Add to the above outstanding old accounts of nearly Three Thousand

($3,000.) Dollars and the current liabilities in excess of the income up to July 1,

1911, amounts to over Ten Thousand, Seven Hundred and Fifty (.l0,750) Dollars, and

we have a full explanation of how the deficiency, which amounts to approximate8y

$66,000., was created. The above tabulation approximately outlines the items which

make the deficiency and are approximately correct.

          It will thus be seen that the foregoing indebtedness was made by the

Trustees in order to carry forward the work of the University. I believe it can be

truthfully said that under the circumstances the Trustees did what was for the best

interests of the State, although this large indebtedness was thereby created.  In the

meantime, our credit is good in the bank and we will have no trouble in renewing our

outstanding notes and in July we will receive nearly Fifty Thousand Dollars ($50,000)

from the several resources of the University.   It is not believed that the Univer-

sity will have any trouble in carrying this debt, or that the next Legislature will

hesitate to appropriate sufficient funds to pay it off.

          It seems to me that in the interest of economy the office of Monitress

should be abolished. This position has been filled long, faithfully and honorably by the

present incumbent, Mrs. Lucy Blackburn; but she is now more than seventy-five years

of age and for this reason alone she is not equal to the efficient discharge of the

duties of the office.   Besides, we now have a most competent Dean of Women and I see

no reason why her constant supervision is not sufficient to make the services of a

Monitress unnecessary.

          I feel deeply impressed with the duty of calling your attention to what,

in my opinion, is an unlawful diversion of the funds of the State in granting to President

Emeritus Patterson a pension of Three Thousand ($3000.) Dollars per annum. For the

original error in granting this pension, I am perhaps more largely responsible than

any other member of the Board of Trustees, and I desire to acknowledge that respon-

sibility to the full, but having looked into the question carefully, I think there is no