xt70k649pg65 https://exploreuk.uky.edu/dips/xt70k649pg65/data/mets.xml Lexington, Kentucky University of Kentucky 19470311 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, 1947-03-mar11. text Minutes of the University of Kentucky Board of Trustees, 1947-03-mar11. 1947 2011 true xt70k649pg65 section xt70k649pg65 

     MinUtes of Called Meeting of the Board of Trustees, University
of Kentucky, March 11, 1947.

     Pursuant to adjournment of the Board of Trustees at its meet-
ing on ;ebruary 25, 1947, the Board of Trustees met, upon call, in
the President's Office at 10:15 a.m., Tuesday, March 11, 1947? The
following members were present: Governor S. S. Willis, Judge
Richard 04 Stoll, Mrs. Paul GX Blazer, J. C. Everett, Thomas Cutler,
Robert C. Tway, Grover Creech, Judge Edward-C. OtRear, J. N. Smith,
H. D. Palmore, Harper Gatton, John Fred Williams and R. P. Hobson*
President H. L. Donovan and Comptroller Frank D. Peterson, Secreta-
t'y of the Board, were also present.

     A. Approval of Minutes.

     Upon motion duly made, seconded and carried, the minutes of
the Board of Trustees of February 25, 1947, were approved as pub-

     B. Broadcasting Policy.

     President Donovan had previously distributed to members of the
Board copies of a report of a Committee on Broadcasting Policy.
He explained the necessity of adopting rules and regulations con-
cerning broadcasts made from the University campus, and recommended
adoption of the rules suggested by the Committee.    The report of
the Committee is copied in full below.



           The Committee has assumed it was assigned the task of
     reviewing the policies pertaining to the broadcasting of
     athletic events.   It has studied the rules now in effect
     at the University of Kentucky and has tried to evaluate
     them in the light of the procedures of several universities
     and of comments made by several radio stations in Kentucky.
     The Committee is indebted to liessrs. Sulzer and Shively
     for gathering this information

          By and large the radio stations endorsed the present
     rules,   They seemed to like many of them and to accept
     most of them.   They support unanimously and strongly the
     policy of non-exo1usivity,    The Committee concurs whole-
     heartedly on this point.    The stations accept the present
     financial rates but they claim they are as large as the
     traffic will bears   Some of them suggested that radio sta-
     tions are entitled to the same status enjoyed by the press.



     The most striking thing about the reports received
from the universities was their lack of agreement. There
is no such thing as an average or typical set of policies.
In this confusion the Committee is of the opinion that
no university has a more logical or complete set of rules
than does our own.   However, it would be unfair to state
that our rules free the administrators of them from all
problemss.  Troublesome situations arise from two sources.,
Visiting radio stations are disappointed sometimes be-
cause our rules are not like those of their home uni-
versitiese   Our stations complain because they do not
find rules like our own when they go to other schools.
This condition proves nothing except the unfortunate
divergence of policies followed by different universi-
ties.   The situation is especially bad in the South-
eastern Conference.   The Committee believes that the
University of Kentucky should encourage attempts of
responsible groups; e.g., the Southeastern Conference,
to bring about standardization.

     The Combinittee endorses the basic principles under-
lying out existing rules.   If they need revising or ex-
tending at all it is due to the following circumstances:

     (a) the increasing number of radio stations
     b  to clarify the position of the University of
         (1) to ameliorate the sources of grief
             referred to above
         (2) to simplify the negotiating hf contracts
             with other teams
     (c) changing financial conditions.

     (a) and (b) call for some comment.   (a) almost requires
that universities decide whether to increase their radio fa-
cilities considerably or to find workable selection rules for
assigning a limited number of positions to a larger number
of stations.   The Committee inclines to the latter and be-
lieves that the stations can be persuaded to help by coop-
erating in the use of outlets,   (b) may become important
as it is conceivable that teams may want to make reciprocat-
ing of their broadcast rules a condition of a contract.

