xt7kkw57dv3z https://exploreuk.uky.edu/dips/xt7kkw57dv3z/data/mets.xml Lexington, Kentucky University of Kentucky 19340730 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, 1934-07-jun30-ec. text Minutes of the University of Kentucky Board of Trustees, 1934-07-jun30-ec. 1934 2011 true xt7kkw57dv3z section xt7kkw57dv3z
Minutes of the Mleeting of the Executive Committee of the Board
of Trustees of the University of Kentucky June 30, 1934.
The Executive Committee of the Board of Trustees of the Uni-
versity cf Kentucky inet in President I'C e-y's office at the Univer-
sity of yP3ntucky June 30, 1934, at 10:30 ro. The members of the
Coz-,mittee present were Judge R. C. Stoll. C7~hairman; James Park and
Miller Holland. President Frank L. Kc-V-8y and Secretary Dl. H.
Peak were also present.
1. Minutes Approved.
T4e Minutes of the meeting of the Executive Committee of May
8, 1934, were approved as published.
2. Financial ReDort,
The Financial Report for May was received and ordered to be
recorded in the Minutes.
It reads as follows:
EXHIBIT "IBU
Statement of Income and Expenditures
Month of May 1934
Previously
Reported
General Fund Income
Federal Appro. 42,750.00
Vocational Ed. Board 16,377.62
Bur. of Min. & Top. Sur.-
Misc. Receipts 1,120.67
Bureau of Mill & Top.Sur.-
State Appropriation 3,106.60
Special Agri. Appro. 25 088 06
State Tax 501,667.43
Int. on Endowment Bonds 8,644,50
Int. on Liberty Loan Bonds 1,700.00
Student Fees 182,906.50
Student Fees - Sum.Sch. 37,487.37
Student Fees - U.H.s. 10,494.75
Student Fees - E1.Tr.gSh. 7,999.50
Student Fees - Un.Ext, 18,975 47
Miscellaneous 7 029.29
Rentals 2,325.20
Ment s Dormitories 12.730.11
Total
Current
Month
4,038,54
212.40
(106.00)
38,924.78
4,104.40
1,035.00
160,00
1,147,91
386.01
577.20
554.80
51.034.44
Fiscal
Year
To date
42,750.00
20,416.16
1,333. 07
3, 000.00
25,088.06
540,592.21
8,644.50
1,700.00
187,010.90
37,487.37
11,529.75
8,159,50
20,123,38
7,415.30
2:902.40
13,284.91
931 437.51~
2,
Expenditures
Instruction 609,423,91
Adm. Exp, and Maint, 2149852.24
Additions and Betterments 10,084.45
Total 834, 360. 6C
Excess of Income over Ex-
penditureB
Patterson Hall Income
Board
Hiscellaenous Receipts
Room Rent - Summer School
Total
Expenditures
Expense
Add, and Betterments
Total
Excess of Income over
Expenditures
General Fund Income
General Fund Expend.
Excess of General Fund In-
come over Expenditures
Accounts Payable lioridate
Excess of Receipts over Ex
penditures for General
Ledger accounts
txcess of Receipts over E
penditures for the fiscal
year to date - General
Fund
Excess of Receiots over Ex
penditures for the fiscal
year to date - General Fu
Cash in Bank July 1, 1933
General Fund
Cash in Bank May 31, 1934
General Fund
61,977,88
17,433.77
592 14
80.003- 79
671,401, 79
232,286,01
10, 676, 59
914. 364 39
46 204247 (28,969, 35) 17,073o12
38, 531.26 601,92 39p133.18
314,09 314,09
2 9 36 c65 S _ _ _ _ _ _ 2_s_9____a_6_5
2___936___6065 2,936,65
41__ _82_ __ 601__92 42,383,92
30,508.64 3,239,11 33,747,75
695,00 695,00
31,203.64 3,239 ,11 34,442,75
10,578,36 (2.637A19) 7941,17
9229185,07 51,636e36 9Z3,821e43
865,564,-24 83,242,90 948,807.14
56, 620,83 (31,606054) 25,014,29
d (21 447, 30) (7,030,73) (28,478,03)
21 6529,6 (12418,12) 9, 234, 84
