xt759z908x32 https://exploreuk.uky.edu/dips/xt759z908x32/data/mets.xml Lexington, Kentucky University of Kentucky 19350931 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, 1935-09-oct31-ec. text Minutes of the University of Kentucky Board of Trustees, 1935-09-oct31-ec. 1935 2011 true xt759z908x32 section xt759z908x32 












     Minutes of Meeting of the Executive Committee of the Uni-
versity of Kentucky, October 31, 1935.


     The Executive Committee of the Board of Trustees of the Uni-
versity of Kentucky met in President lv.cVey's office at the Uni-
versity of Kentucky, October 31, 1935, at 10:30 a.m.     The mem-
bers of the Committee present were Judge Richard C.. Stoll, Joe B.
Andrews, Judge Robert G. Gordon and R. Miller Holland.     Presi-
dent Frank L. McVey and Secretary D. H. Peak were also present.


     1, Minutes Approved,

     The minutes of the meeting of the Lxecutive Committee of
July 18, 1935, were approved.


     2. Proceedings of Meeting of September 24, 1935, Ratified.

     A meeting of the Board of Trustees of the University of Ken-
tucky was scheduled for September 24, 1935.    The following mem-
bers (not sufficient in number to make a quorum) were present:
Judge Richard C. Stoll, Chairman of the Executive Committee, Louis
Hillenmeyer, John S. Cooper, R. Miller Holland, Dr. George H. Wil-
son, James R. Rash, 1T. C. Hanna; President Frank L. McVey and
Secretary D. H. Peak.    It was decided to proceed with the usual
order of business, and the record of the proceedings was prepared
under the heading, "Minutes of the Quarterly Meeting of the
Board of Trustees, University of Kentucky, September 24, 1935"1,
which record was submitted to this meeting, and the following ac-
tion thereon was taken:

     The record of the proceedings of the meeting, September 24,
1935, of members of the Board of Trustees of the University of
Kentucky, is hereby approved and ratified as the action of the
Executive Committee of the University of Kentucky, and it is or-
dered to be recorded in the permanent records of the Minutes of
the Executive Committee.


     3. Financial Report.

     The financial report for Septemnber was received and ordered
to be recorded in the iitlnutes.  It reads as follows:




 






2.



                                EXHIBIT "B"


Statement of Income and Expenditures
      Mlonth of September 1935



Previously
Reported



Current
Month



Fiscal
Year
To Date



General Fund Income
Vocational Ed. Board      2,389.96
  Int. on P.eabody Endow.
  State Appro.-Back Yala-
    ries                   71,100.00
  State Appro. - Sum.Sch.   9,000.00
  Special Agr. Appro.
  State Appro. - General   66,159.50
  Student Fees               740.04
  Student Fees - Sum.Sch.  54,421.12
  Student Fees - Un.High
    School                    238.50
  Student Fees - El.Tr.Sch.    20.00
  Student Fees - Un. Exten. 2,946.02
  Miscellaneous Receipts    5,970.08
  Rentals                     378.30
  Men's Dormitories         1,142.10
            Total         214,505.662



1,894.98
1,000.00



4,614.76
68,892.96
92,102.88
3,080.00

  4,380.00
  3,660.00
    281.90
  1,092.84
    160.00
  5,800.25
186,960.57'



4,284.94
1,000.00

7' ,100.00
  9,000.00
  4,614.76
135,052.46
92,842.92
57,501.12

  4,618.50
  3,680.00
  3,227.92
  7,062.92
    538.30
  6,942.35
401,466.19



Expenditure s
  Instruction              95,685.79
  Administration, Expense
    and Maintenance        38,330.43
  Additions and Better-
    ments                   2,936.25
            Total      . 136,952.47



65,959.79

17,210.38

   431.00
83,601.l17



161,645.58

55,540.81

  3,367.25
220.553.64



Excess of Income over Ex-
  penditures



77 .553.15



103.359.40



180,912.55



Patterson Hall Income
  Board                        65.00
  Miscellaneous Receipts      175.81
  Room Rent - Summer School 2,089.00
                 Total      2,329.81



Expenditures
  Expense

  Excess of Income over Ex-
    penditures



2,673.77



12,177.50



12,242.50
   175.81
 2,089.00



_  - 12,177.50  14,507531


    ' 1,936.21 6,699



(4,6       10_4.2         9. 897 33_



(343,96)



10.241.29



9,897.33




 






3.



