In his report to the Executive Council in May, Dr. Edward D. Joseph, Treasurer of the Association, announced that it would be necessary to recommend a dues increase of $50.00 a year. The complete text of Dr. Joseph's report follows:
“In past meetings the Treasurer's report has been a perfunctory statement of the financial position of the Association. There have been several trends that have been developing which I wish to call to your attention so that you are aware of the direction in which the Association is proceeding and of the consequences of this for the future.
“For the past six years the proposed budget for each year has included anticipated expenditures in excess of anticipated income. For several years the expected deficit did not materialize and the books of the Association remained balanced. In the past three years the expenditures have been rising so that each of these years has seen a deficit which has been covered by the use of reserve funds. The rise in expenditures has come about essentially in two ways. Activities of the Association have increased in many areas and new programs have been undertaken with their cost being absorbed by the regular budget. For example, the volume of committee reports, minutes, correspondence has snow-balled so that the administrative costs of the Central Office have sky-rocketed. As an instance of this, mailing costs (postage, stationery, etc.) have mounted to some $13-14,000 in the past year from about half of that 2-3 years ago. And this says nothing of the labor costs to the Central Office of reproducing this material for distribution (over $11,000). As an example of the latter though, let me mention that the salary of a bookkeeper has risen from $100 a week to a going rate of $175.00 a week.
“New activities such as the Newsletter ($4,000 a year), public relations consultant ($5,000 a year), a regular program of 2-3 site visits per year by the Committee on Institutes, more frequent interim meetings by various committees all seem to push up expenditures. The annual deficit of our two regular meetings has risen from $5,000 in 1965 to $15,700 in 1968. This is due to several factors. The cocktail party (a much acclaimed feature of the Fall meeting) has incurred a $4,000 deficit each year. In addition the meetings of committees at these meetings for meals pushes up our deficit. At the Waldorf, one of New York's most expensive hotels, for example, a lunch or dinner costs about $10 per person while a breakfast meeting costs about $6 per person.
“All of this is a prelude to my reporting that the audit of our books for 1968 shows that with a total budget of some $230,000 we had a deficit of about $22,000 of excess expenditures over income, with a consequent fall of our reserve funds to a point where they represent about only enough for six months operation of the Association — i.e. to about $140,000, rather than reserve for a year's expenditures which is accepted practice.
“Looking ahead to this year I know that in addition to the usual inflationary rise of the ordinary costs of operating our Association, we have an extra-ordinary item of some $10,000 incurred in connection with the Association's acting as host to the Third Pan-American Congress in New York last February. That Congress was a success in every way but financial. Future plans for the Program involve greater expenditures for that purpose. Therefore, I see no alternative but to inform you that in December I will recommend to the membership that our dues be increased $50 per member in order to balance our budget and rebuild our reserve. This will make our dues among the highest of any professional organization and raises a number of important questions.
“We are, after all, a relatively small organization of about 1300 members with a slowly growing membership list. I think we need to ask ourselves if we are in a position to undertake all the activities we are doing, and more so, some of those which are being contemplated. If, in the opinion of an informed membership, the answer to that question is affirmative, we must be prepared to pay for these in the form of increased and ever-increasing dues. If the answer is in the negative we need some guide-lines as to where to put our energies.
“In line with this, I have discussed with the Executive Committee the desirability of setting up an Ad Hoc Advisory Committee to help determine where the interests and energies of the Association are now being
utilized and if possible to formulate some steps for the future within an ordered framework of our resources. I think this is advisable before we undertake new programs or even plan to continue old activities which, however desirable, should be examined in light of our aims, goals and financial capabilities. The Executive Committee concurred in the desirability of setting up such an advisory committee.
“One word concerning our reserve funds invested in an Advisory Custody Account. Its value fell to $133,000 on April 8th, reflecting the fall of the stock market from the high level of last December when the account was valued at $141,000. This is relatively less than the drop in the market, reflecting the conservative nature of that account. We have made a slight change in the manner of handling that account, giving the Irving Trust Co. discretionary powers to act as they see fit, subject to review by the President and Treasurer.”