The Washington herald., 1910-06-10
G. w. u. is IN DEBT
Continued from Page one.

G. w. u. IS IN DEBT
Continued from Page One.
endowment fund of 100000 viii be
sought by the trustees in connection with
the raising OF money for the current ex-
penses. The extension of the Morrill, bill
benefits to the District viii be pressed
upon Congress.
Asked II the university would suspend
In case the funds are not Immediately
forthcoming, DR.. McBain. assistant to the
president, said last night: Most emphatf-
oally. no. Those reports are circulRed
by enemies of the university who wish
10 do the institution harm"
Appeal OF the Trustees.
The appeal of the trustees and the
statement Of resources in full follow:
To the Chamber Of Commerce and the
Board OF Trade Of Washington:
The board OF trustees of the George
Washington University respectfully rep
resent:
That they have had a careful ex-
animation made concerning the educa-
tional organization OF the university. with
the result that they are Of opinion that
the present educational organization
ought 20 be retained. It has been grad
ually evolved to meet the needs Of the
District. and substantially meets these
needs.
They are OF opinion that while some
economies can be made in the admin
istrative and educational work of the
university on its present basis, the
amount saved would be more than taken
up If the educational organization on its
present basis were made thoroughly ef-
helent.
They further represent that they are
without funds to maintain the univer
sity on its present basis, The total as
sets Of the university, exclusive OF about
| Sl00. 600 Of securities and real estate. bow
/ held in trust as endowment funds, con-
sist OF the real estate at the corner Of
Fifteenth and II streets occupied by
the main university building. and the
law school building. containing 1920
square feet. and valued at about $500, 600;
the real estate in II street. between
Thirteenth and Fourteenth streets. oc-
cupied by the medical school and hos
pital, containing 4.536 feet. and valued
at about 100000, and the furniture, equip
ment. and fixtures. All this last men
toned real estate IS subject TO n deed Of
trust 10 secure an Indebtedness or
$4,000
VIII owe 1855, 900.
Besides this debt, the university now
| owes about S7l.Oo0 and on August 81,
/ 1910 the end Of the fiscal year, will owe,
as the result Of liabilities already as
sumed. about $4,000 additional. which
will make the floating debt on that date
about Sl05.00O. The total Indebtedness Of
/ the university on August 81. 1916, will,
| therefore. be at least S555.O00
/ ''If the main building, at the corner
/ or Fifteenth and H streets. and the ad-
/ Joining law school were sold, enough
| could probably be realized 10 pay the
| debts, leaving a small balance. The
amount needed TO restore the amounts
| borrowed from the endowment funds for
current expenses, including $4,000 to
make good the endowment given by Con-
| gress IN 1892, is about $500 000 This
! amount could be restored, If the main
/ building and the law school were sold.
only by selling the medical properties.
IF the medical school and hospital
property. on II street, between ThIr-
teenth and Fourteenth were sold. enough
could probably be realized to restore to
a productive basis the endowment and
leave a balance of at least $4,000. This
balance ought probably to be used TO build
a medical school on new site, the land
now occupied by the medical school hav-
/ ing been given by Mr.. William ". Cor
cOran for the purposes Of the medical
| department.
Must Rent Quarters.
should the university pay the debts.
restore to a productive basis its endow-
ments, and fulfill its obligation TO the
medical department. it would have no
buildings except for the medical school,
and would be obliged to carry on its
work, with the exception Of the medical
work. in rented quarters.
The only way by which the university
can retain its present buildings, even
temporarily. is TO fund the $4,000 OF
floating debt. thus leaving the university
subject 10 an interest charge Of at least
$4,000 per year, and TO adopt the policy
Of not Immediately paying the debts or OF
restoring to a productive investment the
portions of the endowment fund which
have been borrowed for current expenses
This. of course, could only be a tenn
porary policy looking toward a perma
nent adjustment by which the debt could
be paid and the endowment fund re
stored to a productive basis. The sale o,
all buildings would involve q loss Of
prestige The occupancy OF the presen
buildings, is, however, not essential. IL
the opinion of the trustees, 70 the con
tinuance of the university on its present
basis. Buildings could probably be rented
for $40 600 per year, which would serve th'
purposes; but the expense of moving anC
remodeling would be considerable.
Assuming an arrangement Is made
whereby the university would be housed
at an average interest or rental charg,
Of SIS, 900 a year, the trustees are Of opinion
that IL would be unsafe 70 attempt tn,
operations OF the university on its pres
ent basis without a sum of $4,000 for The
coming year assured TO il over and abov,
its receipts from tuition fees. The sun
of $4,000 for the coming year would
however, permit the carrying on OF tn,
work only with great difficulty anC
crowding, and at the cost of much self
sacrifice on the part OF the members o
the faculty. whose salaries are now be
low the amounts on which It Is possible
to live suitably. To carry on the worl
on the present basis IN a proper manne
would require at least $4,000 for the com
ing year.
subscription t. Started.
There are already subscriptions to
maintenance fund recently obtaine,
amounting TO about $4,000 annually 70
the coming two years Thus, s97, 200 1
required for the coming year on the mini
mum basis OF $4,000 proposed and SCI, 90
on the maximum basis Of $4,000.
4 H..