General Fund Income        216,83:
General Fund Expenditures  139,62E
  Excess of General Fund
  Income over Expend.     77,20'
  Accounts Payable liqui.  (71,19]
  Excess of Expend. over
  Receipts for General
  Ledger accounts         (10,357

  Excess. of Receipts over
  EXpend. for the fiscal
  year to date - General
  Fund                     (4,34(
  Excess of Receipts over
  Expend. for the fiscal
  year to date - General
  Fund
  Cash in Bank July 1, 1935
  - General Fund
  Cash in Bank September 30, 1935
  - G-eneral Fund



Experiment Station Income
Hatch-Federal Appro.
  Milk and Butter - Cash
    Receipts
  Beef Cattle Sales
  Dairy Cattle Sales
  Sheep Sales
  Swine Sales
  Poultry Sales
  Farm Produce Sales
  Horticultural Sales
  Seed Test
  Seed Inspection
  Rentals
  Miscellaneous
  Fertilizer - Fees
  Public Service - State
    Appro.
  Public Service - Misc.
    Receipts
  Feeding Stuffs - Fees
  Adams - Federal Appro.
  Serum - Sales
  Serum - Virus Sales
  Serum - Live Stock Sales
  Serum- Supply Sales



5.43
6, 24



199,138.07
85.537.38



415,973.50
225.163,62



).19  113,600.69  190,809.88
1.63)              (71,191.63)


7.65)  10,079.66      (277.99)




0.09) 123,680.35   119,340.26



119,340.26

  5.837.75



125,178.01



3,750.00

1,470.04

  190.00
  181.02
  830.67
  677.80
  628.67
  84.30
  121.00
3,112.29
2,314.34
  247.73
6,055.21

3,493.41

   10.00
7,654.01
3,750.00
  478.86
  43.70
  117.45
  48.10



735.56
  95.67
  75.00
  20.00

  125.37
  57.20
  115.45
  110.50
1,489.54
119.67
   22.20
2,185.00

1,843.04


3,735.95

  126.53
  11.40

    5,00



3,750.00

2,205.60
   95.67
   265.00
   201.02
   830.67
   803.17
   685.87
   199.75
   231.50
4,601.83
2,434.01
  269.93
8,240.21

5,336.45

    10.00
11,389.96
3,750.00
   605.39
   55.10
   117.45
   53.10




 







4.



  Serum - Misc. Receipts
  State Appropriation
  Creamery - License Fees
  Creamery - Testers Lic.
  Creamery - Glaseware Test.
  Robinson - State Appro.
  Robinson - Misc. Receipts
  West Ky. - State Appro.
  West Ky. - Misc. Receipts
  Purnell - Federal Appro.
  Nursery Inspection -
    State Appro.
  Nursery Inspection - Fees
           Total

Expenditures
  Expense
  Additions and Betterments
           Total

  Excess of Income over Ex-
    penditures
  Accounts Payable - liqui-
    dated
  Excess of Receipts over



      .25
14,545.46
7,927.50
2,289.95
   229.40
 1,458.20
   502.75
 2,279.98
 2,800.28
 15,000.00

   510.35
   225.00
83,027.72


48,785.49
_ 438.81



33,803.42



  Expenditures for General
  Ledger accounts          1,594.00
Excess of Receipts over Ex-
penditures              35,397.42


Excess of Receipts over Ex-
penditures for the fiscal
year to date - Experiment
Station
Cash in Bank July 1, 1935 -
Experiment Station
Cash in Bank September 30,
1935 - Experiment Station



Extension Division Income
  Federal Smith-Lever
  Federal Add. Co-op.
  Federal Supplementary
  Federal Capper-Ketcham
  State Smith-Lever
  County and Other
               Total



74,154.38
15,500.00
26,545.52
18,400.49
32,045.30
3,984.12
170,629.81



895.88
177.00
213.00
  120.79
1,142.99
  184.27
1,904.26
   46.83


   314.44
   245.00



      .25
15,441.34
8,104.50
2,502.95
   350.19
 2,601.19
   687.02
 4,184.24
 2,847.11
 15,000.00

   824.79
   470.00



16,117.54   99,145.26


23,787.57   72,573.06
   118.15       556.96
23,905.72   73130.02


(7,788.18)  26,015.24

(3,150.32)  (3,150.32)


8,419.70   10,013.70

(2,518.80)  32,878.62





             32,878.62

             (23,296,47)

             9. 582. 15


             74,154.38
             15,500.00
             26,545.52
             18,400.49
15,125.64   47,170.94
   127.74   -4111,86
15,253.38  185,883.19




 






5.



