<pre style="white-space: pre-wrap">xt75tb0xq04q https://exploreuk.uky.edu/dips/xt75tb0xq04q/data/mets.xml Lexington, Kentucky University of Kentucky 19350313 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, 1935-03-mar13-ec. text Minutes of the University of Kentucky Board of Trustees, 1935-03-mar13-ec. 1935 2011 true xt75tb0xq04q section xt75tb0xq04q 


     Minutes of the Meeting of the Executive Committee of the
Board of Trustees of the University of Kentucky, M1arch 13, 1935.


     The Executlve Committee of the Board of Trustees of the Uni-
versity of Kentucky met in President MIoVey's office at the Uni-
versity March 13, 1955, at 10:30 a.m.   The members of the Corm-
mittee present were Judge R. C. Stoll, Chairman; Miller Holland
and James Park;   President Frank L. 1.1cVey and Secretary D. H.
Peak were also present.


     1. Minutes Approved.

     The Minutes of the meeting of the Executive Committee of Feb-
ruary 12, 1935, were approved as published.


     2. Quarterly Meeting of Board of Trustees April 16.

     President 1M.'.cVey stated that the date of the regular quarterly
meeting of the Board of Trustees is Tuedday, April 2, 1935, and
that it now appears that in order to give more time for completion
of the 1935-1936 budget and for other reasons, it. is desirable to
postpone the meeting t a later date.   The Executive Committee
having considered the facts, on motion duly carried, authorized
continuance of the regular quarterly meeting of the Board of Trus-
tees from 10:30 a.m. April 2, 1935, to 10:30 a.m. Tuesday, April
16, 1935.   The ME1inutes of that meeting are to show the usual
formality as to continuance.

     3. Financial Report.   The financial report for February was
filed and ordered to be recorded in the M11inutes.  It reads as
follows:


                                                 EXHIBIT "Bu


            Statement of Income and Expenditures
                   Month of' February 1935

                                                         Fiscal
                            Previously     Current      Year
                            Reported      Month        To Date

General Fund Income
  Federal Appropriation     28,500.00      7,125.00   35,625,00
  Interest on Endow.Bonds    6,487.50      2,157,00    8,644.50
  Interest on LibLoan Bonds    850.00                    850,00
  Vocational Education Board)0,140.37      1,979.86   12,120.23
  State Appro.-Back Salaries7l,100,00                 71.100,00
  State Appro.-Repairs to
     Buildings               1,854.56      1,758.68    3,613.24


2I.


State Appro.-Sumner
   School                 9,000.00
Special Agri. Appro.     12,371,72
State Appro. - General.   335,574,96
Student Fees            104,076.42
Student Fees - Sum.Sch.    40,388,49
Student Fees - U.H.S..     5,120,00
Student Fees - El.TreSch.   3,569,00
Student Fees - Un.Ext.     13,074,20
Miscellaneous Receipts     5,954.14
Rentals                    1,834.10
Men's Dormitories          9,004c60
         Total           658,900.06


5,928,68
115,345,33
89,418,34
     59.75
  3,525,00
  3,415,00
  3,073,95
    554,11
    313.50
  4,872 , 00
239,526.20


9,000,00
18,300,40
450,920,29
193,494,76
40,448,24
  8,645,00
  6,984,00
  16,148,15
  6,508,25
  2,147,60
  13,876.60
898,426.26-


Expenditurep
  Instruction              438,703.88
  Adm.,Exp. & Maintenance  161,110,21
  Additions and Better-
     ments                    8,415.29


Total


608,229.38


66,651.00
21,483,13


505, 354.88
182,593,34


  728.30    9L14.359
88,862.43   697,091.81


   Excess of Income over E
   penditures

Patterson Hall Income
   Board
   Misc. Receipts
   Room Rent - Summer Sch.
            Total


Expenditures
   Expense
   Additions and Better-
      ments
            Total


Excess of Income over Ex-
    penditures

General Fund Income
General Fund Expendi-
    tures
 Excesc of General Fund
    Income over Expend.
Accounts PaYable - Liqui-
    dated
Excess of Receipts over Ex
    penditures for General
    Ledger accounts


Cx-
   50,670.68    150,653.77  -201 334.4


   22,705.13      9,943.00    32,648.13
      136,25          8,85       145.10
    1,326.00                   1,326,00
    24,167.38      9,951,85    34,119.23


    17,156.66      6,119.85    23,276.51

       25.50                      25.50
   17,182.16      6,119.85    23,302.01


6,985.22     3.832.00  10.817.22

683,067,44  249,478,05  932,545,49

6P5,411.54   94,982.28  720,393.82


57,655.90

(71,100.00)


154,495.77


212,151.67

(71,'100.00)


(17.022.01)  18,662.57


- -


- -


- -


1.640.56


X.


