xt7d7w674394 https://exploreuk.uky.edu/dips/xt7d7w674394/data/mets.xml Lexington, Kentucky University of Kentucky 19360114 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, 1936-01-jan14. text Minutes of the University of Kentucky Board of Trustees, 1936-01-jan14. 1936 2011 true xt7d7w674394 section xt7d7w674394 


Irregularities




 







      Minutes of Called Meeting of the Board of Trustees of the
University of Kentucky, Tuesday, January 14, 1936.


     A called meeting of the Board of Trustees of the University
of Kentucky was held in President McVey's office Tuesday, Janu-
ary 14, 1936, those present being Governor A. B. Chandler, Judge
Richard C. Stoll, J. B. Andrews, G. C. Wells, John Cooper, Dr.
George Wilson, Superintendent of Public Instruction, Harry Peters,
and Commissioner of Agriculture, Garth Ferguson.    President F. L.
MoVey and Secretary D. H. Peak were present. Robert G. Gordon,
James Park and Louis Hillenmeyer had expressed their inability
to attend on aceount of business engagements arranged previous to
notification of the meeting.    R. Miller Holland telegraphed that
train schedules were such that he could not reach the meeting
before probable adjournment.

     Governor Chandler attended the first regular theeting of the
Board of Trustees after his inauguration, the meeting of December
17, 1935, but this was the first attendance of Mr. Peters and Mr.
Ferguson after installment in office.    These members, holding
position by reason of their respective state offices, were cor-
dially welcomed at the meeting.


     1. Members of the Board.

     a. Governor Chandler stated that he had not accepted resig-
nations of the following members of the Board of Trustees: R.
Miller Holland, G. C. Wells, John Cooper, J. B. Andrews, James
Park, and Dr. George Wilson, and that he had approved their ap-
pointments as members of the Board of Trustees for the remainder
of the term for which each was originally appointed.

     b. The Governor stated that he had received notice of alumni
nominations for Board members (See Section 5, Minutes of Decem-
ber 31, 1935), and that, acting on that notice he had reappointed
Louis Hillenmeyer, whose term expired December 51, 1935, to suo-
ceed himself for a term of six years.

     c. The Governor stated that he had reappointed Robert G.
Gordon, whose term expired December 31, 1935, to succeed himself
for a term of six years beginning January 1, 1936.     Judge Gordon
has been in continuous service on the Board since 1917, most of
the time being an active and valued member of the Executive Com-
mittee.

     d. The Governor stated that he had reappointed Richard C.
Stoll, whose term expired December 31, 1935, to succeed himself
for a term of six years beginning January 1, 1936.     Judge Stoll
has been continuously identified with University affairs from
the time he entered as a student, and he has been in service on
the Board of Trustees since 1896,    He has served is Vice Chair-
man of the Board and Chairman of the Executive Committee for
years and as such has rendered much valuable service to the Uni-
versity.   He was present at this meeting and received from the




 









Governor, the President and each member and officer of the Board
thanks for his service.  The announcement of reappointments of
Judge Stoll, Judge Gordon and Mr. Hillenmeyer was received with
expressions of gratification.

     e, The Governor stated that he would in a short time an-
nounce appointments of members of the Board of Trustees from the
State Board of Agriculture,- these appointments being made neces-
sary because of the appointment of a new Board of AgriculturQ.


     2, Object of the Meeting.

     The Chairman then stated the purposes for which the meeting
was called and proceeded with business.   The object of the meet-
ing is stated in the following copy of notice sent to each member
of the Board on January 3, 1936.

     At a meeting of the Executive Committee of the Board
     of Trustees of the University of Kentucky held Decem-
     ber 31, 1935, a motion was made and carried by unani-
     mous vote of those present, J. B. Andrews, Robert G.
     Gordon and R. C. Stoll, calling a meeting of the Board
     of Trustees of the University of Kentucky at a date in
     January, 1936, to be fixed by President McVey.   Pres-
     ident McVey has requested me to notify you that the
     meeting will be held at his office at 10:30 a.m., Tues-
     day, January 14, 1936.   Your presence is earnestly
     requested, and I shall be pleased to hear from you as
     to whether or not you will be able to attend.

