<pre style="white-space: pre-wrap">xt7k0p0wqj22 https://exploreuk.uky.edu/dips/xt7k0p0wqj22/data/mets.xml Lexington, Kentucky University of Kentucky 19380717 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1938-07-jun17-ec. text Minutes of the University of Kentucky Board of Trustees, 1938-07-jun17-ec. 1938 2011 true xt7k0p0wqj22 section xt7k0p0wqj22 


Irregularities


     Minutes of the Meeting of the Executive Committee of the Board
of Trustees of the University of Kentucky, Friday, June 17, 1933.


     The Executive Committee of the Board of Trustees of the Uni-
versity of Kentucky met in President McVey's office at 10:30 a.m.,
Friday, June 17, 1938.   Members of the Committee present were
Robert G. Gordon, who acted as Chairman of the meeting, and H. S.
Cleveland.   President McVey and D. H. Peak, Secretary of the
Board, were present.

     1. Meeting of Board of Trustees Called for June 29, 1938.

     The Secretary of the Board was asked to call a meeting of the
Board of Trustees for June 29, 1938.   The object of the called
meeting is to consider important business, requiring immediate
attention.   The call as sent out is copied as follows:


     A quorum was not present at the meeting of the Board of
     Trustees June 3.   Neither was a quorum present at the
     meeting of the Executive Committee June 17.   It is es-
     sential that business considered at these meetings be
     approved by a meeting of the Board of Trustees at which
     a quorum may be present.

     There is pending before the Board of Trustees the question
     of refinancing the loan now held by the Security Trust
     Company. It appears that quite a saving may be macde by
     such action.   Also there is pending the question of fi-
     nancing further loans for the purpose of erection of an
     additional dormitory for girls; completion of the Science
     Building and other construction.   There are other matters
     pending that need consideration.

     Because of the necessity for prompt action on such bus-
     iness, Mr. Gordon and Mr. Cleveland, members of the
     Executive Committee present today, asked that a meeting
     of the Board of Trustees be called for Wednesday, June
     29, at 10:30 a.m. at President McVey's office.   It is
     very important that a quorum be present at that meeting
     and, therefore, they wvish that you make every possible
     effort to attend.   Your prompt answer to this letter
     will be appreciated.


     The business considered at this meeting set up in the forma of
minutes (a quorum not being present), and the business considewed
at the meeting of June 3, 1938, set up in the form of minutes (a
quorum not being present at that meeting), were referred for approv-
al to the called meeting of the Board of Trustees set for Julne 29,
1938.


2.


    2. Financial Report.

    The financial report for May, 1938, was produced by the Bus-
iness Agent.   The report was examined and ordered inserted in the
minutes.


             Statement of Income and Expenditures

                      Month of May 1938


Previously
Rep orted


Current
Month


Fiscal
Year
to Date


General Fund Income
Fed. Appro.-Morrill-
       Nelson
 Vocational Ed. Board
 State Appro.-Sum. Sch.
 Special Agr. Appro.
 State Appro.-General
 Int. on Peabody Endow.
 Int. on Endowment Bonds
 State Appro.-Repairs to
       Bldgs.
  Federal Appro.-Bankhead-
       Jones
  Student Fees
  Student Fees - Sum.Sch.
  Student Fees - U.H.S.
  Student Fees - El.Tr.
       School
  Student Fees - Un.Exten.
  Miscellaneous Receipts
  Rentals
  Men's Dormitories
              Total     L

Expenditures
  Instruction
  Adm.,Exp. & Maint.
  Additions and Better.
                  Total L
  Excess of Income over
     Expenditures

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


39,993.31
26,588.77
8,000.00
20,000.00
550,996.15
1,000.00
8,644.50

  7,981.73

  27,474.93
259,801.91
62,445.15
10,290.00


7, 950.00
14,310.72
8,195.22
1,788.00
17.469.12


2,756.69
3,306.60

2,000.00
61,1 86.00


7,850.54
3,924.43
    9.25
  420.00

  300.00
  637.06
1,064.59
  240.00
1.430.14


42, 750.00
29,895.37
8,000.00
22,000.00
612,182.15
1,000.00
8,644,50

  7,981.73

  35, 325.47
263,726.34
62,454.40
10,710.00


8,250.00
14,947.78
9,259.81
2,028.00
18, 899.26


072,929.51     85,125.30  1,158,054.81


747,311.97     81,830.13     829,142.10
266,507.11     20,241.92     286,749.03
21,185.24      3,238.32      24.423.56
035,004.32    105,310.37  I,140,34! 6l

37 ,925.19   (2018L.7        17 74.  


