<pre style="white-space: pre-wrap">xt75dv1ck45t https://exploreuk.uky.edu/dips/xt75dv1ck45t/data/mets.xml Lexington, Kentucky University of Kentucky 19321329 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, 1932-13-nov29-ec. text Minutes of the University of Kentucky Board of Trustees, 1932-13-nov29-ec. 1932 2011 true xt75dv1ck45t section xt75dv1ck45t 


    Minutes of Meeting of the Executive Committee of the Universi-
ty of Kentucky, November 29, 1932.


     The Executive Committee of the Board of Trustees of the Uni-
versity of Kentucky met in President MAcVeyTs office at the Univer-
sity of Kentucky, November 29, 1932, at 10:30 a, m.   The members
of the Committee present were Judge R. C. Stoll, James Park, E. B.
Webb, and Joe B. Andrews.   President Frank L. McVey and Secretary
D. H. Peak were also present,

     1, Minutes Approved,

     The minutes of the meeting of the Executive Committee of Octo-
ber 27 1932, were approved.

     2, Financial Report.

     The financial report for October was received and ordered to
be recorded in the Minutes,   It reads as follows:


             Statement of Income and Expenditures
                    Month of October 1932


                            Previously
                            Reported

General Fund Income
  Federal Appropriation     42,750.00
  Vocational Ed. Board       2,746.07
  Bureau of Min. & Top, Sur-
  vey - Misc, Receipts       373.05
  Bureau of Min. & Top, Sur-
  vey - State Appro,       1,515.00
  State Tax                 50,623.31
  Int0 on Endowment Bonds    4,322.25
  Student Fees              86,010.08
  Student Fees - Sum. Sch,  14,259,79
  Student Fees - U,}E.S,     3,574.00
  Student Fees - El.Tr,Sch.  3,190.00
  Student Fees - Un. Ext,    3,496.'28
  Misc. Receipts             6,372.83
  Rentals                      625,70
  Int0 on Liberty Loan Bonds
  Men's Dormitories          5,73945
            Total          225_597.61_


Current
Month


Fis cal
Wear
to Date


          42, 750.00
3,825.09   6,571.16


  132, 40


52, 740. 94

49 534 49
    89. 00
    202. 50
    835.00
 5,610.17
 2,822.11
   178, 00
   850,00
   222,19
72$J041 89


    605,45

  1,515.00
103,364.25
  4,322. 25
  90)544957
  14,348. 79
  3,776i50
  4, 025.00
  9,106945
  9,194,94
    803 70
    850, 00
  52961,64
297,639.70


2.


Expenditures
  Instruction                164,738.08
  Adm. Expense & Maint.       61,441j08
  Additions and Betterments    1,215,03
               Total        227,394419


68,449.23   233,187.31
16 624.26    78 065.34
   630.80 -   1,845.83
85, 704.29  3131098.48


Excess of Expenditures over
  Income                    (1 796,38)


Patterson Hall Income
  Board                       10,14-2.25
  Room Rent - Summer Sch.      1
               Total         11,403.75

Expenditures
  Expense                      4,007,42
  Additions and Betterments    1,816.50
               Total          5,823 92


Excess of Income over
  Expenditures


5, 579.83


General Fund Income          237,001.56
General Fund Expenditures   233,218.11


(13,662,40)  ( 15s,458.78)


  416,15    10,558.40
              _1,261 50
  416.15    11 * 819o 90


2 859, 21    6, 866. 63
              1 _ _816,8   50
 2 , 859. 21    8,683 13

 (2 ! 44306)   3x136.77

 72,458.G4     309,459.60
88,563.50     321!781.61


Excess of General Fund Ex
    penditures over Income
 Accounts Payable liaui-
    dated
 Excess of Receipts over H
    penditures for General
    Ledger Accounts
 Excess of Receipts over v
    penditures for the fisc
    year to date - General
    Fund
 Excess of Receipts over F
    penditures for the fisc
    year to date - General
    Fund
  Cash in Bank July 1, 1932
    General Fund
  Cash in Bank October 31,
    - General Fund