     The object of the meeting is, first, to consider the
     approval of the bid of W. E. Hutton & Company and J. D.
     Van Hooser & Company for the purchase of bonds, the pro-
     ceeds of which are to be used to carry out the P. W. A.
     construction program authorized and accepted by the
     Board of Trustees at its meeting of December 7, 1935.
     This bid was accepted by the Executive Committee at
     the meeting held December 31, 1935, the acceptance be-
     ing subject to the approval of the Board of Trustees:
     Second, to consider such other business relative to
     the P. W. A, building program as may be necessary, and
     any other University business that may be brought be-
     fore the meeting.

     3. Minutes Approved.

     The minutes of the meeting of the Board of December 17, 1935,
were approved as published except as to Section 15, which is cor-
rected and amended by Section 9 hereinafter recorded.     The min-
utes of the meeting of the Executive Committee of December 31,
1935, were approved as published.




 



3.



     4. Financial Report.

     The financial report for the month of January, 1935, was
filed and ordered recorded in the Minutes.     The report reads
as follows:

                                                  EXHIBIT "B"

              Statement of Income and Expenditures
                     Month of December 1935



                         Previously
                         Reported

General Fund Income
Federal Appropriation  14,250.00
Vocational Ed. Board    8,572,37
  Int. on Peabody Endow.  1,000.00
  State Appro.-Back Sal, 71,100.00
  State Appro.-Sum.Sch.   9,000.00
  Special Agr. Appro.    11,831.06
  State Appr.-Repairs to
    Buildings             1,228. 47
  State Appro.-General  277,601e53
  Student Fees          111,766.60
  Student Fees - Sum.
    School               59,064.52
  Student Fees   El. Tr.
    School                4,160.00
  Student Fees - U.H.S.   5,323.50
  Student Fees - Un.Ext, 8,235.58
  Miscellaneous Receipts  8,259.61
  Rentals                 1,121.30
  Ments Dormitories       8,553.15
           Total        601,067.69



Expenditures
  Instruction           306,105.69
  Adm.,, Expense & Maint.103,821.79
  Additions and Better-
    merits                7.935.98



Total



417,863.46



Current
Month



7,125.00
2,160.53



   918.94

   271.57
58,074.26
1,195. 58

    10.15

    60.00
    60.00
 1,825. 98
   637. 67
   329.00
   332. 15
73,000. 83



70,346.36
18,846.34

1,932.06
91,124.76



Fiscal
Year
to Date



21,375.00
10,732,90
1,000.00
71,100.00
9,000.00
12,750,00

1,500,04
335,675 7 79
112,962.18

59,074.67

  4,220.00
  5,383.50
  10,061.56
  8,897.28
  1,450.30
  8,885.30
6?4,068.52



376,452.05
122,668.13

  9 868 04
508,988,22



Excess of Income over
  Expenditures        183,204.23



(18,123.93)    165,080,30



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



25,986.06
   206.61
 2,089.00
 28,281.67



Expenditures
  Expense                13,530.89
  Additions & Better.       129.50
            Total               __13,660.39



1,064.10       27,050.16
   43.90          250.51
            _  - 2,089.00
1, 108.00      29,389.67



5,884.70
  357.40
6,242.10



19,415,59
   486. 90
19,902.49




 





4.



  Excess of Income over Ex-
  penditures

General Fund Income
  General Fund Expend.
  Excess of General Fund
    Income over Expend.
  Accounts Payable - --
    liquidated
  Excess of Expenditures
    over Receipts for Gen-
    eral Ledger accounts
  Excess of Receipts over E
    penditures for the fisc
    year to date - General
    Fund
  Excess of Receipts over E
    penditures for the fisc
    year to date - General
    Fund
  Cash in Bank July 1, 1935
    General Fund
  Cash in Bank December 31,
    General 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
     Appropriation
  Public Service - Miscel.
  Feeding Stuffs - Fees
  Adams - Federal Appro.
  Serum - Sales
  Serum - Virus Sales
  Serum - Live Stock Sales
  Serum - Supply Sales
  Serum - Misc. Receipts
  State Appropriation
  Creamery - License Fees
  Creamery - Testers Licene
  Creamery - Glassware Test



L4,621.28    (5,134.10)    9,487.18

29,349.36   74,108.83   703,458.19
31,523.85   97,366.86   528,890.71



197,825.51

(71,191.63)