56. 826 49 (5:,,05539 _ 5,771,10
rd5 771, 10
16, 671 05
22, 442, 1F5
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
5s 000,00
9 058, 24
45,39
439.74
329.64
573, 75
1 599,56
1, 2150, 00
1, 542,72
266, 66
25, 00
15,OOO,00
9O 324,90
45 39
464,74
329, 64
573, 75
1, 599,56
1, 250,66
1,542,72
nd
Seed Test 573.48
Seed Inspection 15,798058
Rentals 5,581.66
Miscellaneous 483,16
Fertilizer - Fees 23,502 00
Public Service - State Ap, 18,137049
Public Service - MiscRec. 111.05
Feeding Stuffs Fees 29P120,63
Adams Fed. Appro, 15,000.00
Serum Sales 869,46
Serum Virus Sales 54r85
Serum Live Stock Sales 200 00
Serum Supply Sales 91,98
Serumrn Misc. Receipts 5.05
State ApproO 45,449,11
Creamery - License Fees 6,574.50
Creamery - Testers' Lico 2 427,85
Creamery - Glassware Tested 437,41
Robinson - State Appro, 10, 701,,82
Robinson - Misc, Receipts 1,449462
West Ky. - State Appxro 12,599.36
West Ky. - Misco Rec. 2,066,24
Purnell '- Federal Appro, 60,000 00
NTursery Inspection - Fees .19300 00
Blood Test 634,50
Total 283,009.50
Expenditures
Expense 236,134,68
Additions and BettermeTts 2,469,52
Total 223,02
Excess of Income over Exp, 44,405,30
Excess of Expend. over Rec,
for Gen. Ledger Acots, (27 78989)
Excess of Receipts over Ex-
penditures 16,615,41
Excess of Receipts over Ex-
penditures for the fiscal
year to date - Experiment
tation
aash in Bank July 1, 1933 -
Experiment Station
Gash in Bank May 31, 1934 -
Experiment Station
76.25 640.73
765, 98 16, 564. 56
5, 581, 66
- 483 16
23, 502 00
18,137e 49
111.05
924, 18 30, 044.81
15, 000, 00
869,46
54. 85
200 G00
91,98
5.05
45, )449,1
6,574,50
2,427,'85
437. 4.
10, 701, 82
l 44906$
1,218, 37 13,817, 73
2 066.24
60,00000
1, 300(00
_634. 50
3-2744- 286, 285c,94
26, 936, 62 263Y071.3a
998 89 3,t6 6
-2,935,51 2662539,7E
(24,659,07) 19, 746.2t
(6,370,43) (34,160.3.
:_31,029.50) (14,414,09
(14,414.09
16,455e13
2, 041,04~
Extension Dlivision Income
Federal Smith-L~ever
Federal Add. Co-op.
Federal Supplementary
Federal Gapper-Ketcham
State Smith-Lever
County and Other
Total
1485,308.77
31, 000. 00
53,091. 04
36,800,97
118,P 85. 29
_1,768.q91
3 254 9~8
148,308377
31 , 000. 00
53,091.04
36, 800,97
118,285.29
~179 16 1 807
179,16 389,434.14
_
.. ! _ ,- _
A
Expenditures
Expe-n se
Excess of Income ovrr Ex-
penditures
303.900.10
85,354.88
35,890.62
(35,711.46)
339,790,72
49,643.42
1932-1933 Federal Smith-
Lever balance transferred
to Current Year's Income (5,163.15)
Excess of Receipts over
Expenditures
80. 191. 73
(35.711.46)
Excess of Receipts over Ex-
penditures for the fiscal
year to date - Extension
Division
Cash in Bank July 1, 1933 -
Extension Division
Cash in Bank May 31, 1934 -
Extension Division
Trust Fund Income
Student Loan Fund
Student Notes-Paid
Total Receipts
Expenditures
Expense
Student Notes
Total
Excess of Receipts over Ex-
penditures
787.13
1. 727.02
225.60
262.00
1,012.73
1.,989.02
_,~~~~~~~~1 98. 02.
P,514,15 487,60 3,001.75
389.00 44.00 433.00
-_142_00 142.00
531. 00 44.00- 575 00
1X983.15
443.60
Excess of Receipts over Ex-
penditures for the f iscal
year to date - Trust Fumd
Cash in Bankd July 1, 1933
Trust Fund
Cash in Bank May 31, 1934 -
Trust Fund
2,426.75
2,426,75
994.93
3,421.68
Sumniary
General Fund Income
Experiment Sta. Inc.
