xt76ww76td08 https://exploreuk.uky.edu/dips/xt76ww76td08/data/mets.xml Lexington, Kentucky University of Kentucky 19350116 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, 1935-01-jan16-ec. text Minutes of the University of Kentucky Board of Trustees, 1935-01-jan16-ec. 1935 2011 true xt76ww76td08 section xt76ww76td08 





     Minutes of the Meeting of the Executive Committee of the
Board of Trustees of the University of Kentucky, January 16,
1935.


     The Executive Committee of the Board of Trustees of the Uni-
ve-csity of Kentucky met in President MloVey's office at the Uni-
versity January 16, 1935, at 10130 a.m.   The members of the
Committee present were Judge R. C. Stoll, chairman; Miller Hol-
land and J. 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
October 23, 1934, were approved as published.


     2. Financial Repor.

     The financial report for 5ecember was filed and ordered to
be recorded in the Minutes,   It reads as follows:


                                             EXHIBIT "Bit


                  Statement of Income and Expenditures
                          Month of December 1934



                         Previously
                         Reported

General Fund Income
  Federal Appropriation 14,250.00
  Int. on Endowment Bonds 2,162.50
  Int. on Liberty Loan
     Bonds                  850.00
  Vocational Ed. Bd.      7,892.97
  State Appro,-Back Sal-
     paries              71,100,00
  State Appro, - Repairs
     to Bidgs,              276,42
  State Appro,-Sum.Sch,   9,000,00
  Special Agr. Appro.    12,371,72
  State Appro.-General  258,152,68
  Student Fees          100,015,25
  Student Fees - Sum.Sch,40,105.99
  Student Fees - U.H.S,   4,370,00
  Student Fees - ElTr.
       School             3,489,00
  Student Fees - Un.Ext,  9,497.52
  Misc. Receipts          2,996,67
  Rentals                 1,339.60
  Men's Dormitories       8,082.85
          Total         545,953.17



Current
Month



Fiscal
Year
To Date



7,125,00   21,375.00
            2,162.50

              850*00
2,170.81   10,063.78

           71,100.00



   175.00


74,183.90
1,628.61
    20.00
    120.00


 1,893 17
 2,600.99
   236,00
   282.00
90.435.48



    451,42
  9,00000
  12,371,72
332,336,58
101,643.86
40,125* 99
  4,490,00

  3,489,00
  11,390.69
  5,597,66
  1,575,60

636,388.65




 







2.



Expenditures
  Instruction
  Aidm. Exp. and Maint.
  Additions and Better.
         Total
  Excess of Income over
    Expenditures

Patterson Hall Income
  Boa-rd
  Misc. ReceiDts
  Room Rent - Sum.Sch.
          Total



288,900.84
116,686.07
  5.26.i33



70,997.43
20,615.30
1.852.71



359,898,27
137,301.37
  7,119.04



410,853.24    93,465.44   504,318.68

135,099.93     (3,029.96)  132,069.97


21,602.01        476.88    22,078,89
     65.00         71.25       136.25
  1,326.00                   1,326.00
  22,993.01        548.13    23,541.14



Expenditures
  Expense
  Additions and Better.
          Total
  Excess of Income over
  Exoenditures

General Fund Income
General Fund Expend.
  Excess of General Fund
  Income over Ex-oendi-
  tur es



7,731.63
   25.50
7,757.13



15,235.88



568,946.18
418,610.37


150,335.81



Accounts Payable - lioui-
dated                  (71,100.00)
Excess of Expenditures
over Receipts for
General Ledger accounts(35,506.63)
Excess of Receints over
Expend. for the fiscal
year to date - Gener1.
Fund                    43,729.18
Excess of Recei-ts over
Exp-ond. for the fiscal
year to date - General
Fund
Cash in Bank July 1, 1934
- General Fund
Cash in Bank December 31,
1934 - General Fund



6,096.53



13,828.16
    25.50



6,096.53    13,853.66

(5,548.40)    9,687.48

90,983.61   659,929.79
99,561.97   518,172.34


(8,578.36) 141,757.45

            (71,100.00)


(6,692.16)  (42,198.79)



(15,270.52)



28,458.66



28,458.66

(4.289.95)



