MfMMlES OF TEE 2.AKD OF TRUSTEES      -    May 30, 1911



shall be given after September 1, 1908, in any department of the University, or

Academy connected therewithl

          (Ky. Statutes Sub-Section 3, Section 4636 B).

          The Executive Committee will, I believe, recommend to you the adoption of

the proposed plan and assuming they will do so, I most heartily concur in the recormmenda-

tion.   The Academy as now maintained costs i5500. annually.  Under the proposed plan

the preparatory students can be taught by the regular professors of the University at

a net saving of several thousand dollars per annun.

          To do this is only to apply the ordinary laws of business efficiency and

economy now in vogue in the administration of the affairs of the great corporate in-

terests of the commercial world. It will secure to the State better teaching at a lower

cost; certainly an end most devoutly to be desired.

          I regret to report that the financial condition of the University is not

entirely satisfactory.   're owe now in round numbers Sixty-six Thousand Dollars

($66,000.)

          This debt was created as follows:-

          The Two Hundred Thousand Dollars, ($200,000) appropriated by the State in

1908 for the erection of buildings had to be spent two years before the proceeds were

received from the State Treasurer, thus forcing the University to borrow money with

which to erect the buildings.   $200,000. at 515% interest for two years amounts to

$P22,000. Inasmuch as the building funds of the various buildings erected consumed the

whole of the appropriation, there was nothing left for the equipment of the buildings

and this was made out of the general funds at an expense of about 4$15,000.

          The real estate purchases made within the last two years amounts to Eleven

Thousand, Two Hundred Dollars ($11,200).

          The name of the Kentucky State University was changed by agreement of the

Transylvania University at an expense of 45,000., which was paid to Transylvania

University for the use of the name.