xt7hdr2p6251 https://exploreuk.uky.edu/dips/xt7hdr2p6251/data/mets.xml Lexington, Kentucky University of Kentucky 19511118 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, 1951-11-dec18. text Minutes of the University of Kentucky Board of Trustees, 1951-11-dec18. 1951 2011 true xt7hdr2p6251 section xt7hdr2p6251 










     Minutes of the Meeting of the Board of Trustees of the Uni-
versity of Kentucky, December 18, 1951.

     The Board of Trustees of the University of Kentucky met in the
President's Offiee at 10:15 a.m., Tuesday, December 18, 1951.    The
following members were present: Guy A. Huguelet, Mrs. Paul G. Bla-
zer, Harper Gattorn, Dr. W. M. Coffee, Carl Dempewolfe, H. D. Palmore,
George M. Cheek, Boswell B. Hodgkin, and Herndon J. Evans.     Absent:
Governor Lawrence W. Wetherby, Ben S. Adams, Paul M. Basham, J. C.
Everett, R. P. Hobson, and J. Woodford Howard,    President Donovan
and Comptroller Frank D. Peterson met with the Board.


     A. Approval of Minutes.

     The minutes of the Board of Trustees of September 18, 1951;
and the minutes of the Executive Committee of October 20 and Novem-
ber 23, 1951, were approved as published.



     B. Report of the Comptroller.

     The Comptroller submitted the following report:




 







                UNIVERSITY           OF KENTUCKY


                            LEXI NGTON


                                       December 15, 1951



Dr. H. L. Donovan, President
University of Kentucky
Lexington, Kentucky

My dear Doctor Donovan:

     I submit hereto attached the financial report of the Uni-
versity of Kentucky for the period July 1, 1951, through November
30, 1951.   The report consists of a balance sheet and related
summaries, covering University fund transactions for the period
of five months.

     The income realized during the period amounted to $4,093 817.43.
This amount was 58.65% of the budget estimate of $6 980,054.6-4
General fund expenditures and encumbrances totaled ~2,928,076.87,
which is 40.77% of departmental appropriations approved in the
amount of $7,182,490.87.

     Plant fund expenditures and encumbrances amounted to $154,873.81
during the period, or 30.12% of the $514,171.21 budget estimate.

     The Restricted Fund balance, including investments of $703,251.49,
amounted to $i,985,968.16.   The funds were credited as follows:-

         Division of Colleges                  $1,740,152.86
         Agricultural Experiment Station           92,485.80
         Agricultural Extension                   153,329050
                 Totals                                68.16

     Other fund balances amounted to $394,213.46, of which $290,081.q6
was invested in securities.   These funds were credited as follows:


                          Principal     Income     Totals

    Loan Fund           $ 62,797.61   $ 22,940.70 $ 85,738.31
    Endowment Fund       200,228.18      2,619.42 202,847.60
    Agency Fund                        105,627,55  105,627.55


                                   Respectfully submitted,

                                   (Signed) Frank D. Peterson
                                            Comptroller.




 






University of Kentucky
    BALANCE SHEET
As of November 30, 1951

        ASSETS



Agricultural
Experiment
Station



Agricultural
Extension
Division



Current Funds:
General:
Cash in Bank     $
Petty Cash Adv.
State Allotments:
  Current Year
  Prior Year
  Revolving Funds   I
  Receivables
  Inventories
  Deferred Chgs.
  Unreal.Income     I
  Total General   3

  Restricted:
  Cash in Bank   $ 1
  Petty Cash Advs.
  Investments
  Tot.Restrict. r
  Tot.Current     5

Plant Funds:
Unexpnded
Cash Tn Bank    $
Revolv.Funds
Rec eivables
Unreal.Income
  Total Unexp.  7

Investment- In Plant:
Construction Au-
   thorized
Fixed Assets     28
Tot.-Invested
Tot.-Plant



Other Funds:
Cash in Bank    $
Notes Receiv.
Investments
  Tot.-Other
     Funds
  Total Assets ~



