Higher Priced Rooms

The higher priced rooms should be reduced to rates that will attract men who can afford them and who are now outside the House Plan because of the savings they make in rents.

[A table is attached to the Council's report showing room rents as they will be in 1933-34, together with a "Schedule X" intended to illustrate the way in which the band of prices could be narrowed.--Ed]

The extra $8815 income obtained by increasing prices of all accommodations $5 each is used to counteract losses in room rentals when, for example, 100 rooms are changed from the $300 to the $260 class. The income drop is $40 per accommodation (the price actually falls from $305 to $265), or $4000 for the block of 100. The additions and subtractions in each case are indicated in the "change" column. Summation of the gains and losses incurred coincident with the change in the number of accommodations at each price, indicates a loss of income of $8800. Hence the increased price level makes possible the changes indicated on page 15, with a change in the total income of plus $15 for the University.

Arbitrary Adjustment

Of course this calculation represents an arbitrary adjustment, furnished as an example. Schedule X, or any other schedule of equal amount, could be put through without raising all prices $5 at the outset if the University could afford a decrease of $8800 in its revenues. Incidentally it is gratifying to know that the interest charges to which the House rents contribute will be reduced when