View Full Version : GU almost closed in 1974

Zag 77
10-28-2012, 05:41 PM
The Spokesman-Review had a piece today about GU's 125 year history and I came across this reference:

Gonzaga has weathered at least three crises that threatened its very existence. The first came during the typhoid outbreak in 1906. The second came during the Great Depression, when the school went into deep debt, in part because students could not pay their tuition. There was serious talk of moving Gonzaga to another city.

The third came in 1974, when the school was $2 million in debt. Gonzaga survived only because board president Harry Magnuson pledged his own assets to secure the school’s credit.


I knew things were tough during the transition from Fr. Twohy to Fr. Coughlin but I did not realize just how bad.

10-28-2012, 08:02 PM
The anniversary book includes coverage of the 1974 incident also

10-29-2012, 03:40 AM
If I'm not mistaken, most of the credit for the crisis of '74 belongs to the disgraced Fr Leary and his "Project Overbuild" of the late 60's. He put GU into some serious future debt. He left in May of '69.

Angelo Roncalli
10-29-2012, 08:42 AM
Former GU board chair John Hayes described the situation in 1974 at GU as: genteel bankruptcy.