Tuition Increase Likely Despite Record Income

Despite a record return on its endowment, the University's income met less than one-quarter of its expenses last year, thereby making a tuition hike appear almost certain.

Although endowment income distributed among the faculties rose from $15.9 million to $16.9 million, expenses increased nearly $7 million last year, from $65.8 million to $72.8 million.

"Endowment certainly is not carrying as proportionate a load as in previous years," L. Gard Wiggins, Administrative vice-President, commented yesterday. As costs rise, tuition and other fees must also be hiked to fill the gap which interest on stocks and bonds cannot.

Apparent Profit

In spite of an apparent return of $577,000 last year, the Faculty of Arts and Sciences actually made no profit and will probably make none this year, since salaries have risen $500,000, according to the annual Financial Report. Of the apparent "profit" $200,000 was transferred to a student loan fund and $400,000 to the principal of the endowment fund.

During 1961-62, however, salary expenses and other costs will go up again, Dean Bundy predicted, so that a tuition increase will become necessary. Although no figures have been confirmed, the hike may be in the range of $250.

The University still has the largest endowment of any educational institution in the nation. In the middle of August, the market value of securities held totaled nearly $621 million, although the recent stock market decline has some-what lessened this figure.

Franklin Sanders, Assistant to the Treasurer, noted that the University "intends to keep considerable liquidity in its investment portfolio." As a result, $270 million of the endowment at market value is invested in bonds and notes, which can be converted readily to cash.

Common stocks, with a market value of $471 million, and preferred stocks, with a market value of $9.6 million, complete the assets.