Experiment Station Income
  Hatch - Federal Appro.
  Milk and Butter - Cash
    Receipts
  Dairy Cattle Sales
  Sheep Sales
  Swine Sales
  Poultry Sales


3,783.45    (16,105.46)


(1 520. 07)


(27115. 52)


   3,021.84 -   79 494.97
i x-
Cal

   5, 28522     61,273.99


(12,322.01)

( 3 635. 59)


82. 516 81


66, 5594.21


66 559. 21

(12,274.36)

54,284.85


3,750,00

2, 307. 10
   88.95
   176,86

   374.22


3,750 00

  763.63
  59a 65

  93.41
  336. 29


7, 500, 00

3, 070. 73
  148* 60
  176.86
  93.41
  710, 51


3.


Farm Produce Sales          193,67
Horticultural Sales         147.57
Seed Test                     9 00
Sedd Inspection          4,075.36
Rentals                     431. 01
Miscellaneous                44,30
Fertilizer-Fees          1,615.00
Public Service - State
Appropriation            3,291.83
Feeding Stuffs - Fees    6,742.10
Adams - Fed, Appro,       3,750 00
Serum - Sales               429,75
Serum - Virus Sales          21,60
Serum - Supply Sales         11,80
Serum - Miscellaneous Rec,  60,00
State Appropriation       6,862,74
Creamery - License Fees  4,323,50
Creamery - Testers Lic.  1,116,00
Creamery - Glassware
  Tested                    105.20
Robinson - State Appro,  1,043,56
Robinson - Misc. Rec,    2,301.00
West Ky. - State Appro. 1,253.66
West Ky, - Misc. Rec,    1,953.03
Purnell - Federal Appro.15,000.00
Nursery Inspection -
  Fees                      480,00
Poultry Improvement         300, 00
Blood Test                  291,00
Dark  Fired Tobacco Grow-
  erls Assn.              4,566,19
Stemming District Tobac-
  co Growers Assn.        33102,16
                Total    70,218,16


Expenditures
  Expense
  Additions and Better.
                 Total


   85,84
   76,70
   41.50
1,099.00
  144.67
  399.36
  613.75


2,631,90
3,750.00
  159.90
    6.75
    24,90


    49.50
    50.00

    26,78

    499,46

    232.66
15, 000 G00

   360,00
   (300,00)
   120,25

(4, 566.19)

(3.102.16)
22,407,55


76,825,04     13,715.24
   200,00        617.96
77,025,04     14,333,20_


  279.51
  224.27
  50.50
5,174.36
  575.68
  443.66
2,228,75

3, 291# 83
9,374,00
7,500,00
  589.65
  28,35
  36, 70
  60.00
62 862.74
4,373,00
1,166.00

  131.98
1 043 56
2,800.46
1,253e 66
2,185,69
30,000.00

   840.00

   411.25


92.625,71


90, 540 28
   817, 96
91,358.24


Excess of Income over
  Expenditures


(6,806,88)


Excess of Receipts over
  Expenditures for Gen-
  eral Ledger accounts 2,208,75


Excess of Receipts over
  Expenditures
Excess of Receipts over
  Expenditures for the
  fiscal year to date -
  Experiment Station
Cash in Bank July 1, 1932 -
  Experiment Station


598.13)


12. 433.01


7.834. 88


7,834.88

(5.383.43)


8,074.35


4. 358.66


1,267.47


6,567.41


_ =


i:    -  - -. --


4.


