Report of the President 1973-1974
RICE UNIVERSITY
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2 Undergraduates
4 Humanities and Social Sciences
5 Science and Engineering
7 School of Arciiitecture
7 Jesse H. Jones Graduate Scliool of
Administration
7 The Shepherd School of Music
8 Advanced Studies and Research
9 Library and ICSA
9 Administrative Developments
9 Self-Study
10 Financial Review
The Cover: The Swiss-made sundial near
the original entrance to Cohen House is,
like the building itself, a gift from Mr. and
Mrs. George S. Cohen.
The Report of the President is published
annually by the Office of Information
Services, Rice University, P. O. Box 1892,
Houston, Texas 77001.
The past year market! a most important
time for higher education and for Rice.
The major expansions of the sixties are
past and the troubled campus has again
become peaceful. In the years ahead,
college age population will drop and fund-
ing for private higher education will be
increasingly difficult.
This is a time for critical self-study, for
a reassessment of our goals, and for effec-
tive management of our resources.
During the year, an extensive Self-Study
was completed and a Commission on Goals
and Objectives formed for the coming year.
The University has been able to again hold
expenses within income. Although chang-
ing priorities produce strains in the system,
the University is moving confidently ahead
for the coming decade.
With continued support of its friends
and alumni. Rice will continue to be a
University of the very first rank.
Norman Hackerman
Report of the President 1973-1974
Rice University
Undergraduates
The 1973-1974 academic year saw continuing em-
phasis on career orientation among Rice undergraduates.
Clearly, a majority of students want tlieir undergraduate
courses and record to carry them forward into medical
school, law school, graduate school of business, or
graduate studies in other areas. They expect the Univer-
sity to provide the necessary training, guidance, and
assistance.
At the same time, the shift from the more explora-
tory point of view of a few years ago raises its own
projjlems. On a traditionally gi-ade-conscious campus
all the academic pressures are up, particularly for Black,
Chic<uio, and Asian students wln) may also be coping
with problems of person.il identity and social or cuUuial
adjustment. As the choice of a major becomes for many
sophomores an almost irreversible life-career decision,
the sophomore year, in which students normally choose
their majors, may now be more subject to stress than
the freshman year. Many undergraduates still do not
know what they want to do, but they are more uneasy
about postponing that decision. In this debate over the
particular direction tiieir lives will take in five or ten
years, they may waste their present opportunities as
undergraduates.
Premed and prelaw students need to be addressed
not to hang their entire undergraduate program on
acceptance into medical school or law school, and all
students should be encouraged to keep their under-
graduate years as open and exploratory as possible.
Ten years hence they may find themselves in jobs which
they had never considered and in careers which do not
yet exist. They need general skills in critical reading
and writing and some experience in a broad spectrum
of problem-solving which they can carry into any
occupation or transfer from one job to another. By
providing both specialized training and as broad an
educational experience as possible, the University must
continue to encourage the abilities of the highly
qualified students who accept our offers of admission.
In general. Rice students are looking for careers that
will be personally fulfilling, socially useful, and mater-
ially rewarding in about equal proportions. They want
to find their place within the social structure and to
contribute to the efforts of society. As a holdover from
the late 1960s, importance continues to be attached
to personal identity, social relationships, and social
awareness. These areas ranked as primary concerns
two years ago when Rice students responded to ques-
tionnaires from the University's Self-Study Committee.
If the same questions were circulated in the fall of 1974,
some of the responses might reflect a different order
of priorities, but social relationships continue to con-
cern undergraduates. Alongside this redirection of
purpose, resentment of society and authority in general
is no longer an important issue.
The Colleges
The 1973 conversion of two of the men's colleges,
Baker and Hanszen, to coed colleges appears very
successful. Though men and women are assigned rooms
in different sections of the college buildings, they share
the Commons rooms and all the responsibilities of the
college. Present members of both Baker and Hanszen
feel considerable responsibility for the success 'of the
venture, but otherwise thev regard the coed colleges
as no different from other colleges in their interests
and goals. Both men and women say the conversation
at dinner is more entertaining and lively, and that interest
in college activities and committees has increased. The
women who came into the coed colleges were eager to
take part immediately and were given positions in the
college governments, including the presidency of Hans-
zen.
Indirectly, the coed colleges have stimulated the
other colleges to take a fresh look at themselves and
what they are trying to do.
The principal problem caused by the conversion of
the two men's colleges to coed colleges is that residential
spaces for men correspondingly decreased. Last year
there was a scarcity of rooms for men, and in the coming
year, with a heavy demand from both returning and
incoming students to live in their colleges, the men's
colleges will again be crowded.
This problem was not unanticipated. When the coed
colleges were proposed, one argument in their support
was the desirability, for many reasons, of increasing
the number of women living on campus. Without wish-
ing to change the essential character of the University,
Rice has made an outspoken effort over the past two
years to attract as many qualified women applicants as
possible and to erase the general image of the University
as a male school. As a result, some 32 percent of the
1974-1975 freshmen and transfer students were women.
A few years ago women numbered less than 30 percent
of the undergraduates. It is hoped that the expimsion
of music and fine arts as well as the growing acceptance
of women into science and engineering will increase
this proportion, but the University must continue to
look for the best qualified applicants whether they are
men or women. When the coed college plan is reviewed
two years hence, a more flexible system may well have
to be devised whereby blocks of rooms can be assigned
more easily to men or women according to demand.
Whatever problem it poses, the demand to live on
campus speaks well for the success of the college system.
The colleges have also proved to be a major attraction
to prospective students. Of 443 incoming 1974-1975
freshmen men, 437 want to live in their colleges. The
University may well need a long-range policy for the
physical renovation of the older buildings and the
regular maintenance and improvement of all the colleges.
Students On University Standing Committees
For several years now students have served as voting
members alongside faculty and staff on most of the
twenty-eight University Standing Committees, including
the University Council. Last spring, more than a hundred
students applied to be considered for recommendation
to serve on one or another of these. On committees,
students have a chance to see how issues are decided,
on what grounds exceptions are allowed, and where
strength and bias lie. Committee service helps them to
realize they must look to themselves. Though they may
apply to serve on a committee in order to represent a
student point of view, they remain to exercise and test
their own judgment.
Serving on University committees is only one of a
variety of extracurricular activities to which Rice stu-
dents are willing to devote a great deal of time and
attention, and in which they make a substantial con-
tribution to the sort of place Rice is.
Admissions
The University maintained a vigorous recruiting pro-
gram during the year. An experienced admissions staff,
new publications, and the assistance of the Association
of Rice Alumni all point to continued success in attract-
ing outstanding applicants to Rice University.
As a result of these efforts, the University heard
from 2,400 freshmen applicants, extended 1,050 offers
of admission and ultimately enrolled 630 freshmen for
the year under review. A total of 275 students applied
for transfer to Rice. Of these 120 were extended offers
oi admission and 65 actually enrt)lled.
