xt71g15t7f4j https://exploreuk.uky.edu/dips/xt71g15t7f4j/data/mets.xml Lexington, Kentucky University of Kentucky 1938153 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1938-15-nov3-ec. text Minutes of the University of Kentucky Board of Trustees, 1938-15-nov3-ec. 1938 2011 true xt71g15t7f4j section xt71g15t7f4j 







     Minutes of the Regular Meeting of the Executive Committee of
the Board of Trustees of the University of Kentucky, November 3,
1938.


     The Executive Committee of the Board of Trustees of the Uni-
versity of Kentucky met in President McVey's office at the Uni-
versity Thursday, November 3, 1958, at 10:30 a.m.   The members of
the Committee present were Judge R.C. Stoll, Chairman; James Park
and H. S. Cleveland.   President Frank L. McVey and D. H. Peak,
Secretary of the Board, were present.


     1. Board Membership.

     The President presented following memorandum of University of
Kentucky Board of Trustees membership:


            M~emorandum concerning appointments and terms
            of resemblrs of the Board of Trustees, October
                              11, 1938


     The ex-officio rmiembers who serve during their terms of office
          are Governor A. B. Chandler, Harry Peters, Superintendent
          of Public Instruction, and C-arth Ferguson, Commissioner
          of Agriculture.

     The members from the State Board of Agriculture are John New-
          comb, H. S. Cleveland, and D. S. Stewart.   They are ap-
          pointed to succeed Ja. es Rash, 1936; W. C. Hanna, 1940;
          0. C. Whitfield, 1938.

     The members at large, appointed from the State as a wholes
          consist of:

          John S. Cooper, Somerset, 1940.
          Harper Patton, 1Mladisonville, 1940.
          Robert P. Hobson, Louisville, succeeding Robert
               Gordon, deceased, 1942.
          Lee Kirkpatrick, Paris, succeeding R. Miller Holland, 1944.
          Richard C. Stoll, Lexington, 1942.

     Alumni members aopointed for a term of six years are the fol-
          lowing:

          Marshall Barnes, Beaver Dam, 1944.
          Louis Hillenmeyer, Lexingtonr, 1942.
          Jamzes Park, Lexington, 1940.

     No appointment has been mza-le for successor to G. C. WNellss
          Paintsville, mermber at large, those term expired January
          1938.




 








     2. DiMlember of Council of Hi,-her Education.

     On motion and second, following recommendation by President Mc-
Vey, Professor Lee Kirkpatrick was chosen as a member of the Coun-
cil of Higher Education as representative of the University of Ken-
tucky, to fill the vacancy iniade by death of Judge Robert G. Gortlon.


     3. Aoproval of Minutes.

     The minutes of the meeting of the Executive Committee of July
28, 1938, and August 27, 1938, were approved as published.    Thne
minutes of the meeting of Septel-m:ber 20, 1938, w ere ordered correct-
ed as follows: In the caution "Garth Ferguson, Commissioner of
Agriculture"; page 10, section 7a, line 4, "deed" substituted for
"action".   For further corrections see Sec. 19 - "Resignations".

     4. Financial Report.

     The Business Agent filed financial reports for months of July,
August, and September, 1933.   The reports being cumulative, the
report for Septem-ber was ordered recorded in the minutes.   The
report reads as follows:



             Statement of Income and Expenditures
                   Month of September 1938



Previously
Reported



Current
Month



Fiscal
Year
to Date



General Fund Income
  Fed. Appr.-Morrill-
      Nelson
  Vocational Ed. Board      3,036.53
  State ApPro.-Sum.School   8,000.00
  Special Agr. Appro.       4,000.00
  State Appro.-General     81,417,39
  Bldgs. Revenue Bond &
     Operating Fund         1,883.35
  State Appro.-Repairs to
     Buildings              3,533.48
  Federal Appro.-Bankhead-
     Jones
  Student Fees              1,312.87
  Student Fees - Sum.Sch.  61,760.49
  Student Fees - U.H.S,        40,00
  Student Fees - El.Tr.Sch.(   20.00
  Student Fees - Un.Exten. 2,479.03
  Misc. Receivts              934.10
  Rentals                       90.00
  Mlents Dormitories        1,734.75



6,118.33
3,035.76

2,000.00
57,407.88

20,490.80

   514.35

 3,971.66
 90,094.76
   126. 60
 3,990.00
 3,460.00
   754.32
 1,451.82
   165.00
 5,493.80



6,118.33
  6,072.29
  8,000.00
  6,000.00
138, 825.27

22,374.15

  4,047,83

  3, 971.66
  91,407.63
  61,887,09
  4,030.00
  3, 480. 00
  3, ~335.35
  2,38b. 92
    2 55 .00
  7,228,55




 





3.