60,690.22        768.26      61,458.48
     56.77         16.00          72.77
  1,932.56   __
  62,679.55        784.26      63,463.81


3.


Expenditures
Expense                   36,
Additions & Betterments
          Total            36.
 Excess of Income over
    Expenditures           26,

General Fund Income      1,135,
General Fund Expend.     1,071,
Excess of General Fund
  Inoome over Expend.      64,
  Excess of Expenditures
  over Receipts for Gen-
  eral Ledger accounts
  Accounts Payable
  Excess of Expenditures over
    Receipts for the fiscal
    year to date - General
    Fund
  Excess of Expenditures over
    Receipts for the fiscal
    year to date - General Fund
  Cash in Bank July 1, 1937 -
    General Fund
  Cash in Bank May 31, 1938-
    General Fund


129.06
20.40


4,507.80   40,636,33
               20. -10


149.46       4,507.80   40,657.26

530.09      (3,723.54)  22,8O6.55

609.06      85,909.56 1,221,518.62
153.78     109,818.17 1.180,971.95

455.28     (23,908.631)  40,546.67


            20,568.97


89.788.13


81,269.7 6


Experiment Station Income
Hatch-Federal Appro.
Milk and Butter-Cash Rec.
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 Appr.
Public Service-Misc.Rec.
Feeding Stuffs-Fees
Adame-Federal Appro.
Serunm-Sales
Serum-Virus Sales
Serum-Supply Bales
Serum-Misc. Sales
State Appropriation
Creamery-License Fees
Creamery-TestersILic.
Creamery-Glassware Tested


15,000.00
8,905.64
   450.95
1,380.10
   889.60
 1,237.59
 1,463.23
 2,827.74
 1,063.02
 1,309.47
 27, 735.04
 3,246.70
   292.15
51, 533.50
17, 499.95
   106.00
48,423.57
15,000.00
2,459.73
   113.37
   108.14
   51.01
39, 598.62
8,765.00
3,344.40
   758.74


  964.66

  65.47
    8.11
  213.61
  93.71


    69.50
1,107.63
2,119.67
   93.62
10,466.25
1,686.11

3,469.63

   254.20
   15.75
     4.40
     26.40
 3,968.65
    43.50
    41.00
    50.48


15,000.00
9,870.30
  450.95
1, 445. 57
   8C7.7l
 1,451,.20
 1,556.94
 2,827.'74
 1,065.02
 1, 37&3a 9r"
 28, 842.6 to
 5,565. 37
   35  77? 7
61,999,75
1 9, 31. 5.D06
   1 0 6. 00
51,593.20
15,000.00
2,713.93
   129,.12
   112.54
   77.;1
43,'567.27
8,308.50
3,385.40
   809.2,'


4.


Robinson-State .ppro.       11,005.99
Robinson-Misc.Receipts       2,687.53
West.Ky.-State Appro.       11,873.48
West.Ky.-Misc.Rec.          10,935.84
Purnell-Federal Appro.      60,000.00
Bankhead-Jones-FedeApprO.   59,203.53
Nursery Inspection - State
Appro.                     1,800.00
Nursery Inspection-Fees      2,010.00
           Total           413.079.63


Expenditures
  Expense                    3 
  Additions & Betterments 8
             Total           3
  Excess of Income over
  Expenditures
  Excess of Expenditures over
  Receipts for General Ledger
  accounts
  Accounts Payable           C
  Excess of Receipts over
  Expenditures
  Excess of Receipts over Ex-
  penditures for the fiscal
  year to date-Experiment
  Station
  Cash in Bank July 1,1937-
  Experiment Station
  Cash in Bank May 31, 1938-
  Experiment Station


22,921.59
.3.598.83
56, 520.47

76, 559.16


(4,393.35)
11.535.25)