Extension Div. Inc,
Trust Fund income
Total
General Fund Expend.
ExDeriment Sta.Expend.
Extension Div. Expend.
Trust Fund Expend
Total
922,185,07
283,009.50
389,254.98
787.13
1,595, 236.68
51,636. 36
3,276.44
179.16
55, 317.56
973,821.43
286,285,94
389, 434.14
1,012.73
1,650,554.24
865,564.24 83,242.90 948,807.14
238,604.20 27,935.51 266,539.71
303,900.10 35, 890. 62 339,790.72
389.00 44.00 433.00
11408 457 54 147 113 03 1,555 570.57
44,480.27
9,064,09-
53,544,36
. .
-44, d,8 0. 2 7 -
(5,163,15)
5.
Excess of Incorme over Expend-
itures
Accounts Payable liquidated
1932-1933 Federal Smith-tever
balance Transferred to Cur-
rent Yearts income
Excess of Expenditures over Re-
ceipts for General Ledger
accounts
186,779.14 (91,795.47)
(21,447.30) (7,030.73)
(5,163.15)
(6,136.93)(18,788.55)
94,983.67
(28,478.03)
(5,163.15)
(24,925.48)
Student Loan Fund - Notes
Excess of Receipts over ExpE
tures for the fiscal year I
date - Combined Fund
155,616,78 (117,352,75)
Excess of Receipts over Expendi-r
tures for the fiscal year to
date Combined Fund
Cash in Bank and on hand July 1,
1933 - Combined Fumd
Cash in Bank and on hand May 31,
1934 - Combined Fund
Abstract of item shown on Statement
of Income and Expenditures as '"Excess
of Expenditures over Receipts for Gen-
eral Ledger accounts $24,925.48"
Debit
Accounts Receivable
Credit
24,569.70
Insurance Paid in Adva me 1,152.12
Sundry Accounts
25,721.82
796.34
24,925.48
796, 34
796, 34
1,585.02
262.00
1,847.02
38'264.03
38,264.03
45.185 20
83,449,23
- -
6.
3. Income and Expenditures.
The Business Agent reported state tax Receipts, including June
remittance for May collections for the perid of July 1, 1933, to
May 31, 1934, as follows: Inheritance tax $172,367.12P mill tax
;3C1,739.32. (Before writing the Minutes data on collections in
June show totals for the.year: Inheritance tax $186,140.17, mill
tax .1391,682.98. The exact amounts were detCrminod in time to
insert herein.) Following is tabulation for three years:
State Tax, University of Kentucky
Inheritance Tax
Hill Tax
1930-1931
56,509.62
38,146.65
45,613.97
80) 653.96
27)848.35
285V02.32
38,685. 27
77,899. 76
31, 206. 72
15,587.85
65, 765.09
28, 190.57
534,610.13-
8,215.81
1,686,31
230,236.05
24,299.83
43,548.55
35, 451.70
2232,911.09
9,569.93
, a725. 77
10,434.19
2,458.31
4,333, 62
602,7 71 16
1931-1932
35, 449. 44
46,;067.73
23 , 657.62
15,909.14
10 ,820.03
100$ 495000
11,455.60
6,637,i26
2,217,01
60,522.25
11,935.45
11, 898. 40
3370064.98
5X365X42
9 2105 .2
193, 894. 14
21 107,89
26, 834. 09
57, 476,34
204,025.11
7,753.43
12,815.50
11, 699. 15
2 768.63
49.48917
557,439.69
July
Augulst
September
October
November
December
January
February
March
April
May
June
Total
July
August
September
October
November
Decembo.er
January
February
March
April
May
June
Total
7.
1932-1933
19, 02 - 24
15 . Q41 ai ,
11, 73 7 e'Y
551 616. 99
21, 737. rY
11,137, 50
29,779. 11
12,759 .76
17,669. 06
8, 6493 76
8,8323 49
212,571. 63
1933-1934
75,000.00
8,757.82
11,769 71
17,C000 00
11,531. 71
4,073.28
18,756.67
11, 124. 73
14, 353.20
13,773.05
186, 140.17
4, Fiscal Yearxs
3,949.53
12,002.38.