Expenditures
  Expense



61,173.20



40,422.69



101,595.89



Excess of Income over
Expenditures



109. 456.61



(25 .169-31)



Excess of Income over
Expenditures for the
f seal year to date -
.xtension Division
Cash in Bank July 1, 1935
  ExItension Division
Cash in Bank September 30,
  1935 - Extension Division



Trust Fund Income
  Student Loan Fund
  Student Notes Paid
           Total Receipts    -

Expenditures
  Expense

  Excess of Receipts over Ex-
    penditures



543.20
518.30
1,061.50



6.00



1,055.50



Excessof Receipts over
  Expenditures for the
  fiscal year to date -
  Trust Fund
Cash in Bank July 1, 1935 -
  Trust Fund
Cash in Bank September 30,
  1935 - Trust Fund



Summary
  General Fund Income
  Experiment Station Inc.
  Extension Div. Income
  Trust Fund Income
              Total

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



216,835.43
83,027.72
170,629.81
    543.20
471,036,16



139,626.24
49,224.30
61,173.20
      6.00
250.029.74



199,138.07
16,117.54
15,253.38
    437.01
230,946.00



85,537.38
23,905.72
40,422.69



149,865.79



415,973.50
99,145.26
185,883.19
    980L 21
701,982. ff



225,163.62
73,130.02
101,595.89
      6.00
399 .895. 53



84 .287.30



437.01
183, 27
620.28



620.28



84,287.30

   303.82



84 ,a91.12



980.21
701.57
1.681.78



6.00



1,675.78



1,675.78

1,128.84

2,804.62-_




 







6.



Excess of Income over
  Expenditures



221,006.42



81,080.21  302,086.63



Accounts Payable - liqui-
  dated



(71,191.63)



(3,150.32)



(74,341.95)



Excess of Receipts over
  Expenditures f or General
  Ledger accounts



Student Loan Fund - Notes



(8,763.65)



518.30



Excess of Receipts over Ex-
  penditures for the fiscal
  year to date - Combined
  Fund                    141,569.44



96,612. 52



238,181.96



Excess of Receipts over Ex-
  penditures for the fiscal
  year to date - Combined
  Fund                                               238,181.96



Cash in Bank and on hand July 1,
  1935 - Combined Fund
Cash In Bank and on hand September
  31, 1935 - Combined Fund



(14,026.06)

224,155.90



Abstract of item shown on Statement
of Income and Expenditures as "Excess
of Receipts over Expenditures for Gen-
eral Ledger accounts 89,735.71"


                   Debit



Accounts Receivable



Credit



26,262.84



Insurance Paid in Advance 45.60



Sundry Accounts



16,481.53
16,527.13



26,262.84
16,527.13
9,735.71



18,499.36



183.27



9,735.71



701.57




 





7.



     4. Requisition Committee.

     a. Report

     The Requisition Committee filed written report of its action
each week from Septermiber 13, 1935, to October 12, 1935, inclusive.
The report showed that orders had been made by the Business Office
on the authority of the Requisition Committee in the manner pre-
scribed by the Board of Trustees and state laws, running from No.
1558 to No. 2644.   The report was examined and the orders named
therein were ratiied and approved and payments on said orders
were authorized and approved.

     b. Reaopointment

     The Requisition Committee, consisting of the Presid-ent, Bus-
iness Agent and Superintendent of Buildings and Grounds, was re-
appointed, the appointment to remain in effect until further or-
der of the Executive Committee or Board of Trustees.    This Requi-
sition Committee was authorized to act for the Board of Trustees
in making purchases for the University of Kentucky.    Its actions
shall be reported at meetings of the Board of Trustees or Execu-
tive Committee for approval.   Purchases shall be made by the Bus-
iness Agent on recommendation of the Requisition Committee in the
manner prescribed by the Board of Trustees and the laws of the
State of Kentucky.   The manner of handling requisitions and the
time of meeting may be fixed by the Requisition Committee.