Financial Aid
During the year some 1,250 Rice students received a
total of S2.25 million in assistance from all sources. The
University also increased its participation in the National
Merit Scholarship program by sponsoring fifty of these
scholarships. The 1973-1974 freshman class had ninety
National Merit Scholars. In another area of financial aid
the University has expanded its student employment
progi"am.
The projection room at the Media Center is the heart of the continuing effort to bring quality film offerings to the
Rice Community and the general public. Below is a scene from Zorba one of the acclaimed 1973-1974 productions
of the Rice Players.
Humanities and Social Sciences
The 1974- 1975 academic year will usher in the second
five-year agreement with the Menil Foundation to insure
some support for the Media Center and substantial con-
tinuing support for the Institute for the Arts. The
Institute will continue its art exhibitions and, in addition,
will sponsor visits by distinguished artists and provide
special programs for children and docents for community
projects.
The Media Center, which includes film and photog-
raphy, will henceforth be almost entirely supported by
Rice. The .Media Center has been steadily expanding its
impact on the Rice campus, making available to faculty
of different departments its equipment and technical
expertise in order to enrich and complement individual
course ollerings in anthropology, sociology, biology,
French, English, and some areas of engineering. In
addition, the .Media Center continues to present film
offerings which arc (jpen to tlie public as well as to the
Rice community. In keeping with its policy of cooperat-
ing with the Houston community, the Center also
continues to offer its summer program designed to
instruct high school teachers in the use of film.
The foreign language departments stabilized and in
some instances even improved their enrollment during
the year. There are trends indicating increased interest
in foreign language studies. These trends should ulti-
mately brighten the career prospects for Rice's foreign
language graduates. Research work of the University's
foreign language faculty includes the only significant
effort in the area of German exile literature (1933-1945)
anywhere in the South and Southwest and one of only
six such undertakings in the entire country.
Rue archac'ologx studeitts excavating at an Indian burial
site near Houston.
A rekindling of interest is also discernible in other
areas of the humanities and should here, too, result in
improved prospects for Rice graduates.
In the social sciences the career picture is brighter.
Fewer Pli.D.'s were produced, certainly at Rice where
many departments have only recently started Ph.D.
programs. But even nationwide there are more openings
in the social sciences than in the humanities. In some
fields, like economics, because of opportunities in the
business world, openings seem to be plentiful.
The Program of Development Studies, drawing
principally from the departments of Economics and
Political Science, has produced much noteworthy schol-
arship. It has likewise supported grants for both faculty
members and graduate students interested in research
dealing with underdeveloped or emerging countries. The
funds for these projects come mostly from federal
sources at the present time. For the past three years,
the Menil Foundation also generously contributed
unrestricted funds.
Rice, in collaboration with Texas Southern Univer-
sity, the University -of Houston, and the Houston Public
Library, is engaged in a two-year project sponsored by
the Southwest Center for Urban Research to preserve
the oral and documentary source materials on the history
of Houston through the creation of the Houston Metro-
politan Archives and Research Center, housed in the
Fondren Library. This project is in part subsidized by a
grant from the National Endowment for the Humanities
with funds matched by local sources.
In another area. Rice faculty members helped
establish a new cooperative program with two Houston
law schools to broaden the education of future lawyers.
The new program permits graduate work in legal and
constitutional history at Rice to be added to professional
work in law at the Bates College of Law of the Univer-
sity of Houston or at the Law School of Texas Southern
Lhiiversity.
Rice's scholarly publications in the humanities con-
tinued their successes of the past. The Journal of
Southern History sampled new techniques of research,
examined new interpretations of old themes, and pre-
sented young scholars to the guild. The Austrian History
Yearbook presented its rare mix of articles from both
sides of the "iron curtain." Studies in English Literature
expanded its already established reliability as one of the
most important magazines in the field of English studies.
Rice University Studies continued its offerings from
Rice faculty members and their collaborators and
remains an essential outlet for important research.
Science and Engineering
The departments in the Science and Engineering
Di\ision undertook a detailed evaluation of their cur-
ricula as a part of the University's Self-Study and certain
changes were incorporated. Even before the study was
completed its effects were being felt as questions were
raised, problems recognized, and corrective action taken
wherever possible.
Undergraduates in ph\sical chemislrv laboratorv.
Monituriiig cardiovascular output is an ntiporlant phase
in the research of Rice biomedical engineers.
The continuing and growing interest in premedical
studies placed a iieavy load on tiie laboratory facilities
in biology, biochemistry, and chemistry. Although
competition for admission to medical schools has
become severe. Rice's premedical students continue to
have a good record of success.
The completion of the mobile nuclear physics labora-
tory in the Department of Physics enabled the University
to develop a program in medium energy nuclear physics
and prepared the Bonner Nuclear Laboratories to enter
into a program of high energy nuclear physics in collabo-
ration with se\'eral of the accelerator laboratories
throughout the country.
In the Department of Environmental Science and
Engineering an unusual research project has been funded
by the Environmental Protection Agency. Its objectives
are to evaluate the storm water management system for
a major new residential development, the Woodlands,
which is now under construction north of Houston.
The Department of Biochemistry has continued to
attract major external funding for its research programs
from a \ariety of federal agencies and private founda-
tions. Since the initiation of the department in 1972 its
faculty members have been awarded or are committed
to future research totaling more than $2.2 million.
During the year the Space Physics and Astronomy
Department arranged for Swedish Nobel Laureate Hannes
Alfve'n and British astrophysicist Sir Fred Hoyle to spend
several weeks in the department and to participate in a
number of courses. Other Nobel Laureates who were
guests during the year were Konrad Bloch in biochemis-
try and Hans Bethe in physics.
In the engineering departments, in response to sug-
gestions of the Engineering Advisory Council and the
Engineers' Council for Professional Development, more
emphasis is now being placed on design courses.
Engineering courses were introduced at the freshman
level and proved to be highly successful in giving students
an early exposure to the methods and techniques of the
profession. Following the discussions of the Engineering
Advisory Council, a four-year program leading to the
B.S. in engineering has been approved by the faculty.
Interest in computer science has also shown a dramatic
increase. During the past year enrollment in sophomore-
level computer courses doubled to almost 600 students.
A major innovation in the Civil Engineering Depart-
ment this year has been the inauguration of a preceptor-
ship program patterned after the highly successful
program in the School of Architecture. A new major in
transportation at the master's level has been introduced
as a joint program in the School of Architecture and
the Department of Civil Engineering.
The Brown Engineering Development Committee
intensified its recruiting of engineering majors during
the year with considerable success. The again favorable
employment prospects for engineering graduates has
provided an additional attraction to these programs.
In cooperation with Texas Southern University two
new programs, one in engineering and one in geology,
have been developed. Under the program in geology
several TSU undergraduates will be taking courses at
Rice as part of their B.A. program at Texas Southern
University. The engineering program will enable quali-
fied students upon completion of three years at Texas
Southern University to transfer to one of the engineering
departments at Rice for an additional two years of study.