     To the above ends the following revised rules are proposed:

     1I No radio station, network, or other broadcasting
agency is to make a line broadcast, or a telegraphic or oth-
er report for broadcasting purposes, or a transcription for
broadcasting purposes from the campus of the University of
Kentucky, until the authorized representative of such agen-
cy is issued a permit for such a broadcast or report or
transcription by the University of Kentucky radio director.
Application forms for such permission may be obtained from
that office.



     2, In cases where the contemplated broadcast involves
another university department, the radio director will
clear the matter with that department before issuing the

     3, The University of Kentucky divisions are requested
to refuse facilities and cooperation unless the proper
permit is shown;

     4. No charge will be made for permits for programs
to be broadcast on a purely sustaining basis.

     5, No permits will be issued for sponsored radio
programs from the campus or other locale where the Uni-
versity has radio rights with the exception of athletic
events for which the following charges are made:

Station Power in Watts    Football Game    Basketball Game

      100-250               $ 25              $ 10
         1000                 50                20
         5000                75                 25
         50000                200'               50

     In the case of a high school basketball tournament,
the charge per day or for any part of a day shall be the
same as the charge for a single college basketball game.
For example, a 100 watt station broadcasting one or more
games during the day would pay $10.   The above charges
apply to Individual stations.   In the case of regional or
state networks or other cooperating groups of stations,
the charges listed above will he made for each station in
the network or groups   Information for national broadcasts
will be furnished on request made to the radio director,
There will be no agency commission or cash discount allowed.

     Unless (7), below, applies, payment for broadcasts
shall be made at the University of Kentucky ComptrollerTs
Office in advance, where such funds shall be credited to
the account of the University of Kentucky Athletic Associa-
tion.  Receipt for such funds must be filed with the radio
director before the permit can be issued,   The issuance
of a permit for sponsored program will constitute evidence
that the required fee has been paid.

     6. The University of Kentucky through its radio di-
rector retains the full and absolute right to approve or
disapprove all applications and all phases of presentation
on sponsored and sustaining programs originating on its
premises.   This rule- applies also when the broadcast
represents the activity of a non-university group and it
is made subject tothe same rules that apply to other campus



      7. 'then a non-university group is allowed the use
 of University property for athletic events it may be
 allowed the income from broadcasting on approval of the
 President of the University and the Board of Trusteest
 The rates shall be those listed above.   All such groups
 shall clear in writing with the radio director their
 plans for broadcasting.   A letter of approval of the
 plans from the radio director shall constitute a permit
 for the stations cleared to broadcast.

     8. The University of Kentucky guarantees visiting
teams from outside of Kentucky one outlet for use of
stations in the immediate vicinity of such teams, The
visiting school may designate the local station or local
group of stations to use this outlet. If it does not
choose to make the designation the radio director will
make the assignment on a first come, first served basis.
However, rules (5) and (6) apply in any event.

     9. The University of Kentucky will assume no obliga-
tion to procure broadcasting privileges for games played
away from home by its teams. Sponsors and stations are
hereby advised that they must make their own arrangements.
The University of Kentucky has no jurisdiction over stations
making such broadcasts and receives no income from them.

    10. When the number of Kentucky stations applying
for permits exceeds the number of positions reserved for
such stations at Stoll Field or other home playing quar-
ters, the radio director may necessarily have to ask
some of the stations to accept the broadcast of another
station.   All Kentucky stations will be considered on
their merits and the goal will be the most effective radio
coverage of Kentucky.

     As may be noted easily, the foregoing rules are of the
same spirit as are the ones now in effect.    The Committee
believes that spirit to be good.    These new rules merely
define the position of the University more precisely. It
Is believed that they are in keeping with the best trends
in academic circles.   In two of the current trends most
universities who have organized and published their rules,
have been slightly more explicit than is the case here*
It is not uncommon for the time and timing of commercial
announcements to be specified in the rules,    This matter
is provided for here generally in rule (6).    A university
lays itself open to severe criticism if it is too lenient
in this matter.   The other trend which we follow, that of
having the charges based on the stations! ability to pay,
is frequently set up in a slightly more flexible way than
Is done here.   Usually it is coupled directly to the
income of the station by basing the charge on the stations
Irate card"t*  Here the same result is accomplished by
using the power of the station as the basis,     There are
two differences.   The "rate card" method would automatically



     adjust the charge to meet changing financial conditions.
     Then, too, it has the merit of being the more conven-
     tional way.   The Committee has not gone so far in these
     instances because it believes that it is more important
     to try to hold and to fortify the significant gains made
     so far.