14,819.67
  560.00



631,600.35
   8,430.48
1,095,828.64
  17,408.60
  504,181.02
  111,768.20
L,9598,618.97
3,083,215.93

1,045,717.09
  12,802.60
  688,251.49
,,746.,7(1.15l
,,729,957.11



282,187.11
_23,:588 .44
30,    :55



3 ,580.431.72
I., 5W60431.72


  Loan


  4,325.26
  5,913.05
  75,500.00

  85j783



$  82,358.45


   175,233.83
      541.02
  302,742.41

  41,693.00



$  70,867.99



$



81,087.03
  765.78



168,046.11
     560.00

 887,921 .21
   9,737.28
1,398,571.05
  17 , 408 60
  545,874.02
  111,768.20



   526,o68 55      738,161.25   2,862 ,848 77
   $ 1 12, 3Z.26 $   930,U2.05     PO273_2


$  77,o85.80    $  153,329.50 $ 1,276,132.39
      400.00                      13,202.60
    15,OOQ 00                     703,251,49
       92,465-80  $  153,329.50  ;$ 1,99.2 56.4"
$1,221,S123.O     $  06 41,211F  ,ELb

      $~ ~ ~~   ~~~~5 $       $,9.217:

  105,015.63   $                 387,202.74


$ 105,-077 *           $         -129L:




$23907,416.L3   $            $3-,487848.45
12,90O7,416.73  $             ,3-4r.   4.
;3,012,432.~ 3-$ 31,d9b 439.6

Endowment         Agency


$   3,265.64    $  90,627.55 $    98,218.45
           199,    15,000-00      ~5,913.05
                       15,000.00   290,081.96

  $  202,84i.6o  $ 105,627.~551  0,2844.81
                   i ' 6~40,287974,9 8i



Division
   of
Colleges



Total




 







University of Kentucky
    BALANCE SHEET
As of November 30, 1951

      LIABILITIES



Agricultural
Experiment
Station



Agricultural
Extension
Division



Current Funds:
General:
Petty Cash Liability $
Res for Encumbrances:
Current Year
Prior Year
Res.for Inventories
Other Liabilities
Unapprop.Surplus
Approp. Bals.

  Total General     $



   17,968,60

   211,649.o6
   59,550.70
 504,181.02
 111,768.20
 467,705.81
2,610,392.e54

3,983,215.93



   82 ,88810
     6,724.85
   41,693.00

   241,575.54
   7J55 55 77
$1,128,637.26



$



  2,616.36
888,265.69



$    17,968.60

    294,537.16
    66,275.55
    545,874.02
    111,7068.20
    711,897,71
  4,254,414.00



$ 890,882.05    6



Restricted:
Outstand.Cks.
Restr.Bals.

   Total Restr.
   Total Current

Plant Funds:
Unexpended:
Res.for Encumbrances
  Current Year
  Prior Year
  Surplus Funds
  Approp.Bals.

  Total Unexpended

  Investment in Plant:
Bonds Payable
Net Invested

   Total Invest.
   Total Plant



Other Funds:
Bal, as to Prin.
Bal. as to Income
   ToteOther Funds
   Tot.Liabilities



6,618.32



$



$



$    6,618,32



  1,740 152.86      92,485.80     153,329-50   1,985,968.16

$1,746771018    $   92,485.80  $  153/ 32950 $ 1,992,586.48
$ 5,729-,9d7-:72-1, }12    06   1044,211n'55



-$      742.87   $   15,446.77  $             $    16,189,64
                      6,482,87                     6,482.87
     23,780o25       4,841.02                     28,621.27
     281,052.43      18 J 4.97_                   359 297e40

  $ 305?,575-55 $  105-,2L5r63 $             $   410,591.18


$ 2,822,500,00                                  2,8922,500.00
25,2757,931,72 $2,907,416-.73 $             $28,b65-z    49

        $2,5o 43.1$,97,1673$                  $31,487,848.45
        007.27          32,3    $  

    Loan          Endowment        Agency


$    62,797.61  $   200,228.18  $             $   263,025.79
     22 v 940 * 70   2 g 61Q 442                  28 627581
$  ' 5 73' e31  $   02      O76 $  ''1-0-5'bS7        25-3135-46



Division
  of
Colleges



Total



$




 