30, 630.56


730.36
399.23
665.66
306.10


180.00
170.00


11,736.35
3,086,76
12,539.14
11,241,9=
60,000.00
59, 203.53

1,980.00
2,180.00


27,213.70   440.29.33


36,000.47   358,922.06
7,230.04    20, 823.92
43,230.51   379.750.93

(16,016.81)   60,542.35


   (807.23)   (5,200.58)
             (11,535.25)

(3.6.824.04)  43,806.52


43,806.52

26,472.45

70, 27C. 97


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

Expenditures
  Expense


366,730.49
148,308.32
26,545.52
36,800.98
98,921.26
17,276.20


10,436.93
2.843.26


366,730,.-9
148, 308.32
26, 545.5'
36,800.93
109,408.19
20.119.46


694,582.77   13,330.19   707A9 1'96


-581,-022.72  -_60,109.08  641,1351.30


Excess of Income over Ex-
penditures


113,560.05


(46.778.89)9)_6-,7e,16  


Excess of Income over Expen-
  ditures for the fiscal year
  to date-Extension Division
Cash in Bank July 1, 1937 -
  Extension D vision
Cash in Bank May 31, 1938-Ex-
  tension D1vision


66,781.16

_2,672.O


69,453.16


=


5.


Trust Fund Income
  Student Loan Fund            2,244.02
  Student Notes Paid           2,784.81
             Total Receipts     5,028.83


Expenditures
Expense
Student Notes
General Ledger accounts
      Total Expenditures


  31.00
  440.00
5,000.00
5,471.00


Excess of Receipts over Ex-
penditures                    (442,17)


(4.287.08)


Excess of Receipts over Ex-
penditures forthe fiscal
year to date - Trust Fund
Cash in Bank July 1, 1937-
Trust Fund
Cash in Bank May 31, 1938-
Trust Fund


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

  General Fund Expenditures
  Experiment Station Expend.
  Extension Division Expend.
  Trust Fund Expenditures
            Total


1,135,609.06
  413,079.63
  694,532.77
    2.244.02


85,909.56
27,213.70
13,330.19
    93.84


1,221,518.62
  440,293.33
  707,912.96
    2. 33 7.86


2,245.515.48 126,547.29 2,372.062.77

1,071.153.78 109,818.17 1,180,971.95
  336,520.47  43,230.51  379,750.98
  581,022.72  60,109.08  641,131.80
      31.00        7.50        33.50
1,988,727.97 213,165.26 2,201,893.23


Excess of Income over Expendi-
tures                        256,787.51


Accounts Payable

Excess of Expenditures over
  Receipts for General Ledger
  accounts


(86, 617.97)


(31,337.44)


(59,225.17)  24,361.74


170,169.54


(31,337.44)


(34,863.43)


Student Loan Fund Notes


Excess of Receipts over Ex-
penditures for the fiscal
year to date-Combined Fund   168.569.71


(62.044.65) 106.525.06


93.84
211, 58
305.42


7.50


2, p37, 36
5. 334.


38.50
440.00


              400.00
(4,592.50) _  878.50


4.,455 .75.


4, 455.75


8,723.28


2.344.81


211.58


2. 556.39


-


6.


Excess of Receizts over Ex-
penditures for the fiscal
year to date-Combined Fund
Cash in Bank and on hand July
1,1937-Combined Fund
Cash in Bank and on hand May 31, 1938-
Combined Fund


106, 525.06

125,400.11


231. 92 5. 17


Abstract of item shovm on Statement
of Income and Expenditures as "Excess
of Expenditures over Receipts for
General Ledger accounts $34,863.43"


Accounts Receivable

Sundry accounts

Funds for reinvest-
  ment


Debit

19,927.28

19,536.15


Credit


4, 600.00
4,600.00


39,463.43
4.600.00
34, 863.43


     3. Requisition Committee Report.

     The Requisition Committee filed written report of its action
each week from May 27, 1938, to June 8, 1938.   The report showed
orders made by the Business Office on the authority of the Requi-
sition Committee in the manner prescribed by the Board of Trustees
and State laws, running from No. 8042 to No. 8385.   The report
was examined, and on motion and second, the orders named therein
were ratified and approved and payments on said orders were author-
ized and approved.