41,023.17
23 662.08
143 650.66
34, 791. 39
36,054.58
27,673,43
70)100.20
49 924.19
14,983.68
8,797.82
466 613.11
7,179.26
4, 218'54
21,556.:04
26,687.83
120,591.37
22 000.00
17,108. 15
23,508.17
2.04, 883 , 32
27,800.05
6: 206.59
9,943.66
391,682,98
Zndebtedness Qtered Paid
On motion and second the Committee authorized payment of June
salaries, Oollege Division, and other ine-,btedness of the fiscal
year ending June 30, 1934. This order is based on following report
made by the Bu8siness Agent:
July
August
September
October
November
December
January
February
March
April
May
June
Tot al
July
August
S ept ember
October
November
December
January
February
March
April
May
June
Total
8.
Bank Balance May 31, 19341
Total collections in June that may be
applied to expense to June 30, 1934
Tax transfers for June
Petty cash fund
Campus Book Store accounts
receivable
$22,442.15
58,876.17
23, 716.71
2, 000.00
25,263. 19
Sundzy Ledgex Accounts Pay-
able estimated
1,coo. 00
8,263.19
115,298.22
Estimated expenditures includ-
ing salaries
110,056., 56
5 , 241e 66
5, Widening Rose Street.
President McVey reported that no progress had been made on a
proposed plan to widen Rose Street. It was suggested that con-
tinued effort be made to reach an agreement with the City Manager
in regard thereto.
6, Legislative Outcome and Prospective Budget.
President McVey reported at some length the discussions, con-
tentions and difficulties that involved the University in connec-
tion with the appropriations bill passed by the Kentucky Legisla-
ture at extraordinary session. He stated that, as finally passed,
the bill puts the University in about the same position as to
amount of funds as it was in each of the fiscal years of the bien-
nium just closed, with the addition of special appropriations for
summer session and for repairs and renewals, and a further appro-
priation of $71,100.00 each year of the biennium for payment of
unpaid salaries of 1931-32, the amount asked for the latter purpose
havingbeen $79,000.00 each year.
He stated that on the basis of the appropriations made in the
bill referred to that he would be able to complete the budget for
the yetar 1934-35, He made a summarized statement of the budget
showing an estimated income of A,170,673.50, covering all sources
of income in dining, boarding and lodging halls.
9.
7. N~ew Fiscal I,
President McVey made a short statement in regard to the new
fiscal laws, and the operations of the University under these laws0
The discussion on the subject resulted in the passing of the follow-
ing resolutions;
a. Petty Cash Funds,
Under the definition of Budget Unit under Finance Act and the
Kentucky Statutes it is the opinion of the members of the Executive
Corumnittee present that the three divisions of the University of Ken-
tucky, namely; College Division, Experiment Station Division, and
Extension Division, may each be considered a budget unit, and that
as such may each apply for a petty cash fund as provided for in
article 6, section 6, page 97. It is desirable and necessary for
the proper conduct of the business of the University of Kentucky
that its business offices be allowed to have a petty cash fund of
$5000.00 for each budget unit, totaling $15,000.00. President
McVey is authorized to present this resolution to the Finance Board
together with request for the three petty cash funds.
b, Method of Payment of Obligations.
In the opinion of the members of the Executive 'Committee pres-
ent (Act 5, section 2, page 91) that part of the Budget and Finan-
cial A'ldministration Act of 1934 that relates to payment of obliga-
tions of a budget unit, may be construed to mean that the Auditor
of Public Accounts may draw warrants on the State Treasurer in fa-
vor of the Treasurer of the Budget Unit on statement or abstracts
of salaries or accounts payable in the sum total of such abstracts
and that the Treasurer of the Budget Unit make distribution of the
funds. This interpretation follows the plan now in practice which
has proved satisfactory in every respect. It is desirable to con-
tinue it because it saves duplication of work and thereby insures
promptness of payment. It will thereby enable the University of
Kentucky to take discounts and buy to a better advantage. There-
fore.; be it resolved that the Board of Finance be requested to
adopt the method herein suggested, and President McVey is authorized
to submit this resolution to that Board.