         University of Kentucky
     STATEMENT OF--UNREALIZED INCOME
For the Current Fiscal Period which Began
July 1, 1951, and Ended November 30, 1951

             General Fund



Budget
Estimate



Realized
to Date



Unrealized
Balance



Division of Colleges:
Educational and General:
  State appropria~tons
  Federal grants (through
     the state)
  Student fees
  Endowment income
  Sales & Services and rentals
             Subtotal


Auxiliary Enterprises:
Residence-halls
Miscellaneous
             Subtotal

             Total Colleges

Less-Income allocated to plant
            Net-Colleges



$2,714,40oo.o

   127,617,87
   893,670.00
     9-644.50
     19 700 13




$ 327,874,oo0
   116.*930 o 5O


$4,209,837100

j$ 222'l8:oo



$1,755,304.17 $ 959,095.83



92,316,15
574,087.24
  4,832,25
  9,515.65



35,301.72
319,582,76
  4,812,25
  10,184.48



$  169,280.00  $  158,594.0o
     5,882,e57    111,,047 093
   $  175,lb2.57$  2b)9l.bl.2 1e  

$22218,03      $1,598,6189
$ 222,18.0o
12~b,500O3
   59.1%7



Agricultural Experiment Station:
State appropriations           $  382,6o0o00
Federal grants (direct)           308,852.21
Sales and Services                49o,141.oo
      Total-Experiment Station   1l1      -2


Agricultural Extension Division:
State appropriations           $  406,60000C
Federal grants (direct)
     Total-Agr. Extension



General income allocated
Stores overhead
       Total-Plant

       Combined Total



  Plant Fund

$  222,7180.0
    29,042,50


6980 054,64



$  297,348,0oo
   153 203.20
   o04,973.46

 55.b

 $  246 600.00
   _574,82068
$ b2l,420.bb
52b7



$  222,718.00



4 093,88-7,43
   52   5



$   85,252,00
   155,649.01
   285,9167 X54




$  160 s000 a,00
  _578,i61 o25





$  a23 388.44
4 .36,43b .4

$2,886223.21




 








         University of Kentucky
STATEMENT OF DEPARTMENTAL APPROPRIATIONS
For the Current Fiscal Period which Began
July 1, 1951, and Ended Novembera 30, 1951

               General Fund



Depart,
Appro..



Expendi-     Encum-        Approp.
tures        brances       Balances



Division of Colleges:
Adm. & Gen  r -Expe-nse:
  General:admi.offices
  Student welfare
  General expense
       Subtotal

Instruction & Research:
College of -:
  Arts & Sciences
  Engineering
  Commerce
  Agr. & Home Economics
  Law
  Education
  Pharmacy
  Graduate School
  University Research
  Library
  University Extension
  Other activities
        Subtotal

Operation & Maintenance
  of Physical Plantetc,:
  General appropriation
  Special appropriations
  Work in progress
  General stores, etc.
        Subtotal

Auxiliary Enterprises:
Residence Halls
Miscellaneous
        Subtotal

     Total-Colleges



$  202,186,95
    6o, 556 o05
    85.535 .06



$   80, o46,,98
    26, 313 ,70
    37,001,91



$ 2,332,03 $
   2,807;44
   6,718,46



119,807o94
31,434o91
41,81)4o69



$1,295,297.79 $  490,923.23 $ 27,960.90 $  776,413.66
   350,300,78    123,498e24    5,928;.15   220,874-39
   159,728,o00    62,083.86      696,75     96,947.39
   211,687,54     81,583,87   -1,139,51    128;964.16
   59,513,75     22,802.92       48,12     36,662.71
   292,279e27    108,932,33    5,944,86    177,402.o8
   76,269,00     25,310,95    5,473,36     45,484o69
     9,430,00      3,943,29       11,40      5,475,31
     24 000,00      30230Q34      349,20     20,420.46
   223,185,51     90,464000   14,014,29    118,707.22
   113,266,12     34o000,45    3,761,60     75,504,07
   23,734.00      5 I695-35   6,307-.10    11,731--i5

