The Man Behind the Figures

THE College's 1959-60 financial report, distributed last month in printed form, is the eleventh such report "respectfully submitted by John F. Meek, Treasurer." And like the ten reports before it, it shows Dartmouth College in the black and in sound financial condition.

John Foster Meek '33, Vice President and Treasurer of the College, has a personal as well as a lawyer's reticence in discussing Dartmouth's impressive financial growth since he took office in 1949. Yet certain figures in his latest report speak for themselves and do not seem to be explained entirely by the inflation and nation-wide trend he points to.

Over the past decade, coinciding with Mr. Meck's financial stewardship, the total assets of Dartmouth College have almost tripled, from 35 millions in 1949-50 to some 91 millions this past year — to more than 100 millions if market value rather than book value of the securities in the College's portfolio is counted.

During the same period the endowment per student (as good an indicator as any of the financial health of Private colleges) has almost tripled, from $8,000 to $23,000 per student.

However, that old bugaboo labeled "expenses" has managed to keep well abreast of income. This past year Dartmouth's total expense figure soared over the $12-million mark (up 14% over the previous year), and during the ten-year period has increased by 123%.

As he looks ahead to the financial future of the College, Treasurer Meek predicts that tuition payments will continue to produce between 45 and 50 % of Dartmouth's annual income, and endowment income between 20 and 25%. The remaining funds (25 to 35%) must come from annual gifts to the Alumni Fund, increased corporate giving and government-sponsored research grants, and other gifts for current use.

Largest single source of income is tuition and Dartmouth's, which is currently $1400, is up about 107% from ten years ago. While Mr. Meek expects Dartmouth's tuition, as well as that of comparable private colleges, to continue to increase in the years ahead, he pointed to the problems created by the widening gap between tuition rates of private colleges and those of publicly supported institutions. He commented, "The outcome of the recent recommendation by Governor Rockefeller's special committee on higher education that tuition-free state and municipal institutions in New York should charge tuition, with rebates to the needy, may be indicative of what the future trend will be."

Mr. Meek has for some years been a leader in seeking solutions to the financing of higher education. In 1958, serving as chairman of the Committee on Taxation of the American Council on Education, he spoke before the House Ways and Means Committee in Washington in behalf of the tax-credit bill. This bill would have provided an income tax credit of 30% of the amount paid for tuition and related fees to an institution of higher education. The tax-credit plan has not been enacted, but still is regarded as one sound answer to help relieve costs to parents.

"The important thing is not this particular plan," says Mr. Meek. "What is important is that there must be some relief for parents, particularly in the medium and lower income brackets, who face the steadily rising costs of higher education, and that the need for such relief, by one means or another, is being universally recognized."

As Dartmouth's tuition has gone up, care has been taken to make certain that the College's financial aid program keeps pace, so that deserving students are not turned away because of price. This past year a new high of 35% of all Dartmouth students received some form of aid - through a combination of scholarships, loans, jobs, corporate awards, and NROTC grants.

Over the past five years there has been a significant move toward greater use of student loan funds, according to Mr. Meek. Such loans this past year totaled $229,000 as compared with $95,000 in 1954-55. Total student loans outstanding last year amounted to $869,000 against only $417,000 five years ago, and the total is expected to go beyond a million dollars this year. Loan funds available include those provided by the Dartmouth Educational Association over many years, and more recently by the Alumni Fund, the Alfred P. Sloan Foundation, and the federal government's National Defense Education Program.

Administering Dartmouth's portfolio of stocks and bonds is another responsibility of the College Treasurer. Policy decisions are made by the Trustees Committee on Investments with the advice of professional counsel, but Mr. Meek must strive to keep the College's portfolio working at all times to earn as much income as possible, and in this general endeavor he is joined by his two close colleagues, Max Norton '19, Associate Treasurer, and Paul Young '43, Assistant Treasurer, who have special responsibility for real estate and mortgage investments.

In meeting the complex financial problems facing Dartmouth - and higher education in general - John Meek is able to combine the tactics and negotiating skill of a lawyer with the preciseness and judgment of a business manager, for he has training in both areas. After graduation from Dartmouth in 1933, he received his law degree from Yale in 1936, returned there a year later as assistant professor and later became assistant dean of the Yale Law School. During World War II he served in the Bureau of Naval Personnel in Washington, chiefly negotiating and administering contracts for the Navy's college training program.

"Those Navy days helped me immensely," he points out. "They brought me into contact with many of the top financial and business officers at colleges all across the country. These are men I can still call on today if I have a problem or if I simply want to find out how some other institution is handling its finances. Also, it brought me to Dartmouth's attention and made it possible for me to be here today."

Colleagues in Hanover respect John Meek for his ability, admire him particularly for his devotion to his duties and to Dartmouth. Few men work the hours he does, for the lights in the Treasurer's office burn latest of all (Dean Seymour is a strong competitor) and even on Saturdays and Sundays you can often find him in Parkhurst. He also travels extensively on college business and during the Capital Campaign he proved an indefatigable speaker for the 200th Anniversary Program.

Among outside activities on behalf of higher education, he was president last year of the Eastern Association of College Business Officers. Currently he is serving as treasurer of the New England Colleges Fund (a regional organization which seeks financial support for its member colleges from business and industry), and he is a trustee of Bradford Junior College.

Somehow he still finds time for his athletic interests - skiing and tennis. Weekend skiers are apt to find John, his wife Jean and their three children - Sally (17), Johnny (14) and Julie (10) — schussing down one of the Dartmouth Skiway trails, or on the slopes of Stowe or Cannon Mountain.

The most difficult single problem facing John Meek over ten years has been that of being vigilant to maintain funds whose income is unrestricted. "The majority of our expenses," he points out, "are what you might term 'unrestricted,' and they must be met with that kind of income. Constantly we receive gifts, grants and funds for restricted uses or someone will push a special new project involving additional expense without new income to offset it. In either case, unless we are very careful there is a danger that income needed so desperately for general expenses will be siphoned off for uses outside the main stream of the College's educational program, and our ability to keep moving ahead on salaries and other basic needs will be weakened."

The battle of income vs. expense goes on. Right now Mr. Meek is working up for the Trustees a projection of Dartmouth's costs and income for the next decade. Upon this study will be based much of Dartmouth's financial strategy for the years immediately ahead. The outcome of all this will continue to be reflected in the College's annual financial report "respectfully submitted by John F. Meek, Treasurer."

Treasurer John F. Meck '33