(77.309.10)



49,324.78



(23,258.03) 174,567.48

             (71,191.63)


 (1,964.39)  (79,273o49)



(25.222.42)



24,102.36



24,102.36



1935 -



5,837.75

29,940.11



   7,500.00

   3,939,07
   1,350.34
     393.86
     222.58
     855.43
   1,12.3.77
     698,87
     369.90
     329.10
   6,326.42
   2,748,34
     322.35
  11,056.46

  9,516.27
      10.00
  20,107.31
  7,500.00
     964.47
     83.50
     117.45
     81.85
       2.25
  25,000.00
  8,235.00
3e 2,720.95
ted  388.61



2,

3,



4,



          7,500.00

913.28    4,852.35
103.44    1,453,78
141.68      535.54
            222.58
504.52    1,359.95
157.45    1,271.22
35.00      733.87
25.00      394.90
53.99      383.09
151.94    6,478.36
119.67    2,868.01
12.30      334.65
         11,056.46

054.37   11,570.64
  1.60       11.60
299.55   23,406.86
          7,500.00
136.72    1,101.19
12.00       95.50
            117.45
  3.75       85.60
  .10        2.35
189.25   29,189.25
12.00    8,247.00
66.00    2,786.95
52.71      441.32




 



5.



Robinson - State Appro.  5,164.17
Robinson - Misc. Rec.    1,191.73
West Ky. - State Appro.  6,607.12
West Ky. - Misc, Receipts 5,851.43
Purnell - Federal Appro. 30,000.00
Bankhead-Jones - Fed. Ap. 9,669.91
Nursery Inspection - State
   Appro.                 1,114.24
Nursery Inspection - Fees 1,025.00
             Total      172,577.75



1,017.14
  301. 64
2,170.28



  336.15
  115.00
15,986. 53



6,181. 31
1,493.37
8,777. 40
5, 851. 43
30, 000. 00
9,669.91



1,450.59
1,140.00
188 564.28-



Expenditures
  Expense
  Additions & Better.
               Total



127,889.06
  1,783.87
129,672,93



Excess of Income over
  Expenditures           42,904.82
Accounts Payable - liqui-
  dated                  (3,150.32)
Excess of Receipts over Ex-
  penditures for General
  Ledger accounts        12,729.57
Excess of Receipts over
  Expenditures           52,484.07
Excess of Receipts over
  Expenditures for the fis-
  cal year to date - Experi-
  ment Station
Cash in Bank July 1, 1935 -
  Experiment Station
Cash in Bank December 31, 1935 -
  Experiment Station



29,434. 37  157,323.443
   629. 37  _2,413.24
30,063.74   159,736,67


(14,077.21)  28,827.61

              (3,150.32)


 3,541.24    16,270.81

 (10,535.97)  41,948.10



41,948.10

(23,296.47)

18,651.63



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

Expenditures
  Expense



144,925,05
74,154.38
15,500.00
26,545.52
18,400.49
63,000,00



144,925.05
74,154.38
15,500.00
26,545.52
18,400.49
63,000.00



  8,                 .   _736,58,2,838.52 11-574.10
351,261.02      2,838.52 354,099.54


201,594.41     52, 61789  254,212,39



Excess of Income over Ex-
  penditures             149,666.61



(49,779,37) 99,887,24



Excess of Income over
  Expenditures for the
  fiscal year to date -
  Extension Division
Cash in Bank July 1, 1935 -
  Extension Division
Cash in Bank Dec. 31,1935 - Exteri.Division



99,887.24

  303.82
100,191.06




 









Trust Fund Income
  Student Loan Fund
  Student Notes Paid
           Total Receipts



Expenditures
  Expense
  Student Notes
  General Ledger accounts
            Total Expenditures



2,785.81
1,558.62
A4,344. 43



15.00
50.00



65.00



Excess of Receipts over Ex-
penditures



4,279.43    (4.391.53)



Excess of Receipts over Ex-
penditures for the fiscal
year to date - Trust Fund
Cash in Bank July 1, 1935 -
  Trust Fund
Cash in Bank December 31, 1935 -
Trust Fund



Summary
  General Fund Income
  Experiment Station Inc.
  Extension Division Inc,
  Trust Fund Income
              Total