Cash in Bank October 31,
1932 - Experiment Sta-
tion                                            2,451.45


Extension Division Income
   Federal Smith-Lever
   Federal Add. Co-op.
   Federal Supplementary
   Federal Capper-Ketcham
   State Smith-Lever
   State Capper-Ketcham
   County and Other
         Total

Expenditures
  Expense

  Excess of income over
    Expenditures


74, 154. 38
15,500.00
26,54 5.52
18, 400 49
22,1523,21
   302, 83
   675. 46


      74,154. 38
      15, 500. 00
      26,545.52
      18,400.49
      22,523. 21
         302 83
119.06   794.52


158 ,101.89      119.06158!220.95


89,375.14    31 293,03 120,668.17


68,726.75   (31.17_3.D97) 37,552.78


Excess of Income over
Expenditures for the
  fiscal year to date -
  Extension Division
Cash in Bank July 1, 1932
- Extension Division
Cash in Bank October 31,
1932 - Extension Div,


372 552.78

7.737.68


45%290e46


Trust Fund Income
   Student Loan Fund
   Student Notes Paid
             Total Receipts

Expenditures
   Expense
   Student Notes
              Total
   Excess of Expenditures
     over Receipts


197.02
483.40


16,83
65.57


213.85
548'97


680.42       82.40      762.82


121 2169     41 00      162 69
635.75      205.00      840. 75
757.~ 44    246,00  1, 003.44

(77.02)  -(163.60)    .140O62)
                    C206)


Excess of Expenditures over
Receipts for the fiscal year
  to date - Trust Fund
Cash in Bank July 1, 1932 -
Trust Fund
Cash in Bank October 31, 1932 -
  Trust Fund


(240.62)

.308. 58


1,067.96


5.


Summary
  General Fund Income
  Experiment Station Inc.
  Extension Div. Income
  Trust Fund Income
                 Total


237, 001.56
70,218.16
158,103.89
    197.02
465 %l,6


General Fund Expendituies 233,218.11
Experiment Station Exp.    77,025.04
Extension Division Exp.    89,375.14
Trust Fund Expenditures       121.69
               Total      399.739.98


Excess of Income over Ex-
penditures                65,778.65
Accounts Payable liqui      (
dated                     (1,520.07
Excess of Receipts over
Expenditures for General
Ledger Accounts            5 230.59
Student Loan Fund - Notes     152.35
Excess of Receipts over Ex-
penditures for the fiscal
year to date - Combined
Fund                     69. 336.82
Excess of Receipts over Ex-
penditures for the Fiscal
Year to date - Combined Fund
Cash in Bank and on hand July
1, 1932 - Combined Fund
Cash in Bank and on hand Octo-
ber 31, 1932 - Combined Fund


72,458.04
22,407.55
   119. 96
     16 83
95, 001r4

88,563.50
14,333.20
31,293.03
     41 00
134. 230.73


(39,229.25)

(2,115,52)


83 853.e6.3
  )   139. 43)


42. 369, _43


309,459.60
92,625.71
158,220.95
    213.85
560,520.11

321,781. 61
91,358.24
120,668.17
    162.69
533,970. 71


26,549P40

(39635.59)


89 084,22
   t291:78)


111,706.25


111,706.25

(6, 611.53)

105, 094. 72


Abstract of item shown on statement
of Income and Expenditures as "Excess
of Receipts over Expenditures for
General Ledger accounts $87,387.51"


                    Debit

Accounts Receivable
Ins, Paid in Advance 106.82
Sundry accounts
Notes Payable
Surplus             4, 413.00
                    4,519,82


Credit


17,371.35

14,535,98
60 000.00

91,907,33
4, 519,82
87,387,51


6.