Excess of Receipts over Ex-
penditures for the fiscal
  year to date - General
  Fund                    (30
Excess of Receipts over Ex-
  penditures for the fiscal
  year to date - General Fund

Cash in Bank July 1, 1934 -
  General Fund
Cash in Bank February 28,
  1935 - General Fund


Experiment Station Income
  Hatch - Federal Appro.    11,250.00
  Milk and Butter - Cash
    Receipts                 6,381.56
  Beef Cattle Sales            410,13
  Dairy Cattle Sales           3 8.06
  Sheep Sales                  310,51
  Swine Sales                  395.35
  Poultry Sales                920.31
  Farm Produce Sales         1,162,16
  Horticultural Sales          328.85
  Seed Test                  1,134.87
  Seed Inspection            4,406,46
  Rentals                    5,011.69
  Miscellaneous                927.46
  Fertilizer - Fees          7-317.21
  Public Service - State
     Appropriation           10,412.08
   Public Service - Miscl-
     Receipts                    20.00
   Feeding Stuffs - Fees     17,159,56
   Adams - Federal Aporo.    11,250.00
   Serum - Sales                504.06
   Serum - Virus Sales           52,60
   Serum - Supply Sales          66.30
   Serum - Misc. Receipts        27.40
   State Appropriation       24,993,95
   Creamery - License Fees    6,314.05
   Creamery - Testers Lic.    2,065.02
   Creamery - Glassware Test-
      ed                        428.14
   Robinson - State Aprjro.   6,415,18
   Robinson - Misc. Receipts  5,318.26
   West Kentucky - State AO.  7,990,87
   West Kentucky - Mtsil Rec. 4,681.85
   Parnell, Federal Appro.   45,000,00
   Nursery Inspection -St.Ap. :.977.42
   Xurs ry Inspcction - Fees  1,3.aD000
   Blood Test                    20.75
           Total            T5  .TT


.466.11)


173.158.34


142,692.23


142,692.23


(4,289,95)

138,402.28


245.47
  40.16

  47?60
  161.96
  992,19
  54.35
  184.55
3,881.32
  119.67
  21.50
6,362.50

3,255.48

    5.00
2,539.05

   71.30
   9,60
   37,25
   4.00
9,085.38
   15.50
   48.00

   16.06
   935.80
   204,01
1,055.81
  301.46
  150.00
  50.00


11,250,00

7,316,95
   655,60
   438,22
   310,51
   442. 95
 1,082,27
 2,154,35
   383,20
 1,319.42
 8,287,78
 5,131.36
    948.96
 13,679.71

 13,667.56

     25;00
 19,698,61
 11,250,00
    575,36
    62.20
    103,55
    31.40
 34,079,33
 6,329.55
 2,113,02

    444,20
  7,350,98
  5,522,27
  9,046,68
  4,983,31
  45,000,00
  ,127042
  I 3 60 .2b'
      20.75
216. 192.'47


OU * bOU*.  


4.


Expenditures
  Expense
  Additions and Better-
    ments
        Total


160,249,10


25,003,58


185,252,68


  6,159.27      236.40      6,395.67
166-,408.37  25,239.98  191,648.35


Excess of Income over Ex-
  penditures              18,953.74
Excess of Expenditures
  over Receipts for Gen-
  eral Ledger accounts    (8,726.49)


5,590.38   24,544.12


(1,212.56)


(9.939.05)


Excess of Receipts over
  Expenditures            1
Excess of Reodipts over
  Expenditures for the fis-
  cal year to date - Ex-
  periment Station
Cash in Bank July 1, 1934 -
  Experiment Station
Cash in Bank February 28,
  1935 - Experiment Station