629,349.36
172, 577,75
351,261.02
   2,785.81
1,155,973.94



74,108.83
15,986.53
2,838.52
   152.27
93,086.15



703,458.19
188,564.28
  354,099.54
    2,938.08
1.249,060.09



General Fund Expenditures 431,523.85
Experiment Sta. Expend. 129,672.93
Extension Div. Expend.  201,594.41
Trust Fund Expenditures       15.00
           Total         762,806.19



97,366.86
30,063.74
52,617.89



180,048.49



528,890.71
159,736.67
254,212.30
     15,00
942,854.68



Excess of Income over Ex-
penditures              393,167.75



(86,962.34)



306,205.41



Accounts Payable - liqui-
dated                   (74,341,95)



Excess of Expenditures over
Receipts for General Ledger
accounts                (64,579.53)



(74,341.95)



(3,423.15)



(68,002,68)



Student Loan Fund Notes

Petty Cash accounts

Excess of Receipts over Ex-
penditures f or the f iscal
year to date - Comabined
Fund                    25



1,508.62



456.20



200.00



1,964.82



200.00



166,025.60



6.



152.27
506.20
658.47



   50.00
5,000.00
51050.00



2,938,08
2,064.32
5,002.90



   15.00
 100.00
5,000.00
5,115.00



(112.10)



(112.10)



1,128.84

1.016.74



                        -
. __ :   ,



5,954.89 A89,929.29)




 







7.



Excess of Receipts over Ex-
penditures for the fiscal
year to date - Combined
Fund
Bash in Bank and on hand July
1, 1935 - Combined Fund
Cash in Bank and on hand December
31, 1935 - Combined Fund



166,025.60

(14,026.06)



151,999,54



         Abstract of item shown on Statement
         of Income and Expenditures as "Excess
         of Expenditures over Receipts for
         General Ledger accounts 068,002.68."


                             Debit

Accounts Receivable        50,558.59

Insurance Paid in Advance      45.60

Sundry Accounts            17,398,49



Credit



                                68,002.68



     5, Fire Insurance, Expiration.

     The President stated that the fire insurance policies on
the general schedule of College Division property expire March
14, 1935.   The question of renewal was continued, pending action
of the State Legislature on plan of state carrying its own insur-
ance.


     6, Allotments of Appropriation.

     a. The Business Agent reported that on the 6th day of Jan-
uary, 1936, he received notice that the State Board of Finance
had set up allotments in addition to previous allotments as fol-
lows:




 






8.



M dear MAr. Peak:

    This is to notify you that the Board of Finance
and Budgetary Control, at a meeting held January 4, 1936,
allotted to your University, and the various units there-
of the following:

     College Division          $50,000.00
     College of Agriculture      2,000.00
     Experiment Station, Lex.    3,000.00
     Experiment Sta.,Princeton      800.00
     Experiment Sta., Quicksand     400.00
     Experiment Sta., Analysis      800.00
     Nursery Inspection             100.00
     Agricultural Extension       9,500.00

     The above allotments, as listed, are for the month
of January, 1936, and are to be used in addition to any
balances which may have been left on hand December 31,
1935.

     No additional allotment was made for any unit of
your College which had a balance on hand at the close of
December, 1935, sufficient for operation costs for the
month of January, 1936.

     The Board asks me to specifically warn each depart-
ment and college to live within its allotment.   The Board
has ruled that no additional allotments will be made.

                        (Signed) Walter W. Mulbry
                                  Executive Secretary


b. Total allotments made to date:

     College Division          $389,000.00
     College Repairs              4,500.00
     Agricultural Extension      72,500.00
     College of Agriculture      14,750.00
     ExperimentStation           33,000.00
     Public Service - Analysis   13,800.00
     Nursery Inspection           1,650.00
     Robinson Sub-Station         7,900.00
     Western Kentucky Sub-Station T,300.00




 





9.



     7. Requisition Committee Report.

     The Requisition Committee filed written report of its action
each week from December 13, 1935, to January 8, 1936, inclusive.
The report shows 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. 3641 to No. 3980.   The Report was examined, and on motion
and second the orders named therein were ratified and approved
and payments on said orders were authorized and approved.


