College's Annual Outlay Now Totals $12 Million

IF security holdings are figured at market value, the total assets of Dartmouth College now exceed 100 million dollars. At book value, the total is 91 millions, a gain of nearly eleven million dollars during the past fiscal year.

These figures are highlights of the 1959-60 financial report of the College, presented to the Trustees by Treasurer John F. Meek '33 and Comptroller Robert D. Funkhouser '27 and released in printed form last month.

Operating expenses for the year climbed to $12,146,779, which was $1,163,278 higher than in 1958-59. But income also rose by $1,281,797, to $11,493,298 before transfers from the Alumni Fund and Capital Gifts Campaign. The difference between income and expense was covered through the use of $434,404 from the 1960 Alumni Fund and $237,596 from Capital Gifts, leaving a credit balance of $18,519 for the year. The operating deficit thus covered in 1959-60 was $653,481, compared with $772,000 the year before.

The expense total of over twelve million dollars breaks down into $8,709,654 for educational and general categories and $3,437,125 for auxiliary activities such as the dining association and the DCAC. The figure for educational and general expense was $1,067,512 higher than for the year before. Instructional expense rose by $208,931 and departmental research by $492,571. In other categories, increases over the previous year were $33,822 for libraries, $117,306 for administration, $65,711 for scholarships, $42,778 for health service, and $160,910 for miscellaneous expense, including transfer of the development office increase of $55,532 from the Capital Gifts to the regular budget. Plant operation and maintenance posted a 5% decrease of $54,518.

The net loss on auxiliary activities in 1959-60 amounted to $257,696 but was about $8,000 less than for the year before. The DCAC deficit of $191,857 was down by $8,323.

The substantial increase in income for 1959-60 resulted mainly from an increase in tuition, from $1170 to $1400, and a greater amount in gifts for current use. Student fees produced $4,303,158 or $798,406 more than in the previous year. Gifts for current use, excluding the Alumni Fund, amounted to $1,485,443 or $628,000 more.

Gross income from endowment fund investments was $2,966,814, which was $311,774 or 12% above 1958-59. The amount utilized for the year's operating expenses was $1,823,594, down $29,000 from the previous year. This drop was unusual and was accounted for in the main by a transfer of $200,000 to the income stabilization reserve as contrasted to the withdrawal of $72,000 from that reserve in 1958-59. Some $504,000 was added to the principal of endowment funds in accordance with the terms of these funds, $110,000 was transferred to the Capital Gifts Campaign as income from campaign gifts temporarily functioning as endowment, and $124,000 of income from class memorial funds and other funds supporting the Alumni Fund was transferred to the 1960 Alumni Fund.

The College's book-value assets of $91,026,369 as of June 30 included $71,618,123 of endowment and similar funds. In this latter figure, however, was $11,756,285 of funds reserved for plant construction and temporarily grouped with the endowment funds for short-term investment. Exclusive of these plant funds, total endowment was $59,861,838 as compared with $56,963,527 a year earlier. The increase of $2,898,311 resulted mainly from gifts and bequests, plus a net gain of $1,808,928 realized on endowment investments.

The other major asset figure was $14,334,547 for the College's plant. The book value of the physical plant, including dormitories and service facilities carried as investments of endowment funds, was $18,115,128, representing a gain of $2,817,639 for the year.

The total of gifts and bequests received during 1959-60, including those in the Capital Gifts Campaign and the 1960 Alumni Fund, was $9,991,632, the second largest amount received by the College in any one year. The total credited to the Capital Gifts Campaign during the year was $4,299,847. When added to amounts previously received, the total campaign credits as of June 30 amounted to $13,398,674. Gifts, bequests and pledges to the Capital Gifts Campaign stood at $17,681,756 on June 30, including income from the investment of gifts received. Excluding the plant funds invested separately in short-term obligations, the net return on the College's investments, valuing securities at market and other investments at book, was 3.89% for the year. On securities alone, the rate of return on average market values was 3.95% as against 3.52% for the previous year. On the basis of book value, the return was 5.0% as compared with 4.85% for 1958-59.

The College's securities portfolio at market value was distributed 53.5% in common stocks, 45.3% in bonds, and 1.2% in preferred and guaranteed stocks. The net rate of return was 3.56% on stocks, 4.44% on bonds, and 5.24% on preferred stocks. At book value, the returns were 6.07% on stocks, 4.22% on bonds, and 5.11% on preferred stocks.

Over-all, the dollar totals presented in the 1959-60 financial report are a dizzying enlargement of the totals of only five years ago, when assets were 46 million dollars and the annual operating cost was $6,900,000, including auxiliary activities. A striking example of growth is the dollar volume of sponsored research at Dartmouth. In 1954-55 the total was $251,174.. The comparable total for 1959-60 was; $1,244,320, of which $700,000 was for the Medical School.