          It should be observed that these rules contemplate
     that the home university will have complete Jurisdiction
     over broadcasts originating from its own playing quarters
     In such cases a responsible university will be guardian
     of proper educational proprieties.   No such protection
     is provided when our teams play on neutral fields, e.g.,
     Armory in Louisville or Sugar Bowl in New Orleans* It
     is recommended that whenever possible in these cases a
     responsible university have supervision over broadcasts.

          The above rules have been written in terms of the
     present administration of broadcasting procedures. The
     Committee does point out, since the question has been
     raised before it, that the Athletic Department believes
     it should be given the management of broadcasts of athletic
     events.   The Committee does not believe that this type
     of question was referred to it and makes no recommenda-
     tion on it,   The Committee does suggest, however, that
     the Board of Directors of the Athletic Association through
     its officers, should designate which booths are to be
     reserved for broadcasting and which one for scouts, pho-
     tographers, etc.

          This official designating of broadcasting positions
     could be very important in the future when the number of
     applications may be large.   Broadcasting should be per-
     mitted only from carefully considered and approved posi-
     tions.   The danger of unfavorable publicity from unguard-
     ed locatiors is too large.  Herein lies an important dif-
     ference between the press and radio.    Probably sports-
     casters should be given the privileges as observers ac-
     corded sports writers.   But the foregoing special rules
     should apply when they want to set up a microphone on the

          It is recommended that these rules when adopted be
     sent to all probable opponents and to all radio stations
     In Kentucky.

     The recommendation was discussed, and upon motion made, second-
ed and carried, policy outlined in items numbered 1 to 10, Inclu-
sive, was approved,



     C1 Request of Neville Dunn for Damages to Property in Johnson
School Building fdnied.

    The Secretary read the following report on damages in the
"Johnson School Building" caused by burst water pipe.

                                    February 28, 1947

    Dr. H. L. Donovan, President
    University of Kentucky

    My dear President Donovan:

         With your approval, I leased a part of the building
    at 401 North Limestone Street, known as "the old Johnson
    School property" on December 1, 1945. The building was
    originally leased for storage of surplus war property
    which we were beginning to receive in great quantity,
    since the Service Building fire, on February 15, 1946,
    its use has been enlarged.

         The front rooms on the first floor of this property,
    the two side rooms directly to the rear of the front rooms
    and the northwest corner room of the first floor had
    previously been leased by the Thoroughbred Record. It
    was understood that the Thoroughbred Record would have
    access to the rear hallway and the stairway on the north
    side to the basement as passageway to the furnace necessa-
    ry for heating the space occupied by the Thoroughbred

         The University has access to two large rooms on the
    first floor, the entire second floor and the attic on
    the third floor.   It was further agreed that we might
    use part of the basement floor for such purposes as became

         Our warehousing at this location has been under the
    supervision of the University Storeroom Section,   Many
    items have been stored and later removed, requiring ser-
    vices of two or more persons at a time,

         The University did not have any heat in the building,
    and in late October, or early November, the pipe valves
    leading to the two toilets on the second floor were cut
    offs and the valve handles removed in an effort to prevent
    water from being turned on by any individual not equipped
    with a pipe wrench or similar tool.   The only tools re-
    quired and used by the University employees while working
    at the Johnson School Building are wrecking bars to open
    boxes and orates.   One riser valve is located in the
    basement near the boiler room,   The other valve is
    located in the basement near the stairway on the south side.