0. Student Fees.
Each full-time student shall pay fees each regular semester as
follows; if a resident of Kentucky, $47.00 for each college except
Waw, for Law $50.00; if a non-resident of Kentucky, A60.00 for
each college except Law, for Law 'S$63.00, the funds thus collected
to be used as operating expense of the University of Kentucky, ex-
cept that $7,:0Q :8f each full fee collected by authority
given by the student body shall be distributed to student orgeniza-
tions as follows: Kentucky Kernel, 54 cents; class dues, 50 cents;
YMCA or YWCA, 27 cents; musical organizations, 50 cents; rent of
Post Office boxes, 50 cents; Lectures, 18 cents; Athletics, '?4.51.
10.
The Business Agent is authorized to pay the amount so collected as
directed by each organization entitled thereto.
The Business Agent may collect from the students to be held
by himn for the benefit of each student so paying the following de-
posits: Advanced Military, $20.00; Basic Military, $10.00; Room
35. 00; Chemistry, $2.50; Key, 50 cents. The amounts thus collect-
ed shall be repaid to each student from whom collected on demand,
approved by a member of the Staff so designated in each case.
d. Federal Funds.
The federal funds now granted the University of Kentucky are
the Hatch fund, the Adams fund, the Purnell fund, the Agricultural
Extension funds, the Morrill-Relson fund, and the interest on bonds
invested by the State of Kentucky. These funds can only be expend-
ed under the direction of the Administrator of the Federal Grant --
the State cannot control or direct expenditures. Under the ruling
of the Comptroller General they must be kept intact and in separate
bank accounts. Any unexpended balance reverts to the Federal Gov-
ernment, The accounts are audited by representatives of the Fed-
eral Government and the original vouchers, bills and accounts must
be kept by the University in a manner convenient for such audit.
The University is held responsible for failure to comply with the
requirements in each case and the University, and not the State, is
reouired to make reports on each appropriation.
Frequent rulings have been made by the Federal Government to
the effect that the Board of Trustees of the University to which
grant is made is the custodian of the funds paid for the use of the
institution through the federal acts, As custodian, it is re-
sponsible for these funds, irrespective of where they may be depos-
ited, The placing of the funds in the custody of any department of
the state does not relieve in any manner the Board of Trustees from
the original custodianship.
It is further provided in the rulings that have been made that
the funds r~mst be maintained in separate bank accounts, and that
they must be available upon requisition of the director of the
funds, irrespective of rulings that may be passed or viewpoints
that may be held by state boards or officials. In accordance with
decisions that have been made, these funds remain federal funds
until they are actually disbursed,
For these reasons and others set out at large in opinions of
the Comptroller General of the United States of America which opin-
ions have been made records in the minutes of the Board of Trustees
of the University of Kentucky, be it resolved that President MoVey
and the Financial Administrator of the University, keep, control
and expend the funds herein mentioned in accordance with the re-
quirements of the Federal Governm.ient and that they be not covered
into the Treasury of the State of Kentucky except as may hereafter
be authorized by the Board of Trustees.
11.
This resolution is based on the following rulings of the
Comptroller General of the U. S. A.
Ruling A-46031 (In part).
"The funds in question are those provided by the Second Mor-
rill Act of August 30, 1890 (26 Stat. 417); Nelson Amendment of
Harch 4, 1907 (34 Stat. 1281); Hatch Act of March 2, 1887 (24 Stat,
440); Ada.-Is Act of March 16 1906 (34 Stat. 63); Puxnell Act of
Feb. 24, 1925 (43 Stat. 9701; Snith-Lever Act of May 8, 1914 (38
Stat. 372); and Capper-Ketcham Act of May 22, 1928 (45 Stat. 711).
"The auestion arises at this time, because of a letter received
from R. B. Stewart, Controller of Purdue University, at Lafayette,
Indiana, asking to be advised as to the proper attitude of the Uni-
versity with regard to the funds it receives from the Federal Gov-
er-mient, under the Acts cited, in view of a statute passed last
summer by the Indiana Legislature, amending the State Public Depos-
itory Law."
Accordingly, in specific answer to the question submitted, I
have to advise that the interest accruing upon all such funds as
referred to in your letter is interest acctuing to the United
States and should be covered into the Treasury as miscellaneous re-
ceipts. It may be stated, also, that under tuch circumstances,
the deposit of said funds by treasurers of institutions having cus-
tody of the same, is not subject to the provisions of the laws of
Indiana, referred to in your letter, requiring that the interest
accumulating upon such funds should be deposited in the State
treasury for the building up of a sinking fund for the protection
of State funds. The funds in question should be deposited by such
treasurers in banks as custodians for funds of the United States
and any interest accruing thereon should be for disposition as
herein indicated,
Re spect fully,
(Signed) J. R. MoCarl
Comptroller General o
the United States
Vest Virj.4nia Qafls-
DEPARTMENT OF AGRICULTURE
WASHINGTON, D. C.