0.227.25


4.377.82  14..60507


14,605,07

13,586.85


28,191.92


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

Expenditures
  Expense

  Excenssof Income ovor
    Expenditures


Excess of Income over Ex-
  penditures for the fis-
  cal year to date - Exten-
  sion Division
Cash in Bank July 1, 1934 -
  Extension Division
Cash in Bank February 28,
  1935 - Extension Division


Trust Fund Income
  Student Loan Fund
  Student Notes Paid
            Total Receipts


74,154.38
15,500.00
26,545,52
18,400,49
62,899,94
2,797.76


74,154.39
15,500.00
26,545,52
18, 400, 48
24,687,89
1.019.66


200,298,09  160,307.94  360,606.03


227,183.63   32,021.56  259,205.19


(26,885.54) 128,286.38  101,400.84


148,308,77
31,000.00
53,091,04
36,800,97
87,587,83
  3.8_F17.42


101 '    j00, 94) '-

il585.04)


100,815.80


1,093.03
2,367.20
3,460.23


212.94
437.30
650.24


1,305.97
2,804.50
4 llO0.47


4.377.82    14-605-M


Expenditures
   E:xpense
   Student Notes
      Total Expenditures


Excess of Expenditures over
   Receipts


(716.99)   (2.433.01)


(3.150.00)


Excess of Expenditures over
  Receipts for the f'iscal
  year to date - Trust Fund
Cash in Bank July 1, 1934 - Trtust Fund
Cash in Bank February 28, 1935 -
   Trust Fund


(3,150.00)
3.823.72


673.72


Summary
   General Fund Income     683,067.44
   Experiment Station In-
      come                 185,362.11
   Extension Division In-
      come                 200,298,09
   Trust Fund Income         1__l  .03
            Total        1,069,320.67


349,478,05

30,830,36

160,307.94
    212 . 94
440,829.29


932,545,49

216,192.47

  360,606,03
  1,305.97
1,510,649.96


General Fund Expendi-
  tures


G25, 411.54


94, 982. 28


720,393.82


Experiment Station Ex-
   penditures           1C6,408,37
Extension Division Ex-
   penditures           227,183,63
Trust Fund Expenditures   4,162.22
         Total        1.;023,165.76


Excess of Income over Ex-
penditures

Accounts Payable - liqui-


dated


('


46,354. 91


71,100.00)


Excess of Expenditures over
  Receipts for General
  Ledger accounts      (25,748.50)


Student Loan Fund - No   2,352,20


Excess of' Receits over Ex-
  penditures for the fiscal
  year to date - Combined
  Fund                  (47,831.39)

Excess of' Receipts over E.-
  oenditures -for the f'is'cal1
  year to date - Combined Fund


25,239,98  191,648.35


32,021,56
3,Q083.25


259,205,19
  7.245.47


155,327.07 1,1782492.83


285,502.22   332,157.13


             (71,100.00)


 17,450tOl    (8,298,49)

    437.30     2,789.50


303,389.53   25548,14


2655,548.14


5.


4,162.22
  15.00


4,77.2,2


3,083, 25

3,083.25


7,245.47
   15.00
7,260.47


6.


Cash in Bank and on hand
  July 1, 1934 - Combined
  Fund
Cash in Bank and on hand Feb-
  ruary 28, 1935 - Combined
  Fund


Abstract of item shown on Statement
of Income and Expenditures as "Excess
of Expenditures over Receipts for Gen-
eral Ledger accounts $8,29b.49"


Debit


Accounts Receivable

Insurance Paid in Ad-
    vance

Sundry Accounts


12,804.01


1,071.87


13,875,38
52577.39
8,298.49


     4. Financial Outlook,

     Report of Business Agent:

     "At this time it seems that there can be no great variance
from the estimate of income and expenditures presented at January
meeting of the Executive Committee.    It seems that the entire un-
allotted balance of each appropriation inade by the last General
Asseimbly will be available for use during the remainder of the
fiscal year."


     5. Organ Practice Fees.

     The adjustment and fitting of organ practice fees was referred
to President HoIVey for such action ,.s he deems advisable.


14,535.58


270 083.72


Credit


5,577.39
5,577.39


7.