University employees and the employees of the Thorough-
bred Record were not to use toilet facilities on the
second floor, yet some people evidently did use these
facilities, as the facilities have been used without

     Some time during the first part of February, 1947,
the pipes leading to the toilet on the second floor on
the north side of the building evidently froze, and
during the night of February 12, 1947, a leak developed
from a burst pipe. On the morning of February 13th Mr.
Neville Dunn, owner and operator of the ThoroughbreA
Record called Mr. E. B. Farris, Chief Engineer of the
University and advised him that "the place was flooding"
and that considerable damage had been done. Mrj Farris
dispatched some one from the plumbing shop and two other
men to the building to assist ih eliminating the
trouble.  Mr. Jack Howard, Assistant Chief Engineer,
was later instructed to take a crew of men, if nedess.ry,
to assist in cleaning up the waters  Mr. Ed Gabbard,
of the Comptrollerts Office, also Went to examine the
damage &nd to assist!   The writer heard of the situation,
and at about lOOO a.m. on the morning of the 13th, went
to the said property and found a burst water faucet on
thewator basin in the toilet on the second floor. The
water had run from the toilet room to the hallway and
an upstairs room, causing water to leak through the
ceiling of the first floor, damaging printed material,
a small quantity of paper and wetting a large printing
press in a room on the north side of the building.

     Mr. Neville Dunn, owner and operator of the Thorough-
bred Record and the lessee of a part of the building,
requested the University to pay damage caused by water
leaking onto machinery and materials.   I advised Mr.
Dunn that a written report would be made to you for
consideration and undoubtedly would be submitted to the
Board of Trustees%   I also told him that I did not know
whether the University or the Thoroughbred Record was at
fault,   It is true that employees of both the University
and the Thoroughbred Record did have access to the riser
valves.   The University, however, uses this building as
a warehouse only and I can see no incentive on our part
to have the toilets in operation.   Upon questioning the
University employees as to the location of the riser
valves, we were unable to find any one who knew the loca-
tion except the plumber who had turned the valves offs
Both parties agree that the valves were turned off,
It is further a known fact that the valve handle was
removed and was not on the valve at the time the water
was again turned off on February 13, 1947.

     The University did not accept any responsibility in
the heating of the building, and at the request of Mr.
Dunn, we had cut off all our radiates in the remaining



     part of the building to make them inoperative so that Mr.
     Dunn would not bear the cost of any heating in that por-
     tion of the building used by the University as a warehouse.
     However, it was found that some of the radiators were de-
     fective and could not be completely turned off,

           It appears to me that the University used due caution
     and I fail t6 understand wherein we were negligent in
     this case4

                                    sincerely yours,

                                    (Signed) Frank D. Peterson

     Mr. Peterson answered questions raised by members of the Board
and, after due consideration, a motion was made, seconded and car-
ried that the Board deny the request of Mr. Neville Dunn for damages.

     D. Consideration of War Memorial Auditorium-Field House Bids.

     Mr. Evans C. McGraw, Director of the Division of Construction
and Engineering of the State, and Mr. John T. Gillig, architect for
the War Memorial Auditoriurt-Field House, were invited to meet with
the Board.

     Governor Willis reviewed the action of the Board at its meeting
on February 25, 1947, relating to a recommendation of President Don-
ovan that contract be let to the lowest and best bidders for excava-
tion and foundation work, and fabrication and erection of structural
steel on the War Memorial Auditorium-Field House. He related that
a committee was appointed to estimate the cost of completing the
Auditorium-Field House and that President Donovan had been asked to
ascertain whether or not a responsible person or firm would buy the
bonds which might be issued for completing the building, and to
submit a program whereby any bonded indebtednews on the building
might be serviced.

     Governor Willis read the following letters:



               Commonwealth of Kentucky

                    March 6, 1947

President Hi L. Donovan, Chairman
Committee for Financing and Estimating
War Memorial Field House
University of Kentucky
Lexington, K entudky
                             Re: War Memorial Field House
                                 University of Kentucky
                                 Lexington, Kentucky

Dear Sir:

         It is the considered report of tis group that
$2,600,000.00 should complete said War Memorial Field

         This sum was arrived at on the basis of inde-
pendent estimates, based on best information of current
prices available.