January 18, 1934
Mri A, Spates Brady, Presider4t,
West Virginia Board of Control,
Charleston, W. Va,
Dear Sir:
There was received on January 2, by reference from
the Treasury Department, a photostat copy of your letter
of November 1 to former Secretary Woodin, of that Depart-
ment, together with a copy of a reply dated December 29,
both of which relate to the scrutiny and control of your
Board over the expenditure of Federal funds devoted to Ex-
periment Station and Geological Survey work at West Virginia
University. You ask to be advised whether the Federal Gov-
ernnent desires the continuance of such scrutiny and con-
trol.
The interest of this Department in the Matter is, df
course, confined to the expenditure of the Experiment Sta-
tion funds appropriated and allotted to the States by the
so-called Hatch, Adams, and Purnell Acts of Congress, so
that this letter will be concerned solely with such funds
and their expenditure, as I understand that this matter has
also been referred to the Interior Departnent, in view of
the Geological Survey funds involved.
Your letter quotes from Sec. 1, Article 11, Chapter
18, and from Sec. 4, Article 1, Chapter 25, of the West
Virgi~ia Code to show that the "finances and business af-
fairs of the University (of which the Experiment Station
is a part) are under the "charge and control" of your
Board and you state that, under the policy of retrenchment
which the Board is engaged in, you deem it your duty to
exercise the same "scrutiny and power of disapproval" as
to expenditures connected with the University out of Fed-
eral funds as you exercise over State funds, I quote
further from your letter as follows:
It is our desire that the expenditure of Fed-
eral funds, in so far as is possible, be expended
strictly for the purposes for which they are appro-
priated, and not expended in paying the traveling
expenses of nembers of the University staff, its
agents and employees, traveling all over the country
to "study this project," "Im.ake a survey of conditions,"
Rattend a conference with so and so," and in going
to many points in this State and all over the United
States; that in the expenditures for supplies the
use of the funiw as applied to such supplies, AS in
1 25
13.
the judgment of this Board, were necessary, and
of a kind, material and quality such as we would
approve for the University if payable out of
State Funds, due respect being had for the recom-
mendations of the heads of the departments, with
regard to supplies of a technical nature needed
in their departments.
** * ** ** * ** ** * ** * **
It is the desire of this Board to work in
entire harmony with the officials of the Univer-
sity administering Federal Funds, and jointly ad-
ministering Federal and State funds. We shall
endeavor to cooperate with these people in every
particular, looking to the efficiency of the ser-
vice; we shall continue to give due consideration
and respect to the recomrmiendations of these offi-
cers who are expending Federal Funds, and where we
are not clear upon the necessity of a requisition,
we will ask for further information, but we cannot,
and will not concede, that we will simply use a rub-
ber stamp to every requisition which cormes through
with the approval of these officials, regardless
of the apparent necessity, wisdom and extravagance,
which, to us, is apparent.
As a basis for an answer to your question as to the
desirability of the continuance of such scrutiny and con-
trol by your Board over recommended expenditures of experi-
ment station funds, your attention is called to certain pro-
visions of Sections 1, 2 and 3 of the Hatch Act of March 2,
1887 (24 U.S. Statutes, 440), which was the original Act of
Congress establishing the experiment stations in the various
States and making funds available for their support, and
to the fact that the subsequent Adams Act of M-aTch 16, 1906
34 U.S. Statutes, 63) and Purnell Act of February 24, 1925
43 U.S. Statutes, 970), both specifically announce that
their appropriations are made for the nore complete endow-
..ent of the experiment stations 'established in acoordance
with" the Hatch Act.
