Daily Herald the Brown
vol. cxliv, no. 61 | Thursday, September 10, 2009 | Serving the community daily since 1891
In ‘horrendous’ year, endowment fell $740m By Nicole Friedman Senior Staf f Writer
The University’s endowment lost $740 million in the 12 months ending with June 30, falling to just over $2 billion, President Ruth Simmons said at a faculty meeting on Wednesday. But the discouraging endowment picture was tempered by relatively robust fundraising, Simmons said. In fiscal year 2009, the endowment lost 26.6 percent of its market value. During that period, the endowment paid out $132 million and the University received $44 million in endowment gifts, Simmons said. On June 30, the endowment was worth $2.038 billion. The endowment’s real asset investments, such as real estate and commodities, fared worst, falling almost 40 percent in the year, Simmons said. In contrast, the endowment’s fixed income investments increased 7 percent. “I’m happy to say that things are going ver y well,” Simmons told the faculty, adding that worstcase economic scenarios had been avoided, both worldwide and for the University. “We did not have to cancel (faculty) searches or do some of the more
draconian things being done” at peer institutions, Simmons said. The endowment’s value at the end of June roughly matches the administration’s “working assumption,” announced in January, that the once-$2.8 billion endowment would be worth roughly $2 billion when the turbulent fiscal year was over. Administrators will meet with members of the Corporation’s committee on the financial crisis on Friday “to get their advice about the next steps,” Simmons told the faculty. “We’ll keep you informed and involved as much as we can.” Kim Perley / Herald
Fundraising strong in down year The “odd thing,” Simmons said, is that “in spite of a horrendous year otherwise” for the University’s finances, the school raised $193.4 million — an all-time record for total cash giving. The Campaign for Academic Enrichment also reached a landmark in 2009, exceeding its $1.4 billion goal more than a year ahead of schedule. The drive had raised $1.421 billion as of August 28, according to the campaign’s Web site.
Members of the class of 2013 lined up to undertake a Brown rite of passage. After a procession through the Van Wickle Gates, President Ruth Simmons and Professor of Biology Johanna Schmitt welcomed new students.
Simmons welcomes class of 2013 By Heeyoung Min Staff Writer
President Ruth Simmons officially opened the University’s 246th year Wednesday afternoon, formally welcoming new members of the Brown community. Following tradition, incoming students marched through the Van Wickle Gates to the Main Green as
continued on page 4
No anger, just let-down at the new Blue Room
inside
News.....1-4 Metro........5-6 Spor ts...7 Editorial..10 Opinion...11 Today........12
www.browndailyherald.com
“This year, the fallout of the financial crisis will continue,” President Simmons said. But while University services may be slower and events “less lavish,” Simmons said, the University will preserve “things of greater value.” For example, last year a donor contributed $30 million in support continued on page 4
U. eyes purchase of former highway land By Lauren Fedor Senior Staff Writer
By Ellen Cushing Senior Staff Writer
With Faunce House under construction all year, the Blue Room has reopened in temporary quarters in the old mailroom. But students say it’s just not the same. “Two years without focaccia (expletive) sandwiches?” asked Carolyn Brown ’11, who visited the new cafe recently but didn’t make a purchase. “That’s just wrong.” In fact, if all goes according to plan, the popular eatery will have a new permanent home one year from now, President Ruth Simmons announced in her Convocation welcome Tuesday. For the interim, the Blue Room settled into its new space and officially reopened Aug. 31. The cafe will have slightly shorter hours — opening at 7 a.m. and closing at 4
parents equipped with camcorders and cameras joined other onlookers cheering from the sidelines. The class of 2013, in turn, forwarded the ovation to faculty members sporting colorful robes as they walked down the aisle to take their seats. The ceremony took a mirthful tone, but President Simmons’s speech did not overlook the realities of the economic times.
Kim Perley / Herald
The Blue Room, in its temporary location, has a limited food selection.
p.m., rather than 5 p.m. The new version is smaller and has different equipment, so it will not be carrying any food that needs to be prepared on-site — including soup, freshly made breakfast sandwiches, or the focaccia sandwiches for which it was famous. (The new cafe does not have an industrial-size oven on site for making fresh bread and muffins.) Instead, the new cafe will have
a wider selection of pre-made sandwiches, wraps and salads, as well as the pastries and bagels offered in previous years. Students said they were disappointed by the lack of focaccia sandwiches in particular. “I wish they made sandwiches like last year — the foccacia things,” said William Streckercontinued on page 2
The University will have the opportunity to acquire up to 36 acres of land in Providence in coming years, according to a report released last week by the governor’s office, the Rhode Island Department of Transportation, the Rhode Island Economic Development Corporation and the city. And the University has expressed interest in doing just that. The report, “Rhode Island Interstate 195 Relocation Surplus Land: Redevelopment and Marketing Analysis,” cited the University as a potential buyer of new lands that will be opened as part of the state’s ongoing “Iway” project to relocate the junction of I-95 and I-195 downtown. The Iway project will be complete and the reclaimed land will be ready for use by the end of 2012, according to the Department of Transportation Web site. Prepared by a team of consul-
tants, the report identified more than 20 parcels of land that will be made available for sale. The parcels comprise 36 acres of newly cleared land in the Jewelry District, Old Harbor, Fox Point and College Hill, according to a press release from the Department of Transportation. The state’s Economic Development Corporation will manage the disposition, or sale, of the land, according to the release. The report highlighted three objectives that officials hope will come from the re-use of the land: increased tax revenue, economic development — which will draw industries and jobs to the area — and urban revitalization. The report pointed to both Brown and Johnson and Wales University as prospective buyers of the land, suggesting that allowing the institutions to expand would support a “knowledge-based” economy in the area. continued on page 5
Metro, 5
Sports, 7
Opinions, 11
Assault at Fish Co. Bar shut down for three days in August following assaults and an arrest
Youth Movement The men’s soccer team may be young, but they have a taste for success
Unhealthy haste Ivy Chang ’10 urges caution in the rush to vaccinate against swine flu
195 Angell Street, Providence, Rhode Island
herald@browndailyherald.com