                      (Signed) J. T. Gillig

                      (Signed) Evans C. McGraw

             * * * * * * * * * *

                                 March 5, 1947

Dr. Ho L. Donovan, President
University of Kentucky

My dear President Donovan:

     I have conferred with Mr. B. A. Shively, Director of
the Athletics Department, and Coach Adolph Rupp, relative
to formulating a plan to service a bond debt if, as and
when the debt may be placed on the War Memorial Auditorium
Fieldhouse. We submit three plans,

Il Rental of Facilities Plan
       It is proposed to charge a rental fee on the use of
  the coliseum for basketball games of one thousand dollars
  per day or night,   This expense would be deducted before
  arriving at the net income. In other words, half of the
  rental fee would come from the visiting team's part of
  the receipts and half from the home team. We also propose


to rent facilities to the Universityi
of activity proposed are listed below:

The various types

A, There will be twelve home basketball games
             at $1,000.00 ................... , 12,000iOO0
B. Henry Clay and LaFayette High School will
             play at least two games at the
             established rental .............. ,   2,000.00
C. The Kentucky state high school basketball
             tournament may be transferred to
             the University. If, so it would
             last three days and nights; the
             rental would be not less than ....   3,000.00
De Heretofore, we have had an East-West All-
             Star basketball game, and one all-
             star game picked from outstanding
             players in the state. These two
             games would produce ..............   2,000.00
E. We think it safe to figure on twelve outside
             events which would yield an addition-
             al *                ,., ,      .   12,000.00
F. The swimming pool, showers and locker rooms
             and physical alucation rooms would
             be used by the Physical Education
             Department. I think we could
             estimate conservatively fifteen
             hundred students who would take
             physical education and avail them-
             selves of the facilities in the
             building9   A charge of one dollar
             per month per student would yield
             not less than  ......,.......e..,. 18,000.00
G. The University of Kentucky Athletic Associa-
             tion would need office space for
             nine coaches, athletic directors
             ticket sales manager, bookkeepers
             and clerks and sports writers. We
             think the space allotted for these
             purposes would yield annually #,,. 12,000.00
H. The football team would have access to the
             building and would require the use
             of lockers for football, track,
             baseball, fencing, etc. They could
             well afford to pay a thousand dollars
             a month for these facilities, which
             would yield annually ,........      12,000.00
I. The auditorium would be used by the student
             body for convocations, commencement
             and other functions. A rental should
             be established which we believe would
             produce annually not less than.... 12,000.00
J. The concession rights, Including sale of pro-
             grams, soft drinks, sandwiches, etc.,
             might well be sold for undoubtedly
             not less than                        5,000.00
Total income to be derived annually from the
             Rental Plan                       JA i2Q00.00




II. Increased Student Fee
   A. The students attending the University at the
               present time are paying $3.70 per
               quarter for the privilege of attend-
               ing all athletic contests. On the
               basis of the current year, this is
               equivalent to 740 per football game
               and about 3lW per basketball game
               If a student saw all home games
               to which he was entitled. Baseball,
               track and tennis are added attrac-
               tions in other quarters. This fee
               could well afford to be raised. It
               is suggested however, that the
               general fee for students registering
               at the University be raised froM
               $37.50 to $42.50, the five dollar
               increase to be allocated by the
               Board of Trustees to service the
               indebtedness on the Fieldhouse4
               There are now in attendance at the
               University approximately 6,400 paying
               students who would have access to such
               a building and this number will increase,
               Five dollars per person per quarter
               would yield during the academic year
               approximately ........ ............$ 96,000,00
   B. The summer quarter would not yield the average,
                since the student enrollment would be
                reduced. We suggest that an estimate
                of three thousand students for the
                summer be used which would produce an
                additional ..........    .... ..       15 000.00

                     Total for the year from Increased
                     student fee ............., ...   111000.00

III. Rental and Fee Plan
       The following items are taken from Plans I
               and II.
   A. One thousand dollars be charged as rental on
      the gym for each home game by the University
      or any other agency. We estimate this would
      produce annually (19 games) , .     e.     ,  $19,000.00
   B. Sale of concessions, including programs, etc.,
                annually         .......      ..O999    5,000.00
   0, Increased student fee for the purpose of
                amortizing the indebtedness on the
                building, from $37.50 to $42.50 per
                quarter which, as shown by Plan II,
                would produce annually, on an average
                enrollment of 6400 .................  111,000.00



               Total which would be available
               on the combined basis ......$135,000.00

      If it is determined that the funds estimated necessa-
 ry to complete the Auditorium-Fieldhouse will approximate
 ~i600,O0O.OO, it will require approximately $85,000.0O
 annually to service the bond debt over a period of thirty
 yearst  Plan I or II will raise funds ample to service
 the indebtedness.   Plan III might well pay the bonds over
 a period of from twenty to twenty-five years.