     The following distribution of State tax transfers was filed
by the Business Agent and ordered to be recorded in the Minutes:

              Distribution of State Tax Transfers
                           1930-1931


Inheritance Tax

56, 509,62
38,14-6,65
45,613, 97
80, 653,96
27, 848.45
28P502,32
38, 685 27
77,899;,76
31,206.,72
15, 587e,85
65,765.09
28 190 57

534,610.23


Mill Tax

  8, 215.81
  1,686.31
230,Y236. 05
24,2909e83
43,548.55
35,451.70
223,911,09
  9, 569,93
  8, 725, 77
10,434.19
  2,458,31
  4,333,62


602,871,16


1931-1932


35, 449.44
46,067. 78
23,657.62
15,909,14
10,820, 03
100,495.00
11,455960
  6,637,26
  2,217,01
  60, 522,25
  11,935 45
-1 89a. 40


  5, 365,42
  9, 210, 82
193,894,414
21, 107.89
26,834.09
57,476,34
204,)25.11
  7,7530,43
  12,815.50
  11,699,15
  2,768,63
  4. 489. 17


337, 064, 98


557,439.69


1932-1933


199,02-3,24
15,648.16
l11717,77
55,616,99


3 ,949e 53
12,002. 38
41, 023 17
23.662.,08


Total       102,006.16


80,63?716


July 1930


June 1931

Total


July 1931


Tot a1


July 1932
AuLgust
Sept embex
October


7.


     3. Bureau of Mineral and Topographic Survey Statements Am-
proved.

     The Business Agent presented a. statement of salaries for the
month of November of Employees in the Bureau of Mineral and Topo-
graphic Survey,

     Which statement is in words and figures as follows:

     David Young   -L month                   $ 8500
     Louise Barton, 45 holrs @ .50               22.50
                                               $ 107.50

     The statement was approved by the Executive Committee and or-
dered to be submitted to the Auditor of-Public Accounts for payment,

     4. Trust Funds,

     It is the opinion of the Executive Committee that the collec-
tions named in the statement that follows are trust funds and do
not come within the meaning and scope of the clause in the appro-
priation bills passed by last session of State Legislature requir-
ing transfer of funds to State Treasurer.    The terms under which
trust funds are given and accepted will not permit of such tTans-
fer.

     Statement presented by the Business Agent:

     1, Interest on Peabody investment in Liberty Bonds.
     2, Interest on bank deposits a- considered a trust fund with
which to pay interest on loans,
     3. Collections on sales of Extension Division circulars, a
very small amount -- considered as trust fund because the circulars
have been paid for with federal funds.

     5. Note Due First National Bank and Trust Company.

     President McVey and the Business Agent were directed to renew
the note due the First National Bank and Trust Company, November
29, 1932, for a period of ninety days and they were further direct-
ed to pay the note at any time before maturity when funds from
State tax transfers become available.    This was done in order to
save interest.

     6, Authorized to Borrow Money.

     On motion duly seconded the following order was passed:

     The President and Business Agent are authorized to borrow
during the fiscal year 1932-1933 for the purpose of paying sala-
ries, bills approved and due and current operating expenses, a
sum not to exceed $100,000.00,


8.


      The amount borrowed may be in whole or in part of said amount
 as needs may arise, provided the amount borrowed may never be in
 excess of the contemplated income for the remainder of the fiscal
 year.

      7. Check f rom the Waddy Estate.

      The Business Agent gesented a check to the University of Ken-
 tucky from the Master Commissioner of the Fayette Circu'it Court,
 made in the distribution of the Robert B. Waddy Estate,  Master
 Commissioner, Colbert, steated that the check represents about one-
 fourth of the amount that will eventually be available in the set-
 tlement of said estate on account of a bequest in the will of Rob-
 ert B. Waddy made to the University of Kentucky to create a schol-
 arship to be known as the Anne Elizabeth Waddy Alpha Xi Delta Soror-
 ity Scholarship,

      The Business Agent was directed to deposit the check and all
 future payments made on said beouest to the account of the Uni-
 versity Treasurer in the First National Bank and Trust Company,
 and to hold the deposit subjects to further orders of the Executive
 Committee, or Board of Trustees.