    4. Allotments for Fourth Quarter.

    The Business Agent reported receipt from the State Department
of Finance, Budget Division, of advice of allotment of appropria-
tion for Division of Colleges showing a total of $666,731.32. This
includes the original appropriation, $660,000.00, additional allot-
ment by the Governor of $4411.32 for payment on P. W. A. con.,tIij-uc-
tion, and additional allotment by the Governor of $2320.00 for
publishing Kentucky Guide Book, being prepared under W. P. A.


7.


project, under agreement with Department of University Exteni.on.


     5. Investments.

     Report by Business Agent

         At the meeting of the Board of Trustees of June 3,
     1938, I reported as follows:

          "The State Treasurer called for payment of
          State Warrants as of May 15.  included
          in this call were the four $10,000 warrants
          in which the Peabody Fund was invested. This
          fund is being held subject to orders of the
          Board for investment thereof."

          The interest paid on these warrants was put to gen-
     eral expenditures fund, and $40,000 was put in a special
     account in the First National Bank and Trust Company of
     Lexington.   This is held subject to orders of the Board
     of Trustees for reinvestment.

          It is suggested by Mr. W. H. Courtney, President of
     the First National Bank and Trust Company, that the funds
     be put in the hands of the Trust Company for investment.
     He suggests that it is possible to make safe loans on farm
     lands and tat these loans should be made at at least five
     per cent interest, and that the charge of the Trust Com-
     pany for its service will be five per cent of the incomie
     collected.

          There is on interest deposit in the First National
     Bank and Trust Company 818,432.74 belonging to the Stu-
     dent Loan Fund.   Recently a warrant for $4,600 belonging
     to this fund was paid on call of the State Treasurer.
     In addition to this there is an open account of the Student
     Loan Fund in amount of $4,123.28, making total of $27,156.02.
     I suggest that in event arrangement is made with the First
     National Bank and Trust Company to act as trustee for the
     Peabody Fund that it also be authorized to act as trustee
     for investment of Student Loan Fund.

                                      (Signed)  D. H. Peak
     June 17, 1938.                             Business agent


     It was ordered that further inquiry of the trusteeship pro-
po ed be made, it appearing that the suggestions in the report of
the Business Agent are worthy of consideration, and it was sug-est-
ed that the First National Bank and Trust Company be asked to
prepare articles creating trusteeship for purpose of consideratilon
thereof at the next meeting of the Board of Trustees.


8.


    6. Uncollected Fees.

    Report of Business Agent

                      UNCOLLECTED FEES

         First Semester 1937-1938 ---               357.99

         Second Semester 1937-1938 ------------- 2      c27p.
                                                   3,620.97

         Collections, including activities, approximate
         $286,000 and this makes the per cent of uncollect-
         ed fees about .01* per cent of total fees.
         he balance of 1936-37 fees uncollected to date is
         W;)212.15.
     It was ordered that the amount of uncollected fees for the
year 1937-1938 be charged off and not carried as an asset on the
books of the University, and that any part thereof distributable
to General Fund of University that may hereafter be collected, be
set aside for payment on P. W. A. construction indebtedness.


     7. Renewal of Fire and Tornado Insurance.

     Statement of Insurance now carried through State Division of
Insurance.


                 INSURANCE IN FORCE JUNE 15, 1938


          FIRE       FIRE COV-   TORNADO    TORNADO    TOTAL
          PREM.      ERAGE       PREMIUM    COVERAGE   PREMIUM


EXPER-   $3,024.89  $398,755.00  $ 553.20  $84,871.00  $3,577.09
IMENT
STATION

COLLEGE   8,003.93  2,275,200.00   353.80  182,000.00   8,324.06
                                                       $11, 901.15

     The condition and values of buildings and contents appearing
to be practically unchanged, it was ordered that the schedules now
in force in the State Division of Insurance for tornado and fire
insurance shall be renewed,


9.