                          39 16303


$  684,393,00 $  214,828,33 $ 89,617.69 $  379,946.98
    60,00oO0,0       696,77    2,982.00     56,321,23
    25,000,00     36,591,58                 11,591,58*
    27 20000      25 214,66*                52j464.66-
         3    $  292, 2 ; 92, 59        $47


$  285,767,00 $   93,824,40 $ 34,197,75 $  157,744,85
    79,809,95     10,590o33    1,358o45     67 861 17

                         3 o 29%
$4,349.91,8,77. 1527,14817 $2-11,649.06 $2,610,392,54
                         399     e



*Negative number,




 







         University of Kentucky
STATEMENT OF DEPARTMENTAL APPROPRIATIONS
For the Current Fiscal Period which Began
July 1, 1951 and Ended November 30, 1951

              General Fund



Agricultural Experiment S



Depart.
Approp,

,tation:



Expendi-
tures



Encum-
brances



Administration
Agronomy
Animal Husbandry
Animal Pathology
Creamery License
Dairy
Dairy Cattle Improvement
Entomology and Botany
Farm Economics
Feed and Fertilizer
Home Economics
Horticulture
Markets & Rural Finance
Poultry
Publications & Library
Public Service Labs.
Regional Research
Robinson Substation
Rural Sociology
Seed Stocks
West Ky. Substation
Library
Social Security
West Ky. - G.I.
  Total-Agricultural
    Experiment Station t



*   ,-170-473,00
  202,454o00
  78,490.oo
  60,050 .00
    9,291.00
    50,335,00
    15,000.00
    79,330,00
    61,685Q00
  190,000o00
  18, loo. o o
  44, 1800000
  79,331,00
  35, 388.00
  23,155.17
  32, 250.00
    8,325,00
    22,400,00
    32, v242.00
    7,000,00
    41,900.00
    9,340.00



23 000 00



41,7-48.55
74,414,38
40, 502,36
22, 305 .33
3,608 72
18,506.87
6,355-31
30,381,43
24 516,28
38, 392 o72
6,513,23
16,455,63
33,241.90
14,451.08
3,230.81
11,861.45
2,968,64
7,414,72
12,253.47
2, 850.00
15,156.45
2,832.65
3,478,32*
1, 635,00



1, 273,719.17 $435,075)30



40,b7%



$  3,314e58
   2,371 ,68
   8,847,12
      40,00
      301o06
   5,722o62
     288.24
     645 .88

  38,412,70

     294.62
     37,19
     595,14
     881,90
     74,25

   1,988 .35
       8.o5

  14,330.48
  1,083e95

  3 650. 29

$ 82,s888 e 10



$ 105,409.87-
  125,667.94
  29,140.52
  37,704. 67
    5,.381.222
    26,105.51
    8,356.e45
    48,302.69
    37, 168.72
  113, 194. 58
  11,586.77
  27,429.75
  46,051.91
  20,341178
  19,042.46
  20, 31430
    5,356.36
    12, 996.93
    19,980.48
    4,150.00
    12,2413e07
    5,423,40
    3,2478.32*
    17,Z14.71

$ 7551755,77



*Negative number.



Approp.
Balances




 








         University of Kentucky
STATEMENT OF DEPARTMENTAL APPROPRIATIONS
For the Current Fiscal Period which Began
July 1, 1951, and Ended November 30, 1951


              General Fund



Depart.
Approp.



Expendi-
tures



Encum-
brances



Agr. Extension Division:
A iinistration       $
Agr. Engineering
Agronomy
Animal Husbandry
Clothing
County Agents
Dairy
Farm & Home Conven.
Farm Management
Forestry
Foods
Home Dem. Agents
Home Management
Horticulture
Junior Clubs
Markets
Poultry
Publications
Public Information
Rural Sociology
Social Security
Adm.Res.



62,192,00
28, 988. oo
35,687,50
22,708.o00
12, 264. 00
703,011,52
21, 268 e00
  1,500,00
  14,904o00
  10, 436,00
  11,632.00
431,175.98
29, 840 o.o0
18,344,00
78,204o00
13,453,00
21,444.00
13,888,00
19,296o00
5,620,00

3,725.93



$



23,029.83
  9,791, 77
  14,983.20
  9,493,26
  4,700,30
309,817.95
  8,476,46

  6,074.95
  4,297,80
  4,700,52
198,856,20
11,657.19
7,515 o76
31,362,75
  4, 872.81
  8,483,81
  2,300,-Ol
  7,521,82
  2,611,70
  768,15



d.