     6. Budget Allowance - Janitors for Men's Dormitories.

     The Superintendent of Buildings and Grounds having suggested
that an allowance for wages of Jianitors at the -en's Dormitories
should be made, and It appearing that the 1934-35 budget does not
show an appropriation for such purpose, President McVey was au-
thorized to make a budget addition therefor.   The men now employed
as Janitors at the .Men's Dormitories are James Burrows, Eugene
Lewis, George Hopes and John Pursley, and the total amount of their
wages on the scale of weekly payments will be $2312.00.


    7. Budget for 1935-1936.

    President IM4cVey stated that the Budget for the year 1935-1936
is in process of preparation and that he expected to present it to
the Board of Trustees at the April meeting.


     8. Allotment of Appropriations -, Request for Authorized.

     The unallotted balances of appropriations for College and
Experiment Station are as follows:


College Division
College of Agriculture
  (Special Agricultural)
Experiment Station State 50OM
Western Kentucky Substation
Robinson Substation
Analysis (Public Service)
Nursery Inspection
Agricultural Extension


Appropriation

679,000.00

25,500.00
50,000,00
15,000.00
15,000.00
22,000.00
  2,500.00
126,000.00


Unallotted
Balance

175,000,00

  6,500,00
  12,500,00
  4,000,00
  4,500,00
  6,000,00
  1,000.00
  31,500.00


     President CoVey was authorized to request allotment by the
State Board of Finance and Budgetary Control of the entire amount
of each balance.


     9. Out-of-State Travel.

     The Business Agent reported receipt- of letter from the Execu-
tive Secretary of the Board of Trustees, copied as follows:


8.


                                  March 7th, 1935

     The University of Kentucky
     Lexington, Kentucky

     Gentlemen:

     The following requests for approval on Travel Ahthoriza-
     tions were granted by the Board of Public Property, at a
     meeting held March 5th, 1935:

     Sherman G. Crayton, from Lexington to Washington,
             D. C.- 7                                       $36.90
     W. A. Price, from Lexington to Urbana, Illinois    ---  30,00
     C. 0. Eddy, for trip from Lexington to Urbana,
             Illinois  ------------------------------- -     30.00
     Howard C-. Tilson, from Lexington to Urbana, Ill-
             inois --------------------------------------- 30.00
     A. Vandenbosch, from Lexington to Chicago, Illinois -   17.20
     Leo M. Chamberlain, from Lexington to Atlantic City,
             New Jersey --_----------------------------      51.99
     May K. Duncan, from Lexington to Atlantic City, N.J.-   48.90
     R. H. Woods, from Lexington to Chicago, Illinois ----   45.20

     Inclosed is list of printing as approved by the
            Board at above mentioned meeting.

     Very sincerely yours,

     (Signed)  Sam S. English
               Exedutive Secretary

     The travel requests allowed are those that have been file;.
since the date of the order of the State Board of Finance holding
up various expense accounts of the University and others.     Mr.
English verbally stated to the Business Agent that no further or-
ders have been made relative to expense accounts formerly held up.


     10, Printing -- Charge for Pager.

     The Business Agent reported receipt of letter from the Execu-
tive Secretary of the Board of Trustees, which letter on order of
the Executive Committee is copied as follows:


9.


                                March Gth, 1935

    Hon. D. H. Peak, Business Agent
    University of Kentucky
    Lexington, Kentucky

    Dear-Mr. Peak:

    At a meeting of the Board of Finance and Budgetary Con-
    trol, held. March 4th, 1935, the following resolution was
    adopted:

    "THAT, at the entire appropriation for the Paper Budget
    has been exhausted, each department will be required to
    pay for ALL paper used to fill printing Requisitions up
    to June 30th, 1935.

    Very sincerely yours,


    (Signed) Sam S. English
              Executive Secretary


     11. Governor's Proclamation -- N. R. A.

     a. The Business Agent reported receipt of notice from the
Chairman of the State Purchasing Gommission which is copied as
follows:

     February
     Thirteen
     1 9 3 5

     NOTICE.

     You, no doubt, have noticed the Governor's Proclamation
     and Executive Order regulating the manner in which pur-
     chases for State Departments must be made in the future.

     We are attaching copies of this Proclamation and Execu-
     tive Order for your guidance. It would be my suggestion
     that when you ask for quotations to request companies to
     furnish a letter stating that they are complying with the
     Codes as set out in the Executive Order.