Library Equipment-Appr.
Sci.&Lab. Equip.-Apnr.
Engineering Equip.-Appr.
          Total



    227.50
  1,323.45
    604. 96
172,397,90



  3,555.50
  1,755.15
  1,772.35
206,158.08



3,783.00
3,078.60
2,377.31
378,555.98



Expenditures
  Instruction             117,006.88
  Adm.,Expense & Maint.     51,505.63
  Additions and Bettermilents 1,198.16
                Total     169,210.67
  Excess of Income over



Expenditures



Patterson Hall Income
Board
Misc, Rieceipts
Room Rent-Summer School _
                Total

Expenditures
  Expense
  Additions and Better.:ments
                Total
  Excess of Income over Ex-
    penditures



83,276,82
32,407.05
  6,569.69
122,253.56



2,687.23      83,904.52


   84.08      14,304.00
   5.00          3.60
1,421.30
1,510.38      14,307.60


2,783.53       1,940.78
                 158.50
_2,783.532,099.28

(l,273.15)    12,208.32



General Fund Income        173,908.28
General Fund Expenditures  172,494,20
Excess of General Fund
   Income over Expend.       1,414.08
 Excess of Expend. over Re-
   ceipts for General Ledger
   accounts                (48,519.99)
   Accounts Payable           3,912.24
 Excess of Receipts over
   Expend. for the fiscal
   year to date - General
   Fund                    (5108.15)
   Excess of Receipts over
   Expend. for the fiscal
   year to date-General Fund
   Cash in Bank July 1, 1938-
   General Fund
   Cash in Bank September 30,
   1938-General Fund

Experiment Station Income
  Hatch-Federal Appro.       3,750.00
  Milk and Butter-Cash Rec,  2,000.14
  Beef Cattle Sales            125.00
  Dairy Cattle Sales           525.C0
  Sheep Sales                  356.98
  Swine Sales                  364.75
  Poultry Sales                252.23



220,465.68
124,352.84

96,112.84



27,080.04
(5.228.16)



977.54
39.00
7 5.00

881.31
116.29



200,283.70
83,912.68
  7,767.85
291,964,_

86, 591.75


14,388.08
      8.60
  1,421.30
  15,817.98


  4,724.31
    158,50
_4,882.81

10,935.17

394,373.96
296,47 .04

97,526.92



(21,439.95)
(9.140.40)



_117 964 72    66 946 57
    ,~~~        a__...... _



66,946. 57

82,428.52



149,375.09_



3,750. 00
21977.68
  164.00
  600.00
  356.98
1,246.06
  368.52




 






4.



Farm Produce Sales           39.95
Horticultural Sales         403.20
Seed Test                    83.75
Seed Inspection           3,292.18
Rentals                     264,34
Miscellaneous                28.89
Fertilizer-Fees           3,018.75
Public Service - State Ap. 3,269.12
Public Service-Misc.Rec.      96.50
Feeding Stuffs-Fees       8,413.22
Adams-Fedoral Appro.       3,750.00
Serum-Sales                 457.14
Serurni-Virus Sales          16.95
Serum-Supply Sales             6.45
Horticultural Appro.         666.35
State Appro.              9,192.31
Creamery-License Fees     8,213.00
Creamery-Testers License   1 898.66
Creamery-Glassware Tested    101.46
Robinson-State Appro.      1,783.05
Robinson-Misc. Receipts      658.09
West Ky.-State Appro.      2,283.16
West Ky.-Misc.Receipts       793.59
Purnell-Federal Appro.    15,000.00
Barnkhead,-Jone*-Fed;Appre. 17,267.69
Nursery Inspect.St.Anpro.    478.32
Nursery Inspection-Fees      210.00
                  Total     89,060.22

Expenditures
Expense                   56,632.11
  Additions and Betterments_
                  Total     56,632.11
  Excess of Income over Ex-
    penditures              32,428.11
  Accounts Payable          (7,534.97)
  Excess of Receipts over Ex-
    penditures for General
    Ledger accounts          7,098,94
  Excess af Receiots over
    Expenditures            31,992.08
  Excess of Receipts over
    Expenditures for the fis-
    cal year to date-Experiment
    Station
  Cash in Bank July 1, 1938-
    Experiment Station
  Cash in Bank September 30,
    1938-Experiment Station



