For the second successive year the H.A.A. books show a surplus, with an excess of income over expense of $4,746,59, as compared with a surplus of but $2,300 last year according to figures incorporated in the annual report of Henry L. Shattuck '01, teasurer of the College, released yesterday.

However, last year for the first time, the College assumed the expense of compulsory physical education for freshmen, which amounts to approximately $24,000, so that the "profit" shown this year is a profit only when it is remembered that expense amounting to $24,000 have been shouldered by the University.

Although the $4,700 profit is far below the $31,000 surplus reported for the year 1931-32, it is still a considerable gain over the fiscal year which ended in June 1933, and which was remembered for a $57,000 deficit.

Receipts for this year totalled $520,173, some $34,000 under the receipts reported last year. However the guarantees paid to visiting teams was decreased this year

by almost $15,000, so that there was available $380,869 for physical education and athletics this year as compared with $400,413.74 available last year.

The rigorous economies introduced in the H.A.A. three years ago have been continued. Total expenses have fallen from $412,789, in 1933 to $376,123 for this year. The H.A.A. News expenses were cut over $2000 while its income remained at $33,000 for the year.

Again the football team was the only major sport squad to show a profit, with receipts of $260,003, compared with an income of $291,000 last year. However football expenses were cut $7,000. Track and hockey both reported a rise in their expenses, and while the income for those two sports rose, it is still not enough to cover the deficits.

Operating and maintenance costs were cut about $3,000, but permanent improvements to grounds, buildings, etc. rose almost $10,000