B. Insurance on Men's Dormitories.

Report of Business Agent


    At meeting of the Board. of Trustees April, 1933,
an order was entered authorizing the payment of $90.46
to Davison and Kirkpatrick, Agents, on cancellation of
policies written on the Kinkead and Breckinridge Fal.ls.
These policies were written on the coinsurance plan and
the bill of that agency has been paid as directed by
that order.   That order also authorized payment to be
made to the Coleman Insurance Agency on the same basis.
Two bills were presented by the Coleman Insurance Agency,
one for $88.t32 (policy probably with coinsurance clause)
and one for $224.02 (policy probably without coinsurance
clause).   These bills were sent to Division of In-
surance for advice as to which one should be paid, in
my letter dated May 27, 1938.   To that letter, I re-
ceived the following answer:


              Commonwealth of Kentucky

              DIVISION OF INSURANCE

                                    June 1, 1938

Mr. D. H. Peak, Business Manager
University of Kentucky
Lexington, Kentucky

Dear Mr. Peak:

          After receiving your letter of May 27, en-
closing two bills from the Coleman Insurance Agency,
Mt. Sterling, Kentucky, I got in touch with this
agency to determine which represented the amount due.

          I am now in receipt of information to the
effect that this agency is due a balance of 80224.02.
I am enclosing herewith this statement.andshall. ask
that you give it your attention.

                          (Signed) Sherman Goodpastor
                                   DIRECTOR OF INSURANCE


10.


    Mr. Cleveland stated that he desired to consult a member of
the State Insurance Department in regard to the amount that should
be paid the Coleman Insurance Agency, and tat he would rep.nort the
result of his Conference to the Business Agent;   Upon receipt of
Mr. Cleveland's report, settlement is left to the discretion of
the President and Business Agent.

     9, Alumni Election, 1937 - Ballots to be Destroyed.

     The Secretary of the Board having reported as hereinafter set
out, appointment and qualification of Mr. Marshall Barnes as 4luiini
member of the Board of Trustees, following the alumni election of
1937, he was authorized to have the ballots of the said elaction
destroyed.


          At December meeting of the Board of Trustees the
     ballots of the election for alumni member of the Board
     of Trustees were counted and the result duly recorded
     in the minutes of that meeting.   Certification of the
     result was made to Governor Chandler, as directed by or-
     der made at that meeting.   The Governor appointed   Mr.
     Marshall Barnes, whose name was one of three certified
     to him, as alumni member of the Board of Trustees.   Mr.
     Barnes has qualified as such, his first attendance being
     at the meeting of April, 1938.   it is customary, after
     the appointee has qualified, that the ballots of the
     election be destroyed.   i will appreciate action by the
     Executive Committee, authorizing the destruction of the
     ballots.


     10. Advertising in Leader Special Edition.

     President McVey stated that he had been solicited to take a
page advertisement in the Fiftieth Anniversary edition of the Lex-
ington Leader at a cost of $200.00.   He said that, because of
the condition of finances of the University, and for other reasons,
he had offered to take advertising space at a cost of $25.00. The
representative of the Leader refused to accept his offer and insist-
ed that a larger space be taken.   He asked for the help and advice
of the Executive Committee.

     The members stated that they agreed with the President in his
conclusion, and they recommended that advertising space be taken
in the Fiftieth Anniversary Edition of the Lexington Leader oat an
approximate cost of 825.00.


11.


    11. Library Expenditures - Shelving.

    The President presented a letter from the Librarian copied as
follows and recommended the expenditures asked therein.


                                       June 13, 1938


    President Frank L. McVey
    University of Kentucky

    My dear Dr. McVey:

          I have gotten quotations from Remington Rand for
     steel shelving for the basement of Memorial Hall. This
     will consist of deep bin-type metal shelving of a lower
     grade than that usually installed in libraries.   The
     price includes eight ranges of six double sections for
     the center of the room and seven ranges of four double
     sections for one side.   On the north side of the room I
     hope to install some shelving which is now in the Science
     Library and is not suited for general book purposes as
     it is too deep and takes up too much room.

          The total cost for the shelving for Memorial Hall,
     erected, is $2,755.88; for new shelving for the Science
     Library to take the place of the old which I would put
     in Memorial Hall basement $485.00.   In addition I have
     asked for quotations for shelving, tables and chairs
     for the small room which has been assigned for library
     and secretary's office in the new Bacteriology Depart-
     ment.   This has been estimated at $306.85.

          The total of these three installations will be
     $3,547.73, and the Remington Rand representative tells
     me that this is subject to a state discount of fifteen
     per cent which he allows to the State Purchasing Com-
     mission.