24,168.71




 







Exneriment Station Income
  Hatch - Federal Appro.
  Milk and Butter - Cash Rec.
  Beef Cattle Sales
  Dairy Cattle Sales
  Sheep Sales
  Swine Sales
  Poultry Sales
  Farm Produce Sales
  Horticultural Sales
  Seed Test
  Seed Inspection
  Rentals
  Miscellaneous
  Fertilizer - Fees
  Public Service - State Ap.
  Public Service - Misc,Rec.
  Feeding Stuffs - Fees
  Adams - Federal Apopro,
  Serum - Sales
  Serum - Virus Sales
  Serum - Supply Sales
  Serum - Misc. Rec.
  State Appro.
  Creamery - License Fees
  Creamery - Testers' Lic.
  Creamery - Glassware Test.
  Robinson - State A-pro,
  Robinson - Misc. Rec,
  West Ky. - State Appro,
  West Ky. - Misc. Reck
  Purnell - Fed. Apnro.
  Nursery Inspection - State
     Aporo.
  Nursery Inspection - Fees
  Blood Test
            Total



7,500.00
,001.72
   239.89
   357.75
   61.11
   230.67
   564.75
   315.41
   263, 35
   876.90
 3,266.05
 2,722,35
   889.11
 7,290.01
 6,804t80
     5,00
12t196.25
7,500.00
   320.24
   31.00
   48,80
     8,75
24,590,70
6,238.55
1,928.02
   327.75
 4,567.51
 1,751.91
 6,314.88
 3,646.79
 30, 000e00

    600,00
  1,147,42
     20.75
136.628.19



           7,500.00
 813,72   4,815,44
 65.00     304,89
 15.31     373,06
 130.00     191,11
 23.00     253.67
 130,48     695,23
 311,44     626.85
 46.00     309,35
 95,42     972,32
 33.49   3,299,54
   94.67   2,817,02
   24,50     913,61
(1,527.76) 5,762,25
3,393,61  10,198,41
    5.00      10,00
2,285,06  14,481,31
           7,500.00
   55.93     376.17
   4*65      35.65
   11,75      60,55
   18.50      27,25
   403.25  24,993.95
   10.50   6,249.05
   58.00   1,986.02
   61.70     389.45
1,242.61   5,810,12
  204,21   1,956,12
  684.54   6,999.42
  198.37   3,845.16
          30,000.00

  150.00     750,00
  130.00   1,277,42
               20.75
9.172.95 145,801.14



Expenditures
  Expense                   111,528,07
  Additions and Better.       4,973.70
          T tal             116,501,77
  Excess of Income over Ex-
    penditures               20,126.42
  Excess of Expenditures over
  Receipts for General
  Ledger accounts          (20,502,54)
  Excess of Expenditures over
  Receipts                     (376.12)
  Excess of Expenditures over
  Receipts for the fiscal
  year to date - Experiment
  Station
  Cash in Bank July 1, 1934 -
  Ex eriment station
  Cash in Bank December 31, 1934 -
    Experiment Station



24,109,87
   196.49
24,306.36



135,637,94
  5,170.19
140.808.13



(15,133.41) 4,993.01


7,508,16 (12,994,38)

(7,625.25) (8,001.37)



(8,001.37)

13,586.85



5,585.48




 









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

Expenditures
  Expense

  Excess of Income over
    Expenditures



74,154a38
15, 500 00
26,545.52
18,400.49
61,830.60
_ 1,589.35



1,069,34
  340.39



74,154,38
15,500,00
26,545,52
18,400,49
62,899,94
1.929.74



198,020.34      1,409.73    199,430.07


159,404.71    33,472.37    192,877.08


38,615.63    (52,062.64)    6,552.99
         _... _.              _.   . 6 4 ). _ 5



Excess of Income over Hx-
  elenditures for the fiscal
  year to date - Extension
  Division
Cash in Bank July 1, 1934 -
  Extension Division
Cash in Bank December 31, 1934 -
  Extension Division



Trust Fund Income
  Student Loan Fund
  Student Notes Paid
         Total Receipts



  568,45
1,426.65
1,995.10



6,552.99

(585.04)