At the completion of these studies the student would be
awarded a B.S. in physics, mathematics, or chemistry
from Texas Southern University and a B.S. in engineer-
ing from Rice.
Although gi'aduate enrollment appears to be stabi-
lized, most of our own graduating seniors in engineering
continue the trend noted last year to choose industrial
employment over graduate study. Another important
trend is the increasing interest of women in engineering
careers. Some 15 percent of the 1974-1975 entering
engineering class were women, up from 5 percent in the
year under review. Rice has long exceeded the national
average, which is a little over 1 percent.
The quality and quantity of the research activity in
the division during the past year was reflected by faculty
members publishing 381 scientific and technical papers
and delivering 204 lectures to groups outside the
University.
A number of faculty members in the division received
honors and special recognition during the year. Dr. John
L. Margrave, Dean of Advanced Studies and Research,
and Dr. Frank J. Low, Adjunct Professor of Space
Physics and Astronomy, were elected to the National
Academy of Sciences. This brings to eight the number
of Rice faculty members belonging to the Academy.
School of Architecture
New faculty members brought to the school of
Architecture several new specialized disciplines and made
possible 12 courses not previously offered. Several kev
staff members of the Rice Center for Community Design
and Research also offered instruction at the School. The
new faculty members made significant additions to studio
teaching. They emphasized design in both architectural
and urban-scale projects. They also initiated courses in
health care and facilities planning as a beginning program
for architects who want to specialize in health projects.
The year under review saw a substantial increase in
the number of applications at both the undergraduate
and graduate levels in the School of Architecture. This
represents gi'owing national recognition of Rice's archi-
tectural graduate and undergraduate programs.
The educational programs of the School of Architec-
ture were enhanced considerably during the year by the
Rice Center for Community Design and Research. The
Center has become a practical and effective vehicle for
joining the resources of the academic community with
those of other groups to address problems of general
public concern in the area of the physical environment.
The clinical education of Rice University graduate
student interns is a key responsibility of the Center. It
provides the interns with innovative learning and man-
agement experience on research and professional service
projects applied to real problems.
During its first 18 months the Center served 10 clients
on applied research problems totaling over $235,000 in
fees. Among these clients were the U. S. Department of
Transportation, Galveston and Ft. Bend Counties,
the National Science Foundation, and several local
private developers. The key topics considered were
development and natural environment protection con-
flicts, transportation strategies, community services and
facilities projections, housing marketing innovation, and
development and land use planning advisory services.
Eleven faculty members of the Rice School of Archi-
tecture were involved in Center projects during the 1973-
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1974 academic year. Eight additional faculty members
from other Rice departments of both the humanities
and social sciences and science and engineering divisions
participated.
Jesse H. Jones Graduate School
of Administration
Among the year's highlights was the initiation of
endowment for the Jesse W. Jones Graduate School of
Administration named in memory of the late financier
and philanthropist. A $5 million gift from Houston
Endowment, hic. made the start of the endowment
possible. The new school will ctimbine superior academic
quality with a new approach to educating future execu-
tives. It will focus on the complexity of institutions in
modern settings by combining law, accounting-informa-
tion systems, and the analysis of large scale organizations
with a rich exposure to humanism. A wide-cast search
for a dean to head the school began early in the 1974-
1975 academic year. Special efforts will be made to
complete the endowment for this venture in education
for realistic leadership.
The Shepherd School of Music
The year under review also brought intensive organi-
zational efforts to The Shepherd School of Music.
Committed to the idea of a superior music school
focused on training orchestral artists, aggressive nation-
wide recruiting was begun to attract outstanding faculty
to The Shepherd School of Music. With a nucleus of a
faculty in place, additional recruiting efforts continue to
develop a new and innovative curriculum. Plans are afoot
for involving The Shepherd School of Music in Houston's
cultural life on an increasing scale. It is also hoped to
expand the support for the music school permitting the
establishment of scholarships and building funds.
Advanced Studies and Research
The graduate segment of the University, its facuhy,
students, and postdoctoral research associates continued
to contribute to the advancement of human knowledge
and to, the solution of real problems of society through
scholarly research investigations and other activities,
resulting in over 700 published works. Significantly,
much of this work was competitively selected for fund-
ing by external sponsors: 265 research proposals were
submitted and 135 new research grants and contracts
were awarded the University during the year totaling
over $7,000,000 in value.
A timely and interesting series of weekly seminars on
energy-related topics was held during the 1973-1974
academic year to assist faculty members in defining
energy problems related to their research fields and in
locating potential sponsors for their work. Seminar
speakers from both on and off-campus participated and
the sessions were attended by faculty, postdoctorals,
graduate students, undergraduates, and some visitors
from the local business community.
The close of the year found the Energy Research and
Education Foundation mo\ing into quarters on campus
under the terms of a formal agreement for a three-year
trial association with Rice University. EREF is a non-
profit foundation, supported by gifts and donations for
the purpose of collecting, evaluating, and disseminating
information on energy-related matters. EREF will serve
Rice by informing and assisting the faculty in under-
taking energy-related research projects.
Continuing Studies
The Office of Continuing Studies had its best year
ever during 1973-1974. Eight courses were presented
and attended by 143 tuition-paying students from the
Houston community. These included courses in science
and engineering, "Technical Report Writing," conversa-
tional Spanish, computers, and film making. Just as
important was the fact that some firm groundwork was
laid for an even better program in 1974-1975 with the
first courses — French, German, Russian, and Spanish —
starting in late August, 1974.
Enrollment
The peak graduate enrollment during 1973-1974 was
754, not including fifty-year professional engineering
students. A total of 185 women and 100 foreign students
were included in our giaduatc program. More than half
of the graduate students received some type of support
in the form of fellowships (stipends) and/or scholarships
(tuition) or research assistantships through the Univer-
sity. Many others applied for and obtained their own
support from foundations and other sources, and a few
secured loans through the University's Financial Aid
Office, or directly from some external source.
At the Spring 1974 Commencement, 34 Master of
Science, 57 Master of Arts, 9 Master of Architecture,
7 Master of Architecture in Urban Design, 5 Master in
Applied Mathematical Sciences, and 107 Doctor of
Philosophy degrees were awarded.
Postdoctoral Program
Both the scholarly achievements and educational
benefits of the University's research activities have been
enhanced with the participation of over 100 postdoctoral
fellows and research associates. Only postdoctoral re-
searchers with outstanding records are accepted and
receive appointments at Rice. They mingle and work
along with students, under the guidance of the same
faculty advisers. Postdoctorals come to Rice to expand
their own learning experience; at the same time, how-
ever, they impart much to the graduate and under-
graduate researchers who work with them. It should be
noted that the University's postdoctoral research pro-
gram is supported entirely by funds from external
sources, mostly research grants and contracts.