      8. Lot South of Service Building.

      The Business Agent was directed to examine the deed to this
 lot and report to the Executive Committee,

      9, Sale of Stat6 Warrants,

      The following report of the Business Agent of sale of State
 Warrants was approved and ordered inserted in the Minutes:


             State Warrants Sold Since Last Meeting
       By J. J, B. Hilliard and Sons, Louisville, !Kentucky

Date         No        Face           Sale Price   Int. Total    Dept.
9/30/32   F3244  $3,513.84 @ 89 less l 3,118.54  25.85 3,144.39 Exp.P
                                                                 Sta.
                                                                 FIM 50
9/30/32   P3242   1, 580,,49@ 89  "      1,402.69  11.63 1,414.32 Rob.
9/30/32   P3243   1,208.66 @ 89       1,072.80    8.89 1,081,69 W.Ky.
10/25/32  F3976   1,218.88 @ 894 "  I l,087,85    4.74 1,092.59 Rob,:
10/25/32  F3977     853,54 @ 89-       *761.79    3.31    765.10 ',11.Ky.
10/31/32  F4208   4,000.00 @ 89-"     3,570.00   12.22 3,582,22 Exten,
10/31/32  F4209   4,00.0 @ 89- "    " 3,570,00   12.22 3,582.22 Exten.
10/31/32  F4210   4,007,75 e 89) "  " 3,566,90   15.03 3,581.93 Exten,
9/3,9/32  F3199   1,833.33 @ 89" 1'631 66         15.28 1,646.94 Pub,
                                                                 Ser.
                 22,216,49           :19,782.23 109.1719,891.40


9.


9/30/32  F3200 11,467,75 @ 89
9/30/32  F3249 2,842,49 @ 89


10/31/32 F4206 3,679,57 @ 89


10/31/32 F4207 1,833,33 3 89


19, 823.14


By Security Trust Company


10,206.30 84,39 10,290,69 Exten,
2,529.81 20.91 2,550 ;72 Exp.
                          St a.

 3,274.82 11.24 3,286,06 Exp.
                           Sta,
                           50 M
 1,631,66   5.60 1,637926 Pub.
                           Ser.
17, 642.59 122.14 17,764.73


10. State WarTants OnT Hand.

The Business Agent reported following State Warrants on hand:


College

$776. 39
307 60
3612 .23
3919.57


Experiment Station

$1023.99
  1474.22


    11 Filing Contracts and Purchase Orders with State Auditor.

    The Business Agent reported that he had received a copy of an
opinion by the Attorney General that relates to the request by the
Auditor of Public Accounts to file in his office for approval con-
tracts and purchase orders.

     The opinion is as follows:

                                        October 20, 1932

    Mr. N. A. Chrisman, Chairman
    State Purchasing Commission
    Frankfort, Kentucky

    Dear Sir:

          We have yours of the r5toh enclosing a copy of a letter
     of notification sent out by Honorable J. Dan Talbott, Audi-
     tor of Public Accounts, which seems to involve a construction
     of a number of sections of th Ale statute. You ask for such con-
     struct ion.


Section 1992a-23, Kentucky Statutes, 1930 Edition, provides:


10.


"All contracts, except as herein provided, entered into by
any department, board, commission, institution, office or
agency of the Commonwealth of Kentucky for the expenditure
of funds appropriated from the state treasury, shall contain
a provision that the contract shall be deemed an obligation
of the Commonwealth to pay the sums submitted therein, until
the contract has been submitted to the Auditor of public ac-
counts, so that the auditor of public accounts can determine
from his budget ledger whether the budget fund out of which
the sums are to be expended under the contract are within the
budget fund out of which they are payable.    If the auditor
of public accounts, from an examination of his budget ledger,
finds that the sum to be expended under the contract is with-
in the budget fund out of which it is payable, he shall then
enter the date of the contract, the name of the contractor,
and the amount to be expended under the contract on his
ledger.   The amount of said contract to be a charge against
the budget fund out of which same is to be paid; and the
auditor shall thereupon attach his certificate to said con-
tract showing that same has been entered and charged on his
ledger against the budget fund from which the sum to be ex-
pended under the contract is payable.