  121.35
  210.05
  28.75
2,230.97
   94.67
   16.67
2,500.00
1,491.64

4,595.93

  297.77
    7.80
    .20
  537.02
3,784.75
  104.00
  130. 50
  52.63
  431.78
  275.14
  190.88
  442.91



  475.00
20,109.55


31,252.48
   71.54
31.324.02



(11,214.47)
(1,319.01)



  161.30
  613.25
  112. 50
5,523.15
  359.01
  5. 56
5,518.75
4,760.76
   96. 50
13,009.15
3,750.00
  754.91
    24.75
    6.65
 1,203.37
 12,977.06
 8,317.00
 2,029.16
   154.09
 2,214.83
   933.23
2,474.04
1,236.50
15,000.00
17,267.69
   478.32
   685 00



87,884.59
    71.54
87,956.13

21,213.64
(8,853.98)



4.089,64   11.188.5B



J8L443.84)



23,548,24



23,548.24

31,.519.75



- 55.2067.99 _




 






5.



Extension Division Income
  Federal Bankhead-Jones
  Federal Smith-Lever
  Federal Supplementary
  Federal Capper-Ketcham
  Smith Lever, State
  County and Other
               Total



Expenditures
  Expense
  Excess of Income over
     Expenditures



202,585.34
74,154.38
  6,636.39
  18,400.48
  20,196.23
  3,777.88
325,750.70



106.776. 82



218,973.88



         202,585.34
         74,154.38
            6,636.39
            18,400,48
9,803.77  30,000.00
1,724.50   5.502.38
11.528,27 337.278.97



58.792.90 165,569.72



(47,264.63)1   09,25



Excess of Income over Ex-
  pend, for the fiscal
  year to date-Extension
  Division
Cash in Bank July 1, 1938-
  Extension Division
Cash in Bank Sentember 30_1938-
  Extension Division



Trust Fund Income
  Student Loan Fund
  Student Notes Paid
      Total Receipts

Expenditures
  Student Notes

  Excess of Receipts over
    Expenditures



171,709.25

  2,688.11



174,397.36



540.60
603.42



1.00
69.00



541.60
671.42



1,144.02         69.00     1,213.02


                 50.00        50.00


1 144.02         19.00     1d163.02



Excess of Receipts over Ex-
  penditures for the fiscal
  year to date-Trust Fund
Cash in Bank July 1, 1938-
  Trust Fund
Cash in Bank September 30-
  1938-Trust Fund



1,163.02

9,578.17



10.741.19



Summary
  General Fund Income
  Experiment Sta. Income
  Extension Div. Income
  Trust Fund Income
           Total



173,908.28
89,060.22
325,750.70
    540,60
589,259.80



220,465.68
20,109.55
11,528.27
      1.00
252,104.50



394,373.95
109,169.77
337,278.97
    541.60
841,364,30




 







6.



General Fund Expend.
Experiment Sta. Expend.
Extension Div.Expend.
             Total



172,494.20
56,632.11
106,776.82
335.903.13



124,352.84
31,324.02
58,792.90
214,469.76



296,847.04
87,956,13
655,56972
550,372.89



Excess of Income over Ex-
  penditures



253,356.67



37,634.74 290,991.41



Excess of Expenditures over
  Recei;Dts for General Ledger
  accounts                 (41,421.05)



Accounts Payable



(11,447.21)



Student Loan Fund Notes



603.42



31,169.68

(6,547.17)

    18.00



(10,251.37)

(17,994.38)

   621.42



Excess of Receipts over Ex-
  penditures for the fiscal
  year to date - Combined
  Fund



201.091.83



62. 275. 25



263.367.08



Excess of Receipts over Es-
  penditures for the fiscal
  year to date - Combined Fund
Cash in Bank and on hand July 1,1938-
  Combined Fund
Cash in Bank and on hand September 30,
  1938-Conmbined Fund



263,367.08

128X414,55_

391,781.63



Abstract of item shown on Statement
of Income and Expenditures as "Excess
of Expenditures over Receipts for Gen-
eral Ledger accounts $10,251.37"



Debit



Accounts Receivable



Credit



11,455.63



Sundry Accounts



21 707 00
21,707.OQ
11,455.63
10,251.37



11,455.63




 






7.