          I should be glad to have your approval of these
     items if they can be purchased out of the amount specially
     set aside for additional equipment from the $30,000 ap-
     propriation for books.

                                (Signed) Margaret I. King
                                          Librarian


12.


     On motion and second the purchase of the shelving, chairs and
tables was approved, the purchases to be made from the State Ap-
propriation of $30,000.00 for library equipment and books, for
the year 1938-39.  The procedure required in making purchases to
be charged to state appropriations is to be followed.


     12. Property Line of Scott Street.

     The President stated that the line on the south (or Scott
Street side)side of the property conveyed to the University by the
City of Lexington (usually referred to as the Dump) was surveyed
by the late Professor W. A. Newman and that the survey shows that
adjacent property owners are occupying parts of the University
property within the bounds of that survey.   It is now desired that
a fence be erected on the property line as surveyed.   The Presi-
dent asked for advice as to procedure to gain possession of the
property occupied as aforesaid.

     The President was authorized to have notices given to each
person encroaching on the property requesting and demanding that
possession thereof be given to the University of Kentucky. Re-
fusal of any one so notified to give possession shall be referred
to the Executive Committee or Board of Trustees.


     13. Petition - Cooperative House.

     The President stated that he had received a petition from
women students asking for construction of a cooperative house. The
petition was ordered filed.


     14. Commons Equipment.

     At the request of President McVey, it was ordered that the
equipment used by the University Commons be transferred to other
departments of the University, as far as it may be needed and is
practicable for use in such departments.   The part of the equip-
ment not practicable for use in other departments may be sold,
the proceeds of sale to be turned over to the Business Agent.

     An inventory of the equipment, showing its purchase cost, its
present estimated value, and the disposition of the items shall
be made.   This shall be reported to the Business Agent in order
that he may clear the equipment account of the University Commons
noN carried on the Sundry Ledger.


     15. Rent of House - Girls' Dormitory

     On request of President McVey and the Dean of Women, rental of
residence for use as an additional girls' dormitory from the Good
Samaritan Hospital was approved and ordered.   The property adjoins
the Hospital mounds and is near Patterson Hall.   It is to be put


13.


in repair for mccupancy such as may be agreed upon, adding one room,
by September 1, 1938, the date the rental period begins.  The
property is to be rented for one year at 10000 per month for
ten months and $60.00 per month for the remaining two months. The
Hospital is to furnish heat and water.


     16. Lease of Shops in Student Union Building.

     Reference is made to Sec. 12, Minutes of June 3, 1938, for
data on rental of barber shop and beauty parlor in Student Union
Building.  It is the opinion of the members of the Executive Com-
mittee present at this meeting that the shops should be rented at
flat rate per month.  The rental contract shall stipulate that
prices charged for work shall not be lower than the charges prevail-
ing in the neighborhood and that the lessee shall not engage in
cutting prices.


     17. Financing and Construction of Buildings.

     President McVey informed the members of the Executive Committee
of a proposal to refinance the loan on the men's dormitories, and,
also, of a plan to ask for an additional P. W. A. grant, the plan
being formulated by Dean Graham,   He explained the proposals in
some detail, after which the members present said that it is
necessary that this be acted on at a meeting of the Board of Trus-
tees.


     18. General Education Board Grant - Agricultural Economics.

     The facts pertaining to the application to the General Educa-
tion Board for a grant of funds for teaching and research in Agri-
culture were stated at the meeting of June 3, 1938, as recorded in
Sec. 13, minutes of that meeting.

     Infcrmation of action on the grant by the General Education
Board is given in the following letter:


                     GENERAL EDUCATION BOARD


                                        June 10, 1938

    Dear President McVey:


     This letter is merely to confirm copy of telegram
sent you today as follows:


14.,


          "Am pleased to advise you informally that Trus-
          tees today voted forty thousand dollars over
          two years for your program in agricultural
          economics.   Secretary of Board will send formal
          advice shortly. "

     It has been a real satisfaction to cooperate with you in
     these initial steps for the broadening of your educational
     facilities in the fields of agricultural economics.

          The Board has now made limited grants for the enln--'e-
     ment of personnel at Louisiana State University, the Uni-
     versity of Kentucky, and Virginia Polytechnic Institute.
     In view of the limited number of qualified men in the
     field, may I Just express the hope that the institutions
     will avoid competing with one another on the basis of
     assistance from the Board in seeking the additions to
     their staffs.