     5. Report to State Budget Commission.

     The President presented the biennial report to the State
Budget Commission, together with a statement of requirements of
the University of Kentucky for the biennium beginning July 1, 1936.
The report consisted of a compilation of receipts and expenditures
for the biennium ending June 30, 1935, and second, a statement of
requirements for biennium beginning July 1, 1936, with request
for appropriations to meet the requirements.    The statement is
in words and figures as follows:


       BUDGET STATEMIEN  OF THE UNIVERSITY OF KENTUCKY
                             FOR
       CONSIDERATION BY THE LEGISLATIVE SESSION, 1936


TO THE STATE BUDGET COEVIISSIOiN:

Gentlemen:

     The statement of the needs of the University of Kentucky far
the Biennium, 1936-1938, is nresented in this memorandum for
your consideration.   This statement, which is handed you herewith,




 





8.



is made in the form of the state budget printed in the Acts of
the Assembly, 1932, chapter 25.

    The University consists of three different divisions.    The
first of these is the teaching division of the University, which
includes the seven collees of the institution, the summer ses-
sion and the Department of University Extension.

     The second division of the University of Kentucky has to do
with the needs of the agricultural experiment stations, located
at Lexington, Quicksand and Princeton, and the public service lab-
oratories.

     The third division is the agricultural extension work, which
is carried on through the cooperation of the state and the fed-
eral government.

     Before presenting the specific needs of the three divisions
of the University, I am calling your attention to several matters
which should be given careful thought in making the necessary ap-
propriations for the University and its associated work.

     (1) The high point in the amount received from the state for
the current expenses of the University was in the year 1930-31.
At that time the University received from the inheritance tax and
the millage tax $1,137,481.29.   The number of students enrolled
on October 15 that year was 3240.    In the year 1932-33 the re-
ceipts from the same source were $679,184.74, a decline of
$458,296.55 or 40%, add this current year the receipts have been
slightly larger.   The student enrollment October 15, 1935, was
3169.   This decline in revenue has forced the University to
economize in every direction, continuing the reduced salary rate,
cutting repairs to the zero point, and practically eliminating
the purchase of equipment and books.    The amount now asked for
operating the University is larger than the amount granted in
19.34.  In view of the increased enrollment, 11%, it is not as
large as it should be.    The purpose of the Board of Trustees is
to be as reasonable as possible in view of the needs.

     (2) The attendance of the University has increased markedly
in the past two years, necessitating some additions to the staff.
Only one other institution in the South shows a larger increase
over last year, and few institutions in the United States have
passed the University of Kentucky's percentage of increase. The
attendance is now within 71 of the highest attendance in the Uni-
versity's history, while the income is measurably less, 35%. The
need of a larger income thus becomes a very important matter.

     (3) The repairs to buildings in the form of upkeep, painting
and maintenance have been kept to the minimum point for several
years. The University has been able to take some advantage OS
the SPA funds of the federal government and in consequence 11
buildings have been painted.    The major repairs requiring money
for materials have not been made, because money was not available
to purchase the supplies.   An estimate of needed repairs in the




 





9 .



form of painting, exterior and interior, plumbing, roofing and
the like, amounts to approximately 860,000.

     (4) A new item appears in the budget requests this year.
It is an amortization charge.   The University has received a com-
paratively small sum for the construction of buildings.    In 65
years the total amount appropriated for buildings was but
*^l1,035,000 or less than 320,000 per year.  No request for build-
ings is being made of this Legislature, but buildings are needed
so application has been presented for federal grants and loans.
To cover the interest and payments charges will require a net
amount of $56,000.   This sum includes $20,000 of amortization
charges now paid on men!s dormitories and the buildings and
grounds warehouse.   The balance is 836,00O to meet the federal
requirements on the projected buildings.

     (5) Mich needed equipment should be provided for the Univer-
sity observatory and the library.   The astronomical observatory
to be of real value should have instruments amounting to $3,OOO.
No provision has ever been made for lighting fixtures in the new
library.   This item calls for 82000.   Tables, chairs and other
equipment are needed far the library to the extent of $7,000.