5,967.95



232.28
417.83
650.11



  800,73
1,844.48
2,645.21



Expenditures
  Expense                  4,162.22
  Student Notes               1.5.00
        Total ExDenditures 4,177.22

  Excess of Exoenditures over
      Receints            (2,182.12)

  Excess of Expenditures over
    ReceiDts for the fiscal
    year to date - Trust Fund
  Cash in Bank July 1, 1934 -
    Trust Fund
  Cash in Bank Decemfber 31, 19341
    - Trust Fund



4,162,22
   15.00
4,177.22



650.11     (1,532.01)



(1,532,01)

3,823,72



2,291,71



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



568, 946.18
136,628.19
198,020.34
    568.45
90415.,16



90,983.61
  9,172.95
  1,409 73
    232.28
101,798.57



  659,929,79
  145, 801, 14
  199,430,07
      800.73
1.005.961.73



4i.




 






5.



General Fund Expenditures
Expoeriment Sta. Expend.
Extension Div. Expend,
Trust Fund Expend.
         Total



Excess of Income over Ex-oend-
   itures



4_-8,610.37
116,501,77
159,404,71
  4,162.22
698,679.07



205,484.09



99, 561, 97
24,306.36
33, 472,37



157.340.70



(55,542.13)



518,172,34
140,808,13
192,877 08
  4,162.22
856X019.77



149,941.96



Accounts Payable - liqui-
   dated

Excess of Extend. over Rec.
   for General Ledger ac-
   counts



(71,100.00)


(56,009.17)



        (71,100.00)


816,00  (55,193.17)



Student Loan Fund - Notes



1,411 .65



Excess of Receipts over Ela-
penditures for the fiscal
year to date - Combined Fund 79,796i57



Excess of Receipts over EXAM
penditures for the fiscal
year to date - Combined Fund
Cash in Bank and on hand July
1, 1934   Combined Fund
Cash in Bank and on hand December
31, 1934 - Combined Fund





               Abstract of item shown on State-
               ment of Income and Expenditures
               as "Excess of Expenditures over
               Receipts for General Ledger ac-
               counts $55,193.17"

                             Debit



Accounts Receivable

Insurance Paid in ad-
    vance

Sundry accounts



417.83   1,829&48



(54, 308,30) 25,478,27



25,478,27

14,535e58

40,013.85



Credit



49,906.53


1,016.53

4,:270.11



55,193.17




 








6.



     3. Estimate of Income and Expenditures.

     An estimate of income and expenditures for the year ending
June 30, 1935, compiled by L. H. McCain, accountant, was present-
ed.  The estimate shows that the University must receive the to-
tal of State appropriations and must keep expenditures within the
unexpended balances of departmental budgets, In order that the
budget may be balanced for the fiscal year.


     4. Allotments - State Board of Finance.

     The Business Agent presented the statements of condition of
University accounts as of December 31, 1934, made by State Budget
Officer, Nat B. Sewell.   He also presented statement by Sam S.
English, Executive Secretary of State Board of Finance of Allot-
ments to the University of Kentucky for the period from January
1, 1935, to March 31, 1935.

     Statement of IM. English is copied as follows:

     At a meeting of the Board of Finance and Budgetary Control
     held.January 8th, 1935, the Board made allotments for the
     first three months of the last half of the ensuing fiscal
     year.   Your allotment was for the amount of the follow-
     ing:

                                   Allotment        Balance from
                                                    last semester

     College Division            $ 164,500.00          1,435.18
     College of Agriculture          6,250.00            378.28
     Experiment Sta,,Lexington      12,500.00              6.05
     Experiment Sta.,Quicksand       3,000.00          1,826.65
     Experiment Sta.,Princeton       3,500.00            233,61
     Experiment Station,Analysis     5,000.00            199,19
     Nursery Inspection                250.00            422.58
     Agricultural Extension         27,000.00            100,06

     We wish to call to your attention the fact that the allot-
     ments were made for a three months period of time, with the
     view of keeping all departments within their budget.   We
     must impress on the heads of the departments that it is im-
     perative that they should curtail all expenses possible;
     as it is absolutely essential that all live within their
     budget appropriations.

     If your department shows a balance to your credit, as of
     December 31st, 1934, that amount is automatically added to
     the three months allotment."




