1973 its operating deficit, i.e., the amount by *258 which current liabilities exceed current assets, was $368,000. In 1973 the college endowment fund was $945,000, reflecting a 21% decline from the previous year, of which 17.19% occurred between January 1 and March 31, 1973. Cash flow problems intensified around June 1973, with accounts payable accumulating to the point where some went back to February 1973, and were compounded by financing difficulties. Interest on loans rose from 8% to 11%, higher borrowing costs resulted from the college's loss of status as a prime lending risk some years ago, and the declining value of the endowment portfolio further restricted borrowing capacity. As the result of conferences  which were, coincidentally, carried on during the hearings and of which the courtwas kept aware  its bank will now determine its lending status on a week-to-week basis and will advance no funds other than those necessary to meet payrolls. Under these circumstances a freeze has been placed upon all expenses other than payroll.
It is recognized by the administration that existing mortgages could be recast in order to case the cash situation, but this decision has been deferred for the reason that the ultimate costs would eventually increase the financial burden. The prospect of rising fixed costs, the built-in limitation on tuitions resulting from the economic character of the student body, and reductions of federal aid with no corresponding increases in state aid programs are additional negative factors. Lack of available scholarship aid is another deterrent to the college's financial