$  39,162.17
   19,196.23
   20,704 .30
   13,214e74
   7,563.70
   393,19.3.57
   12,791 a54
   1,500.00
   8,829-05
   6,138.20
   6,931.48
   232,319.78
   18,182.81
   lo,828e24
   46,841.25
   8,580.19
   12,96.0. 19
   11,j587.99
   11,774. .8
   3, 008.30
      768.15
    31725 v93



Total-Agricultural
      Extension
      Div.



$1,559,581.93 $



671,316624



$ 888,265.69



43.04%


O4e 77  



Combined Total



$7,182,490.87



2$  !437,16  4 2 4    .414.00



*Negative number.



Approp.
Balances




 








         University of Kentucky
  STATEMENT OF OTHER FUND TRANSACTIONS
For the Current Fiscal Period which Began
July 1, 1951, and Ended November 30, 1951



Balance
July 1,1951



Disburse-
ments



Balance
Nov.30,1951



Restricted Funds:
Div. of Colleges
Agr. Exp. Station
Agr. Ext. Division



Subtotal



$1,471,738.78
   54 ,158 .96
   150,152. 84

$f 6769050 58



$1,448,947.79 $ 640,266.85 $2,280,419.72
   113,452.72    37,562.94   130,048.74
   103-L34682i   50,o85,eo8  203,414.58

$1,665,747.33 $ 727,914.87 *2,6132883.04



Loan Fund:
Principal
Income



$   62,797.61
   22,38519



Subtotal



Endowment Funds:
Principal1
Income

        Subtotal

Agency Funds:
Balances



$ 199,928.18
     2,645.67

$ 202,573.85


$   69,-939-.86

$2,033_,747,09



$;



$



$   6-2,797.61



        565,23         9.72     22,940.70

$  - -565.23    4      9J 2 $   85,738,31


$       300.00 $            $  200,228.18
         85.75       112.00      2,619,42

$       385.75 $     11200         4



$   402S129.17 $ 183.220.74 t 288,848.29



$2oT  068,827,,48  _ 911,257.33 L3 121  1.24



Receipts



combined Totals




 








                   University of Kentucky
       STATEMENT OF COMBINED RECEIPTS AND EXPENDITURES
       For the Current Fiscal Period which Began
         July 1, 1951, and Ended November 30, 1951



Receipts and Transfers:



General Inc-ome
Plant Income
Restricted Receipts
Loan Fund Receipts
Endowment Fund Receipts
Agency Fund Receipts



$4,093,817.43
   228,372.o6
 1,665,747.33
       565.23
       385.75
   402,129.17



      Total Receipts


Expenditures and Transfers (Including
                  Encumbrances)

General Fund Expenditures
Plant Fund Expenditures
Restricted Fund Expenditures
Loan Fund Expenditures
Endowment Fund Expenditures
Agency Fund Expenditures



Total Expenditures



$2,928,076.87
   154,873.81
   729,914.87
         9.72
       112.00
   183,220.74

13,996,20o8.1




 







         University of Kentucky
    STATEMENT OF PLANT APPROPRIATIONS
For the Current Fiscal Period which Began
July 1, 1951, and Ended November 30, 1951

               Plant Funds



Dept.
Approp.



Expendi-
tures



EncuM-
brances



Division of Colleges:

P.W.A. First Bond    $ 36,477.19
      Issue
 P.W.A. Second Bond
      Issue             16,781.73
Dorm. Rev. Bond Issue  23,524.00

Audit-Fieldhouse IssuelO2, 648050



Lib. & Serv. Bldg.
     Bond Issue
Stadium Rev. Bond
     Issue
Dorm.Issue-Rose St.
     456
Journalism Bond Issue



46,538,27


23,274200

4a 108.842
16,723e00



$     641.65    $



8,398.46
3,902.50



50,793.75

6,973075



$ 36,4125154



8,383.27
19 , 621.50

51,854.75

39,564.52



19,224.00

1,0o49.67
16,723.00



4,050,00



3,058.75



Dicker House Annuity



Fieldhouse



Norwood. Hall Fire Loss
     Bal.