     5. Requisition Committee Report.

     The Requisition Committee filed written report of its action
each week from September 15, 1938, to October 26, 1938.    The report
showed orders made by the Business Office on authority of the Requi-
sition Committee in the manner prescribed by the Board of Trustees
and State Laws, running from No. 1882 to No. 3360.    The report
was examined and, on motion and second, the orders named therein
were ratified and anproved and payments on said orders were au-
thorized and approved.


     6. Handling Athletic Funds.

     On motion and second, duly passed, the system of handling
funds received from athletic events and disbursement thereof as
presented by the President and Business Agent was approved and au-
thorized,   The plan as adopted by the motion is stated as follows:


                     HANDLING ATHLETIC FUNDS

          Receipts from the Athletic Department from sale of
     tickets, etc., shall be reported and remitted to the
     Business Office as collected by the department.     After
     uayment of and deduction of that portion due on contract
     to the opposing team, including pre-game expense, and
     deduction of the amount collected for Federal tax, the bal-
     ance is to be remitted to the State Treasurer for credit
     to College Revolving Fund.    The amount received from
     games played at other colleges, after the deduction of
     expense, is to be remitted to the State Treasurer in manner
     as above stated.

          All collections for the Athletic Department of stu-
     dent fees shall be credited to "Grants in Aid account",
     Organizations Fund Ledger.    From the Grants in Aid ac-
     count,payment of the board and other team expense may be
     made, as well as the balance due on Mr. C. A. Wynne's sal-
     ary, and all unpaid accounts from activities of previous
     years .


     7. Investments.

     The following report was miade by the Business Agent:

          "I submit herewith memorandum of investment in Gov-
     ernment Bonds of the Peabody Fund.   As will be noted from
     this statement, the bonds were bought at a premium,    In-
     come from the investment of this fund for last year was
     used to pay the -, remlum on    the bonds -purchased.




 






8.



               "There is about $10,000.00 in the Student Loan
          Fund that is not invested and not on deposit at in-
          terest in a bank.   I have not been able to find sat-
          isfactory investment of this fund unless it be made
          in Government Bonds."

     On motion and second the investment of the Peabody Fund as
shown by memorandum copied below was approved.



              FIRST NATIONALBANK & TRUST COMPANY
                     Investment Department
                        Lexington, Ky.

     Peabody Fund                                 10/7/38
     University of Kentucky
     Lexington, Ky,


     We take pleasure in confirming purchase for your account,
     as brokers:



Quantity           Description        Price   Amount   Cmor- Ttal

                                      _____  _ _______ _  Sion _

$40,000  U.S.Treas.2.1%l950/52        102   40,800.00   .00  0,825.00
         Interest accrued to date                               58 33
                                                            1,883.33
                       @10M each,
         Bond Nos.2586F/9K/both in-
         clusive, with coupons due
         3/15/39 and subsequently
         attached.


     On motion and second, all Student Loan funds not now invested
both in open bank account and on interest deposit in the First Na-
tional Bank and Trust Company were ordered invested in government
bonds,  The funds now on interest in bank are to be invested at the
end of the present interest bearing Deriod.


     8. Audit.

     The Attorney General in a recent opinion given to Governor
A. B. Chandler stated that it is the duty of the. Department of Fi-
nance to investigate and audit those institutions in which the
State has an interest, including state educational institutions,




 





9.



     The Business Agent reported audit of University accounts as
follows:


          An audit of University accounts has been made through
     the office of State Inspector and Examiner, I. Nat B.
     Sewell.   The audit was made by W. N. VanHoose and Ike
     Nooe of the Division of Accounts and Control; J. I. Demp-
     sey from the Treasurer's office; A. C. Zubrod and Mir. Elder.
     The accountants were at work on the audit for two weeks and
     three days, part of them all the time and some of them
     for Dart time,   Tuesday of this week Mr. Van Hoose   and
     Mr, Nooe  returned to make somle additional checkings
     and I am informed that the accountants are making report
     to Mr. Sewell early next week.

          The audit covered by these men was for a five year
     period beginning with July 1, 1933.    They stated that
     a very close audit was made of the years ending June 30,
     1937 and June 50, 1938.    Some suggestions were made that
     I think will be of value to use in future accounting.
     From statements made by the accountants, they found our
     books and accounts to be in balance and all collections
     propDerly accounted for.