     (Signed) N. A, Chrisman
               Chairman.


10.


    b. Copies of the Governor's Proclamation and his Executive
Order accompanying the letter of Mr. Chrisman were ordered insert-
ed in the Minutes,

     Proclamation.

         WHEREAS, the Congress of the United States has enact-
     ed the National Industrial Recovery Act providing there-
     under for Codes of Fair Competition for trades and indus-
     tries which are now in ef ect throughout our Nation in-
     suring orderly industrial rehabilitation; the stabiliza-
     tion of employment; the maintenance of fair wages and work-
     Ing hours for labor; the promotion of sound economic condi-
     tions and providing for social stability; and,

          WHEREAS, the President of the United States has is-
     sued Executive Order, No. 6646, requiring of Government
     contracts and contracts involving the use of Government
     funds a Certificate of Code Compliance; and,

          WHEREAS, in furtherance of the National Industrial
     Recovery Act and c.ompliance of the Codes of Fair Compe-
     tition thereof and in conformity with the President's Ex-
     ecutive Order, No. 6646, I have this date issued an Execu-
     tive Order requiring all Executive Department, independent
     establishments and other agencies and instrumentalities
     of the Commonwealth of Kentucky to secure Certificate of
     Code Compliance in State contracts and in contracts in-
     volving the use of State funds.   I hereby respectfully
     call upon all municipalities and counties and indepen-
     dent agencies thereof to require, as per my Executive
     Order, of all bidders and contractors and dealers in the
     purchase of goods and materials and/or contracts other-
     wise a Certificate of Code Compliance certifying compli-
     ance with each approved NRA Code of Fair Competition to
     which the bidder or contractor or dealer is subject.

                             C-IVEN UNDER LITY HAND and the Great
                             Seal of the Commonwealth of Ken-
                             tucky, on this, the fifth day of
                             February, 1935.

                                  Ruby Laffoon, Governor
                                  Commonwealth of Kentucky.

     The Executive Chamber
         State Capitol.


11.


Executive Order:

     STATE CONTRACTS AND %CU1iTRACTS INVOLVING THE USE OF
                      STATE FUNDS

     By virtue of the authority vested in me as Governor of
the Commonwealth of Kentucky, it is hereby ordered that:

     1. (a) All invitations to bidders hereafter promulgat-
ed by or in behalf of any executive department or indepen-
dent establishment or other agency or instrumentality of
the Commonwealth of Kentucky, shall contain a provision to
the effect that no bid will be considered unless it includes
or is accompanied by a certificate duly executed by the bid-
der stating that the bidder is complying with1 and will con-
tinue to comply with each approved code of fair competition
of the National Recovery Administration to which he is sub-
ject, and if engaged in any trade or industry for which
there is no approved code of fair competition, then stating
that as to such trade or industry he has become a party to
and is complying with and will continue to comply with an
agreement with the President under section 4 (a) of the Na-
tional Industrial Recovery Act.

       (b) No bid which does not comply with the forego-
ing requirements shall be considered or accepted.

       (c) All contracts and purchase orders authorized
by any agency of the Commonwealth of Kentucky shall con-
tain a provision to the effect that the party or parties
awarded any such contract or purchase order shall comply
with each approved code of fair competition to which it
is subject and if engaged in any trade or industry for
which there is no approved code of fair competition,
then, as to such trade or industry, with an agreement
with the President as aforesaid; and that the Commonwealth
of Kentucky shall have the right to cancel any contract
for failure to comply with such provision and make open
market purchases or have the work called for by the con-
tract otherwise performed, at the expense of the con-
tractor.

       (d) No agency of the Commonwealth of Kentucky and
no State contractor or supplier shall hereafter accept
or purchase for the performance of any contract or pur-
chase order or enter into any subcontracts for any arti-
cles, materials, or supplies, in whole or in part pro-
duced or furnished by any person who shall not have cer-
tified that he is complying with and will continue to
comply with each code of fair competition which relates
to such articles, materials, or supplies, or in case
there is no approved code for the whole or any portion
thereof, then to that extent, with an agreement with the
President as aforesaid.


12.