     8. Out-of-State Travel Expense.

     The Business Agent reported the following letter relative to
requests for out-of-state travel expense:

     My dear Mr. Pea1:

          At a meeting of the Board of Public Property,
     held December 28, 1935, the Board adopted the fol-
     lowing motion: "That all requests for approval of
     Out-of-State Travel Authorizations be submitted to
     the Attorney General of Kentucky, for his investi-
     gation as to the legality of same, before any action
     will be taken by the Board.   Requests that are not
     authorized by law will be refused."

          Under the above motion, the Board, at a meeting
     held December 30, refused to approve your request on
     the following requisitions:

     Nos. 41, 40, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51,
     52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64,
     65.   The Attorney General states that these requests
     could not be considered "official business" and quotes
     Sec. 14, Chapter 25, Pg. 83, Acts of 1.934.

                              (Signed)  Walter W. Mulbry
                                        Executive Secretary

     The requisition numbers named are for requests of following
members of the Staff: W. D. Nichols, Howard Tilson, W. A. Price,
W. D. Valleau, E. N. Johnson, C. 0. Eddy, E. M. Emmert, E. N. Fer-
gus, W. W. Dimock, John S. Gardner, C. G. Latimer, Elmer G. Sul-
zer, A. J. Lawrence, 0. T. Loppius, R. H. Weaver, M. Scherago,
J. W. Manning, Amry Vandenbosch, Neil Plummer, Morris Caldwell,
Frank Murray, Louis Clifton, F. W. Warburton, William S. Webb,
Mrs. W. T. Lafferty and D. V. Terrell.

     It was suggested by the Chairman that President M.ncVey ask
the Attorney General and the Finance Board for reconsideration
of the requests for travel allowance named above, and give his
reasons why they should be allowed.




 






10.



     9. Hoflick vs University of Kentucky.

     In order to state correctly the status of the suit of Hoflick
vs University of Kentucky referred to in'Section 15, Minutes of
December 17, 1935, the following was ordered recorded in the Mlin-
utes of this meeting:

     a, On November 8, 1935, Mr. William R. Attkisson, Assistant
Attorney General, wrote the Business Agent:

          "We are returning herewith summons in the case of
     J. E. Hoflick vs. University of Kentucky. We under-
     stand that the University has regularly employed local
     counsel in Lexington, and we would advise that they
     handle the matter.   If this is not satisfactory to you,
     please return summons together with a copy of the peti-
     tion from the clerk's office.   It would be probably
     better for the local counsel to try the case as they
     are more familiar with local conditions and juries."

     b. This letter was given to the Chairman of the Executive
Committee, Richard C. Stoll, and on November 15th, he wrote to
Mr. Attkisson, Assistant Attorney General, as follows:

          "The University of Kentucky has handed to me
     the correspondence relative to the above styled
     case.   Under the law, as I understand it, it is the
     duty of the Attorney General's office to defend this
     suit.

          "The University has no legally employed local
     counsel in Lexington, although I am really of the
     opinion that the business of the University is so
     considerable that they should have local counsel to
     attend to its business, but, as I understand the law,
     such counsel cannot be employed.

          "I agree with you that it is always better for
     a local counsel to try cases, or at least have a
     local counsel to be associated with foreign counsel
     in the trial of any case, however, in view of the
     Acts of the Legislature of 1934, and prior Acts, I
     do not see how the University can employ local coun-
     sel, except possibly with the consent and direction
     of the Attorney General, and, of course, you know
     it is very difficult to get a lawyer to do something
     for nothing.



"I am enclosing copy of the petition.




 







          "The summons in this case was served on Dr.
     Movey. He is not an officer of the University,
     but he is President of the University.   The Uni-
     versity is a corporation, its Board of Trustees
     constitute its Board of Directors and the Governor
     of Kentucky 'Ls Chairman of the Board and I am Vice-
     Chairman, and I assume that I am the principal of-
     ficer of the corporation in Lexington, so in order
     to put a choke under the wheels I have thought wise,
     if you agree with me, to have Dr. McVey make a motion
     to quash the return of the summons upon him, because
     he is not an officer of the corporation.     I am en-
     closing herewith a copy of that motion, which I will
     ask him to file.

          "I am also enclosing summons in the case.