Library and ICSA
The Fondrcn Liljrary, like any quality library, is
always changing, growing, shifting emphasis, adapting
to new technologies. Fondren's staff watched the collec-
tion grow past 700,000 \olumes, processed over 30,000
new titles, served thousands of borrowers, answered
myriad reference questions, and planned carefully for
the new school of music. The R.I.C.E. (Regional
Information and Communication Exchange) program
continued to aid local business with reference service in
science, engineering, and social science.
The Institute for Computer Services and Applications
expanded effectively during the year as the new IB.M
370/155 worked its first full year of operation. ICSA
operates as a cost recovery venture, and, under heavy
obligation to return part of the University's investment,
it offered expanded services to users among Rice's
faculty and to clients off campus. Services included
remote job entry, larger batch opportunities, greater
student access during night hours. Users expressed satis-
faction with increased efficiency and quicker turnaround
times. ICSA's efforts to e.xpand community participation
were especially successful and ICSA met its revenue
projections. Prospects for increased public popularity
and wider campus usage look bright.
Administrative Developments
Among important administrative decisions of the
year were a number of changes in the University's per-
sonnel policies. In November, 1973, an Affirmative
Action Office was established and a director of Equal
Opportunity Programs was appointed with the task of
developing and maintaining Rice's Affirmative Action
Plan in a manner acceptable to the Contract Compliance
Office of the Department of Health, Education, and
Welfare. The director monitors all employment and pro-
motion recommendations to insure compliance with the
University's programs and goals. The director also inter-
acts in grievance cases where equal opportunity and/(jr
discrimination may be an issue.
In December, 1973, the University began a review of
its Staff Classification and Salary Plan by having all
employees complete new job descriptions.
Acting on recommendations by the University's Sub-
committee on Insurance and Fringe Benefits, several
improvements were made in benefits available to faculty
and staff. Changes were made in the retirement plan
including lowering the normal retirement age to 65,
increasing the University's contribution after a partici-
pant reaches age 50, and transferring all retirement funds
to TIAA/CREF and thus eliminating what was known as
the Rice Retirement Plan. These changes should result
in a more favorable retirement income for Rice em-
ployees. Improvements were also made in the Long
Term Salary Continuance and Group Medical Insurance
Plans.
While there were no major building projects on cam-
pus during the year, the University benefited from
certain remodeling required at the Rice Stadium in
connection with the 1974 Superbowl. The stadium now
has permanent TV camera boxes and expanded press
facilities.
In the Fondren Library, the lecture lounge was com-
pletely remodeled and refurnished and dedicated to the
memory of Kyle Morrow '34.
Self-Study
The University's Self-Study report was successfully
completed. It had two principal objectives: to fulfill the
accreditation requirements of the Southern Association
of Colleges and Schools and to provide a foundation
document from which a new plan could evolve to guide
the University's future.
In three reports the study provided an exhaustive
retrospective look at the University, its strengths and
weaknesses. More than forty members of the Rice
community, working in three separate committees, com-
piled data and wrote the various sections of the final
reports. These reports proved their usefulness while they
were slill being written by pointing up a number of
problems and thereby speeding their solution.
Upon completion of the Self-Study, the Commission
on Goals and Objectives was created. The Commission's
final report will be submitted to the University's Board
of Governors for its consideration and such action as it
may wish to take.
Financial Review
During the year, the principal of endowment funds at
book value increased 111,015,000 over the previous year,
as a result of realized gains and gifts. The total book value
of the endowment at statement date was $161,500,148.
Due to the drop in the stock market, however, during
this same period, the market value of the endowment
dropped from $176,752,000 to $159,873,000.
For the first time since 1963, operating revenues
exceeded expenditures with the result that we had an
operating surplus of $1,61 1,505. In addition, at the year
end, the reser\'e for contingencies had increased to a
balance of $868,527.
During each of the preceding ten years from the year
ended June 30, 1964, through the year ended June 30,
1973, the University's current fund expenditures ex-
ceeded current fund income. During this period the
cumulative deficit amounted to $8,277,000 and was
funded out of the Contingency Reserve ($4,566,000)
Undesignated Campaign Gifts ($2,201,000) and Endow-
ment Funds ($1,520,000). The University is committed
to a folicy of balancing expenditures with revenues. In
order to provide for uncontrollable income and expendi-
tures fluctuations, the Board of Governors has provided
that 5% of endowment income each year be set aside as
a Contingency Reserve.
Revenues
For the fiscal year ended June 30, 1974, unrestricted
current fund revenues totalled $22,528,399 and ex-
ceeded unrestricted current funds expenditures and
transfers of $20,887,937 by $1,640,462. This surplus
was made possible by careful management of the Uni-
versity's expenditures coupled with several fortunate
economic events.
First, oil and gas revenues which comprised about
28% of endowment revenues in fiscal year 1974 increased
by $1,044,000 as a result of the federal government's
decision to relax price controls on "old" oil. Second,
interest income increased by $466,000 as Rice com-
mitted a greater share of its endowment portfolio to
investment in short term securities which at times
yielded a return as high as 12.75%. Third, despite the
economic pessimism evidenced by the stock market,
our dividend income increased by $267,000. Continued
success in the Annual Fund Drive resulted in an increase
in gifts for current operations to $823,206, an increase
of $203,371 over the previous year.
The following chart illustrates the changing compo-
sition of the University's revenues through the last ten
years.
30 r—
28 -
26 -
24 -
22 -
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
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6
4
2
TEN YEAR INCOME GROWTH
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
10
Expenditures
Total current funds expenditures and transfers of
$29,906,000 were comprised of $15,524,000 salaries,
$12,988,000 operating expenses, and $1,394,000 capital
improvements. These expenditures represent an increase
of $315,000, or just over 1% above the previous year.
In the Educational and General group, expenditures
were decreased by $45,000 to a total of $24,547,000.
All categories decreased with the exception of Instruc-
tional and Departmental Research, Student Services,
and Operation and Maintenance of Plant. Instruction
and Departmental Research expenditures rose $775,000
or nearly 10%; however, most of this increase was in the
expenditures from restricted funds, which are financed
from dedicated endowment or other sources. The cost
of Operation and Maintenance of Plant grew 11%, due
primarily to inflationary factors. Cost of Student
Services rose 7% due to an effort to improve these
services.
It is important to note that library unrestricted
expenditures of $1,252,622, were 8% of the University's
total unrestricted operating expenditures. Of this a-
mount, $500,000 represents purchases of new library
books. This reflects Rice's commitment to library
excellence.
The following chart depicts the changing composition
of expenditures during the preceeding ten years.
„_~"Tf^ I
' J. ?_!L?JL.1_?_1
1 II mil
i3i?i q-M- B.S^ lit
* " ^ - --
30
28
26
24
22
(O
tr.
