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      schedule, enclosed herewith, indicates how advance pay-
      ments may be prorated for use in future years by subscrib-
      ing companies.

   3. Although the ultimate cost of the complete analyzer may
      approach $75, 000, we are confident that we would be wise
      in starting now on the preliminary designs and the procure-
      ment of materials for pilot models of basic circuits and
      sections. We hope to procure some of the material needed
      through gifts from manufacturers.  Furthermore, we have
      reasons to believe that further financial assistance will be
      forthcoming from some of the companies that have been con-
      tacted.

   4. We estimate that about a year and a half will be required
      to design, build, test and install the complete machine.
      This estimate is based upon the experience of a faculty
      group that built a similar machine in one of the largest
      universities in the midwest.

   5. It is planned to rent the analyzer to power companies that
      are not in the initial subscription group, at the prevailing
      rate of $100 per day. My contacts indicate that we should
      have a substantial number of users of the machine each
      year at this rate. It is estimated that revenue thus ob-
      tained will be adequate to keep the analyzer in operation
      and pay half the salary of a department staff member who
      will devote half his time to the analyzer.

      Our graduate degree program in electric power engineering
      will embrace studies and research problems in which the
      analyzer will be used extensively.

   6. Dr. Leo M. Chamberlain advised me that the Kentucky Research
      Foundation is willing to handle the funds donated for the project.
      The money will be kept in a special account and paid for ma-
      terials and services upon recommendation of the head of the
      Department of Electrical Engineering and the Dean of Engineer-
      ing.

      Will you kindly bring this information to President Donovan's
attention and request official approval of our plan and proposal? It is
desirable, of course, that he write a letter to the Kentucky Utilities
Company, thanking them for this gift and for their help in making this
project possible.

       I think the company should have recognition for this act in a
much more extensive manner than a mere listing, as a donor of
$25, 000, in the usual newspaper report following the next meeting of
the Executive Committee of the Board of Trustees,  But I should pre-
fer that the matter not be emphasized in the papers until the dedication
of the completed analyzer.  At that time we can run a large feature
article and give K, U. plenty of credit therein,  We can explain to
K. U. now that we are saving the real publicity until the dedication