     There is another source of income which should be
mentioned for consideration.   At this time there is a keen
feeling on the part of the basketball fans of the state that
tickets are too hard to get to contests, even in Louisville.
We have had several people suggest that they would be willing
to pay as much as $100.00 or $125.00 per seat for the priv-
ilege of buying specified seats during their natural life-
time,   A thousand such seats en the side might be sold in
this manner.   If so, the yield would be $100,000.00.

                             Respectfully submitted

                         (Signed) Frank D. Peterson

                 THE BANKERS BOND CO.
                   Louisville, Ky.

                                             March 5, 1947
Board of Trustees,
University of Kentucky,
Lexington, Kentucky.

                      RE: PROPOSED NEW FIELD HOUSE FOR THE
                                 UNIVERSITY OF KENTUCKY

     We have been asked to study and recommend the practioa.
bility of issuing Revenue bonds in the amount of $1,600,000
for the purpose of constructing the War Memorial Field House
and Auditorium which you now have under consideration.

     We understand that plans and specifications are now
ready and based upon the estimates of your architects and
engineers, under present conditions the total cost of the
project will approximate $2,600,000; that $1,000,900 of
University funds are now available for this purpose,

     It is our advice that the time 'at which the construction



contvact will be let is dependent upon a number of condi-
tions, but that it is estimated that the funds will be
needed shortly after January 1, 1948,

     We understand that this proposed structure will be
an all-purpose auditorium large enough to accommodate the
entire student body of the University and will include a
swimming pool for the use and benefit of the student body;
that adequate space for a full course of physical educa-
tion will be provided, including an indoor coliseum ade-
quate to seat approximately 12,000 spectators, as well as
space to provide offices for the various groups concerned,

     It is definitely feasible to finance to the extent
of $1,600,000 this project through the issuance of Revenue
bonds.   From our knowledge of the University and its
activities, we are certain that the necessary fees can be
legally collected so as to make this a self-liquidating

     As regards maturity dated, call pro.1sions and in-
terest rates, these of necessity must be considered and
fixed at a later date when it has definitely been determined
the time at which the bonds are to be offered for sales In
this regard, however, some general idea as to what we would
be likely to recommend may be of interest,

     From our examination of the project and sources of
revenue, it appears that the bond issue could be set up
with the schedule of fees to produce from $90,000 to
$135,000 annually.   We would suggest that in so far as
the fixed annual maturity of the bonds is concerned, that
same be set up so that something less than the above
minimum amount be required to service the debt Interest
and principal In each year.   ate would suggest that the
annual debt service requirement should not exceed $75,000
to $80,000 annually.

     These bonds should have a maximum maturity date of
something between 25 and 30 years; none of the bonds
should mature for at least 1 year after the project had
been completed and operated.   Your bonds should contain
a very favorable call provision, giving the University the
right to retire without penalty a substantial part of the
bond issues for the reason that should fees from various
sources be substantially more than anticipated and required
to meet current interest and principal payments, then your
Board of Trustees should be in position 'to use such surplus
funds to retire bonds ahead of their respective maturity

     As regards the interest rate, it appears that there
will be a veritable flood of municipal bond offerings
during the course of the next year or two, due in a large



     part to the fact that public construction involving the
     issuance of municipal bonds ended with the beginning of
     World War II, thus we have not only the normal demand for
     funds for public purposes, but an accumulation of over
     five years.   This is certain to affect interest costs to
     some degree, the extent of which nobody dan say with abso-
     lute certainty.   It is, however, our opinion that this
     project can, if gotten under way within the next twelve
     months, be financed at an interest cost of not to exceed
     2 1/2%.

          It may be beside the point, but as a Kentuckian
     familiar with the needs and desires of a great many