          2. TWhenever a dispute shall arise between any agency
    of the Commonwealth of Kentucky and any bidder, contractor,
    supplier, or other person as to compliance with any code
    of fair competition or with an agreement with the Presi-
    dent as aforesaid in connection with any proposal, bid,
    contract, subcontract, or purchase order mentioned herein,
    the National Industrial Recovery Administration shall de-
    cide such dispute and such decision shall be final and
    conclusive.

          3. All provisions of approved codes of fair compe-
    tition shall apply to the making and performance of con-
    tracts with or sales to agencies of the Commonwealth of
    Kentucky.

                                 GIVEN UNDER E HAND and the
                                 Great Seal of the Commonwealth
                                 of Kentucky, on this the fifth
                                 day of February, 1935.

                                 RUBY LAFFOON, Governor,
                                 Commonwealth of Kentucky.


     The Executive Chamber
        State Capitol


     c. The Business Agent stated that orders sent out from the
Business Office are stamped as follows:

          This 6rder is made on condition that the party
          awarded the order has complied with the require-
          ments of the National Code of Fair Competition
          -- NIRA -- to which the party is subject. Please
          file with the University of Kentucky Business Of-
          fice a certificate to that effect.


     12. Sales Tax.

     The Business Agent stated that acting on the resolution
passed at the February raeeting of the Executive Committee, he re-
quested the management of the Guignol Tileatre and the Secretary
of the Athletic Council to comply wvith the sales tax law require-
ments,   Letters from each of these organizations show that they
have taken the necessary steps toward complying with the law.

     These are the only organizations in which the University is
directly interested.   Steps are being taken, however, to show all
University organizations the necessity of consideration of the
sales tax question in connection with entertainments, etc., at
which admissions are charged, by sending out the following notice:


13.


    To Fraternities and Sororities
       Student Organizations
       Faculty Organizations

         The Executive Committee of the Board of Trustees of
    the University of Kentucky has requested me to notify you
    that the State Tax Commission has ruled thlat all student
    organizations and faculty organizations, giving athletic
    events, shows, plays or entertainments at which admission
    is charged, must account f'or the three per cent sales
    tax on such admissions.  This ruling includes sororities
    and f'raternities.

         It is the desire of University authDrities that the
    law be complied with the fullest extent.


    13. Security of Deposits -- First National Bank and Trust
eSomoanv.y
    a. Copy of letter from First National Bank and Trust Company:
                                   February 27, 1935

    M1r. D. H. Peak, Business Agent,
    University of Kentucky
    Lexington, Ky.

    Dear Mr. Peak:

              There is enclosed herewith a form of custodian
    agreement submitted by the Guananty Trust Company of New
    York under which it is proposed that we deposit with that
    institution $.OO,0000 United States of America 3%
    Treasury Bonds of 1946-48 as collateral security for your
    deposit funds.

               In telephone conversation with you this morning,
     you asked that the form be submitted to Judge Stoll; how-
     ever, upon referring the matter to him, he advised that
     since he was also acting as attorney for the bank as well
     as representing the University, that the matter should be
     submitted to Mr. Gordon at Louisville, Acting Chairman of
     the Executive Committee, for his examination and execu-
     tion in that capacity,

               The charges to be made by the Guaranty Trust
     Company of New York will be on a basis of 1/40th of 1%
     of the average par value of securities pledged with a
     nominal charge of $215.O0 per annum f'or holding this col-
     lateral,


14.


          If the form is. found to be acceptable, you may
advise us and we will be pleased to execute same and pledge
the collateral mentioned.

                            Yours very truly,


                            (Signed)  J.. M. Sellers
                                      Cashier.

b. Copy of letter from Guaranty Trust Company of New York:


                             New York
                             March 11, 1935.

University of Kentucky
Lexington,
Kentucky,
                    Attention: Mr. D. H. Peak, Secretary
                                to 3oard of Trustees.

Gentlemen:          In re:: Account - University of Kentucky,.
                    Lexington, Kentucky (a/c First National
                    PBnk and Trust Co., Lexington, Kentucky).
                    BC 13477.

          In accordance with the instructions which we have
received from the First National Bank and Trust Company of
your city, we have completed arrangements for the establish-
ment of a new safekeeping account titled as above into which
we have deposited the securities described in our official
receipt enclosed herewith.