 







7.



     The total of allotments and balances for the period ending
March 31, 1935, is shovwn by the following table:

            Allotments to the University of Kentucky
                           3.934-1935



Appropriation



Allotment for
First Six
Months



Allotment D
March 31st



College Division



679,000.00



339,500.00



164,500.00



College of Agri-
culture



Summer School

Repairs

Experiment Station



Experiment Station
    Analysis



Princeton Sub-Sta-
    tion

Quicksand Sub-Sta-
    tion



25,500.00

9,000.00

9,000,00



50, 000 00



22,000.00



15,000.00


15,000.00



Agricultural Extension
    Division        126,000.00



Nursery Inspection



2,500.00



Unpaid Salaries



  71,100.00
1,024,100.10



71,100.00
556,600.00



222,000.00



     5. Gross Receipts Tax.

     The Business Agent made the
law as app)lied to the University:



following report on sales tax



     Under  a recent decision of the Court of A'neals 4f
Kentucky, it seemas that the University is req'uired to col-
lect sales tax in certain instances.   The University has
the following sources of income in addition to direct state
and federal appropriations  



Fund



12,750,00



6,250.00



9,000,00

9,000.00



25,000.00



11,000.00



7,500.00


7,500.00



63,000.00



1,250.00



12,500.00



5,000.00



3,500.00


3,000.00



27,000.00

   250.00




 







S.



College:
          Student fees
          Rents
          Interest on bonds, etc.
          Iiscellaneous income
          Miscellaneous sales
          Meat sales
          Cafeteria sales
          Room rent Men's Dormitories
          Room rent and board Girlsi Halls

Experiment Station !
          Sales - milk, etca
          Sales - live stock
          Sales - farm produce
          Sales - serum, virus, etc.
          Fres under state laws
          Test and inspection charges under state laws
          Rents
          Miscellaneous income
          Miscellaneous sales

     I consulted Attorney General Wootton, and he said he
had given an opinion that the schools were not required
to collect the tax, hovover, that, under the decision re-
ferred to above, in certain instances the ta;x should be
passed to the consumer and collected b,,- the schools.  He
mentioned specifically the cafeterias.    He also mentioned
admission to athletic events, etc.    He said that he will
five a Rwritten opinion on request.

     The following is quoted from Chapter twxenty-five, Acts
of 1934, Section 2.  "The term, 'Sales at retail , is here-
by defined for the purposes of this act as sales of tangi-
ble personal property not intended for resale.    The term,
showever, does not include casual sales by a person not
regularly engaged in makings sales; seles by farmers of com-
modities which they or their tenants or employees have pro-
duced on their farms,.

Section 5, Every charitable and educational institution
in the State of Kentucky and institutions thereof wehen
engaced in activities .iade taxable by this act shall be
completely exempt from its -o)rovisions."

     In determining liability under and putting into appli-
cation the law, I call attention to the following:

     1, Shall the Attorney LGeneral be asked for an opinion?

     2, Is payment of tax retroactive; th;at is, shall we
pay tax on collections l-a-ce Drevious to the decision?




 







9.



         3. The facts so far as known have been passed on to
    Mr. Soles of the Athletic Council and to Mr. Fowler of
    the Guignol Theatre.

         4. The cafeterias are now charging the sales tax. It
    is necessary, however, to make application to the Tax Com-
    mission and to make report thereon.   Shall one or more ap-
    plications be made? Shall the Business Office make reports?

         5. It seems that no other college collecti ns are
    subject to the tax, unless it be sales of meats; that is,
    sales of meats of animals butchered for class instruction.

         6. I am of the opinion that room rent in Men's Dormi-
    tories and room and board collections in Girls' Halls are
    not subject to the tax.   In support of this, I quote the
    following: "The term, 'places of amusement and ror enter-
    tainment , is hereby defined for purposes of this act as
    including hotels and restaurants (as defined in Carrollts
    Kentucky Statutes, 1930 Edition, Section 2059), theatres,
    dance halls, ball parks, and other athletic exhibits or con-
    tests, etc."