          "I am rather inclined to the opinion that under
     the opinions of the Court of Appeals, the University
     of Kentucky is not liable for tort actions.

          "I would  be glad to hear from you."


     c, On November 15th Mr. Attkisson wrote Chairman Stoll as
follows:

          "In reply to your letter of November 14, 1935,
     with reference to the above styled action, we have
     filed a general demurrer.    The copy of the former
     which we had sent to us did not of course show the
     return made by the sheriff.

          "We feel as you do, that there is no, cause of
     action stated by the petition and will rely mainly
     upon the case of Zoeller vs. State Board of Agricul-
     ture, 173 S. W. 1143, 163 Ky. 446.

          "It has always been my opinion that some provision
     should be made by law to enable the several State Insti-
     tutions of higher education to retain their own attorneys.
     General Wootton does not wish t3 put the State to the
     expense of outside counsel In this case.

          "With kindest regards, I am,"


     d. Before receiving the letter of Mr. Attkisson, Chairman
Stoll filed a motion to quash the service of summons upon Dr. Mc-
Vey upon the grounds that he was not an officer of the University,
but the demurrer filed by Mr. Attkisson entered the appearance of
the University and, of course, the motion filed is of no avail.

     This case is now pending upon the demurrer.




 





,2 .



     e. Chairman Stoll wrote to the Attorney General of Kentucky,
on January 10, 1936, the following letter:

             "On October 29, 1935, an action was filed
        against the University of Kentucky by J. E. Hof-
        lick for damages.   A copy of the petition was
        sent to the Attorney General and Mr. William R.
        Attkisson, Assistant Attorney General, for the
        University of Kentucky, filed a general demurrer
        and filed a brief.   This question is under sub-
        mission in the Fayette Circuit Court.

             "Of course, you know under the law the Uni-
        versity has no authority to employ counsel to
        represent it in this case, except under certain
        conditions, and that it is the duty of the Attorney
        G-eneral's office to represent the University.

             "We will be very glad indeed to aid your of-
        fice in any way possible in this matter.

             "I am writing you this letter, however, to
        advise you that this case is pending. "





     f. On January 11, 1936, Chairman Stoll received from Attorney
General B. M. Vincent the following letter:

        "This is to acknowledge receipt of your communi-
        cation of the 10th inst., regarding the suit of
        J. E. Hoflick v. University of Kentucky which, as
        requested by you, will receive our investigation
        and attention,

      "With best wishes, I am,"


      10, Harvard University Tercentenary Celebration,

      President McVey presented a letter from the Director of the
Harvard Universaty Tercentenary Celebration inviting the Universi-
ty of Kentucky to participate in the celebration of Harvard's
three hundredth anniversary to be held at Cambridge September 16,
17 and 18, 1936.   On motion of Wr. Cooper, seconded by Mr. Wells,
which carried by a unanimous vote, Governor A. B. Chandler and
Judg e R. C. Stoll were named to represent the University of Ken-
tucky at the celebration,   Each of them accented, expressing ap-
preciation of the action of the Board, whereupon President McVey
was authorized to send to the director of the celebration a card
of acceptance, naming the representatives.




 




13.



     11. The Association of Governing Boards.

     President McVey presented a communication from D. W. Spring-
er, Secretary of the Association of Governing Boards of State Uni-
versities and Allied Institutions, stating that the invitation of
the University of Kentucky for the 1936 meeting of the Association
to be held at Kentucky has been accepted.   The date of the meeting
has not been fixed, but the date will probably be early in Novem-
ber.   On motion of Mr. Andrews, seconded by Doctor Wilson, Pres-
ident McVey was authorized to prepare for the meeting and to
select a committee on preparation and on entertainment of the vis-
itors.   President McVey stated that as this is an organization of
Ooverning Boards it is very desirable that every member of the
University Board of Trustees attend.

     12. Purchase of Bonds for P. W. A. Program,

     a. Report of Dean Graham.

     The following report of Dean Graham was read by the Presi-
dent and it was ordered inserted in the Minutes.


                                  January 13, 1936

     President Frank L. McVey
     University of Kentucky

     My dear President MIcVey:

          In accordance with the instructions given in a reuo-
     lution of the Executive Committee of the Board of Trustees
     in meeting on December 31, 1935, I met with Mr. Fetter of
     the W. E. Hutton and Company and fir. Altfilisch of the
     law firm of Chapman and Cutler in Louisville on Friday,
     January 3, 1936, and discussed with them the proposed
     sale of bonds of the University as authorized.