         BUDGET STATEMENT FOR THE UNIVERSITY OF KENTUCKY
                    FOR THE YEAR 1936-1937


     THE TEACHING DIVISION

         Consisting of seven colleges, the summer session
         and University extension.



Continued



Continued



a-l For the purpose of paying salaries and
    other expenses of maintenance and op-
    eration of the Division of Colleges
    of the University of Kentucky in the
    manner now authorized by law, or as
    may be hereafter authorized by law,
    to be paid monthly, the sum of ....   $817,606.00



b-l For the purpose of operating and
    maintaining the boarding and rooming
    departments, farms, athletic and stu-
    dent activities, for instructional
    equipment and supplies, and other
    necessary operating and maintenance
    expenses of the institution, there
    are hereby appropriated all fees and
    other operating receipts which shall
    be covered into the State treasury
    promptly after the close of each month
    and placed to the credit of the re-
    volving fund of the said institution.




 





10.



Withdrawals for the use and benefit
of the institution may be made from
the said revolving fund, maintained
in the State treasury, when and as
needed, upon requisition from the
governing authority of the institu-
tion properly approved by the Audi-
tor of Public Accounts.



c-i  Appropriation for special instruc-
      tion in agriculture, long standing
      appropriation   ......    .............. 30,000.00



Continued d-l



Asked in
previous
sessions



New



New



Appropriation for repairs, 1936-37..  30,000.00



e-l  Appropriation for summer school, an-
     nually, reduced to 89,000.



f-l   Amortization charges against build-
      ings.



_ 0,000. 00



56,000.00



g-l   Equipment - observatory and library.  12,000.00



THE EXPERIIvENT STATION



Continued h-l



Continued

Continued

Continued

Continued



i-1

J-1

k-i

1-1



There are hereby appropriated to the
Experiment stations of the University
of Kentucky all fees, earnings and
rentals and other operating receipts
of the various units as now, or may
hereafter be provided by law.

Maintenance of Experiment Station..

Public Service Laboratories .......

Western Kentucky Substation .......

Robinson Substation ...............



50,000.00

25,000.00

20,000.00

20,000.00



Continued



M-i



Nursery Inspection ................



THE AGRICULTURAL EXTENSION WORK



Continued n-i



Support of agricultural extension in
cooperation with federal government.

Required to offset Smith-Lever and
Capper-Ketchum funds. Authorized -
Acts of the Assembly 1916, Chapter
20, and Acts of the Assembly 1930,
Chapter 8.



Continued



2,500.00



$155,109.74




 




11.



                    The Agricultural Extension Division
                    of the University of Kentucky has been
                    required to greatly increase its work
                    in carrying out the purposes of the
                    Agricultural Adjustment Act.   This
                    has increased the cost of operation
                    and the State requires much addition-
                    al work.

                               (Signed)  Richard C. Stoll
                                         Chairman of the Execu-
                                         tive Committee of the
                                         Board of Trustees


                               (Signed)  D. H. Peak
                                         Secretary to the Board
                                         of Trustees


       BUDGET STATEMENT FOR THE UNIVERSITY OF KENTUCKY
                  FOR THE YEAR 1*47-1938


THE TEACHING DIVISION

          Consisting of seven colleges, the summer session
          and University extension.

Continued a-l   For the purpose of paying salaries and
                other expenses of maintenance and opera-
                tion of the Division of Colleges of the
                University of Kentucky in the manner
                now authorized by law, or as may be here-
                after authorized by law, to be paid month-
                ly, the sum of ..     ................ $817,606.OD

Continued b-i   For the purpose of operating and main-
                taining the boarding and rooming depart-
                ments, farms, athletic and student ac-
                tivities, for instructional equipment
                and supplies, and other necessary operat-
                ing and maintenance expenses of the in-
                stitution, there are h. reby appropri-
                ated all fees and other operating re-
                ceipts which shall be covered into the
                State treasury promptly after the close
                of each month and placed to the credit
                of the revolving fund of the said insti-
                tution.   Withdrawals for the use and
                benefit of the institution may be made
                from the said revolving fund, maintained




 





12.



in the State treasury, when and as needed,
upon requisition from the governing author-
ity of the institution properly approved by
the Auditor of Public Accounts.



c-l  Appropriation for special instruction
     in agriculture, long standing appropri-
     ation..................................