          Carroll's Statutes referred to above says, Section 2059:
     "Hotels and Restaurants Defined - Every building or structure
     kept, used as, maintained or advertised as, or held out to
     the public to be a place where sleeping accommodations are
     furnished to the public whether with or without meals, shall
     for the purpose of this act be deemed a hotel.

         "Every building or structure, and all buildings in con-
    nection, kept,used or maintained as, or advertised as, or
    held out to the public to be a place there meals and lunches
    are served without sleeping accommodations, shall for the
    purposes of this act be deemed as a restaurant and the per-
    son and persons in charge thereof, whether as owner, lessee,
    manager or agent, for the purpose of this act shall be
    deemed the proprietor of such restaurant and whenever the
    vord 'restaurane shall occur in this act it shall be con-
    strued to mean such structure as herein described."

          7. It seems that no Experiment Station collections are
     subject unless it be sales of serum, virus, etc., this being
     bought and resold,   I have submitted the question to Dean
     Cooper.


     After considering the above report, it weas the opinion of the
members of the Committee that the liability of the University for
collection and report of sales tax applies only (if at all) to
Cafeteria sales and admittance fees to gamies, entertainments, etc.
The Business Agent was authorized to make further inquiries in
regard thereto and to set uD collection of tax according to the
ruling of the State Tax ComlVission.




 








10.



    6. Investments.

    The Business Agent made the following report:

         I have not been able to invest in state warrants the
    prodeeds of sale of Liberty Bonds, the Brent fund on hand
    and Student Loan fund on hand for the reason that since
    the December meeting of the Board of Trustees, I have
    received no state warrants from Frankfort and it now
    seems likely that state warrants will not be issued for
    January payments.   I know o no other satisfactory in-
    vestment for these funds.   If the Committee desires that
    other investment be made, I shall appreciate directions
    and information in regard thereto,

         Liberty bonds have not been sold.   I consulted isrn'.
     Courtney of the First National Bank and Trust Company and
     he advised leaving the bonds until the warrants could be
     secured.  He says that the bonds will sell at any time
     at a premium and that perhaps the amount of premium will
     increase rather than diminish.   However, as the time for
     turning the bonds in is approaching, should the sale be
     made and funds held for investment?


     He was authorized to Lake further investigation of suitable
investments and the question of sale of Liberty Bonds.   If it is
found desirable to act either on investment of funds.or sale of
Liberty Bonds, he is directed to confer with President McVey and
the Chairman of the Executive Committee, R. C. Stoll.


     7. Burglary, Hold-up Insurance, and Bonds of Employees in the
Business Office.

     On motion and second the Business Agent was authorized to take
out additional burglary and hold-up insurance to the extent of prob-
able loss.   He was further authorized to have employees in his
office bonded, the blanket form of bond being suggested.


     8. Change of Rate of Interest on Time Deposits in Banks.

     A letter from the First National Bank and Trust Company show-
Ing change of interest rate from 3 to 21 per cent, effective Jan-
uary 1, 1935, on time and savings deposits, was presented.   Under
the present national bank lawns, no interest can be paid on daily
balances, and the University has not received interest thereon
since June 16, 1933.




 








11.



    9. Accounting in State Offices under New Fiscal Laws.

    The following statement made by the Business Agent was order-
ed inserted in the Minutes:

         Under the new fiscal laws, for each of the University
    appropriations and revolving funds, credit is given on the
    records of the Auditor's office.   All orders for purchas-
    es, requisitions for salaries and wages and contracts are
    charged to the proper accounts in that office.   It is,
    therefore, necessary that all such orders, etc., be sub-
    mitted to the Auditor before June 30th of the fiscal
    year and that the estimated expenditures do not exceed
    the amount of appropriations.   Bills for such orders,
    etc., may be paid on or before September 30th following
    the end of the fiscal year.   Any balance in the appropri-
    ations or funds, if not expended by that date, will re-
    vert to the State but no new orders may be submitted after
    June 30th.

          This means that any bills made ana charged before
     June 30th of the fiscal year,, not on orders, etc., sub-
     mitted to the Auditor before that date, will not be paid.
     It also means that unless our estimated cost is accurate,
     there will be a balance or overdraft in each of the ap-
     propriations.   That there will be a small difference
     one way or the other is unavoidable for it is almost im-
     possible to accurately estimate the cost but I think the
     difference will be negligible if we exercise a fair de-
     gree of care in making the estimates.