Purchase of Land &
     Bldgs.



Serv.Bldg. Constr.

Fine Arts Bldg.



Dairy Center



Journalism



Add. to Col. of Ed.

New Science Bldg.

Dorm.Constr.-Rose St.
     476



Lib.& Serv.Bldg.
     Clearance
Sprinkler System



3,300.00



4,513.14



3,115,00



  19,266.58
  4,443-32  
$402,4b



13872.1



3,300.00



              1,398,14

              19,266.58
              4,443-32
---   . 1  $  11 1111 2- 2
          10        I



Free
Balance



230.68



30,250.27



15,911.25



230.68



30,250.27



11,000000

2,159,147



15,911.25



7,302.81



59,094,99



3,697.19

2,159)47



50,789.84



742.87



7,562.28




 








        University of Kentucky
    STATEMENT OF PLANT APPROPRIATIONS
For the Current Fiscal Period which Began
July 1, 1951, and Ended November 30, 1951


              Plant Funds



Dept.
Approp.



Expendi-
tures



Encum-
brances



Agr. Experiment Station:

Animal Path. Bldg.



Repairs & New Equipment

W. Ky. Tobacco Barn

W. Ky. Water System



$ 1,880,75

    194.148



200.00



$



$    245,00  $ 1,635.75



200.00



Agr. Engr. Bldg.



Sheep Barns



Brooder House



Miscellaneous

  Subtotal

  Combined Total



2,500.00



  17,856.oo

  3,704 .83

$ 93,926.40

$514417-1.21



162.66



            2,500.00

4,801,77   12,891.57
                    *



    _72.00       d4o0      14 1417683

$     234.66  $  15,446.77 $ 78,244,97

1 138,684.17  $  16,189.64 $359,29140
         30.12%



*Expenditures and encumbrances in excess of appropriation or negative figure.



Free
Balance.



75,000,00



75,000.00




 











     The report was read and examined, and upon motion duly made,
seconded and carried, authorized received and made a part of the
minutes.



     C. Cafeteria and Residence Hall Prices Increased.

     The Comptroller reported that prices were last raised in the
Student Union Cafeteria in June, 1947.   Since that year the retail
food index has increased 33.5% and the wholesale food index, during
the same period, has increased 21.2%.   He stated that, during the
last two months, case goods have advanced on most items 25/ to 75/
per case.   The average cost per meal in the Cafeteria currently is
64/ per meal, based upon customers for breakfast, luncheon and
supper.

     The Comptroller cited figures to show that the wage rate at the
Cafeteria is much lower than that currently being paid by similar
establishments in this vicinity,

     The rates in the Women's Residence Halls were raised in July,
1949, from $180.00 to $200.00 per semester per student, and the av-
erage cost per meal to students residing in the residence halls cur-
rentlyis .326 per student per meal.

     The Comptroller further reported that, during the current fis-
cal year, many of the kitchen, dining hall and grill employees had
left to take jobs elsewhere at higher wages, and that many trained
and dependable wage earners were leaving for other jobs.   He recom-
mended that some price adjustments be made in the Student Union
Cafeteria on food items; that room and board costs in the Women's
Residence Halls be increased to $220 per semester per student, and
that merit increases in wages of employees in the cafeteria, dining
hall and grills be made.

     Members of the Board expressed the thought that the prices
had been kept surprisingly low, and that students in the University
have received good food at very low costs.

     Upon motion duly made, seconded and carried, the Comptroller
was authorized to make merit increases of employees in the cafeteria,
dining hall and grills, effective January 1, 1952; that line prices
in the cafeteria be adjusted as of January 3, 1952, and that the
cost of room and board in the Women's Residence Halls be fixed at
$220.00 per semester per student, effective the second semester of
the current year 1951-1952.




 










     D. Budget Changes,

     President Donovan submitted list of changes in the University
Budget which have been approved subject to authorization by the
Board of Trustees,

     He read the list of increases and decreases and reported that
the net increases amounted to $2,926.89.  He recommended that the
budget changes be authorized.