          We also enclose your copy of the custodian agree-
ment setting forth the conditions under which this account
will be operate..   We have attached to each copy of the
agreement a duplicate of our official receipt covering the
initial deposit.   All subsequent deposits will be acknowl-
edged in the form of a similar official receipt, which will
contain a statement to the effect that the securities so
deposited are likewise to be held subject to the terms of
this agreement.   This procedure is followed in order that
the agreement may be permanently operated.    We shall not,
of course, require the surrender of the agreement or of our
official receipts in connection with subsequent withdraw-
als so that your records will be permanent and complete at
all times.


15.


          We are informed by the First National Bank and
Trust Company that you have agreed to assume the expense
of maintaining this account.   May we confirm at this
time that our fees will be computed on the basis of 1/40th
of 1% of the average Dar value of securities held, with
a minimum charge of $25.00 per annum.   If satisf actory
to you, we shall arrange to bill you semi-annually at the
end of each six months' period for these charges.   In
this connection, it will be appreciated if you will in-
form us whether you wish our advices, statements and cor-
respondence with respect to this account addressed for the
attention of any particular office or official.

          In addition to the agreement, we shall require
the following for the completion of our authority records:

     1. Certified copy of a resolution of your Board of
        Trustees approving execution of the custodian
        agreement on behalf of the University by the
        Chairman, pro tem, of the Executive Committee
        and the Secretary to the Board.

     2. Certified copy of a resolution of the Board of
        Trustees, designating one of more officials of
        the University who shall be empowered to sign
        instructions on behalf of the University pursu-
        ant to the terms of the agreement.

     3. Certificate of the Secretary of the Board set-
        ting forth that the officials so designated are
        at present duly elected, qualified and acting
        in their respective capacities.

     4. Specimen signatures of those authorized to
        si n on the enclosed card, which should be au-
        thenticated as genuine by the Secretary under
        seal.

      Assuring you of our pleasure in serving you as custo-
diap for your collateral account, we remain

                             Yours very truly,

                         GUARANTY TRUST COIANY OF NEW YORK

                           Per Pro:

                                    (Signed) L. R. Ince

Enclosures.


16.


c. Custodian agreement:

     In the M4inutes (section 24) of the Meeting of the Ex-
ecutive Comnmittee of February 12, 1935, a resolution was
entered, authoritng the Acting Chairman, Robert G. Gordon,
to enter into contract with the First National Bank and
Trust Company of Lexington, Kentucky, to place with some
banking institution 8l0O,O00.O0 in securities for the puir-
pose of securing the deposits of the University of Ken-
tucky made in the First National Bank and Trust Company.

     In compliance with that resolution, the following
custodian agreement was executed:


                              R.e account - University of
                              Kentucky, Lexington, Ky.
                              (a/c First Naitional Bank
Guaranty Trust Company of     and Trust Co. Lexington, Ky.)
      New York
140 Broadway
New York, N. Y.

Gentlemen:

              "The securities described in the attached
schedule, which are acceptable to the undersigned for
the purpose hereinafter stated, have been deposited with
you to secure the repayment of deposits of the Universi-
ty of Kentucky of Lexington, Kentucky, with the under-
signed depositary bank.

              As custodian, you are to observe and be
guided by the following terms and conditions:

               (1) Until you receive from the University
of Kentucky of Kentucky, their written direction to the
contrary, you are to surrender the interest or other
income accruing to these securities to the undersigned
depositary bank or its order.

               (2) Whille these securities are held under
the conditions as set forth herein, they are subject to
the sole order of the University of Kentucky of Kentucky,
whose instructions as to clisposition, however, shall be
limited to the return of these securities to the under-
signed depositary bank or its order, except as herein-
after provided.


17.


                 (3) You are to deliver these securities, in
      whole or in part, to the University of said Kentucky,
      upon their written demand, but only when such demand is
      accompanied by satisf'actory proof that the depositary
      bank has defaulted in payment of part or all of the
      funds secured by the said securities.

                 (4) Upon repayment of the deposits by the de-
      positary bank, satisfactory proof of such repayment will
      be furnished you, upon receipt of which you are to return
      the securities to the bank.

                 (5) This agreement is to be executed in trip-
      licate by the parties concerned, each of whom is to re-
      tain one copy for their records.

      Approved: University of Kentucky    First National Bank &
(Sigred)3y Robt. G. Gordo</pre>