"All contracts, except as Herein Provided, based on an esti-
mated cost, and containing a provision that the unit fixed
in the contract shall control the cost of the work to be
done under the contract, shall contain this provision: Pro-
vided, however, this contract shall not be construed to be
an obligation of the Cormnmonwealth to expend any sum in excess
of the estimated cost stated in the contract; and such con-
tracts shall contain this further provision: The contractor
grants to the first party the option and right, in the event
there is an overrun and the estimated cost is consumed by
computing costs on the basis of the unit cost, to require the
contractor to enter into a new contract with the first party
for the completion of all work remaining unfinished after
the estimated cost has been consumed, at the same unit cost,
and under the same terms and conditions contained in the orig-
inal contract.   If the first party elects to exercise its
option under this provision, it shall give the contractor
written notice of iats election, and the contractor thereupon
shall be bound and required to enter into a new contract for
the completion of the work under the terms and conditions con-
tained in the original contract.

"Contracts entered into under the provisions of this para-
graph shall be submitted to the auditor of public accounts
and shall be charged to the budget fund from which the con-
tract price is payable and s.ll be executed under the pro-
visions of this section.


11l


  "No contract, except as hereinafter provided, shall be deemed
  a valid obligation of the Commonwealth until the certificate
  of the auditor of public accounts has been attached thereto
  as required by the provisions of this section,   The auditor
  of public accounts shall carry a daily balance of budget funds
  on his budget ledger in pencil, so that the budget ledger shall
  at all times show the balance in each separate budget fund."

       It will be noticed that this section of the statute re-
quires all contracts, except as herein provided, that is in the
act of 1926, chapter 170, entered into by any department, board,
commission, institution, office or agency of the Commonwealth of
Kentucky for the expenditure of funds appropriated from the State
Treasury shall contain a provision that the contract shall not
be deemed an obligation of the Commonwealth to pay the sum stip-
ulated until the contract has been submitted to the Auditor of
Public Accounts.   The purpose of submitting the contract to the
Auditor is to have the auditor determine from his budget ledger
whether such sums mentioned in the contract are within the budget
fund out of which they are payable.   If the Auditor finds that
such sum or sums to be expended under the contract are within the
budget fund out of which payable, it is then his duty to enter
the date of the contract, the name of the contractor, and the
amount to be expended under the contract on his ledger.   It then
requires that he shall enter a certification upon the contract
showing these facts.

     The last paragraph of this section provides that no contract
shall be deemed a valid obligation of the Commonwealth until the
certificate of the Auditor of Public Accounts has been attached
thereto as required by the provisions of the section.   From this
we take it that a contract to be binding upon the Commonwealth
must first have this certificate, and of course, the contract
would necessarily have to be submitted to the Auditor in order to
obtain this certificate.

     The act of 1926, chapter 170, section 33-2., which is section
1992a-33a, Kentucky statutes, 1930 edition, excludes the Universi-
ty of Kentucky, and the State Normal Schools and Teachers Colleges
from the provisions of sections 1992a-21, 1992a-23, 1992a-24,
1992a-27 and 1992a-31 of Kentucky Statutes, 1930 edition; and in
our opinion such sections do not apply to the University cf Ken-
tucky and the State Normal Schools and Teachers Colleges.

     At the same session of the legislature of 1926, was enacted
a law establishing a central purchasing agency for the Commonwealti.
of Kentucky which is known as the State Purchasing Commission.
This Commission was created by the appointment of a Chairman by
the Governor, the Commissioner of Public Institutions, and one of
the members of the State Highway Commission.


12.