     Upon motion duly made, seconded and carried, the recommendation
of the President was concurred in, and the Comptroller was authorized
to make the necessary budget adjustments.



    E. Or4anization and Administration of Athletics at the Uni-
versity.

    President Donovan read a statement on the organization and
administration of athletics at the University since 1945.


         In November, 1945, the Board of Trustees of the University
    of Kentucky entered into an agreement with the University of
    Kentucky Athletic Association, which had recently been incor-
    porated to "conduct in a careful and proper manner athletic
    contests with approved teams representing other colleges and
    schools".   Since there are several of the Trustees on the
    present Board who were not members at the time of the agree-
    ment, I have thought that it is desirable to review that
    agreement in order that you may be thoroughly cognizant of
    the organization of the Department of Athletics at the Uni-
    versity of Kentucky.

         There was a public demand, and a very vocal one, that
    the quality of football at the University be improved, at
    least to such an extent that the University's teams could
    win a reasonable number of games in the Southeastern Confer-
    ence,  For some years the Kentucky teams had been ranking
    at the very bottom of the list of the twelve universities
    in this organization.   We took the position that if Kentucky
    was to participate in inter-collegiate football, its teams
    should be as good as the average team in the Southeastern
    Conference,

         There were probably a number of reasons accounting for
    the low rating.   The principal one, however, was that in
    1945 the salary of an employee of the University could not
    exceed $5,000,   This was a Constitutional limitation which
    the Court of Appeals had only recently declared applied to
    the University.   This limitation meant that it was impossi-
    ble to employ one of the well known, successful coaches of
    this country to take charge of our football team.   In order



14i




 











to overcome this handicap, as well as some other difficult
problems, the members of the Board of Trustees and a number
of other interested citizens at that time considered the
desirability of forming an athletic association and incor-
porating the same, as a nnumber of other prominent universi-
ties had done, to take over the difficult assignment of
managing and financing a desirable athletic program for the
University of Kentucky.   Much study went into the planning
of this program.   A corporation was formed consisting of
eleven members, with the President of the University as Presi-
dent of the Corporation.   In order to guarantee that the
athletic program would be left under the control of the faculty,
the President of the University and five members of the Universi-
ty Faculty should be on the Board.   The Articles of Incorpora-
tion also required that the President of the Student Government
Association, one prominent alumnus and one member of the Board
of Trustees should be appointed to serve on the Board.   The
Attorney General was asked to review the agreement between
the University and the University of Kentucky Athletic Associa-
tion and he gave it his legal sanction,

     The Athletic Association immediately entered upon a cam-
paign to raise $100,000 for the purpose of carrying out this
agreement with the University.   The campaign was exceedingly
successful and in a short period of time the Athletic Associ-
ation had gifts and donations amounting to something over
$112,000.

     Shortly thereafter the Association employed Coach Paul
Bryant and the assistant coaches which he recommended.   Coach
Adolph Rupp had been eminently successful in basketball for a
number of years and his services were continued uninterrupted.

     Mr. Bernie Shively was made Director of Athletics and he
was put in general charge of the total athletic program as an
employee of the University and not as an employee of the Ath-
letic Association.   He was given the responsibility of seeinig
that an athletic program similar to the programs of other uni-
versities of the Southeastern Conference was maintained, and
that all rules and regulations of the Conference to which we
belong were complied with, that the business of the Association
was conducted in an efficient manner, and that the rights of
the University were at all times upheld,

     In this agreement the University, for the sum of $1.00 and
other valuable considerations, agreed to allow the Athletic
Association to use property known as Stoll Field, McLean
Stadium, the Alumni Gymnasium, and later Memorial Coliseum,
where athletic events were held,

     The Athletic Association immediately installed lights
on Stoll Field at a cost of $21,965.61    In order to provide




 






16



for larger attendance at football games, the Athletic Associa-
tion purchased 8,000 bleacher seats and had them installed
at a cost of $78,796.26,   Attendance at athletic events be-
gan to increase immediately as a result of an improved football
team and gate receipts increased proportionately.

