7.



made by Mr. Lyle, seconded and carried, that the Executive Comi&
mittee be authorized to advertise for bids and proceed with the
construction of the Chemistry building.

     9. The Annual Budget. The budget of the University for the
year 1924-25 was presented to the Board of Trustees and a motion
was made, seconded and adopted that the budget as presented bt
approved substantially in the form in which it was presented,
subject to such minor changes as it may be necessary to make.
(A copy of the budget is filed with these minutes and copies
furnished to Deans.)

    10. Telephone Exchange. The question of a telephone ex-
chancre was brought up by President IvIcVey and discussed. A motion
was made by Mrr Lyle, seconded and adopted, that the installation
of a telephone exchange be left to the chairman of the Executive
Committee and to the President of the University with power to act.

    11. The Men's Gymnasium. President McVey read a statement
regarding the.NMen's Gymnasium, coxmmonly kmown as the Basketball
Build ing.

                                     March 26, 1924

   Professor VI. D. Funkhouser,
        Uinliverei Ly of Kentucky
             Lexii.3-ton, Kentucky

   7My dear Professor Punkhouser:

        I am sending you a memorandum relative to the Ieew
   Gymnasium Building erected by the joint efforts of the
   Alumni, the University and the Athletic CGcrncil.

        The original contract amounting to $90,000 covers
   the cost of the foundation and is to be paid for by
   the Alumni.   On the remaining cost the University agreed
   to pay $40,000 of which $20,000 is to be returned by the
   Alumni Association .  On this $40,000 the University has
   now advanced in cash $37,938.08.

        The remaining amount, approximately, $30,000, the
   University found it necessary to assist the contractor
   by endorsing notes to the amount of $20,000.    Of this
   amount the University has endorsed $20,000 leaving the
   contractor to carry the balance in notes.

        Of the $30,000 Eo provided the Athletic Council is
   to pay the whole amount from the earnings of the building-
   The amount endorsed by the University is payable in six
   month notes with the understanding $10,000 is to be carried