     Section 3990-4, Kentucky Statutes (which is section 4 of the
Sets of 1926) provides that the Commission shall contract for,
purchase and acquire all furnishing, furniture and supplies of ev-
ery kind or description for the use of the State or its officers
or any department thereof, or for the support of the several state
institutions, including all penal, charitable and education insti-
tutions, except as provided in section 3990-16 of the act, and
supplies including supplies for printing, stationery, fuel, tools,
implements, machinery, material for the construction of roads,
buildings, and for other purposes, food, clothing, medical supplies
and books, other than books selected by the State Textbook Com-
mission, or for the use of the libraries of the State.

     Section 3990-16, Kentucky Statutes, 1930 edition, contains
the exceptions provided for and referred to in section 3990-4,

     Section 3990-15, Kentucky Statutes, 1930 edition, refers to
the letting of contracts for materials, equipment and supplies
and the manner of advertising for same; and provides, among other
things, that no contract shall be entered into by the Commission
for and on behalf of the department, board or commission of the
State unless an appropriation is available to pay for the cost
thereof except for food products for the penal and charitable in-
stitutions in cases of emergency; all prospective and purposed
contracts for materials, supplies or eouipment in excess of
$300.00 shall be approved by the State Auditor with reference to
the availability of funds for which to pay for costs of the same,
This section is contained in the Acts of 1928, chapter 161, and is
an affendment to the Act of 1926.

     Therefore, it seems to us that the law is at present that
when contracts for materials, supplies or equipment for any of the
departments are for 4300.00 or less, they do not necessarily have
to be approved by the Auditor as is Teouired under the sections
pertaining to the Budget Com:n.-;ission. The budget act was passed
in 1926, but amended in 1928 and is a later law upon the subject
and seems to treat the saume subject.  The two provisions, that is
the one contained in the Budget Act, which apparently requires all
contracts to be submitted to the Auditor, and the one contained. in
section 3990-15, Acts of 1928, are inconsistent, and the later act
would prevail.

     It then follows that purchases or contracts made by your
Commission for materials, sup-plis or equipment for the various de-
partment in sums of $300.0O or less are not recuired to be submit-
ted to the Auditor,

                       (Signed) Overton S. Hogan,
                                 Assistant Attorney General


13.


     The Business Agent was authorized to send the following no-
tice to the Auditor of Public Accounts;


                                     December 5, 1932


     Hon. J. Dan TalbotD
     Auditor of Public Accounts
     Frankfort, Kentucky

     Dear aT, Talbott:

     Please refer to your letters of July 12th and September
     23rd in which you say that stb.temnent of purchases must
     be presented to and approved by the Auditor before bills
     thereon can be paid out of appropriations and cash funds.
     I prenizme that the authority fox such request is taken
     from Section 1992-a-23, Kentucky Statutes, 1930 edition,
     I have before me an opinion from the Attorney Generalts
     office given to the Chairman of the State Purchasing Com-
     mission October 20, 1932.    One section of that opinion
     is in words and figures as follows:.

          "The act of 1926, chapter 170, section 33-i, which
        is section 1922a-33a, Kentucky statutes, 1930 edi-
        tion, excludes the University of Kentucky, and the
        State Normal Schools and Teachers Colleges from
        the provisions of sections 1992a-21, 1992a-23,
        1992a-24, 1992a-37 and 1992a-31 of Kentucky Statutes,
        1930 edition; and in our opinion such sections do not
        apply to the University of Kentucky and the State
        Normal Schools and Teachers Colleges."  

     From this it seeins that the University of Kentucky is not
     bound by Section 1992a-23, Kentuckcy Statutes 1930.

     However, Mr. Pepples and mnyself have worked out a very
     satisfactory plan relative to report of purchases and I
     shall be glad to continue the reports of purchases Trade
     provided it helps you in Beeping your budget records.

     I appreciate very Grouch thble very kind consideration that
     you and your office force have given mne.

                             Very truly yours,


                                               D. H. Peak
                                               Business Agent


14.