30,000.00



Continued  d-l   Appropriation for repairs, 1937-38..... 30,000.00



Asked in pre-
vious ses- e-l
sions



New



Appropriation for summer school,
annually, reduced to $9,000 ............ 10,000.00



f-l  Amortization charges against buildings. 56,000.00



T~iE EXPERIMENT STATION



Continued



Continued

Continued

Continued

Continued



Continued



g-1   There are hereby appropriated to the
      Experiment Stations of the Universi-
      ty of Kentucky all fees, earnings
      and rentals and other operating re-
      ceipts of the various units as now,
      or may hereafter be provided by law.



h-l   Maintenance of Experiment Station...

i-l   Public Service Laboratories ........

J-i  Western Kentucky Substation.

k-l   Robinson Substation ................



1-l   Nursery Inspection .................



50,000.00

25,000.00

20,000.00

20,000.00



2,500.00



THE AGRICULTURAL EXTENSION WORK



Continued   m-l



Support of agricultural extension
in cooperation with federal gov-
ernment ......... $155,109.74



Required to offset Smith-Lever and
Capper-Ketchom  funds.   Authorized
- Acts of the Assembly 1916, Chapter
20, and Acts of the Assembly 1930,
Chapter 8.

The Agricultural Extension Division
of the University of Kentucky has
been required to greatly increase
its work in carrying out the purposes
of the Agricultural Adjustment Act.



Continued




 






13.



                This has increased the cost of operation and
                the State requires much additional work.


                    (Signed)    Richard C. Stoll
                                 Chairman of the Executive Com-
                                 mittee of the Board of Trustees


                    (Signed)    D. H. Peak
                                  Secretary of the Board of Trus-
                                  tees



     6. Report of Budget to Council of Higher Education.

     The President stated that he is ready, as required by law,
to present to the Council of Higher Education the Budget Report
set out in item 5 above,   He was directed to write the Superin-
tendent of Public Instruction, James H. Richmond, in substance
as follows:

     Under the provisions of Article 11: Chapter 65, of Acts of
the General Assembly, 1934, institutions of the State are re-
quired to present their budgets for consideration by the Council
of Higher Education, pending the recommendation of these budgets
to the Budget Commission under Item c of Section 3 of Article 11,
which says to recommend to the State Budget Commission or other
proper authorities the budgets covering the needs of the five in-
stitutions.   I have been instructed by the Executive Committee
of the University of Kentucky to write you to say that the Uni-
versity is ready to present its budget for the coming biennium
whenever a meeting of the Council is called.

     7. Interest on Bonds.

 -  The Business Agent stated that, following up the collection
 of interest due by the State of Kentucky on Land-Grant Bonds (see
 item 6, Ifinutes of September 2,, 1935), he called on Attorney Gen-
 eral Wootton on October 24, 1935, and asked for information in
 regard to payment of the installments of interest due.     In an-
 swer the Attorney General later mailed copy of letter to the Com-
 missioner of Education which reads as follows:




 




14.



                               October 15, 1935


Mr. J. W. Studebaker,
Commissioner,
Office of Education,
Department of the Interior,
Vlashington, D. C.

Dear LMr. Studebaker:

               I have your letter of the 8th with ref-
erence to Federal land grant fund of 1862 to the State
of Kentucky for $165,000.00.

               Under the Kentucky Constitution, which
was adopted in 1891, that being the fourth Constitution,
the third having been adopted in 1850, it is provided
that certain monies set aside for school purposes shall
be evidenced by a bond of the Commonwealth of Kentucky
bearing interest at the rate of six per cent, payable
semi-annually.

                Section 4591a of the 1930 Edition, Ken-
tucky Statutes, which is an Act of the General Assembly
of 1897, provides:

                    "That the commissioners of the
     sinking fund be, and they are hereby, authorized
     and directed to issue to themselves as trustees
     of the Agricultural & MIechanical College of Ken-
     tucky and the State Normal School for Colored Per-
     sons of Kentucky, in the proportion hereinafter
     mentioned, a bond of the Commonwealth, bearing
     the date of July 1st, 1897, for $165,000.00,
     bearing interest at the rate of six per cent
     (6%), payable semi-annually; and said bond shall
     be a perpetual obligation of the Commonwealth
     and the interest thereon shall be a perpetual
     charge upon the treasury; and it shall be the
     duty of the auditor to regularly draw his warrant
     upon the treasurer in favor of the treasurer of
     each of said colleges on the 1st day of January
     and the lst day of July of each and every year,
     for the sum of $4,950.00 to pay said interest
     in the following proportions, to-wit: $627.75
     to the treasurer of the State Normal School for
     Colored Persons; 84,322.25 to the treasurer
     of the Agricultural & Mechanical College of
     Kentucky. "

                All of this interest has been regular-
ly paid by the State of Kentucky until July lst, 1935,
there being on that date due interest for six months,
and this is the interest complained of by the University




 




15.



    of Kentucky.