?n
<
-1
_i
18
o
o
16
U-
i o
14
CO
z
12
o
\ =i
10
' _j
S
8
6
4
2
TEN YEAR EXPENDITURES GROWTH
AUXILIARY ENTERPRISES
UNRESTRICTED EDUCATIONAL S GENERAL
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
.0
1965 1966 1967 1968 1969 1970 1971 1972 1973 1974
II
Reserve For Contingencies
For the second successive year we hiave been able to
make a transfer to the Reserve for Contingencies with
the result that it has a balance as of June 30, 1974 of
1868,527. If the University can avoid deficit spending
over the next several years, and continue to make con-
tributions to this reserve, this cushion will again provide
the flexibility necessary for operations during uncon-
trollable short term economic declines.
Present and Future Needs
The costs of providing a quality education has risen
nationwide at a rate faster than the general rate of
inflation. At Rice, current funds expenditures for edu-
cational and general purposes, in the fiscal year ended
June 30, 1974, amounted to more than $4,800 per
student. This does not include capital expenditures or
expenditures associated with research programs of the
University.
Tuition is presently set at $2,100 for undergraduate
students, and $2,300 for graduate students. The differ-
ence between these charges and the $4,800 expenditure
must be generated from sources other than tuition.
Current gifts and endowment income provide the bulk
of this difference. Barring major legislative or regulatory
changes, such as occurred in the year ended June 30,
1974, endowment income will probably increase at a
lower rate than inflation.
A nationwide comparison of the return on endow-
ment funds ranks Rice among the top major universities.
However, additional endowment is needed to fund ex-
panded academic programs such as the Jesse H. Jones
Graduate School of Administration.
Arthur Andersen & Co.
Houston, Texas
October 7, 1974
To the Board of Governors,
William Marsh Rice University:
We have examined the balance sheets of William Marsh Rice University (a nonprofit Texas
corporation) as of June 30, 1974, and the related statements of changes in fund balances, current
funds revenues, expenditures, and other changes for the year then ended. Our examination was
made in accordance with generally accepted auditing standards, and accordingly included such
tests of the accounting records and such other auditing procedures as we considered necessary in
the circumstances. We have previously examined and reported on the financial statements for the
preceding year.
In our opinion, the accompanying financial statements present fairly the financial position
of William Marsh Rice University as of June 30, 1974, and the changes in fund balances and the
current funds revenues, expenditures, and other changes for the year then ended, in conformity
with generally accepted accounting principles applied, after giving retroactive effect to the change
in the method of accounting for departmental expenditures as explained in Note 2 to the finan-
cial statements, on a basis consistent with that of the preceding year.
Arthur Andersen & Co.
12
Year
Ended June 30,
1974
Year Ended
June 30, 1973
Total
Unrestricted
Restricted
Total
$ 6,454,935
1,281,681
823,206
9,768,247
$ 96,432
4,484,489
2,301,313
1,370,529
$ 6,551,367
5,766,170
3,124,519
11,138,776
$ 6,480,226
6,734,525
3,047,139
9,095,565
61,810
593,776
127,441
593,776
189,251
90,216
112,458
18,389,879
8,973,980
27,363,859
25,560,129
4,138,520
26,807
4,165,327
4,095,007
22,528,399
9,000,787
31,529,186
29,655,136
Statement of Current Funds Revenues, Expenditures, and Other Changes
Year Ended June 30, 1974, With Comparative Figures for 1973
(Note 1)
REVENUES:
Educational and general —
Student tuition and fees
Government grants and contracts
Gifts and private grants (Note 6)
Endowment income (Note 3)
Sales and services of educational and
service department
Other sources
Total educational and general
Auxiliary enterprises
Total revenues
EXPENDITURES AND MANDATORY TRANSFERS:
Educational and general —
Instruction and departmental research
Sponsored research
Other sponsored programs
Library
Student services
Operation and maintenance of plant
General administration
General institutional
Student aid
Educational and general expenditures
Mandatory transfers for —
Provision for plant improvements (Note 9)
Loan fund matching grant
Total educational and general
Auxiliary enterprises
Total expenditures and mandatory transfers
OTHER TRANSFERS AND ADDITIONS (DEDUCTIONS):
Funding of current unrestricted expenditures
for equipment (Note 9)
Operating deficits transferred to endowment
Excess of restricted receipts over transfers
to revenues
Refunded to grantors
Unrestricted gifts and investment income allocated
Restricted investment income returned to
endowment
Provision for contingencies (Note 9)
Renewals and replacements— auxiliary enterprises
Miscellaneous
6,783,152
1,793,924
8,577,076
7,802,229
-—
4,830,540
4,830,540
5,318,642
— -
1,563,546
1,563,546
1,912,434
1,252,622
48,815
1,301,437
1,343,784
620,083
18,735
638,818
597,140
1,558,395
75,593
1,633,988
1,471,549
1,863,910
195,490
2,059,400
2,081,405
735,823
2,855
738,678
758,470
2,848,390
355,607
3,203,997
3,306,765
15,662,375
8,885,105
24,547,480
24,592,418
976,825
976,825
781,991
— -
17,635
8,902,740
17,635
25,541,940
8,477
16,639,200
25,382,886
4,248,737
115,682
4,364,419
4,208,849
20,887,937
9,018.422
29,906,359
29,591,735
675,261
75,804)
(488,414)
(40,000)
211,812
(33,923)
31,538
(697,649)
63,748
675,261
211,812
(33,923)
(144,266)
(697,649)
(488,414)
(40,000)
63,748
565,121
1,153,820
797,089
(32,900)
(188,067)
(356,319)
^380,113)
(975,343)
Net increase in fund balances
$ 1,611,505
(442,109) $ 1,169,396 $ 646,689
13
Balance Sheets
ASSETS
CASH, RECEIVABLES, AND PREPAYMENTS:
Cash
Accounts and accrued receivables
Notes receivable, loan funds
Prepaid expenses and deferred charges
INVESTMENTS (Note 3):
Bonds and short-term commercial paper, quoted market of
$32,239,000 and $22,681,000 at respective dates
Stocks, quoted market of $114,367,000 and $140,019,000
at respective dates
Wholly owned corporations, at underlying equity (Note 4)
Mortgage and collateral loans
Oil and gas properties, less amortization of $26,192,000
and $27,041,000 at respective dates
Real estate and leasehold improvements, less amortization
of $4,129,000 and $3,844,000 at respective dates
Undeveloped real estate and other
Interfund investments —
Unexpended plant funds mvested in endowment
Auxiliary and educational service facilities financed
from endowment (Note 5)
Other
EDUCATIONAL PLANT, at cost (Note 5):
Land
Buildings and improvements
Equipment, furniture, and library books
Current
Funds
EndowiTicnt
and Similar
Funds
$ 186,425
569,797
$
485,916
161,998
131,650
918,220
617,566
...
39,314,249
—
108,902,548
932,148
5,925,060
...
1,971,211
...
5,326,629
2,182,219
...