     12. Walter K. Patterson Bequest.

     A letter from C. N. Manning, President of the Security Trust
Company, was presented in which he suggests a plan of settlement
of the indebtedness of the University to the estate of Walter K.
Patterson and the transfer to the University of the bequest to
the Student Loan Fund.  it was directed that a conference be had
with the Student Loan Fund Committee and arrangements be made to
carry out the provisions of the Patterson will.

     13. Caupus Book Store Report.

     The President presented the following reports of the Campus
Book Store:

           Report for 1932 to Book Store Committee

                Made by J. E. Morris, Manager

     Again we are facing the two factors at work now for almost
two years in the book store, i. e.,

     (1) Amount of sales with its corresponding commission to the
University.

     (2) Elimination of unsalable stock from the store's inventory.

     By estimating the sales for the remainder of November and
the month of December we produce the following table of sales.

           1931                                 1932

           $ 86,000                              t 64,000

     We account for this sharp reduction in the following ways:

     1  Lower enrollment
     2 Reduced prices on student supplies
     3 Poor buying power of students now here.

     The next table I offer shows the manner in which your com-
mission has been applied for the first eighteen months of my man-
agement.

     Your commission January 1931 to July 1932 ....... $11,632*98
     Cost of eliminating unsalable stock.........         ,     .51 .
     For paying interest and cash reserve ........    $  5,381.94

     It is regrettable that we have still more unsalable stock to
be cleared,   That you may see this problem more clearly I have a
few items to discuss with you.


15,


     (1) Reports from two departurents.

     (2) The discontinued hygiene text.

     (3) What shall we do with goods too poor to sell and too good
to throw away.

     With these problems aired again I feel I should m.ake the fol-
lowing statement,   From these discussions of our bad stock, please
do not lose sight of the fact that the great majority of our inven-
tory is perfectly sound and salable;   That this problem of liqui-
dation is not a continuous one but will in the near future be
solved and we can go ahead with a sound inventory.

     My part of this contract has not been easy to live up to,
especially in the last few months.

     (a.) Our sales have dropped sharply.

     (2) Freight rates have advanced.

     (3) The articles we sold at sacrifice prices to clean out of
inventory did not carry our normal profit.

     (4) We still lack the full cooperation of some departments.

     We have tried to meet these conditions by

     (1) Cutting one member from our force.

     (2) Cutting salaries of those remaining.

     (3) Discontinuing advertising,

     Another saving will be possible if you will accept a lower
bond which we believe in view of lowered sales will now give you
the same protection as the present one gave you a year ago,

     Prices to students are still being lowered.

     (1) Through drop in wholesale prices which we have passed
on to the student.

     (2) Bargain prices made possible by losses you have agreed
to take on certain items in order to clear them from the shelves.

     This last reason also applies to requisition prices which
like the student supplies are all moving downward.    Such quanti-
ty items as mimeograph paper, mimreo-ranh ink, carbon paper, type-
writer ribbons and stencils have all been cut.


1 s.


     In conclusion, I want to put aside any modesty I ever had.
and tell you that I am proud of the record of the past two yearsi
Before my management the store for three years was in its present
quarters doing a big business at list price with no depression.
Under your present contract during those three years you would
have accumulated some $20,000 commission instead of a debit repre-
senting several thousand lost in bad inventory6   Within the past
two years we have absorbed more than six thousand dollars of this
loss, have set up a cash balance on reserve of. more than five
thousand and will before this year is finished have another three
thousand for additional clean up work or to join the cash reserve.


     Campus Book Store Report to Senate, November, 1932

             Made by X., H. Peak, Business Agent
     In the report of the Campus Book Store to the Senate made
last year the following points were discussed:

     1. History of the store.

     2, Unsatisfactory results under old plan.

     3? The new plan and manage.ment, and prospect of better results,

     4. Finances and financial outlook.

     The status of finances, so far as the Universit</pre>