets of Dartmouth College on June 30, 1954, totaled $44,037,905, an increase of a little over $2,000,000 for the year. Included in this figure were endowment funds and funds functioning as endowment totaling $34,071,054. The plant account on June 30 stood at $8,659,525, although this figure does not include the value of dormitories and other properties carried as investments of endowment funds. If these were included, the plant total would be $11,749,273.

The acquisition of the Clark School properties represented a significant addition to the College's dormitory and instructional ional facilities during 1953-54. At the present time an advisory committee on plant development, under the chairmanship of Professor John P. Amsden, is making a study of the entire College plant, with a view to making recommendations on future plant needs of the College over the next fifty years.

The accompanying comparative tabulation presents a concise summary of income and expense for the past two years. Printed copies of the full 70-page financial report for 1953-54, containing a complete gift list and detailed schedules of the balance sheet and income and expense statement, are available upon request from the Office of the Treasurer, Parkhurst Hall, Hanover, New Hampshire.

Income and Expense, 1953-54

1952-53 INCOME 1953-54 $2,212,781.51 Student Fees $2,218,295.90 1,085,312.06 Net Endowment and Similar Funds Income 1,193,718.09 213,466.69 Net Gifts for Current Use 201,680.46 55,390.30 Land and Buildings 56,444.16 29,733.08 Health Service ' 25,787.14 193,151.38 Miscellaneous 266,327.59 $3,789,835.02 $3,962,253.34 15,000.00 Add: Transfer from Maintenance Reserve 64,476.00 $3,804,835.02 $4,026,729.34 127,350.00 Deduct: Transfer to Reserves 85,000.00 $3,677,485.02 NET EDUCATIONAL AND GENERAL $3,941,729.34 1,708,533.23 Auxiliary Activities 2,038,100.32 $5,386,018.25 TOTAL INCOME Before Alumni Fund $5,979,829.66 EXPENSE $1,869,131.17 Instructional $1,999,311.59 286,506.82 Libraries 290,602.36 462,745.81 Administration 464,876.40 532,361.75 Plant Operation and Maintenance 579,755.58 365,335.17 Scholarships 411,317.00 174,178.73 Health Service 170,653.35 410,446.69 Miscellaneous 456,418.36 $4,100,706.14 TOTAL EDUCATIONAL AND GENERAL $4,372,934.64 1,835,723.93 Auxiliary Activities 2,121,945.60 $5,936,430.07 TOTAL EXPENSE $6,494,880.24 $ 550,411.82 Deficit Before Alumni Fund $ 515,050.58 551,542.99 Alumni Fund Applied to Operating Expense 550,000.00 $ 1,131.17 BALANCE to Unrestricted Current Fund $ 34,949.42