     Upon the recommendation of Governor Earle C, Clements and
the approval of the General Assembly, an addition to the Stadium
was built in 1948 at a cost of approximately $514,943.66. This
addition to our athletic facilities was made from state funds.
The attendance increased so rapidly at football games that
there was a demand. for further extension of the Stadium and under
considerable pressure brought upon the President, it was final-
ly agreed. to expand the Stadium on the south side of Stoll
Field for this purpose,   A bond issue of $300,000o00 was au-
thorized and the seating capacity of the Stadium was increased
to 38,000,   The University of Kentucky Athletic Association
was requested to assume this indebtedness and pay off the
interest and retire the bonds, which amounts to approximately
$19,84100 per year for a period of twenty years.

     For more than a decade the public had demanded the building
of a fieldhouse at the University that they might see the bas-
ketball games.   I was able to change somewhat the objective
that had been in the minds of the alumni and general public
and secured. a dual-purpose building instead of a fieldhouse.
As you know, this building is a magnificent auditorium in which
basketball and other physical education activities can be
conducted.   With practically no effort to secure these appro-
priations, the General Assembly, under three Governors, made
appropriations for this building, the total sum being approx-
imately $3,100,000,   Because of the increase in the cost of
construction after the war, it was necessary to authorize
another bond issue of $825,000 for the completion of this build-
ing and the Athletic Association was directed to assume this
indebtedness and pay the cost of the interest and bond retire-
ment, which amounts to approximately $53,962.00 per year over
a period of twenty years,   In other words, the Athletic Asso-
ciation is paying a total of $73,803.00 per year for interest
and bond retirement and this must continue for the next seven-
teen or eighteen years.

     In addition to the above financial obligations which the
University of Kentucky Athletic Association has accepted,
other improvements have been authorized; at the Stadium the
rest rooms and toilets were insufficient to take care of the
crowds and an expenditure of $10o071.45 has been made to
provide proper facilities, a cyclone fence around the athletic
field has been erected at a cost of $2,747 00 and tennis courts
have recently been completed at a cost of $11,395.29,

     The intra-mural program in which thousands of students
participate, including tennis, swimming, volley ball, fencing,




 










rifle, golf, and track has been largely maintained by the
Athletic Association.

     Since the formation of the Athletic Association, Kentucky
has won 45 football games and lost 16 and tied 2.  It has
been invited to four bowls, having won in the Great Lakes Bowl
and the Sugar Bowl, and losing in the Orange Bowl.  On Jan-
uary 1, 1952, it will play in the Cotton Bowl.

     During the same period Coach Rupp's basketball team has
won 126 and lost 10 games.   It has also won 5 Southeastern
Conference championships and 3 national. championships.  Its
record, however, has recently been marred by the revelation that
three of our former basketball players of national fame have
pleaded guilty to the charge of accepting bribes for shaving
points.   This has been a humiliating experience which has
brought much grief to all of us who have been associated with
the University.

     The Athletic Association is a solvent corporation which has
met all of its obligations and in addition has invested $250,000
in United States Government bonds in order to be prepared to
meet a "rainy day" if such a time should come, and it undoubted-
ly will come sooner or later.   It has been our desire to
have sufficient funds to take care of our obligations for a
period of two or three years in the event of war that might
eliminate athletics, or the failure of teams to attract an au-
dience sufficiently large to maintain the cost of the program,

     In the agreement of the Board of Trustees, which was
entered into in 1945, it is stated, "and, on demand of the party
of the first part (Board of Trustees), to surrender and return
the above described property to the party of the first part in
as good condition as it was received, reasonable wear and
tear and loss or injury due to casualty excepted."   In other
words, whenever the Board of Trustees should. desire to take
over again full responsibility for directing the athletic pro-
gram of the University, the corporation must turn back to it
all of its facilities,   Periodically, I think, the Board of
Trustees should carefully review this arrangement and should
determine whether or not to continue the policy agreed upon
in 1945 when it requested the Athletic Association to assume
the responsibility of directing the athletic program.

     I think the corporation has been a great success both from
the standpoint of a high grade athletic program and also fi-
nancially.   I know the men who are on the Athletic Board have
been conscientious in the discharge of their responsibilities.