By Section 1 of the Hatch Act, agricultural experiment
stations are authorized to be established "under direction
of" the land-grant agricultural colleges in the various
States and by Section 2 thereof the object and duty of these
experiment stations is declared to be "to conduct original
researches or verify experiments on the physiology of plants
and animals .... and such other researches or experiments
bearing directly on the agricultural industry of the United
States as C..r tn each case be deemed advisable." By Section
3 of the Act, it is provided that this Department is to co-
operate with the Experiment Stations so established in order
to "secure uniformity of methods and results" and to give
I4.
such advice and assistance "as wxill best promote the
purpose of" of the Act. (Underscoring supplied).
The plain :ceaning of the language thus used in these
three sections of the Hatch Act is that it is the experit
;:ient station whose "duty" it is, under the direction of
the college, and in cooperation with this Department, to
determine what researches, bearing directly on the agri-
cultural industry of the United States, are "advisable".
This is the declaration of the Congress which provides
the funds for the researches thus authorized and, inas-
much as the State of West Virginia has given its assent
to the 'purpose" of the grant made by the Hatch Act, and
has similarly assented to the purposes of the Adams and
Purnell Acts, it has thereby agreed, on ils part, for a
valuable consideration, that the experiment stations are
the proper bodies to determine, under the direction of
their respective agricultural colleges and in cooperation
with this Department, what agricultural researches are
"advisable." Having given this assent the State of
Test Virginia may not, without a virtual repudiation of
the assent already given to the purpose of the experiment
station acts, assume the right, by legislation or other-
wise, to appoint some other body and give to it the au-
thority to make such a determination. Much less, of
course, would there be any warrant for your Board or
any other State body to assume the authority to take such
action, Without the sanction of legislation.
As a matter of fact, an examination of the pertinent
sections of the West Virginia Code shows that your Board,
as your letter itself indicates, is given control only
over the expenditure of State monies. Inasmuch as the
Experiment Station funds allotted to the State out of the
Federal appropriations are Federal monies and continue to
be such until they are disbursed pursuant to the puposes
specified by Congress, I fail to see how the section of
the West Virginia Code which you have cited gives your
Board any authority to scrutinize and disapprove expendi-
tures proposed to be made for those purposes by the agency
authorizes thereto. Surely it will not be contended that,
by the legislation which put the finances and business af-
fairs of the University (including, of course, the Experi-
ment Station, which is a part of it) under your "charge
and control," the State thereby undertook to give to your
Board any authority to make decisions and pass judgment
as to the advisability of the expenditure of funds belong-
ing to the Federal Government, a matter which is specific-
ally conferred by Congress on an entirely different body.
These Federal funds, by the terms of the Acts referred
to, are payable to the officer appointed by the governing
boards of the colleges or experiment stations and the offi-
cer to whom the funds are paid thereby becomes their cus-
todian. There is no requirement in the Aot that he shall
deposit them in the State treasury, although it is entire-
ly proper that he should do so, in view of the fact that
the moniew are to be used for the benefit of the respective
States. But, if he does so deposit them, his custodian-
ship is not thereby terminated; they continue to be Gov-
ernment funds, until they are expended for the purposes
specified in the Acts of Congress; it was so held by the
Comptroller General of the United States, in his decision
of January 16, 1933.
In oases where the appointed custodian deposits the
funds in the State treasury, and for x easons of uniform-
ity and convenience of disbursement it should be deemed
expedient that they should E- disbursed through your
Board, in the same manner as State monies, such manner
of deposit and disbursement can not e ffect a setting
aside of the requirement of the Feeeral Statute as to the
proper body to make decisions as (c the advisability of
the expenditure of the funds so deposited. If yer Board
feels that this convenience of deposit and expenditure of
the funds, without any voice by the Board in its wisdom
or advisability or economy, is objectionable, as making
the Board merely a Tribber stamp," as you express it,
the remedy would be for Ohe officer of the Experiment
Station, who is the custodian of the funds, either to
enter into some arrangement with the State treasurer
whereby the warrant of the treasurer of the Experiment
Station, properly vouched for9 will be honored and paid
or that the deposited funds be withdrawn and placed in
tome other depository where they would similarly be hon-
ored upon his proper warrant. It would seem, however,
that it might be possible for the Board to pass such
reouisitions, without any question and without any
feeling of stultification thereby, when they are received
through the proper channels and properly accredited, in-
asmuch as the Board can be assured that the approval of
the Federal officers will not be given without as care-
ful a scrutiny as could be desired as to the need and ad-
visability of the proposed expenditure. It is false
economy, however, in the Department's opinion, when a
special