     10. Payment of Bills Dated before June 30 of Fiscal Year.
State Journal 3ills.

     The Business Agent stated that under the newrs fiscal laws no
purchase made or bill dated prior to June 30 of any fiscal year
may be paid from funds or appropriations of the ensuing fiscal
year, except on contracts properly approved by state officials.
All funds not expended before the end of the fiscal year revert to
the general fund of the State.   Therefore, it is necessary that
all orders be made and entered on the books of the State Auditor,
together vith the actual or estimated cost thereof, before June
30.   The books are not closed for payment of bills on such orders
until September 30, following.

     In this connection he mede report on State Journal bills as
follows:




 







12.



         In October the State Journal Company sent to the Uni-
    versity bills for nrintinp;: orders made before June 30, 1934;
    College, $903.15; ExDcriment Station, $740.50.   The Business
    Office did not receive these bills until October and each
    of the bills is stamped by the State.Printing Commission as
    of date after June 30, 1934.   There seas no possibility of
    paying them out of last year's funds. With these facts
    in mind, I submitted to the State Auditor, requisition for
    the amount due from College funds, charging it to College
    Revolving funds and requisition for the amount due from
    Experiment Station funds, charging it to Experiment Station
    Revolving funds.   Each of these requisitions was approved
    by the Auditor,   In due time, vouchers were made up as
    required by the Auditor and submitted to his office for
    payment.   Payment Was refused because bills were dated
    prior to June 30, 1934.   I stated on the requisitions
    and vouchers the facts ih regard to date of bills, time
    of receipt by this office and approval by the Printing
    Commission.

          I then consulted air. Sam English, Executive Secreta-
    ry of the Board of Finance, and he said the question had
    been discussed in a Board meeting and the prevailing
    opinion was that the bills can not be paid and, in all
    probability, they will have to be submitted to the next
    session of the Legislature for action.   It seems that the
    State Journal Company has such unpaid bills, due by other
    state departments and institutions,

          I can not see that it is any fault of the University
     that these bills have not been paid but it may be that
     some action should be taken by the University in regard
     thereto.

          There may be other such bills of the State Journal
     Company that have not yet been -resented to the Universi-
     ty.


     No action was taken, there apparently being nothing to do,
but to await further action, if any, by the State Finance Board.


     11. Fire Insurance.

     Report by Business Agant:

          I submit the correspondence of Klair and Scott which
     was presented at the December meeting of the Board of
     Trustees in regard to fire and tornado insurance. In
     connection with this, I submit letter received today from
     Messrs, Klair and Scott, written at my suggestion.




 






13.



        All fire insurance policies will have to be renewed
   by M4darch 14th. I think it is desirable to write the
   insurance for three years and, if possible, fix the date
   of expiration on July 1st.  Perhapssthe whole question
   can be left as it is for further investigation and report
   at the next meeting of the Committee.


   Klair and Scott's suggestion:

        With reference to the fire insurance on the Universi-
   ty schedule which expires March 14th, vie again wish to
   call to the attention of the Executive Committee the large
   amount of saving in writing this for a three year term.
   As stated by you, it Neil]. be more preferable if the in-
   surance could be arranged to be dated July 1st, so we
   wish to offer the following plan.   To write the insurance
   from Mlarch 14th, for a period of one year and then on July
   1st, 1935, to cancel,pro rate and write one-third for a
   term of one year, one-third. for a term of two years, and.
   one-third for a term of three years, and then after the
   first period, all to be written for terms of three years.
   This plan will distribute the insurance cost approximately
   even after the first year, and wve believe you will be
   greatly pleased with this plan should you deem it advisable
   to put it in force.

        While we are on the subject of insurance, we again
    must call to your attention the fact that approximately
    all insurance companies interested in the windstorm insur-
    ance on the University properties, are very much discon-
    certed over the very low insurance to value carried and it
    is extremely hard to get the companies to remain on the
    various risks as they feel any windstorm insurance on less
    than valuation of 50% is unprofitable and they would pre-
    fer not to have it,   We trust that when your Executive
    Committee will upon investigation and study of this situa-
    tion to be able to authorize fire insurance written as
    above outlined and also they will view the windstorm in-
    surance situation in a manner more satisfactory to the
    insurance companies.

