Business School Reveals Deficit Due to Advanced Aid Increase

The Business School, after almost breaking even in 1952-53, ran $37,500 into the red last year, according to the report issued by Paul C. Cabot '21, Treasurer of the University.

The primary reason for the increasing deficit is the expanding program of advances in aid to students, Russell M. Hassler, professor of Accounting at the Business School, said yesterday. Advances totaled $65,530 more last year than they did the year before.

Hassler listed three other causes for the Business School's deficit. In the first place, the school has expanded its doctoral program from the 12 students enrolled last year to 44 in residence and 32 in absentia this year.

In addition, it has added to the government's support of the Turkish scholars brought here under the Eisenhower Foundation two-year grant. The Turks, upon completing their studies here, will then return to Turkey to establish a business school.

More Expenses

Finally, the school has found increased expenses in the 16 month "midyear" program which it adopted last year. Under this plan, 72 men between the ages of 25 and 35 have left their businesses to enter the Business School at mid-years, work through the summer, and graduate the following year.

Advances in aid are not loans, but carry a moral obligation to repay, Hessler said. He expects them repaid in ten or 12 years.

Aid Promised to Anyone

Since the school promises to help out any student who needs financial aid, it has already budgeted a $24,300 increase in advances for 1954-55. The total advances in aid will amount to $307,600 for the present academic year.

Nevertheless, the B-School expects only a $13,000 deficit for this year, as it is seeking gifts from individuals and corporations. "We live and hope," Hassler said.

Two years ago the B-School lost only $960. It showed a $58,825 profit balance for 1951-52.