(664,911)
4,549,134
6,803,541
(4,884,939)
4,549,134
165,807,755
Less — Allowance for depreciation on auxiliary and
educational service facilities
Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable (Note 2)
Deferred income and deposits (Note 6)
Deposits of collateral for securities loaned (Note 7)
Retirement funds (Note 8)
Total liabilities
FUND BALANCES:
U.S. Government and private grants refundable
University funds —
Restricted
Reserved for commitments ($158,794 unrestricted
and $518,640 restricted in 1974) (Note 2)
Unrestricted
Funds functioning as endowment
Net investment in plant
Total fund balances
Total liabilities and fund balances
14
$ 5,467,354
694,102
1,079,573
1,773,675
$166,425,321
324,809
779,655
2,378,900
1,441,809
4,925,173
462,130
...
1,003,217
39,888,239
677,434
1,550,898
64,967,308
56,644,601
3,693,679
161,500,148
$ 5,467,354
$166,425,321
2 30, 1974 and 1973
June 30, 1974
Plant
Funds
$ 205,590
58,123
263,713
Loan
Funds
132,332
2,919,452
3,051,784
Total
524,347
1,055,713
2,919,452
351,771
4,851,283
June 30,
1973,
Total
$ 710,117
866,002
2,429,918
354,868
4,360,905
664,911
(6,803,541)
227,394
(5,911,236)
444,054
56,285,435
19,654,758
76,384,247
3,483,032
72,901,215
$67,253,692
17.581
108,411
125,992
39,314,249
108,920,129
932,148
5,925,060
1,971,211
5,326,629
2,182,219
$ 3,177,776
164,571,645
444,054
56,285,435
19,654,758
76,384,247
3,483,032
72,901,215
$242,324,143
26,941,828
109,485,412
942,967
6,900,841
3,930,739
5,592,761
2,087,980
155,882,528
444,480
56,024,740
18,754.365
75,223,585
3,108,418
72,115,167
$232,358,600
1,018,911
1,859,228
2.378,900
1,441,809
6,698,848
990,878
1,385,840
3,961,200
4,257,122
10,595,040
728,186
429,943
66,095,563
67,253,692
$67,253,692
2,055,445
392,628
729,703
3,177,776
$ 3,177,776
2,517.575
42,012,270
677,434
67,677,852
56,644,601
66,095,563
235,625,295
$242,324,143
2,317,075
36,267,622
687,407
63,114,274
54,422,563
64,954,619
221,763,5"60
$232,358,600
is"
Statement of Chaijj;
For the Year Erir
Current Funds
FUND BALANCE AT END OF YEAR $ 1,709,691
16
Unrestricted Restricted
REVENUES AND OTHER ADDITIONS:
Educational and general revenues $ 18,389.879 $ 924,026
Auxiliary enterprises revenues 4,138,520 30,271
Gifts and bequests— restricted — - 1,118,591
Grants and contracts— restricted — - 7,030,297
Investment income— restricted — 1,548,811
Oil and gas royalties
Realized gains on investments —
Distributions from wholly owned corporations (Note 4)
Repayment of advances from endowment funds (Note 5)
Interest and recovery of bad debts on loans receivable —
U.S. Government advances
Expended for plant facilities (including $657,088 and $737,351 charged
to current unrestricted and restricted funds expenditures, respectively)
Refund of Federal income taxes on unrelated business income —
Miscellaneous
Total revenues and other additions 22,528,399 10,651,996
EXPENDITURES AND OTHER DEDUCTIONS:
Educational and general expenditures 15,662,375 9,024,510
Auxiliary enterprises expenditures 4,248,737
Indirect costs recovered — - 1,415,674
Refunded to grantors — 33,923
Loan cancellations and write-offs — —
Administrative and collection costs — —
Expended for plant facilities including noncapitalized expenditures
of $15,257
Retirement of plant assets — —
Decrease in underlying equity of wholly owned corporations (Note 4) — —
Repayment of advances from endowment funds (Note 5) —
Miscellaneous -_^ 2H
Total expenditures and other deductions 19,91 1,112 10,474,107
TRANSFERS AMONG FUNDS-ADDITIONS/(DEDUCTIONS):
Mandatory-
Loan fund matching grant — - (1-7,635)
Provision for plant improvements (Note 9) (976,825)
Funding of current unrestricted expenditures for equipment (Note 9) 675,261
Unrestricted gifts and investment income allocated (175,804) 31,538
Restricted investment income returned to endowment - - (697,649)
Provision for contingencies (Note 9) (488,414)
Renewals and replacements— auxiliary enterprises (40,000)
Funding of student loan program
Miscellaneous transfers — - 63,748
Total transfers (1,005,782)
NET INCREASE/(DECREASE) FOR THE YEAR 1,611,505
FUND BALANCE AT BEGINNING OF YEAR 98.186
(619,998)
(442,109)
2,426,097
$
1,983,988
^
Fund Balances
e 30, 1974
Endowment and Similar Funds
Income Income Functioning
Restricted Unrestricted As Endowment
Plant Funds
Unexpended
Investment
in Plant
Loan Funds
4,245,363
507,124
4,769
762,559
5,519,815
35,268
12,414
1,732,309
833,643
2,613,634
1,511,605
266,605
1,778,210
350,788
12,686
9,406
372,880
250,000
1,688,676
1,938,676
10,080
6,542
40,514
224,223
281,359
16,227
16,227
10,819
0,819
136,773
136,773
172,721
250,000
422,721
797,732
797,732
44,297
9,446
53,743
17,635
-—
....
976,825
....
....
—
— -
—
(675,261)
—
—
....
—
144,266
....
....
....
697,649
....
..--
— -
—
—
....
....
488,414
....
....
....
....
....
....
40,000
—
....
— -
....
(368,000)
— -
—
368,000
(10,720)
14,356
580,600
2,222,037
(67,384)
(27,384)
(77,225)
-—
686,929
—
....
385,635
6,190,517
2,602,815
1,140,944
613,251
33,697,722
62,364,494
54,422,563
1,235,354
64,954,619
2,564,525
$ 39,888,239
$ 64,967,309
$ 56,644,600
$ 1,158,129
$ 66,095,563
$ 3,177,776
17
Notes to Financial Statements
June 30, 1974 and 1973
(1) Summary of significant accounting policies
Basis of accounting
The financial statements of William Marsh Rice Uni-
versity have been prepared substantially on the accrual basis
except for depreciation accounting explained in Note 5 be-
lowr. To the extent that current funds are used to finance
plant assets, the amounts so provided are accounted for as
expenditures. To the extent these expenditures are funded
from the reserve for plant improvements (Note 9), such
amount is transferred from endowment and similar funds.
The statement of current funds revenues, expenditures, and
other changes is a statement of financial activities of current
funds related to the current reporting period. It does not
purport to present the results of operations or the net
income or loss for the period as would a statement of in-
come or a statement of revenues and expenses.