         Bhould there be any further information regarding
    your insurance which you may desire, we will be pleased
    if you will call upon us.

                                Yours truly,

                                        Klair & Scott
                                 (Signed)  Per Thos. S. Scott.


       The 3usiness Acent was authorized to make further investi-
gation and to report to the February meeting of this Committee.




 







14.



    12. Tornado Insurance.

    Report of Business Agent:

         .I call your attention again to the question of tor-
   nado insurance which is mentioned in letter from Klair and
   Scott.   I do not believe it best to pay a large amount
   of premium on tornado insurance or any other insurance out
   of this year's funds.   However, it may be advisable to
   restore insurance on the Administration building to the
   original amount before the recent loss and also to insure
   such buildings, including the gymnasium, as have no torna-
   do insurance, in some amount, and that should be done with-
   out delay.

     The Business Agent was directed to place tornado insurance on
the gCymnasium building and on such other buildings not now insured
as the President and Business Agent may decide proper to insure,
and to have the insurance on Administration building restored to
amount it was before the reductions caused by the losses in year
1934.


     13* Service Building - Indebtedness.

     The Business Agent made the followiing statement regarding the
indebtedness on lease of Service Building:

           The lease on Service Building with the Central Dis-
     trict Warehousing Corporation calls for five more payments
     of $10,000 each; due respectively on the.fivst day of
     July for the next five years and the interest thereon at
     six per cent per annum from July 1, 1934.    In addition
     to this, the University pays city, state and county ta:es.
     and nremiur;k on insurance, the combined amount of the pay-
     raents at the beginning of this fiscal year being $2287.68.
     It has been suggested that this debt may be refinanced at
     an interest rate of four and one-half per cent.    Such
     refinancing may make a saving in interest, taxes and ix-
     surance premiums of probably 82,000,00,

     The Business Agent was authorized to iaake further investiga-
tions, and to get the opinion of the Attorney General as to the
manner in which such refinancing may be done.


     14. Out-of-State Travel.

     Report of Business Agent:

          At the December uoeotinr of the Board of Trllstees, I re-
      norted the fact that the State Board of Finance had held
      up all requests for out-of-state travel exi)ense.    I con-
      sulted her. San English, Executive Secretary of the State
      Board of Finance, since that date, and he informed me that




 






15.



he expects some opinion from the Attorney Generalts office
at an  early date.   He sais that Assistant Attorney Gen-
eral Hogan had the matter in hand at the time Mr. Hogan
died and that it had been transferred to Assistant Attorney
General Brown. He said that the Board of Finance will
probably rely on the opinion of the Attorney General and
the question may not be taken into the courts.


Memorandum by President McVey:

      MEMORANDUM RELATING TO OUT-OF-STATE TRAVEL IN CON-
      NECTION WITH THE UNIVERSITY OF KENTUCKY.

                                              December 15,1934

     There are three phases of out-of-state travel that I
call attention to in this memorandum.   The first of these
relates to attendance upon various national associations
in which the University of Kentucky holds membership. These
associations are in many instances standardizeng agencies
in which membership is a distinct recognition of a univer-
sity's standing.   The meetings held by these associations
take place at different times of the year, and are attend-
ed by representatives of institutions that hold membership
in them.

NATIONAL ASSOCIATIONS:

     I am giving under this heading a list of different
national organizations in which the University as an insti-
tution has membership:

     American Association of Colleges of Business and
               Commerce
     American Council on Education
     Association of American Colleges
     Aseociation of American Law Schools
     Association of Land Grant Colleges and Universities
     Association of Teachers Colleges
     National Association of Business Agents and Executives,
     National Association of Registrars

     The second group of organizations are largely learned
societies devoted to the development of specific fields of
science, literature and art,   These associations deal with
problems of teaching in their fields, material that is now
very important, and the general drifts, educational and
scientific, that are essential to the intellectual welfare
of the membership,   The policy of the University in regard
to these associations has been to give a moderate aid to
those attending who appear on the programs of the associa-
tions.   The yniversity, therefo