          Mr. Sewell came to the University and made insnec-
     tion of new buildings on the Campus. He made sug-
     gestions of importance in regard to inventory and ap-
     praisement.


     The Business Agent stated further:

          The accounting in the Business Office is done in
     compliance with and by orders of the Board of Trustees
     as to the handling of' Federal funds, P. W. A. funds,
     Trust funds, Student funds and miscellaneous collections
     and in accord with Federal laws, as well as State laws.
     All state appropriations and revolving funds; that is,
     collections sent to the State Treasurer by the Universi-
     ty, are disbursed through the State Department of Fi-
     nance,

          The State Department of Finance allows the Uni-
     versity a petty cash fund of $5,000.00.    This is alto-
     gether inadequate tor expenditures that must be made
     through petty cash by the University.    The result is
     that the ,etty cash fund is always overdrawn and at times
     largely overdrawn.   That is due almost altogether to
     payment of cash Day rolls to Eborers on the Camous and at
     the Experiment Station fields.

          At all times I have kept in touch with President
     McVey in regard to Dayments made that overdraw the
     petty cash fund.   At no time have these oayments been
     made from funds that are to be reported to the State




 





10.



     Treasurer nor have these payments been made from Trust
     or Student funds.   There has been a surplus in the
     University Treasury arising from funds not submitted to
     Frankfort which surplus is available for operating ex-
     pense and from which such advances have been made.


                               (Signed) D. H. Peak
                                         Business Agent



     9. Payments on Men's Dormitories Lease.

     The Business Agent stated that by order of the Board of Trus-
tees renewal and revision of the lease with Security Trust Compa-
ny on Men's Dormitories was made and payment from Detty cash of
the rent due September 1, 1938, $610.00 was ordered, that payment
made by the Business Agent was anproved, and he was admonished that
payments under the lease should be made nromptly when due.


     10. College Catering Company Inventory.

     The President stated that the College Catering Company had
presented an inventory of equipment as required by contact.   The
President discussed with the Committee several features and items
in the inventory.   He said that he had submitted the inventory to
Dean Draham for examination as to correctness of the items thereon
and the Drice thereof.   This action of the President was approved,
and action by the Committee on the inventory was deferred pending
report by Dean Graham.


     11. Wilson and Harbison Attorney Fee Allowed.

     The bill to Wilson and Harbison, copied below, was apDroved
and ordered paid from P. W. A. funds Docket Ky-1305-F.


                            Lexington, Ky. 16 September, 1938

          University of Kentucky............ Dr.,
          (Att. Col. James H. Graham)


          Legal services: Preparation of Resolutions and
          Minutes of Board of Trustees for meeting of
          August 3, 1938, for the University of Kentucky's
          financing of PWA Docket Ky-1305-F ............  . 8b0O.00.



(.Signed) Jamies H. Graham.




 




II.



     12. Grants,

         a, Haggin

     President McVey stated that he called on Mrs. Haggin in regard
to the Margaret V. Haggin Donation to the University of Kentucky,
but that he did not receive information as to status of the gift,
sufficient for report at this meeting.


         b. Hayden

     President UMcVey reported that he had endeavored through Mr.
Frank H. Rickebson to secure for needy University of Kentucky stu-
dents help from      the Charles Hayden Foundation.   The result
of the effort is shown in the following letter:



                  CHARLES HAYDEN FOUNDATION
                       25 Broad Street
                          NEW YORK


                                     October 20, 1938



     Dr. Frank L. MicVey, President
     University of Kentucky
     Lexington, Ky.


     Dear Sir:

          Mr. John R. Dillon of Hayden, Stone & Co., informs
     me that a friend of his, Mr. Frank H. Ricketson, Jr.,
     of Denver, Colorado, has asked him to endeavor to obtain
     assistance from the Charles Hayden Foundation for relief
     of needy students of the University of Kentucky.

          The Charles Hayden Foundation was incorporated to
     help needy boys and young maen through boys' clubs as
     such.   M,4r. Hayden's idea was to get the boy off the
     street rather than higher education.   We have contrib-
     uted a limited number of scholarships to certain colleges,
     but we have found it necessary to limit our activities
     to New York City and Boston because we would not have
     enough money to go around if everyone who made a')xlica-
     tion were given assistance. We regret exceedingly, there-
     f ore, that we cannot give any aid to the University of
     Kentucky students.