          You may remember that in the Government's offer of
     purchase of bonds that in addition to payments on Principal
     and interest they required the first ten years of the life
     of the bonds that a special or cushion fund should be accum-
     ulated at the rate of approximately $7,000 per year for the
     period of ten years and that this fund should be held In-
     tact throughout the life of the bonds.   I discussed this
     item with both Mr. Fetter and M1r. Altfilisch and tentative-
     ly they agreed to remit the accumulation of this fund.

          You may also remember that in the Government's offer
     of purchase of bonds they made definite appropriation of
     the funds to be expended on each building.   I discussed
     this with Mr. Fetter and Mr. Altfilisch and they agreed
     to make the expenditures of the bond funds accruing more
     flexible as distributed to the cost of the four proposed
     buildings.




 





1-.



    They presented me with a schedule of maturities,
which, upon examination, showed as follows:

    Average maturity 19-1/2 years
    Coupon interest rate 3%
    Number of bonds to be delivered 636, at a purchase
      price of 94.30 and an interest rate of 3.4% per
      annum.

      I pointed out to these gentlemen that in present-
ing their bid and during the discussion of the matter
in the Executive Committee only the following setup
was mentioned, to wit:

     Average maturity 17-1/2 years
     Coupon interest rate 3% per annum
     633 bonds to be delivered (631 bonds mentioned
       in the meeting was an arithmetical error)
     Price of bonds to be 94.76
     Rate of interest 3.4%.

     I told these gentlemen that I had no personal
objection to the 19-1/2 years but that this automat-
ically lowered the price of the bonds and increased
the number of bonds and that I had no authority to
consent to such a change and requested that they re-
calculate on the same rates and basis used in the
meeting.   On Tuesday, the 7th, they submitted another
list, a copy of which I have furnished you.   This is
based on an average maturity of 17 years and 4 months;
3.4% annual interest; price of bonds 94X79; number of
bonds 634, which would net to the University
$600,968.60.   After discussing this with you, I con-
curred in having this schedule included in the draft
of resolution to be presented to the Board of Trus-
tees, as this schedule complies with the bid present-
ed on December 31 and accepted on that day by the Ex-
ecutive Committee.

     You will note that the average yearly payment
of interest on this schedule is $31,607.54.   This
compares with $32,500 submitted in the schedule of
Friday, January 3.

     Under this schedule the University will deliver
634 bonds and will pay an interest throughout the life
of the bonds of $330,030; therefore the total principal
and interest payments will be $964,030.   You will re-
member that the total similar charges under the Govern-
ment's offer for these bonds was $1,049,200; therefore
the sating to the University under the current offer
of W. E. Hutton and Company is 884,170.   The bid of
W. E. Hutton and Company for the bonds was lower by
$10,400 than the next lowest bid.




 



15.



         I attach hereto the proposed draft of resolu-
    tion prepared by Mr. Altfilisch for presentation
    to the Board of Trustees, which draft arrived at
    this office this morning.   I invite your attention
    to the schedule of payments and the bond fund set
    up on page 7 of this draft.   As said before, they
    tentatively agreed to remit the accumulation of a
    reserve fund of approximately $70,000 but in this
    draft they have set up one of approximately
    $30,000, a part of which is to be accumulated dur-
    ing 1937.   As this item is a form of insurance to
    protect both he Trustees and bond holders on inter-
    est payments for at least one year, I recommend it
    be accepted as written.

                           Yours truly,


                              (Signed) James H. Graham
                                        Dean


     b. Resolution.

     On motion of Mr. Cooper, seconded by Doctor Wilson, the
following resolution was passed by unanimous vote, each member
present voting in favor of the resolution when his name was
called.   The resolution was signed by the Chairman of the
Board and attested by the Secretary of the Board in open meet-
ing.


         A RESOLUTION making revised provisions for
         the issuance and sale of Building Revenue
         Bonds of the University of Kentucky in ac-
         cordance with Chapter 72 of the Acts of the
         General Assembly of Kentucky, 1934, to pay
         the cost of const