                    The last General Assembly of Kentucky
     failed to appropriate any money for the payment of this
     interest.   For that reason the Board of Finance has not
     set aside any sum out of which to pay this interest, and,
     because there has been no money set aside for the pur-
     pose, the Auditor of the State of Kentucky has refused
     to issue a warrant for its payment.    It is my opinion
     that both the Board of Finance and the Auditor of the
     State are within their rights in taking this action.
     The only remedy, as I see it, is to have the Legislature
     at its next session make the proper appropriation, as it
     is a debt which must be paid.

                                   Very truly yours,


                       (Signed)      Bailey P. Wootton
                                      Attorney C-eneral of Kentucky


     Further action was deferred to a later meeting of the Execu-
tive Committee or Board of Trustees.


     8. Inheritance Tax -- 1932 Salaries.

     Following directions given in item 5, Minutes of September
24, 1935, the Business Agent reported correspondence with Attorney
General Wootton as inserted below.    No action was taken.

     a. Letter to General Wootton:


                                     September 25, 1935

     Hon. Bailey P. Wootton
     Attorney General
     Frankfort, Kentucky

     Dear General Wootton:

     At session of the Legislature of 1934 appropriation was
     made to the University of Kentucky for payment of salaries
     due and unpaid in the year 1932.    This appropriation has
     now been paid to the University in full and the members
     of the staff to whom these salaries were due have been
     paid to the extent of the amount received.    At the time
     appropriation was made, you will remember that, in order
     to reduce the total of appropriations, the committee on
     appropriations cut quite a number of requests.     Among
     others, it cut the request made for payment of these back
     salaries to the extent of ten per cent.    Had the original




 




16.



amount been allowed, we would have had sufficient to
have paid the salaries in full; however, as it now
stands there is yet a balance of 813,097.95 unpaid
exclusive of interest that    not being taken into con-
sideration.

On the twenty-third day of July 1935, the Treasurer of
the State credited to the University College Revolving
Fund 85,323.93 which was distribution of the amount of
inheritance tax collected, as I understand it, previous
to the end of the fiscal year 1933-1934.   The payment
of this amount to University funds was reported to the
Board of Trustees at a meeting held September 24th and
the members present were of the opinion that this fund
may be applied to payment of the salaries unpaid in
1932 and I was directed to ask that you give an opinion
as to whether or not this may be done.   I shall appre-
ciate it very much if you will let me hear from you in
regard to it.

Very truly yours,


(Signed) D. H. Peak,
          Business Agent.



b. Answer of General Wootton:


                               October 25, 1935

Mr. D. H. Peak
Business Agent
University of Kentucky
Lexington

Dear Mr. Peak:
               I have your letter of the 25th in which
you state that at the 1934 session of the General As-
sembly a certain appropriation was made to the Universi-
ty of Kentucky for the payment of salaries due and unpaid
in the year 1932.

               You further state that this appropriation
was not sufficient to take care of all of these unpaid
salaries, and that

                  "On the twenty-third day of July
     1935, the Treasurer of the State credited to
     the University College Revolving Fund t5,323.93
     which was distribution of the amount of inheri-
     tance tax collected, as I understand it, pre-
     vious to the end of the fiscal year 1933-1934.




 





17.



          The payment of this amount to University funds
          was reported to the Board of Trustees at a meet-
          ing held September 24th and the members present
          were of the opinion that this fund may be ap-
          plied to payment of the salaries unpaid in 1932,
          and I was directed to ask that you give an opinion
          as to whether or not this may be done."

          It is my opinion that the College Revolving Fund of
     $5,323.93 which was derived from collection of inheritance
     taxes previous to the end of the fiscal year 1934 may not
     be u