                           Sincerely yours,
     CC:.Lr. Marcus Redwine
        Winchiester, Kentucky    (Signed) Arthur J. Ronaghan
        Mr. John R. Dillon               Executive Vice President




 



12.



    13. Fire Escapes

    President MIcVey presented the following letter from the State
Division of Insurance:


                   COIvThMON.-iEALTH OF KENTUCKY

              DEPARTITENT OF BUSINESS REGULATIONS
                    DIVISION OF INSURANCE

               Fire Prevention & Rates Section


                                      Frankfort, Kentucky
                                        October 7, 1938

     Pres. Frank MlcVey
     University of Kentucky
     Lexington, Kentucky

     Dear Sir:

          An inspector from this Department recently made
     an inspection of several buildings     occupied by
     State University and makes the following recommenda-
     tions:

          Natural Science Building should have fire
          escape and change doors to open outward;
          Alumni Hall should have doors changed to
          open outward; Frazee Hall should have fire
          escape Dlaced on buildings and doors changed
          to open outward; Mechanical Hall should have
          doors changed to open outward; Neville Hall
          should have doors changed to open outward;
          Health Building fire escape should be placed
          and rear basement doors should be changed to
          open outward.   Kastle Hall sub-basement doors
          to be changed to open outward; Agriculture Build-
          ing should have fire escape placed on it as it
          is practically a four story building with only
          one exit.

          i trust that these recommendations will be complied
      with without delay and so notify this Denartment.

                                 Yours very truly,

                                    DIVISION OF INSURANCE
                                    Fire Prevention & Rates Section

                                    (Signed) D. P. Vandivier
                                        Supervisor
      P.S. Send blue prints of fire escapes to Fe aporoved hefore
           erecting.                   D.P.V.




 



13.



     On motion of At% Park, seconded by Mr. Cleveland, the im-
provements necessary to comply with the requirements set up by
the Division of Insurance were authorized to be made when funds
may be available for payment therefor.


     14. Gas Line - Right of Way.

     Right of way for gas line over Experiment Station property
was granted to the Central Kentucky Natural Gas Company as set
out in agreement hereinafter copied, the execution of which
agreement of October 24, 1938, by Richard C. Stoll, Chairman of
the Executive Committee, was authorized, ratified and approved.
The agreement was ordered to be recorded in the Fayette County
Kentucky County Clerk's Office.

     The agreement ordered copied in the Minutes reads as fol-
lows:


          THIS AGREEMENT made and entered into this 24th
     day of October, 1938, by and between UNIVERSITY OF
     KENTUCKY, a corporation, whose principal office is in
     Lexington, Kentucky, party of the first part, and
     CENTRAL KENTUCKY NATURAL GAS COMPANY, a Kentucky cor-
     poration, whose principal office is in Lexington, Ken-
     tucky, party of the second part,


                        WITNESSETH:

          1. Party of the first part hereby grants unto the
     second party, its successors and assigns, the right
     to lay, maintain, operate and remove a pipe line for
     the transportation of gas over and along and across the
     property of first narty and now used by the Kentucky
     Agricultural Experiment Station, which said pipe line
     shall begin on Lafayette Avenue in Lexington, Kentucky;
     thence along the eastern boundary of the fkst party's
     Experiment Station property to a point opposite Cooper
     Drive; thence in a Southwesternly direction along the
     said Experiment Station property to the gas regulating
     station on the Lexington-Nicholasville Turnpike road,
     the exact location of said pipe line, however, shall
     be subject to the aoproval of and the pipe shall be
     laid at such depth as the director of the Kentucky
     Agricultural Experiment Station shall determine, and
     such location and depth shall be approved by him before
     said pipe line is laid,

          2.Second party shall have the right to go upon
     the land of Kentucky Agricultural Experiment Station
     for the purpose of laying, maintaining, repairing and
     removing such pipe line, but if any maintenance or
     repairs shall require any excavation then the director
     of the Kentucky Agricultural Experiment Station shall




 




14.



be notified of the intention of second party to enter
upon said land within a reasonable time before any
excavations are made.

     3. Second party agrees to pay to first oarty any
and all damages which first party may suffer by reason
of the layin-, maintaining, repairing, operation or
removal of such pipe line, and ta pay to first party any
and all damages which first narty might suffer by rea-
son of any damage done to the first party or to its
property by second oarty, or its employees who might
be upon the lands of first party for the purposes set
out in this agreement.