Fund accounting
In order to ensure observance of limitations and re-
strictions placed on the use of available resources, the ac-
counts of the University are maintained in accordance with
the principles of "fund accounting." Fund accounting is a
procedure by which resources are classified for accounting
and reporting purposes into funds that are in accordance
with activities or objectives specified. Although separate
accounts are maintained for each fund, funds that have
similar characteristics have been combined into fund groups
and all financial transactions have been reported by those
fund groups in the accompanying financial statements.
Within each fund group, fund balances restricted by
outside sources are so indicated and are distinguished from
unrestricted funds allocated to specific purposes by action
of William Marsh Rice University's Board of Governors.
Externally restricted funds may be utilized only in accord-
ance with the purposes established by the source of such
funds.
Gains and losses arising from the sale, collection, or
other disposition of investments and other noncash assets
are accounted for in the fund which owned such assets.
Ordinary income derived from investments, receivables, and
other assets is accounted for in the fund owning such assets,
except for income derived from investments owned by
endowment funds, which income is accounted for in the
fund to which it is restricted or, if unrestricted, as revenues
in unrestricted current funds. Restricted current funds
revenues are reported as revenues and expenditures when
expended.
Endowment and similar funds
Endowment funds are generally subject to the restric-
tions of gift instruments requiring in perpetuity that the
principal be invested and the income only be expended.
While funds functioning as endowment have been estab-
lished by the Board of Governors for the same purposes as
endowment funds, any portion of funds functioning as
endowment may be expended at the discretion of the Board
of Governors.
Income restricted endowment funds generally repre-
sent gifts and bequests received by the University for which
the donors have stipulated that the principal is to be main-
tained inviolate and income resulting from investment of
the funds may be expended for specified purposes. Other
endowment funds consist of income unrestricted endow-
ment funds, including the founder's endowment and funds
18
functioning as endowment. Income unrestricted funds rep-
resent gifts and grants together with allocated realized capi-
tal gains that are maintained inviolate. Income earned by
investment of these funds is used for unrestricted operations.
Funds functioning as endowment consist of discretionary
funds which the Board of Governors has designated as en-
dowment, the income from which may be used for un-
restricted operations.
Loan funds
Loan funds include gifts and grants which are limited
by the terms of donors to the purpose of making loans to
students or faculty and funds of the University which have
been designated by the Board of Governors as loan funds.
Also included in these funds is the National Direct Student
Loan Program ($2,187,000 at June 30, 1974) financed
primarily by the Federal government and administered by
the University.
Plant funds
Plant funds consist of the total invested in the edu-
cational plant together with unexpended gifts, grants, and
reserves which are held for acquisition or construction of
physical properties.
(2) Restatement of prior years 'financial statements
Prior to June 30, 1973, the University included in ex-
penditures the departmental commitments of current funds
in order to reflect these items as expenditures in the period
in which the expenditures were budgeted. Under this method,
expenditures included items which would not be recorded
in the period under accrual basis accounting. The American
Institute of Certified Public Accountants issued an industry
audit guide entitled Audits of Colleges and Universities
during 1973 to be effective for fiscal years beginning after
June 30, 1973. During 1974, the University changed to the
accrual method for reporting expenditures to comply with
recommendations of the audit guide. Financial statements
of prior years have been restated to apply the accrual method
retroactively. The effect of this change on the 1974 and
1973 current funds expenditures was not significant. The
effect of the change on fund balances was applied retro-
actively and had the effect of increasing the beginning fund
balances for 1973 by $317,085. The outstanding commit-
ments at June 30, 1974 and 1973, are reflected as an allo-
cation of fund balance in the accompanying balance sheets.
In addition, certain other reclassifications have been
made to the 1973 financial statements to make them com-
parable with those of the current year.
(3) Investments
Investments are recorded at cost or fair market value
at date of acquisition, except for investments in wholly
owned corporations (Note 4) and certain investments in
undeveloped real estate which are recorded at a nominal
value plus costs incurred for taxes and maintenance (approx-
imately $94,000 in 1974) subsequent to the date of ac-
quisition.
Premiums or discounts applicable to nonconvertible
bonds purchased are amortized against investment income
over the life of the bonds.
Most income restricted endowment funds participate
in a common pool which is operated on a market value
basis. Those income restricted funds which by the terms of
the gift do not permit participation in such a pool are
maintained on a separate investment basis.
Other endowment funds together with interfund in-
vestment amounts of other funds are commingled for
investment purposes in the general investment pool. Inter-
fund investments do not share in the general investment
pool's gains and losses, but are allowed interest.
Income from investments in marketable securities as a
percent of total investment in marketable securities and net
gain on sales is as follows:
TOTAL INVESTMENTS IN MARKETABLE SECURITIES
AT JUNE 30 (IN OOO's)
Yield on Yield on Gain on Sales
Cost Market Cost Market (in OOO's)
1974 $148,234 $146,606 5.2%
1973 136.427 162.700 4.5
5.3'
3.8
$ 3,692
15,083
Investments in oil and gas properties and improved
real estate held for investment are recovered through amor-
tization charged against related income. Current unrestricted
fund endowment income includes 72'/2 percent of oil and
gas receipts ($2,609,767 and $1,658,238 for 1974 and 1973,
respectively). The remaining 27V2 percent is recorded as
amortization of the related oil and gas investments in en-
dowment and similar funds.
(4) Investments in wholly owned corporations —
The financial statements include all assets, liabilities,
and fund balances of the University except certain separately
incorporated but related entities for which the University
is fiscally responsible. These corporations are included in
the endowment and similar funds balance sheet at underly-
ing equity. In the accompanying statement of changes in
fund balances, distributions to the current funds are in-
cluded in educational and general revenues. Condensed
financial statements of these corporations follow:
CONDENSED STATEMENT OF FINANCIAL POSITION
June 30, 1974 and 1973
1974 1973
Gas production payments $13,479,110 $
Marketable securities, quoted market
of $370,807 and $416,717 at
respective dates 486,591 495,257
Real estate and other assets, at cost or
fair market value at date of acquisition 480,156 503,565
Total Assets
14,445,857
998,822
Long-term debt, secured by gas
production payments
Otlier liabilities
13,479,110
34,599
55,855
Total Liabilities
13,513.709
55,855
Investment in wholly owned corporations
at underlying equity as included in the
accompanying balance sheet $ 932,148
$942,967
CONDENSED RESULTS OF OPERATIONS
For the Year Ended June 30,
1974 and 1973
1974
1973
Revenues
Expenses
$1,638,738
708,181
$365,570
200,846
Income before distribution to the
University
930,557
164.724
Distributions —
To current unrestricted revenues
To unrestricted endowment
107,733
833,643
56,510
194,700
941,376
251,210
Decrease in underlying equity of wholly
owned corporations as included in
accompanying statement of changes
in fund balances
$ (10,819)
$(86,486)
(5) E(Jucational plant
The educational plant is stated at cost. No provision
is made for depreciation of educational buildings and equip-
ment.