          With every good wish

                    Yours sincerely,

                                      (Signed) A. R. Mann


     President F. L. McVey
     University of Kentucky
     Lexington, Ky.


     President McVey was authorized to accept the grant and to ex-
press appreciation of the Board of Trustees of the University to
the Board of Trustees of the General Education Board for favorable
action thereon.


     19. P. W. A. Construction - Colleg Docket.

     a. Arbitration on Contract No. 300 -- Whittenberg Construction
Company.

        Proposal of Arbitration

                                       June 13, 1938

    President Frank L. McVey
    University of Kentucky

    My dear President McVey:

          Under date of February 23, 1938, I reported to you
     the state of Contract No. 300 with the Whittenberg Con-
     struction Company of Louisville, Kentucky, wherein that
     Company was delinquent to the extent of seventy-one days
     in the completion of the Contract and recommended to you


15.


that the Company be penalized for a totalof fifty days
or in the sum of $2,500 in accord with the "Bonus and
Penalty" clause of the aforementioned Contract.  This
recommendation was approved in due course by the Board
of Trustees and the Company was duly notified of the
findings and the action thereon,

    Under date of May 9 I received by letter a demand
from the Whittenberg Construction Company for an arbi-
tration of this question of penalty.  This demand was
predicated upon the arbitration clause within the af ore-
stated contract and placed therein in accord with the
regulations of the P. W. A.   I attach hereto a co'cy of
my reply under date of May 12 and especially invite your
attention to the fourth paragraph thereof wherein I
stipulate "that if arbitration be granted (by the Board
of Trustees) then the present settlement be withdrawn and
that the matter be arbitrated on the basis of assessing
the full penalty or $3,550"; and further,-that "if my
findings and recommendations thereon are to be rearbi-
trated, then i desire that these be withdrawn and com-
pletely discarded and that the arbitration demanded by
you shall be confined strictly to the records as written,
if and when the President and the Board of Trustees ac-
quiesce to your demand."

     Subsequently, I have discussed this matter further
with Mr. Whittenberg, President of the Company, as fol-
lows:

     1. That some part of the delay and delinquency was
due directly to the acts of omission and commission of
certain of the sub-contractors, engaged under this contract,
and to some more than to others.

     2. That the Whittenberg Construction Company would ac-
cept the :resent offer of settlement, If it was not for the
fact that certain of the most delinquent of the subcon-
tractors refuse to accept any responsibility therefor or
to be assessed any part of -the penalty.

     3. Therefore, the Whittenberg Construction Company
desires and needs to use every means approved and offered
under the contract to establish a complete record of in-
dividual and proportional responsibility for the delinquency.
Since arbitration is the final step for accomplishing this
end under the contract the Company now request this a'ction
and is willing to arbitrate upon the basis of the f ul.l
penalty or $3,550 as aforequoted from my letter of Uvay 12.

     4. That Mr. Whittenberg is willing to agree with the
University upon the selection of one arbitrator in lieu of'
the usual three, and thus save expense.


16.


          Therefore, I now recommend that request of the
    Whittenberg Construction Company, that the question of
    delinquency and penalty thereunder shall be arbitrated,
    be granted and authorized in the full amount of the de-
    linquency and penalty or $3,550, in full and complete
    accord with the contract documents and within the written
    records of the work's progress.

                                (Signed) James H. Graham
                                                Dean


     The recommendations of Dean Graham as set forth in the report
copied were approved.   The selection of arbitrators was left to
President McVey and Dean Graham.


     b. Payment on Bonds and Interest.

        Report of Business Agent

          Following is statement of account of P. W. A. Con-
     struction Bonds:

          Bond due June 30, 1938                 15,000.00
          Interest for the year                  18,570.00
                                                 33,570.00

          Available Funds

          Balance on hand July 1, 1937   4,219.58
          Fees, First Semester, set
             aside                      9,285.00
          Fees, Second Semester, set
             aside                      9,285.00
          Old fees, set aside            2,080.50 24,870.08
               Balance necessary for payment       8,699.92


                              (Signed) D. H. Peak
                                        Business</pre>