     In the event the parties hereto cannot agree upon
the amount of such damages, then this matter shall be
submitted to arbitration.   Each party shall select one
arbitrator and upon their failure to agree upon the
amount of damages, such two arbitrators shall select
a third arbitrator, and in the event they cannot agree
upon a third arbitrator the Judge of the United States
District Court for the Eastern District of Kentucky
shall select such third arbitrator and the decision
of a majority of the arbitrators shall be binding
upon the parties hereto.

     4. Second narty agrees to furnish to first oarty,
or any of its departments, gas from the pipe line to
be laid under the terms of this agreement, which said
gas shall be furnished under such regulation and for
such price as the proper authority in the State of
Kentucky shall from time to time determine; but as a
Dart consideration of this agreement the cost of such
gas shall not be greater than that paid by the persons
in the City of Lexington taking the same or similar
service.

     5. As a consideration for this agreement second
party has paid to first party $100.00 in cash, the
receipt of which is hereby acknowledged.

     6. This agreement shall continue for a period
of twenty-five (25) years.   It shall continue in ef-
fect thereafter from year to year until either party
shall notify the other party of its intention to can-
cel this agreement, given at least six months prior
to October 1st in any year, and upon the giving of
such notice by either party this agreement shall
terminate.   A notice given by one narty or the other
mailed to it at Lexington, Kentucky, and sent by regis-
tered mail shall be a sufficient notice under this
agreement.

     7. At the termination of this agreement second
party may remove the ripe line as herein nrovided but




 





15.



it shall restore the land from which the pipe is taken
in good condition and shall fill all trenches in which
the pipe was laid so that the top thereof shall be
level with the remainder of the land adjacent thereto.

    8. The words "second party" and "Central Kentucky
Natural Gas Company" shall be construed to mean Central
Kentucky Natural Gas Company a-id its employees, agents
or servants.

     IN WITNESS WHEREOF the University of Kentucky has
hereunto set its hand by Richard C. Stoll, Chairman
of its Executive Committee and has caused his act to
be attested and its corporate seal affixed by D. H.
Peak, its Secretary, and Central Kentucky Natural Gas
Company has hereunto set its hand by T. J. Tonkin, Jr.,
its Vice President, and has caused his act to be at-
tested by F. A. Jesser, its Secretary, at Lexington,
Kentucky the day and year first above mentioned.


                        UNIVERSITY OF KENTUCKY

              (Signed) By Richard C. Stoll
                           CHAIRMAN OF EXECUTIVE COWvITTEE
ATTEST:

D. H. Peak
SECRETARY


                         CENTRAL KENTUCKY NATURAL GAS CONITANY

                         By  T. J. Toakin, Jr.
                             VICE PRESIDENT

ATTEST:

F. A. Jesser
Assistant Secretary




STATE OF KENTUCKY.
                    SS
COUNTY OF FAYETTE.

     I, Hilda R. Crain, a Notary Public in and for
Fayette County, Kentucky, do hereby certify that the
foregoing agreement between University of Kentucky
and Central Kentucky Natural Gas Company was Droduced
to me in my office in the county and state aforesaid,
and was acknowledged by Richard C. Stoll, Chairman
of the Executive Committee of the University of




 







16.



Kentucky to be the act and deed of the University of
Kentucky, and in my presence his act was attested
and the corporate seal of the University of Kentucky
affixed thereto.

     Whereupon the said agreement and this my cer-
tificate are certified to the Drover office for
record.

     Given under my hand and seal of office this
the 25th day of October, 1938.

My commission expires July 28, 1942.


                         (Signed) Hilda R. Crain
                                NOTARY PUBLIC, FAYETTE CO.
                                         KY.


STATE OF KENTUCKY.
                   Ss
COUNTY OF FAYETTE.


     I, Ida Lee Odor, a Notary Public in and for Fay-
ette County, Kentucky, do hereby certify that the fore-
going agreement between the University of Kentucky and
the Central Kentucky Natural Gas Company was inroduced
uo me in my office in the county and state aforesaid,
and was acknowledged by T. J. Tonkin, Jr., Vice President
to be the act and deed of Central Kentucky Natural Gas
Company, and in my oresence his act was attested and the
corporate seal of Central Kentucky Natural Gas Company
affixed thereto.

     Whereupon