Depreciation charges ($375,000 and $345 ,000 in 1974
and 1973, respectively) have been made to educational
service and auxiliary operations for recovery of the cost of
that portion of these operations not financed by gifts and
grants. These charges are based substantially on estimated
useful lives and are intended to reimburse endowment funds
for amounts advanced to fund auxiliary and educational
service facilities. In addition, unexpended plant funds of
$250,000 were utilized in 1974 for repayment of endow-
ment funds for a portion of such advances.
Six and two-thirds percent of capitalized equipment
is charged off (retired) each year.
(6) Gifts
Gifts of $543,285 received during the year for un-
restricted operations have been deferred for use during the
1974-1975 academic year. Gifts of $497,201 received dur-
ing the prior academic year are included in current un-
restricted revenues. Other than those gifts deferred, gifts
are included in revenues or added to appropriate fund
balances only as received and do not include pledges.
Pledges to be collected over the next nine years are as
follows;
Current funds —
Unrestricted
Restricted
$ 236,000
1.420.000
1.656.000
1.998,000
$3.654.000
Total current funds
Plant and endowment funds
Total pledges
In addition, assets have a market value of approxi-
mately $3,000,000, consisting of marketable securities and
real estate, were held by a trustee at June 30, 1974, pending
distribution to the University from an estate.
(7) Deposits of collateral for securities loaned
The University received $2,378,900 as collateral de-
posits for certain securities temporarily loaned to brokers.
As of June 30, 1974, the securities on loan amounted to
$2,210,428 at cost (market $2,318,750) and the collateral
deposits were invested in short-term paper.
(8) Retirement plan
Retirement funds represent balances of pension funds
held for employees, a substantial portion of which funds
were transferred to a trustee in 1974.
The University's policy is to expense pension costs on
a current basis except for projected costs of certain mini-
mum benefits which resulted from changes made to the
plan in 1974 for participants over 50 years of age. These
costs of approximately $1,200,000 are being funded over
15 years. Total pension costs in 1974 of $914,000 included
$78,000 in amortization of these minimum benefit costs.
The approximate value of unfunded past service benefits
as of June 30, 1974. was $600,000.
(9) Provisions for plant improvements and contin-
gencies
Transfers of five percent of unrestricted endowment
income, as a provision for contingencies, and 10 percent, as
a provision for plant improvements, have been made from
current unrestricted funds to funds functioning as endow-
ment. Current unrestricted expenditures for equipment
($675,261 in 1974) and certain other plant additions
($136,773 in 1974) are funded by a charge against the
reserve for plant improvements.
Balances of funds functioning as endowment reserved
for contingencies and reserved for plant improvements were
$868,527 and $164,791, respectively, at June 30, 1974.
(10) Contingent liabilities
There are several suits and claims pending against the
University, the effect of which cannot be estimated at this
time; however, legal counsel for the University believe the
ultimate liability, if any, will not be material to the Uni-
versity's financial position.
19
Public Lectures 1973-1974
This was the tenth year in which the University offered a series of lectures to the Rice Community and the
general public free of charge. The lecturers were distinguished scientists and humanists representing a wide range of
interests. The University's Committee on Public Lectures is responsible for this annual series of events.
Sancy Hanks, Chairman,
Xational Endowment for
the Arts, Washington, D.C.:
"New Decisions for the
Arts." September 25, 1973.
Alvin M. Weinberg, Direc-
tor, Oak Ridge National
Laboratory, Oak Ridge,
Tennessee: "How Can
Man Live With Fission?"
October 2, 1973
Sir Fred Hoy le, Formerly
Professor of Astronomy
and Experimental Philoso-
phy, Cambridge University;
Honorary Research Profes-
sor of Physics and Astron-
omy, University ofMan-
c h ester, E ngla nd; Andrew
D. White Professor-at-Large,
Cornell University, Ithaca,
.\'ew York: "Stonehenge,"
November 13, 1973;
"Copernicus, "November 15,
1973.
James H. Billington, Profes-
sor of History , Woodrow
Wilson School of Public and
International Affairs,
Princeton University , Prince-
ton, New Jersey; Director
of the Woodrow Wilson
Center for Scholars,
Washington, D.C.: "The
Revolutionary Tradition,"
February 21, 1974.
^^IPr """i^l
&!■
Allen S. Whiting, Professor
of Political Science, Center
for Chinese Studies, Univer-
sity of Michigan, Ann Arbor,
.\Ii c h iga n : ' 'Ch in a 's Folic y
and Power After Mao, "
January 22, 1974.
R. Buckminster Fuller, Dis-
tinguished University Profes-
sor, Southern Illinois
University, Carbondale,
Illinois, and World Fellow
in Residence at University
of Pennsylvania, Philadelphia.
Pennsylvania: "Humans in
The Universe," March 19,
1974.
20
Administration
Board of Governors
Norman Hackerman
President
Frank E. V'andiver
Provost
Katherine Tsanoff Brown
Dean of Undergraduate Affairs
John L. Margrave
Dean of Advanced Studies and Research
William W. Akers
Director for University Relations
Virgil VV. Topazio
Dean of Humanities and Social Sciences
William E. Gordon
Dean of Science and Engineering
David A. Crane
Dean of the School of Architecture
Samuel Jones
Director of The Shepherd School of Music
Alexander J. Dessler
Manager of Campus Business Affairs
Trustees
Herbert Allen
Chairman
James U. Teague
Vice Chairman
E. D. Butcher
Robert R. Herring
Mrs. William P. Hobby
William H. Lane
J. Hugh Liedtke
Term Members
Mrs. Anthony J. A. Bryan
Harry J. Chavanne
C. W. Duncan, Jr.
William S. Parish III
Gerald D. Hines
Baine P. Kerr
Stanley C. Moore
Ralph S. O'Connor
Alumni Governors
Mrs. David Hannah, Jr.
James R. Meyers
Frank B. Ryan
Talbott Wilson
Trustees Emeriti
George R. Brown
John S. Ivy
W. A. Kirkland
H. Malcolm Lovett
Jack C. Pollard
Gus S. Wortham
Governor Advisors
John W. Cox
Sam S. Emison
James W. Hargrove
Carl lUig
Jack S. Josey
Howard B. Keck
Theodore N. Law
Wendel D. Ley
J. W. McLean
John W. Mecom
Haylett O'Neill, Jr.
J. Howard Rambin
Fisher Reynolds
E. Joe Shimek
John D. Simpson
Harry K. Smith
Milton R. Underwood
James O. Winston, Jr.
Benjamin N. Woodson
Leo S. Shamblin
Treasurer-Secretary
D. D. Lovell
Assistant Secretary
Joseph Nalle
Assistant Secretary and .Manager
Mineral Investments
J. R. Persons
Comptroller
21
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University
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Houston. Texas 77001
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